Regional Citizenship by Investment (CIP) countries are welcoming positive statements made by the International Monetary Fund (IMF) on the impact of the CIP to the socio-economic structure of participating countries.
The IMF is remaining consistent in recognizing the programme as a significant contributor of revenues and it lauds the programme for assisting in reducing national debts, as well as its contribution to the country’s gross domestic product.
“The Eastern Caribbean Currency Union’s (ECCU) GDP growth accelerated to 3¾ percent in 2018, reflecting buoyant tourism and sizable Citizenship-by-Investment (CBI) inflows, which helped support Dominica’s reconstruction-led recovery from the 2017 hurricane,” the IMF reports in its 2019 Staff Concluding Statement.
The report also stated that “The authorities’ ongoing collaboration on CBI programs’ financial integrity to improve their transparency and governance could help lower negative perceptions about the use of CBI programmes. Such collaboration could support region-wide sustainability of these flows and financial stability.”
Commenting on the statements from the IMF, the CEO of the Investment Migration Councils, Bruno L’ecuyer says that he is delighted that the IMF has recognized CIP programmes as a major socio-economic contributor to developing states.
“The liquidity injection to Caribbean economies creates significant societal and sovereign value. It helps to diversify the economies of those regions; it creates sustainable employment and eases the fiscal and monetary challenges that are faced by sovereign governments the world over,” Lecuyer stated.
From inception, the CIP has been at the centre of many discussions as developed countries debate concerns of the validity of such programmes. These negative global influences can deter potential investors and cause missed economic opportunities for participating countries. When positive counteractions are made by organisations, which are as prestigious as the IMF, it gives encouragement to CIP participating countries.
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