IMF To Publish Bahamas Report In July

by Amanda Banks, Tax-News.com, London

02 June 2003

Prime Minister of the Bahamas, Perry Christie, announced last week that the International Monetary Fund (IMF) is intending to publish its report on the Bahamian economy in July.

Whilst the Prime Minister expects the IMF analysis to be generally supportive of the state of the economy, he is anticipating that the document will recommend "substantial changes" in many medium term fiscal and economic respects. However, Christie emphasised that the Bahamian government will be fully cooperative with the IMF regarding any recommended reforms, which will be put in place over a reasonable time frame after public consultation.

The Prime Minister also stressed that the government would be careful not to compromise the jurisdiction's international competitiveness in the implementation of any new reforms.

Christie noted the fact that the Bahamas has never been forced to turn to multilateral organisations such as the IMF for financial assistance in the past, and has weathered some turbulent economic conditions in previous years.

"Great credit is due successive governments of The Bahamas and to the people of The Bahamas for that track record," the Nassau Guardian quoted the PM as observing, continuing: "At the same time, the Bahamian people have recognised that this track record involved, and continues to involve, considerable self-discipline, awareness of economic and fiscal realities, and great patience in pursuing growth-oriented policies so that improvements in public services can be soundly and sustainably financed."

In its World Economic Outlook published in April, the IMF forecast slower growth this year, although it anticipated a mild recovery in 2004.

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