It's been called "Homegrown 2," government's May 26th 2005 plan to avoid a formal standby agreement with the IMF and implement its own, very similar, slightly less ambitious plan. Well, as we reported last week, government still failed to meet its principal target which was to narrow the deficit to 3% of GDP. On Sunday, July 10th, government ministers announced to the IMF that they expected to end the year with a deficit that was 3.6% of GDP. That's close, and closer than it has been in a long time, certainly a sign of serious improvement but almost doesn't count and with one more missed target from a government that has never caught any of its fiscal targets - is it now time to welcome the IMF? On Wednesday, Information Minister Godfrey Smith said: "not yet."
Jules Vasquez,
Under 'Homegrown 2', we would be unable to meet our target. Is that an indication that the government is inching closer to accepting a formal arrangement with the IMF? Because increasingly one has the opinion that the IFIs and the multi-laterals feel that if you cannot do this yourself we must do it for you. 'Homegrown 2,' I believe, was our last chance to say we can do it ourselves and we have not been able to do it ourselves. Are we getting closer to an IMF situation?
Godfrey Smith, Information Minister
"I wouldn't say that we are, no."
Jules Vasquez,
You wouldn't say that because you don't know or you wouldn't say that..."
Godfrey Smith,
"No because we met with them, you are aware they were here, and perhaps the best way of answering it is that it's not on the table right now. Its not on the table right now."
The IMF's formal report is expected next month.