IMF ready to help with challenges

DOMINIQUE STRAUSS-KAHN, the International Monetary Fund’s (IMF) managing director, met with Caribbean leaders in Montego Bay, Jamaica, for the 31st Regular Meeting of CARICOM.“Caribbean countries have an opportunity to put an end to the negative cycles of high debt and low growth that have been affecting their economies, and set forth towards a path of long-term, sustainable growth,” Strauss-Kahn said.The Caribbean has been significantly affected by the global crisis, Strauss-Kahn noted in his presentation to the 15 heads of state and officials from the region, the first ever participation of an IMF boss in the CARICOM meeting. High debt burdens and tight financing left Caribbean leaders with little room for fiscal stimulus, while the room to lower interest rates has been constrained by fixed exchange rate regimes. In some countries, strains have appeared in the financial sector, and the proposed tightening in international standards for offshore financial centres will also pose challenges.“This reality implies that the road to a sustainable recovery will need to be tailored to your own specific circumstances,” Strauss-Kahn said. “And, as in the advanced economies, it will be critical for those of you facing high fiscal and debt vulnerabilities to commit to comprehensive medium-term fiscal reforms, and to implement decisive adjustment efforts,” he added. Strauss-Kahn emphasised that the IMF was ready to help countries tackle the economic challenges and push ahead with reforms in their economies.  (PR)