On fiscal policy, the IMF urged authorities to pursue ambitious tax reforms, simplify the tax system, and strengthen tax administration and compliance.
The Directors also underlined the importance of rationalizing subsidies, prioritizing growth-enhancing investments, improving public financial and investment management, and strengthening social safety nets to promote inclusive growth. Improving the financial viability of energy state-owned enterprises was also marked as a priority.
The IMF stressed the urgent need for a credible banking sector reform strategy in line with international standards.
This should include a comprehensive asset quality review of systemic and state-owned banks, presumption of undercapitalization, clearly defined fiscal support and legally sound restructuring and resolution plans.
Emphasis was also placed on strengthening risk-based supervision, governance and balance sheet transparency.
On monetary policy, Directors agreed that it is necessary to maintain a tight policy stance to rebuild foreign exchange reserves and reduce inflation.