Annex I-Relations With The Fund (as of September 30,2009)
I. Membership Status: Joined: December 28, 1945 Article VIII
A. Financial Relations
II. General Resources Account:
|SDR Million||% Quota|
|Fund holdings of currency||507.84||232.00|
|Reserve Tranche Position||0.00||0.00|
|Lending to the Fund Holdings Exchange Rate|
III. SDR Department:
|Net cumulative allocation||208.83||100.00|
IV. Outstanding purchases and Loans:
|SDR Million||% Quota|
V. Latest Financial Arrangements:
|Date of||Expiration||Approved||Amount Drawn|
|Type||(SDR Million)||(SDR Million)|
|Stand-By||Jan 31, 2005||Jan 30, 2008||437.80||437.80|
|Stand-By||Aug 29, 2003||Jan 31, 2005||437.80||131.34|
|Stand-By||Jul 09, 1993||Mar 28, 1994||31.80||16.80|
VII. Safeguards Assessment. The BCRD was subject to a safeguards assessment with respect to the Stand-By Arrangement approved on January 31, 2005. The assessment, completed on April 27, 2005, noted that the BCRD implemented a number of earlier safeguards recommendations, but also identified vulnerabilities mainly in the areas of internal controls over the reporting of monetary data to the IMF, financial reporting and external audit.
VIII. Article IV Consultation. The last Article IV consultation was concluded by the Executive Board on January 30, 2008. The First Post-Program Monitoring Review was concluded on January 12, 2009.
IX. FSAP Participation. An FSAP update was completed in March 2009. A Financial System Stability Assessment report for the Dominican Republic was issued on May 20, 2002. The corresponding FSAP report was issued in November 2001.
X. Technical Assistance has been substantial since 2004.
XI. Resident Representative. The Fund representative office was closed in July 2008.
XII. Other. The Dominican Republic has not yet ratified the Fourth Amendment.
Annex II—Relations with the World Bank Group
1. The World Bank’s total loan commitments in the Dominican Republic amounts to US$326.2 million, of which US$234.0 million remains to be disbursed. The loan portfolio consists of ten loans: seven for investment (Water and Sanitation in Tourist Areas, Early Childhood Development, Health Sector Reform I and II, Youth Development, Social Protection -including an additional financing of US$10 million- and Energy Distribution); two for Technical Assistance (Financial Sector and Energy Sector); and an Emergency Recovery Loan. The Water and Sanitation in Tourist Areas loan, the Health Sector Reform II loan and the additional financing for Social Protection will be signed by the end of November, 2009 and their congressional ratification is expected to take place before the end of the year.
2. Two DPLs have been recently negotiated and their congressional ratification is also expected to take place before the end of 2009.These are: the Public Finance and Social Sector DPL and the First Performance and Accountability of Social Sectors DPL.
3. One investment project is under preparation: Municipal Development Project (US$20 million). The World Bank Group portfolio also includes additional commitments from the IFC and MIGA.
4. Portfolio performance in the Dominican Republic is starting to improve after the last FY09 setback. As of October 2009, the disbursement ratio is 14 percent, above of the regional (Latin-American and the Caribbean) and sub-regional (Caribbean) average of 7.8 and 9.7 percent respectively; commitments at risk are 7.7 percent and projects at risk are 10 percent. If the portfolio follows the trend observed in the first quarter of FY10 (July-August 2009), we could expect significant improvements in its performance by the end of the year.
5. A comprehensive set of analytical studies has been completed in recent years. In FY 2009, a Growth Study CEM (Country Economic Memorandum), an update of the Financial Sector Assessment Program, a new Country Partnership Strategy (FY09-FY13) and an update of the Report of the Observance of Standards and Codes (ROSC) in Accounting and Auditing. The Bank will be delivering in November 2009 a set of Policy Notes that have been feeding the National Development Strategy.
|Mission title||Start date||End date||Number of||Department|
|National accounts statistics||1/11/2004||1 /23 /20 04||1||STA|
|GDDS: metadata development||3/15/2004||3 /20 /20 04||1||STA|
|National accounts statistics||4/19/2004||4/30/2004||1||STA|
|Money andbanking statistics and GDDS development||6/30/2004||7/14/2004||1||STA|
|GDDS: metadata development for real sector||7/11/2004||7/16/2004||1||STA|
|GDDS: metadata development for government finance statistics||7/11/2004||7/16/2004||1||STA|
|Balance of payments statistics: peripatetic expert: 3 of 3||10/4/2004||12/3/2004||1||STA|
|Government finance statistics||4/26/2007||5/11/2007||1||STA|
|Tax reform-discussions with authorities||4/16/2004||4/17/2004||2||FAD|
|Tax Administration diagnostic mission with CARTAC||2/24/2005||3/9/2005||4||FAD|
|Public expenditure managementdiagnostic mission||8/14/2005||8/28/2005||4||FAD|
|Public expenditure management follow-up mission||7/25/2005||8/5/2005||4||FAD|
|Restructuring of fiscal institutions, treasury modernization, and budget||7/26/2006||8/8/2006||4||FAD|
|Tax reform-discussions with authorities||10/10/2006||10/13/2006||2||FAD|
|Monetary operations||3/1 /2004||3/12/2004||1||MFD|
|Deve lop bank resolution strategy||3/8/2004||3/19/2004||2||MFD|
|Bank restructuring||7/21 /2004||7/23/2004||2||MFD|
|AML/CFT controls for central bank operations||7/27/2004||8/2/2004||1||MFD|
|Bank restructuring||8/10/2004||8 /13 /20 04||2||MFD|
|Bank restructuring||3 /13 /20 05||3 /18 /20 05||4||MFD|
|Electronic forex trading platforms and regulations||5/16/2005||5/20/2005||2||MFD|
|Bank restructuring||1 /23/2006||2/2/2006||1||MFD|
|Monetary policy and operations||3 /18 /20 06||3/31 /2006||8||MFD|
|Ce ntra l b ank reca pitalizatio n||3/20/2006||3/27/2006||3||MFD|
|Debt management||3 /20 /20 06||3/27/2006||4||MFD|
|Asset re covery||6/26/2006||7/1/2006||1||MCM|
|Debt management and central bank recapitalization||1 1/6 /20 06||1 1 /15 /20 06||5||MCM|
|Bank ing law||3 /12/20 07||3 /13 /20 07||2||MCM/LEG|
|Asset recovery||3/1 5/2007||3 /23 /20 07||1||MCM|
|DO: Telecom Regulatory Reform /2||TELECOM||12.3||10.3||2.0|
|DO(APL1)Water&Sanitation inTourist Areas||WATER||27.5||0.0||27.5|
|DO-EARLY CHILDHOOD EDUCATION PROJECT||EDUCATON||42.0||26.7||15.3|
|DO-HIV/AIDS Prevention & Control Proj./3||HEALTH||25.0||20.4||4.6|
|DO-Health Reform Support (APL)||HEALTH||30.0||25.5||4.5|
|DO Financial Sector Technical Assistance||FINANCIAL||12.5||5.5||7.0|
|DO Power Sector Rogram Loan /4||ENERGY||150.0||100.0||50.0|
|DO Power Sector TA Project||ENERGY||7.3||5.8||1.5|
|DO Eectricity Distrib Rehabilitation||ENERGY||42.0||0.1||41.9|
|DO Social Sectors Investment Rogram||SOCIAL PROTECTION||29.4||0.7||28.7|
|DO Youth Development Project||SOCIAL PROTECTION||25.0||5.8||19.2|
|DO (APL2) Health Ref II||HEALTH||30.5||0.0||30.5|
|DO Emergency Recovery & Disaster Mgmt||EMERGENCY||80.0||22.2||57.8|
|As ofOct 8,2009|
|Outstanding gross guarantees||152.4||181.4||242.8||183.7||91.3||78.7||157.3||127.9||126||124.7|
|Interest and charges||14.7||14.8||19.4||22.5||22||21||18.8||19.9||21.14||22.6||25||10.7|
Annex III—Relations with the Inter-American Development Bank
1. In 2009, the IDB estimates disbursements for US$285,7 million, excluding a probable US$300 million disbursement from the Fiscal Strengthening Program, to be approved in October 2009 (see below).
|Science and Technology||-||-||-|
|Urban Dev. And Housing||-||-||-|
|Labor Market, Training, and Transfers||10.0||5.8||4.2|
|Private Sector Development||9.4||9.4||-|
|B. Loan Transactions|
|Interests and Charges||33.2||36.0||40.9||48.0||52.0||56.0||66.1||66.0||62.3||56.6|
|Subscriptions and Contributions||7.3||0.7||0.5||0.4||4.0||3.8||2.1||1.9||0.0||0.0|
2. As of October 2009 the Bank is close to approving a Fiscal Strengthening Program (US$500 million), which would contemplate additional disbursements in two tranches (US$300 million in 2009 and US$200 million in 2010). For 2010, the Bank will work in the preparation of three investment projects: the second phase of the Program to Support an Agricultural Competitive Transition (US$30 million); the Education Decennial Plan Support Program (US$39 million); and the second phase of a Social Protection Program (US$35 million). Additionally, the Bank is currently in the final stages of the design of the IDB Country Strategy for the period 2009-2012.
Annex IV—Statistical Issues
General issues and data adequacy for surveillance
3. Data provision has some shortcomings, but is broadly adequate for surveillance. The authorities are working to correct weaknesses in their statistical database. The country has participated in the General Data Dissemination System (GDDS) since November 2005.
4. In 2005, a data ROSC mission assessed the statistical system, which is highly centralized in the Central Bank of the Dominican Republic (BCRD). The mission found that notwithstanding recent efforts to improve the quality of macroeconomic statistics, important weaknesses remained. The legal framework is adequate for monetary and balance of payments statistics, but not for other macroeconomic statistics. In most areas the macroeconomic statistics should more closely follow current international methodologies, and source data need to be more fully developed. Statistical techniques are broadly adequate, except for the significant shortcomings of the consumer price index (where weights and reference periods are not aligned). Periodicity and timeliness of data meet or exceed GDDS recommendations. Revision analysis and studies are generally absent or not disseminated.
Real sector statistics
5. GDP data. Five STA missions from January 2002 to April 2004 assisted the BCRD in compiling consistent quarterly GDP estimates, and updating the base year of the annual series to 1991. Although a new series for the period 1991-2003 was published in July 2004, the new series was not immediately incorporated in the official quarterly GDP figures. The revised annual and quarterly series for the period 1991-2005 were released on March 16, 2006. The revised GDP estimates are, on average, 17 percent higher than the previous ones. The new base year of 1991 is already outdated as international guidelines on national accounts compilation recommend updating the base year at least every five years.
6. CPI data. The CPI weights are based on the 1997-98 household expenditure and income survey and need to be updated. The 2005 data ROSC noted the need for appropriate adjustments for seasonal and missing price imputations, changes in product specifications and quality, and new products. The CPI also needs to take into account imputed rent for owner-occupied dwellings and dwellings used by third parties without payment.
7. Other. Data are not always reported for publication in International Financial Statistics (IFS) with the required timeliness and have weak coverage of major real sector indicators. There are no available series for producer prices and wages (except minimum wages). Quarterly and annual industrial production data are posted on the central bank’s website.
Government finance statistics
8. The April 2002 multisector technical assistance mission and the August 2005 data ROSC mission identified significant shortcomings in the fiscal data on the general government. These shortcomings included (i) legislation that does not clearly define the responsibility for collecting, compiling, and disseminating government finance statistics (GFS); (ii) data sources and data collection procedures that need to be more fully developed; (iii) an analytical framework for compiling GFS that is not fully aligned with international guidelines; (iv) lack of formal procedures to coordinate the exchange of information among GFS compilers; and (v) the absence of an integrated system of financial management that supports GFS compilation.
9. The 2002 mission prepared an action plan to improve collection, compilation, and dissemination of fiscal data, and elaborated a table to bridge the budgetary and the Government Finance Statistics Manual 2001 (GFSM 2001) classifications. The 2005 mission concluded that the number of staff of the State Secretariat of Finance (SSF) was insufficient for the compilation of GFS and that the coverage of the GFS remained incomplete. An April/May 2007 statistics mission assisted the BCRD and the SSF in improving the collection, compilation, and reporting of GFS, on accrual and cash bases, based on the GFSM 2001. The BCRD compiles and disseminates annual GFS data published in the Government Finance Statistics Yearbook.
10. The country is currently participating in a regional project for the harmonization of GFS for Central America, Panama, and the Dominican Republic (CAPDR). As part of this project, a June 2009 mission provided further assistance to tackle the issues raised in the previous paragraphs and assisted the authorities in improving the quality of annual accrual-based data.
Monetary and financial statistics
11. The monetary statistics currently reported to WHD are affected by the following issues: (i) lack of sufficient detail to allow for a proper sectorization of accounts and classification of financial instruments; (ii) concepts and principles underlying valuation, classification of financial instruments, and sectorization of institutional units are inconsistent with internationally accepted methodology; (iii) the institutional and financial instrument coverage is not comprehensive; and (iv) the system for reporting lacks a consistent methodology. To address these issues, April 2003 and July 2004 monetary statistics missions began the development of an integrated database to be used by the authorities, STA, and WHD, based on the methodology recommended in the Monetary and Financial Statistics Manual. Although the methodology applied in the new database is sound, several problems remain, including lack of data on financial cooperatives and offshore operations of resident banks.
12. The country began to report monetary data to STA in the standardized report forms (SRFs) in August 2007, which are being used for national publications as well since July 2009. SRFs based data overcome the shortcomings described in the previous paragraph; however, the lack of data on financial cooperatives and offshore operations of resident banks still remains. The SRFs were developed in the context of a regional project for the harmonization of monetary and financial statistics in Central America and the Dominican Republic that ended in December 2008.
External sector statistics
13. Since February 1997, balance of payments statistics have been compiled according to the fifth edition of the Balance of Payments Manual. However, problems of coverage remain for imports, capital transfers, income, and the financial account, giving rise to large errors and omissions. Three technical assistance missions during 2002-04 have assisted the BCRD in improving balance of payments statistics and preparing the International Investment Position (IIP) data, which are now available up to 2007. A follow up mission was conducted in August 2007 that focused on sample surveys and statistical techniques to improve the compilation of direct investment, portfolio investment, and other nonfinancial private sector assets and liabilities, as well as domestically issued public debt held by nonresidents. A 15-month action plan with recommendations for improving the balance of payments and IIP statistics was prepared by the mission in consultation with the BCRD. The compilation of the external accounts complies with the requirements of the GDDS in terms of periodicity and timeliness.
14. The authorities publish quarterly reports on economic developments. The reports contain timely preliminary data on real GDP, consumer prices, interest rates, exchange rates, balance of payments, exports and imports, operations of the central government, and the banking system. The Quarterly Bulletin of the BCRD contains more detailed information on sectoral developments, but the bulletin is sometimes published with delays. The BCRD also maintains a website that presents selected data on a relatively timely basis.
|As of October 6, 2009||Date of latest observation||Date|
|Data Quality -Methodologica l Soundness9||Data Quality -Accuracy and Reliability8|
|Exchange Rates||Oct 2009||10/2/09||D||D||M|
|International Reserve Assets and Reserve Liabilities of the Monetary Authorities1||Oct 2009||10/2/09||D||D||M|
|Reserve/Base Money||Oct 2009||9/18/09||D||D||M||LNO, O, LO, LO||LO, O, O, O, LO|
|Broad Money||Oct 2009||9/18/09||M||M||M|
|Central Bank Balance Sheet||Oct 2009||9/18/09||M||M||M|
|Consolidated Balance Sheet of the Banking System||Oct 2009||9/18/09||M||M||M|
|2 Interest Rates||Agust 2009||9/20/09||D||D||M|
|Consumer Price Index||August 2009||9/19/09||M||M||M||O, O, O, O||O, LNO, LNO, O, LO|
|Revenue, Expenditure, Balance and Composition of Financing3 - General Government4||LO, NO, LO, LO||LNO, O, LO, O, LNO|
|Revenue, Expenditure, Balance and Composition of Financing3 - Central Government||June 2009||8/30/09||M||M||M|
|Stocks of Central Government and Central Government-Guaranteed Debt5||Q||Q||Q|
|External Current Account Balance||2008||3/27/09||Q||Q||Q||O, LO, LO, LO||LO, O, LO, LO, NO|
|Exports and Imports of Goods and Services||2009||3/27/08||Q||Q||Q|
|GDP/GNP||2009 Q2||9/15/09||Q||Q||Q||LNO, LO, LNO, LO||LNO, LO, LNO, O, LNO|
|Gross External Debt||Q||Q||Q|
|International Investment Position6||2008||5/5/09||Q||I||I|