This evening, the Government issued a statement on the IMF's report - basically saying, "don't blame me, blame the UDP!".
Their statement says, quote, "...the previous government had borrowed some $700 million in the pre-election period of 2019/2020; and that the UDP left behind an economic and fiscal wasteland.
There should be no remaining doubts about what this new Administration inherited. The UDP borrowed for years to meet Government's operating costs, including salaries. Those borrowings have reached 130% of annual GDP or about $4.2 billion. The economy is sputtering. Unemployment is widespread. These conditions are clearly unsustainable…
According to the IMF report, the recovery 'will require a fine balancing act involving ambitious, yet realistic, fiscal consolidation, growth-enhancing structural reforms, and debt restructuring, all aimed at targeting [a] reduction of the public debt to 60 percent of GDP by 2031.'
The Government of Belize's Recovery Plan is just such a fine balancing act..." End quote.
The Prime Minister has warned that if they do not save 80 million dollars in wage cuts and increment freezes, the next step would be an IMF agreement which would result in retrenchment.
