WASHINGTON, USA: On the eve of his first visit to the Eastern Caribbean Currency Union region, IMF Deputy Managing Director Agustin Carstens said that “while the challenges that the countries face are very deep, in many aspects there has been progress.” In an interview with Reuters, Carstens noted that progress had occurred despite challenges stemming from the effects of natural disasters, the erosion of trade preferences for sugar and bananas, and a huge debt burden. For instance, Dominica had shown a “remarkable turnaround in its performance” and the IMF wanted “to praise the work that the people of Dominica have done”. Carstens said that the IMF was also “pleasantly surprised” at how well Grenada was recovering from the effects of Hurricane Ivan. He added that Grenada own fiscal efforts, combined with support from donors and creditors, had put the country’s economy “back on track” and growth exceeding 6 percent could be expected next year. Antigua and Barbuda is the first stop on Carstens’s trip, which he said was intended to “fine tune” the IMF’s collaboration with the ECCU countries. “Part of it is to enhance my knowledge of the region, to listen, and that will help us in the institution to reshape our interaction with the countries,” Carstens said. On his next stop at St. Kitts and Nevis, Carstens is scheduled to participate in a discussion on the policy challenges facing the ECCU countries presentation at the ECCB on December 7. Previewing this discussion in his interview with Reuters, Carstens said the IMF and other international institutions are working with the countries to put “together a plan to address the issue of competitiveness, to be able to attract foreign direct investment, and induce further development of the private sector in areas that would give them other growth opportunities. We’re preparing them to embrace fully globalization.” The IMF official noted that the institution’s Executive Board had just approved a new “exogenous shocks facility” to provide financial assistance expeditiously to countries facing a balance of payment needs as a result of declines in commodity prices, natural disasters, or other shocks. Carstens said he would make the governments in the ECCU region aware that “such a facility exists” as part of a range of financing and other help that is available from the IMF. He noted that the IMF’s engagement with the ECCU countries in recent years has been “mostly through policy advice and a very frank dialogue.” Reprinted from Caribbean Net News caribbeannetnews.com