IMF Executive Board Completes Sixth and Seventh Reviews Under the SBA for
The Executive Board of the
The Board also granted the authorities' request for modification of the
The 24-month SBA was approved on
Following the Executive Board's discussion, Mr.
"The Executive Board expressed its regret at the major damage and hardship caused by the recent natural disaster that affected
"With fiscal consolidation having progressed largely as planned prior to the disaster, there is room for a temporary easing of fiscal policies to absorb the revenue losses and additional spending needs and avoid a further decline in activity. Nonetheless, to maintain public debt firmly anchored, it will be critical to strictly contain non-priority spending and sustain ongoing efforts to improve revenue collection.
"The authorities have adopted a well-coordinated strategy to assess and manage the impact of the disaster on the banking system. Continued progress in improving bank supervision and contingency planning, as well as the legal and regulatory framework for the banking sector in general and the resolution of non-performing loans in particular, will deliver a more resilient banking sector. Remaining shortcomings in the anti-money laundering framework will also need to be addressed.
"Renewed efforts to drive forward the structural reform agenda will be crucial to emerge from the disaster stronger, with faster growth and more jobs. Measures to facilitate business registration and operation are already yielding positive results, but more needs to be done to improve economic governance. Adopting new labor market legislation that is more conducive to job creation is essential to reduce the high level of unemployment.
"Given the authorities' performance and the additional financing needs created by the natural disaster, an augmentation of the Stand-By Arrangement is appropriate to smooth the adjustment process. The Arrangement remains a valuable anchor for economic policies during this uncertain and difficult period."
TNS 30BautistaJude 140701-4783775 30BautistaJude
Most Popular Stories
- Criminal Investigation Opened Into James Foley's Death
- Swiss Suicide Tourism Doubled Since 2009
- Wealth Gap Widened in Past Decade: Census
- Florida's Largest Insurer Says 'Bailout' Attacks Unfair
- Job Market Shifts Complicate Yellen's Rate Decision
- U.S. Supporters of Islamic State Get Close Scrutiny
- Gap Reports Higher Profits, India Plans
- James Foley Beheading Sparks Anger, Little Action
- McDonald's Names Another U.S. President
- International Revulsion Grows Over James Foley Death