ST JOHN’S, Antigua : It wasn’t clear up to press time yesterday whether government was in receipt of the cash, but the International Monetary Fund (IMF) sent out a release saying its executive board had approved an “immediate disbursement of an amount equivalent to SDR 13.5 million (about US $20.3 million).”
SDR refers to special drawing rights. In simple terms, it is IMF’s currency, with 1 SDR equalling about 1.5 USD.
The news comes after the IMF completed its fourth, fifth, and sixth reviews under what’s known as a stand-by arrangement (SBA). With the latest pay out, Antigua & Barbuda would have received about US $61 million.
The release signals improved relations, as the IMF had suspended payments after the government rejected its advice that it let ABI Bank fail.
Minister of Finance and the Economy Harold Lovell announced the dilemma as he presented the 2012 budget speech in December 2011.
The release of funds under the agreement, however, doesn’t mean that the IMF is completely pleased with the government’s financial performance. The release said that the IMF has temporarily relaxed some requirements at the request of government.
“These waivers were granted on the grounds of temporary or minor deviations from the programme objectives and the corrective measures undertaken by the authorities,” the statement said.
The initial arrangement, signed in June 2010 for about US $128.0 million, required that all debt payments be kept current and that no new debts be incurred.
In his December 11, 2011 appearance on OBSERVER Radio’s The Big Issues, Lovell said government had borrowed the money from local commercial banks.
Yesterday, the IMF said that part of the reason it was inclined toward leniency is that Antigua & Barbuda had managed to reduce the gap between the amount of money it spends on obligations to other countries and what it earns from trade with them.
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