The International Monetary Fund has urged Antigua and Barbuda to implement additional fiscal reforms, warning that persistent arrears and elevated financing needs continue to threaten long-term debt sustainability despite recent economic gains.
In its latest Article IV consultation released this week, the IMF said the country has made notable progress in reducing public debt and improving its fiscal position, but cautioned that outstanding arrears to Paris Club creditors and domestic suppliers remain a major concern.
“Persistent arrears and elevated gross financing needs are constraining access to longer-term financing and undermining debt sustainability,” the IMF Executive Board stated. Directors urged the government to develop “a credible and comprehensive strategy” to address arrears, expand financing options and create room for resilience-building investments.
The IMF also recommended further revenue mobilization measures to rebuild fiscal buffers and support the government’s fiscal objectives. Among its recommendations were broadening the tax base, reducing exemptions, restraining current expenditure and improving the targeting of social assistance programmes.
Directors additionally encouraged the authorities to strengthen fiscal institutions and improve oversight, transparency and reporting involving government finances and public enterprises.
The report noted that Antigua and Barbuda’s fiscal position strengthened during 2024 and 2025 due to improved tax collection, higher Citizenship-by-Investment Programme inflows, spending restraint and modest increases in capital expenditure. The IMF estimated the country’s 2025 primary balance at nearly 5 percent of GDP.
Public debt declined from 101 percent of GDP in 2020 to an estimated 68 percent in 2025, aided by the stronger fiscal position.
Despite these improvements, the IMF warned that global uncertainty and long-standing debt vulnerabilities continue to pose downside risks to the economy. It also called for stronger cash and debt management practices to help prevent future arrears.
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I hope they actually listens to the IMF, because this administration has gone totally opposite of that mantra for the past 12 years. And just look at the money they spent on this Snap election!
I’ve always said that A&B should be miles ahead of everyone else for the amount of investment money and revenue that has poured into the islands during 2013-2025, but instead we are still struggling with major infrastructure issues and arrears to many.
When they should be shrinking the government, they were instead taking on major acquisitions that were in the hundreds of millions. Alpha, the 1000 Africans, a terrible Liat deal, Jolly beach, airport spending, jetty spending, and massive amounts of money that went into the pockets of these terrible road builders which produces roads without any drainage and longevity.
So I hope these jokers listen, because they spend money like an over paid prostitute.
I hope they actually listens to the IMF, because this administration has gone totally opposite of that mantra for the past 12 years. And just look at the money they spent on this Snap election!
I’ve always said that A&B should be miles ahead of everyone else for the amount of investment money and revenue that has poured into the islands during 2013-2025, but instead we are still struggling with major infrastructure issues and arrears to many.
When they should be shrinking the government, they were instead taking on major acquisitions that were in the hundreds of millions. Alpha, the 1000 Africans, a terrible Liat deal, Jolly beach, airport spending, jetty spending, and massive amounts of money that went into the pockets of these terrible road builders which produces roads without any drainage and longevity.
So I hope these jokers listen, because they spend money like an over paid prostitute.
Good luck with that IMF. This govt does not pay debts.
And this is even more relevant and important after all the election giveaways. The country’s goal must now be to raise more revenue by eliminating exemptions, deductions, and tax holidays, thereby making the tax system more efficient and equitable. The freebies and handouts will have its impact on the nation as a whole and somewhere down the road we can look out and expect increased existing taxes and new taxes
It’s probably a good time for the UPP to be in opposition. If they had won the elections, these devious, dishonest criminals would be organizing their mobs to hit the streets after this IMF article. I can recall that their campaigning started the day following the 2004 elections, after they had been the government for almost three decades consecutively. The IMF is exposing their lies even before they have had time to settle. Hundreds of people have been employed in the public service just weeks prior to the elections and those were exclusively for votes. Millions was spent on their campaign to win an election that was theirs to lose and the picture of the results is now very clear. Antigua and Barbuda, brace yourselves for tougher times.
Does everyone understand what the recommendation to “Expand Tax Base” actually mean?
For all of those who are actually hoping that we accept the recommendations, be careful what you wish for……
@Wish carefully
Nobody with a brain wants to pay taxes, but the reality is that the money to run the country must come from somewhere. If the government keeps increasing their expenditure instead of reducing it what do you think will happen?
It’s not rocket science. These IMF recommendations are really just common sense. The government could have asked any local business person for advice and they would have received the same recommendations.
The ball is in the IMF court. The Government of ANTIGUA needs to develop “a credible and comprehensive strategy” to address arrears to the Paris Club creditors and domestic suppliers, expand financing options and create room for resilience-building investments and address the CLICO/BAICO debacle in order to attract FOREIGN DIRECT INVESTMENTS, stimulate economic activity and confidence in the ECONOMY by paying the CLICO/BAICO POLICYHOLDERS THEIR MONEY.
NOTE: IMF REFER to Delivery of Judgment AGOJ2021/001 – Ellis Richards and Others v Republic of Trinidad and Tobago on the 22 OCTOBER ,2024 by the CARIBBEAN COURT OF JUSTICE the final court of APPELLATE with reference to the BAICO/CLICO insurance company DEBACLE.
The CCJ’s Judgment highlights the failure of CARICOM to put in place a framework to protect and provide equal treatment for all consumers across the Common Market.
The Court observed that despite the provision contained in the Revised Treaty of Chaguaramas (RTC) for Member States to promote the interests of consumers in the Community by appropriate measures, no specific measures existed which were enforceable against TRINIDAD AND TOBAGO. Consequently the Government of ANTIGUA is responsible for paying the policyholders .
To date there are no REGULATONS in place to protect your deposit.(RACKETEERING).
RACKETEERING “ensnared the economy “of ANTIGUA and BARBUDA.
It is imperative that the above issues must be addressed before qualifying for any future loans from the IMF, World Bank and other regional and international financial lending institutions.
Clico crisis: ‘Regional cooperation lacking’
Mar 4, 2009 .
THE REGION has not co-operated enough in terms of how each country regulates its financial matters, and the CLICO crisis has painfully exposed this.
This is the view of Trinidad and Tobago’s Central Bank Governor, Ewart Williams, who admitted this yesterday at the end of the one-day regional leaders meeting between the Eastern Caribbean Currency Union (ECCU), along with Barbados and Trinidad and Tobago at the Hilton Barbados.
“One thing we need to recognise and we need to confess … is that perhaps there has not been sufficient regional co-operation on regulatory matters,” Williams told regional leaders and the media.
He said his own country represented at the meeting by Prime Minister Patrick Manning, who had to leave early to host a press conference on the Summit of the Americas could not escape blame, noting that “sometimes one gets the impression we are going our separate ways, not realising that in the final analysis we are one regional space”.
Williams said if there was one thing the current regional financial crisis should underscore was the need for regional states to work more closely, not only to be able to anticipate crises but to respond in a co-ordinated way anytime another crisis arose.
“There are a number of lessons to be learned from this CLICO issue, and it certainly is need for much more regional co-operation than has occurred in the past,” he added.
Williams pointed out that, even with the best regulation in the world, one could never guarantee that some institution would not face critical challenges either because of exogenous factors or excessively risky behaviour.
He added that the job of the regulator was to seek to get an early-warning system in order to quickly recognise the institution that is finding itself in trouble, and secondly, to have arrangements in place not only to deal with the specific institution but to minimise contagion within the system.
NOTE IMF:The CCJ’s Judgment highlights the failure of CARICOM to put in place a framework to protect and provide equal treatment for all consumers across the Common Market. Also, THE REGION has not co-operated enough in terms of how each country regulates its financial matters and the CLICO crisis has painfully exposed this. This is the view of Trinidad and Tobago’s Central Bank Governor, Ewart Williams.
The Government of Antigua and Barbuda should issue bonds to pay off the CLICO policy holders through the Eastern Caribbean Central Bank. Barbados Government recognized the suffering and took compassion on its people to bring a closure to this long outstanding issue through the issue of bonds.
Gaston Browne thinks he owns ANTIGUA, and the WORLD owes him a living. AMERICANS pay taxes through their nose .I am calling on the IMF to EXERCISE “EXTRA DUE DILIGENCE” before approving new LOANS to the GOVERNMENT OF ANTIGUA, until the GOVERNMENT address arrears to the Paris Club creditors and domestic suppliers, expand financing options and create room for resilience-building investments and address the CLICO/BAICO debacle in order to attract FOREIGN DIRECT INVESTMENTS, stimulate economic activity and confidence in the ECONOMY by paying the CLICO/BAICO POLICYHOLDERS THEIR MONEY.
THE LARGEST CONTRIBUTOR TO THE INTERNATIONAL MONETARY FUND (IMF) is the UNITED STATES of AMERICA which holds approximately 82.99 BILLION SDRs (special drawing rights), accounting for about 17.42% of the total quota shares.This significant shares gives the U.S. considerable influence over the IMFs governance and policy direction. Following the U.S., JAPAN and CHINA are the next largest contributor, each holding between 5.5% and 6.5% of the total quota of SHARES. I am pleading to the US TREASURY SECRETARY Mr. Scott Bissent to intervene. Americans pay TAXES through their nose. GASTON BROWNE thinks the world owes him a living by offering GIVEAWAYS, to maintain POLITICAL POWER by buying votes.GB you will have to Address Arrears, Tighten Spending And Expand Tax Base recommended by the IMF.GB You will have to comply to the IMF policy or go to RUSSIA, CHINA or NORTH KOREA for future LOANS.
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