Financial Times

IMF team in talks on aid disbursements

A team from the International Monetary Fund (IMF) is holding talks with the government under the annual Article IV consultation to review the progress of the reform programme and decide on disbursing the next tranche of funds.

Jeremy Carter, the senior resident IMF representative here, said the team from its headquarters were meeting cabinet ministers, other political parties, business and labour leaders, and other lobby groups during their visit.

"They will conduct the first review under the Poverty Reduction Growth Facility and the financial arrangements concluded in April," he said. "The objective is - if everything is alright - to disburse the next tranche of funds under the financial arrangement."

IMF aid disbursements are tied to the government achieving performance targets set at the time the facility is granted. Disbursements were suspended under the previous government when it failed to meet the performance criteria.

Carter said further opening up of the capital account would be among the subjects discussed when the talks focus on the foreign exchange management law.

"You need to have a strong financial sector - you must not rush into it," he said. "But there are some areas of the capital account that we believe is worthwhile liberalizing."