Country Reports
2013
July 2, 2013
Islamic Republic of Mauritania: Sixth Review Under the Three Year Extended Credit Facility Arrangement and Request of Nonobservance of Performance Criterion—Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Islamic Republic of Mauritania
Description: This paper discusses the Islamic Republic of Mauritania’s Sixth Review under the Three-Year Extended Credit Facility Arrangement and Request of Nonobservance of Performance Criterion. Mauritania’s current account deficit has been significantly widened due to higher infrastructure and mining-related imports. Planned projects are concentrated in agriculture, energy, and infrastructure—all three sectors with large investment needs and in line with Poverty Reduction Strategy Paper priorities. Nonrenewable resources are playing an important role in the economy, but the fiscal policy formulation does not incorporate the challenges associated with resource revenue exhaustibility and volatility and, therefore, does not prevent pro-cyclical fiscal policy.
Notes: Also available in French
July 2, 2013
Islamic Republic of Mauritania: Poverty Reduction Strategy Paper
Description: This paper examines the Islamic Republic of Mauritania’s adoption of its third Poverty Reduction Strategy Paper (PRSP) action plan, covering the medium term (2011–2015). Poverty reduction as the ultimate objective of all of the country’s economic social and institutional development policies has informed the context in which the third action plan is being implemented. The safe drinking water supply rate reached 52 percent nationally. In urban areas, the rate of access to private water main connections was 35 percent although it varied significantly from town to town. During the first year of implementation of the PRSP III, significant progress was made with actions targeting good governance and capacity-building in all areas of governance.
Notes: Also available in French
July 1, 2013
France: Financial Sector Assessment Program—Technical Note on Crisis Management and Bank Resolution Framework
Description: This technical note discusses key findings of the assessment of Crisis Management and Bank Resolution Framework for France. The findings reveal that the crisis preparation, crisis identification, and crisis management processes in the supervisory authority (ACP) are comprehensive and well structured. Without having a formal U.S.-type “PCA-regulation,” the ACP identifies weak banks and requests appropriate remedial measures to be taken. The ACP also actively uses the Basel II Pillar 2 instrument to require add-ons on an individual-bank basis to the minimum regulatory capital requirements, reflecting the assessed riskiness of a bank.
July 1, 2013
France: Financial Sector Assessment Program—Detailed Assessment of Observance of Insurance Core Principles
Description: This paper discusses key findings of the Detailed Assessment of Observance of Insurance Core Principles for France. The assessment reveals that insurance regulation and supervision are still predominantly carried out using a Solvency I approach. The insurance sector remained resilient through the recent global financial crisis. A thorough approach to assessing insurer technical provisions and their coverage by admissible assets has led to financially sound insurers. Individual French insurance companies have not needed any government or industry support.
July 1, 2013
France: Financial Sector Assessment Program—Detailed Assessment of Observance of IOSCO Objectives and Principles of Securities Regulation
Description: This paper discusses key findings of the Detailed Assessment of Observance of International Organization of Securities Commissions (IOSCO) Objectives and Principles of Securities Regulation for France. The assessment reveals that France exhibits a high level of implementation of the IOSCO principles. The legal framework is robust and provides the Autorité de Marchés Financiers (AMF) and the Autorité du Contrôle Prudentiel (ACP) with broad licensing, supervisory, investigative, and enforcement powers within their respective competences. There are robust arrangements for cooperation between the two authorities.
July 1, 2013
France: Financial Sector Assessment Program—Technical Note on Housing Prices and Financial Stability
Description: This technical note examines housing prices and financial stability in France. The note highlights that sharply rising housing prices have caused concerns about mortgage credit risk and the stability of the financial system, particularly if the macroeconomic environment were to deteriorate further. France’s housing market proved resilient during the crisis, declining by about 9 percent from its precrisis peak before rebounding since mid-2009 to surpass its precrisis peak. This resilience has reflected a confluence of fundamental, macroeconomic, financial, and asset allocation factors that have caused the demand for housing to remain well in excess of supply.
July 1, 2013
France: Financial Sector Assessment Program—Technical Note on Stress Testing the Banking Sector
Description: This technical note discusses key findings of the Stress Testing of the Banking Sector for France. Stress testing analysis was used to capture the most salient risks for banks. The findings support the current focus of Autorité de Contrôle Prudentiel (ACP) to require banks to build up adequate capital and liquidity buffers. They suggest that the banking system would be able to meet regulatory ratios under most scenarios. Solvency stress tests indicate that banks could cope with deterioration in the economic environment while phasing in capital requirements under Capital Requirements Directive IV.
July 1, 2013
France: Financial Sector Assessment Program—Detailed Assessment of Observance of Basel Core Principles for Effective Banking Supervision
Description: This paper discusses key findings of the Detailed Assessment of Observance of Basel Core Principles for Effective Banking Supervision for France. The assessment was completed as part of a Financial Sector Assessment Program (FSAP) undertaken by the IMF during 2012. The assessment reveals that France has a well-developed public infrastructure supporting effective banking supervision. It has a complete system of business laws, consistently enforced. Accounting standards for listed companies and other consolidated accounts have been prepared to International Financial Reporting Standards (IFRS), as adopted by the European Union.
July 1, 2013
France: Financial Sector Assessment Program—Detailed Assessment of Observance of CPSS/IOSCO Recommendations for Securities Settlement Systems and for Central Counterparties
Description: This paper discusses key findings of the Detailed Assessment of LCH.Clearnet SA Observance of the Committee on Payment and Settlement Systems/International Organization of Securities Commission (CPSS–IOSCO) Recommendations for Central Counterparties. The findings reveal that LCH.Clearnet SA displays a high level of observance of the CPSS/IOSCO recommendations. It has a sound, coherent, and transparent legal basis. It has developed an adequate risk-management framework to address financial and operational risks. LCH.Clearnet SA governance arrangements and composition of Boards and management are well defined and adequately staffed.
June 27, 2013
Ghana: 2013 Article IV Consultation
Description: This 2013 Article IV Consultation highlights that economic growth in Ghana continued at a robust pace of 8 percent in 2012 amid rising fiscal and external imbalances. Fiscal pressures came to the fore in a mounting public sector wage bill and costly energy subsidies that pushed the deficit close to 12 percent of GDP. The growth momentum continues into 2013, with increased oil production projected to keep overall GDP growth close to 8 percent. Non-oil growth is likely to decelerate, however, as a result of energy disruptions and high real interest rates.