Country Reports
2016
February 2, 2016
Kenya: Request for an Extension of the Arrangement Under the Extended Credit Facility-Press Release; and Staff Report
Description: This paper requests an extension of the 12-month Stand By Arrangement and the Standby Credit Facility Arrangement to obtain enough time to finalize fiscal measures for 2015/16 and implement structural measures under the program. Although at a slower-than-projected pace, the economy continued to expand robustly. Driven by public infrastructure spending, buoyant credit growth, and strong customer demand, real GDP is estimated to have grown by 5.6 percent in 2015. As per the staff's assessment based on recent data, performance under the current program remains broadly satisfactory. Staff fully supports the authorities' request for extensions of the arrangements through March 15, 2016.
February 1, 2016
Bangladesh: Selected Issues
Description: This paper discusses three main issues: bank lending rates, impact of climate change on the economy of Bangladesh, and financial inclusion in Bangladesh. According to international standards, average bank lending rates and interest rate spreads in Bangladesh are not high. Various prudent policies have been implemented to bring interest rates down further. Bangladesh is considered among the top countries in the world for vulnerability to climate change, because of its geographical location and topography. The Bangladesh government has taken a number of initiatives to expand financial inclusion in the country. Financial inclusion helps increase the incomes of financially marginalized members of a society.
February 1, 2016
Bangladesh: 2015 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bangladesh
Description: This paper discusses key issues pertaining to the economy of Bangladesh. Macroeconomic stability has been maintained since the last Article IV Consultation in November 2013. But like other Asian countries, private domestic demand, credit growth, and export growth have been tepid. The economy of Bangladesh has undergone a major transformation in the past two decades. Due to the political stability in this country, public investment is ramped up and constraints on private investment are eased, and growth is projected to accelerate gradually to 7 percent. Policies to safeguard stability, boost private investment, strengthen inclusion, and create fiscal space are emphasized in this paper.
February 1, 2016
United Republic of Tanzania: Third Review Under the Policy Support Instrument-Press Release; Staff Report; and Statement by the Executive Director for United Republic of Tanzania
Description: This paper reviews Tanzania's economic performance under the program supported by the Policy Support Instrument. Macroeconomic performance of Tanzania remains broadly favorable. Quarterly accounts indicate that real GDP grew by 7.2 percent in the first half of 2015, driven by construction, transport, communication, and financial services. The new government that came into power in October 2015 is also committed to further strengthen the economy of Tanzania, although program implementation slowed significantly ahead of presidential election. Revenue and financing shortfalls, together with weak commitment controls, led to the accumulation of further domestic arrears. At 3.3 percent of GDP, the fiscal cash deficit for 2014/15 was below the programmed 3.8 percent.
January 29, 2016
Cyprus: Ninth Review Under the Extended Arrangement Under the Extended Fund Facility and Request for Waiver of Applicability of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Cyprus
Description: This paper discusses the economic recovery of Cyprus. Although progress on the structural reform agenda has been modest, the economic recovery has continued to gain strength. A range of policies have been discussed to accelerate reductions in nonperforming loans to revive lending and boost growth. Discussions also stressed the need to lock in fiscal gains given still-high public debt, and avoid further delays in implementing structural reforms that are necessary to reinvigorate growth and create employment. Despite lingering vulnerabilities in the banking sector and implementation delays in structural conditionality, the macro economy of Cyprus continues to improve. The unemployment and inflation projections have been adjusted downward.
January 28, 2016
Rwanda: Fourth Review Under the Policy Support Instrument-Press Release; Staff Report; and Statement by the Executive Director for Rwanda
Description: This paper discusses key issues and policies for the Rwandan economy. Economic growth in Rwanda has been stronger than expected in 2015. However, growth prospects in 2016 appear gloomy. For example, mining exports have been almost halved in recent months due to low price and low demand. The principal tool to tackle the slump in the economy is continued exchange rate flexibility, accompanied by modest tightening of the monetary stance. Also, there are mid-term policies, for example, export diversification, improved revenue mobilization, and better public financial management that can help achieve sustained high and inclusive growth while strengthening resilience.
January 25, 2016
Republic of Kosovo: First Review Under the Stand-by Arrangement and Request for Modification and Waivers of Applicability of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Kosovo
Description: This paper discusses Kosovo’s First Review Under the Stand-By Arrangement and Requests for Modification and Waivers of Applicability of Performance Criteria (PC). The program is on track. All end-August 2015 PCs and indicative targets were met by comfortable margins. All structural benchmarks for the first review have been met. More broadly, there is strong ownership of structural reforms in the financial sector and in public procurement. The authorities reaffirmed the targets for the fiscal deficit and bank balances for next year and identified measures to achieve these. The IMF staff support the authorities’ request for completion of the first review.
January 20, 2016
The Republic of Moldova: Staff Report for the 2015 Article IV Consultation and Third Post-Program Monitoring Discussions-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Moldova
Description: This 2015 Article IV Consultation highlights that Moldova’s economic growth, at 3.6 percent, came in surprisingly strong in the first half of 2015 and was largely driven by net exports. Reserves fell by about a third between October 2014 and February 2015, but have been stable since. Net outflows in the financial account surged at end-2014, owing to election uncertainty and the banking crisis, but the outflow in currency and deposits tapered off in the second quarter of 2015. The near-term outlook is difficult. The economy is projected to contract by 1.75 percent in 2015, followed by a marginal recovery of about 1.5 percent in 2016. Deep reform is needed in the financial sector.
January 20, 2016
Ghana: Second Review Under the Extended Credit Facility Arrangement and Request for Waiver for Nonobservance of Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Ghana
Description: This paper discusses Ghana’s Second Review Under the Extended Credit Facility Arrangement and Request for Waiver for Nonobservance of Performance Criterion (PC). Program implementation has been broadly satisfactory to date, but the economic outlook remains difficult, and risks are tilted to the downside. All PCs were met at end-August 2015, with the exception of the continuous PC on nonaccumulation of external arrears, which was not observed owing to some small payments delays. The IMF staff supports the authorities’ request for a waiver for this, given the corrective actions that will be implemented to avoid new external arrears. The IMF staff recommends completion of the second review.
January 20, 2016
Malta: 2015 Article IV Consultation-Press Release; and Staff Report
Description: This 2015 Article IV Consultation highlights that Malta’s economy is growing strongly. Real GDP growth has been one of the highest in the euro area since the beginning of the crisis, supported by vibrant domestic demand, large infrastructure projects, and a stable banking sector. Unemployment is at historical lows, and labor participation is increasing. The current account remains in surplus, and the external position is broadly in line with fundamentals. Growth is expected to remain solid in 2016–17, driven initially by domestic demand and later by a gradual recovery of external demand. Inflation is projected to pick up gradually owing to the positive output gap and higher imported inflation on account of the weaker exchange rate.