Country Reports
2023
August 25, 2023
Chile: Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Chile
Description: Following the overheating in 2021–22, the economy is approaching the end of its adjustment cycle towards more sustainable growth and lower inflation in a challenging external environment. The authorities are implementing very strong policies to preserve macroeconomic stability. The government has reform ambitions to raise tax revenues, reduce inequality, reform pensions and health care, and foster a green economy but is encountering strong resistance in a fragmented Congress.
August 23, 2023
Côte d'Ivoire: Report on Observance of Standards and Codes—FATF Recommendations for Anti-Money Laundering and Combating the Financing of Terrorism
Description: Côte d’Ivoire has achieved progress in countering money laundering and terrorist financing (ML/TF) since the 2012 mutual evaluation, particularly with the adoption of the Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Law in 2016, the drafting of a national risk assessment (NRA) and a national strategy, as well as awareness-raising among various actors regarding AML/CFT issues. The effects of this endeavor have begun to materialize, notably with the new impetus provided to judicial investigations and proceedings related to financial crime. As long as they are sustained, strengthened, and based on a deeper understanding of risks, these reforms should bear more fruit in the coming years. Nevertheless, certain structural elements, such as the prevalence of cash and magnitude of the informal sector to the country’s economy, the cross-border nature of offenses, as well as corruption, continue to challenge the effectiveness of the AML/CFT regime.
August 23, 2023
Côte d'Ivoire: Detailed Assessment Report for Anti-Money Laundering and Combating the Financing of Terrorism
Description: This paper presents detailed assessment report on anti-money laundering and combating the financing of terrorism (AML/CFT) in Côte d'Ivoire. The authorities have identified high-risk sectors and key domestic ML/TF threats. However, they have failed to demonstrate a detailed understanding of ML and TF methods used in practice. The authorities have taken measures in response to certain risks, which are deemed high, particularly with regard to corruption or the real estate sector, but these measures are still recent and have only addressed the risks to a certain extent. The Economic and Financial Crimes Tribunal and some investigative authorities make use of financial intelligence and other information in an adequate manner, in order to develop evidence and identify criminal proceeds. The country’s geographical position, importance in the regional economy, and developed and open financial sector, all render it particularly exposed to ML/TF risks. Despite the well-established existence of transnational crime, the international aspects of investigations remain underutilized, except when the investigation is launched by foreign authorities.
August 21, 2023
The Bahamas: Technical Assistance Report-Operationalizing the New Bank Resolution Framework and Amended Deposit Insurance Legislation—First Mission
Description: The Bahamas has made considerable progress in developing the infrastructure needed for an effective bank recovery and resolution regime. Following recommendations of the 2019 FSAP, the new legislation brought into force in September 2020 provides a reasonably comprehensive legal framework for the resolution of banks, including triggers, legal powers, and safeguards. The amendments to the Protection of Depositors Act in 2020 clarify the DIC’s role and responsibilities within the country’s financial safety net and have expanded its membership to include not only commercial banks, but also credit unions.
August 21, 2023
The Bahamas: Technical Assistance Report-Operationalizing the New Bank Resolution Framework and Amended Deposit Insurance Legislation—Second Mission
Description: The CBOB has made good progress in implementing recovery plans for the domestic systemically important banks (DSIBs). Building on this progress, the mission recommends that the CBOB provide the DSIBs with structured feedback on their initial recovery plans and, based on lessons learned from the pilot, provide to all banks and credit unions updated industry-wide guidance that sets out high-level expectations on the content for recovery plans. Engagement with home supervisory authorities of foreign-owned banks should also be strengthened, with a view to seeking to ensure that parent-bank recovery plans adequately address recovery actions for subsidiaries in the Bahamas.
August 7, 2023
Bangladesh: Technical Assistance Report-Residential Property Price Index Mission
Description: A technical assistance mission was conducted from February 26 to March 2, 2023, to assist the Bangladesh Bank with the ongoing development of a Residential Property Price Index (RPPI). The mission was funded by the Data for Decisions (D4D) Fund. A previous RPPI mission visited Bangladesh in December 2019 and the Bangladesh Bank have been working on developing the RPPI since 2017. The mission completed the following tasks: (i) increased the capacity and knowledge of staff on the methods for RPPI compilation, (ii) conducted an analysis of existing and potential data sources for property price statistics, (iii) identified improvements to the existing compilation methods, (iv) identified impediments to the implementation of the new reporting template for financial institutions and non-banks, and (v) recommended further improvements in the medium to long-term.
August 4, 2023
Guatemala: Technical Assistance Report-Fiscal Transparency Evaluation
Description: [This report is only available in Spanish] This report provides an updated assessment of fiscal transparency practices in Guatemala, aligning with the Fiscal Transparency Code (FTC) established by the International Monetary Fund (IMF). In 2016, Guatemala underwent an evaluation, which revealed that it had 4 practices rated as advanced, 4 as good, 17 as basic, and 10 practices fell below the basic level, with the practice concerning public-private partnerships not being rated. In the current evaluation, Guatemala demonstrates significant progress in fiscal transparency. The number of practices rated as basic or below has decreased to 17, while practices rated as good and advanced have increased to 19. Comparing with other Latin American countries and emerging market economies that have undergone the same evaluation, Guatemala's scores are similar. Presently, Guatemala has 7 practices at the advanced level, 12 at the good level, 11 at the basic level, and does not meet the minimum requirements of the CTF in 6 practices. The strongest areas of fiscal transparency practices lie in Pillar I, "Fiscal Reporting," and Pillar III, "Fiscal Risks." However, in Pillar II, "Fiscal Budgets and Forecasts," the scores are comparatively lower.
August 1, 2023
Rwanda: Technical Assistance Report-Public Investment Management Assessment–PIMA and Climate PIMA
Description: This Technical Report discusses the results of the Public Investment Management Assessment (PIMA), including the Climate module, for Rwanda, undertaken in 2022. The Rwandan government has placed significant emphasis on public investment to support the country’s economic transformation, and investment has accelerated in recent years. The country performs well in the design and effectiveness of its public investment management institutions, in planning and coordination, but has mixed results in allocation and implementation, as evidenced by the stalling and abandonment of some projects. Infrastructure development is also a crucial component of the country's climate change adaptation strategy. Rwanda's Nationally Determined Contribution outlines measures to address climate change, with an estimated cost of over USD 5.3 billion (55 percent of GDP) by 2030. Rwanda already performs strongly in climate change-aware planning, with a well-designed and effective system for integrating climate change considerations in national and sectoral planning processes. However, there is room to enhance project appraisal and selection processes by incorporating climate change mitigation and adaptation criteria. Many important documents and data remain unpublished, such as the Fiscal Risk Review, project costs, and selection criteria, reducing accountability and scrutiny.
July 31, 2023
Brazil: 2023 Article IV Consultation-Press Release; Staff Report; Staff Supplement; and Statement by the Executive Director for Brazil
Description: After a rapid recovery from the pandemic, economic activity is converging towards potential levels. Headline inflation has rapidly declined from last year’s peak, but core inflation remains elevated, and inflation expectations are above target. To address cost-of-living concerns, the new government expanded the 2023 budget envelope, while identifying measures to recover tax revenues. The authorities are also embarking on an ambitious agenda to steer a sustainable, inclusive, and green economy.