By the Caribbean Journal staff

The International Monetary Fund’s Executive Board has completed its first review of St Kitts and Nevis’ economic performance under a 36-month Stand-by Arrangement.

The completion of the review allows the immediate disbursement of $17.6 million, bringing total disbursements under the arrangements to $51.6 million.

“St Kitts and Nevis’ economy is estimated to have remained flat in 2011 after two years of contraction, but the outlook remains favorable supported by Foreign Direct Investment-related construction projects and an improvement in tourism activities,” said Naoyuki Shinohara, deputy managing director and acting chair of the Executive Board in a statement. “Uncertainty regarding the global economic recovery, however, highlights increasing downside risks. Steadfast implementation of policies under the Fund-supported programme will be important going forward.”

All quantitative targets through the end of September 2011 have been met, according to the fund.

“The fiscal target was met by a comfortable margin, and the authorities were successful in reducing budget expenditure arrears to below the levels at the end of December 2010,” he said.

Shinohara also said the government had made progress on structural reforms, and on negotiations for restructuring the country’s public debt.

For more on St Kitts and Nevis, read Caribbean Journal’s recent interview with Foreign Minister Sam Condor.