Dominica Makes Formal Request to IMF for Resources Under the Exogenous Shocks Facility

Roseau, Dominica – July 10, 2009……. 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 Governments 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.

For more information, contact:

Sean Douglas
Press Secretary
Office of the Prime Minister
6th Floor, Financial Centre
Kennedy Avenue
Commonwealth of Dominica
Tel: (767) 266-3054
Mobile: (767) 235-2955
Fax: (767) 448-8960

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