The programme implementation success, as provided by the Stand-By Agreement, is facing higher political risks. The seriousness of the economic downturn and close presidential elections threaten the cohesion within the ruling coalition and might weaken support for the needed adjustment and structural reforms measures, say the International Monetary Fund experts in their “Country report”, drawn on Sept. 10, at the end of the evaluation mission headed by Jeffrey Franks over July 29 – Aug. 10. The report was released on Friday, on the IMF site.
Even praiseworthy some of the fiscal remedies proposed by the authorities – reduction in the number of public sector staff and a harsher control upon spending in decentralized structures – can prove difficult to be applied in so short intervals of time.
Also there are higher political risks threatening this programme”s success, as provided by the Stand-By Agreement. The seriousness of the economic downturn and close presidential elections threaten the cohesion inside the ruling coalition and might weaken support for the needed adjustments and structural reform measures, the Country Report emphasizes.
In order to deal with these threats, the authorities recognize the need of a further close monitoring of the programme together with IMF and the continuation of the political dialogue with the Fund and express their openness to make certain political adjustments, if they prove to be necessary, the IMF report also says.
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