26 Oct 2010

Fiji's Reserve Bank Govermor says IMF visit timely

10:53 am on 26 October 2010

Fiji's Reserve Bank Governor, Sada Reddy, has thanked the International Monetary Fund for its timely visits and advice in improving Fiji's macroeconomic situation.

FBC news reports Mr Reddy making the comments at the IMF and World Bank annual general meeting over the weekend.

The IMF gave Fiji 93 million US dollars in financial assistance in the second half of 2009 and Mr Reddy says without the assistance the pressure on Fiji's balance of payments would have been far more serious.

He says the injection boosted foreign reserves and greatly helped restore confidence to Fiji's economy and financial system.

Current foreign reserve levels are now at 630 million US dollars, the equivalent of around 3.8 months of imports.

Earlier this year, the interim government negotiating a loan of up to 500 million US dollars, which was thought to be vital to paying off the country's debt.

Mr Reddy says Fiji is making progress on the IMF recommendations following on-going consultations for a possible Stand-By Arrangement funding support.

These include the removal of interest rate caps on commercial banks' interest rates, relaxation of capital controls, consolidation of government finances and the review of the Reserve Bank of Fiji Act.