The IMF said on Wednesday the Dominican Republic is making progress toward a deal on a crucial loan payment as the Inter-American Development Bank considers a $200 million credit for the nation.
The Caribbean country was plunged into economic crisis last year after the collapse of one of its major banks and has sought international financing to help turn its economy around.
The government has been struggling to reach agreement with the International Monetary Fund on the terms of a review of a $600 million loan that would pave the way for the release of new cash.
"The authorities are making significant progress in implementing measures in policy areas aimed at early conclusion of the first review of the country's arrangement with the Fund," IMF mission chief for the Dominican Republic Marcelo Figuerola said in a statement.
The IMF particularly praised the Dominican Republic for monetary policy steps to help attract investors back into peso denominated assets.
The peso has tumbled as investors have pulled their money out of the country and in November Dominicans took to the street to protest the government's economic policies.