Above: downtown St John’s (CJ Photo)

By the Caribbean Journal staff

The International Monetary Fund’s Executive Board has completed its 10th and final review of Antigua and Barbuda’s performance under its Stand-By Arrangement.

The IMF will now disburse $25.4 million to the country.

The Fund said the aims of the programme had been “largely achieved despite considerable challenges.”

Antigua’s fiscal deficit fell from 18 percent of GDP in 2009 to just over 1 percent in 2012, with the debt to GDP ratio falling from 102.5 percent of GDP in 2009 to 89 percent at the end of last year.

“Additionally, the economic recovery is picking up speed with improvements in the tourism and construction sectors,” the Board said.

But significant challenges remain for the country, the Board said, particularly with the looming expiration of debt relief and upcoming payments due to foreign creditors.

The 36-month Standy-By arrangement was approved in June 2010 for an original amount of $121.9 million.

“The recovery in Antigua and Barbuda is starting to take hold, with tourism and construction returning to pre-crisis levels,” said Nemat Shafik, deputy managing director and acting chair at the IMF. “Nevertheless, risks to the macroeconomic outlook remain, given the dependence on imports and tourism from advanced markets, and vulnerability to natural disasters.”