Fund-supported program. The Executive Board approved a precautionary blended program on December 3, 2014. The program is for a total of SDR 129.5 million (100 percent of quota) and is being supported by a 36-month Stand-By Arrangement (SDR 77.7 million, 60 percent of quota) and a 24-month arrangement under the Standby Credit Facility (SDR 51.8 million, 40 percent of quota). The main objectives of the program are to preserve macroeconomic stability and to implement a broad structural reform agenda to improve conditions for sustainable inclusive growth and support poverty reduction. Macroeconomic context. Macroeconomic performance in 2014 was significantly better than envisaged at program approval, benefiting from strong program implementation and ownership, as well as more favorable external conditions. The 2014 outturn included lower inflation and stronger external sector and fiscal positions relative to the program. The outlook has also improved-reflecting mainly lower oil prices-with higher GDP growth, lower inflation, and stronger fiscal and external accounts. Program implementation. Program implementation for the first reviews has been strong. All 2014 performance criteria and indicative targets were met, most with significant margins. The authorities have also created fiscal space within the program to increase social spending and support efforts to reduce poverty. On the structural side, December 2014 and March 2015 benchmarks were also generally observed. The revised program proposed for 2015 envisages further strengthening fiscal and NIR targets. This reflects last year's overperformance, the improved external sector outlook, and the authorities' strategy of taking advantage of lower oil prices to reduce fiscal deficits and put the finances of the state electricity company on a sound footing faster than originally anticipated. The revised program also proposes to move the timing for the completion of structural benchmarks related to social security reform and audit of domestic arrears to later in 2015. The authorities will continue to treat the program as precautionary.
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|Size: ||6.6 MB|
|Publisher: ||INTERNATIONAL MONETARY FUND|
|Date published: || 2015|
|ISBN: ||9781513509020 (DRM-EPUB)|
|Read Aloud: ||not allowed|