NewsWhore
07-05-2011, 02:10 PM
Economist Bernardo Fuentes doubts that the Fernandez administration will pass the eighth review of the Stand-by arrangement signed with the International Monetary Fund. Fuentes said that the government should pass the pending fifth and sixth reviews, and the seventh that will analyze the fulfillment of targets established for June 2011, as reported in El Caribe. But he says after the seventh it will be obvious that the government will not meet the goal of reducing its deficit for 2011. Fuentes doubts the government will reduce its spending and does not think that the taxation measures implemented this year will be enough to provide the cash to reduce the 2011 deficit. One of the measures increases income tax level on companies from 25 to 29%, but the windfall of revenues will not be received until April 2012. Fuentes says it is likely the IMF will not issue a public statement on the non-compliance of Fernandez administration's commitments.
Fuentes said that the next President elected in May 2012 would have to visit the IMF headquarters at the end of May 2012 or in June 2012 to begin talks for the renewal of the agreement as soon as the new administration takes office in August 2012.
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Fuentes said that the next President elected in May 2012 would have to visit the IMF headquarters at the end of May 2012 or in June 2012 to begin talks for the renewal of the agreement as soon as the new administration takes office in August 2012.
More... (http://www.dr1.com/index.html#2)