IMF Executive Board Completes the Fourth Review of the Extended Fund Facility Arrangement for Ukraine
June 28, 2024
IMF Executive Board Completes the Second Review under the Extended Credit Facility Arrangement with Ghana
June 28, 2024
Central African Economic and Monetary Community: Common Policies in Support of Member Countries Reform Programs-Staff Report; and Statement by the Executive Director
June 28, 2024
The CEMAC’s economy lost some momentum in 2023 and the external
position deteriorated somewhat, while inflation cooled but remained high. Updated
statistics revealed a much more deteriorated fiscal situation than originally estimated. The
near-term outlook is one of continued recovery, with growth projected at 3.6 percent in
2024, reflecting still-high oil prices and a strong rebound in oil output. In the medium
term, however, sustained growth projected at the regional level masks divergences across
the region, with weaker economic performance in countries with no program or off-track
Fund-supported programs. In the absence of decisive corrective actions, and with current
policies unchanged, fiscal and external imbalances are set to widen in the medium term,
threatening to reverse reserve accumulation and add to financial stability risks.
Islamic Republic of Mauritania: Poverty Reduction and Growth Strategy
June 28, 2024
Since 2016, public development action in Mauritania by 2030 has been framed by the Strategy for
Accelerated Growth and Shared Prosperity (SCAPP). This reference framework for strategic planning for
the country's economic, social and environmental development also incorporates the United Nations
2030 Agenda for Sustainable Development (SDGs). In addition, the SCAPP has been the subject of a
framework law that makes it possible to establish it as a reference framework for development
interventions carried out by the Government with the support of its technical and financial partners
(TFPs).
Islamic Republic of Mauritania: Second Reviews Under the Arrangements Under the Extended Credit Facility and the Extended Fund Facility, Requests for Modification of Performance Criteria and a Waiver of Nonobservance of Performance Criterion, and First Review Under the Arrangement Under the Resilience and Sustainability Facility-Press Release; and Staff Report
June 28, 2024
Economic performance in 2023 has been broadly positive, with decreasing inflation and a narrowing current account deficit, although real GDP growth slowed somewhat. Still, challenges related to infrastructure, governance, vulnerability to economic shocks, and limited economic diversification constrain Mauritania’s economic development. While the political situation appears stable, security risks persist, especially in the Sahel region. Additionally, frequent and severe climate-related disasters create large adaptation needs, though opportunities for boosting clean energy exist.
Seychelles: 2024 Article IV Consultation, Second Reviews Under the Arrangement Under the Extended Fund Facility and the Arrangement Under the Resilience and Sustainability Facility, Requests for a Waiver of Nonobservance and Modification of Performance Criteria-Press Release; and Staff Report; and Statement by the Executive Director for Seychelles
June 28, 2024
They Seychellois economy continues to recover from the effects of the
pandemic but at a slowing pace. While tourist arrivals were about 91 percent of prepandemic
highs and activity in the IT, construction, and fishing sectors was robust, real
GDP growth slowed to about 3.2 percent in 2023. This is due partly to a complex disaster
(flooding and an industrial explosion) in December and associated negative impacts on
manufacturing. Inflation has been negative since May but appears to have troughed in
December. The fiscal stance in 2023 was tighter than projected and, as a result, the ratio
of public debt to GDP is moving more quickly back to pre-pandemic lows. The external
position improved slightly relative to the previous year.
Bangladesh: Technical Assistance Report-Interest Rate Corridor Adoption
June 28, 2024
In August 2023, the IMF South Asia Regional Training and Technical Assistance Center (SARTTAC) undertook a Technical Assistance (TA) Mission at Bangladesh Bank (BB) to advise on the shift from a reserve money targeting monetary policy framework to an interest rate-focused one. This transition, announced by BB for July-December 2023, marks a significant policy shift, and it provides an opportunity to realign BB's governance and operational frameworks with the new monetary policy framework.
Crucial to this transition is the amendment of the Bangladesh Bank Order (BBO) to give priority to price stability as the objective of monetary policy, to enhance BB's autonomy and accountability, and to eliminate direct BB lending to priority sectors. These modifications aim to align the governance structure with the objectives of the updated monetary policy framework.
The mission suggested several key adjustments to the operational framework, including the implementation of a weekly 7-day Open Market Operation (OMO) at the policy rate; an increase in Cash Reserve Ratio (CRR) averaging; automatic access to Standing Facilities (SFs), and the harmonization of the legal framework for collateralized liquidity-providing monetary operations. Additionally, the mission proposed future measures to improve short-term liquidity forecasting and interbank market trading.
Supportive measures were also recommended, such as normalizing the foreign exchange market with a clear exchange rate policy; engaging in money market development initiatives; participating in the Local Bond Market development project; and revising BB’s communications policy to enhance transparency. These reforms are designed to improve monetary policy transmission so as to support the achievement of BB’s its primary mandate of price stability, as a prerequisite for macroeconomic stability and stable economic growth.
Barbados: Third Reviews Under the Arrangement Under the Extended Fund Facility, Arrangement Under the Resilience and Sustainability Facility, and Request for Modification of Performance Criteria-Press Release; and Staff Report
June 28, 2024
The authorities’ implementation of the home-grown Economic Recovery and
Transformation (BERT 2022) plan and their ambitious climate policy agenda remain
strong, supported by the IMF’s Extended Fund Facility (EFF) and Resilience and
Sustainability Facility (RSF). In 2023, the economy completed its recovery from the
pandemic, growing by an estimated 4.4 percent, driven by a rebound in tourism and
related sectors. Inflation moderated gradually with the easing of global commodity
prices but remained somewhat elevated due to adverse weather conditions that affected
some domestic crops, and stronger demand for tourism-related services. The external
position also strengthened, with the current account deficit narrowing to 9 percent of
GDP and ample international reserves (US$1.5 billion at end-2023) continuing to support
the exchange rate peg. The authorities remain committed to maintaining fiscal
consolidation and debt sustainability, while advancing structural reforms to achieve
more inclusive and sustainable growth and increase resilience to climate change.