2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Dominican Republic


2019 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Dominican Republic

Fund Relations

(As of March 31, 2019)

Membership Status: Joined: December 28, 1945

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Outstanding Purchases and Loans: None

Latest Financial Arrangements:

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Projected Payments to Fund

(SDR Million; based on existing use of resources and present holdings of SDRs):

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Implementation of Enhanced HIPC Initiative: Not Applicable

Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable Implementation of Catastrophe Containment and Relief (CCR): Not Applicable

Exchange Rate Arrangement. The Dominican Republic’s de jure exchange rate arrangement is classified as “managed floating”, while the de facto exchange rate arrangement is classified as a “crawl-like arrangement.” The Dominican Republic maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions.

Article IV Consultation. The previous round of Article IV consultation discussions took place in Santo Domingo during January 29 – February 10, 2018. The consultation was concluded by the Executive Board on April 11, 2018. The corresponding report was published in October 2018. The Dominican Republic is on the standard 12-month consultation cycle.

FSAP Participation. An FSAP update was completed in February 2009. The corresponding report was issued in November 2009.

Technical Assistance. Technical assistance (TA) delivery to the Dominican Republic takes place through a mix of resident advisors, short-term HQ expert missions, and visits from regional advisors based in the IMF Regional Technical Assistance Center for Central America, Panama and the Dominican Republic (CAPTAC-DR). The key areas of focus are:

  • Revenue Reform: a resident tax administration advisor supports the internal tax administration (DGII), and the work plan in the last year has focused on the strengthening of taxpayer registry and tax compliance risk management. In the medium term, CAPTAC-DR will continue to support the modernization strategy of tax administration (risk management and tax audit based on cross-information).

  • Customs Administration: the TA of CAPTAC-DR to the external tax administration (DGA) has been focused in three main areas: (i) strategic planning; (ii) risk management; and (iii) post-clearance audit.

  • Public Financial Management: the focus of TA is to enable greater efficiency in the use of public resources as well as greater fiscal transparency. Specific TA objectives include (i) the improvement of asset and liability management; (ii) comprehensive, credible and policy-based budget preparation; (iii) strengthened identification, monitoring and management of fiscal risks, and (iv) improved coverage and quality of public sector financial statements.

  • Real Sector Statistics: TA to compile Input-Output Tables (IOT) for 2007 and 2012 was provided during 2016 and 2017; the dissemination of the IOTs as part of the National Accounts series with base year 2007 is forthcoming. A national accounts rebasing project to 2018 is in progress, for which a Household Income and Expenditure Survey was conducted during 2018/19. For National Accounts and prices, TA has been planned to go forward, with the topics to be defined by the central bank in line with the rebasing project needs.

  • Government Finance Statistics: the work plan for government finance statistics (GFS) was developed in 2017. Follow-up TA missions resulted in the newly-published monthly budgetary central government data fully aligned with the latest international standards, based on joint work between the MOF and the central bank. Forthcoming TA will focus on the expansion of data coverage and improvement of debt data.

  • Financial Sector Supervision and Regulation: the strategic objective is to bolster the tailored implementation of financial supervision and regulation according to international best practices, with an emphasis on risk-based supervision, cross-border consolidated supervision, and the adoption of prudential criteria based on IFRS and Basel standards. Recent TA activities focused on developing and strengthening banking prudential regulation regarding market risk and IRRBB management; and updating current liquidity risk standards and requirements to banks, by introducing Basel’s LCR.

Resident Representative: The Fund representative office was closed on July 1, 2014.

Relations with Other International Financial Institutions

World Bank: http://www.worldbank.org/en/country/dominicanrepublic

Interamerican Development Bank: https://www.iadb.org/en/countries/dominican-republic/overview

Development Bank of Latin America (CAF): https://www.caf.com/en/countries/dominican-republic/

Central American Bank for Economic Integration: https://www.bcie.org/en/member-countries/regional-non-founding-members/dominican-republic/

Main Websites of Data

Central Bank of the Dominican Republic (https://www.bancentral.gov.do/)

National accounts

Consumer Price Index

Monthly Indicator of Economic Activity (IMAE)

Balance of Payments

International reserves

Interest rates

Monetary and financial indicators

Tourism statistics

Labor and employment

Exchange rates

Ministry of Finance (https://www.hacienda.gob.do/)

Fiscal accounts

Central government budget

Ministry of Economy, Planning and Development (https://www.economia.gob.do/)

Household income and expenditure survey Poverty and inequality Construction sector statistics

Public Debt Office of the Treasury (https://www.creditopublico.gov.do/)

Public debt

Superintendency of Banks (https://www.creditopublico.gov.do/)

Balance sheets and income statements Financial Soundness Indicators

Statistical Issues

(As of April 29, 2019)

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Table 1.

Dominican Republic: Common Indicators Required for Surveillance

(as of April 26, 2019)

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Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents, including of offshore banks.

Daily (D); Weekly (W); Monthly (M); Quarterly (Q); Annually (A); Irregular (I); Not Available (NA).