Santo Domingo.-  The head of the Central Bank on Thursday said although president Danilo Medina’s commited to deal with the fiscal deficit through comprehensive tax reform which includes major spending cuts, increased tax revenue and stronger government agencies, "it will be careful not to affect social programs, prioritizing spending on education and other social sectors."

Hector Valdez Abizu spoke in a news conference to "clarify" on the IMF delegation which came to the country and "avoid creating doubts about the purpose and scope of this visit."

He said the Dominican authorities are aware that the external environment and the current fiscal conditions represent "a huge challenge for all," on which they’ve been working to design and implement an economic program, together with the IMF, which addresses the weakest areas of the country's economy.

He said the government's economic team agreed with the IMF mission to start talks on a new pact within the next visit slated for November. "We’re in constant communication with the mission to advance the final analysis of the figures and economic projections."

He said the monetary authorities maintain a strong commitment to macroeconomic stability, in coordination with the tax authorities, to strengthen the business and investment climate giving certainty to the economic agents and the general public.

"Let's wager, as always, on our country's future with optimism. As in the past, we can deal with the adverse conditions we face. The fundamentals of our economy remain strong, supported by an entrepreneurial and thriving private sector."