Country Reports
2018
April 4, 2018
The Gambia: 2017 Article IV Consultation and First Review Under and Extension of the Staff-Monitored Program with The Gambia-Press Release; Staff Report; and Statement by the Executive Director for The Gambia
Description: This 2017 Article IV Consultation highlights that The Gambian economy has started to recover, following the sharp growth slowdown in 2016. For 2017, economic growth is estimated at 3.5 percent with a better agricultural season and a strong rebound of tourism and trade. With much-improved fiscal discipline and external financial support, the Dalasi has remained stable since April and gross international reserves increased from 1.6 months of import cover at end-2016 to 2.9 months at end-2017. Over the medium term, The Gambia can achieve a more robust growth path. This will require continued strong policy implementation and effective fiscal reforms, including ensuring debt sustainability.
April 4, 2018
The Gambia: Selected Issues
Description: This Selected Issues paper assesses the macrofinancial linkages in The Gambia. Significant macrofinancial linkages persist in The Gambia, first and foremost between the public sector and the banks. Banks are highly exposed to the government through large holdings of short-term government debt, which is a legacy of the large financing needs of the previous administration. In addition, large claims have built up between government and state-owned enterprises (SOEs) on the one hand, and banks and the corporate sector including SOEs on the other. There has been persistent financial distress within the SOE cluster. Weak SOE performance has also led to arrears both to central government and within the SOE cluster.
April 3, 2018
Luxembourg: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Luxembourg
Description: This 2018 Article IV Consultation highlights that the economic growth in Luxembourg reached 2.3 percent in 2017, above the European Union average, and was driven by net exports of financial services and private consumption. Growth is projected at 3.5 percent for 2018, with continued strong job creation, and a temporary slowdown in inflation. In 2017, buoyant corporate tax revenues contributed to a fiscal surplus of 1.4 percent of GDP. The full impact of 2016 tax reform, and a continued need for high public investment are expected to result in a small fiscal surplus over the medium-term.
April 3, 2018
Luxembourg: Selected Issues
Description: This Selected Issues paper provides an overview of the impact of monetary policy on Luxembourg’s macroeconomy. It analyzes the impact on the banking system, including risks that could result from normalization. It also studies the impact of accommodative monetary policy on the investment fund industry. Accommodative monetary policy has contributed to the performance of the Luxembourg economy through some expansion of aggregate demand and through its impact on the financial system. Banks have remained profitable and interest margins stable, while fee and commission income from the fund and other activity has been healthy. The investment fund industry has benefited from various factors such as portfolio rebalancing, search for yield, and other market developments leading to strong inflows into various classes of investment funds, and through strong valuation effects. Scenario analysis suggests that the fund industry could be adversely impacted by sharp interest rate increases and that, because of interconnections, the banking system would also be affected.
April 2, 2018
India: Financial Sector Assessment Program: Insurance Sector Regulation and Supervision-Technical Note
Description: This Technical Note provides an assessment of the recent development of regulation and supervision of the Indian insurance sector. The sector has continued to grow in scale and diversity, surmounting the adverse impact of the global financial crisis, although penetration remains relatively low. Public sector insurers continue to command a majority of the market and life insurance predominates, with about 75 percent of total premiums. Non-life insurance is dominated by motor insurance. Penetration rates are unchanged from 2011 and generally lower than in comparator countries, especially in non-life. Although traditional sale channels continue to predominate, there is increasing diversity in distribution. Risks in life insurance are relatively well spread and in non-life are mainly short-term.
April 2, 2018
Costa Rica: Technical Assistance Report - Financial Sector Stability Review
Description: This Technical Assistance Report discusses the findings and recommendations made by the IMF mission to assist Costa Rica in delivering sound financial sector reform in support of financial stability. It was found that despite progress, the financial stability framework in Costa Rica is not well prepared to handle a potential systemic financial crisis without seriously compromising fiscal resources. Supervision of the financial sector is becoming risk-based and intensive, but it lacks key legal powers, tools, and responsibilities for the effective oversight of institutions and markets. Serious vulnerabilities in the pension sector, the secondary markets, and financial-crisis safety nets need urgent attention.
April 1, 2018
Republic of Mozambique: Technical Assistance Report on Regaining Control Over Budget Execution
Description: The report takes stock of workflows and processes in budget execution in Mozambique and contributes to the authorities in improving their control over the execution of the budget.
March 29, 2018
Islamic Republic of Iran: 2018 Article IV Consultation - Press Release; Staff Report; and Statement by the Executive Director for the Islamic Republic of Iran
Description: This 2018 Article IV Consultation highlights that the real GDP growth of Iran is expected to reach 4.3 percent in 2017/18. In the first half of 2017/18, recovery broadened to the non-oil sector, aided by supportive fiscal and monetary policies and a recovery in construction and services activity. The unemployment rate declined to 11.7 percent in the first half of 2017/18, but remained particularly high for youth and women. Inflation averaged 9.9 percent during the first 11 months of 2017/18 aided by moderation in food prices and stable administered prices. Real GDP growth is expected to ease to 4 percent in 2018/19 and is forecast to average 4.5 percent over the medium-term.
March 29, 2018
Islamic Republic of Iran: Selected Issues
Description: This Selected Issues paper analyzes the development of domestic government securities market in Iran. The Iranian authorities have intensified efforts to develop a domestic government securities market. The Debt Management Office is fully staffed with front-mid-back office functions. An electronic issuance system and effective custody and settlement systems are in place. A public debt law that identifies the Ministry of Economy and Finance’s role as the sole issuer of government securities and requires the preparation and publication of a medium-term debt management strategy, annual borrowing program, and publication of debt and asset data would enhance transparency and provide investors greater assurance about the government’s capacity to repay debt and ultimately lower borrowing costs.
March 28, 2018
Rwanda: Technical Assistance Report-Government Finance Statistics
Description: This Technical Assistance Report discusses the findings and recommendations made by the IMF mission to assist authorities in Rwanda in aligning the compilation and dissemination of government finance statistics (GFS) in accordance with the Government Finance Statistics Manual 2014. It was recommended that the Ministry of Finance (MINECOFIN) should officially assign GFS compilation duties to a specific subset of its staff. The mission believes that it is important for the MINECOFIN to make a “permanent” assignment of GFS compilation and dissemination duties so that the work can evolve systematically. In the mission’s view, the Macroeconomic Policy Unit appears to be well placed to perform this task. However, the unit should be allocated appropriate resources to take on the responsibility.