22 Feb 2012

IMF urges structural reforms in Fiji

2:59 pm on 22 February 2012

The International Monetary Fund has called for the military government of Fiji to relax emergency measures in preparation for a promised 2014 election, in a rare IMF foray into domestic politics.

In its annual report on Fiji's economy, the IMF says its mission team in the country found the economy needed structural reforms and a concrete plan ahead of the planned elections.

The report says removing structural impediments to growth is critically important and relaxing the emergency regulation and establishing a clear path toward the election would be key measures to boost investor confidence.

The interim Fiji government lifted public emergency regulations last month but then gave itself new public order powers.

The IMF executive board says in an accompanying statement to the report that Fiji faces a preponderance of negative risks, given political uncertainties, structural weaknesses and the fragile global economy.