Under the new arrangement, Curaçao and Sint Maarten will have more power of government and use of their own taxes, while both islands are to establish and share a single supreme court and a central bank. The Dutch government however will remain responsible for defence and foreign policy and have initial oversight over Curaçao finances under a debt relief deal.
HONDURAS | IMF loan. The IMF executive board has formally approved a US$202m loan for Honduras, US$6m more than the initial amount agreed mid September and the first since the coup d'état last June. Comprising two IMF credit lines, the Stand-By Arrangement (SBA) and the Standby Credit Facility (SCF), the 18-month loan is intended to “restore economic stability, strengthen public finances, rebuild investor confidence and support economic recovery," according to the IMF.
The loan is a boost for President Porfirio Lobo, who inherited an economy in dire straits. The IMF said Lobo's economic programme “seeks to restore macroeconomic stability, strengthen public finances, and protect the external position". The Fund highlights as key to these aims the April 2010 tax reform [WR-10-13] which should boost the tax take from L$43.2bn (US$2.28bn) to L$63.1bn (US$3.34bn) in 2011. A second bill is currently in congress which aims to raise a further US$2.6m through clamping down on tax evasion. This is in line with the government's aim of cutting the public sector deficit to 3.7% of GDP in 2010 (down from 6.2% in 2009) and 3.1% of GDP in 2011.
End of preview - This article contains approximately 363 words.
Subscribers: Log in now to read the full article
Not a Subscriber?
Choose from one of the following options
