Country Reports
2023
December 11, 2023
Ukraine: 2023 Article IV Consultation, Second Review Under the Extended Arrangement Under the Extended Fund Facility, and Requests for Modification of Performance Criteria and a Waiver of Nonobservance of Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Ukraine
Description: Russia’s war in Ukraine continues to have a devastating economic and humanitarian impact. The frontlines remain stalled as combat continues in eastern and southern Ukraine. Russia quit the Black Sea Grain Initiative (BSGI) in July and has stepped up attacks on Ukraine’s port infrastructure. The war is severely impacting human and physical capital, with large-scale loss of life, drop in living standards, rise in poverty, and damage to infrastructure. Despite the resilience of the Ukrainian people and the authorities’ skillful policymaking to maintain macroeconomic and financial stability, continuous external support is critical to help restore medium-term external viability, prepare the country for post-war recovery and reconstruction, and facilitate Ukraine’s path to EU accession for which the European Commission (EC) has recommended opening accession negotiations.
December 11, 2023
Republic of Kosovo: Technical Assistance Report-Residential Property Price Index Mission
Description: A technical assistance (TA) mission was conducted from June 5 to June 9, 2023, to assist the Kosovo Agency of Statistics (KAS) with the initial stages of the development of a Residential Property Price Index (RPPI). This was the first mission to Kosovo dedicated to the RPPI. The mission completed the following tasks: (i) examined all potential data sources (ii) contributed to capacity building by providing training on RPPI compilation (iii) agreed next steps for the development of the RPPI and (iv) assessed the required resources for RPPI development.
December 8, 2023
Namibia: Technical Assistance Report on Government Finance Statistics Mission (August 28-September 1, 2023)
Description: This technical assistance (TA) mission on Government Finance Statistics (GFS) was conducted during August 28 – September 1, 2023. The main purpose of the mission was to provide assistance in the compilation of consolidated general government operations data in accordance with the timeliness requirements of the IMF’s Special Data Dissemination Standards. It also reviewed the progress made by the authorities in implementing previous TA recommendations and provided further support to strengthen the compilation and dissemination of GFS in line with international standards set out in the Government Finance Statistics Manual 2014 (GFSM 2014).
December 8, 2023
Belgium: Financial Sector Assessment Program-Technical Note on Systemic Risk Analysis and Stress Testing
Description: The financial sector has remained resilient to a series of shocks and is well capitalized and profitable, but risks remain. Bank profitability and capital have surpassed pre-pandemic levels. Liquidity buffers remain strong and banks’ direct exposures to Russia are limited. The insurance and investment funds sectors have also weathered the pandemic well. There is limited evidence of credit or asset price booms over the past decade. However, inflationary pressures, partly the result of spillovers from Russia’s war on Ukraine, and a rapid tightening of financial conditions have weakened activity and reined in credit demand. Among high uncertainty, GDP growth is projected to slow in 2023, before returning to potential over the medium-term.
December 8, 2023
Belgium: Financial Sector Assessment Program-Financial System Stability Assessment
Description: Economic activity has slowed, core inflation remains high, and the fiscal outlook is challenging. The financial sector has remained resilient despite a series of shocks. Belgium has made strong progress since the 2018 FSAP to enhance frameworks for financial sector oversight and crisis management. The National Bank of Belgium’s (NBB) framework for bank supervision is well embedded in the Single Supervisory Mechanism framework and the Financial Services and Markets Authority (FSMA) has a well-developed framework for product and conduct supervision of banks and insurers. However, the NBB still lacks the powers to implement macroprudential tools without government approval.
December 8, 2023
Romania: 2023 Article IV Consultation-Press Release; and Staff Report; IMF Country Report No. 23/395
Description: Romania has weathered the economic shocks from the pandemic, Russia’s war in Ukraine, and the resulting surges in energy and food prices relatively well. Growth has slowed down but is expected to remain fairly robust in 2023 and 2024, supported by investment. Inflation remains notably above target but has been declining steadily through 2023. Fiscal deficits remain too large, although the authorities adopted a fiscal package to limit spending and raise additional revenues.
December 8, 2023
Belgium: Financial Sector Assessment Program-Technical Note on Financial Safety Net and Crisis Management
Description: The Belgium FSAP deep dived into the arrangements related to the financial safety net and crisis management. Belgium made progress since the 2018 FSAP2 in the preparation of resolution plans and minimum requirement for own funds and eligible liabilities (MREL) targets. The authorities should now focus on strengthening the crisis management framework, ensure the operational readiness of resolution plans and enhancing the Deposit Insurance System (DIS). The Belgium FSAP has reviewed the national arrangements and, as a result, all the recommendations are addressed to the national authorities. This technical note also refers to Significant Institutions (SIs) when relevant and includes a factual description of the allocation of responsibilities between the Belgian authorities, the European Central Bank (ECB) and the Single Resolution Board (SRB) with regards to the functioning of the financial safety net.