Clean economic health bill for Dominica

Murilo Portugal

ROSEAU, Dominica, December 15, 2006 - Dominica has been given the green light to draw down the final disbursement of US$1.8 million (EC$4.86 million) under the three-year Poverty Reduction and Growth Facility (PRGF) from the International Monetary Fund (IMF).

The facility was approved December 29, 2006 with a view to reducing poverty and improving economic performance in the country and place it on a sustainable development growth path.

"The Dominican authorities have continued to implement their economic program 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," said Deputy Managing Director of the IMF, Murilo Portugal, after the Executive Board of the IMF reviewed the progress and approved the disbursement.

At the start of the programme Dominica set out how it intended to reduce poverty and set the country on a growth path. Along the way, the IMF checked to ensure the plan was being implemented and that it was successful before disbursing more funds.

"The strong fiscal performance in fiscal year 2005/06 and the stance of the 2006/07 budget reflect the authorities' commendable commitment to implement prudent fiscal policies. The primary surplus envisaged in the 2006/07 budget will allow further progress toward the medium-term sustainability of public finances and debt. Measures to streamline public sector employment and strengthen public financial management are being implemented. The authorities are committed to expanding revenue reforms. The Value-Added Tax (VAT) regime is operating well; and the authorities are committed to continued monitoring going forward to avoid its weakening," Portugal noted.

He further said that 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 PRGF is the IMF's concessional facility for low-income countries. PRGF-supported programs are based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners.