IMF has published preliminary findings of 2024 Article IV Mission on Common Policies of Member Countries of the Eastern Caribbean Currency Union (ECCU). IMF has called for Establishing regional standards for CBI programs would help safeguard this critical source of income in the face of persistent international scrutiny.
The IMF has advised Eastern Caribbean countries to set the following benchmarks to safeguard CBI program.Here is a quick summary.
- Deepen Regional cooperation.
- Transparency with due diligence.
- Disclosure of program transparency.
- Regional CBI framework setting minimum pricing benchmarks to avoid race to bottom
“Building on the landmark 2023 US-Caribbean Roundtable Agreement, deepening regional cooperation remains important to safeguarding the CBI programs.” said IMF. This would benefit from common standards on due diligence and enhanced program transparency and disclosure.
A regional CBI framework could also include minimum pricing benchmarks to avoid a revenue-erosive race-to-the-bottom competition and common principles on revenue allocation towards building fiscal buffers and growth-enhancing investment, said IMF.
