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Sao Tome and Principe: Sao Tome government makes pledge to IMF to reduce domestic spending [ 2008-07-09 ]


Washington, United States, 9 July – The government of Sao Tome and Principe has made a commitment to the international Monetary Fund (IMF) to contain its expenditure and provide all requested information about its economic policy, according to a document published Tuesday in Washington.

In a “letter of intent,” dated 4 June, sent to the IMF and now made public by the organisation, the Sao Tome government said that in order to control inflation it was “determined to strengthen the implementation,” of its economic policy, “particularly in containing primary domestic spending and on reducing liquidity growth.”

The letter was signed by Raul da Costa Cravid, the minister for Planning and Finance of the previous Sao Tome government and by the governor of the Sao Tome central bank, Luís Fernando Moreira de Sousa.

“The goevrnment will provide all the information requested by the IMF about progress on applying the financial and economic policies and to reach the programme’s objectives,” the letter said.

The government is committed to, “making all efforts to speed up structural reforms,” and reduced the primary domestic deficit of 8.1 percent of GDP, to 5.2 percent this year.

The Sao Tome government has also pledged to start reforms aimed at, “reducing the cost of investing and doing business in Sao Tome and Principe,” which is considered, “crucial to developing the potential of exports and economic productivity.” (macauhub)