(BBC) The International Monetary Fund has approved a US$1.7 billion loan programme to help the Dominican Republic through the economic crisis.

In common with several Caribbean nations, the Dominican Republic has suffered rising unemployment and reduced exports, tourism and remittances.

The IMF said the funding will allow the Dominican Republic to inject a short-term fiscal stimulus while also laying the foundations for a gradual recovery and sustained growth.

The stimulus will focus on high-return investment projects and strengthening social programs.

The Fund also said the agreement will pave the way for additional financing from other multilateral sources.

The Inter-American Development Bank agreed to a loan of $500 million dollars in October.