Phillips cites progress in IMF talks

Sabrina Gordon, Business Writer

Finance Minister Dr. Peter Phillips says the government has made significant progress in the negotiations with the International Monetary Fund (IMF).

At the end of the team’s two-week visit to the island Phillips said the government and the IMF have started to discuss a draft outline of a letter of intent and a memorandum of economic and financial policies which will be the embodiment of the programme.

He also told journalists at a press conference today that the IMF team will now need to make reference to their staff and principals in Washington.

However, Phillips said there are some areas where technical work is to be undertaken by both sides over the next couple of weeks.

Meanwhile, Jan Kees Martijin, the fund mission's chief, said there has been a mutual understanding on elements of a growth agenda as well as a preliminary timetable for implementing the various structural benchmarks to monitor progress in meeting possible programme objectives.

The government has indicated that it will be pursuing a three-year medium-term agreement instead of another standby loan facility.

A medium-term programme would allow for a longer repayment time.

The government is seeking to have an agreement with the Fund before year end.