Prudent macroeconomic management, strong growth, low inflation, small fiscal deficit, and public debt have helped The Bahamas attain the highest standard of living in the Caribbean. Executive Directors supported the government's goals of balancing the budget and reducing debt. They encouraged the use of market-based monetary policy and tax administration. They emphasized the need of a macroeconomic policy framework, international reserves, and a strong financial framework. Directors appreciated the performance of the financial system and also for modernizing the regime to combat money laundering and terrorism financing.