Malkum said that the economy would rebound strongly after the country successfully negotiated a US$616m loan deal with the IMF. 'If we fulfil the agreement with the Fund and there are no other internal or foreign surprises, the economy should grow 1% or 2% next year, which would be extraordinary for an economy that was shaken by a problem [Baninter collapse] that cost 12-14% of GDP,' he said.
Malkum added that the IMF deal would enable the government to restructure its US$2bn foreign debt with the Paris Club to reduce payments. The sharp depreciation of the peso - by almost 50%, to RD$35 to US$1, in the last nine months - has raised foreign debt commitments to RD$23bn for this year, up from the RD$14bn allotted in the 2003 budget.
The steady recovery of the tourism sector is a welcome fillip. The number of visitors to the premier resort of Punta Cana was up 21%, to 786,000, for the first seven months of the year compared to the same period last year.
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