Sao Tome, Sept. 20, 2024 (Lusa) - The prime minister of Sao Tome and Principe, Patrice Trovoada, has said that negotiations with the International Monetary Fund have progressed and that he hopes to "close the deal" in October, but argued that "the lives of Sao Tomeans will only change" with private investment.
"Things are better than they were a few months ago," said Trovoada, in response to Lusa on the sidelines of celebrations for the 50th anniversary of Sao Tome's Women's Day, which was being marked on Thursday. "We're making progress on the accounts, the figures, the measures and the understanding we want. As I said, we want an agreement - there will be an agreement - but for us it will be [an] agreement that we consider to be the least painful possible for the people."
The prime minister admitted that "some measures will have to be taken" since "there are major imbalances that need to be rebalanced" but assured that everything will be done according to "what is bearable for the people of Sao Tome."
Since taking office in December 2022, the Sao Tome government has been negotiating an extended credit programme with the IMF, but so far the parties have not reached an agreement.
The prime minister has said on several occasions that the lack of an agreement with the IMF "has conditioned the execution of the public investment programme and continues to negatively impact net international reserves," the level of imports of goods and services, and "ultimately the economic activity" of the archipelago.
In June, after an IMF technical team finished a mission to Sao Tome, Trovoada said he would not accept the proposal to increase the price of fuel and electricity in exchange for the extended credit agreement so as not to worsen social conditions in the archipelago.
On Thursday, he said that he would be travelling to the US in the near future and foresees a new round table or meeting with the IMF to define the programme so that it can be approved by the IMF's Board of Directors in October.
However, he noted that one of Sao Tome's major problems "is employment" and warned that while the IMF may allow the country's traditional partners to give a little more money, these partners "have been supporting Sao Tome and Principe for decades" and questioned the impact of this aid.
"This is like a patient we're keeping alive artificially, but he's not healthy," emphasised the Sao Tome prime minister. "So only private investment can make our economy healthier, allow us to export much more."
JYAF/ARO // ARO.
Lusa
