Country Reports
2013
June 12, 2013
Republic of Belarus: 2013 Article IV Consultation and Fourth Post-Program Monitoring Discussions
Description: The economic model of Belarus is increasingly untenable, resulting in poor policy outcomes. Strong and predictable macroeconomic policies are essential to promote stability. A further reduction in directed and subsidized lending operations is needed. The National Bank of the Republic of Belarus (NBRB) should tighten liquidity and stand ready to take further measures to ensure disinflation. Banking supervision has improved, but high foreign exchange lending growth poses risks. Strong structural reform remains critical to achieving higher sustainable growth. The Development Bank should be used to facilitate broader financial sector reform.
Notes: Full text also available in Russian.
June 6, 2013
Brazil: Technical Note on Consumer Credit Growth and Household Financial Stress
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 6, 2013
Brazil: Technical Note on Stress Testing the Banking Sector
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 6, 2013
Brazil: Technical Note on Macroprudential Policy Framework
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 6, 2013
Kiribati: 2013 Article IV Consultation—Staff Report; Informational Annex, Debt Sustainability Analysis, Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Kiribati
Description: Kiribati is one of the poorest and most remote microstates in the Pacific. It is highly dependent on volatile fishing license fees, remittances, and donor assistance. The challenge is to implement fiscal and structural reforms to help ensure fiscal sustainability, promote private sector development, and increase its resilience to external shocks. Fully using its marine potential beyond fishing license fees will help to improve fiscal revenues and growth opportunities. More generally, private sector development is critical for both increasing growth and reducing fiscal pressures.
June 5, 2013
Bangladesh: Second Review Under the Three-Year Arrangement Under the Extended Credit Facility and Request for Modification of Performance Criteria—Staff Report, Staff Supplement and Statement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Bangladesh
Description: Bangladesh has made substantial progress in strengthening macroeconomic conditions and structural policies. Strong vigilance, guided by adherence to programmed deficit targets, is needed, however. The strengthening of debt management practices now under way will reinforce debt sustainability. Restrained monetary policy has brought down inflationary pressures and supported the rebuilding of reserves, and there is a need for regulatory reforms to address vulnerabilities in the banking system. A comprehensive review of foreign exchange regulations would provide a firm guide to increase the attractiveness of Bangladesh to foreign direct investment (FDI) and portfolio investment flows.
June 5, 2013
Greece: Selected Issues
Description: Rigidities in Greece’s product and labor markets leading to economic imbalances and the significance of reforms to these markets are played out in the first paper. The second paper describes the problems, progress to date, and agenda for work in Greece’s revenue administration and how this effort has been achieved primarily by raising tax rates to high levels and reducing wages, pensions, and other spending. The third paper is on the need for designing and implementing debt restructuring frameworks as well as improving banks’ loan resolution practices so that Greece’s banks are positioned to support the economic recovery.
June 5, 2013
Greece: Ex Post Evaluation of Exceptional Access Under the 2010 Stand-By Arrangement
Description: Greece adopted an ambitious program to eliminate fiscal and current account imbalances, regain competitiveness, maintain financial stability, and boost growth and employment. While significant fiscal adjustment occurred, critical objectives such as regaining confidence and restoring growth were not achieved. The program lacked in better tailoring of IMF lending policies, avoiding undue delays in debt restructuring, attention to the political economy of adjustment, and parsimony in fiscal structural reforms. The importance of streamlining the Troika process and effective risk-sharing arrangements within the euro area has been stressed by Executive Directors.
June 5, 2013
Greece: Third Review Under the Extended Arrangement Under the Extended Fund Facility—Staff Report; Staff Statement; Press Release; and Statement by the Executive Director for Greece
Description: The short-term objectives are being met, but medium-term targets and sustainability have to be worked on. The impressive fiscal adjustment evident since the crisis erupted is continuing. The Executive Directors commend the Greek government’s determination to focus on overdue spending cuts. However, progress on improving tax administration and public administration reforms needs to be started in earnest. There is concern about debt relief undermining the payment culture. Reforms to open up the economy to competition should be stepped up. The macroeconomic and debt outlook must remain under close review.
June 5, 2013
Greece: 2013 Article IV Consultation
Description: Fiscal expansion after euro accession led to a buildup of large economic imbalances, and a program to make fiscal policy and the fiscal and debt position sustainable was initiated. However, the program saw opposition from the outset and structural reforms stalled, which unsettled the investment climate. The Greek government’s determination to push ahead with reforms has seen progress in fiscal adjustment and perseverance of the financial sector. However, the social cost of the recession has been very high, and the current program can only succeed if policymakers address the root causes.