Country Reports
2023
May 4, 2023
Nepal: Staff Report for the 2023 Article IV Consultation, First and Second Reviews Under the Extended Credit Facility Arrangement, Requests for Waivers of Nonobservance of Performance Criteria, Extension of the Arrangement, and Rephasing of Disbursements-Press Release; Staff Report; and Statement by the Executive Director for Nepal
Description: Global developments have impacted Nepal’s import-dependent economy—particularly through higher commodity prices. The current account weakened and reserves declined in the first half of 2022. Pressure on reserves has subsided since then, thanks in part to monetary policy tightening and cooling domestic demand, but inflation remains elevated. Fiscal policy has been less expansionary than projected, but a recent fall in revenues is adding to near-term fiscal pressures. Non-performing loans are increasing, while capital adequacy ratios remain above regulatory minima. Risks are on the downside.
May 2, 2023
Central African Republic: 2023 Article IV Consultation and request for a 38-month arrangement under the Extended Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for the Central African Republic
Description: CAR is on the brink of a humanitarian crisis with acute food insecurity and access to health care drastically impaired. Social tensions have ratcheted up, including strikes in various sectors, on the back of a cost-of-living crisis triggered by the Russian invasion of Ukraine. Political tensions have also escalated from the President’s plans of a third mandate requiring revisions to the constitution. The 2021 suspension of budget support—which deprived the government of 5 percent of GDP in financing—is now constraining, following the erosion of buffers, including the 2021 SDR allocation. The protracted balance of payment need is preventing the authorities from delivering basic public services to an already afflicted population. Against this backdrop, the authorities have requested Fund financing assistance.
April 28, 2023
United Republic of Tanzania: 2023 Article IV Consultation and First Review Under the Extended Credit Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for the United Republic of Tanzania
Description: Spillovers from the war in Ukraine and shortfalls in rainfall stalled Tanzania’s recovery from the COVID-19 pandemic. Despite fuel and fertilizer subsidies, inflation has picked up in recent months, approaching the Bank of Tanzania’s target. External balances deteriorated significantly last year due in large part to spillovers from the war in Ukraine.
April 28, 2023
Vietnam: Technical Assistance Report-Taxpayer Compliance Risk Management–Tourism Compliance Improvement Plan
Description: This is a summary report concerning a remotely delivered capacity development (CD) activity by Mr. Joshua Aslett (IMF Fiscal Affairs Department (FAD), Mr. Andy Ditchfield and Mr. Steve Howlin (FAD Short Term Experts (STX)) to the General Department of Taxation (GDT) of Vietnam during the period September 22 to December 15, 2022. The purpose of this CD was to consolidate and build on the compliance risk management (CRM) theory training delivered in June 20211 by practically applying those CRM principles to the tourism sector to create a tourism sector compliance improvement plan (CIP). This remotely delivered activity will be followed by onsite assistance in February 2023 at which time the tourism CIP will be completed.
April 27, 2023
Colombia: Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Colombia
Description: Benefiting from an effective policy response to the pandemic and highly favorable terms of trade, Colombia’s economy grew at one of the fastest rates among emerging economies in 2022. This demand-led recovery partly contributed to internal and external imbalances for which policy tightening is underway. The financial sector remains liquid and well capitalized, and the robust consumer credit growth observed last year is slowing. Overall, the authorities remain committed to maintaining their very strong policy frameworks and their track record of implementing very strong policies, while they seek to strengthen equity and diversify their economy from oil and coal dependence. The recent banking sector stress in advanced economies has not affected Colombia thus far.
April 27, 2023
Republic of Moldova: Third Reviews Under the Extended Credit Facility and the Extended Fund Facility Arrangements, and Request for a Waiver for Nonobservance of Performance Criterion-Press Release; Staff Report; and Statement by the Executive Director for Republic of Moldova
Description: The Moldovan economy contracted sharply in 2022; a modest recovery is expected this year. Spillovers from Russia’s war in Ukraine, high inflation and depressed demand, and weaker agricultural production all contributed to contraction in 2022. Recovery this year is supported by a pick-up in domestic demand and better growth prospects of trading partners. Inflation has decelerated as the National Bank reacted proactively to contain second-round effects and anchor expectations. Fiscal indicators remained robust in 2022, reflecting higher revenues, grants, and continued budget under-execution. International reserves continue to provide adequate safeguards against shocks; well-capitalized and liquid banks have weathered the impact of the war. The outlook is subject to high uncertainty related to the war and energy security risks.
April 25, 2023
Burkina Faso: Request for Disbursement Under the Rapid Credit Facility-Press Release; Staff Report; and Statement by the Executive Director for Burkina Faso
Description: Following two military coups in 2022, Burkina Faso remains committed to return to constitutional order, via democratic elections, by July 2024. Deviations from this timeline could put at risk the relationships with financial partners and donors. Deteriorating security, unfavorable climate conditions, the disruption of international supply-chains caused by the COVID-19 pandemic, and Russia’s invasion of Ukraine are all factors that contributed to sharply rising food prices during 2021-2022. As a result, food access for poor households deteriorated significantly, and at present about 3.4 million Burkinabé (out of a population of 21.5 million) are in conditions of food crisis, while one province is in a situation of food emergency, as defined by the World Food Program. In addition, the adverse impact on the current account of price increases for key cereals and fertilizers is estimated to amount to 0.4 percent of GDP cumulatively during 2022 and 2023. The overall costs to fully address food insecurity over the next year are estimated to be up to 3.5 percent of GDP.