Country Reports

June 21, 2013

Vanuatu: 2013 Article IV Consultation

Description: Vanuatu has a comparatively favorable economy and cautious macroeconomic policies that have helped maintain stability and confidence. Financial sector policies also have been appropriately cautious. The economy must maintain low debt in the longer term, but as funding is needed for infrastructure, maintenance, and social services, new revenue measures have to be identified. This revenue could help strengthen the state while maintaining growth potential, especially in the tourism and agricultural sectors. The financing options for new large infrastructure projects have to be assessed.

June 21, 2013

Mali: Request for Disbursement under the Rapid Credit Facility—Staff Report; Informational Annex; Staff Statement; Press Release on the Executive Board Approval; and Statement by the Executive Director for Mali

Description: The security and political crisis in Mali caused a sharp recession along with tax and external financing shortfalls. There has been a sharp expenditure cut and increased recourse to domestic financing, but the accumulation of arrears is prevalent. The first disbursement under the Rapid Credit Facility (RCF) of special drawing rights (SDR) 12 million in February has catalyzed about $508 million of budget support thus far. Resumption of donor support brightens the path to economic recovery, but there remain important financing gaps. Strengthening public financial management is essential for sustained macroeconomic and fiscal stability.

Notes: Also available in French

June 19, 2013

Ireland: Tenth Review Under the Extended Arrangement

Description: Ireland’s strong policy implementation and market conditions have improved macroeconomic indicators to show positive signs. However, an uncertain medium-term outlook could hamper the prospects. Bank supported recovery through timely action on lingering financial sector issues has been identified for sustained growth. Steady progress in fiscal consolidation has to be maintained to support Ireland’s durable return to reliance on market financing. Determined policy implementation of strengthened activation policies and SME supports are also required to support growth and contain unemployment.

June 19, 2013

Union of the Comoros: Fifth Review Under the Three-Year Arrangement Under the Extended Credit Facility, and Request for Modification of a Performance Criterion

Description: The Fifth Review under the Extended Credit Facility (ECF) Arrangement for the Union of the Comoros discusses macroeconomic policies and developments of the country. The performance under the ECF-supported program through end-December has been satisfactory. All performance criteria and indicative targets for end-December 2012 have been met, with wide margins in some cases. Macroeconomic developments have been consistent with expectations under the ECF arrangement. IMF staff has proposed modifications to the structural benchmarks, and recommends completion of the fifth review under the ECF arrangement.

June 19, 2013

Republic of Azerbaijan: 2013 Article IV Consultation

Description: In recent years, the IMF has released a growing number of reports and other documents covering economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with government officials, is published at the option of the member country.

June 19, 2013

Republic of Azerbaijan: Selected Issues

Description: The first paper is on the oil boom in Azerbaijan, which presents a unique opportunity to speed up the development agenda, but at the same time poses challenges to the management of macroeconomic policy. A new fiscal framework to sustain macroeconomic stability and achieve fiscal sustainability is required. The second paper is on Azerbaijan's managed exchange rate policy and the need for an orderly and durable transition to more flexible exchange rate arrangements that can mitigate risks. Even if greater flexibility is not introduced in the short term, improved monetary policy framework needs to be put in place.

June 19, 2013

United Republic of Tanzania: Sixth Review Under the Policy Support Instrument, Second Review Under the Stand-by Credit Facility Arrangement, and Request for Modification of Performance Criteria—Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Tanzania

Description: Tanzania’s economic growth continues to be buoyant. The planned monetary policy tightening is aimed at entrenching gradual disinflation. Executive Directors recommend further enhancing the degree of exchange rate flexibility, and the fiscal deficit reduction envisaged in the draft budget is welcomed. Implementation of the structural reform agenda needs to be reinvigorated. Although the medium-term outlook remains strong, short-term risks to the program are foreseen. There is progress in areas including health, higher education enrollment, and revenue collection, but challenges in poverty reduction remain.

June 17, 2013

Tunisia: Request for a Stand-By Arrangement: Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Tunisia

Description: Tunisia’s macroeconomic situation has recovered from the post-revolution trough, but fiscal and external buffers have been eroded. Prudent management of monetary policy is crucial for short-term macroeconomic stabilization goals and to build external buffers. The challenges arise from social and economic disparities and high youth unemployment. The economic reform agenda appropriately aims at addressing these challenges through short-term stabilization goals while laying the foundations for supporting growth. Executive Directors commend the government’s commitment to maintaining an appropriate fiscal stance while making space for critical spending priorities and repayments of arrears.

Notes: Also available in French

June 14, 2013

Samoa: Request for Disbursement Under the Rapid Credit Facility-Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Samoa

Description: Samoa was hit hard by a strong tropical cyclone, and the authorities are to be commended for their swift response to the resulting disaster. Economic growth this fiscal year is expected to be significantly lower than projected prior to the cyclone, but there are encouraging signs of early recovery. The need is to aim the fiscal strategy at securing sufficient resources while minimizing borrowing. With subdued inflationary pressures and the need to support the recovery, monetary policy should remain accommodative.

June 13, 2013

Portugal: Seventh Review Under the Extended Arrangement and Request for Modification of End-June Performance Criteria—Staff Report; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Portugal

Description: Portugal's program implementation is on track despite difficult economic conditions and significant legal challenges. The markedly weaker economic outlook provides a strong case for recalibrating the program’s fiscal targets. This strong adjustment effort needs to be consolidated by sustained fiscal structural reforms. Continued vigilance is warranted to secure financial stability. A more competitive economy for sustainable recovery requires addressing nominal rigidities forcefully. Program success also hinges on continued external support and effective crisis management policies at the euro area level.