IMF Executive Board Approves US$650 Million in Emergency Assistance to the Dominican Republic to address the COVID-19 Pandemic
April 29, 2020
- The IMF Executive Board approves the 40th request for emergency financial assistance to help its member countries address the challenges posed by COVID-19.
- The IMF approved the Dominican Republic’s request for emergency financial assistance under the Rapid Financing Instrument (RFI) of about US$650 million to meet the urgent balance of payment needs stemming from the outbreak of the COVID-19 pandemic.
- The RFI provides timely resources to the authorities which they intend to mobilize for essential COVID-19-related health expenditure and support to the vulnerable population.
- The pandemic has significantly weakened the Dominican Republic’s macroeconomic outlook for 2020 and created financing needs that require additional support.
Washington, DC – April 29, 2020
The Executive Board of the International Monetary Fund (IMF) approved the Dominican Republic’s request for emergency financial
assistance under the Rapid Financing Instrument (RFI) equivalent to SDR 477.4 million (about US$650 million, or 100
percent of quota) to meet the urgent balance of payment needs stemming from
the outbreak of the COVID-19 pandemic.
The pandemic has significantly weakened the country’s macroeconomic outlook
for 2020 and created financing needs that require additional support. The
RFI provides timely resources to the authorities which they intend to
mobilize for essential COVID-19-related health expenditure and support to
the vulnerable population. The authorities are also seeking support from
other multilateral institutions.
To absorb the macroeconomic shock, the Dominican authorities are
appropriately implementing a package of fiscal, macroprudential and
supervisory measures along with monetary easing to sustain economic
activity during the crisis. The government of the Dominican Republic
increased healthcare spending to face the pandemic and created a social
assistance program titled Quédate en casa (Stay at Home) to boost
transfers to the poor.
Following the Executive Board discussion, Mr. Tao Zhang, Deputy Managing
Director and Chair, made the following statement:
The severity of the global COVID-19 shock has disrupted the Dominican
Republic’s economy and created urgent balance of payments and fiscal
financing needs. The authorities swiftly implemented measures to contain
and mitigate the spread of the pandemic. With uncertainties surrounding the
duration and spread of the pandemic, the economic fallout could intensify
further if containment measures have to be extended.
“Macroeconomic and financial policies have been accommodative in response
to the pandemic. The temporary fiscal measures to accommodate higher public
healthcare spending and targeted transfers to the most vulnerable are
appropriate. Once the pandemic recedes, it will be important to return to a
gradual fiscal consolidation, including establishing a medium-term fiscal
framework, to ensure that the public debt-to-GDP ratio remains sustainable
and on a declining path.
“Monetary and macroprudential policies have been eased appropriately,
including a reduction of the statutory reserve requirement and provision of
additional liquidity to the banking system. As circumstances evolve, policy
responses would need to be continually recalibrated. Greater exchange rate
flexibility would be necessary as a shock absorber and to preserve
“The IMF emergency assistance under the Rapid Financing Instrument will
help provide the much-needed resources to address the urgent balance of
payments needs and support essential COVID-19-related health expenditure.
The support of other international financial institutions and development
partners would be crucial to close the remaining financing gaps, ease the
adjustment burden, and preserve the Dominican Republic’s dynamic economic
For information on the emergency financing requests approved by the IMF
Executive Board, please see a link to the IMF Lending Tracker:
For upcoming discussions on the emergency financing requests, please see a
link to the calendar of the IMF Executive Board meetings:
IMF Communications Department
PRESS OFFICER: Maria Candia Romano
Phone: +1 202 623-7100Email: MEDIA@IMF.org