A technical mission from the International Monetary Fund headed by Steven Phillips met last week with the government’s economic team to review advances made in economic policy. The object of the IMF is to assess whether the stand by agreement may be resumed now that the tax reform has been passed. Technical Secretary of the Presidency Temistocles Montas, who participated in the talks, said that the delegation also requested that the government reduce its payroll to the levels of August 2000, which Montas says they are working towards, according to El Caribe newspaper. Montas mentioned that the first printout of the Fernandez administration released by the Budget Department shows that significant progress has been made in this direction. It is expected that further advances can be made so as to resume the agreement by December 2004, reported the Listin Diario.
Central Bank Governor Hector Valdez Albizu traveled to Washington to participate in the Annual Assembly of Governors for member countries of the IMF and World Bank. On the assembly’s agenda is a review of the international economic and financial situation and the search for a system to detect early crisis warnings.
Also, an economic team composed of Montas, Finance Minister Vicente Bengoa and economic advisor Julio Ortega traveled to Washington to meet with IMF executives. Another delegation is scheduled to travel on 6 October to meet with the Paris Club executives.
Montas explained in a press conference that the government intends to put all its arrears with the Paris Club and other financial institutions up to date prior to the discussions regarding the stand by agreement.