The Tribune

By KHRISNA VIRGIL

Tribune Staff Reporter

kvirgil@tribunemedia.net

PRIME Minister Perry Christie told reporters yesterday that observers from the International Monetary Fund (IMF) have been informed that his administration has committed itself to fiscal prudence.

The government, Mr Christie said, expects those efforts, after a period of time, to arrest the negative slide into debt. Mr Christie said his government is still committed to crime fighting initiatives as elevated levels would affect the economy.

“We are not going to compromise our efforts to fight crime,” he said. “Whatever it takes to bring crime under reasonable control, we are going to take the steps. To me it is a necessary feature of every day life in the Bahamas. Without controlling crime we are not going to have the kind of economy we need.”

The IMF representatives are in the Bahamas for an Article four consultation that reviews the country’s overall economy and financial health.

Mr Christie said the IMF will also consult with Ministers, Leaders of the Opposition and other stakeholders which include Central Bank officials, Chamber of Commerce representative and the private sector.

An interim overview is expected by Friday, with a final report to come at the end of the IMF’s two-week consultative process. The IMF will also present their findings to the entire cabinet.

While economies globally are challenged, State Minister of Finance Michael Halkitis said the IMF will comb the Christie administration’s plan to ensure a more sound financial footing for the country. He said the government is at the same time ensuring a balance in their efforts.

“We can’t just take an axe and begin to slash,” he said. “Yes we recognise the fiscal restraints, but we also recognise that there are some responsibilities that the government has.

“If you tend to cut spending too much, it tends to choke off any sort of financial recovery.

“Our formula, which we believe is a balanced formula, is to contain expenditure as much as we can, to improve the revenue through revenue administration, tax reform (and) trying to find some new streams of revenue. We have to concentrate on growing the economy.”

An immediate reversal in the economy will not be seen, Mr Halkitis said. Evidence of a full turn around should be noticeable within two or three years.