Published On: Fri, Nov 17th, 2017

Dominican Republic to improve productivity, business climate with IDB support

Inter-American_Development_BankWASHINGTON - The Inter-American Development Bank (IDB) has approved a $300 million policy-based loan to support Dominican Republic’s efforts to boost productivity and tackle the challenges hampering industrial growth.

The funds will help implement reforms in three major areas:

• Strengthening financial regulations to raise productivity, create new institutions to finance productive development, and enhance the security of contracts and financial transactions;

• Improving the business and innovation climate by streamlining administrative processes, fostering competitiveness, and strengthening institutions bent on promoting innovation, production development and quality; and

• Facilitating company registration and formalization practices by expanding the Formalízate digital window, as well as promoting labor formality by consolidating fiscal and social security systems in order to reduce evasion and avoidance of social security contributions.

The program is expected to help modernize and consolidate the financial system in the medium term; promote labor and corporate formalization; diversify production; boost value added domestically; and increase exports.

This loan operation is the second in a programmatic series that aims to provide medium-term support to the program of productivity reforms carried out by the government.

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