Reprinted from Caribbean Net News
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IMF commends Dominica’s economic programme
12-21-2006

ROSEAU, Dominica: In its seventh and last review of Dominica’s performance under the three-year Poverty Reduction and Growth Facility (PRGF) arrangement, the Executive Board of the International Monetary Fund has commended the government for the successful implementation of its economic programme.

Following the Executive Board’s discussion of Dominica, Murilo Portugal, Deputy Managing Director and Acting Chair said: “The Dominican authorities have continued to implement their economic programme successfully, and macroeconomic performance has strengthened further. Economic activity is expanding strongly in almost all sectors, with buoyant domestic demand and indications of a rebound in private sector confidence. Progress has also been made with structural reforms.”

Portugal also commended the Government for progress being made in some critical areas: “Key reforms in the economic programme are the recent amendments to the Electricity Supply Act and related legislation and the approval of measures to eliminate the unfunded liability of the Dominica Social Security (DSS) and to strengthen the AID Bank.”

The Executive Board also stressed the importance of further structural measures that will help bolster private sector–led growth. These include: amendments to the Finance Administration Act, approval of the Financial Services Unit Act and reform of the Dominica Export Import Agency (DEXIA).

The debt restructuring programme, an essential pillar of the ongoing programme which was first announced by the then Prime Minister, Pierre Charles on December 17, 2003 came in for much praise from the Executive Board.

“Significant progress has been made recently in debt restructuring, and the authorities are making good-faith efforts to reach collaborative restructuring agreements with their remaining creditors.”

The Acting Chair expressed the Executive Board’s endorsement of the Growth and Social Protection Strategy (GSPS). “The approach taken in the authorities’ Growth and Social Protection Strategy to reduce poverty and unemployment appears appropriate. Continued collaboration between donors and the authorities should facilitate timely donor support,” Portugal said.

As a result of the Executive Board’s completion of the review, Dominica can draw an amount of about US$1.8 million under the PRGF arrangement which will bring total disbursements to about US$11.6 million.

The Executive Board approved Dominica’s three-year PRGF arrangement on December 29, 2003.