Author/Editor:

International Monetary Fund. Western Hemisphere Dept.

Publication Date:

November 21, 2017

Electronic Access:

Free Full Text (PDF file size is 2391 KB).Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Fund-supported program. The Executive Board approved a blended 36-months Standby Arrangement (SBA) and 24-months Stand-by Credit Facility (SCF) arrangement on December 3, 2014 for the total access of SDR 129.5 million (51.84 percent of quota). The SCF expired on December 2016. None of the available purchases have been drawn. Program status. All end-June 2017 and continuous performance criteria were met. Missed by a small margin was the indicative target on the National Electricity Company’s (ENEE) operating revenue-to-spending ratio due to upfront fees paid to the losses-recovery concessionaire. On the structural front, notable reforms are: the adoption of a fiscal responsibility law (FRL) to anchor a sustainable medium-term fiscal position; the overhaul of the tax administration; the reduction in the heavily overstaffed payroll of the state electricity company (ENEE); the adoption of a decisive plan to modernize monetary and exchange rate policies to adopt inflation targeting; and the reform of the bank resolution framework that substantially strengthens the authorities’ capacity for dealing with financial sector distress.

Series:

Country Report No. 17/331