The Executive Board of the
The three-year PSI for
Following a slowdown in 2013 characterized by a 4.6 percent growth rate,
The country continues to face the challenge of sustaining high inclusive growth while reducing its reliance on aid and preventing the build-up of imbalances. Moreover, after drawing down foreign exchange reserves over the past few years to support the economy, the room for maneuver is more limited and it will be important to rebuild policy buffers.
In the short term, the need to support growth and preserve the level of foreign reserves requires a cautious fiscal stance through maintaining priority spending whilst also creating an enabling environment for private sector credit expansion. With inflationary pressures subdued, and faced with a binding balance of payments constraint, the
Looking ahead, the challenge is the cost-effective financing and implementation of the ambitious agenda embodied in the government's second Economic Development and Poverty Reduction Strategy (EDPRS2). The authorities thus need to accelerate their domestic revenue mobilization efforts in support of the EDPRS2. Additionally, given the significant scaling up of investment, careful project selection and prioritization will be critical to contain fiscal risks and maintain debt sustainability.
1 The PSI is an instrument of the IMF designed for low-income countries that may not need balance of payments financial support but seek to maintain a close policy dialogue with the IMF through the IMF's endorsement and assessment of their economic and financial policies. The PSI, once approved by the IMF's Executive Board, signals to donors, multilateral development banks, and markets, the strength of a member's policies (see http://www.imf.org/external/np/exr/facts/psi.htm). Details on
2 The Executive Board takes decisions without a meeting (based on lapse of time procedures) when it is agreed by the Board that a proposal can be considered without convening formal discussions.
TNS 30BautistaJude 140531-4752843 30BautistaJude
Most Popular Stories
- Shia LaBeouf Plea Deal, Alcoholism Treatment
- Ohio State Band Chief Fired After Probe
- Stop-Start Engines Save Gas, Reduce Emissions
- Hispanic Leader Goes the Extra Mile
- Ukraine Says Russians Firing Across the Border
- Ford Q2 Net Profit up 6 Percent
- U.S. Weighs Refugee Status for Immigrant Kids
- Jennifer Lopez, Pitbull to Perform at Fashion Rocks
- Morgan Stanley Ponies Up $275 Million to Settle SEC Charges
- Ricky Martin Joins 'The Voice ... Mexico'