Country Reports
2018
December 17, 2018
Cambodia: 2018 Article IV Consultation-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Cambodia
Description: Cambodia has made significant progress towards the Sustainable Development Goals (SDGs) due to years of impressive economic growth and reforms. Income growth has outpaced peers, poverty has declined, and the economy has begun to gradually diversify. At the same time, elevated financial sector vulnerabilities, development spending needs, and governance weaknesses pose challenges for further advancing sustainable growth and development.
December 14, 2018
Peru: Financial Sector Assessment Program-Detailed Assessment of Observance - Basel Core Principles for Effective Banking Supervision
Description: The overall quality of Peru’s supervisory approach and regulation of the banking sector is strong. Some areas for enhancement remain. A key area that needs strengthening relates to the powers and regulatory framework for consolidated and cross-border supervision. The FSAP undertook a full graded Basel Core Principles (BCP) assessment of the essential criteria. The 2011 BCP update assessment found that bank regulation and supervision was of high quality and no principles were scored non-compliant or materially non-compliant. The current assessment shows that the SBS has maintained and further enhanced its regulatory and supervisory framework.
December 14, 2018
Cote d'Ivoire: Fourth Reviews Under the Arrangement Under the Extended Credit Facility and Under the Extended Arrangement Under the Extended Fund Facility, and Request for Modification of Performance Criteria-Press Release; Staff Report; Debt Sustainability Analysis; Supplementary Information; and Statement by the Executive Director for Côte d’Ivoire
Description: The ruling party won about half of the seats in the October 2018 municipal elections, but the political landscape is becoming more complex and uncertain, with the competition among the three traditional parties intensifying ahead of the 2020 presidential elections. The economic outlook remains strong, underpinned by robust consumption and investment, but risks are tilted downside. Growth is projected to stay around 7½ percent in 2018–19. Inflation is expected to remain subdued.
December 13, 2018
Islamic Republic of Mauritania: Second Review Under the Extended Credit Facility Arrangement, and Request for Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Islamic Republic of Mauritania
Description: Program implementation has been satisfactory. Macroeconomic stability has been maintained, external debt has been stabilized, and several reforms have been launched to modernize economic institutions and the policy framework. Growth is expected to accelerate this year to 3½ percent, supported by FDI and public investment. While the outlook is positive owing to sustained growth in non-extractive sectors, the international environment is less favorable than during the first review. Higher oil import prices and lower commodity export prices weigh on the external and fiscal positions; the economy remains dependent on commodity exports; and debt vulnerabilities and poverty remain high. Downside risks related to global economic developments and regional security are elevated. On the upside, development of the offshore gas field could generate large revenues from 2022 despite short-term costs.
December 13, 2018
Benin: Third Review Under the Extended Credit Facility Arrangement and Request for Waiver of Nonobservance of Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Benin
Description: The growth momentum continues, driven by strong port activity, high cotton production, and the recovery of the Nigerian economy. The 2019 budget will bring the commitment-based fiscal deficit below the WAEMU convergence criterion of 3 percent of GDP next year. Program implementation remains satisfactory with all end-June 2018 quantitative performance criteria (QPCs) met; but the continuous QPC on non-accumulation of new domestic arrears was breached over March-June due to an institutional oversight.
December 12, 2018
Republic of Armenia: Financial Sector Assessment Program-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Armenia
Description: The Armenian banking sector is recovering from the 2014 economic slowdown, aided by additional capital injected by shareholders, several mergers, and improved regulation and supervision. However, banks, including the largest ones, are vulnerable to external shocks because high levels of dollarization expose them to FX-related credit and liquidity risks. These risks can be mitigated with the adoption of a stressed debt service to income ratio limit, the gradual introduction of reserve requirements in foreign currency for liabilities denominated in foreign currency, and the adoption of the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) in domestic currency and in United States dollars (USD). The introduction of the capital surcharge for domestic systemically important banks is also needed.
December 12, 2018
Togo: Third Review under the Extended Credit Facility Arrangement and Request for Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Togo
Description: Economic activity shows incipient signs of stabilization in some sectors while it remains weak in others. The fiscal consolidation efforts continued and the domestic primary balance at end-June 2018 improved by 0.3 percent of GDP relative to the same period in 2017. Inflation has turned positive at 0.9 percent in September 2018 and is expected to remain below the WAEMU convergence criterion of up to 3 percent during the program period. The government is revisiting its strategy on the two public banks and is relaunching their privatization. The socio-political tensions have abated but the situation remains uncertain, particularly in light of the upcoming elections at end-2018.
December 12, 2018
Mali: Tenth Review under the Extended Credit Facility Arrangement and Request for Waiver of Nonobservance of a Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Mali
Description: Mali is a fragile state, struggling with insurgency and making efforts to build peace. The 2013–18 ECF-supported program has broadly succeeded in achieving its objectives under difficult circumstances. The program helped stabilize the economy in the context of persistent insecurity, changing terms of trade, and adverse weather conditions. The economy has continued to perform well in 2018, with robust economic growth and low inflation, but poverty and inequality have remained high. The near-term outlook for sustainable growth is subject to downside risks from unfavorable security conditions.
December 11, 2018
Islamic Republic of Afghanistan: Fourth Review Under the Extended Credit Facility Arrangement, Request for Modification of Performance Criteria, and Request for Extension and Rephasing of the Arrangement-Press Release; and Staff Report
Description: Background: The three-year arrangement under the Extended Credit Facility (ECF) for SDR 32.38 million (US$44.9 million, or 10 percent of quota) was approved on July 20, 2016. The first three reviews under the ECF were completed in May 2017, December 2017, and May 2018. The arrangement supports the government’s reform agenda—as outlined in the Afghanistan National Peace and Development Framework (ANPDF)—to lay the foundation for higher growth and job creation and aims to catalyze continued support from donors. Context: Violence swelled ahead of and during the October 20 parliamentary elections, but voter turnout was relatively strong despite severe operational challenges. Peace efforts have intensified, with the participation of the United States and regional powers. The poor security situation and electoral year uncertainties are undermining confidence and growth, and present risks to program implementation. A key focal point for this year is the Geneva Ministerial Conference on Afghanistan taking place on November 27–28, 2018. The conference aims to review reform progress, showcase the National Unity Government’s achievements, and secure continued donor support.
December 11, 2018
Republic of Belarus: Technical Assistance Report-Work of Mission on Development of Potential in Area of Government Finance Statistics
Description: In consultation with the Republic of Belarus Ministry of Finance (MoF), a government finance statistics (GFS) technical assistance (TA) mission from the IMF’s Statistics Department (STA) visited Minsk from November 13 through 24, 2017. The main objective of the mission was to take stock of the progress in government finance statistics in the Republic of Belarus and to provide assistance to the MoF in improving the quality of statistical data. Government finance statistics provide a comprehensive conceptual and accounting framework suitable for the analysis and evaluation of fiscal policy, and in particular the performance of the general government sector of any country. One of the biggest advantages of the introduction of GFS methodology into budgeting is the achievement of consistency in budgeting, financial reporting, and statistics. Use of the same terminology by those engaged in budgeting, reporting, and statistics should ensure common understanding among all of the stakeholders. The comparability of numbers, tables, and accounts is significantly enhanced, which means an improvement in productivity and in the timely availability of data.