Eastern Caribbean Currency Union: Staff Report for the 2006 Regional Discussions
IMF Staff Country Reports, March 6, 2007
Source details
- Canonical URL
- Eastern Caribbean Currency Union: Staff Report for the 2006 Regional Discussions
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Bibliographic details
- Published: March 6, 2007
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451811698.002
Summary of key findings
- Fiscal revenues have improved, but there has been only a modest improvement in the fiscal and debt positions.
- Tax revenues have strengthened with the uptick in economic activity, administrative efforts, and tax reforms.
- The financial system has been resilient, but additional efforts are needed to strengthen the supervisory framework in the face of emerging risks.
- Progress continues to be made in implementing the Financial Sector Assessment Program (FSAP) recommendations, but there is a need to ensure enforcement of the new regulatory framework.
Analysis and implications
- Fiscal stance and public debt
- Improved fiscal revenues have not translated into large improvements in overall fiscal and debt positions.
- Continued vigilance on expenditure and debt-management policies is implied by the modest fiscal gains.
- Revenue mobilization
- Strengthened tax revenues are associated with: the uptick in economic activity, administrative efforts, and tax reforms.
- Strengthening tax administration is a key channel for revenue gains.
- Financial sector resilience and supervision
- The financial system shows resilience to prevailing conditions.
- Emerging risks require additional strengthening of the supervisory framework.
- Implementation of FSAP recommendations is underway, but enforcement of the new regulatory framework remains necessary.
Policy recommendations (implied by findings)
- Sustain and build on tax-administration reforms to lock in revenue gains linked to recent economic upticks.
- Prioritize measures to convert revenue improvements into durable fiscal consolidation to address public debt concerns.
- Strengthen supervisory capacity and enforcement mechanisms to address emerging financial sector risks.
- Ensure timely and effective enforcement of the regulatory changes arising from the FSAP recommendations.
Subject classifications and keywords
- Subjects: Banking; Economic sectors; Expenditure; External debt; Fiscal policy; Fiscal stance; Public debt; Public sector
- Keywords: broad money; Caribbean; CR; ECCU aggregate; ECCU country; ECCU member; ECCU well; exchange rate; Fiscal stance; Global; ISCR; private sector; Public sector; U.S. dollar
Publication and document facts
- Publication title: Eastern Caribbean Currency Union: Staff Report for the 2006 Regional Discussions
- Date on page: March 6, 2007
- Pages: 59
- Volume: 2007
- Issue: 096
- Series: Country Report No. 2007/096
- Stock No: 1ECCEA2007001
- ISBN: 9781451811698
- ISSN: 1934-7685
- DOI: https://doi.org/10.5089/9781451811698.002
- Platform note: IMF eLibrary offers over 25,000 IMF publications in multiple formats.
International Monetary Fund. "Eastern Caribbean Currency Union: Staff Report for the 2006 Regional Discussions", IMF Staff Country Reports 2007, 096 (2007).
Content in this bundle
- _cr0796 — IMF staff report