Diario Libre’s editorial reaction to the resumption of the IMF agreement is terse: “Tough guy needed,” it states in reference to President Hipolito Mejia’s nickname “El Guapo.” Economic confidence is a main ingredient in the process of recovery, according to the writer. “Maybe President Hipolito Mejia will prove that he is really a tough guy and show us that he loves this country over and above re-election.”
El Caribe’s main editorial speaks of the “bitter pill” that is the IMF. It reminds readers that this is no bed of roses: “We will have to renegotiate debt repayments with the Paris Club, freeze and reduce public investment, capitalize the banks, increase electricity costs, remove the subsidy from domestic gas, sell state assets and implement fiscal reform in the second half of the year.” While tax reform will be particularly hard to swallow, the projected effects are encouraging: a reduction in the inflation rate to 14% and a negative growth of just -1%. The writer defines this phenomenon as “stagnation with reduced deterioration in employment and economic activity.” He goes on to warn that “there is no room for improvisation” and that the agreement will have to be followed “to the letter,” if it is to avoid a subsequent suspension, something which, according to the columnist, would “provoke a disaster of incalculable proportions.” The final warning deals with the government having to overcome great temptation to increase electorally-motivated public spending. The writer’s advice is that “the best way of winning votes is to govern well, and this includes fulfilling the terms of the IMF agreement. Anything else would be window-dressing (espejismo)”. The IMF’s letter of intent in its entirety is published in this morning’s edition of Listin Diario, El Caribe and Hoy newspapers.