The International Monetary Fund (IMF) has issued a stark warning to the government of Antigua and Barbuda, highlighting significant vulnerabilities in the oversight of its state-owned enterprises (SOEs). Following its comprehensive Article IV consultation, the Fund concluded that systemic capacity constraints and a lack of financial transparency within these public entities present a substantial threat to the nation’s fiscal stability.
While acknowledging recent governmental efforts to centralize SOE monitoring within the Ministry of Finance, the IMF mission identified a critical shortfall: the dedicated oversight unit is severely under-resourced and lacks sufficient staffing. This deficiency critically impairs the authorities’ capacity to conduct thorough assessments of the financial health and contingent liabilities of SOEs, many of which are pivotal to economic output and essential public service provision.
A central pillar of the IMF’s recommendations is the imperative for regular and timely financial disclosures from all state-owned enterprises. The Fund emphasized that enhanced reporting mechanisms would fundamentally improve transparency, bolster public accountability, and reinforce the credibility of national economic policy. Officials were advised to prioritize the routine publication of key SOE financial data as institutional capabilities are strengthened.
Further concerns were directed at the country’s strained Supreme Audit Institution, with the IMF underscoring that robust audit functions are a non-negotiable prerequisite for ensuring proper governance of public funds and for containing potential fiscal contagion. The Fund asserted that comprehensive reforms in SOE governance are not merely administrative but are vital for safeguarding central government finances from being destabilized by the financial weaknesses of these enterprises. Such reforms are projected to enhance fiscal transparency, support more informed macroeconomic decision-making, and ultimately reduce fiscal risks.