Tonga: 2011 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Alternate Executive Director for Tonga
May 19, 2011
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Tonga’s economy showed recovery from recent shocks on the back of stronger tourism activity and fiscal expansion. In spite of generous grant inflows, Tonga remains at “high risk of debt distress” according to World Bank-IMF debt sustainability analysis. Executive Directors stressed that fiscal consolidation is necessary to ensure fiscal sustainability, and encouraged authorities to set up a comprehensive debt-management strategy to limit the credit and currency risks. Directors welcomed the government’s policy to pursue structural reforms to promote private sector activity and restore fiscal sustainability.
Subject: Bank credit, Banking, External debt, Money, Public and publicly-guaranteed external debt, Public debt, Revenue administration
Keywords: Bank credit, CR, exchange rate, Global, government plan, growth momentum, IMF debt sustainability analysis, ISCR, Pacific Islands, private sector, Public and publicly-guaranteed external debt, resource utilization, Tonga energy road map endeavour, Tongan authorities
Pages:
68
Volume:
2011
DOI:
Issue:
110
Series:
Country Report No. 2011/110
Stock No:
1TONEA2011001
ISBN:
9781455264438
ISSN:
1934-7685
