The IMF today concluded its Article IV consultation with Belize – and they say government has to watch its wage bill. A press release issued this afternoon reports that discussions with the government focused on how to take advantage of the breathing room provided by the Superbond renegotiation. The IMF recommends what it calls "robust fiscal consolidation," among other measures. They emphasize quote, "(placing) debt and financing needs on a faster downward trajectory," and continue to say that quote, "the focus of fiscal policy should be on spending restraint—especially moderating wage pressures—and reversing the erosion of the tax revenue base."
The release also points to "a high…level of nonperforming loans" – in the commercial banks and urges government to
"(tackle) major impediments to doing business in order to better attract investment, expand exports, and bolster external sustainability." The more complete staff report will be issued in June.
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