1. This statement provides an update on the status of the prior actions since the issuance of the staff report and the associated correction (www.imf.org). The additional information does not change the thrust of the staff appraisal.
2. All prior actions have been implemented and the program remains broadly on track.
As noted in the staff report (www.imf.org), completion of the second review under the ECF arrangement is subject to the implementation of four prior actions, all of which have now been fully implemented. In particular, the authorities have taken steps to address the fiscal slippages incurred in the third quarter of 2010, including the collection of 0.8 percent of GDP in tax arrears owed by the state-owned telecommunication company and recovery of over 1 percent of GDP in receipts under the economic citizenship program. These revenues were collected in late December 2010 and early January 2011, respectively.
At this stage, staff has no comprehensive information on the fiscal outturn for end-2010. However, available partial data bode well regarding the likelihood of the authorities meeting the modified end-December 2010 performance criteria on net credit to government and the reduction of domestic arrears. The authorities have expressed the view that the two program targets are within reach.
In light of the late recovery of receipts under the economic citizenship program, staff intends to assess in the context of the next review, when full information on the outcome for end-2010 becomes available, if there is a need to amend the end-June 2011 performance criterion on net credit to government to keep the fiscal program on the envisaged path.