WASHINGTON. - The International Monetary Fund’s (IMF) Executive Council today stressed that Dominican Republic must reform its electrical sector, including the elimination of the generalized subsidies which it said will cost more than RD$16.5 billion this year.

In its annual analysis of the Dominican economy, the IMF’s supervising agency denounced the electrical system’s "structural faults" which cause large losses to the distribution companies.

“The generalized subsidies to cover those losses are a burden on public finances,” said the Council, which said that cost will surpass 1 percent of the Gross Domestic Product (GDP), estimated at RD$1.64 trillion this year

"Despite these subsidies the quality of the electrical service the citizens receive continues being very bad," the directory said to sum up the November 9 session on the Dominican Republic, day on which it also approved access to 1.7 billion dollars in loans to help face the economic crisis.

As part of the pact the Government pledged to eliminate the subsidies, while the deficient system causes power cuts as long as 20 hours in diverse regions.