Country Reports
2023
June 21, 2023
The Gambia: Sixth Review Under the Extended Credit Facility Arrangement, Request for a Waiver of Nonobservance of a Performance Criterion, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for The Gambia
Description: The multiple external shocks that hit the Gambian economy obstructed a rapid recovery in 2022. The implications of the war in Ukraine continue to exert pressures on inflation. These pressures are threatening socio-economic stability in the context of local elections, despite the absence of severe social tensions in recent months. This sixth program review is the last review under the current ECF arrangement. The authorities have requested a successor program with the Fund, which will draw on the authorities’ national development plan as well as on lessons learnt and outstanding challenges from this expiring program.
June 21, 2023
Union of the Comoros: Request for a Four-Year Arrangement Under the Extended Credit Facility-Press Release; Staff Supplement; and Statement by the Executive Director for the Union of the Comoros
Description: Comoros is a small, fragile island state facing significant development challenges, balance of payments needs, a high risk of debt distress, vulnerabilities in the banking system, and governance weaknesses. In recent years, the country was hit by successive shocks including Cyclone Kenneth in 2019, the COVID-19 pandemic in 2020- 21, and fallout from the war in Ukraine in 2022. Two rounds of emergency support under the RCF/RFI of SDR 8.9 million each were approved in July 2019 and April 2020. A Staff Monitored Program (SMP), approved in September 2021, ended with broadly satisfactory performance, helping to establish a track record of policy implementation towards an Extended Credit Facility (ECF) arrangement. Policies under the SMP aimed to address the impact of the COVID-19 pandemic, reduce economic risks, and begin reforms to tackle sources of fragility.
June 21, 2023
West African Economic and Monetary Union: Financial Sector Assessment Program-Technical Note on Anti-Money Laundering and Combating the Financing Terrorism (AML-CFT) Supervision of the Banking Sector
Description: This technical note discusses anti-money laundering and combating the financing terrorism (AML-CFT) supervision of the banking sector in West African Economic and Monetary Union (WAEMU). The decision to focus on the AML/CFT supervision of the WAEMU banking sector was based on the remit of the regional authorities; the importance to the regional economy of a well-integrated and well-functioning banking sector; and the results of money laundering and terrorist financing national risk assessments conducted to date in West Africa, which identify banks as relatively high-risk financial institutions. The AML/CFT off-site supervision program feeds into the risk-rating process but is not itself risk-based and communication with supervised entities is insufficient. Feedback to banks as part of off-site supervision should be enhanced, the on-site inspection methodology should be sharpened, and the risk-based approach should be fully implemented. The observations and recommendations in this report are based on discussions with regional and national authorities and the private sector as well as a review of relevant templates.
June 15, 2023
United States: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the United States
Description: The U.S. economy has proven resilient in the face of the significant tightening of both fiscal and monetary policy in 2022. Consumer demand has held up particularly well, boosted initially by a drawdown of pent-up savings and, more recently, by solid growth in real disposable incomes. Policy restraint is expected to continue to slow the economy in 2023 with a modest pick-up in momentum later in 2024. Unemployment is expected to rise slowly to close to 4½ percent by end-2024.
June 15, 2023
Israel: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Israel
Description: Following a remarkable recovery from the pandemic anchored in strong fundamentals, the outlook is for growth to slow broadly in line with potential, as inflation falls within the targeted range by end-2024. However, the risk balance is tilted to the downside, reflecting, among other things, external risks and the continued uncertainty around the proposed judicial reform.
June 15, 2023
Costa Rica: Technical Assistance Report-Sovereign Asset and Liability Management—Scoping Mission
Description: This technical assistance report on Costa Rica discusses the scoping mission on sovereign asset and liability management (SALM). A comprehensive SALM framework can have significant advantages over separate management of sovereign assets and liabilities. It allows analysis of the financial characteristics of the whole balance sheet of the sovereign, identification of sources of costs and risks, and quantification of the correlations among those sources. An analysis of the balance sheet of each entity in Costa Rica’s broader public sector is the first step in developing a consolidated sovereign balance sheet. The balance sheet composition of each entity, or type of entity, is shaped by the nature of its business, historic policy decisions, and the regulatory regime under which it operates. The SALM framework provides insights into the management of liquidity risk. Committee on Sovereign Assets and Liabilities should establish a framework for cash and liquidity management, including a target for a liquidity buffer broken down between individual entities.
June 14, 2023
Mali: 2023 Article IV Consultation-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Mali
Description: Mali has been hit by several large shocks in the past three years, including two coups d’état, the COVID-19 pandemic, acute security challenges and a cost-of-living crisis triggered by Russia’s invasion of Ukraine. A strict embargo in the first half of 2022 by regional partners restricted the government and private sector’s international economic transactions. Despite that embargo, GDP growth was estimated to be 3.7 percent in 2022. Inflation peaked at almost 15 percent in mid-2022—resulting in an increase in extreme poverty and heightened food insecurity—but has since decelerated, with inflation in March 2023 at 7.5 percent. The BCEAO regional central bank raised its policy rate to 3 percent in February 2023, a 100-basis point cumulative increase since June 2022.
June 13, 2023
Republic of Armenia: First Review Under the Stand-By Arrangement and Request for Modifications of Performance Criteria and Monetary Policy Consultation Clause-Press Release; Staff Report
Description: The Stand-By Arrangement (SBA) is off to a good start, and the economic outlook is generally positive. Real GDP growth reached 12.6 percent in 2022, driven by robust consumption and a surge in inflow of income, capital, business, and labor. Growth is expected to decelerate but remain robust in 2023. Headline inflation fell to 3.2 percent (year-on-year) in April, including due to base effects, lower food inflation, dram appreciation, and monetary policy tightening. Risks to the outlook are elevated, requiring the continuation of strong policies to build resilience further.
June 13, 2023
Guinea-Bissau: First Review Under the Extended Credit Facility, Request for a Waiver of Nonobservance of Performance Criterion-Press Release; Staff Report
Description: Guinea-Bissau is a fragile state facing significant development challenges, including sustaining the recovery from the COVID-19 pandemic, supply disruptions, and the global economic slowdown. The IMF Board approved a three-year ECF arrangement with access of 100 percent of quota (SDR 28.4 million) in January 2023. Building on the 2021 SMP achievements, the program supports a credible fiscal consolidation that ensures medium-term debt sustainability. The structural agenda to strengthen governance and AML/CFT framework will improve the management of fiscal resources and public investment, increase transparency and accountability and counter corruption.