Baldwin Spencer, prime minister of Antigua. Spencer's administration says it will defend the US$8b lawsuit filed July 13, but insists that the opposition ALP must get involved. Stanford's invest-ments in the island occurred under the ALP administration. - File
Plagued by a huge debt that has hugely affected its ability to access financing, Antigua and Barbuda has commenced discussions with the International Monetary Fund (IMF) to work out an assistance package.
The debt is now at existing EC$3.1 billion (US$1.14 billion).
A statement from the Ministry of Finance said a team from the IMF arrived in St John's Monday and several meetings were held throughout the day as both sides examined what type of assistance the Fund could provide at this time.
"The decision to engage with the IMF was based on the Govern-ment's desire to realise fiscal and debt sustainability, as well as to access resources to promote social protection and economic growth," Finance Minister Harold Lovell said.
Opposition unconvinced
But the Government's decision to go to the IMF has not gone down well with the main opposition Antigua Labour Party (ALP) which said it was unconvinced that an IMF package would be good for the people of this country.
Over the past weeks, the ALP has twice led thousands through the streets of the capital in protest against the Government's decision to approach the IMF for assistance.
"When you look at the track record (of the IMF), we definitely have more than sufficient reason to conclude that there will be some serious austerity measures that would be recommended by the IMF and when we look at recent pronouncements that were made by the IMF, we do not believe that the IMF has changed fundamentally," ALP Chairman Gaston Browne said.
Tax increases ahead
Meanwhile, Opposition Leader Lester Bird said that the IMF would insist on the repayment of foreign debt as a priority and that, as a result, the Government "will have to widen personal income tax; expand the government sales tax; increase company tax and property tax; and sell off state-assets."
The administration in St John's has responded saying the ALP played a part in putting the country into its current debt situation.
Prime Minister Baldwin Spencer says more than half of the debt represents arrears racked up by the opposition when it ran the country.
The talks between the Government and the IMF are scheduled to continue throughout this week.
- CMC