Country Reports
2024
April 8, 2024
Kingdom of the Netherlands–The Netherlands: Financial System Stability Assessment
Description: The Netherlands FSAP focused on three cross-cutting themes—housing, non-banks, and climate risks—while carrying out a comprehensive review of financial sector oversight. The FSAP reviewed the resilience of the Dutch financial system against a set of conjunctural and structural challenges to the economy: the conjunctural challenges included slowing economic growth amid tighter financial conditions, elevated housing prices, large and interconnected nonbanks with major pension reforms underway, and the shift in securities markets trading from London to Amsterdam since Brexit, which raised Amsterdam to systemic importance for the euro area (EA); and the structural challenges focused on climate issues, including climate physical risks associated with roughly a quarter of the country being below sea level, and nature-related transition risks from an uncertain policy path to bring down nitrogen depositions to contain biodiversity loss and comply with European Union (EU) Directives.
April 2, 2024
Republic of Tajikistan: Request for a Twenty-Two-Month Policy Coordination Instrument-Press Release; Staff Report; Debt Sustainability Analysis; and Statement by the Executive Director for the Republic of Tajikistan
Description: Tajikistan’s economic performance remains favorable as remittance inflows and public investment continue to support domestic demand but there is uncertainty over the outlook in the context of heightened geopolitical tensions. Public debt is sustainable but sizeable investment needs constrain fiscal space, and the risk of debt distress remains high due to upcoming Eurobond repayments. Adherence to a deficit target of 2.5 percent of GDP is essential to anchor debt sustainability, while advancing reforms to increase space for priority social and development spending. The authorities have requested a twenty-two-month arrangement under the Policy Coordination Instrument (PCI) to anchor macroeconomic policies and foster inclusive growth. Staff supports the request for the new arrangement. The Letter of Intent and Program Statement set out policies to support the program’s objectives.
March 28, 2024
Colombia: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Colombia
Description: With the sharp growth slowdown in 2023 from an overheated post-pandemic recovery, the Colombian economy has reached more sustainable levels of economic activity and domestic demand, with a marked reduction in domestic and external imbalances owing to appropriately tight macroeconomic policies. Market confidence has improved, but risk premia remain high compared to peers. Meanwhile, progress on the social reforms in Congress has been limited.
March 27, 2024
Angola: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Angola
Description: Angola’s economic recovery in 2021/22 was nearly halted in 2023 by a double shock, as both oil production and prices weakened, and the debt moratorium ended. In response, the authorities took significant fiscal consolidation measures, including by cutting fuel subsidies, and tightened monetary policy. Angola continues to face significant challenges, including debt vulnerabilities and the need to diversify the economy as oil production declines over the long term. The authorities’ reform agenda, including the new 2023–27 National Development Plan, is focused on these challenges.
March 22, 2024
Ukraine: Third Review of the Extended Arrangement Under the Extended Fund Facility, Requests for a Waiver of Nonobservance of Performance Criterion, and Modifications of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Ukraine
Description: Two years of Russia’s war in Ukraine have taken an enormous humanitarian and economic toll. Skillful policymaking supported by external financing has helped maintain macroeconomic stability, and the authorities have advanced important structural reforms. Households and business have continued adjusting to wartime conditions, leading to growth and inflation outturns in 2023 that were better than expected at the Second Review. The decision to open EU accession negotiations and approval of the €50 billion Ukraine Facility are positive developments. However, headwinds include discussions on a new round of mobilization and delayed approval of committed external support, which are both weighing down sentiment.
March 22, 2024
Togo: Request for a 42-Month Arrangement Under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Togo
Description: Growth has been resilient to the shocks of recent years, but Togo is facing elevated food insecurity and terrorist attacks while development needs remain acute. Fiscal deficits and debt have increased, reversing the debt reduction achieved during the 2017–20 ECF-arrangement, eroding fiscal space and buffers to absorb shocks, and contributing to regional vulnerabilities in the West African Economic and Monetary Union (WAEMU). Two undercapitalized banks, one state-owned and the other recently privatized, pose risks to financial sector stability and associated fiscal risks. The authorities are requesting financial support of 200 percent of quota (SDR 293.60 million) under a 42-month ECF-arrangement.
March 18, 2024
Uganda: Fifth 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 Uganda
Description: Economic recovery continues to gain strength following a rapid decline in inflation, favorable agriculture and robust industrial and services activity. Fiscal financing and foreign portfolio flows are facing headwinds amid tight global financial conditions and the passage of the Anti-Homosexuality Act (AHA) in May 2023. The authorities are implementing fiscal consolidation to contain vulnerabilities, maintaining a moderately tight monetary stance in the face of upside risks to inflation and undertaking reforms to improve governance and reduce corruption.