Country Reports
2023
March 22, 2023
Georgia: Technical Assistance Report-Operationalizing the New Bank Recovery and Resolution Framework
Description: In response to a request from the National Bank of Georgia (NBG), the Monetary and Capital Markets Department (MCM) of the International Monetary Fund (IMF) conducted a Technical Assistance (TA) mission during September 5–16, 2022 as follow-up to the mission that took place during March 17–April 20, 2022. The first mission provided initial assistance to the authorities in operationalizing the new bank recovery and resolution framework, building on the recommendations from the 2021 Financial Sector Assessment Program (FSAP). This second mission deepened that assistance by providing further guidance on, among others, (i) the architecture of the resolution framework; including triggers, resolvability assessments, and resolution planning; (ii) the operationalization of key resolution tools (notably, by reviewing playbooks for the sale of business and bridge banks tools); (iii) data requirements for undertaking the valuations necessary to support resolution; (iv) resolution funding options; and (v) interagency coordination and communications. Moreover, the mission discussed potential impediments (and associated mitigants) to effective resolution and reviewed the NBG’s progress with the implementation of the recommendations on early intervention, the Interagency Financial Stability Committee, and other topics that were covered by the first mission.
March 21, 2023
Republic of Madagascar: 2022 Article IV Consultation, Third Review Under The Extended Credit Facility Arrangement, and Requests for A Waiver of Nonobservance of Performance Criteria and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Republic of Madagascar
Description: The COVID-19 pandemic and extreme weather events have aggravated Madagascar’s fragility. The poverty rate is estimated to be above 80 percent. After a stronger-than-expected recovery in 2021, growth is estimated to have decelerated in 2022 mostly due to climate shocks and a worsening global environment. Fiscal performance has deteriorated with weak revenue performance and increasing crossliabilities with oil distributors. While fiscal and external deficits have widened, fiscal and external sustainability are preserved in the medium term.
March 20, 2023
Sri Lanka: Request for an Extended Arrangement Under the Extended Fund Facility-Press Release; Staff Report; and Statement by the Executive Director for Sri Lanka
Description: Sri Lanka fell into an unprecedented crisis as a result of a series of shocks and policy missteps. Debt rose to unsustainable levels resulting from large fiscal imbalances, and access to international capital markets was lost soon after large tax cuts and the onset of the COVID-19. Reserves were depleted, leading to a sharp exchange rate depreciation, and debt service was suspended in the spring of 2022. Sizable monetary financing to meet fiscal obligations contributed to a surge in inflation. Sri Lanka’s economy is in deep recession and financial stability is at risk given the tight financialsovereign nexus. People are suffering from food and energy shortages, exacerbating deep-rooted public dissatisfaction and creating a vulnerable political and social environment.
March 20, 2023
Cameroon: Third Reviews Under the Extended Credit Facility and the Extended Fund Facility Arrangements, and Requests for Waivers for Performance Criteria Applicability, Nonobservance of Performance Criteria and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Cameroon
Description: Cameroon, a fragile and conflict affected state, proved resilient to the COVID- 19 shock but is now facing increased challenges in an uncertain global environment. The recovery, which was supported by higher oil prices and non-oil production in 2021, continued in 2022, against the backdrop of Russia’s war in Ukraine, inflationary pressures, supply chain disruptions, and tight global financial conditions. Cameroon has successfully completed two reviews since the approval in July 2021 of the three-year arrangements under the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) for SDR 483 million (about US$689.5 million, or 175 percent of quota). Completion of the third review will allow the total disbursement of SDR 55.2 million (about US$73.3 million).
March 16, 2023
Sweden: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Sweden
Description: Sweden experienced a strong post-pandemic rebound in 2021–22 but is potentially heading into a recession. Global headwinds started to steadily put breaks on consumption and business confidence in the third quarter of 2022, as external demand weakened, and higher inflation and interest rates are increasing the burden on households and firms. A slightly negative GDP growth and a moderate decline in inflation are expected in 2023. The recovery will be gradual over the medium term, and inflation is expected to decelerate towards its 2 percent target, but the uncertainty surrounding this outlook is high.
March 16, 2023
Sweden: Financial System Stability Assessment
Description: Sweden recovered rapidly from the Covid1-19 crisis, and GDP reached its prepandemic level in mid-2021. In the context of a robust supervision and regulation framework, the financial sector exited the crisis with substantial capital and liquidity buffers. Going forward, growth is expected to slow amid higher energy prices, tighter financial conditions, and reduced confidence following sharply lower house prices. Given stubborn inflation, the Riksbank has been normalizing rates more aggressively than expected last year. Systemic risks to the financial system arise from (i) high exposure of banks to the commercial real estate (CRE) sector; (ii) limited liquidity in corporate bond markets; (iii) high indebtedness of households and sensitivity to higher interest rates. The banking system is nearly three times 2021 GDP and is interconnected domestically and regionally.
March 15, 2023
Samoa: 2023 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Samoa
Description: After a three-year recession triggered by the COVID-19 pandemic, the economy is recovering, boosted by the reopening of tourism. However, higher global commodity prices briefly raised inflation to double-digit rates. Disciplined fiscal policies, buoyant revenue and remittances, and donor support have contributed to fiscal and external stability. The banking system has remained resilient to the economic downturn, although there has been some deterioration in asset quality. Pressures on correspondent banking relationships continue. With the pandemic-driven decline in investment, as well as rising numbers of seasonal workers abroad, output is projected to remain well below pre-pandemic trends.
March 10, 2023
Republic of Slovenia: Technical Assistance Report-Revenue Administration Gap Analysis Program- Corporate Income Tax Gap
Description: This report presents the estimates of tax gaps for corporate income tax (CIT) for non-financial corporations in Slovenia by applying the methodology of the IMF’s RA-GAP (Revenue Administration – Gap Analysis Program). This work is being undertaken under the context of the larger project designed to strengthen the administration of corporate income tax (CIT) by the Slovenian Financial Administration (SFA). Providing support towards building the capacity of the SFA to estimate and analyze the CIT gap will assist in achieving the overall goals of the project to: (i) strengthen core tax administration functions, and (ii) strengthen revenue administration, management, and governance arrangements.