Country Reports
2023
May 18, 2023
Albania: Technical Assistance Report—Investment Funds and Interconnectedness Risks
Description: This report relies on the information submitted by the AFSA and discussions with AFSA and BoA. Detailed data on the fund sector had been shared by AFSA and discussions with Authorities covered issues around (i) data reporting, (ii) risk analysis, (iii) regulatory framework and (iv) interlinkages. The fund sector has been expanding and remains highly concentrated. Since end-2019 the net asset value of Albanian funds has increased by 15 percent and accounts for around four percent of financial sector assets. The sector remains highly concentrated: (i) on the asset side, as domestic sovereign bonds account for most of exposures; and (ii) on the entity side, as the top fund represents 62 percent of the asset of the sector and the top 3 funds (all from the same manager) around 95 percent.
May 17, 2023
Belgium: Technical Assistance Report-Revenue Administration Gap Analysis Program–The Value Added Tax
Description: This report presents the results of applying the RA-GAP VAT gap estimation methodology to Belgium for the period 2011-2021. The Revenue Administration Gap Analysis Program (RAGAP) methodology employs a top-down approach for estimating the potential Value-Added Tax (VAT) base, using statistical data on value-added generated in each sector. There are two main components to this methodology for estimating the VAT gap: 1) estimate the potential VAT collections for a given period; and 2) determine the accrued VAT collections for that period. The difference between the two values is the VAT gap.
May 17, 2023
Ghana: Request for an Arrangement Under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Ghana
Description: This paper highlights Ghana’s Request for an Arrangement under the Extended Credit Facility (ECF). The authorities’ economic program, supported by the ECF-arrangement, builds on the government’s post-coronavirus disease 2019 Program for Economic Growth, which aims to restore macroeconomic stability and debt sustainability and includes wide-ranging reforms to build resilience and lay the foundation for stronger and more inclusive growth. Securing timely debt restructuring agreements with external creditors will be essential for the successful implementation of the new ECF arrangement. Key policies under the authorities’ program include large and frontloaded fiscal consolidation to bring public finances back on a sustainable path, complemented by efforts to protect the vulnerable. The adjustment effort will be supported by ambitious structural reforms in the areas of tax policy, revenue administration, and public financial management, as well as steps to address weaknesses in the energy and cocoa sectors. An ambitious structural reform agenda is being put in place to reinvigorate private sector-led growth by improving the business environment, governance, and productivity.
May 12, 2023
Solomon Islands: 2023 Article IV Consultation-Press Release; and Staff Report
Description: The economy is recovering from the shocks of civil unrest in November 2021 and a local outbreak of COVID-19 in early 2022, driven by increasing activity after the reopening of the border and preparation for the 2023 Pacific Games. But the recovery has been fragile, as Russia’s war in Ukraine has led to a decline in the terms of trade and rising inflation. A large pipeline of infrastructure projects financed by concessional borrowing is expected to support medium-term growth and help reduce a large infrastructure gap. But the country’s external position is projected to significantly weaken because of these projects and declining log exports, with reserve coverage declining as a result. This outlook highlights the pressing needs for reform to improve public investment management, as well as to diversify the economy and enhance its competitiveness.
May 12, 2023
Belize: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Belize
Description: Outlook and Risks. Economic activity is projected to moderate after a strong recovery from the pandemic. After growing by 15 percent in 2021 and 12 percent in 2022, real GDP is projected to grow by 2.4 percent in 2023 and 2.0 percent over the medium term as spare capacity is exhausted. Revenue growth and fiscal consolidation have increased the primary balance to 1.2 percent of GDP from FY2022 onwards, which is projected to reduce public debt from 64 percent of GDP in 2022 to 53 percent in 2028. Risks to the outlook are tilted to the downside, including a sharp slowdown in advanced economies, further increases in commodity prices, and climate-related disasters.
May 8, 2023
Trinidad and Tobago: Technical Assistance Report-Strengthening Cybersecurity in Financial Institutions
Description: At the request of the CBTT, a TA mission on strengthening cybersecurity in financial institutions was delivered during the period October 31–November 4, 2022. The Governor requested the TA during the 2022 Spring Meetings and the deliverables for the mission and the milestones were identified by having a dialogue with the authority. The mission had two objectives: (i) to strengthen the cybersecurity of the financial institutions under the supervisory ambit of CBTT and (ii) to improve the cybersecurity stance of the CBTT. For the project for strengthening cybersecurity of the Central Bank an internal project team has been constituted. For strengthening cybersecurity of financial institutions, the CBTT has established a working group comprising all the financial regulators (namely, the CBTT, Trinidad and Tobago Securities and Exchange Commission (TTSEC), the Financial Intelligence Unit of Trinidad and Tobago (FIUTT), and the Office of the Commission of Cooperative Development (CCD) to draft a cybersecurity guideline for financial institutions and a supervisory manual.
May 5, 2023
Kingdom of Eswatini: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Kingdom of Eswatini
Description: Eswatini is at an important juncture as the authorities seek to address long-standing macroeconomic challenges in a shock-prone environment. While Eswatini has endured the pandemic and successive shocks from international commodity prices, fiscal and external buffers are low. Addressing long-standing macroeconomic imbalances—stemming mainly from fiscal overruns—remains a critical priority. Government efforts in this area have already begun but will need to be sustained over the medium-term. In tandem, shifting from a state-led to a private sector and export-led growth model will be essential to achieve higher and sustained levels of inclusive growth necessary for poverty reduction. Focused efforts to address the underlying causes of recent civil unrest, together with concerted efforts to tackle gaps in governance, are also needed.
May 5, 2023
Trinidad and Tobago: 2023 Article IV Consultation-Press Release; and Staff Report
Description: The economy is recovering supported by higher global energy prices and the rebound of the non-energy sector. Inflation has increased driven by imported energy and food prices, partial liberalization of fuel prices, and domestic weather-related shocks. The financial sector appears well-capitalized, liquid, and profitable. Higher global energy prices helped improve the external position, turn the FY2022 fiscal position into a surplus, and lower public debt.