Caribbean News Now!

About Us Contact Us

Countries/Territories

Jump to your country or territory of interest

Advertise with us

Reach our daily visitors from around the Caribbean and throughout the world. Click here for rates and placements.

Contribute

Submit news and opinion for publication

Subscribe

Click here to receive our daily regional news headlines by email.

Archives

Click here to browse our extensive archives going back to 2004

Also, for the convenience of our readers and the online community generally, we have reproduced the complete Caribbean Net News archives from 2004 to 2010 here.

Climate Change Watch

The Caribbean is especially vulnerable to rising sea levels brought about by global warming. Read the latest news and information here...

Follow Caribbean News Now on Twitter
Connect with Caribbean News Now on Linkedin



News from the Caribbean:


Back To Today's News

IMF concludes visit to Bahamas
Published on July 21, 2014 Email To Friend    Print Version

NASSAU, Bahamas -- An International Monetary Fund (IMF) team, headed by Mbuyamu Matungulu, visited The Bahamas during July 14-18 as part of the regular consultation process with member countries on their economies. The team met with senior government officials and representatives of the private sector.

At the end of the discussions, Matungulu made the following statement:

“Economic activity continues to recover, but momentum remains weak, with growth estimated at 0.7 percent in 2013, and expected to be limited to 1.2 percent this year. The fiscal consolidation process has begun, although its pace could be frustrated by delays in the introduction of the value-added tax (VAT). Preliminary data suggest that the fiscal deficit declined to 4.5 percent of GDP from 5.4 percent in the previous fiscal year. The deficit is projected to narrow further to just under 4 percent of GDP in the 2014/2015 fiscal year, provided that the VAT is introduced in the coming months.

“The economy’s external position is also expected to improve, with the current account deficit declining to 16.6 percent of GDP in 2014, compared to 19.4 percent in 2013, amid a modest strengthening of the external reserves position. The financial sector remains well capitalized and highly liquid, although it continues to deal with a sizable and aging stock of non-performing loans (NPLs).

“The staff team engaged in preliminary policy discussions with the Bahamian authorities in preparation for the annual Article IV Consultation discussions, tentatively scheduled for early November. It supported the authorities’ fiscal consolidation efforts in order to place the government debt on a declining path. This is essential to boosting investor confidence, further improving the growth outlook, and strengthening employment prospects. The mission emphasized the key role to be played by the VAT in that context. In this regard, the team encouraged the authorities to finalize the agreed VAT legislation to ensure the successful introduction of this key reform.

“The staff team welcomed the anticipated improvement to the external balance from the soon-to-be opened Baha Mar project, which would boost tourism earnings and contain official external borrowing to shore up reserves. The team counseled efforts to strengthen and diversify growth, in light of continuing high unemployment levels. In this context, the team urged accelerated implementation of planned reform of the energy sector. Finally, the mission welcomed the continued strength of the financial system, in the face of both high level of NPLs and a rapidly changing supervisory framework. In this respect, it urged continued close monitoring of credit risks, and supported government efforts at implementing appropriate domestic and international supervisory policies, including as recommended by the IMF’s recent Financial Sector Assessment Program (FSAP).”
 
Reads: 1924





Click here to receive daily news headlines from Caribbean News Now!



Back...

Comments:

No comments on this topic yet. Be the first one to submit a comment.

Back...

Send us your comments!  

Send us your comments on this article. All fields are required.

For your contribution to reach us, you must (a) provide a valid e-mail address and (b) click on the validation link that will be sent to the e-mail address you provide.  If the address is not valid or you don't click on the validation link, we will never see it!

Your Name:

Your Email:

(Validation required)

Comments:
Enter Code



Please note that, if you are using an AT&T domain email address, e.g. att.net, bellsouth.net, sbcglobal.net, the verification email will likely not be delivered. This is outside of our control and the only remedy seems to be for readers to complain to AT&T





Disclaimer
User comments posted on this website are the sole views and opinions of the comment author and are not representative of Caribbean News Now or its staff. Caribbean News Now accepts no liability and will not be held accountable for user comments.
Caribbean News Now reserves the right to remove, edit or censor any comments. Any content that is considered unsuitable, unlawful or offensive, includes personal details, advertises or promotes products, services or websites or repeats previous comments will not be approved.
Before posting, please refer to our Terms of Use and Privacy Policy.



Other Headlines:



Regional Sports: