Historically, the dispersion of the Public Credit System as well as the lack of an appropriate regulatory framework generated a series of inefficiencies in the management of the Dominican National Debt which resulted in an inefficient debt portfolio composition. The high exposure of the debt portfolio to the occurrence of risky events was pronounced during the banking crisis of 2003, when the depreciation of the exchange rate, near 80% , lead to an increase in the public sector debt service levels from 0,93% of the GDP in 2002 to 2,02% of the GDP in 2003. As well, the high debt levels respect to the gross internal product (GDP) have originated an enormous fiscal burden due to higher debt service.

As a response to the financial crisis that negatively affected the Dominican Republic’s economy, the country began a process of significant institutional reforms that focused on consolidating the administration of fiscal revenues, expenditures and finance under one governmental entity. An important part of this reform was the creation of the Ministry of Finance (Secretaría de Estado de Hacienda), with Law No 494-06, which designates the Ministry as the governing institution for national public finances. In addition, the Law No 6-06 created the Public Credit General Office (PCGO) within the Ministry of Finance to act as the governing entity of the Public Credit System, responsible for financial policy of the non-financial public sector and the legal framework that regulates negotiation, contracting, and debt service payments for the non financial public sector.