Eds: APNewsNow. Will stand.

SANTO DOMINGO, Dominican Republic (AP) The Dominican Republic will receive an initial $300 million from the International Monetary Fund as part of a larger loan to boost the country's economy.

The Caribbean nation's Central Bank said Monday the Washington-based international lender has approved a $1.7 billion loan. In exchange, the government promises to reduce tax exemptions, improve banking supervision and better manage public debt.

President Leonel Fernandez said recently that a nearly $600 million budget deficit spurred the government to seek help from the IMF.

It is the second time the Dominican Republic has requested an IMF loan. It received nearly $700 million to overcome a 2003 banking crisis that led to high inflation and devalued the peso.

(Copyright 2009 by The Associated Press. All Rights Reserved.) APNP 11-09-09 1720CST | save this article / add to your favorites list