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Dominican Republic to enhance competitiveness policy with IDB support

The Dominican Republic will enhance competitiveness policy with a loan of $120 million approved by the Inter-American Development Bank.

The program will support the design and implementation of competition policy and carry out institutional and legal reforms that contribute to better fiscal management and economic planning, and invest in specific activities to increase the productive efficiency of the real sectors of the economy.

The program will support the design and implementation of competitiveness  policy and carry out institutional and legal reforms that contribute to better fiscal management and economic planning, and invest in specific activities to increase the productive efficiency of the real sectors of the economy.

Ordinary capital funds of $110 million will focus on the following areas:

  • Macroeconomic sustainability conducive to increased private investment, foreign trade and productivity and competitiveness.
  • Fiscal management through a budget system that ensure macroeconomic consistency, a public investment planning and better public administration with an appropriate system of internal controls.
  • Institutions for competitiveness and trade that facilitate legal reforms arising from international commitments, streamlining trade-related administrative procedures and developing the key institutions to direct the policies and strategies for productive development.
  • Innovation, technological development and quality control.
  • Improved business climate.
  • Technical support for productive development and innovation activities.

On the other hand, the technical cooperation of $10 million will focus on creating the conditions to allow the productive sector to develop sustainable competitive advantages in the medium and long term by providing technical support for productive development activities and innovation. It is expected that the plan will expand the existing base for cluster development and install an effective mechanism for coordination between the public and private actors.

The IDB financing consists of a loan of $110 million of  ordinary capital with an amortization of 20 years, a grace period of 5 years and an interest rate of LIBOR. The technical cooperation of $10 million consists of an amortization of 15 years, a grace period of 5 years and an interest rate of LIBOR.