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Fiji Time: 4:43 AM on Wednesday 10 February

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Fiji yet to ask IMF for a loan

Thursday, November 26, 2009

THE International Monetary Fund is prepared to give Fiji a loan taking into account the views of its shareholders.

This was revealed by Ray Brooks, who is leading a team of IMF officials visiting the country.

Mr Brooks said no request had been received from Fiji for a loan.

He said that the Fiji's external debt, about 12 per cent of the GDP or about $560million was lower than most countries.

"But Fiji's economy is small and it is vulnerable to shocks," Mr Brooks said.

In accordance with IMF rules, officials meet with member countries annually. The officials also suggested a better way of controlling liquidity such as the issue of Reserve Bank of Fiji bills.

Mr Brooks also supported the corporatisation of public enterprises.

"Increased liquidity in the banking system poses risks of inflation, macroeconomic instability, and a loss of competitiveness.

"The growth outlook remains highly uncertain due to political developments, the fragile nature of the global recovery, volatility of commodity prices, the risk of natural disasters, and the complex structural reform agenda.

End of story

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