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Antigua & Barbuda will not re-engage with the IMF – Finance Minister
It said the fiscal deficit dropped from 18 percent of gross domestic product (GDP) in 2009 to just over one percent last year.
The IMF said that much of the adjustment under the program has come from cuts in public spending and investment, while tax revenue targets for 2013 have been met largely through one-off payments of back taxes.
“Another risk looms in the expiration of debt relief and upcoming payments due to foreign creditors. Further improvements in the collection of tax revenues are necessary to allow the authorities to meet their targets and while making needed public investment. In particular, the elimination of tax exemptions and a broadening of the tax base could help.”
The IMF said it had also approved Antigua & Barbuda’s request for a waiver of non-observance of the performance criterion on the central government budget expenditure arrears accumulation.
It said the waiver was granted on the basis of the temporary and minor nature of the deviations from the program objectives and the corrective measures undertaken by the authorities.
After the expiration of the stand by agreement, Antigua & Barbuda and the IMF will continue to maintain a constructive policy dialogue.
According to Minister Lovell, Antigua & Barbuda can now move forward with renewed confidence that the twin-island nation is on the path to economic recovery. -(CMC)
