Country Reports
2017
February 9, 2017
Australia: 2016 Article IV Consultation-Press Release; Staff Report; Staff Statement; and Statement by the Executive Director for Australia
Description: This 2016 Article IV Consultation highlights that Australia has enjoyed robust growth despite the commodity price and mining investment bust. The moderate impact of the large shocks since 2011 highlights the resilience of the economy and strong policy frameworks. Recent structural reforms have focused on fostering innovation. The National Innovation and Science Agenda includes measures to boost innovation and entrepreneurship in the high-tech sector, including through tax breaks. Legislation is being prepared for key components of the Harper Review, which has identified a number of reforms to boost competition and productivity in the services sectors, and to strengthen competition policy broadly.
February 9, 2017
Australia: Selected Issues
Description: This Selected Issues paper examines the adjustment of Australian labor markets to the recent adverse shocks. Australia’s labor markets were not severely impacted by the global financial crisis and are adjusting smoothly to the sizeable commodity prices bust and mining investment downturn. However, some labor market indicators suggest persistent weaknesses. There does not appear to be a significant increase in structural employment in the wake of the commodity prices bust and mining investment decline. Increased flexibility in average hours per worker has likely moderated employment reduction in downturns and prevented a larger increase in unemployment in the wake of the mining investment downturn. At the same time, elevated underemployment signals additional slack, and is likely weighing down wage growth.
February 8, 2017
Turkey: Financial Sector Assessment Program-Detailed Assessment of Observance of the IAIS Insurance Core Principles
Description: This paper presents an assessment of the observance of IAIS (International Association of Insurance Supervisors) insurance core principles in Turkey. During the last five years, the government of Turkey has made a significant effort to improve regulation and supervision of insurance and to improve adherence to international standards. The efficiency of information reporting, insurer monitoring, and supervision has greatly increased. Solvency tests have been strengthened. Reserving and investment practices have been improved. Improvements have been made in international cooperation and information exchange. However, major regulatory and supervisory challenges remain for Turkey to increase confidence in the sector and benefit from its continued growth.
February 8, 2017
Turkey: Financial Sector Assessment Program-Detailed Assessment of Observance of the Basel Core Principles for Effective Banking Supervision
Description: This paper presents an assessment of observance of Basel Core Principles for Effective Banking Supervision in Turkey. Since the previous assessment conducted in 2011, the Banking Regulation and Supervisory Agency has made several significant improvements to its supervisory framework. There are areas that still warrant improvement, including addressing legal provisions that undermines supervisory independence, providing a deeper risk assessment focus to supervisory inspections and follow up, enhancing the forward-looking component of the assessments, streamlining risk management and corporate governance requirements, strengthening the supervisory enforcement regime, demanding recovery plans, developing group resolution plans, and increasing the ability to act at an early stage to address unsafe and unsound practices.
February 8, 2017
Turkey: Financial Sector Assessment Program: detailed assessment of Observance-Assessment of Observance of the CPMI-IOSCO Principles for Financial Market Infrastructure
Description: This paper presents an assessment of observance of the CPMI–IOSCO (Committee on Payments and Market Infrastructures–International Organization for Securities Commissions) principles for financial market infrastructures in Turkey. The electronic funds transfer system in Turkey broadly observes the risk management framework and liquidity risk management, default management, and operational risk management principles. It partially observes the tiered participation principle. The rest are observed or not applicable. The electronic securities transfer system broadly observes the risk management framework, liquidity, default management, and operational risk principles; the rest are observed or not applicable.
February 7, 2017
Greece: Selected Issues
Description: This Selected Issues paper analyzes insolvency and enforcement issues in Greece. The Greek insolvency and creditor rights framework has improved since the onset of the crisis as a result of successive reforms. Nonetheless, it remains underutilized, fragmented, and distortive, and is not supported by an adequate institutional setting. This is because many of the reforms undertaken in recent years were not part of a coordinated and comprehensive nonperforming loan resolution strategy, but were instead piecemeal and taken without proper stakeholder consultation and impact analysis. Also, the frequent and uncoordinated reforms have undermined legal predictability and certainty. This situation of distress, if left unaddressed, affects enterprises, households and financial and public creditors by preventing investment, credit, and consumption from recovering.
February 7, 2017
Greece: Ex-Post Evaluation of Exceptional Access Under the 2012 Extended Arrangement-Press Release; Staff Report;and Statement by the Executive Director for Greece
Description: This paper discusses Greece’s Ex Post Evaluation of Exceptional Access Under the 2012 Extended Arrangement. Greece has made significant progress in unwinding its macroeconomic imbalances since the onset of its financial crisis. However, extensive fiscal consolidation and internal devaluation have come at a high cost to society, reflected in declining incomes and exceptionally high unemployment. On the basis of Greece’s current policy adjustment program, long-term growth is expected to reach slightly lower than 1 percent, and the primary fiscal surplus is projected to come in at about 1.5 percent of GDP. Downside risks to the macroeconomic and fiscal outlook remain significant, related to incomplete or delayed policy implementation.
February 7, 2017
Greece: 2017 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Greece
Description: This 2016 Article IV Consultation highlights that Greece has made significant progress in unwinding its macroeconomic imbalances since the onset of its financial crisis. However, extensive fiscal consolidation and internal devaluation have come at a high cost to society, reflected in declining incomes and exceptionally high unemployment. Growth is projected to accelerate in the next few years, conditional on a full and timely implementation of the authorities’ adjustment program. On the basis of Greece’s current policy adjustment program, long-term growth is expected to reach just under 1 percent, and the primary fiscal surplus is projected to come in at about 1.5 percent of GDP. Downside risks to the macroeconomic and fiscal outlook remain significant.
February 6, 2017
Haiti: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Haiti
Description: This paper discusses Haiti’s Request for Disbursement Under the Rapid Credit Facility (RCF). The Haitian authorities are requesting emergency financial assistance under the IMF’s RCF to address the urgent balance of payments and fiscal needs associated with the rehabilitation and reconstruction efforts. The authorities are also seeking grants and additional concessional financing from multilateral and bilateral donors to cover the remaining financing needs stemming from the emergency humanitarian and reconstruction efforts. It is anticipated that the assistance provided by the IMF under the RCF will play an important catalytic role in facilitating the provision of these resources to Haiti.
February 6, 2017
Angola: 2016 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Angola
Description: This 2016 Article IV Consultation highlights that the oil price shock that started in mid-2014 has substantially reduced Angola’s fiscal revenue and exports. Growth was estimated to come to a halt in 2016, with the nonoil sector contracting by 0.5 percent, dragged down by the industrial, construction, and services sectors. Industrial production, despite the potential for import substitution, was constrained by shortages of imported inputs owing to limited availability of foreign exchange. The current account deficit, which peaked at 10 percent of GDP in 2015, is projected to be halved in 2016–17, as imports continue adjusting to limited availability of foreign exchange.