Country Reports

December 20, 2013

Turkey: Staff Report for the 2013 Article IV Consultation

Description: This 2013 Article IV Consultation highlights that the Turkish economy achieved a welcome reduction of imbalances in 2012. In 2013, growth has accelerated significantly on the back of a monetary and fiscal policy stimulus. The economy is projected to expand by 3.8 percent this year, with private consumption and public investment as the main contributors. With this rotation back to domestic demand-led growth, the current account deficit is widening again, while inflation remains above target. The authorities are on track to meet their 2013 budget targets, despite rapid spending growth. Executive Directors have expressed satisfaction that the Turkish financial system is generally sound.

Notes: Chart

December 20, 2013

Rwanda: Seventh Review Under the Policy Support Instrument, Request for a Three-Year Policy Support Instrument and Cancellation of Current Policy Support Instrument

Description: This paper discusses Rwanda’s Seventh Review Under the Policy Support Instrument (PSI), Request for a Three-Year PSI and Cancellation of Current PSI. Progress under the PSI has continued to be satisfactory. Except for the ceiling on nonconcessional borrowing (NCB), all quantitative assessment criteria were met. All indicative targets and structural benchmarks were also met. The nonobservance of the NCB ceiling came about when the authorities allowed Rwandair to contract a new US$50.7 million external loan in July. Presently, the IMF staff recommends a waiver on the basis of the authorities’ commitment to prevent any reoccurrence.

December 19, 2013

Jordan: Second Review Under the Stand-By Arrangement, Request for Waivers of Nonobservance of Performance Criteria, and Modification of Performance Criteria

Description: This paper discusses Jordan’s Second Review Under the Stand-by Arrangement, Request for Waivers of Nonobservance of Performance Criteria (PCs), and Modification of PCs. Program performance is broadly on track. The central bank rebuilt reserves, which are now at a comfortable level and well above what was programmed. The national electricity company’s losses were in line with the program through June, but the end-September PC is estimated to have been missed because a temporary interruption in gas flows required more expensive fuel imports. The IMF staff strongly supports the authorities’ plans to seek higher grants.

December 19, 2013

Ireland: Twelfth Review Under the Extended Arrangement and Proposal for Post-Program Monitoring

Description: This paper discusses Ireland’s Twelfth Review Under the Extended Arrangement and Proposal for Post-Program Monitoring. Ireland has pulled back from a severe banking crisis with the support of the EU-IMF arrangements and broader European initiatives. Though below initial projections, growth has exceeded the euro area average and indicators suggest a recovery may be emerging. Banking reforms have supported financial stability. The crisis and bank support led to a substantial rise in the deficit and a sharp increase in public debt. On the basis of the progress made under Ireland’s program, the IMF staff supports the authorities’ request for completion of the twelfth review.

December 19, 2013

Liberia: Second Review Under the Extended Credit Facility Arrangement and Request for Waiver of Nonobservance of Performance Criteria and Modification of a Performance Criteria

Description: This paper discusses Liberia’s Second Review Under the Extended Credit Facility (ECF) Arrangement and Request for Waiver of Nonobservance of Performance Criteria and Modification of a Performance Criterion. Program performance has weakened relative to the previous review, as well as the former ECF-supported arrangement. Three out of six performance criteria and two out of four indicative targets were missed. The IMF staff supports the completion of the second review of the ECF arrangement and the authorities’ request for waivers of performance criteria and modification of the domestic financing performance criterion.

December 19, 2013

Côte d’Ivoire: 2013 Article IV Consultation and Fourth Review Under the Extended Credit Facility Arrangement

Description: This 2013 Article IV Consultation highlights that Côte d’Ivoire is recovering from a long period of economic stagnation and political conflict that culminated in the post-election crisis of end-2010 and early 2011. The conflict caused real per capita income to fall by more than 40 percent from its 1978 peak level. Following the post-election crisis, the new government started the process of sociopolitical normalization, and quickly put in place an economic recovery program. Growth is projected to reach 8.7 percent in 2013, while inflation is expected to remain below the regional convergence criterion of 3 percent.

Notes: Also available in French

December 17, 2013

Rwanda: Poverty Reduction Strategy Paper

Description: This paper focuses on Economic Development and Poverty Reduction Strategy (EDPRS) 2013–2018 for Rwanda. Ownership of the EDPRS by a wide range of stakeholders at national level has been a key factor of success. The EDPRS 2 has integrated inclusiveness and sustainability as driving factors in elaborating the strategy. Community-based solutions, working closely with the population, have made possible fast-track and cost-effective implementation and increased demand for accountability, in education with the 9YBE construction of classrooms, the Crop Intensification Program in agriculture, and community-based health care programs.

December 17, 2013

Rwanda: Poverty Reduction Strategy Paper-Joint Staff Advisory Note

Description: This Joint Staff Advisory Note focuses on the Poverty Reduction Strategy Paper for Rwanda. Rwanda’s second Economic Development and Poverty Reduction Strategy (EDPRS 2) covers FY2013/14–2017/18. It builds on the lessons learned in the implementation of the EDPRS 1. Among the positive lessons, the authorities point to the importance of ownership of the strategy including aid-financed programs, home-grown initiatives, community-based solutions, and an adequate institutional and legal framework. The overall objectives of the EDPRS 2 are to accelerate growth and further reduce poverty, including extreme poverty.

December 17, 2013

Malawi: Technical Assistance Report on the Price Statistics Mission

Description: This paper discusses the findings of a Technical Assistance Report on the Price Statistics Mission to Malawi. It was concluded that more than 80 percent of the country unit values selected as the price indicators for the macroprudential indicators did not provide credible indicators of pure price change over time. The compilation of the indexes could therefore not be undertaken until import and export price surveys had been initiated. Plans were developed for the conduct of an intensive program of field interviews to initialize the quarterly price collections. Training was provided on index concepts, compilation methodology, and price survey design and implementation.

December 15, 2013

Indonesia: Staff Report for the 2013 Article IV Consultation

Description: This 2013 Article IV Consultation highlights that in recent years, the Indonesian economy has benefited from a supportive global economic environment, namely in the form of a rise in commodity prices and strong growth in emerging markets. However, these conditions have been less supportive lately, resulting in slowing export growth. Combined with rising net oil and gas imports, the current account shifted into a deficit in 2012. Nonetheless, real GDP growth in 2012 remained strong at 6¼ percent, aided by domestic conditions, while inflationary pressures stayed low. Going forward, the near-term outlook reflects the more challenging global environment that Indonesia faces.