Announcements

Performance under the previous Extended Credit Facility (ECF) arrangement, which expired last July, was good. Macroeconomic stability was restored, fiscal consolidation was stronger than planned, monetary policy was enhanced through a new interest rate-based framework, and supervision was strengthened in the financial sector. Nevertheless, the economy is facing challenges: (i) a weak regional economic environment, (ii) some key reforms have yet to be implemented, particularly in PFM and the banking sector, and (iii) a higher public debt due to the materialization of an ambitious investment program. Accession to the Eurasian Economic Union (EEU) is expected to take effect in May, and parliamentary elections are slated for late 2015. Program objectives. 
IMF Country Report No. 15/113

Medium term growth is expected to moderate to 5 percent, however, a number of risks remain. The

exceptional performance of gold output in 2013 is unlikely to be repeated in 2014. The rest of the economy is

expected to continue expanding at 5–6 percent. A slowdown in the Russian economy, declining gold prices,

and uncertainty created by the recent fluctuations in the exchange rate could adversely affect this outcome.

This paper reports on the results of a pilot exercise on fiscal safeguards conducted by the Fiscal Affairs Department (FAD) during FY2013. The exercise was launched following an independent review of the existing safeguards policy in 2010 in which many Directors encouraged staff to highlight fiscal safeguards risks in cases where a substantial portion of the resources provided by the Fund for balance of payments support is channeled to state treasuries for budget purposes. Pilot fiscal safeguards exercises were conducted for five countries: Antigua and Barbuda, Cyprus, Greece, Ireland, and Kyrgyz Republic.