The IMF departs with suggestions, concerns

Santo Domingo.- The International Monetary Fund (IMF) delegation which visited the country from June 17 to 29 returns to Washington today, and suggested packaging all tax break laws into one legislation, and again cited the electrical problem’s negative impact on public finance.

Quoting sources, listin.com.do reports that the team led by Prezmek Gajdeczka stated concern with the energy problem and the country’s low tax revenues.

Despite recent improvements from the fiscal reform, the country’s tax burden as a share of GDP ranged from 16% to 17% in 2007, but with the reform is estimated to be 15%.

Overall the IMF experts reportedly note that the authorities work correctly in macroeconomic terms, such as holding down interest rates and the Monetary Board’s release of RD$20.0 billion from bank reserves to boost the productive sectors, including building low cost housing and an helping small businesses.

As to the tax reform, the IMF officials blame its less-than-projected results on stronger-than-expected economic slump.

The economy grew 0.3% of GDP during the first quarter, according to the Finance Ministry.