Paraguay: Sixth Review Under the Stand-By Arrangement
IMF Staff Country Reports, March 9, 2006
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Bibliographic details
- Authors: Arrangement Paraguay’s Sixth Review Under
- Published: March 9, 2006
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451832488.002
Executive summary
- The program is ending successfully, having achieved the broad objectives of restoring stability and beginning a process of structural reform, albeit with some delays.
- A quick and decisive policy response, articulated in the context of the IMF-supported program, stopped the financial crisis and put the public finances on a sustainable path.
Background and crisis context
- At the time of program approval in 2003, Paraguay had been experiencing one of the most severe financial and budgetary crises.
- The crisis was triggered by the regional crisis of 2002 and exacerbated by weak macroeconomic fundamentals.
Policy response and outcomes
- The IMF-supported program provided the framework for a quick and decisive policy response.
- Outcomes attributed to the program:
- Financial crisis was stopped.
- Public finances were placed on a sustainable path.
- Initiation of a process of structural reform, though some reforms experienced delays.
Subjects and keywords (as listed)
- Subjects: Bank deposits, Banking, Commercial banks, Economic sectors, External debt, Financial institutions, Financial services, Public debt, Public sector
- Keywords: Bank deposits, central bank of Paraguay, Commercial banks, CR, foreign currency, fund staff estimate, GDP ratio, inflation rate, ISCR, Paraguay's Stand-By Arrangement Paraguay, Public sector, SDR, Stand-By Arrangement