NewsWhore
02-04-2008, 04:50 PM
Despite increased public calls for continuing with fiscal supervision provided by an agreement with the International Monetary Fund, the current agreement came to a close on 31 January. According to El Caribe, the key issue is whether the main economic actors will believe that the government can operate a balanced fiscal policy and, during an election process, handle public finances with prudence.
Under the IMF, the government was obliged to produce a fiscal surplus, something it no longer has to do. The IMF stipulated that the surplus had to reach at least 1.8% of GDP. The business sector, perhaps more as a "message" rather than a doable suggestion, has maintained its position on the need for a new IMF accord. The government apparently has not reached an official position on this issue, but the possibilities of reaching a new accord are very slim, at least before the 16 May election comes around. The IMF, by the very nature of its agreements, seldom has agreements lasting less than a year and is not known to negotiate such with governments that have less than a year to go in their terms. If a new agreement is needed, the negotiations will be with the elected officials.
More... (http://www.dr1.com/index.html#3)
Under the IMF, the government was obliged to produce a fiscal surplus, something it no longer has to do. The IMF stipulated that the surplus had to reach at least 1.8% of GDP. The business sector, perhaps more as a "message" rather than a doable suggestion, has maintained its position on the need for a new IMF accord. The government apparently has not reached an official position on this issue, but the possibilities of reaching a new accord are very slim, at least before the 16 May election comes around. The IMF, by the very nature of its agreements, seldom has agreements lasting less than a year and is not known to negotiate such with governments that have less than a year to go in their terms. If a new agreement is needed, the negotiations will be with the elected officials.
More... (http://www.dr1.com/index.html#3)