Swaziland faces fragile fiscal situation
2011-01-13 23:40 -Executive Directors of the International Monetary Fund (IMF) agreed with the thrust of the staff appraisal. They noted that a sharp decline in revenue transfers from the Southern African Customs Union (SACU) and excessive growth in the public sector wage bill have set the stage for a fiscal crisis which threatens external stability and the soundness of the financial sector. The immediate policy challenges are to restore a sustainable fiscal position, regain competitiveness, and strengthen financial sector supervision. Directors welcomed the authorities’ plans on all these fronts, but emphasized the need for more ambitious and sustained efforts to revitalize Swaziland’s economic performance.