The government would be taking on board the International Monetary Fund’s advice on ways to strengthen the resilience of banks, the Finance Ministry said yesterday.
On Wednesday, the IMF said the outlook for the economy was strong and growth was expected to remain solid this year and in 2017, driven initially by domestic demand and later by a gradual recovery of external demand.
Inflation was projected to pick up gradually due to the positive output gap and higher imported inflation on account of the weaker exchange rate.
In a statement issued yesterday, the Finance Ministry noted that the government was pleased that its efforts to continue strengthening the country’s fiscal governance were in line with the IMF’s recommendations.
“We take note of the IMF’s recommendation to take policy actions in the financial sector so as to continue strengthening the resilience of banks. We will also continue directing efforts towards raising potential output and thus increasing the productive capacity of the Maltese economy.”