Finance Minister Dr Peter Phillips says by Monday he will provide the country with an update on his talks with the International Monetary (IMF).

Phillips had been insisted that an agreement would have been inked before year end but later stated that it was the letter of intent that would be completed by December 31.

However, with just two business days left before the year ends, the government is yet to say whether even a letter of intent has been finalised.

When contacted this afternoon, Phillips said the talks were ongoing and that he would make a statement soon.

Meanwhile, financial analyst Dennis Chung says the absence of an agreement with the IMF coupled with the US fiscal cliff means big trouble for the island.

Economists say the US could plunge into recession if the tax increases and huge spending cuts referred to as the fiscal cliff take effect on January 1.

Speaking on Real Business on Power 106FM Chung said Jamaica is set to face great financial difficulties if the US goes back into recession.

Chung believes the time has also come for the government to address the country’s balance of payment issue.

Chung says the Jamaican government must tell the nation how it plans to address the country’s financial challenges and say when an agreement will be signed with the IMF.

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