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Domestic and external arrears reached 13,5% of GDB by end-2003.
An improvement in security and political normalization are indispensable for economic recovery. However, a coherent economic policy framework and transparent and efficient management of public finances are critical to consolidate the gains from the return to stability, and to restore private sector confidence.
Given the uncertainty about availability of external resources and the need to address the problem of large stock of domestic and external arrears, the authorities should target a higher primary budget surplus in 2004 than the currently envisaged 2,8% GDP...
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