Country Reports
2022
September 12, 2022
Chile: Financial Sector Assessment Program—Technical Note on Systemic Liquidity
Description: Chile is characterized by a highly interconnected financial system, which presents risks and opportunities for the development of liquidity markets. On the one hand, the large domestic non-bank financial sector (pension funds, mutual funds, insurers) creates a large investor base for domestic debt securities, fostering the development of these markets. On the other hand, the non-bank financial sector is vulnerable to shocks which may have significant spillovers to funding markets and to the banking system.
September 12, 2022
Chile: Financial Sector Assessment Program—Technical Note on Crisis Management and Bank Resolution
Description: Chile has a large and well-developed financial system, compared with the rest of Latin America. The market is well integrated into the global financial system, with Chilean firms investing in foreign financial assets, either directly or via institutional investors, and foreigners participating in the Chilean market.
September 9, 2022
Ireland: Financial Sector Assessment Program-Technical Note on Macroprudential Policy Framework and Tools
Description: Ireland is a small open economy that is part of a monetary union and has a major financial system. Within the Euro Area (EA), Ireland comprises a relatively small proportion of aggregate GDP (3.4 percent), of which a significant portion is attributable to foreign-owned multinational enterprises (MNEs). Yet, the Irish financial system holds assets of EUR 7.9 trillion, over 18 times GDP. Since monetary policy is carried out by the European Central Bank (ECB) for the entire EA, macroprudential policy has the potential to play a critical stabilizing role for the Irish financial system.
September 7, 2022
Libya: Technical Assistance Report-Review the Installation/Implementation Status of Modules/Functionalities of ASYCUDA World at Libyan Customs Administration
Description: Middle East Technical Assistance Center (METAC) has arranged a two-phase capacity development (CD) for the Libyan Customs Administration (LCA) of the Libyan Ministry of Finance. The purpose of this mission is to assess the development status of the ASYCUDA World (AW) prototype piloted in the Port of Tripoli and identify areas of short-term CD support enabling LCA to fully exploit the AW functionalities. It will be followed by a study tour to promote peer learning and exchange of best practices in the f ield of customs in particular digitalization issues, through the METAC region.
September 6, 2022
Zambia: Request for an Arrangement Under the Extended Credit Facility-Press Release; Staff Report; Staff Supplement; Staff Statement; and Statement by the Executive Director for Zambia
Description: Zambia is dealing with large fiscal and external imbalances resulting from years of economic mismanagement, especially an overly ambitious public investment drive that did not yield any significant boost to growth or revenues. A drought in 2019 and the COVID-19 pandemic exacerbated the acute economic and social challenges facing the country, with poverty, inequality, and malnutrition rates amongst the highest in the world. As a result, Zambia is in debt distress, defaulting on its Eurobonds in November 2020 while also accumulating arrears to other creditors. The war in Ukraine has increased prices of fuel and fertilizer, amplifying pressures further.
September 2, 2022
Republic of Estonia: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Estonia
Description: Estonia’s economy is vulnerable to the fallout from the war in Ukraine given its geographical proximity to Russia, the geopolitical context, and high passthrough from global energy prices to domestic inflation. Although direct exposures to Russia and Ukraine through trade, services, and financial channels appear to be contained, the war is already significantly affecting economic confidence. Nevertheless, economic activity has progressively adapted to the pandemic, rebounding strongly in 2021, and as of mid-2022, remaining resilient to the headwinds from the war. Inflation has surged into double digits and is increasingly broad-based.
September 2, 2022
United Kingdom: Technical Assistance Report-Public Investment Management Assessment
Description: This Technical Report discusses the results of the Public Investment Management Assessment (PIMA) of the United Kingdom (UK) undertaken in April 2022. The assessment is timely as the UK plans to increase infrastructure investment in order to boost economic growth, reduce regional disparities and help achieve the climate transition. The PIMA finds that the UK is well positioned to implement the planned ramp-up of public investment given it has robust institutions throughout the public investment cycle. Notwithstanding this, the Report suggests areas for reform that could increase efficiency and unlock greater value from public investment. The application of the Climate-PIMA module is covered in a separate companion report.
September 2, 2022
United Kingdom: Technical Assistance Report-Public Investment Management Assessment: Climate Change Module
Description: This Technical Report discusses the results of applying the climate-focused module of the Public Investment Management Assessment (PIMA) to the United Kingdom (UK) in October 2021. The UK has some of the most ambitious climate mitigation targets in the world, requiring a strong role for public investment. The Climate-PIMA found that the UK has a relatively well-designed system to manage climate relevant public investment, but there is room to strengthen its institutional design and improve effectiveness. The application of the PIMA is covered in a separate companion report.
September 2, 2022
Austria: 2022 Article IV Consultation-Press Release; Staff Report
Description: Austria is highly vulnerable to spillovers from the war in Ukraine given its high dependence on energy imports from Russia, deep integration into global value chains, and large banking exposures. After high growth in the first half of 2022, growth is projected to fall sharply through 2023 due to impact of the war and the related energy crisis. Over the medium term, annual growth is projected to stabilize around 1¾ percent. However, output will remain below the pre-crisis trend. Uncertainty is extraordinarily high with significant downside risks.