NNA – The Business leaders association (RDCL) and the International Monetary Fund (IMF) held on July 05 a productive meeting to review the Article IV report recently issued.
During the deliberations, the RDCL and IMF deep dived the economic indicators, and assessed recommended fiscal/monetary policies. The RDCL agreed with the IMF reportrsquo;s assessment about the lack of progress by relevant authorities, made in implementing the recommendations and prerequisites needed to recreate trust forward .
RDCL appreciated the mentions in the Article IV report among which the openness of the IMF on the solutions presented by the private sector to restructure the financial sector, the importance of introducing good governance at the central bank level, the reduction of the public sector size, the reforms needed to be done with the SOEs, specifically the ones recommending to transfer the management of these assets to the private sector, the restructuring of the budget, the social security, and the banking sector, the importance of establishing an independent judiciary system and most importantly the fight against corruption and the informal parallel economy that is growing unfortunately at unprecedented levels.
The RDCL mentioned that the private sector and nbsp;the IMF recommendations are remaining so far on paper, without being implemented by authorities! Meanwhile, the authorities are discussing the budget of 2023 (very late).
The RDCL stressed that the fear of the private sector is an increase in taxes on what remains of the legal private sector and the abiding citizens, before the necessary reforms take place! Therefore the RDCL reiterated their stance on the importance and urgency of reforming the public sector and improving compliance to ensure tax fairness and address the growing informal economy, starting with the upcoming budget. The RDCL insisted that focusing tax increases exclusively on the legal private sector without reforms will destroy what remains of the legal private sector, hence reducing the fiscal plate of the state.
The RDCL also stressed that the size of the GDP estimated in the Article IV report, should be assessed further. It called on the Central Administration of Statistics to release official estimates of GDP, as the latest available are only for 2020, and no official data is available since that date.
Discussions were marked by a spirit of cooperation, and the RDCL emphasized the importance of transparent dialogue and mutual understanding to conclude a deal as soon as possible with the IMF, the only door for reinstating trust and kick starting the economy.nbsp;
The successful meeting between the RDCL and the IMF marks a significant step in the ongoing partnership between the two organizations. Moving forward, the RDCL expressed their commitment to continuing the dialogue and working collaboratively to advocate for the reforms outlined.
The RDCL appreciated the commitment of the IMF to remain dedicated to assisting in achieving reforms to protect the private legal sector and achieve economic objectives and enhancing the well-being of its citizens.
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