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IMF approves funds for Dominica

Published:Thursday | January 12, 2012 | 5:02 PM

The International Monetary Fund (IMF) has approved a disbursement of US$3.1 million for Dominica under the Rapid Credit Facility.

The Washington-based financial institution says the money will help manage the economic impact of a series of natural disasters from July to September last year.

The IMF says the cost of reconstruction and rehabilitation is expected to be high at 6.5 per cent of gross domestic product and will weaken Dominica’s balance of payments.

The Rapid Credit Facility, which provides quick financial assistance for low-income countries with urgent balance of payments need, does not require any programme-based conditionality or review.

However, the IMF said economic policies are expected to address the underlying balance of payments difficulties and support policy objectives, including macroeconomic stability and poverty reduction.