Abstract
DOMINICAN REPUBLIC
Title page
DOMINICAN REPUBLIC
STAFF REPORT FOR THE 2022 ARTICLE IV CONSULTATION—INFORMATIONAL ANNEX
June 15, 2022
Prepared By
Western Hemisphere Department
(in consultation with other departments)
Contents
FUND RELATIONS
RELATIONS WITH OTHER INTERNATIONAL FINANCIAL INSTITUTIONS
MAIN WEBSITES OF DATA
STATISTICAL ISSUES
Fund Relations
(As of April 30, 2022)
| Membership Status: Joined: December 28, 1945; Article VIII | ||
| General Resources Account: | SDR Million | Percent Quota |
| Quota | 477.40 | 100.00 |
| Fund holdings of currency (Exchange Rate) | 890.17 | 186.46 |
| Reserve Tranche Position | 64.63 | 13.54 |
| SDR Department: | SDR Million | Percent Allocation |
| Net cumulative allocation | 666.39 | 100.00 |
| Holdings | 458.14 | 68.75 |
| Outstanding Purchases and Loans: RFI | SDR Million | Percent Allocation |
| RFI Loan | 477.40 | 100.0 |
| Membership Status: Joined: December 28, 1945; Article VIII | ||
| General Resources Account: | SDR Million | Percent Quota |
| Quota | 477.40 | 100.00 |
| Fund holdings of currency (Exchange Rate) | 890.17 | 186.46 |
| Reserve Tranche Position | 64.63 | 13.54 |
| SDR Department: | SDR Million | Percent Allocation |
| Net cumulative allocation | 666.39 | 100.00 |
| Holdings | 458.14 | 68.75 |
| Outstanding Purchases and Loans: RFI | SDR Million | Percent Allocation |
| RFI Loan | 477.40 | 100.0 |
| Latest Financial Arrangements: | |||||
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) |
Amount Drawn (SDR Million) |
|
| Stand-By | November 9, 2009 | March 8, 2012 | 1,094.50 | 766.15 | |
| Stand-By | January 31, 2005 | January 30, 2008 | 437.80 | 437.80 | |
| Stand-By | August 29, 2003 | January 31, 2005 | 437.80 | 131.34 | |
| Outright Loans: | |||||
| Type | Date of Commitment | Date Drawn | Amount Approved (SDR Million) |
Amount Drawn (SDR Million) |
|
| RFI | April 29, 2020 | May 01, 2020 | 477.40 | 477.40 | |
| Latest Financial Arrangements: | |||||
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) |
Amount Drawn (SDR Million) |
|
| Stand-By | November 9, 2009 | March 8, 2012 | 1,094.50 | 766.15 | |
| Stand-By | January 31, 2005 | January 30, 2008 | 437.80 | 437.80 | |
| Stand-By | August 29, 2003 | January 31, 2005 | 437.80 | 131.34 | |
| Outright Loans: | |||||
| Type | Date of Commitment | Date Drawn | Amount Approved (SDR Million) |
Amount Drawn (SDR Million) |
|
| RFI | April 29, 2020 | May 01, 2020 | 477.40 | 477.40 | |
Projected Payments to Fund
(SDR Million; based on existing use of resources and present holdings of SDRs):
| Forthcoming | |||||
| 2022 | 2023 | 2024 | 2025 | 2026 | |
| Principal | 119.35 | 238.70 | 119.35 | ||
| Charges/Interest | 5.73 | 7.94 | 5.05 | 1.70 | 1.04 |
| Total | 5.73 | 127.29 | 243.75 | 121.05 | 1.04 |
| Forthcoming | |||||
| 2022 | 2023 | 2024 | 2025 | 2026 | |
| Principal | 119.35 | 238.70 | 119.35 | ||
| Charges/Interest | 5.73 | 7.94 | 5.05 | 1.70 | 1.04 |
| Total | 5.73 | 127.29 | 243.75 | 121.05 | 1.04 |
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 currency of the Dominican Republic is the Dominican peso. The Dominican Republic’s de jure exchange rate arrangement is classified as “managed floating”, while the de facto exchange rate arrangement is classified as “other managed”. The Dominican Republic has accepted the obligations under Article VIII, Section 2(a), 3, and 4, and maintains an exchange system free of multiple currency practices and 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 April 21-May 5, 2021. The consultation was concluded by the Executive Board on June 30, 2021. 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 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 current focus are:
Revenue and Customs Administration: recent missions have supported the internal tax administration (DGII) in measuring the impact of their reform program on tax compliance as well as developing a post-COVID-19 action plan to reinvigorate collections and compliance and further strengthen their structural reform agenda within the context of their own 2021–24 strategic plan. CAPTAC-DR has assisted the customs administration (DGA) in aligning its strategic plan with new governmental priorities—including on strengthening the country’s position as a logistics hub—and strengthening its governance arrangements. A HQ-led customs mission is also planned to support the strategic initiative to facilitate trade by clearing goods within 24 hours (D24H).
Public Financial Management (PFM): CAPTAC-DR experts are working with the Treasury to strengthen the cash programming model and active cash management to speed up payments. Early this year, a HQ-led PFM diagnostic mission focused on assessing the capacity to implement a medium-term fiscal framework able to support the planned fiscal rule legislation (FRL). Going forward, missions are planned to support the drafting of the FRL, fiscal risks analysis, and the assessment of public investment management systems.
Government Finance Statistics: TA missions resulted in the publishing of monthly budgetary central government data fully aligned with the latest international standards, based on joint work between the MOF and the central bank. TA is also underpinning the expected publication of quarterly general government (GG) data. Ongoing TA is being provided on the expansion of coverage and timeliness of GG data, while also reducing above and below-the-line data discrepancy. Improvements are being made in data sources and consolidation. TA is also focused on the improvement of public sector debt data (including the sectorization of some units, notably trust funds, as well as the accrual of interest and nominal value of debt).
Real Sector Statistics: A national accounts rebasing project to 2018 is in progress, for which a Household Income and Expenditure Survey was conducted during 2018/19. CAPTAC-DR is providing multi-year capacity development to the Central Bank in line with the needs for the national accounts rebasing project, which is expected to be completed by the first half of 2023.
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 II/III standards. Recent TA assisted the authorities in developing a roadmap for the implementation of the Basel II/III framework over the next few years. In support of the roll-out of this roadmap, follow-up TA on the frameworks for operation, market and liquidity risk as well on IFRS 9 has been scheduled for fiscal year 2023.
Resident Representative: The Fund representative office in the Dominican Republic was closed on July 1, 2014. Mr. Hadzi-Vaskov (based in Guatemala) is the Regional Resident Representative for Central America, Panama, and the Dominican Republic.
Relations with other International Financial Institutions
World Bank: http://www.worldbank.org/en/country/dominicanrepublic
Inter-American 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: Dominican Republic - Banco Centroamericano de Integración Económica (bcie.org)
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://mepyd.gob.do/
Household income and expenditure survey
Poverty and inequality
Construction sector statistics
Public Debt Office of the Treasury: https://www.creditopublico.gob.do/
Public debt
Superintendency of Banks: https://sb.gob.do/
Banks balance sheets and income statements
Financial Soundness Indicators
National Statistics Office: https://www.one.gob.do/
Population and social indicators
Producer price index
Statistical Issues
(As of May 20, 2022)
| I. Assessment of Data Adequacy for Surveillance |
| General: Data provision has some shortcomings but is broadly adequate for surveillance. Most macroeconomic statistics are compiled by the Central Bank of the Dominican Republic, with the National Statistics Office producing underlying surveys and the population census. Fiscal data are compiled by the Ministry of Finance, and deposit taking institutions data by BCRD and the Superintendency of Banks. |
| National Accounts: The Central Bank of the Dominican Republic (BCRD) compiles and disseminates national accounts series, based on the concepts and definitions of the System of National Accounts 2008 using both production and expenditure approaches, in nominal values and volume measures. A monthly Index of Economic Activity (Indice Mensual de Actividad Económica, IMAE), which is a chain-linked volume index with 2007 as the reference year, is published monthly by the Central Bank. |
| Price Statistics: The BCRD compiles the Consumer Price Index (CPI) following internationally accepted standards. The BCRD has received technical support from the ECLAC in this area. The CPI basket of goods and services is disaggregated and allows evaluation of prices for 12 groups of goods and services, according to the Classification of Individual Consumption by Purpose (COICOP) 1999. It is currently calculated with weight reference period October 2019 to September 2020. The National Statistical Office compiles a Producer Price Index for manufacturing (165 products and 93 services), with weights from the national accounts (base year 2007), and reference period of December 2013. |
| Government Finance Statistics: Both the Ministry of Finance and the Central Bank compile and disseminate government finance statistics (GFS). Although aggregate and consolidated data are available for the central government, the balance of the Rest of the Non-Financial Public Sector is estimated only from the financing side, as above-the-line data coverage on local governments and some non-central government entities is incomplete and not timely. The authorities have made progress in fiscal data presentation and are posting fiscal execution data on the transparency portal of the Ministry of Finance. The country participates in a regional capacity development program for the harmonization of GFS for Central America, Panama, and the Dominican Republic led by the IMF’s Regional Center for Technical Assistance (CAPTAC-DR). The authorities have transitioned to the GFSM 2014 framework, with technical assistance from the Statistics Department of the IMF and CAPTAC DR. The authorities are currently working to implement International Public Sector Accounting Standards (IPSAS) and further results-based program budgeting system that should help to further disseminate comprehensive fiscal data on a timely basis. Monetary and Financial Statistics: The Central Bank of the Dominican Republic compiles monetary statistics, including its monetary accounts and the accounts for other depository corporations (ODCs). A consolidated balance sheet of the financial sector is available. In support of surveillance, monetary data is reported to the IMF’s Statistics Department using standardized report forms on a monthly basis. The Central Bank of the Dominican Republic also disseminates its harmonized monetary statistics via its webpage and provides data on several indicators of the Financial Access Survey (FAS), including two indicators (commercial bank branches per 100,000 adults and ATMs per 100,000 adults) adopted by the U.N. to monitor Target 8.10 of the Sustainable Development Goals (SDGs). |
| Financial sector surveillance: The Dominican Republic is a participant in the IMF’s Financial Soundness Indicators (FSIs) database, reporting FSIs monthly with data beginning in 2008. The data is reported by the Superintendency of Banks of the Dominican Republic and is comprehensive, both for the banking system as a whole, and for individual banks. There is very good coverage of core FSIs, but FSIs on non-financial corporates and households are not available. Data on real estate markets is also lacking. |
| External sector statistics: The Central Bank of the Dominican Republic compiles and disseminates balance of payments (BOP) and international investment position (IIP) statistics on a BPM6 basis. There are some coverage gaps in the recording of nonfinancial private sector transactions in the financial account of the BOP, particularly related to direct investment and private sector external debt transactions and positions which also impact IIP statistics. The Directorate of Public Credit of the Ministry of Finance publishes the external debt of the government. External debt statistics for the whole economy are available from the IIP report. The Dominican Republic does not participate in the Coordinated Portfolio Investment Survey (CPIS) and the Coordinated Direct Investment Survey (CDIS). |
| II. Data Dissemination Standards |
| The Dominican Republic implemented the e-GDDS (a data transparency framework) in 2019, publishing core economic data aligned with the Table of Common Indicators Required for surveillance. The information is published in a data portal called National Summary Data Page, with timeliness and periodicity in line or even exceeding the e-GDDS recommendations. |
| I. Assessment of Data Adequacy for Surveillance |
| General: Data provision has some shortcomings but is broadly adequate for surveillance. Most macroeconomic statistics are compiled by the Central Bank of the Dominican Republic, with the National Statistics Office producing underlying surveys and the population census. Fiscal data are compiled by the Ministry of Finance, and deposit taking institutions data by BCRD and the Superintendency of Banks. |
| National Accounts: The Central Bank of the Dominican Republic (BCRD) compiles and disseminates national accounts series, based on the concepts and definitions of the System of National Accounts 2008 using both production and expenditure approaches, in nominal values and volume measures. A monthly Index of Economic Activity (Indice Mensual de Actividad Económica, IMAE), which is a chain-linked volume index with 2007 as the reference year, is published monthly by the Central Bank. |
| Price Statistics: The BCRD compiles the Consumer Price Index (CPI) following internationally accepted standards. The BCRD has received technical support from the ECLAC in this area. The CPI basket of goods and services is disaggregated and allows evaluation of prices for 12 groups of goods and services, according to the Classification of Individual Consumption by Purpose (COICOP) 1999. It is currently calculated with weight reference period October 2019 to September 2020. The National Statistical Office compiles a Producer Price Index for manufacturing (165 products and 93 services), with weights from the national accounts (base year 2007), and reference period of December 2013. |
| Government Finance Statistics: Both the Ministry of Finance and the Central Bank compile and disseminate government finance statistics (GFS). Although aggregate and consolidated data are available for the central government, the balance of the Rest of the Non-Financial Public Sector is estimated only from the financing side, as above-the-line data coverage on local governments and some non-central government entities is incomplete and not timely. The authorities have made progress in fiscal data presentation and are posting fiscal execution data on the transparency portal of the Ministry of Finance. The country participates in a regional capacity development program for the harmonization of GFS for Central America, Panama, and the Dominican Republic led by the IMF’s Regional Center for Technical Assistance (CAPTAC-DR). The authorities have transitioned to the GFSM 2014 framework, with technical assistance from the Statistics Department of the IMF and CAPTAC DR. The authorities are currently working to implement International Public Sector Accounting Standards (IPSAS) and further results-based program budgeting system that should help to further disseminate comprehensive fiscal data on a timely basis. Monetary and Financial Statistics: The Central Bank of the Dominican Republic compiles monetary statistics, including its monetary accounts and the accounts for other depository corporations (ODCs). A consolidated balance sheet of the financial sector is available. In support of surveillance, monetary data is reported to the IMF’s Statistics Department using standardized report forms on a monthly basis. The Central Bank of the Dominican Republic also disseminates its harmonized monetary statistics via its webpage and provides data on several indicators of the Financial Access Survey (FAS), including two indicators (commercial bank branches per 100,000 adults and ATMs per 100,000 adults) adopted by the U.N. to monitor Target 8.10 of the Sustainable Development Goals (SDGs). |
| Financial sector surveillance: The Dominican Republic is a participant in the IMF’s Financial Soundness Indicators (FSIs) database, reporting FSIs monthly with data beginning in 2008. The data is reported by the Superintendency of Banks of the Dominican Republic and is comprehensive, both for the banking system as a whole, and for individual banks. There is very good coverage of core FSIs, but FSIs on non-financial corporates and households are not available. Data on real estate markets is also lacking. |
| External sector statistics: The Central Bank of the Dominican Republic compiles and disseminates balance of payments (BOP) and international investment position (IIP) statistics on a BPM6 basis. There are some coverage gaps in the recording of nonfinancial private sector transactions in the financial account of the BOP, particularly related to direct investment and private sector external debt transactions and positions which also impact IIP statistics. The Directorate of Public Credit of the Ministry of Finance publishes the external debt of the government. External debt statistics for the whole economy are available from the IIP report. The Dominican Republic does not participate in the Coordinated Portfolio Investment Survey (CPIS) and the Coordinated Direct Investment Survey (CDIS). |
| II. Data Dissemination Standards |
| The Dominican Republic implemented the e-GDDS (a data transparency framework) in 2019, publishing core economic data aligned with the Table of Common Indicators Required for surveillance. The information is published in a data portal called National Summary Data Page, with timeliness and periodicity in line or even exceeding the e-GDDS recommendations. |
Dominican Republic: Common Indicators Required for Surveillance
(as of May 20, 2022)
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).
Dominican Republic: Common Indicators Required for Surveillance
(as of May 20, 2022)
| Date of latest Observation | Date Received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | 5/20/2022 | 5/23/2022 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 5/20/2022 | 5/23/2022 | D | D | D |
| Reserve/Base Money | 5/20/2022 | 5/23/2022 | D | D | D |
| Broad Money | 5/20/2022 | 5/23/2022 | D | D | D |
| Central Bank Balance Sheet | 4/2022 | 5/2022 | M | M | M |
| Consolidated Balance Sheet of the Banking System | 4/2022 | 5/2022 | M | M | M |
| Interest Rates2 | 5/20/2022 | 5/23/2022 | D | D | D |
| Consumer Price Index | 4/2022 | 5/2022 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3-General Government4 | 3/2022 | 5/2022 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3–Central Government | 3/2022 | 5/2022 | M | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | Q4/2021 | 2/2022 | Q | Q | Q |
| External Current Account Balance | Q4/2021 | 4/2022 | Q | Q | Q |
| Exports and Imports of Goods and Services | 12/2021 | 4/2022 | M | M | M |
| GDP/GNP | Q4/2021 | 4/2022 | Q | Q | Q |
| Gross External Debt | 12/2021 | 4/2022 | Q | Q | Q |
| International Investment Position6 | 12/2021 | 4/2022 | Q | Q | Q |
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).
Dominican Republic: Common Indicators Required for Surveillance
(as of May 20, 2022)
| Date of latest Observation | Date Received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | 5/20/2022 | 5/23/2022 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 5/20/2022 | 5/23/2022 | D | D | D |
| Reserve/Base Money | 5/20/2022 | 5/23/2022 | D | D | D |
| Broad Money | 5/20/2022 | 5/23/2022 | D | D | D |
| Central Bank Balance Sheet | 4/2022 | 5/2022 | M | M | M |
| Consolidated Balance Sheet of the Banking System | 4/2022 | 5/2022 | M | M | M |
| Interest Rates2 | 5/20/2022 | 5/23/2022 | D | D | D |
| Consumer Price Index | 4/2022 | 5/2022 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3-General Government4 | 3/2022 | 5/2022 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3–Central Government | 3/2022 | 5/2022 | M | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | Q4/2021 | 2/2022 | Q | Q | Q |
| External Current Account Balance | Q4/2021 | 4/2022 | Q | Q | Q |
| Exports and Imports of Goods and Services | 12/2021 | 4/2022 | M | M | M |
| GDP/GNP | Q4/2021 | 4/2022 | Q | Q | Q |
| Gross External Debt | 12/2021 | 4/2022 | Q | Q | Q |
| International Investment Position6 | 12/2021 | 4/2022 | Q | Q | Q |
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).