Government-intensified efforts in 2006 to restore credibility to its payment track record by addressing some long-standing arrears on bilateral debt and curing some other debt arrears; Recent and expected responsible economic policies supporting a stable exchange rate, declining inflation, and consolidation of fiscal accounts; and A strong economic performance and solid growth prospects, reflecting ongoing expansion of capacities in the main export sectors (alumina, gold, oil, fisheries, and timber) and new projects coming on stream. Lingering political and ethnic rivalry, resulting in powerful vested interests and widespread political patronage that constrain political and economic reform; Challenges to privatization to reduce the role of a large state-owned sector that plays a considerable role in the economy and impedes private enterprises. An
