International Monetary Fund. External Relations Dept.
Following are edited excerpts of a press briefing by IMF Managing Director Horst Köhler on May 25, in Washington, D.C. Thomas Dawson, Director of the External Relations Department, also participated. The full text is available on the IMF’ s website (www.imf.org).
The paper discusses key findings of the Fourth Review Under the Poverty Reduction and Growth Facility (PRGF) for the Kyrgyz Republic. Output is rebounding and inflation remains subdued. However, most end-December 2006 and end-March 2007 structural benchmarks have been missed, partly because of political tensions that slowed the legislature. The 2007 program, which targets 6½ percent output growth and 5 percent inflation, caps the fiscal deficit at 3.1 percent of GDP and maintains a prudent monetary policy. The government plans to implement delayed structural measures under the program, and strengthen external debt management.