IMF warns Czechs social reforms are crucial

21.11.2006 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

PRAGUE, Nov 21 (Reuters) - The Czech Republic must implement structural reforms to contain the rising costs of pensions and healthcare, a mission of the International Monetary Fund (IMF) said on Tuesday during a visit to Prague.

The IMF also said in a statement that the 2007 budget should not add demand stimulus to the already booming economy, and that a cautious pace of interest rate hikes by the central bank was appropriate.

"Taking advantage of the current good times to advance fiscal consolidation would be desirable," the statement said.

"A strong political commitment to fiscal consolidation is necessary to address looming fiscal pressures from social spending and age related expenditures." ((Reporting by Marek Petrus, Writing by Alan Crosby; prague.newsroom@reuters.com; Reuters Messaging: alan.crosby.reuters.com@reuters.net; +420 224 190 477))

Keywords: ECONOMY CZECH IMF

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