Published On: Mon, Nov 17th, 2014

Dominican Republic to adopt reforms to boost productivity

Inter-American_Development_BankWASHINGTON, USA - The Inter-American Development Bank (IDB) has approved a $250 million loan to support policy reforms that will help boost productivity in the Dominican Republic.

The loan will give shape to the “Program to Improve Productivity,” which addresses the urgent need to promote reforms that increase the productivity of micro-, small- and medium-sized companies. These firms account for 97 percent of all companies in the Caribbean country and 30 percent of its GDP.

The program is important because since the late 1990s productivity in the Dominican economy has been flat compared to that of the United States and other countries of Latin America and the Caribbean. The program aims to help trigger a rise in productivity.

The IDB program, a two-stage, policy-reform loan, will help achieve this goal through changes designed to strengthen banking regulation and facilitate financing of such micro-, small- and medium-sized firms.

It includes the presentation to Congress of the Law on Reciprocal Guarantees, the streamlining of administrative procedures and the adoption of other measures to enhance the business climate. It will also boost incentives to bring workers and companies out of the underground economy and strengthen government institutions and policies to stimulate productive development and innovation.

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