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Djibouti

Author(s):
International Monetary Fund
Published Date:
June 1996
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I. Overview

This document consists of two parts. First, it provides statistical information on the main economic sectors (real, fiscal, monetary, and external sectors). This information supplements the data contained in the staff report on the 1995 Article IV consultation report and request for a stand-by arrangement (EBS/96/53, March 29, 1996). Second, it also contains: (i) a summary of the tax system in Appendix I; (ii) a list of public agencies and enterprises in Appendix II; and (iii) a note on the “Institutional Aspects of Monetary management” in Appendix III.

Table 1.Djibouti: Basic data. 1991–1995
1991199219931994Prel.

1995
(Annual percentage changes)
National income and prices
GDP at current prices7.33.10.33.41.6
GDP at constant prices0.4–0.2–3.9–2.9–3.1
Consumer prices (annual average) 1/6.83.44.46.54.9
Consolidated government financial operations 2/
Revenue1.67.55.77.7–2.4
Grants2.24.8–28.8–41.612.8
Current expenditure 3/–1.534.21.0–7.7–7.7
Investment expenditure 3/–25.34.3–11.9–30.025.4
Money and credit 4/
Net foreign assets5.8–16.23.3–2.6–3.6
Net domestic assets–4.510.0–5.54.16.9
Claims on the Central Government (net)–2.09.61.81.92.1
Claims on the private sector 5/–2.0–0.8–3.81.18.0
Money and quasi money1.3–6.2–2.21.53.3
External sector
Exports, f.o.b. 6/1.6–25.733.9–20.9–40.6
Imports, f.o.b.3.7– ––1.5–7.1–13.6
Nominal effective exchange rate0.2–4.53.0–1.4–8.7
(period averages: depreciation –)
(In percent of GDP)
Gross investment 4/14.419.517.911.712.0
Gross national savings4.70.55.21.44.0
Government financial operations 5/
Total revenue and grants38.239.337.234.533.9
Revenue26.026.928.429.628.4
Grants12.212.48.85.05.5
Total expenditure41.251.050.143.040.1
Current expenditure32.041.741.937.434.0
Capital expenditure9.29.38.25.66.1
Overall deficit, payment order basis, excluding grants–15.2–24.1–21.8–13.4–11.7
Overall deficit, payment order basis, including grants–3.0–11.7–13.0–8.4–6.2
Overall deficit, cash basis, excluding grants–18.7–23.7–18.0–11.1–8.9
Overall deficit, cash basis, including grants–6.4–11.3–9.2–6.2–3.4
External sector
External current account
Including official transfers–4.6–15.2–6.6–8.2–2.5
Excluding official transfers–24.4–33.0–25.0–21.2–17.9
Excluding official capital transfers–9.6–19.1–12.7–10.3–8.0
(In millions of U.S. dollars, unless otherwise indicated)
Overall balance6.4–16.7–8.70.9–24.4
Total external debt175.6211.6248.9277.7267.1
(In percent of GDP)38.545.052.857.054.0
Debt service (in percent of exports of locally produced goods and services)5.06.45.16.17.4
Gross official foreign reserves (in number of months of imports of domestically consumed goods)6.34.84.64.94.8
Exchange rate
Djibouti francs per U.S. dollars, end of period177.7177.7177.7177.7177.7
Sources: Data provided by the Djibouti authorities; staff estimates and projections.

For expatriates only.

On a calendar year basis.

Includes extrabudgetary outlays financed by external grants and loans.

In relation to broad money stock at beginning of period.

Includes public enterprises.

Virtually all exports are re–exports.

Sources: Data provided by the Djibouti authorities; staff estimates and projections.

For expatriates only.

On a calendar year basis.

Includes extrabudgetary outlays financed by external grants and loans.

In relation to broad money stock at beginning of period.

Includes public enterprises.

Virtually all exports are re–exports.

Table 2.Djibouti: Gross Domestic Product by Sector of Origin at Current Prices, 1991–95
19911992199319941995
(In millions of Djibouti francs)
Primary sector2,2502,1892,3272,3972,668
Secondary sector13,47415,34615,19314,76815,512
Manufacturing3,5693,9443,9243,8724,105
Construction and public works3,8174,2754,3184,1894,440
Water and electricity6,0887,1276,9506,7076,967
Tertiary sector54,69756,79256,57358,46159,655
Commerce and tourism13,59113,46912,68812,86513,637
Transport and communications14,89613,03413,60814,22013,362
Banking and insurance 1/7,5967,5287,0917,1908,197
Public adminstration15,27319,83820,13520,99720,600
Other services3,3412,9233,0523,1893,857
GDP at factor cost70,42174,32774,09375,62777,835
Net indirect taxes10,5499,1749,67210,97010,159
GDP at market prices80,97083,50183,76586,59787,994
(Annual percentage change)
Primary sector3.0–2.76.33.011.3
Secondary sector3.213.9–1.0–2.85.0
Manufacturing2.510.5–0.5–1.36.0
Construction and public works2.012.01.0–3.06.0
Water and electricity4.417.1–2.5–3.53.9
Tertiary sector9.43.8–0.43.32.0
Commerce and tourism5.4–0.9–5.81.46.0
Transport and communications23.0–12.54.44.5–6.0
Banking and insurance 1/5.4–0.9–5.81.414.0
Public adminstration1.229.91.54.3–1.9
Other services23.0–12.54.44.521.0
GDP at factor cost7.95.5–0.32.12.9
Net indirect taxes3.0–13.05.413.4–7.4
GDP at market prices7.33.10.33.41.6
Sources: Data provided by the Djibouti authorities and staff estimates.

Net of imputed charge for banking services.

Sources: Data provided by the Djibouti authorities and staff estimates.

Net of imputed charge for banking services.

Table 3.Djibouti: Gross Domestic Product by Sector of Origin at Current Prices, 1991–95(In percent of GDP)
19911992199319941995
Primary sector2.82.62.82.83.0
Secondary sector16.618.418.117.117.6
Manufacturing and handicrafts4.44.74.74.54.7
Construction and public works4.75.15.24.85.0
Water and electricity7.58.58.37.77.9
Tertiary sector67.668.067.567.567.8
Commerce and tourism16.816.115.114.915.5
Transport and communications18.415.616.216.415.2
Banking and insurance9.49.08.58.39.3
Public administration18.923.824.024.223.4
Other services4.13.53.63.74.4
GDP at factor cost87.089.088.587.388.5
Net indirect taxes13.011.011.512.711.5
GDP at market prices100.0100.0100.0100.0100.0
Sources: Data provided by the Djibouti authorities; the World Bank; and staff estimates.
Sources: Data provided by the Djibouti authorities; the World Bank; and staff estimates.
Table 4.Djibouti: Supply and Use of Resources at Current Market Prices, 1991–1995(In millions of Djibouti francs)
19911992199319941995
Supply of resources145,122148,753148,989144,677139,151
GDP at market prices80,97083,50183,76586,59787,230
Imports of goods and nonfactor services64,15265,25265,22458,08051,922
Use of resources145,122148,753148,988144,677139,915
Total consumption89,25094,58589,52394,24492,690
Private63,33760,40554,38261,62262,581
Government25,91334,18035,14132,62230,108
Gross investment11,62716,31914,96010,13410,556
Private4,1538,5228,0955,3265,181
Government7,4747,7976,8654,8085,375
Exports of goods and nonfactor services44,24537,85044,50540,30036,670
Memorandum items:
Gross national savings3,8404064,3321,2103,520
Resource gap–19,907–27,402–20,719–17,780–15,251
Sources: Data provided by Djibouti authorities; the World Bank; and staff estimates.
Sources: Data provided by Djibouti authorities; the World Bank; and staff estimates.
Table 5.Djibouti: Supply and Use of Resources at Current Market Prices, 1991–95(In percent of GDP)
19911992199319941995
Supply of resources179.2178.1177.9167.1159.5
GDP at market prices100.0100.0100.0100.0100.0
Imports of goods and nonfactor services79.278.177.967.159.5
Use of resources179.2178.1177.9167.1160.4
Total consumption110.2113.3106.9108.8106.3
Private78.272.364.971.271.7
Government32.040.942.037.734.5
Gross investment14.419.517.911.712.0
Private5.110.29.76.25.9
Government9.29.38.25.66.1
Exports of goods and nonfactor services54.645.353.146.542.0
Memorandum items:
Gross national savings4.70.55.21.44.0
Resource gap–24.6–32.8–24.7–20.5–17.5
Sources: Data provided by the Djibouti authorities; and staff estimates.
Sources: Data provided by the Djibouti authorities; and staff estimates.
Table 6.Djibouti: Agricultural Production by Species, 1989/90–1993/94(Unit tons)
1989/901990/911991/921992/931993/94
Eggplant39503027
Beetroot23252016
Carrot41053
Cauliflower/Cabbage8
Cucumber101552
Zucchini101552
Bush beans51056
Corn and dourah51053
Melon86285
Onion13015010054
Watermelon801004036
Red pepper6060202
Leek200210100– –
Other (including fruits)9871,1103501,257
Sources: Data provided by the Djibouti authorities.
Sources: Data provided by the Djibouti authorities.
Table 7.Djibouti: Annual Slaughter and Exports of Animals and Skins, 1990–94
19901991199219931994
(In head)
Number of animals Slaughtered198,485241,137229,024180,317138,970
Sheep and goats177,985214,136196,803145,030114,247
Cattle20,38926,83432,02235,14824,608
Camels111167199139115
Export of animals on the hoof78,13321,4891,1004,0002,825
Sheep and goats– –2,010– –– –825
Cattle78,13319,4791,1004,0002,000
(In metric tons)
Exports of skins396404395385323
Sources: Data provided by the Djibouti authorities.
Sources: Data provided by the Djibouti authorities.
Table 8.Djibouti: Purchases and Sales of Fish by the Maritime Cooperative, 1990–94(kilograms)
19901991199219931994 1/
Purchases367,735251,584125,70055,917310,877
Lobsters1,287105– –114– –
Fish, mollusks, and other shellfish366,448251,479125,70055,803310,877
Sales243,600137,27055,917310,877
Individuals102,10066,367
Fish stores141,50070,903
Exports78,10035,589
Sources: Data provided by the Djibouti authorities.

The Marine Cooperative was shut down in 1993 and was sold to the private sector in 1994. All purchases are now sold to private individuals.

Sources: Data provided by the Djibouti authorities.

The Marine Cooperative was shut down in 1993 and was sold to the private sector in 1994. All purchases are now sold to private individuals.

Table 9.Djibouti: Production and Consumption of Electricity, 1990–94
19901991199219931994
(In kilowatt hours)
Production201,548205,994212,698220,339224,085
Number of users25,86027,51328,82629,87830,732
Consumption169,023171,451198,695206,341209,506
Industry82,09082,61095,73799,421117,180
Households86,93388,841102,958106,92092,326
(In thousands of Djibouti francs)
Sales5,2795,4366,3186,5616,837
Industry2,5132,6163,0453,1613,933
Households2,7662,8203,2733,4002,904
(Djibouti francs per kilowatt hours)
Average electricity prices37.4537.4137.037.037.0
Sources: Data provided by the Djibouti authorities.
Sources: Data provided by the Djibouti authorities.
Table 10.Djibouti: Production and Consumption of Running Water in Urban Areas, 1990–94(In cubic meters)
19901991199219931994
Production13,17511,12013,85513,35014,908
Consumption10,5289,6819,8659,2379,976
Sources: Data provided by the Djibouti authorities.
Sources: Data provided by the Djibouti authorities.
Table 11.Djibouti: Transportation Activity, 1991–95
1991199219931994Prel.

1995
Seaport traffic
Passenger (number)12,3026,1037,26211,7464,898
Total merchandise (1,000 tons) 1/1,9571,3021,0181,207404
Loaded and unloaded1,491916695844530
Oil unloaded, bunkered, re–exported466386323363215
Water supplied to ships, in cubic meters7370533329
Airport traffic
Arrivals and departures
(number of airplanes)8,6605,3927,3809,9065,971
Passengers (number) 2/106,056122,414136,668130,996120,141
Freight (in tons)41,31015,24510,7449,64511,953
Postal items (in tons)490450463383338
Overall air traffic
Number of traffic units 3/524279246232243
Percentage change158.0–46.8–11.8–5.75
Train traffic
Passengers/kilometer265279
Mechandise (millions of tons/kilometer)130.3136.7152.3112.3273
Percentage change–0.235.011.4
Road vehicles
Net new registration 4/1,113869
Percentage change–3.5
Of which: four–wheel vehicles (gross)1,198823
Motor vehicle annual licenses sold7,3967,0516,8206,578
Sources: Data provided by the Djibouti authorities; and Annuaires Statistiques deDjibouti, 1991.

Sum of loaded and unloaded merchandise, oil traffic, and water supply to ships.

Sum of passengers arriving and departing, excluding those in transit (including military planes).

One unit of traffic equals 1,000 passengers equals 100 tons of freight equals 100 tons of postal traffic.

Includes net registration of all new four–wheel vehicles plus motorcycles less changes of registration numbers.

Sources: Data provided by the Djibouti authorities; and Annuaires Statistiques deDjibouti, 1991.

Sum of loaded and unloaded merchandise, oil traffic, and water supply to ships.

Sum of passengers arriving and departing, excluding those in transit (including military planes).

One unit of traffic equals 1,000 passengers equals 100 tons of freight equals 100 tons of postal traffic.

Includes net registration of all new four–wheel vehicles plus motorcycles less changes of registration numbers.

Table 12.Djibouti: Telecommunications Traffic, 1990–94
TelephoneTelephone TrafficFacsimileTelegraphic Traffic (Numbers)
Number

of

Users
International

(’000 minutes)
National

(’000 of

Communications)
Number

of

Users
DomesticInternational
SentReceivedSentReceivedIn Transit
19905,6664,05727,7781971902057,6045,314233
19916,1253,15525,7901962862637,7824,658139
19926,3393,2421935599,0243,68258
19937,3494,2281711,4498,7012,785
19947,4364,57825,3001551104,6841,675
Sources: Data provided by Djibouti authorities; and Annuaires Statistiques deDjibouti, 1991.
Sources: Data provided by Djibouti authorities; and Annuaires Statistiques deDjibouti, 1991.
Table 13.Djibouti: Postal and Telecommunication Tariffs in Force at the Beginning of the Year, 1990–94(In Djibouti francs)
19901991199219931994
Postal service
Private letter, domestic
Up to 20 g3030303030
From 500 g to 1 kg290290290290290
Private letter by air
10 g to France120120120120120
Registered mail300300300420420
Postal packet
Air, 1 kg to France3,2113,2113,2113,2113,200
Postal box (annual rent)
Small size5,0005,0005,0005,0005,000
Big size7,5007,5007,5007,5007,500
Giant size10,00010,00010,00010,00010,000
Telegraphic service
France (per word)5656565656
Europe (Sweden) (per word)105105111111105
Telex
Tariff per unit643643643643688
Telephone
Main subscription25,00025,00025,00025,00036,750
Urban communication5050355035
International communication 1/3535353535
Sources: Data provided by the Djibouti authorities; and Annuaires Statistiques deDjibouti, 1991.

The unit is variable (from 2 to 10 seconds) according to the country called.

Sources: Data provided by the Djibouti authorities; and Annuaires Statistiques deDjibouti, 1991.

The unit is variable (from 2 to 10 seconds) according to the country called.

Table 14.Djibouti: Tourism, 1990–94
19901991199219931994
Number of rooms335316330330330
Number of beds590523546545545
(In thousands)
Days multiplied by rooms122115120120120
Days multiplied by beds215191199199199
Number of tourists32,6993332227,62424,71546,595
Number of nights sold75,05043,80179,43198,11269,122
(In percent)
Occupancy rate34.922.939.949.334.7
Sources: Data provided by the Djibouti authorities; and Annuaires Statistiques deDjibouti, 1991.
Sources: Data provided by the Djibouti authorities; and Annuaires Statistiques deDjibouti, 1991.
Table 15.Djibouti: Expatriate Consumer Price Index by Product Group, 1991–95(1989 = 100)
Percentage

Weight
199119921993Oct.

1994
1994Oct.

1995
General index113.7117.6122.8132.3130.8138.8
Percentage change6.83.44.44.96.56.1
Food41118.3123.3128.1135.5132.9145.4
Water, gas, electricity6100.6102.2102.2113.3113.3113.3
Domestic help6127.2127.2127.2127.2127.2127.2
Maintenance14114.3116.8126.8141.3141.1149.3
Transport and tourism17106.6109.8114.9133.8133.6135.9
Miscellaneous16108.8113.2119.2122120.6126.1
Source: Data provided by the Djibouti authorities.
Source: Data provided by the Djibouti authorities.
Table 16.Djibouti: Demand for Employment and Registered Offers at the National Employment Service, 1990–94
19901991199219931994
New demands4,3264,8993,9924,2995,176
Offers9837518994471,340
Difference–3,343–4,148–3,093–3,853–3,836
Sum of nonsatisfied demands since 197747,04151,18954,28258,13561,971
Sources: Data provided by the Djibouti authorities.
Sources: Data provided by the Djibouti authorities.
Table 17.Djibouti: Number of Government Employees, 1991–95
19911992199319941995
Total number of government employees 1/10,08910,12310,35410,52311,801
(percentage change)4.00.53.60.51.2
Of which:
Interior2,3232,3232,3332,3333,147
Percent of total3232313131
National education1,2811,4481,5341,6051,618
Percent of total1820202122
Health1,0131,0241,0671,0671,152
Percent of total1414141415
Public works401401405406551
Percent of total66555
Agriculture341342356356422
Percent of total55555
Sources: Data provided by the Djibouti authorities.

Including National Defense.

Sources: Data provided by the Djibouti authorities.

Including National Defense.

Table 18.Djibouti: Employment and Wage Bill, 1991–95(In millions of Djibouti francs, except as noted)
19911992199319941995
Central Government
Number of employees7,2097,2437,5047,5417,631
Percentage change4.00.53.60.51.2
Wage bill14,23015,57815,92516,02616,000
Average annual wage2.02.22.12.12.1
Private sector and parastatals
Number of employees14,18617,612
Wage bill12,30012,208
Average annual wage (thousands)867727
Sources: Data provided by the Djibouti authorities; and Annuaire Statistique deDjibouti, 1991.
Sources: Data provided by the Djibouti authorities; and Annuaire Statistique deDjibouti, 1991.
Table 19.Djibouti: Public Investment Program, 1992–94(In millions of Djibouti francs)
19921993Est.

1994
Total
Primary sector644.8952.4347.01,944.2
Agriculture158.2282.845.5486.5
Livestock and fishing39.164.5221.6325.2
Rural water and power447.5605.179.91,132.5
Secondary sector2,191.51,055.0787.64,034.1
Industry
Mining92.8139.0– –231.8
Water2,013.1811.1621.93446.1
Electricity77.327.5– –104.8
Handicraft8.377.4165.7251.4
Infrastructure9,430.08,374.25,211.423,015.6
Roads3,236.52,235.01,353.06,824.5
Port4,921.22,995.1862.78,779.0
Air transport777.11,434.0688.02,899.1
Post and telecommunications35.2269.8377.8682.8
Construction121.014.55.5141.0
Urban development339.01,425.81,924.43,689.2
Tourism
Social sectors3,580.03,755.31,733.59,068.8
Population and employment107.7642.3718.11,468.1
Education and training1,537.81,517.4471.43,526.6
Health965.8772.2510.62,248.6
Culture and sports531.7698.510.41,240.6
Social development and women133.967.53.7205.1
Environment– –– –– –– –
Communication239.025.711.4276.1
Other64.131.77.9103.7
Administration, planning, and finance2,313.71,937.91,260.85,512.4
Economic management1,525.21,679.31,198.14,402.6
Administrative equipment788.5258.662.71,109.8
Total18,160.016,074.89,337.643,572.4
Of which:
State10,336.19,583.77,516.327,436.0
Public enterprises7,823.96,491.11,821.316,139.0
Source: Data provided by the Djibouti authorities.
Source: Data provided by the Djibouti authorities.
Table 20.Djibouti: Consolidated Fiscal Operations, 1991–95(In millions of Djibouti francs)
1991199219931994Prel.

1995
Revenue20,89822,46323,75125,59124,970
Tax revenue19,58321,19322,46124,32023,550
Nontax revenue1,3151,2701,2901,2711,420
Total expenditure33,21642,58041,98237,21735,293
Current expenditure, of which:25,74134,78335,11632,40929,918
Wages and salaries15,27319,83820,13520,99720,600
Material and supplies6,8019,6369,5235,7404,432
Maintenance1,023657555635568
Other 1/1,2582,1082,1622,535992
Capital expenditure7,4747,7976,8664,8085,375
Arrears (decrease = –)–2,7852863,1311,9842,482
Financing15,10319,83015,1009,6427,841
Domestic financing3,7768,0214,8993,2041,383
Bank financing–1245,6901,0431,0601,173
Nonbank financing3,9002,3313,8572,144210
External financing11,32611,80910,2016,4386,458
Grants9,89110,3667,3824,3144,867
Net borrowing323432,5542,063–1,679
Sources: Data provided by the Djibouti Authorities; and staff estimates.

Includes extrabudgetary outlays financed by external grants and loans.

Sources: Data provided by the Djibouti Authorities; and staff estimates.

Includes extrabudgetary outlays financed by external grants and loans.

Table 21.Djibouti: Government Revenue, 1991–95(In millions of Djibouti francs)
1991199219931994Prel.

1995
Total revenue20,89822,46323,75125,59124,970
Tax revenue19,58321,19322,46124,32023,551
Direct taxes6,8078,7289,1869,8439,435
Property tax742723911794708
Licences1,4041,3451,4051,2071,173
Tax on wages and salaries2,5923,0672,7193,1623,164
Tax on income and profits1,8471,5881,6732,0241,690
Tax on companies1,4861,2991,1511,5811,273
Other (BIC, BNC, and PVI)361288522444417
Other222224286615803
Patriotic contribution– –1,7822,1932,0421,897
Indirect taxes11,65611,17712,03813,10112,725
Domestic taxes8,7108,0498,0428,1547,858
Surcharge on Khat1,1431,4831,9722,2562,345
Surcharge on petroleum products4504554131,0731,091
Surcharge on tobacco559513707682592
Surcharge on alcohol446413603650537
Other surcharges348266301285302
Registration, tags and stamp duties1,1201,2871,2381,3761,391
Registration fees and tags540573584582656
Stamp duties580560506409433
Other– –154147386302
Nontax revenue1,3151,2701,2901,2711,419
Estate revenue16314916114194
Service revenue977398483356318
Other175551439489879
Property sales172207285128
Sources: Data provided by the Djibouti authorities; and staff estimates.
Sources: Data provided by the Djibouti authorities; and staff estimates.
Table 22.Djibouti: Government Revenue, 1991–95(In percent of GDP)
1991199219931994Prel.

1995
Total revenue25.826.928.429.628.4
Tax revenue24.225.426.828.126.8
Direct taxes8.410.511.011.410.7
Property tax0.90.91.10.90.8
Licenses1.71.61.71.41.3
Tax on wages and salaries3.23.73.23.73.6
Tax on income and profits2.31.92.02.31.9
Tax on companies1.81.61.41.81.4
Other (BIC, BNC, and PVI)0.40.30.60.50.5
Other0.30.30.30.70.9
Patriotic contribution0.02.12.62.42.2
Indirect taxes14.413.414.415.114.5
Domestic taxes10.89.69.69.48.9
Surcharge on Khat1.41.82.42.62.7
Surcharge on petroleum products0.60.50.51.21.2
Surcharge on tobacco0.70.60.80.80.7
Surcharge on alcohol0.60.50.70.80.6
Other surcharges0.40.30.40.30.3
Registration, tags and stamp duties1.41.51.51.61.6
Registration fees and tags0.70.70.70.70.7
Stamp duties0.70.70.60.50.5
Other– –0.20.20.40.3
Nontax revenue1.61.51.51.51.6
Estate revenue0.20.20.20.20.1
Service revenue1.20.50.60.40.4
Other0.20.70.50.61.0
Property sales0.00.20.20.30.1
Sources: Data provided by the Djibouti authorities; and staff estimates.
Sources: Data provided by the Djibouti authorities; and staff estimates.
Table 23.Djibouti: Government Revenue, 1991–95(In percent of total revenue)
1991199219931994Prel.

1995
Total revenue and grants100.0100.0100.0100.0100.0
Tax revenue93.894.394.695.094.3
Direct taxes32.638.938.738.537.8
Property tax3.53.23.83.12.8
Licences6.76.05.94.74.7
Tax on wages and salaries12.313.711.412.412.7
Tax on income and profits8.87.17.07.96.8
Tax on companies7.15.84.86.25.1
Other (BIC, BNC and PVI)1.71.32.21.71.7
Other1.11.01.22.43.2
Patriotic contribution– –7.99.28.07.6
Indirect taxes55.849.850.751.251.0
Domestic taxes41.335.833.931.931.5
Surcharge on Khat5.46.68.38.89.4
Surcharge on petroleum products2.12.01.74.24.4
Surcharge on tobacco2.72.33.02.72.4
Surcharge on alcohol2.11.82.52.52.2
Other surcharges1.71.21.31.11.2
Registration, tags and stamp duties5.45.75.25.45.6
Registration fees and tags2.62.62.52.32.6
Stamp duties2.82.52.11.61.7
Other– –0.70.61.51.2
Nontax revenue6.25.75.45.05.7
Estate revenue0.80.70.70.60.4
Service revenue4.61.82.01.41.3
Other0.82.51.81.93.5
Property sales– –0.80.91.10.5
Sources: Data provided by the Djibouti authorities; and staff estimates.
Sources: Data provided by the Djibouti authorities; and staff estimates.
Table 24.Djibouti: Government Expenditure, 1991–95(In millions of Djibouti francs)
1991199219931994Prel.

1995
Total expenditure33,21642,58041,98237,21735,293
Current expenditure25,74134,78335,11632,40929,918
Treasury24,31133,27833,62531,46728,736
Wages and salaries15,27319,83820,13520,99720,600
Budget allocation15,27315,57815,92516,026
General mobilization/demobilization– –4,2604,2104,971
Mobilization– –4,637
Demobilization– –– –– –334
Material and supplies6,8019,6369,5235,7404,432
Budget allocation6,8017,2326,3585,159
General mobilization– –2,4033,165581
Maintenance888657555635568
Transfers1,1072,0342,3752,1312,566
International organizations14080193
Special treasury accounts170120153
Publics entities276563543
Private entities251149138
Subsidies248248113
Scholarships7551,071817
Other367142
Reduction in arrears15973134
Other32921– –
Interest on public debt279510366371760
External debt361167146211
Domestic debt106178145469
Certificates of deposits43218080
Other – adjustment–1725726621,572190
Extra – Treasury1,4301,5051,4919421,182
Capital expenditure7,4747,7966,8654,8085,375
Treasury1,7531,7779031,038650
Budgetary9851,343502835
Food aid proceeds24210210418
Special accounts527332298185
Extra–Treasury5,7216,0195,9623,7704,725
Functional classification
Current expenditure (Treasury)24,31133,27833,62531,46728,736
General administration10,76812,26312,07310,905
Defense5,8285,0894,7024,648
Mobilization/demobilization– –6,6637,3755,553
Social services3,8754,4294,4884,509
Education2,0952,3792,5752,615
Health1,7802,0501,9131,894
Economic services1,8951,6871,5751,758
Agriculture400461483535
Public works472569538588
Maintenance work1,023657555635
Transfers1,9732,0032,3662,110568
Other32921
Interest on public debt279510366371
Other – Adjustment5595726621,572
Sources: Data provided by the Djibouti authorities; and staff estimates.
Sources: Data provided by the Djibouti authorities; and staff estimates.
Table 25.Djibouti: Government Consolidated Expenditure, 1991–95(In percent of GDP)
1991199219931994Prel.

1995
Total expenditure41.051.050.143.040.1
Current expenditure31.841.741.937.434.0
Traesury30.039.940.136.332.7
Wages and salaries18.923.824.024.223.4
Budget allocation18.918.719.018.5
General mobilization/demobilization– –5.15.05.7
Mobilization– –5.4
Demobilization– –– –– –0.4
Material and supplies8.411.511.46.65.0
Budget allocation8.48.77.66.0
General mobilization– –2.93.80.7
Maintenance1.10.80.70.70.6
Transfers1.42.42.82.52.9
International organizations0.20.10.2
Special treasury accounts0.20.10.2
Publics entities0.30.70.6
Private entities0.30.20.2
Subsidies0.30.30.1
Scholarships0.91.30.9
Other0.00.10.0
Reduction in arrears0.20.10.2
Other0.00.00.0
Interest on public debt0.30.60.40.4
External debt0.40.20.2
Domestic debt0.10.20.2
Certificates of deposits0.10.00.1
Other – Adjustment–0.20.70.81.80.2
Extra – Treasury1.81.81.81.11.3
Capital expenditure9.29.38.25.66.1
Treasury2.22.11.11.20.7
Budgetary2.22.11.11.20.7
Food aid proceeds0.30.10.10.0
Special accounts0.70.40.40.2
Extra – Treasury7.17.27.14.45.4
Functional classification
Current expenditure (Treasury)30.239.940.136.332.7
General administration13.314.714.412.6
Defense7.26.15.65.4
Mobilization/demobilization– –8.08.86.4
Social services4.85.35.45.2
Education2.62.83.13.0
Health2.22.52.32.2
Economic services2.22.01.92.0
Agriculture0.50.60.60.6
Public works0.60.70.60.7
Maintenance work1.10.80.70.7
Transfers2.42.42.82.4
Other0.00.00.0
Interest on public debt0.30.60.40.4
Other – Adjustment0.70.70.81.8– –
Sources: Data provided by the Djibouti authorities; and staff estimates.
Sources: Data provided by the Djibouti authorities; and staff estimates.
Table 26.Djibouti: Government Expenditure, 1991–95(In percent of total expenditure)
1991199219931994Prel.

1995
Total expenditure100.0100.0100.0100.0100.0
Current expenditure77.581.783.687.184.8
Treasury73.278.280.184.581.4
Wages and salaries46.046.648.056.458.4
Budget allocation46.036.637.943.1
General mobilization/demobilization– –10.010.013.4
Mobilization– –11.7
Demobilization– –– –– –0.8
Material and supplies20.522.622.715.412.6
Budget allocation20.517.015.113.7
General mobilization– –5.67.51.5
Maintenance2.71.51.31.71.6
Transfers2.84.85.75.77.3
International organizations0.30.20.5
Special treasury accounts0.40.30.4
Publics entities0.61.31.4
Private entities0.60.40.4
Subsidies0.60.60.3
Scholarships1.82.62.2
Other0.00.10.1
Reduction in arrears0.40.20.4
Other0.10.00.1
Interest on public debt0.81.20.91.02.0
External debt0.80.40.4
Domestic debt0.20.40.4
Certificates of deposits0.10.10.2
Other – adjustment–0.51.41.75.2
Extra – Treasury4.33.53.62.53.3
Capital expenditure22.418.316.312.815.2
Treasury5.34.22.22.81.8
Budgetary2.93.21.22.2
Food grant proceeds0.70.20.20.0
Special accounts1.60.80.70.5
Extra – Treasury17.114.114.210.013.4
Functional classification
Current expenditure (Treasury)73.278.280.184.581.4
General administration32.328.828.729.0
Defense17.512.011.212.4
Mobilization/demobilization– –15.617.614.8
Social services11.610.410.712.0
Education6.35.66.17.0
Health5.34.84.65.0
Economic services5.34.03.74.7
Agriculture1.21.11.11.4
Public works1.41.31.31.6
Maintenance work2.71.51.31.7
Transfers5.94.75.65.6
Other0.10.00.1
Interest on public debt0.81.20.91.0
Other – Adjustment1.71.31.64.2– –
Sources: Data provided by the Djibouti authorities; and staff estimates.
Sources: Data provided by the Djibouti authorities; and staff estimates.
Table 27.Djibouti: Financing of Consolidated Fiscal Operations, 1991–95(In millions of Djibouti francs)
1991199219931994Prel.

1995
Balance (payment–order basis and excl. grants)–12,318–20,117–18,231–11,626–10,324
Arrears(decrease=–)–2,7852863,1311,9842,482
Domestic arrears2863,0929932,467
Wages and salaries– –1,678–1651,497
Goods and services2861,4141,158970
On budget746211,054
On special accounts213806104
External arrears– –– –3999115
Balance(cash basis and excl. grants)–15,103–19,830–15,100–9,642–7,842
Financing15,10319,83015,1009,6427,842
Domestic financing3,7768,0214,8993,2041,384
Bank financing–1245,6901,0431,0601,174
Central Bank–8715,524593145193
Claims on government– –– –307227– –
Government deposits871–5,524–28682–193
Reserve fund–390– –– –132–135
Treasury cash in vaults899–853–81–3–22
Other362–4,671–205–47–36
Commercial banks747166450915981
Claims on government– –– –4462,079–381
Government deposits–747–166–41,164–1,362
Nonbank financing3,9002,3313,8572,144210
Public enterprises3,9892,3684,5731,825931
Short term deposits1,2383581,97535571
General mobilization– –700– –– –– –
Budget contribution51– –980750740
Loans1,2001,0251,150720120
Advances– –– –400– –– –
Certificates of deposits1,50028568– –– –
Other public entities8046261–5138
Customs duty bills2074–47565413
Other– –– –– –56– –
Amortization189157503340772
External financing11,32611,80910,2016,4386,458
Grants9,89110,3667,3824,3144,867
Treasury4,8924,5743,1172,123960
Extra – Treasury4,9995,7924,2652,1913,907
Net borrowing323432,5542,063–1,679
Drawings2,1521,7323,1882,5211,999
Amortization1,8291,6896344583,678
Debt relief1,1121,401265613,270
Memorandum items
Balance (payment – order basis and incl. grants)–2,427–9,751–10,349–7,312–5,457
Overall balance (cash basis and incl. grants)–5,212–9,465–7,718–5,328–2,975
Sources: Data provided by the Djibouti authorities; and staff estimates.
Sources: Data provided by the Djibouti authorities; and staff estimates.
Table 28.Djibouti: Financing of Consolidated Fiscal Operations, 1991–95(In percent of total financing)
1991199219931994Prel.

1995
Overall financing100.0100.0100.0100.0100.0
Domestic financing25.040.432.433.217.6
Bank financing–0.828.76.911.015.0
Central Bank–5.827.93.91.52.5
Claims on Government– –– –2.02.4– –
Government deposits5.8–27.9–1.90.9–2.5
Reserve fund–2.6– –– –1.4–1.7
Treasury cash in vaults6.0–4.3–0.5– ––0.3
Other2.4–23.6–1.4–0.5–0.5
Commercial banks4.90.83.09.512.5
Claims on Government– –– –3.021.6–4.9
Government deposits–4.9–0.8– –12.1–17.4
Nonbank financing25.811.825.522.22.7
Public enterprises26.411.930.318.911.9
Short term deposits8.21.813.13.70.9
General mobilization– –3.5– –– –– –
Budget contribution0.3– –6.57.89.4
Loans7.95.27.67.51.5
Advances– –– –2.6– –– –
Certificates of deposits9.91.40.5– –– –
Other public entities0.50.21.7–0.50.5
Customs duty bills0.10.4–3.16.80.2
Other– –– –– –0.6– –
Amortization1.30.83.33.59.8
External financing75.059.667.666.882.4
Grants65.552.348.944.762.1
Treasury32.423.120.622.012.2
Extra – Treasury33.129.228.222.749.8
Net borrowing2.10.216.921.4–21.4
Drawings14.28.721.126.125.5
Amortization12.18.54.24.746.9
Debt relief7.47.11.80.641.7
Sources: Data provided by the Djibouti authorities; and staff estimates.
Sources: Data provided by the Djibouti authorities; and staff estimates.
Table 29.Djibouti: Financing of Consolidated Fiscal Operations, 1991–95(In percent of GDP)
1991199219931994Prel.

1995
Balance (payment–order basis and excl. grants)–15.2–24.1–21.8–13.4–11.7
Arrears (decrease=–)–3.40.33.72.32.8
Domestic arrears0.33.71.12.8
Wages and salaries– –2.0–0.21.7
Goods and services0.31.71.31.1
On budget0.10.71.2– –
On special accounts0.31.00.1– –
External arrears– –– –0.10.3– –
Overall balance (cash basis and excl. grants)–18.7–23.7–18.0–11.1–8.9
Overall financing18.723.718.011.18.9
Domestic financing4.79.65.83.71.6
Bank financing–0.26.81.21.21.3
Central Bank–1.16.60.70.20.2
Claims on government– –– –0.40.3– –
Government deposits1.1–6.6–0.30.1–0.2
Reserve fund–0.5– –– –0.2–0.2
Treasury cash in vaults1.1–1.0–0.1– –– –
Other0.4–5.6–0.2–0.1– –
Commercial banks0.90.20.51.11.1
Claims on government– –– –0.52.4–0.4
Government deposits–0.9–0.2– –1.3–1.5
Nonbank financing4.82.84.62.50.2
Public enterprises4.92.85.52.11.1
Short term deposits1.50.42.40.40.1
General mobilization– –0.8– –– –– –
Budget contribution0.1– –1.20.90.8
Loans1.51.21.40.8– –
Advances– –– –0.5– –– –
Certificates of deposits1.90.30.1– –– –
Other public entities0.10.10.3–0.1– –
Customs duty bills– –0.1–0.60.8– –
Other– –– –– –– –– –
Amortization0.20.20.60.40.9
External financing14.014.112.27.47.3
Grants12.212.48.85.05.5
Treasury6.05.53.72.51.1
Extra – Treasury6.26.95.12.54.4
Net borrowing0.40.13.02.4–1.9
Drawings2.72.13.82.92.3
Amortization2.32.00.80.54.2
Debt relief1.41.70.30.13.7
Memorandum items
Balance (payment – order basis and incl. grants)–3.0–11.7–13.0–8.4–6.2
Overall balance (cash basis and incl. grants)–6.4–11.3–9.2–6.2–3.4
Sources: Data provided by the Djibouti authorities; and staff estimates.
Sources: Data provided by the Djibouti authorities; and staff estimates.
Table 30.Djibouti: Factors Affecting Changes in Domestic Liquidity, 1991–95
1991199219931994Prel.

1995
(In millions of Djibouti francs)
Net foreign assets3,405–9,6491,862–1,433–1,992
Monetary authorities 1/1,135–2,966–1,478620–1,277
Commercial banks2,270–6,6833,340–2,053–715
Net domestic assets–2,6515,984–3,0732,2683,820
Domestic credit–1,2875,178–1,1471,6715,641
Net credit to Central Government 1/–1245,6909941,0641,173
Credit to the rest of the economy 2/–1,163–512–2,1416074,468
Other items (net)–1364806–1926597–1,821
Money and quasi–money754–3665–12118351,828
Currency in circulation2282,068–930292–1,326
Demand deposits2434835612–394–657
Time deposits–1,908–6,568–8939373,811
(Chance from year earlier, as percent of broad money at beginning of period)
Net foreign assets5.8–16.23.3–2.6–3.6
Monetary authorities1.9–5.0–2.61.1–2.3
Commercial banks3.9–11.26.0–3.8–1.3
Net domestic assets–4.510.0–5.54.16.9
Domestic credit–2.28.7–2.03.110.2
Net credit to the Central Government–0.29.51.81.92.1
Credit to the rest of the economy–2.0–0.8–3.81.18.0
Other items net2.3–1.43.4–1.1–3.3
Money and quasi–money1.3–6.2–2.21.53.3
Memorandum items:
Official reserves as percent of monetary cover 3/168.3125.3122.7123.7125.6
Currency in circulation as percent of broad money15.520.319.019.316.3
Demand deposits as percent of broad money34.838.640.639.336.9
Time deposits as percent of broad money49.641.140.441.546.8
Sources: Data provided by the Djibouti authorities; and staff estimates.

In the monetary accounts, transactions associated with the inflows of exceptional grants in 1990–91, and their subsequent utilization are reflected initially in net foreign assets and government deposits. In the fiscal accounts, the grants have been registered at the time of utilization.

Including customs duty bills.

The monetary cover is equivalent to the sum of currency outside banks, currency inside banks, and currency held at the Treasury.

Sources: Data provided by the Djibouti authorities; and staff estimates.

In the monetary accounts, transactions associated with the inflows of exceptional grants in 1990–91, and their subsequent utilization are reflected initially in net foreign assets and government deposits. In the fiscal accounts, the grants have been registered at the time of utilization.

Including customs duty bills.

The monetary cover is equivalent to the sum of currency outside banks, currency inside banks, and currency held at the Treasury.

Table 31.Djibouti: Monetary Survey, 1991–95
1991199219931994Prel.

1995
Net foreign assets45,00735,35837,22235,78733,795
Monetary authorities 1/17,77214,80613,32813,94812,671
Commercial banks27,23520,55223,89421,83921,124
Net domestic assets14,57120,55217,48219,75023,570
Domestic credit28,36633,54532,39834,06839,709
Net credit to the Central Government 1/–7,575–1,885–8911731,346
Credit to the private sector 2/35,94135,42933,28833,89538,363
Other items (net)–13,795–12,992–14,915–14,318–16,139
Money and quasi–money59,57855,91354,70455,53757,365
Currency in circulation9,26311,33110,40110,6939,367
Demand deposits20,76121,59622,20921,81421,157
Time deposits29,55422,98622,09423,52726,841
(Annual chances in percent of beginning
(broad money stock) 3/
Net foreign assets5.8–16.23.3–2.6–3.6
Monetary authorities1.9–5.0–2.61.1–2.3
Commercial banks3.9–11.26.0–3.8–1.3
Net domestic assets–4.510.0–5.54.16.9
Net credit to the Central Government–0.29.51.81.92.1
Credit to the private sector–2.0–0.8–3.81.18.0
Other items (net)2.3–1.43.4–1.1–3.2
Money and quasi–money1.3–6.2–2.21.53.3
Sources: Data provided by the Djibouti authorities; and staff projections.

In the monetary accounts, transactions associated with the inflows of exceptional grants in 1990–91, and their subsequent utilization are reflected initially in net foreign assets and government deposits. In the fiscal accounts, the grants have been registered at the time of utilization.

Including customs duty bills.

Data for June 1995 cover a one–year period starting June 1, 1994.

Sources: Data provided by the Djibouti authorities; and staff projections.

In the monetary accounts, transactions associated with the inflows of exceptional grants in 1990–91, and their subsequent utilization are reflected initially in net foreign assets and government deposits. In the fiscal accounts, the grants have been registered at the time of utilization.

Including customs duty bills.

Data for June 1995 cover a one–year period starting June 1, 1994.

Table 32.Djibouti: Analytical Accounts of the Monetary Authorities, 1991–95(In millions of Djibouti francs: end of period)
1991199219931994Prel.

1995
Foreign assets17,77214,82313,34713,96212,688
Monetary cover 1/10,56011,81410,85911,27710,089
Other foreign assets 2/6,8492,4562,4512,6852,567
SDR holdings483737– –15
Reserve position in the Fund315516
Claims on Government– –– –307534534
Claims on commercial banks3739404042
Reserve money9,89912,18711,25011,86910,370
Currency outside banks9,26311,33110,40110,6939,367
Currency issued10,56011,81410,85911,27710,089
Less: Currency held by treasury9449125– 2223
Less: Banks’ cash353392433562699
Currency with banks353392433562699
Banks’ deposits283464416614304
Foreign liabilities– –17191417
Government deposits6,480956719797605
Of which:3,990842137– –– –
Deposits of exceptional grants 2/
Other items (net)1,4301,7021,7061,8562,272
Sources: Data provided by the Djibouti authorities.

The monetary cover is equivalent to the sum of currency outside banks, currency inside banks, and curre the Treasury.

Transactions associated with the inflows of exceptional grants in 1991 and their subsequent utilization ar reflected initially in foreign assets and government deposits.

Sources: Data provided by the Djibouti authorities.

The monetary cover is equivalent to the sum of currency outside banks, currency inside banks, and curre the Treasury.

Transactions associated with the inflows of exceptional grants in 1991 and their subsequent utilization ar reflected initially in foreign assets and government deposits.

Table 33.Djibouti: Analytical Accounts of the Commercial Banks, 1991–95(In millions of Djibouti francs; end of period)
1991199219931994Prel.

1995
Reserves6478689261,1481,065
Foreign assets40,04935,56138,96637,59437,314
Correspondent accounts37,67034,08835,92536,13535,685
Other2,3791,4733,0421,4591,629
Claims on the Government– –– –4462,5252,144
Claims on the economy35,59435,15632,54033,80138,247
Claims on public enterprises489444483419464
Claims on the private sector35,10534,71232,05733,38237,783
Total assets/liabilities76,29071,58572,87875,06878,770
Demand deposits20,76121,59622,20821,81421,157
Time deposits29,55422,98622,09323,03026,841
Foreign liabilities12,81415,00915,07415,75516,190
Correspondent accounts8,2779,1257,1818,7928,452
Demand deposits2,1043,9334,2913,7483,402
Time deposits1,0281,5741,4101,4682,514
Other1,4053762,1911,7471,822
Government deposits1,0959299252,089727
Credit from the Central Bank6939404040
Other items (net)11,99711,02712,54012,34013,815
Source: Data provided by the Djibouti authorities.
Source: Data provided by the Djibouti authorities.
Table 34.Djibouti: Analytical Accounts of the Development Bank of Djibouti, 1991–95(In millions of Djibouti francs: end of period)
1991199219931994Prel.

1995
Cash and bank deposits51025126116779
Claims on private sector2,8604,2024,4724,2774,126
Claims on the Government2944148469195
Total Assets/Liabilities3,3994,4974,8814,9134,401
Time deposits6663131
Long–term foreign liabilities527644712610562
Government lending funds1,4631,9991,7881,5421,533
Capital accounts1,1331,5291,5571,5571,557
Other items, net2703198181,173718
Source: Data provided by the Djibouti authorities.
Source: Data provided by the Djibouti authorities.
Table 35.Djibouti: Structure of Interest Rates, 1991–95(In percent per annum)
Time deposits 1/Lending Rate
DJFUS$Min. Max.
19914.5–8.04.0–7.012.5 – 16.0
19922.3–3.82.0–3.712.5 – 16.0
19932.3–3.02.0–3.012.5 – 16.0
19943.0–4.03.0–4.012.5 – 16.0
19953.0–4.03.0–4.012.0 – 18.0
Sources: Data provided by the Djibouti authorities.

The minimum balance for time deposits in Djibouti francs is DF 1,000,000 with a minimum term of one month. The minimum balance of time deposits in U.S. dollars is US$5,000 with a minimum term of one month.

Sources: Data provided by the Djibouti authorities.

The minimum balance for time deposits in Djibouti francs is DF 1,000,000 with a minimum term of one month. The minimum balance of time deposits in U.S. dollars is US$5,000 with a minimum term of one month.

Table 36.Djibouti: Balance of Payments, 1991–95 1/
1991199219931994Prel.

1995
(In millions of U.S. dollars)
Exports, f.o.b.71.653.271.256.433.5
Of which: Locally produced goods17.015.712.119.313.1
Imports, f.o.b.258.2259.1255.1237.1204.9
Of which: for domestic use191.8208.6196.8191.6177.3
Trade balance–186.6–205.9–183.9–180.7–171.5
Services and income (net)83.660.172.885.392.1
Credit193.5177.5192.0182.0187.9
Debit–109.8–117.4–119.1–96.7–95.9
Of which: interest due–1.9–4.3–2.9–3.4–3.8
Unrequited transfers82.174.580.255.367.0
Official89.983.986.763.376.2
Private–7.9–9.4–6.5–8.0–9.2
Current account (including official transfers)–21.1–71.4–30.9–40.1–12.4
Current account (excluding official transfers)–111.0–155.2–117.6–103.4–88.6
Capital account27.554.722.241.0–12.0
Foreign direct investment2.32.31.41.43.2
Public capital15.036.436.826.2–9.4
Drawings22.643.443.634.418.9
Amortization–7.6–7.0–6.8–8.2–28.3
Private capital10.216.0–16.013.4–5.8
Commercial banks–1.737.6–18.811.64.0
Other capital and errors and emissions12.0–21.62.81.8–9.8
Overall balance (deficit –)6.4–16.7–8.70.9–24.4
Financing (decrease –)–6.416.78.7–0.924.4
Payments arrears (decrease –) 2/– –– –0.42.6–1.2
Net foreign assets of the Central Bank (increase –)–6.416.78.3–3.57.2
Assets–6.416.78.3–3.57.2
Liabilities– –– –– –– –– –
Of which: Use of Fund credit– –– –– –– –– –
Exceptional financing– –– –– –– –18.4
Financing gap– –– –– –– –– –
(In percent of GDP)
Memorandum items
Imports for domestic use42.144.441.839.335.8
Exports of locally produced goods3.73.32.64.02.7
Im ports by French army 3/27.724.946.230.230.7
Current account (including official transfers)–4.6–15.2–6.6–8.2–2.5
Current account (excluding official transfers)–24.4–33.0–25.0–21.2–17.9
Outstanding debt38.545.052.857.054.0
Debt service payments (in percent of exports of locally produced goods and nonfactor services)5.06.45.16.17.4
Debt stock (in percent of exports of locally produced goods and nonfactor services)90.2120.6130.1146.4143.6
Official reserves
In millions of U.S. dollars100.083.475.071.471.0
In number of months of imports (domestic use)6.34.84.64.94.8
Sources: Data provided by the Djiboutian authorities; and staff estimates.

Data are not strictly comparable with those in previous reports due to changes in coverage.

The reduction in arrears is mostly accounted for by public enterprises.

This information is provided to facilitate comparison with previous reports, where imports by the French Army were included as both impoi

Sources: Data provided by the Djiboutian authorities; and staff estimates.

Data are not strictly comparable with those in previous reports due to changes in coverage.

The reduction in arrears is mostly accounted for by public enterprises.

This information is provided to facilitate comparison with previous reports, where imports by the French Army were included as both impoi

Table 37.Djibouti: Direction of Trade, 1991–94 1/
1991199219931994
I. Imports
Industrial countries51.452.047.841.7
France16.315.413.813.7
United Kingdom10.010.39.75.6
Italy5.26.15.85.9
Japan6.56.55.04.7
Netherlands3.63.53.53.7
Other countries9.710.210.08.1
Africa5.65.45.98.1
Of which: Ethiopia5.14.95.46.4
Asia25.626.127.529.3
Taiwan Province of China2.82.73.02.2
Korea5.75.86.50.0
Singapore3.13.03.52.8
Thailand7.46.98.113.8
Other countries6.57.66.510.5
Middle East15.314.616.718.0
Bahrain6.15.87.12.1
Saudi Arabia7.26.97.512.4
Other countries2.01.92.13.5
Other2.11.92.02.9
Total100.0100.0100.0100.0
II. Exports100.0100.0100.0100.1
Industrial countries10.24.84.23.7
Africa67.469.270.873.2
Somalia42.745.548.439.0
Ethiopia24.723.722.434.2
Midde East22.322.022.221.4
Yemen, Republic of21.821.421.720.8
Saudi Arabia0.50.60.50.6
Other0.14.02.81.8
Total100.0100.0100.0100.0
Source: IMF, Direction of Trade Statistics.

Based on data of trading partner countries.

Source: IMF, Direction of Trade Statistics.

Based on data of trading partner countries.

Table 38.Djibouti: Domestically Consumed Imports Classified by Main Product Groups, 1991–95(In millions of Djibouti francs)
1991199219931994June

1995
Food and beverages9,6429,5799,8129,7335,340
Tobacco1,0009151,069935149
Khat 1/2,2422,9203,8954,8232,274
Minerals48937332233344
Petroleum products3,5243,1422,8952,7781,500
Chemical products2,3422,6512,5842,4491,288
Plastic products741590638547229
Paper products, newspapers, books887891918763461
Clothing and footwear5,2463,8714,1203,5302,026
Stone, cement, ceramic, and glass products318675468436179
Wood, wood products, and furniture9501,014961996275
Metals and metal products2,4162,4691,7351,673801
Machinery and electric appliances3,8625,0395,1364,2122,517
Vehicles and transport equipment2,7033,2052,9682,5661,349
Other products673541611487302
Other transactions1,0679851,0931,705361
Total37,03537,87538,13236,26118,733
Total (including other transactions)38,10238,86039,22537,96619,094
Sources: Data provided by the Djiboutian Authorities; and staff estimates.

1995 estimate

Sources: Data provided by the Djiboutian Authorities; and staff estimates.

1995 estimate

Table 39.Djibouti: External Debt, Debt Service Payments, and International Reserves, 1991–95(In millions of U.S. dollars)
1991199219931994Prel.

1995
Medium – and long–term debt175.3211.6248.9277.7267.0
Bilateral loans, of which81.390.882.594.680.1
France6.56.69.29.29.1
Italy21.825.629.635.334.9
Kuwait23.723.723.827.427.1
Saudi Arabia22.226.112.114.48.1
Multilateral loans, of which94.0120.8166.3183.1187.0
African Development Fund32.641.252.857.960.4
Arab Fund for Economic and Social
Development18.116.115.014.514.3
International Development Association30.133.139.641.143.8
Amortization7.67.06.88.228.3
Disbursements22.643.443.634.418.9
Long–term interest payments2.14.32.93.43.8
International Reserves100.083.475.178.671.4
Foreign exchange9880.374.978.571.4
SDRs0.30.20.2– –– –
Reserve position in the Fund1.82.9– –– –– –
Memorandum items:
External debt as percent of GDP38.545.052.857.054.0
Total debt service in percent of exports of locally
produced goods and nonfactor services5.06.45.16.17.4
Stock of external arrears (in millions of U.S. Dollars)– –– –0.382.971.80
External debt– –– –0.222.351.09
Bilateral debt– –– –0.220.220.44
Multilateral debt– –– –– –2.130.64
Suppliers– –– –0.160.620.71
Average interest rate on total debt (in percent)1.212.031.161.221.39
Sources: Data provided by Djibouti authorities; and the World Bank Debtor Reporting System; and staff estimates.
Sources: Data provided by Djibouti authorities; and the World Bank Debtor Reporting System; and staff estimates.
Table 40.Djibouti: Exchange Rate Data, Period Averages, 1990–95
Nominal

Effective

Exchange

Rate

(1980=100)
French

Franc

per Us$
French

Franc

per

Djibouti

Franc
Us$

per

SDR
1990Q1106.215.740.0321.316
Q2106.785.640.0321.311
Q3101.885.340.0301.371
Q496.475.060.0281.433
1991Q198.415.210.0291.415
Q2106.215.880.0331.338
Q3106.345.930.0331.337
Q4101.275.550.0311.385
1992Q1100.655.510.0311.389
Q2100.505.440.0311.390
Q394.694.960.0281.453
Q499.115.260.0301.404
1993Q1102.515.550.0311.376
Q299.265.460.0311.413
Q3101.605.810.0331.403
Q4102.855.920.0331.373
1994Q1103.095.860.0331.388
Q2100.295.690.0321.415
Q396.305.350.0301.458
Q495.745.310.0301.467
1995Q194.085.170.0291.493
Q24.920.0281.566
Q391.754.950.0281.517
Q493.294.930.0281.493
Sources: IMF, Information Notice System; and International Financial Statistics.
Sources: IMF, Information Notice System; and International Financial Statistics.
APPENDIX I Djibouti: Summary of the Tax System

(as of February 29, 1995)

TaxNature of TaxExemptions and DeductionsAssessment Base and Rates
1. Taxes on Income, Profits, and Capital Gains
1.1 Individual
– Tax on wages and salariesA progressive monthly tax levied on all wages, benefits, and pensions paid in Djibouti. The tax, payable by the employee, is withheld from wages and salaries.Exemptions:

  • Monthly wages below DF 25,000

  • Certain allowances and reimbursements of actual occupational expenses.

Monthly assessable income Rate
  • DF 25,000 - 30,000:

  • DF 30,000 - 100,000:

  • DF 100,00 - 200,000:

  • DF 200,00 - 400,000:

  • DF 400,00 - 600,000:

  • DF 600,000 - 800,000:

  • over DF 800,000

2%

6%

10%

14%

19%

25%

32%
– Patriotic contribution 1/A flat monthly tax levied on all Djiboutian wages and salaries.Total of wages, benefits, and pensions less than DF 60,000 per month.10 percent of taxable income
1.2 Corporate
– Tax on professional earningsLevied on profits and similar income of members of the professions and on the remuneration of business operators with a controlling interest in their companies.Exemptions:
  • Net profits of less than DF 600,000 a year, or annual turnover below DF 5 million for lump sum tax regime.

20 percent of profits
20 percent of the amounts paid, after deduction of 10 percent.
– Tax on business profits of individualsLevied on the profits of unincorporated industrial, commercial, or craft enterprises.Exemptions:
  • Net profits below DF 600,000 a year

  • As provided for in Investment Code

  • Income from real estate

  • Annual turnover below DF 50 million for lump sum tax regime

20 percent of net taxable annual profits
– Tax on company profitsLevied on the profits of joint-stock companies, cooperatives, and partnerships (including government-owned enterprises, mixed-economy enterprises, and industrial or commercial public enterprises).Exemptions:
  • Income from real estate As provided for in Investment Code.

20 percent of net taxable annual profits
The following three categories of taxpayers are subject to a system of estimated payments pending determination of their assessable profits for purposes of the income and profits tax (see 1.3 or 1.4 [sic)):
  • itinerant enterprises; livestock importers; and qat importers.

Charchari:
  • 10 percent of c.i.f. price of imported merchandise plus indirect duties

Livestock importers:
  • DF 800 per sheep or goat DF 1,000 per head of cattle

Oat importers:
  • DF 100 per kilogram of qat

1.3 Other Unallocated Taxes on Income, Profits, and Capital Gains
– Tax on real estate capital gainsLevied on buildings upon transfer and payable by transferrer. Same for land without buildings.Exemptions:
  • Principal residences Real estate assets of enterprises Sales below DF 100.000

5 percent of net capital gain
2. Taxes on Property
2.1 Recurrent Taxes on Immovable Property
– Real property tax on buildingsAssessed on the annual rental value of the property beginning with the sixth year following the year of building completion. Buildings may be exempted for a maximum of ten years after completion under the Investment Code.Exemptions:
  • Public buildings Religious and sports facilities Industrial facilities (Investment Code)

21 percent of net taxable income (rental value less 20 percent)
Deductions:
  • 20 percent of rental value for amortization, maintenance, and insurance.

Exemptions:
  • Government property

  • Land used for schools, sports, humanitarian, or social welfare purposes

  • Agricultural land in farming use outside urban areas

  • Land owed by international organizations, embassies, and consulates of accredited countries

– Real property tax on unbuilt landLevied on unbuilt land, on the land under buildings temporarily exempt from the real property tax on buildings during the exemption period, and on vacant land belonging to a building to the extent that it exceeds three times the built-on area.21 percent of rental value
– Tax on undeveloped real propertyLevied on real property not recorded as being in use by January 1 of the tax year, or no longer in use for a period of over five years.Exemptions:

  • Public property

  • Agricultural plots

  • Lots belonging to international organizations, embassies, and consulates of accredited countries

5 percent of assessed value
– Garbage removal taxLevied yearly from the owners, users, or principal tenants of real property on the same basis as the real property tax on buildings.Exemptions:

  • Industrial enterprises

  • Buildings in governmental use

  • Buildings without garbage removal services

4.5 percent of rental value after 20 percent deduction
2.2 Taxes on Financial and Capital Transactions
– Registration dutyPayable on documents under private seal, public civil documents, judicial documents, verbal leases, and transfers inter vivos or causa mortisExemptions:

  • Transactions to which the Government is a party

  • Investment Code approvals

  • Miscellaneous (see Registration and Stamp Duty Code)

  • Annual lease less than DF 300,000.

Prorated duty:
  • 5 percent and 10 percent

Prorated duty applies to all legal documents involving obligation, release, condemnation, placement or payment of money or securities, transfers of real and movable property, and insurance premiums.

A fixed duty is collected on all other legal documents.

A progressive duty is payable on transfers inter vivos or causa mortis.
Fixed duty:
  • 1st category:

  • 2nd category:

DF 2,000

DF 6,000

DF 2,000

DF 4,000

DF 6,000
Progressive duty:
  • See Registration Code schedule

– Recordation dutyLevied on the provisional or definitive grant or the conveyance of real property, and for the registration or cancellation of mortgages. Subrogation of mortgages is not subject to the duty. Definitive grants are subject to prior assessment.Exemptions:
  • The Government Investment Code approvals

Recordation:

  • provisional: 4 percent of the price set by the Government

  • definitive: 2 percent of assessed value

Conveyance: 2 percent of assessed

  • value

Mortgage:

  • registration: 2 percent

  • cancellation: 2 percent

3. Domestic Taxes on Goods and Services
3.1 Taxes on Specific ServicesLevied upon filing of applications for construction permits with the Ministry of Public Works, Town Planning, and Housing.Exemptions:

  • Government buildings

  • Investment Code approvals

1.5 percent of planned construction cost
– Tax on construction permits
– Gambling levy30 percent of the gross proceeds from gambling
3.2 Taxes on Use of Goods or on Permission to Use Goods or to Perform Activities
Patent (business license duty)Payable by all persons engaged in an industrial or commercial activity within Djibouti. A special annual patent is levied on industrial, commercial, or agricultural companies head-quartered in Djibouti but operating mainly abroad. The same applies to holding companies and financing companies headquartered in Djibouti. For collection purposes, a distinction is made between the regular patent and the prepaid patent. The official assessment for the latter is used only to finalize the amount; they apply mainly to business of an itinerant nature (e.g., traveling salesmen). (Excludes the surcharge of 7.5 percent levied for the International Chamber of Commerce and Industry.)Exemptions:

  • The Government and public enterprises

  • Certain occupations (e.g., midwives, fishermen)

  • As provided for in the Investment Code; the term and conditions of the exemption are set forth in the approval decision.

  • ’Importer patents are not required for transshipment, transit, provisioning, and fueling of ships and aircraft or for re–export.

The patent is made up of a fixed duty and a prorated one, both specified for each industry in the general schedule of patents.
Fixed duty: Set for each enterprise carrying out operations subject to the patent. Persons engaged in various kinds of business through a single enterprise pay the patent only on the operations subject to the highest duty, except where the operations are defined as not consistent for purposes of taxation (non cumulables (NC)): (e.g., an importer’s patent: NC).
Prorated duty: Based on the rental value of the premises, whatever their type, in which the occupations subject to the duty are performed.
– License feesPayable for the entire calendar year by all persons authorized to sell beverages. The amount depends on the type of establishment and on its hours and location.Class

1 A:

1 B:

2 A:

2 B:

3:

4:

5:

6:

7:

8:
Rate

DF 350,000

DF 290,000

DF 230,000

DF 190,000

DF 120,000

DF 100,000

DF 100,000

DF 15,000

DF 1,500

DF 120,000
– Market taxFor permits to sell at retail in a market.Covered market: DF 10 per day

Covered stalls: DF 210 per month

Pavilion:
  • Full place--DF 2,000 per month

  • Half place--DF 1,000 per month

– Weights and measures dutyAnnual duty levied by the Economic Affairs and Prices Service.DF 100-5,000 per weighing or measuring device
– Drivers’ license and registration feeSpecific fees apply to the issue of drivers’ licenses, registrations, and transfer authorizations.Driver’s license:
  • Issue:

  • Change:

  • Duplicate:

DF 7,000

DF 7,000

DF 5,000
Registration:
  • DF 4,500 per HP (DF 90,000 maximum)

– Differentiated motor vehicle feeLevied on all motor vehicles.1-4 HP

5-9 HP

10-20 HP

Over 20 HP
DF 10,000

DF 18,000

DF 24,000

DF 30,000
– Recreational boat registration feeLevied annually on boat owners in accordance with engine size.Exemptions:
  • Professional fishermen Dhows

DF 500 per actual HP
3.3 Domestic consumption tax (TIC)Levied on all goods imported into and consumed in Djibouti.Exemptions:

  • Diplomatic privileges

  • Investment Code approval

  • Special agreements

  • Specific decrees or arrêtés

  • Certain products as provided for in the Tariff Law

Base: c.i.f. value or reference value
Standard rates: 10 percent

20 percent

(valeurs mercuriales)
Luxury Roods: 33 percent
Vegetable oil, sugar, food paste, powder milk.Rate: 10 percent
– Dairy product taxLevied on imports of:
  • Milk and cream (fresh, nonconcentrated, unsweetened)

  • Condensed milk (sweetened and unsweetened)

  • Other milk products (yoghurts) miscellaneous beverages containing milk (chocolate milk)

Exemptions:
  • Milk for children or medical use

DF 70 per kilogram



DF 70 per kilogram



DF 160 per kilogram



DF 70 per kilogram
– Fruit juice taxLevied on imports of:
  • Citrus Juices

  • Tomato juice

  • Other fruit juices

  • Other carbonated flavored beverages

DF 160 per kilogram

DF 160 per kilogram

DF 160 per kilogram

DF 160 per kilogram
– Meat inspection taxLevied for inspection of meat and other imported foodstuffs of animal origin.Meat, fish, cheese,. yogurt, honey: DF 100 per kilogram

Milk, eggs: DF 20 per kilogram
– Mineral water taxLevied on imported mineral water.DF 14 per liter
– Alcohol surtaxLevied on alcohol, alcoholic beverages, perfumes, and similar products.Exemptions:
  • Denatured alcohol Nondenatured ethanol, 80* or higher, for medicinal use

Table wines: DF 50 per liter

Other wines: 80 percent of c.i.f. value

Other alcoholic beverages: DF 2,350 per liter of alcohol content

Toiletries: DF 300 per liter of alcohol content

Perfumes: DF 2,500 per liter of alcohol content.
– Petroleum products surtaxLevied on imported petroleum products.Exemptions:

butane
Regular and premium gasoline: DF 24.50 per liter

Gas oil: DF 3 per liter

Other: DF 2 per liter
– Qat surtaxLevied on all qat imports for local consumptionDF 750 per kilogram gross weight.
– Tobacco surtaxLevied on all tobacco imported for domestic consumptionDF 20,000 per carton.
Taxes on International Trade and Transactions
4.1 Export Duties
– TIC on re–exported tobacco and alcoholLevied on tobacco and alcohol in transit and re–exported by sea, air, or land.Exemptions
  • Loaded ‘on ships of 200 tons and more

  • Loaded on wagons inside the port area

  • Accompanied by documentation showing an agreed destination.

10 percent of c.i.f. value
4.2 Other Taxes on International Trade and Transactions
– Health certificateIssued at import, export, and transit of livestock on the hoof and of leather and hides.Livestock:
  • Cattle and camels: DF 1,000 per head Sheep and goats: DF 200 per head

Leather and hides: DF 6.000 per ton
– Nonresident taxLevied on compensation paid to individuals and corporations not domiciled in Djibouti. Taxable compensation consists of:
  • remuneration paid for services of any kind rendered or used in Djibouti; royalties received for use of copyright, patents, trademarks, and similar intellectual property.

Exemptions:

  • International transport operations and related services

  • Charter and repair of vessels and aircraft used in international transport

  • Equipment installation costs.

10 percent of gross compensation
5. Other Duties and Taxes
5.1 Stamp Taxes
– Stamp dutyRequired on all civil, judicial, and extrajudicial documents and all legal deeds and writs. Passports, visas, and alien identity cards are subject to stamp duty.Exemptions:

  • Diplomatic corps and international organizations on their leases

  • Miscellaneous (see Registration and Stamp Tax Code)

DF 500 per sheet
Note 1: A 15 percent ad valorem duty applies to insurance premiums
Note 2: Passports, visas, and alien identity cards:

DF 1,500-20,000
Source: Information provided by the Djibouti authorities.

A temporary tax introduced in 1992 to finance exceptional expenditures associated with the general mobilization. It currently applies to all wage earners. For government and public enterprise employees, it is called budget withholding.

Source: Information provided by the Djibouti authorities.

A temporary tax introduced in 1992 to finance exceptional expenditures associated with the general mobilization. It currently applies to all wage earners. For government and public enterprise employees, it is called budget withholding.

APPENDIX II: Djibouti - Public Agencies and Enterprises

1. Social security agencies

Caisse Nationale de Retraite, CNR, Ministry of Finance

Caisse des Prestations Sociales, CPS, Ministry of Labor

Coopérative Militaire de Retraite, Ministry of Defense

Service Medical Inter-entreprises, SMI, Ministry of Labor

2. Public agencies

Institut Scientifique d’Etudes et de Recherches, ISERST, Presidency

Palais du Peuple, Presidency

Chambre de Commerce International de Djibouti, CCID, Ministry of Commerce

Office National d’Approvisionnement et de Commercialisation, ONAC, Ministry of Commerce, Transport and Tourism

Etablissement Public des Hydrocarbures, EPH, Ministry of Commerce

Office National des Refugiés et Sinistrés (ONARS) - Presidency

Central Regional Inter-Linguistique (CRIL) - Ministry of Education

Office National de Tourisme et l’Artisanat

3. Nonfinancial public enterprises

Electricité de Djibouti, EdD, Ministry of Industry

Office National des Eaux de Djibouti, ONED, Ministry of Industry

Aéroport International de Djibouti, AID, Ministry of Commerce

Port Autonome International de Djibouti, PAID, Ministry of Transport and Telecommunications

Office des Postes et Télégraphes, OPT, Ministry of Interior

Société des Telecommunications Internationales, STID, Ministry of Interior

Chemin de Fer Djibouti-Ethiopien, CDE, Ministry of Commerce, and the Government of Ethiopia

Société Hotelière de l’Etat, Ministry of Commerce

Société des Eaux de Tadjourah, Ministry of Industry

Société Immobilière de Djibouti, SID, Presidency and Ministry of Public Works

Laiterie de Djibouti, LDJ, Ministry of Industry

Magasins Généraux, Chamber of Commerce

Société Aliments Bétail, (SAB), Ministry of Agriculture

4. Financial public enterprises

Banque Nationale de Djibouti, BND

Banque de Développement de Djibouti, BDD

APPENDIX III Djibouti: Institutional Aspects of Monetary Management 1/

The following provides background information on the main features of monetary management in Djibouti. It focuses primarily on the issues relating to the currency board arrangement (CBA), namely the role of the Central Bank and monetary policy; lending policy to the Government; the interbank money market; the determination of interest rates; and the state of banking supervision.

1. Djibouti’s CBA

CBA was introduced for the Djibouti Franc in March 1949 by the French authorities. At that time, money issue for the Côte Francaise des Somalis was transferred from the Banque d’Indochine to the Djibouti Treasury and the Djibouti Franc was linked to the U.S. dollar. 2/ The aim was to equip Djibouti with a strong convertible currency in order to boost its development as a transit center for regional trade. The U.S. dollar-Djibouti Franc parity was established on the basis of the gold value of the Djibouti Franc at that time, that is DF 214.4 per U.S. dollar. To demonstrate its attachment to the CBA, the Djibouti authorities chose not to allow the Djibouti Franc to depreciate with the U.S. dollar in 1971 and 1973 and revalued their currency twice on the basis of its gold definition. Since then the Djibouti Franc has remained unchanged at DF 177.721 per U.S. dollar.

The guarantee to exchange Djibouti Franc is provided by the National Bank of Djibouti (NBD) and covers bank notes only. The NBD is required to hold on account at the French American Banking Corporation in New York foreign exchange in U.S. dollars equivalent to 100 percent of the currency issue, implying that currency cannot be issued even against government domestic assets. In practice, the NBD holds about 125 percent of currency cover as a precaution against contingencies. 3/ To reduce handling costs of small-scale transactions, access to the currency board is limited to commercial banks.

2. The National Bank of Djibouti: functions and role

In contrast with other countries having similar arrangements, Djibouti’s exchange rate arrangement was already in place when the Central Bank was established. This chronology of events has had the effect of establishing greater importance to the exchange rate arrangement than to the Central Bank. The NBD was established in April 1979 on the basis of a law passed in December 1977. The law gave wide-ranging authority to the NBD, including to carry out all types of monetary policy functions. In practice, however, this authority has never been exercised, and the NBD only provides logistic support to the financial sector. Its most important function is to ensure that the CBA is fully respected which is a privilege transferred from the Treasury by the 1977 law. The NBD is custodian of the Government’s foreign exchange reserves and ensures the efficient operation of the interbank payments system. It manages two data bases in support of banking operations in Djibouti: (i) the “Centrale des Chèques”, centralizes information on unfunded checks in the banking system; and (ii) the “Centrale des Risques”, centralized information on client exposure. The NBD is also responsible for granting licenses to new banks and the supervision of banking activity in general.

Given its limited role in the Djibouti economy, the NBD has always maintained a minimal staff. Thirty employees work in five departments: cash issue, research, accounting, internal audit, and bank supervision. This minimal staff policy is the result of a deliberate policy, contrasting sharply with the situation in commercial banks and public enterprises which are relatively overstaffed.

3. Monetary management and NBD lending

The authorities do not carry out any active monetary policy and the NBD does not have any of the conventional instruments of monetary policy. The December 1977 law allows the NBD to impose reserve and cash ratios on commercial banks and to lend to commercial banks. However, none of these legal powers have ever been exercised. In the view of the Djibouti authorities, monetary interventions would not be able to influence domestic interest rates significantly because of perfect capital mobility and the narrowness of Djibouti’s economy. In addition, such operations would imply using excess foreign exchange held by the NBD to alter high-powered money, thus undermining the main source of NBD financing. 1/ More importantly, the Djibouti authorities note that both prices and interest rates, which have moved closely with world levels in the past, have been sufficiently flexible to make the necessary adjustments to monetary shocks. In this context, the NBD has not developed personnel expertise in monetary programming and monetary policy formulation.

The December 1977 law allows the NBD to lend to the Government but only following a special authorization from the Council of Ministers and the signing of a loan agreement between the Treasury and the NBD. Such lending has however never occurred. Commercial banks however are allowed to lend to the Government. Such lending remained limited over the years until 1994 when, due to the deteriorating budgetary situation, the NBD, for the first time in its history, was required to provide guarantees to Bank El-Baraka for a loan of DF 1 billion to the Government. 1/ These operations were exceptional and should be viewed in the light of the fact that the NBD is not required to transfer its surpluses to the Government on a regular basis. In July 1995 the Treasury closed all its deposit accounts held in commercial banks; it now holds only one deposit account at the NBD.

4. The interbank money market and interest rates

There are four commercial banks in operation in Djibouti, all foreign-owned, with two of them having a small equity participation from the Djibouti Government. They include the Banque du Commerce International (BCI), the Banque Indosuez (BIS), both French international banks established in Djibouti since the early 1900’s; the Commercial Bank of Ethiopia (CBE); and the El-Baraka Bank, which is Saudi-owned and practices Islamic banking. They all have a strong regional character that has emerged on the grounds that the Djibouti authorities have consistently promoted full capital mobility and abstained from interfering in banking activity.

The domestic interbank money market is very limited, almost nonexistent. Domestic banks rarely lend to each other in Djibouti Franc because the currency is available on demand from the NBD against foreign exchange. As a result, most transactions between banks are settled through accounts in foreign countries. Some settlement is made through accounts held at the NBD. In fact, banks hold sizeable amounts of Djibouti Franc at the NBD because the latter does not permit overdrafts and does not lend to banks. The domestic interbank money market is also very compartmentalized. The BIS and BCI, which together control 80 percent of the domestic bank market, lend to each other sporadically; however, neither lends to the CBE and El-Baraka, which are perceived to be of less reputable financial strength. Nevertheless, all four banks have well-established credit lines available from their head-quarters and gross foreign exchange cover at each of the banks is at least 70 percent of total deposits.

Interest rates are determined freely by the commercial banks and have always tracked U.S. dollar levels closely. Bank credit to the Government is extended at PIBOR plus 3 points, currently 11 percent, and lending between the BIS and BCI takes place at international market rates. In general, sight deposits are not remunerated and term deposits currently earn interest of 3-4 percent annually. Bank lending rates are relatively high, at 12.5-18.0 percent per annum, which is attributed to several factors. First, the risk premium is reported to be quite high given the political uncertainties endemic to the region and, more recently, the deteriorating financial situation of the budget and public enterprises in Djibouti. Second, banks have high operational costs due to the high levels of wages, the lack of flexibility in labor management, and the relatively high rate of loan’ default. An additional reason is the slowness of the judicial process. Still, the risk premium compares favorably with other countries such as Lithuania and Argentina which have CBAs. 1/

5. Bank supervision and bank failures

The NBD maintains financial stability by ensuring that only reputable international banks operate in the country. Bank supervision in Djibouti is passive and minimal. There is only one staff supervising banks and there is no on-site inspection. The NBD does not have qualified staff to exercise this function, which is particularly difficult because of the regional character of these banks. 2/ Djibouti’s banks are well established international banks of good standing and the NBD relies on the central bank of their home country to guarantee their soundness. Nevertheless, the NBD monitors the evolution of prudential ratios for these banks. The ratio of capital to weighted risk assets is in the range of 14-19 percent for the BIS and El-Baraka, and more than 25 percent for the BCI and CBE, compared with a legal minimum ratio of 5 percent currently. A February 1985 decree allows the NBD to impose limits for foreign exchange exposure of banks, maximum ratios for the concentration of bank credit, but none of these are in place. Banks maintain a reserve/deposit ratio of about 3 percent.

Nevertheless, Djibouti’s banking system has not been immune from bank failures. Several commercial banks have failed since the 1980’s and the activities of two banks have been frozen since 1991. First, the Commercial Savings Bank of Somalia ceased operations in 1991 following the collapse of Somalia. Second, in the wake of the BCCI crisis, the Banque de Djibouti et du Moyen-Orient (BDMO)--a subsidiary of the Middle East Bank of Dubai--has been put under “Administration Provisoire” in April 1993 and its activities have been frozen. Both liquidations are being executed by a French auditing firm. Small private depositors have already all been fully reimbursed.

Over the years, the NBD has established a clear policy to address bank failures. First, banks are not rescued and guarantees from the parent banks are firmly established. Second, the NBD intervenes early in the process to ensure that the failing bank reimburses private depositors in priority. This policy, which indirectly acts as a deposit insurance scheme, is based on the premise that big depositors have more reliable information to decide on their depository bank, and the priority given to private depositors (as opposed to public enterprises) serves to reinforce the policy of not according credit to the Government. The past bank failures reflect mainly the fact that their parent banks have also failed at the international level.

Bibliography

Prepared by Eric Bell.

The choice of the U.S. dollar as the peg for the Djibouti Franc was based on three factors: (i) the role of the U.S. dollar in post-World War international trade; (ii) the weakness of the French Franc--to which the Djibouti Franc was linked until that time--which had been declared ineligible by the Fund until 1953; and (iii) it provided an acceptable option to avoid linking the Djibouti Franc to the Pound Sterling which had traditionally had a major role in the region.

Although not required by the CBA, commercial banks hold deposits at the NBD, representing about 4 percent of currency in circulation. These reserves are not remunerated and are held for the purpose of settling interbank payments.

Djibouti has been able to draw about US$2.6 million of seignorage revenues (0.7 percent of GDP) from the U.S. dollar over 1994-95.

The same year the BCI lent DF 1.5 billion to the Government that was guaranteed by the Government’s equity in the capital of that bank.

In Lithuania, for example, the interest rate spread is about 30 percent, and in Argentina lending rates remain about twice as high for Australs as for the U.S. dollar.

The Commission Bancaire in France has started to train Djibouti nationals in banking supervision to assist the NBD in starting on-site bank supervision in 1996.

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