Country Reports
2014
January 13, 2014
Republic of Poland: Review under the Flexible Credit Line Arrangement
Description: On January 8, 2014, the Executive Board of the IMF completed its review of Poland’s qualification for the arrangement under the Flexible Credit Line (FCL) and reaffirmed Poland’s continued qualification to access FCL resources. The Polish authorities have indicated that they intend to continue treating the arrangement as precautionary. The IMF has supported the authorities’ policies with four successive FCL arrangements. The current two-year FCL arrangement for Poland was approved by the IMF’s Executive Board on January 18, 2013, in an amount of SDR 22 billion (about US$33.7 billion). Poland’s first FCL arrangement was approved May 6, 2009, for SDR 13.69 billion (about US$21 billion). Successor arrangements were approved in July 2010 and in January 2011.
January 10, 2014
Uruguay: Selected Issues
Description: This Selected Issues paper examines the performance of Uruguay’s exports, external balances, and relative price movements over the past decade and applies the IMF’s standard external sector assessment tools to Uruguay. The results indicate that Uruguay has made important strides in export performance, including expanding markets shares over the past decade, driven by trade competitiveness gains. The current account deficit has remained well contained and more than fully financed by foreign direct investment over the past decade, notwithstanding external shocks. At the same time, the real exchange rate has appreciated strongly in recent years. Standard IMF equilibrium real exchange rate valuation models also suggest that the Uruguayan peso is slightly stronger than its equilibrium level.
January 10, 2014
Uruguay: Staff Report for the 2013 Article IV Consultation
Description: This Information Annex highlights that in August 2011, the Inter-American Development Bank’s Board of Executive Directors approved the new Country Strategy with Uruguay (2010–15). Sovereign-guaranteed lending under the new program is expected to reach approximately US$1.8 billion, which is considered consistent with Uruguay’s five-year budget. The program includes additional nonreimbursable financing for technical assistance and analytical work. Lending under the previous Country Strategy (2005–09) reached approximately US$1.3 billion. It is expected that all four of the Inter-American Development Bank’s private sector windows will approve loans and technical assistance in the energy, transport, agribusiness, and global services sectors.
January 9, 2014
Zambia: 2013 Article IV Consultation
Description: This Information Annex highlights that safeguards assessments of the Bank of Zambia (BoZ) were completed in June 2004, January 2009, and October 2010. The 2009 assessment concluded that the bank had adequate safeguards in several areas, but confirmed the existence of certain vulnerabilities in the BoZ’s legal framework and financial reporting. The 2010 update report concluded that the BoZ had made progress in implementing safeguards recommendations. The IMF staff noted improvements in the internal audit and internal control mechanisms. Weak statutory independence remains a substantive safeguards concern. Further, Zambia continues to maintain an exchange restriction, which is subject to IMF approval under Article VIII, arising from limitations imposed by the government on access to foreign exchange for the making of payments and transfers for current international transactions.
January 8, 2014
Senegal: Sixth Review Under the Policy Support Instrument and Request for Modification of an Assessment Criterion—Staff Report; Informational Annex; Press Release and Executive Director’s Statement
Description: The Article IV consultation with Senegal was completed by the Executive Board on December 10, 2012. In concluding the 2012 Article IV consultation, executive directors commended Senegal’s satisfactory program implementation despite the challenging internal and external environments. They stressed that although a moderate pickup in growth is expected in the near term, the economy remains exposed to substantial risks. Directors welcomed the authorities’ continued commitment to their program to ensure macroeconomic stability, strengthen the economy’s resilience to shocks, foster higher and sustainable growth, and reduce poverty. Directors noted that, while Senegal still faces a low risk of debt distress, high fiscal deficits and rising debt ratios need to be addressed.
Notes: Also available in French
January 6, 2014
Democratic Republic of São Tomé and Príncipe: 2013 Article IV Consultation and Second Review Under the Extended Credit Facility Arrangement; Staff Report; Informational Annex; Debt Sustainability Analysis; Press Release on the Executive Board Discussion; and Statement by the Executive Director for São Tomé and Príncipe
Description: This Information Annex highlights that the World Bank and the IMF are providing complementary support to help São Tomé and Príncipe strengthen public financial management and make progress toward debt sustainability. The World Bank’s work program is guided by an Interim Strategy Note approved in 2011 that focuses on accelerating sustainable and broad-based economic growth and on strengthening governance, public institutions, and human capital. A new Country Assistance Strategy for 2013–16 will be completed in 2014, following the recent completion of a Joint Staff Assessment Note on the country’s second National Poverty Reduction Strategy. Regarding debt sustainability, the World Bank and the IMF teams prepared a Joint IMF–World Bank Debt Sustainability Analysis update in 2012.
Notes: Also Available in Portuguese
January 6, 2014
Côte d’Ivoire: Technical Assistance Report
Description: This Technical Assistance Report outlines that despite the lack of a suitable legal and regulatory framework, Côte d’Ivoire has made significant progress in its preparations for implementing the new budgeting tools required in the West African Economic and Monetary Union Harmonized Public Financial Framework. The macroeconomic framework and medium-term fiscal framework efforts are being implemented normally. In view of the current state of the overall process, the mission considers it reasonable to plan to have FY2020 as the first operational year for the program budget to replace the current line item budget, subject to effectively implementing the various reforms and measures.
January 3, 2014
Pakistan: Staff Report for the First Review Under the Extended Arrangement Under the Extended Fund Facility, Request for Waiver of Nonobservance of a Performance Criterion and Modification of Performance Criteria
Description: This paper provides an update on economic and policy developments in Pakistan since the issuance of the IMF staff report on December 11, 2013. Gross official reserves were US$3.4 billion as of December 16, 2013, in line with IMF staff projections. The State Bank of Pakistan purchased an additional US$75 million on top of the US$200 reported in the staff report in the foreign exchange spot market as part of the continued effort to build reserves. The exchange rate rebounded slightly and was down some 8 percent against the dollar since the end of June. Headline inflation reached 10.9 percent year over year in November from 9.1 percent in October. This is in line with IMF staff projections and mainly reflects food price increases.
2013
December 31, 2013
Mali: Request for a Three-Year Arrangement under The Extended Credit Facility-Staff Report; Informational Annex; Staff Statement; Press Release on the Executive Board Consideration; and Statement by the Executive Director for Mali
Description: This paper discusses Mali’s Request for a Three-Year Arrangement Under the Extended Credit Facility (ECF). The economy is recovering and inflationary pressures have abated. After a 0.4 percent GDP decline in 2012, Mali’s economy is on the mend. The improvement in the security situation and the resumption of donor assistance has helped revive business confidence. Activity is picking up in the service sectors hardest hit by the crisis (commerce, hotels, and restaurants). The banking sector is showing signs of strain. Resumption of donor support brightens the economic outlook; however, the generally positive outlook is subject to several risks.
Notes: Also available in French
December 30, 2013
Uganda: First Review Under The Policy Support Instrument
Description: This paper discusses Uganda’s First Review Under the Policy Support Instrument (PSI). Growth has continued to recover from the 2011–2012 low. In an environment of declining inflation—recently halted by a drought-driven food price shock—the fiscal stimulus has been successful in driving economic activity, and a planned program of infrastructure investment is expected to boost growth further. The external accounts remain sustainable. The current account deficit declined mainly owing to a temporary slowdown of foreign direct investment-related imports. With satisfactory program performance, IMF staff supports completing the first PSI review and increasing the ceiling on nonconcessional borrowing.