These remarks came in a press release issued on Friday, after the IMF Executive Board had completed its second review of
A PSI is an instrument for countries that are not asking the IMF to lend them any money but are still seeking IMF endorsement for their policies (often necessary to persuade other donors or funding agencies to provide support). This PSI was approved by the IMF board in June last year.
The press release cited IMF Deputy Managing Director,
"The fiscal stance for 2014 is expansionary, partly reflecting some temporary factors--such as spending related to holding general elections--and public investment", said Shinohara. "Fiscal consolidation will be needed in the medium term. Monetary policy needs to remain vigilant and stand ready to take action to keep inflation to the authorities' medium-term target".
"The structural reform agenda is progressing, but implementation could be invigorated, especially in the areas of public financial management reforms and the identification of fiscal risks", he continued. "Building institutional capacity is important to prepare for managing the future resource boom and making growth more inclusive".
"External borrowing can help fund infrastructure investments", Shinohara added. "However, using such resources effectively requires a transparent project analysis, prioritization and selection process, and should be informed by the implications for debt sustainability. Furthermore, strict monitoring of project implementation is essential to ensure value-for-money in the use of public resources."
This follows the visit of an IMF mission to
The mission was clearly concerned about last year's
But the IMF also wanted "close monitoring of and reporting on EMATUM's operations, which will be critical in assessing the associated fiscal risks".
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