Dominican Republic : cash transfer

The GODR will agree to implement exchange rate unification by 1/31/85 and, shortly thereafter, related monetary, fiscal, and pass-through measures. Other GODR actions will include: (1) petroleum price adjustments to reflect the unified exchange rate; (2) restructuring of electricity tariffs; (3) a comprehensive FY85 public sector budget calculated at the unified exchange rate which does not require net domestic credit financing from the central bank or the reserve bank; and (4) appropriate monetary measures such as the issuance of market rate stabilization bonds, at least partial deregulation of interest rates, and a ceiling on reserve bank reserve deficiencies. The GODR will also: (1) provide at least $50 million for import of U.S. spare parts, capital goods, and industrial and agricultural inputs; (2) prepare a memorandum of understanding on procedures for programming and disbursing the local currency counterpart of the A.I.D. grant; and (3) establish a special account for the local currency counterpart.