IMF approves funds for storm-hit Dominica

By Michelle Nurse On Oct 29, 2015

The Executive Board of the International Monetary Fund (IMF) on October 28, 2015 approved a disbursement of an amount of about US$8.7-million for Dominica as the island rebuilds following the ravages of Tropical Storm Erika.

Deputy Managing Director and Acting Chair of the IMF, Mitsuhiro Furusawa, said an assessment report by the World Bank and the Government of Dominica estimates total damage and loss at US$483 million, 96 percent of GDP, making Erika the worst natural disaster ever to strike Dominica.

“The recovery and rehabilitation costs will be substantial, putting tremendous pressure on already challenging fiscal and balance of payments positions,” he said. “Fiscal policies will accommodate an increase in reconstruction spending over the medium term, expected to be mostly grant financed, while the underlying policies are being appropriately refocused from a supportive cyclical stance toward a medium-term consolidation objective. The authorities have committed to generating robust primary surpluses over the medium term to ensure downward debt dynamics. They will tackle pressures on current spending, broaden the revenue base, strengthen tax collection, further re-prioritize capital expenditures, and step up efforts to strengthen the fiscal policy framework to ensure the sustainability of the fiscal adjustment effort.”