IMF praises Lesotho's financial development strategy
The IMF agrees with the Lesotho authorities that the time is right to strike a new balance between policies for economic stability and inclusive growth, said IMF mission chief David Dunn during a visit to the African country.The IMF agrees with the Lesotho authorities that the time is right to strike a new balance between policies for economic stability and inclusive growth, said IMF mission chief David Dunn during a visit to the African country.
He praised the country's financial development strategies and urged the government to continue "to make progress" with ongoing reforms to improve the business environment and other measures to enhance Lesotho's international competitiveness.
"The mission welcomes the authorities' new Financial Sector Development Strategy (FSDS), which calls for the sound expansion and deepening of financial services. Implementing the FSDS would improve access to finance to private businesses, helping private sector development," he said.
He added that the IMF welcomes efforts to ease the business registration process, streamline the construction permit system, adopt regulations for the credit rating law, and modernize the insolvency proclamation, which would bolster collateralized lending.
Lesotho's economy has performed well in recent years, despite a severe fiscal and balance of payments shock and adverse weather conditions for agriculture, according to the IMF.
However, although economic growth has been robust, unemployment remains high and poverty is still widespread, especially in rural areas.