Sunday, July 12, 2009

Dominica seeks IMF support

By Sean Douglas

As the effects of the global economic and financial crisis continue to impact negatively on small and vulnerable economies like Dominica, the Dominica Government has joined the Government of Saint Vincent and the Grenadines and Saint Lucia in making a formal request to the International Monetary Fund (IMF) for resources under the Rapid-Access Component of the Exogenous Shocks Facility (ESF).

Dominica is seeking SDR 3.28 million(US$5 million).

The Exogenous Shocks Facility comes with minimal conditions and quick disbursements and is intended to assist small island developing states like Dominica respond to adverse external economic conditions, such as the economic crisis the entire world is now grappling with.

This facility is unlike the Stand-by arrangement and the Poverty Reduction and Growth Facility (PRGF) arrangement, which Dominica accessed between 2002-2006.

The resources from the Exogenous Shocks Facility would help meet the immediate foreign exchange needs stemming from the decline of export receipts and weaker capital account inflows resulting from the impact on the economy of the global economic and financial crisis. The OECS Region as a whole is expected to see growth of less than 1% in 2009.

As part of the eight-point stabilisation agenda outlined by the ECCB Monetary Council to respond to the current global economic crisis, ECCU member states have decided to develop financial programmes and approach the IMF for assistance to help mitigate against the impact.

While for the time being the impact of the global economic crisis on the Dominican economy is less severe than in other OECS countries, there is cause for concern, particularly as regards the decline in remittances from overseas and tourist arrivals.

Since the successful completion of the PRGF arrangement in December 2006, Dominica has requested and received assistance under the IMF’s Emergency Natural Disaster Assistance (ENDA) facility.


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Comments:
Sean Douglasss and his government are either all confused or patently DECEPTIVE! Here it is Mr Skerrit is boasting at a DLP Convention that Dominica is not in the category of the other OECS countries and is weathering the economic storm with grace and fluency. Next thing I hear is that he is at the OECS Heads meeting talking about a BLEAK economic future and below 1% growth for Dominica and the other OECS islands. Then he Sean is writing big advertisement in the paper about Dominica going to the IMF to meet some sort of contraction in the economy. Somebody is jerking somebody off. Why the LIES!
 

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