Santo Domingo.- An stand-by or precautionary agreement with the International Monetary Fund (IMF) threatens to ruin President Danilo Medina’s first year, undermining his social policies’ chances for success, for whch it’s best to avert it during this period.
The statement is by the economist Ruddy Santana, the country's permanent representative to the IMF from 2004 to 2008. He said what’s best is to start a post-program monitoring.
He what’s preferable is a fiscal consolidation which doesn’t endanger Medina’s redistributive policies. He said in that manner the country wouldn’t face difficulties in obtaining letters from the Fund pursuant to the surmounting the obstacles which in his view represent the loans from World Bank (WB) and the Inter-American Development Bank (IDB).
Santana said if a sudden external shock is generated which jeopardizes the repayment of foreign debt, such as a new U.S. recession, the implosion of the euro or the abnormal rise in oil prices, an agreement with the Fund could be forged in no time, and that resulting from the 2008 crisis, the IMF restructured its facilities in 2009, significantly speeding up its response to the application of agreements from its members.