"No comment at this time," that's what a government representative had to say about our story last night on preliminary reports from the IMF. Vaughan Gill, Government's Director of Information told us that the process with the IMF is ongoing and government will have no comment until the report is final which will be in June at the earliest.
As we reported last night, a brief internal report prepared for and by government analysts after consultations with the IMF paints a dire and urgent picture of the Belizean economy. In the report, it states that, in the IMF's opinion, "GOB's current fiscal stance is unsustainable and would result in a collapse of the fixed exchange rate regime during 2006." The IMF recommends a sharp increase in taxes and a decrease in spending to correct this, adjustments that the IMF recommends should take place as early as July 1st.
As we noted, the Musa administration has been known to ignore the directives of the IMF and it may again choose to do so. But the alarm now being raised by the fund analysts show growing impatience with this approach.
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