Country Reports
2023
December 4, 2023
Ecuador: Ex-Post Evaluation of Exceptional Access under the 2020 Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Ecuador
Description: The Executive Board approved a 27-month Extended Fund Facility (EFF) for Ecuador on September 30, 2020. The EFF supported program built on an earlier EFF arrangement in 2019, which had been canceled, and came on the heels of a Rapid Financing Instrument (RFI) purchase in 2020. With a total access of US$6.5 billion, the 2020 EFF brought Ecuador’s cumulative access to 897 percent of quota, triggering exceptional access (EA). After five purchases and with some of the reviews combined, the arrangement expired in December 2022.
December 4, 2023
Republic of Kosovo: Technical Assistance Report-Public Investment Management Assessment Update and Climate PIMA
Description: Kosovo is rightly working to improve its public investment management to support future economic growth and improvements in wellbeing. This assessment applies the IMF Public Investment Management Assessment (PIMA) framework, including the Climate-PIMA module. It finds that there have been improvements in Kosovo’s public investment management institutions since the original 2015 PIMA assessment—but the design of these institutions is stronger than their effectiveness in practice. Continued reforms are needed to strengthen the project appraisal process, improve the pace of project implementation, and increase central support for major projects. Like most other countries, Kosovo is at an early stage of incorporating climate aspects into public investment management. Strengthening the alignment between climate goals and sectoral infrastructure planning and delivery will be needed to ensure that infrastructure investments are resilient and assist Kosovo in meeting is climate objectives.
November 28, 2023
Republic of Nauru: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Republic of Nauru
Description: Nauru faces structural challenges due to its small size and remoteness, and is highly dependent on imports. The narrow revenue base comprises fishing license fees, residual phosphate processing, and revenue from the Regional Processing Center (RPC). Nauru is vulnerable to the negative effects of climate change, as the population inhabit in a narrow coastal area. The health and economic impact of the pandemic has been limited in Nauru, thanks to successful vaccination and containment strategies
November 27, 2023
Sierra Leone: Eighth Review Under the Extended Credit Facility Arrangement, Request for a Waiver of Nonobservance of Performance Criterion, and Financing Assurances Review
Description: President Bio started his second term following the June elections. Allegations of electoral fraud led the opposition to temporarily refuse to participate in any level of governance, but the political stalemate ended in October. The authorities have taken bold steps to tackle macroeconomic imbalances, but reform implementation remains a challenge amid the large adjustment need, a dramatic cost-of-living crisis and the tense political environment. The ECF arrangement—a key policy anchor—is coming to an end with the conclusion of the eighth and final review. The authorities have signaled their interest in a successor ECF arrangement as well as in support under the RST.
November 22, 2023
Malawi: Second Review Under the Staff-Monitored Program with Executive Board Involvement and Request for an Arrangement Under the Extended Credit Facility-Press Release; Staff Report
Description: Malawi is recovering from a series of shocks. Real GDP is projected to increase by 1.6 percent in 2023, with shortages of foreign exchange still weighing on economic activity. Inflation is expected to average 30.3 percent in 2023 and to start declining next year. The authorities stepped up efforts to meet fiscal targets under the PMB, adjusting expenditure to offset a shortfall in revenue, and containing government borrowing to slow money growth. The Reserve Bank of Malawi (RBM) tightened monetary policy to contain inflationary pressures and resumed foreign exchange auctions. Rebuilding international reserves of the RBM has been slow as access to trade credit has remained limited. The authorities are seeking comparable treatment from all official bilateral creditors. The authorities continue to pursue good faith negotiations with commercial creditors to restructure their external debt and are in arrears on commercial debt while these discussions continue.
November 22, 2023
Republic of San Marino: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of San Marino
Description: Context. The global financial crisis and international efforts to address preferential tax regimes exposed the vulnerabilities of San Marino’s oversized financial sector servicing nonresidents. While the banking system entered a deep crisis in 2008 and continues to struggle, the nonfinancial sector has experienced a recovery underpinned by cost-competitiveness and strong corporate balance sheets. More recently, prudent fiscal policies, access to international capital markets and favorable external conditions improved the public finances and boosted confidence. As a result, the economy has been remarkably resilient throughout the pandemic and Russia’s invasion of Ukraine. Despite volatile financial conditions, the government was able to rollover the Eurobond maturing next year. However, San Marino is a microstate subject to very high volatility and financial sector vulnerabilities remain, suggesting that larger-than-usual fiscal buffers are needed.
November 21, 2023
Cabo Verde: Technical Assistance Report-Consumer Price Index
Description: At the request of the National Institute of Statistics Cabo Verde (INECV), a technical assistance mission provided guidance on improving and updating consumer price index (CPI) weights and assessed CPI compilation methods. This mission was conducted under the auspices of AFRITAC West 2.
November 20, 2023
Republic of Kosovo: First Reviews Under the Stand-By Arrangement and the Arrangement Under the Resilience and Sustainability Facility and Request for Modification of Reform Measure-Press Release; Staff Report; and Statement by the Executive Director for Republic of Kosovo
Description: Context, Outlook, and Risks. GDP growth is expected to average 4 percent per annum over 2023–24 on lower international commodity prices, vigorous diaspora flows, and sound macroeconomic policies. Average inflation is projected to decline to about 5 percent in 2023 and 3½ percent in 2024. Risks to growth are balanced on the short-term, but on the downside in the medium-term, given the complex geopolitical scenario.
November 20, 2023
Seychelles: Technical Assistance Report–Public Investment Management Assessment–PIMA and Climate PIMA
Description: The Public Investment Management Assessment (PIMA) for Seychelles shows a relatively well-designed public investment management system, with well-unified budgeting arrangements and effective funding processes for capital projects. However, the assessment also notes under-execution of capital budgets and identifies important areas for improvement in medium-term budgeting, project planning, and asset management. The Climate Public Investment Management Assessment (C-PIMA) provides a climate perspective on public investment management in Seychelles. This module identifies proactive climate-related public investment coordination but gaps in the incorporation of climate resilience measures within the investment framework. Recommended reforms are geared towards enhancing project appraisal, defining roles in the public investment system, and integrating climate change adaptation into the planning process. These reforms, aligned with Seychelles' National Development Strategy, aim to optimize public investment management and ensure sustainable development in the face of climate-related challenges.
November 17, 2023
Pakistan: Technical Assistance Report–Public Investment Management Assessment–PIMA and Climate PIMA
Description: Pakistan is working to improve its public investment management (PIM) to support economic growth and service delivery and make public infrastructure more sustainable and resilient to climate change. This assessment applies the IMF’s Public Investment Management Assessment (PIMA) framework, including the Climate-PIMA module. It highlights some of the important efforts made in recent years to strengthen PIM and identifies scope for further strengthening of key institutions. In a context where fiscal space is tight and climate action urgent, it recommends a number of targeted actions to move reforms forward.