Journal Issue
Share
Article

Sao Tomé and Príncipe

Author(s):
International Monetary Fund
Published Date:
October 1998
Share
  • ShareShare
Show Summary Details
São Tomé and Príncipe - Basic Data
Area, population, and GDP per capita
Area (square kilometers)1,001
Population (1997)
Total134,611
Annual growth rate (in percent)2.5
GDP per capita (in U.S. dollars; 1997)326
199219931994199519961997

ESt.
(In units indicated)
Production and prices
GDP at market prices (in millions of dobras)14,56520,46936,29564,61398,900200,000
Cocoa production (in metric tons)3,6884,3053,3923,8453,5003,138
Cocoa exports (in metric tons)4,3633,7253,7163,3623,1702,840
Consumer price index (annual average; 1990=100)1962583826289531,603
(In millions of dobras)
Government fiscal operations
Revenue and grants4,2647,10211,18625,77736.54786,773
Current expenditure-4,408-6,673-11,285-15,480-26,796-55,675
Capital expenditure-5,942-7,309-15,502-34,563-41,591-84,499
Overall fiscal balance (commitment basis)-6,086-6,881-15,601-24,195-31,839-53,401
Net change in arrears (decrease -)3522,0623,9555,4334,89920,979
Overall fiscal balance (cash basis)-5,733-4,819-11,646-18,763-26,941-32,423
Financing5,7334,81911,64618,76326,94132,423
Net foreign financing3,7224,2678,01618,61615,97223,388
Net domestic financing2,0115523,63014610,9689,035
Monetary survey (end of period) 1/
Net foreign assets-4,999-8,8984,3729,94620.929102,982
Net domestic assets9,47014,8409,42610,38916,113-31,180
Net domestic credit10,55911,80812,27511,41817,699-23,309
Claims on the government (net)5,0815,6336,7557,82919,99226,588
Counterpart funds (nonbudgetary)-4,736-5,527-9,067-10,942-11,096-61,844
Credit to the economy10,21311,70214,58714,5318,80311,947
Other items (net)-1,0883,032-2,849-1,029-1,585-7,870
Money and quasi money4,4725,94213,79820,33537,04371,802
(In millions of U.S. dollars)
Balance of payments
Exports, f.o.b.5.35.25.95.14.95.3
Of which: cocoa4.24.25.04.74.84.6
Imports, f.o.b.-22.5-25.6-24.3-23.4-19.8-19.2
Trade balance-17.2-20.4-18.5-18.4-14.7-13.9
Services and income (net)-18.0-16.9-16.3-23.3-21.2-19.8
Transfers (net)12,013.018.123.322.132.1
Current account deficit, excluding transfers-34.1-35.9-31.3-41.1-35.6-33.7
Current account deficit, including transfers-23.2-24.4-16.6-18.4-14.0-1.6
Medium- and long-term capital (net)13.18.87.010.811.82.7
Short-term capital and errors and omissions-1.00.21.90.2-2.6-0.4
Overall balance-11.1-15.3-7.7-7.4-4.80.8
Financing11.115.37.77.44.8-0.8
Change in net foreign assets (increase -)2.04.7-2.1-0.40.1-7.0
Change in arrears (reduction -)6.19.2-2.0-21.95.06.5
Structural Adjustment Facility (net)0.00.0-0.1-0.2-0.2-0.2
Debt relief3.11.411.929.90.00.0
(In millions of U.S. dollars, unless otherwise specified)
Gross foreign reserves
End of period10.76.04.85.15.012.0
In months of following year’s imports, c.i.f.3.01.81.31.51.53.6
External public debt
Medium- and long-term debt (disbursed and outstanding)162.5181.4198.1226.8234.0235.5
Debt-service ratio before debt relief
(as percent of exports of goods and services)116.5124.7101.1110.373.571.9
Effective exchange rate indices (trade weighted; 1992=100)
Nominal100.091.965.332.121.512.0
Real100.0106.192.369.659.552.2
Social indicators
Life expectancy at birth On years; 1995)64
Population (1997)134,611
Rural75,248
Urban59,364
Women68,113
Men66,498
Crude birth rate (per thousand, 1997)34
Crude death rate (per thousand, 1997)8
Infant mortality rate (under 1, per thousand; 1995)84
Infant mortality rate (under 5, per thousand; 1995)138
Population per physician (1995)3,272
Enrollment rate of 6-20 year-olds fin percent; 1996)65
Literacy rate for ages 15 and above On percent; 1991)73
Sources: World Bank; and São Tomé and Príncipe authorities.

Owing to corrections and improvements to the accounts of the central bank, there is a break in the series starting in 1995.

Sources: World Bank; and São Tomé and Príncipe authorities.

Owing to corrections and improvements to the accounts of the central bank, there is a break in the series starting in 1995.

Table 1.São Tomé and Príncipe: Gross Domestic Product and Expenditure at Current Prices, 1992-97(In millions of dobras, unless otherwise specified)
199219931994199519961997
Est.
Primary sector3,8525,9139,24917,07024,58346,682
Agriculture3,3215,2508,22315,21021,68842,942
Fisheries5316631,0261,8602,8953,740
Secondary sector2,7213,8346,94712,07917,73637,343
Manufacturing and energy9331,3261,9432,6485,2507,875
Construction1,7882,5085,0049,43112,48729,469
Tertiary sector7,99210,72220,09935,46556,581115,975
Commerce and transport3,8014,6426,90612,15618,75437,508
Public administration2,9914,4148,08813,21121,78844,669
Financial institutions002,0414,5917,48415,134
Other services1,2001,6663,0645,5078,55418,664
Gross domestic product14,56520,46936,29564,61398,900200,000
Consumption18,66426,36541,35977,628118,395232,060
Private14,04119,90429,25349,80473,441142,190
Public 1/4,5516,35612,10727,82444,95489,870
Gross fixed capital formation5,7417,90716,37238,33649,64199,500
Private2,1173,7256,60611,76018,00034,400
Public 1/3,6254,1829,76726,57631,64265,100
Change in inventory-107-1050000
Gross domestic expenditure24,29834,16757,732115,964168,037331,560
Resource balance-9,733-13,698-21,437-51,351-69,137-131,560
Exports of goods and nonfactor services3,3335,1178,59913,32223,44956,778
Imports of goods and nonfactor services 1/-13,066-18,815-30,036-64,673-92,586-188,338
Memorandum items:
Gross domestic savings-4,027-5,791-5,064-13,015-19,495-32,060
Private domestic savings-1,850-2,5332,6404,79012,71329,346
Public domestic savings-2,177-3,258-7,705-17,805-32,208-61,406
Gross national savings-1,753-9,33815812,15818,80192,282
Private national savings-1,850-9,292-1,377-12,207-18,361-28,379
Public national savings97-461,53424,36537,162120,661
GDP deflator (annual percentage change)26.039.073.574.550.8100
Nominal GDP (annual percentage change)26.940.577.378.053.1102
Real GDP (annual percentage change)0.71.12.22.01.51
Sources: São Tomé and Príncipe authorities; and staff estimates.

Starting in 1995, public consumption, public investment, and imports include technical assistance and other expenditure for projects managed directly by foreign donors. These data are not available for previous years.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Starting in 1995, public consumption, public investment, and imports include technical assistance and other expenditure for projects managed directly by foreign donors. These data are not available for previous years.

Table 2.São Tomé and Príncipe: Gross Domestic Product and Expenditure at Current Prices, 1992-97(In percent of GDP)
199219931994199519961997
Est.
Primary sector26.428.925.526.424.923.3
Agriculture22.825.622.723.521.921.5
Fisheries3.63.22.82.92.91.9
Secondary sector18.718.719.118.717.918.7
Manufacturing and energy6.46.55.44.15.33.9
Construction12.312.313.814.612.614.7
Tertiary sector54.952.455.454.957.258.0
Commerce and transport26.122.719.018.819.018.8
Public administration20.521.622.320.422.022.3
Financial institutions0.00.05.67.17.67.6
Other services8.28.18.48.58.69.3
Gross domestic product100.0100.0100.0100.0100.0100.0
Consumption128.1128.8114.0120.1119.7116.0
Private96.497.280.677.174.371.1
Public 1/31.231.133.443.145.544.9
Gross fixed capital formation39.438.645.159.350.249.8
Private14.518.218.218.218.217.2
Public 1/24.920.426.941.132.032.6
Change in inventory-0.7-0.50.00.00.00.0
Gross domestic expenditure166.8166.9159.1179.5169.9165.8
Resource balance-66.8-66.9-59.1-79.5-69.9-65.8
Exports of goods and nonfactor services22.925.023.720.623.728.4
Imports of goods and nonfactor services 1/-89.7-91.9-82.8-100.1-93.6-94.2
Memorandum items:
Gross domestic savings-27.6-28.3-14.0-20.1-19.7-16.0
Private domestic savings-12.7-12.47.37,412.914.7
Public domestic savings-14.9-15.9-21.2-27.6-32.6-30.7
Gross national savings-12.0-45.60.418.819.046.1
Private national savings-12.7-45.4-3.8-18.9-18.6-14.2
Public national savings0.7-0.24.237.737.660.3
Sources: São Tomé and Príncipe authorities; and staff estimates.

Starting in 1995, public consumption, public investment, and imports include technical assistance and other expenditure for projects managed directly by foreign donors. These data are not available for previous years.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Starting in 1995, public consumption, public investment, and imports include technical assistance and other expenditure for projects managed directly by foreign donors. These data are not available for previous years.

Table 3.São Tomé and Príncipe: Gross Domestic Product and Expenditure at Constant Prices, 1992-97
199219931994199519961997
Est.
(In millions of 1991 dobras)
Gross domestic product11,56211,69011,94712,1861236812,492
Consumption13,75814,29714,55614,67614,74314,494
Private1039110,57210,4029,5259,3488,881
Public 1/3,3673,7254,1545,1515,3955,613
Gross fixed capital formation3,5694,2574,2215,0244,3564,595
Change in inventory-107-1050000
Gross domestic expenditure17,22018,44918,77719,70019,09919,089
Resource balance-5,658-6,759-6,830-7,514-6,731-6,598
Exports of goods and nonfactor services2,3132,3031,6891,2301,3031,420
Imports of goods and nonfactor services 1/-7,971-9,062-8,519-8,744-8,034-8,017
(Annual percentage change)
Gross domestic product0.71.12.22.01.51.0
Consumption-5.93.91.80.80.5-1.7
Private-7.91.7-1.6-8.4-1.9-5.0
Public 1/0.910.611.524.04.74.0
Gross fixed capital formation-6.719.3-0.819.0-13.35.5
Gross domestic expenditure-5.57.11.84.9-3.0-0.1
Resource balance-16.119.51.110.0-10.4-2.0
Exports of goods and nonfactor services6.3-0.4-26.7-27.25.99.0
Imports of goods and nonfactor services 1/-10.613.7-6.02.6-8.1-0.2
Sources: São Tomé and Príncipe authorities; and staff estimates.

Starting in 1995, public consumption, public investment, and imports include technical assistance and other expenditure for projects managed directly by foreign donors. These data are not available for previous years.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Starting in 1995, public consumption, public investment, and imports include technical assistance and other expenditure for projects managed directly by foreign donors. These data are not available for previous years.

Table 4.São Tomé and Príncipe: Land Distribution, 1993-97
199319941995199619971993-1997
(In hectares)
Total area redimensioned 1/4,361.68,553.66,743.95,662.46,342.931,664.4
Small farms (3-10 hectares)1,591.53,083.02,571.02,657.22,472.312,375.0
Medium-sized farms (10-50 hectares)1,287.0792.92,233.0387.01,691.66,391.5
Forest and other noncultivable areas1,483.14,677.71,939.92,618.22,178.912,897.8
(In percent of total area redimensioned)
Total area redimensioned100100100100100100
Small farms (3-10 hectares)363638473939
Medium-sized farms (10-50 hectares)3093372720
Forest and other non-cultivable345529463441
Memorandum item:
Number of beneficiary families8438599177301,1514,500
Source: São Tomé and Príncipe authorities.

The land distribution project was initiated in 1993 with the objective of distributing 20,000 hectares from government agricultural estates to small and medium-sized farms. At end-1992, the government estates covered approximately 65,367 hectares, of which 33,821 hectares were cultivated.

Source: São Tomé and Príncipe authorities.

The land distribution project was initiated in 1993 with the objective of distributing 20,000 hectares from government agricultural estates to small and medium-sized farms. At end-1992, the government estates covered approximately 65,367 hectares, of which 33,821 hectares were cultivated.

Table 5.São Tomé and Príncipe: Production of Principal Agricultural Crops, 1992-97(In metric tons)
199219931994199519961997
Export crops
Cocoa3,6884,3053,3923,8453,5003,138
Copra679678572501507433
Coffee142022292045
Food crops
Bananas12,00013,00013,65012,68513,500
Breadfruit1,4701,8001,5001,6001,800
Palm oil1,5008757317201,1791,183
Taro6,0007,0008,5008,24510,000
Maize4,0004,0004,3004,0004,500
Source: São Tomé and Príncipe authorities.
Source: São Tomé and Príncipe authorities.
Table 6.São Tomé and Príncipe: Energy Production and Consumption, 1992-97
199219931994199519961997
(In thousands of kilowatt-hours)
Electricity production 1/19,55120,18120,56418,66420,32822,794
Hydroelectricity6,2866,7684,8943,2635,0566,157
Thermoelectricity13,26513,41315,67015,40115,27216,637
Electricity consumption11,60712,45214,13511,93113,58014,444
Residential5,5676,2266,7966,7496,939
Industrial and other 2/6,0406,2267,3395,1826,641
(In millions of dobras)
Electricity production 1/619.8925.61,029.3
Hydroelectricity225.1
Thermoelectricity394.7
Electricity consumption544.9571.11,463.22,397.84,967.8
Residential193.4217.0619.8994.82,030.3
Industrial and other 2/351.5354.1843.51,402.92,937.5
(Dobras per kilowatt-hour)
Electricity production 1/31.745.950.1
Hydroelectricity35.8
Thermoelectricity29.8
Electricity consumption46.945.9103.5201.0365.8
Residential34.734.991.2147.4292.6
Industrial and other 2/58.256.9114.9270.8442.3
Sources: São Tomé and Príncipe authorities; and staff estimates.

Production exceeds consumption owing to losses in distribution.

Including the government.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Production exceeds consumption owing to losses in distribution.

Including the government.

Table 7.São Tomé and Príncipe: Imports of Petroleum Products, 1992-97
199219931994199519961997
Est.
(In thousands of liters)
Volume of imports
Gasoline4,0193,2983,4144,5424,6105,157
Diesel7,9207,2378,41010,2119,68312,160
Kerosene4,0343,7532,2173,0474,6095,795
(In millions of U.S. dollars)
Value of imports, c.i.f.2.72.32.22.63.84.1
Gasoline0.60.50.60.70.90.9
Diesel1.51.21.31.41.92.1
Kerosene0.60.60.40.51.01.1
(Dobras per liter)
Average retail price
Gasoline3003704347531,0352,017
Diesel1682302864837341,275
Kerosene97100109267402833
Jet143240200252402833
(U.S. dollars per liter)
Average retail price
Gasoline0.940.860.590.530.470.44
Diesel0.520.540.390.340.330.28
Kerosene0.300.230.150.190.180.18
Jet0.450.560.270.180.180.18
World price, c.i.f
Gasoline0.140.150.200.220.260.24
Diesel0.170.170.190.200.240.23
Kerosene0.180.180.200.220.260.24
Import price, c.i.f
Gasoline0.150.150.160.150.200.18
Diesel0.190.160.160.140.190.17
Kerosene0.150.160.160.160.220.18
Sources: São Tomé and Príncipe authorities; and staff estimates.
Sources: São Tomé and Príncipe authorities; and staff estimates.
Table 8.São Tomé and Príncipe: Cost Structure of Petroleum Products, 1997
GasolineDieselKerosene
In percent

of c.i.f cost
Dobras

per liter
In percent

of c.i.f cost
Dobras

per liter
In percent

of c.i.f cost
Dobras

of c.i.f cost
Average import cost, c.i.f.1.008391.007831.00839
Import duty0.665540.544230.1084
Sales tax0.534450.09700.0434
Road maintenance tax0.04320.04300.000
ENCO’s handling and distribution costs 1/0.322650.302370.20169
ENCO’s wholesale margin0.07550.06460.0327
Retail margin0.07550.06460.0437
Profit transfer to the government-0.27-226-0.46-359-0.42-356
Average retail price2.402,0171,275833
Memorandum items:
Total imports (in thousands of liters; excluding EMAE) 2/4,5285,9125,088
(In millions of dobras)
EMAE’s consumption value04,2500
Profit transfer due to the budget-1,025-2,124-1,809
Import duty due2,5072,499427
Sales tax due2,013417171
Sources: São Tomé and Príncipe authorities; and staff estimates.

ENCO, the fuel importing company.

EMAE, the water and electricity company.

Sources: São Tomé and Príncipe authorities; and staff estimates.

ENCO, the fuel importing company.

EMAE, the water and electricity company.

Table 9.São Tomé and Príncipe: Components of the Official Consumer Price Index, 1995-97 1/(1996=100; end of period)
Weights199519961997
(in percent)
Food, beverages, and tobacco71.980.4124.9214.2
Clothing5.383.0112.0185.9
Housing and energy10.280.6125.4274.8
Furniture, electrical equipment, and
other housing equipment2.883.0122.2252.2
Health services1.386.4107.6241.9
Transport and communications6.493.2126.4233.5
Entertainment and cultural activities0.782.7120.1140.1
Education0.478.5119.3211.2
Hotels and restaurants0.783.6105.6146.7
Other0.584.3108.9169.5
General index100.081.6123.8224.2
Source: São Tomé and Príncipe authorities.

Until 1996, data for the official consumer price index were subject to serious deficiencies in measurement and coverage and therefore should be interpreted with caution.

Source: São Tomé and Príncipe authorities.

Until 1996, data for the official consumer price index were subject to serious deficiencies in measurement and coverage and therefore should be interpreted with caution.

Table 10.São Tomé and Príncipe: Monthly Movements in the Official Consumer Price Index, January 1993-December 1997 1/
19931994199519961997
(1996=100)
January38.446.665,385.0127.3
February39.047.467.087.8129.1
March39.648.168.388.8132.2
April40.448.669.789.5137.4
May40.950.271.692.7157.2
June41.351.172.694.1163.0
July42.152.073.095.0171.9
August42.454.274.396.1178.2
September43.356.175.7108.7182.8
October44.058.476.3118.2199.1
November44.860.177.2120.4216.3
December45.763.081.6123.8224.2
Annual average41.853.072.7100.0168.2
(Annual percentage change)
Rate of inflation
End of period21.837.729.551.781.1
Annual average25.526.636.835.568.2
Source: São Tomé and Príncipe authorities.

Until 1996, data for the official consumer price index were subject to serious deficiencies in measurement and coverage and therefore should be interpreted with caution.

Source: São Tomé and Príncipe authorities.

Until 1996, data for the official consumer price index were subject to serious deficiencies in measurement and coverage and therefore should be interpreted with caution.

Table 11.São Tomé and Príncipe: Monthly Movements in Components of the Official Consumer Price Index, December 1996-December 1997
Weight19961997
Dec.Jan.Feb.MarchAprilMayJuneJulyAug.Sep.Oct.Nov.Dec.
(1996-100)
Food, beverages, and tobacco71.9124.9130.0130.8135.9137.6148.4152.7165.0170.7174.3190.6210.1214.2
Clothing5.3112.0113.6115.9121.7114.4142.8172.6157.1161.9174.0173.8177.1185.9
Housing and energy10.2125.4128.0139.3130.6157.8188.7196.2196.1211.9214.4251.9267.0274.8
Furniture, electrical equipment, and other housing equipment2.8122.2116.9119.8125.4146.2161.7173.5180.6181.4207.0220.0240.3252.2
Health services1.3107.6116.5104.5107.8150.5168.8177.7210.1225.0226.0212.0241.9241.9
Transport and communications6.4126.4118.8119.4119.4116.5222.6222.2221.8226.6229.0231.7232.3233.5
Entertainment and cultural activities0.7120.1136.6119.8111.9143.3121.1118.9139.4130.9141.0139.1139.8140.1
Education0.4119.3111.2114.5106.0148.5146.7150.0162.4156.4162.7194.7206.5211.2
Hotels and restaurants0.7105.682.894.986.9104.5112.4118.3120.8119.2129.8136.1142.0146.7
Other0.5108.9114.6129.5108.4142.0148.3134.5152.1158.3156.7164.6166.0169.5
General index100.0123.8127.3129.1132.2137.4157.2163.0171.9178.2182.8199.1216.3224.2
(Percentage change)
Cumulative rate of inflation51.732.84.36.711.026.931.638.843.947.660.874.781.1
Average annual inflation35.5468.21
Source: São Tomé and Príncipe authorities.
Source: São Tomé and Príncipe authorities.
Table 12.São Tomé and Príncipe: Financial Transactions of the Central Government, 1992-97(In millions of dobras)
199219931994199519961997
Total revenue and grants4,2647,10211,18625,77736,54786,773
Tax revenue1,9462,6693,6266,3298,91221,236
Consumption taxes8151,0601,2721,8392,1794,186
Import taxes7559751,2751,9542,5684,701
Export taxes101662076168161,874
Other taxes2755688721,920334810,475
Nontax revenue1,0011,0251,1914,3574.36810,009
Of which: transfers from enterprises5735964156685342,058
Grants1,3183,4086,36915,09123,26855,528
Total expenditure and net lending10,35013,98226,78749,97268,387140,174
Current expenditure4,4086,67311,28515,48026,79655,675
Personnel costs1,0471,0931,8792,1634,14011,709
Of which: wages and salaries5186808679271,2958,151
Goods and services4885231,3342,3223,4437,004
Interest on external debt due1,6012,3473,9827,7829,74722,356
Interest on internal debt due0000120168
Transfers5264938541,0156,0188,892
Defense004137171,2251,630
Other current expenditures 1/7002,1772,7451,2761,4993.320
Redeployment fund484179206604596
Capital expenditure 2/5,9427,30915,50234,56341,59184,499
Recorded by the treasury6065641,0993,0398932,471
Foreign financed5,3366,74514,40331,52440,69882,028
Overall fiscal balance
(commitment basis, after grants)-6,086-6,881-15,601-24,195-31,839-53,401
Change in arrears (net; reduction -)3522,0623,9555,4334,89920,979
External arrears (net; reduction -)3522,0083,0044,8006,98117,566
Domestic arrears (net; reduction -)054951633-2.0833,413
Overall fiscal balance (cash basis)-5,733-4,819-11,646-18,763-26,941-32,423
Financing5,7334,81911,64618,76326,94132,423
External (net)3,7224,2678,01618,61615.97223,388
Disbursements (projects)4,0194,3858,34518,90018,86228,544
Amortization (net)-1,314-715-9,040-39,348-2,890-5,156
Scheduled-2,293-3,263-4,586-6,915-6,948-17,794
Net change in arrears (reduction -)9782,547-4,453-32,4334,05812,638
Debt relief1.0185978,71139,06400
Domestic (net)2,0115523,63014610,9689,035
Banking credit1,8465523,5865742,8966.597
Use of counterpart funds165044-4288,0722,438
Sources: São Tomé and Príncipe authorities; and staff estimates.

Includes payments to embassies, as well as recurrent costs of projects in agriculture and social sectors.

Includes outlays for technical assistance and other expenditures on social projects not associated with capital formation.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Includes payments to embassies, as well as recurrent costs of projects in agriculture and social sectors.

Includes outlays for technical assistance and other expenditures on social projects not associated with capital formation.

Table 13.São Tomé and Príncipe: Central Government Revenue, 1992-97(In millions of dobras)
199219931994199519961997
Total revenue and grants4,2647,10211,18625,77736,54786,773
Tax revenue1,9462,6693,6266,3298,91221,236
Direct taxes1973285171,5052,8099,170
Profit taxes631191488291,0844,810
Income taxes921283245941,4904,090
Other42814582235270
Indirect taxes1,7492,3413,1094,8236,10212,066
Import taxes7559751,2751,9542,5684,701
Export taxes101662076168161,874
Consumption taxes8151,0601,2721,8392,1794,186
On imported goods6297151,1231,5692,1784,168
On domestic goods186345149270118
Other782403554145391,305
Nontax revenue1,0011,0251,1914,3574,36810,009
Transfers from enterprises5735964156685342,058
Fishing royalties2683385359742,1213,471
Other160912412,7161,7134,480
Grants1,3183,4086,36915,09123,26855,528
Sources: São Tomé and Príncipe authorities; and staff estimates.
Sources: São Tomé and Príncipe authorities; and staff estimates.
Table 14.São Tomé and Príncipe: Central Government Expenditure, 1992-97(In millions of dobras)
199219931994199519961997
Total expenditure10,35013,98226,78749,97268,387140,174
Current expenditure4,4086.67311,28515,48026,79655,675
Personnel costs1,0471,0931.8792,1634,14011,709
Wages and salaries5186808679271,2958,151
Travel2462785195831,5442,779
Family allowances221130
Other personnel expenditures 1/244944435901,207290
Social security payments3640496391489
Goods and services4885231,3342,3223,4437,004
Durable goods231835581,495429
Nondurable goods253227389575905544
Petroleum products6168104157219282
Other192158285417686262
Services2122789101,6891,0436,031
Of winch: electricity7549600541392,970
transport and communications841491412211901,967
Interest on external debt due1.6012,3473,9827,7829,74722,356
Interest on internal debt due0000120168
Transfers5264938541,0156,0188,892
Public entities1181722695361,3095,813
Public enterprises20113025503,070913
Private sector72521123295291.525
Private institutions86571718
Individuals64471073225121,507
External1351382171501,109641
Other current expenditures7002,1773,1581,9942,8444,950
Embassies89145228240387
Defense004137171,2251,630
Extraordinary expenditures01,4501,72500351
Other 2/6115827921,0361,2322,369
Redeployment fund484179206604596
Capital expenditure 3/5,9427,30915,50234,56341,59184,499
Recorded by the treasury6065641,0993,0398932,471
Foreign financed5,3366,74514,40331,52440,69882,028
Memorandum item:
Total expenditure and net lending, excluding
foreign-financed capital expenditure5,0147,23712,38418,44827,68958,146
Sources: São Tomé and Príncipe authorities; and staff estimates.

Includes bonuses and allowances, except in 1993 and 1994, when they were recorded in wages and salaries.

Includes recurrent costs of projects in agriculture and social sectors, as well as defense expenditures for 1990 to 1993.

Includes outlays for technical assistance and other expenditures on social projects not associated with capital formation.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Includes bonuses and allowances, except in 1993 and 1994, when they were recorded in wages and salaries.

Includes recurrent costs of projects in agriculture and social sectors, as well as defense expenditures for 1990 to 1993.

Includes outlays for technical assistance and other expenditures on social projects not associated with capital formation.

Table 15.São Tomé and Príncipe: Fiscal Indicators, 1992-97
199219931994199519961997
(Annual percentage change)
Total revenue and grants25.666.557.5130.441.8137.4
Tax revenue65.637.235.974.540.8138.3
Direct taxes3.566.258.0190.986.6226.4
Indirect taxes77.633.932.855.126.597.7
Of which: import taxes82.129.330.753.331.483.1
export taxes27.6-35.0215.8197.832,4129.6
Nontax revenue45.52.416.1266.00.3129.1
Of which: transfers from enterprises72.34.0-30.460.9-20.0285.2
Grants-14.0158.786.9136.954.2138.6
Total expenditure32.535.191.686.636.9105.0
Current expenditure37.251.469.137.273.1107.8
Of which: personnel costs25.74.471.915.191.4182.8
goods and services108.67.2155.274.148.3103.4
interest on external debt due26.846.669.695.425.3129.4
Capital expenditure29.323.0112.1123.020.3103.2
(In percent of total revenue and grants)
Total revenue and grants100.0100.0100.0100.0100.0100.0
Tax revenue45.637.632.424.624.424.5
Direct taxes4.64.64.65.87.710.6
Indirect taxes41.033.027.818.716.713.9
Of which: import taxes17.713.711.47.67.05.4
export taxes2.40.91.92.42.22.2
Nontax revenue23.514.410.616.912.011.5
Of which: transfers from enterprises13.48.43.72.61.52.4
Grants30.948.056.958.563.764.0
(In percent of total expenditure)
Total expenditure100.0100.0100.0100.0100.0100.0
Current expenditure42.647.742.131.039.239.7
Of which: personnel costs10.17.87.04.36.18.4
goods and services4.73.75.04.65.05.0
interest on external debt due15.516.814.915.614.315.9
Capital expenditure57.452.357.969.260.860.3
Domestically-financed5.94.04.16.11.31.8
Foreign-financed51.648.253.863.159.558.5
(In percent of GDP)
Total revenue and grants29.334.713.316.513.415.6
Of which: tax revenue13.413.010.09.89.010.6
Total expenditure71.168.373.877.369.170.1
Current expenditure30.332.631.124.027.127.8
Capital expenditure40.835.742.753.542.142.2
Primary current balance 1/-30.8-22.1-32.0-25.4-22.5-15.5
Primary overall balance 2/-3.2-5.8-9.90.0-4.7-2.2
Overall balance-41.8-33.6-43.0-37.4-32.2-26.7
Sources: São Tomé and Príncipe authorities; and staff estimates.

Excluding interest obligations, including grants.

Excluding interest obligations, grants, and foreign-financed capital expenditures.

Including use of counterpart funds.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Excluding interest obligations, including grants.

Excluding interest obligations, grants, and foreign-financed capital expenditures.

Including use of counterpart funds.

Table 16.São Tomé and Príncipe: Public Investment Program, 1992-97
199219931994199519961997
(In millions of U.S. dollars)
Total investment18.117.321.224.418.918.7
Public administration0.60.20.71.10.50.6
Agriculture8.39.28.57.86.97.3
Water and sewage 1/0.20.91.31.10.80.3
Education0.81.64.15.62.32.5
Energy 1/0.32.21.34.13.50.8
Housing0.30.20.20.10.40.4
Fisheries0.20.20.30.50.60.6
Health0.40.60.62.33.04.2
Transport and telecommunications7.12.34.01.71.01.6
Other0.00.00.00.00.00.5
Financing18.117.321.224.418.918.7
Foreign16.315.719.722.218.518.2
Grants3.95.58.38.99.912.0
Loans12.410.211.413.38.66.2
Domestic1.81.61.52.20.40.5
Counterpart funds0.10.00.00.30.20.1
Budget1.71.61.51.90.20.4
(In percent of total investment)
Total investment100.0100.0100.0100.0100.0100.0
Public administration3.11.03.54.72.43.1
Agriculture45.852.940.232.036.438.8
Water and sewage 1/0.85.26.34.54.21.4
Education4.39.319.423.012.413.6
Energy 1/1.412.76.117.018.34.3
Housing1.51.11.00.42.22.0
Fisheries1.01.31.52.13.13.3
Health2.33.43.09.416.022.5
Transport and telecommunications39.113.119.07.05.08.4
Other0.00.00.00.00.02.6
Financing100.0100.0100.0100.0100.0100.0
Foreign90.090.592.991.297.997.3
Grants21.631.739.136.552.464.1
Loans68.458.953.854.745.433.2
Domestic10.09.57.18.82.12.7
Counterpart funds0.60.20.01.21.20.5
Budget9.49.27.17.61.12.2
Sources: São Tomé and Príncipe authorities; and staff estimates.

Until 1992, the energy sector was included in the water and sewage sector.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Until 1992, the energy sector was included in the water and sewage sector.

Table 17.São Tomé and Príncipe: Status of Nonagricultural Public Enterprises, December 1997(In billions of dobras, unless otherwise specified)
GovernmentTotal AssetsNumber ofNet ProfitsStatus
ownershipEmployees
(In percent of total)
Air São Tomé (national airline)Mixed
enterprise
Africa Fishing, SA49To be privatized
in 1998
EMAE (water and electricity)10026.40315-0.50Strategic public
enterprise
ENCO (petroleum products) 1/10034.00325.10Strategic public
enterprise
EMOLVE (edible oil)100Public
enterprise
Compensadora (insurance)Liquidated
Correios (postal services)1000,63600.04Strategic public
enterprise
CST (telecommunications)49104.501353.20Mixed
enterprise
Cunha Gomes, SA30Mixed
enterprise
ENASA (air traffic security)100103Strategic public
enterprise
ENAPORT (ports)100101Strategic public
enterprise
ENCAR (meat distribution)100Deactivated
Agua Grande (textiles)Privatized
ENAMED (pharmaceuticals)10010Liquidated
Optica Nacional 2/ (eye glasses)Deactivated
Pousada Boa Vista (hotel)1004.3038Management to
be privatized in 1998
Source: São Tomé and Príncipe authorities.

In 1998,49 percent of the shares in ENCO were sold to private investors; the government retains 51 percent.

Part of ENAMED.

Source: São Tomé and Príncipe authorities.

In 1998,49 percent of the shares in ENCO were sold to private investors; the government retains 51 percent.

Part of ENAMED.

Table 18.São Tomé and Príncipe: Monetary Survey, 1992-97 1/
Old SeriesNew Series
1992199319941994199519961997
Est.
(In millions of dobras, end of period)
Net foreign assets-4,999-8,898-17,9364,3729,94620,929102,982
Foreign assets4,0027,125173H11,69921,14536,734139,065
Foreign liabilities-9,001-16,023-35,247-7,327-11,199-15,804-36,083
Net domestic assets9,47014,84031,4459,42610,38916,113-31,180
Net domestic credit10,55911,80818,52412,27511,41817,699-23309
Net credit to government5,0815,6339,2206,7557,82919,99226,588
Claims83478,65310,7508,55110,29028,74328,939
Budgetary deposits-3,266-3,020-1,531-1,796-2,462-8,752-2351
Budgetary deposits-3,266-3,020-1,531-1,796-2,462-8,752-2351
Counterpart funds-4,736-5,527-7,426-9,067-10,942-11,096-61,844
Credit to the economy10,21311,70216,73114,58714,5318,80311,947
Other items (net)-1,0883,03212,921-2,849-1,029-1,586-7,870
Revaluation accounts5,9517,83019,526-2,7922,0184,82521,426
Other-7,039-4,798-6,605-57-3,047-6,410-29,297
Broad money4,4725,94213,50913,7982033537,04371,802
Money4,2225,93413,5088,42014,28123,21340,610
Currency in circulation1,7403,2213,2644,7946,84514,818
Demand deposits2,9184,19510,2875,1569,4861636725,792
Quasi money250815,3786,05413,83031,192
Time deposits (local currency)250819099745389
Deposits in foreign exchange5,2885,95613,08630,803
(Changes in millions of dobras)
Net foreign assets 2/-641-2,0212,4761,2503,80048,200
Net domestic assets2,2923,4915,0911,4388,738-31,894
Net domestic credit6761,2506,716-1,6477,524-32,882
Net credit to government 3/1,8465523,58657411,80012367
Counterpart funds (nonbudgetary)-1,761-792-1,899-2,085-6385-48392
Credit to the economy5911,4895,029-1362,1093,144
Other items (net) 2/1,6162,241-1,6253,0851,214988
Broad money (M2)
Change in M2 stock 4/1,6511,4707,5676,53716,82334,759
Adjusted M2 flow 2/002,68712,53816306
(Annual percentage changes)
Net foreign assets 2/40.4-27.828.638.2230.3
Net domestic assets31.936.934.315.384.1-197.9
Counterpart funds-59.216.734.423.058.4436.1
Credit to the economy6.114.643.0-0.914.535.7
Broad money (M2)
Change in M2 stock 4/58.532.9127.347.482.793.8
Change in M2 in domestic currency0.00.031.267.671.1
Adjusted M2 flow 2/19.561.744.0
(Changes in percent of opening broad money stock)
Net foreign assets 2/-22.7-45.241.79.118.7130.1
Net domestic assets 2/81.378.185.710.443.0-86.1
Net credit to government65.412.460.44.258.033.4
Counterpart funds (nonbudgetary)-62.4-17.7-32.0-15.1-31.4-130.6
Credit to the economy21.033.384.6-1.010.48.5
Adjusted M2 flow 2/19.561.744.0
Valuation effect on broad money27.921.149.8
Sources: São Tomé and Príncipe authorities; and staff estimates and projections.

As of December 1995, central bank stock data reflect regularization and liquidation of the outstanding operations of the former National Bank (BNSTP), as well as more accurate estimate of foreign assets and liabilities.

After foreign exchange valuation adjustment.

Starting in 1996, includes the use of counterpart funds for budgetary purposes (Db 8.1 billion in 1996; Db 2.4 billion in 1997) and the quasi-fiscal deficit of the central bank (Db 0.8 billion in 1996; Db 3.3 billion in 1997).

Without foreign exchange valuation adjustment.

Sources: São Tomé and Príncipe authorities; and staff estimates and projections.

As of December 1995, central bank stock data reflect regularization and liquidation of the outstanding operations of the former National Bank (BNSTP), as well as more accurate estimate of foreign assets and liabilities.

After foreign exchange valuation adjustment.

Starting in 1996, includes the use of counterpart funds for budgetary purposes (Db 8.1 billion in 1996; Db 2.4 billion in 1997) and the quasi-fiscal deficit of the central bank (Db 0.8 billion in 1996; Db 3.3 billion in 1997).

Without foreign exchange valuation adjustment.

Table 19.Central Bank of São Tomé and Príncipe: Summary Accounts, 1992-97 1/2/(In millions of dobras; end of period)
Old SeriesNew Series
1992199319941994199519961997
Est.
Net foreign assets-4,999-8,981-21,481-1,7608122249,609
Foreign assets4,0023,1096,8755,7198,65513,85483,130
Foreign liabilities-9,001-12,090-28,356-7,479-8,573-13,631-33,521
Net domestic assets8,91015,27425,94111,15010,38018,722-3,208
Net domestic credit10,05912,42313,50517,37410,25014,745-22,355
Net credit to government5,0817,65910,7508,55110,29023,30528,104
Claims8,3478,65310,7508,55110,29028,74328,939
Deposits 3/-3,266-994000-5,439-835
Counterpart funds-4,736-5,477-7,426-8,933-10,333-10,521-52,347
Claims on nonfinancial public enterprises7,8888,1968,1967,8377,83700
Claims on private sector1,7582,0441,98408020450
Claims on financial institutions67009,9192,3751,7571,839
Other items (net)-1,1482,85112,436-6,2241313,97719,146
Revaluation accounts5,9517,8307,8301,5942,0185,43221,841
Other-7,099-4,9794,606-7,817-1,888-1,455-2,695
Money and quasi money3,912
Money 2/3,662
Currency in circulation1,333
Demand deposits2,329
Quasi money250
Base money6,2934,4619,39010,46218,94546,401
Currency liabilities1,9493,7603,7605,0157,56216,358
Reserve deposits4,3447015,6315,44711,38330,043
Sources: São Tomé and Príncipe authorities; and staff estimates.

In March 1993, the National Bank (BNSTP) divested itself of its commercial banking functions and began operations as the Central Bank (BCSTP). The 1995 data reflect regularization and liquidation of the BNSTP’s outstanding operations.

As of November 1994, data reflect corrections to, and improvements on, the basic accounts, in particular a more accurate estimate of foreign assets and liabilities.

Beginning in 1996, government deposits denominated in foreign currency are included in counterpart funds.

Sources: São Tomé and Príncipe authorities; and staff estimates.

In March 1993, the National Bank (BNSTP) divested itself of its commercial banking functions and began operations as the Central Bank (BCSTP). The 1995 data reflect regularization and liquidation of the BNSTP’s outstanding operations.

As of November 1994, data reflect corrections to, and improvements on, the basic accounts, in particular a more accurate estimate of foreign assets and liabilities.

Beginning in 1996, government deposits denominated in foreign currency are included in counterpart funds.

Table 20.São Tomé and Príncipe: Summary Accounts of Banking Institutions, 1994-97(In millions of dobras; end of period)
1994199519961997
Est.
Net foreign assets6,8909,86520,70753,373
Foreign assets7,33512,49122,88055,935
Foreign liabilities-445-2,626-2,173-2,562
Net domestic assets3,6445,6769,4903,611
Reserves4,7645,48812,73030,646
Cash on hand4962217161,540
Local currency deposits at the central bank7571,1986,62326,421
Foreign currency deposits at the central bank3,0444,0695,3902,685
Deposits in other domestic financial institutions466000
Deposits of other public institutions and social security 1/-655
Credit from the central bank0-250-1,150-1,200
Net domestic credit4,8203,5434,711-1,616
Net credit to Government 2/-1,930-3,071-3,888-13,513
Credit to the economy6,7506,6148,59911,897
Other items (net)-5,285-3,105-6,801-24,219
Money10,53415,54130,19856,984
Demand deposits5,1569,43116,36725,792
Deposits in foreign exchange5,2886,01113,08630,803
Time deposits in local currency9099745389
Sources: São Tomé and Príncipe authorities; and staff estimates.

Beginning in 1995, other public institutions deposits are included in demand deposits.

Including nonbudgetary counterpart funds.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Beginning in 1995, other public institutions deposits are included in demand deposits.

Including nonbudgetary counterpart funds.

Table 21.São Tomé and Príncipe: Structure of Interest Rates, 1991-97(In percent per annum; end of period)
199119921993 1/1994199519961997
Deposits
Sight deposits0.00.00.00.00.00.00.0
Term deposits
30-90 days30.030.030.040.5
90-180 days35.035.031.041.5
180-365 days39.039.033.043.5
Over one year36.046.5
Credits
Commercial and industrial credits
30-90 days37.037.037.030.052.038.0
90-180 days37.037.037.030.052.038.056.0
180 - 365 days40.040.040.030.052.040.057.5
Over one year44.044.044.030.052.042.059.5
Short-term crop credit36.036.036.030.055.5
Housing loans40.040.040.025.052.0
Medium-term investment credit and other
Discount rate45.045.030.032.050.035.055.0
Memorandum items:
Deposits of 180-365 days’ maturity
(in real terms) 2/-9.09.2-12.3-20.8
Commercial and industrial credits
of 180-365 days’ maturity (in real terms) 2/-8.310.05.5-25.911.0-7.7-13.0
Sources: São Tomé and Príncipe authorities; and staff estimates.

Between November 12, 1993 and May 1, 1996, commercial banks were free to set their lending rates, subject to a 22 percent maximum. The lending and deposit rates indicated for 1996 are maximum and minimum rates, respectively.

Real interest rates calculated on the basis of end-of-period rates of inflation, as estimated by staff.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Between November 12, 1993 and May 1, 1996, commercial banks were free to set their lending rates, subject to a 22 percent maximum. The lending and deposit rates indicated for 1996 are maximum and minimum rates, respectively.

Real interest rates calculated on the basis of end-of-period rates of inflation, as estimated by staff.

Table 22.São Tomé and Príncipe: Balance of Payments, 1992-97(In millions of U.S. dollars)
199219931994199519961997
Est.
Trade balance-17.2-20.4-18.5-18.3-14.9-13.9
Exports, f.o.b.5.25.25.95.14.95.3
Cocoa4.24.25.04.74.84.6
Other1.01.00.90.40.20.8
Imports, f.o.b.-22.5-25.6-24.3-23,4-19.8-19.2
Food-4.6-5.6-5.2-5.9-4.7-3.8
Investment goods-7.5-9.1-9.8-9.9-5.9-5.6
Petroleum products-2.2-1.8-1.8-2.1-3.0-3.8
Other-8.1-9.1-7.5-5.6-6.2-6.0
Services and income (net)-18.1-16.9-16.3-23.3-21.2-19.8
Exports of services5.05.45.94.35.77.1
Travel and tourism2.22.72.83.04.0
Other services3.13.21.52.73.1
Imports of nonfactor services-18.1-16.8-16.7-22.1-22.2-22,1
Freight and insurance-5.6-6.4-6.1-5.9-5.0-5.1
Technical assistance-5.5-3.8-4.6-10.2-9.5-10.0
Other-6-6.6-6.0-6.1-7.7-7.0
Interest due-4.9-5.5-5.5-5.5-4.7-4.8
Private transfers (net)1.11.53.40.60.50.8
Current account (net) before official transfers-34.2-35.9-31.3-41.1-35.6-32.9
Official transfers (net)10.911.514.722.721.631.3
Public investment projects3.95.58.38.99.912.0
Aid in kind3.73.54.03.70.52.8
Stabilization system for export earnings0,00.00.02.00.80.2
Other3.32.42.58.110.316.3
Current account (net) after official transfers-23.3-24.4-16,6-18.4-14,0-1.6
Medium- and long-term capital (net)13.18.87.010.811.82.7
Project loans12.430.211.413.38.66.2
Nonproject loans6.42.20.10.23.70.0
Direct foreign investment1.34.01.81.92.40.4
Amortization-7.0-7.6-6.3-4.6-2.9-3.9
Short-term capital and errors and omissions-1.00.21.90.2-2.6-0.4
Overall balance-11.2-15.3-7.7-7.4-4.80.8
Financing8.113.9-4.2-22.64.8-0.8
Net change in reserves (increase -)2.04.7-2.1-0.40.1-7.0
Medium- and long-term arrears (net; decrease -)4.17.26.6-21.95.06.5
Short-term arrears (net; decrease -)2.02.0-8.50.00.00.0
Structural Adjustment Facility (net)0.00.0-0.1-0.2-0.2-0.2
Financing gap3.11,411.929.90.00.0
Debt relief3.11.411.929.90.00.0
Memorandum items:
Debt-service ratio (before debt relief) 1/2/116.5124.7101.0110.373.571.9
Debt service actually paid 1/3/26.923.816.624.426.619.8
Current account (in percent of GDP) 4/-75.1-75.3-63.3-90.3-79.2-75.0
Current account (in percent of GDP) 5/-51.2-51.1-33.6-40.5-31.2-3.6
Sources: São Tomé and Príncipe authorities; and staff estimates.

In percent of exports of goods and services.

Includes amortization to the IMF; excludes arrears.

Includes obligations to the IMF and cash settlement of arrears.

Before grants.

After grants

Sources: São Tomé and Príncipe authorities; and staff estimates.

In percent of exports of goods and services.

Includes amortization to the IMF; excludes arrears.

Includes obligations to the IMF and cash settlement of arrears.

Before grants.

After grants

Table 23.São Tomé and Príncipe: Composition of Exports, 1992-97
199219931994199519961997
(In millions of U.S. dollars)
Value5.235.155.865.104.945.34
Cocoa4.234.154.974.714.764.59
Copra0.330.000.00 1/0.000.000.00
Coffee0.050.050.050.040.00 1/0.04
Other0.620.950.840.360.180.71
(In metric tons)
Cocoa4,3633,7253,7163,4003,1702,840
Copra1,350014000
Coffee22
Other785
(U.S. dollars per kilogram)
Cocoa0.971.121.341.401.501.61
Copra0.240.04
Coffee2.27
Other1.04
Sources: São Tomé and Príncipe authorities; and staff estimates.

Less than US$0,005 million.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Less than US$0,005 million.

Table 24.São Tomé and Príncipe: Composition of Imports, 1992-97
199219931994199519961997
(In millions of U.S. dollars)
Total imports, c.i.f.28.132.030.429.324.824.0
Foodstuffs5.87.16.57.45.94.7
Of which: grants3.73.54.03.70.5
Petroleum products2.82.22.22.63.84.8
Investment goods9.411.412.212.47.4 1/7.0
Other10.111.39.47.07.6 1/7.5
(In percent of total)
Total imports, c.i.f.100.0100.0100.0100.0100.0100.0
Foodstuffs20.622.121.525.123.819.6
Of which: grants13.111.113.113.12.0
Petroleum products10.06.87.28.715.420.0
Investment goods33.535.740.242.229.8 1/29.2
Other36.035.431.023.930.7 1/31.2
Sources: São Tomé and Príncipe authorities; and staff estimates.

Due to improved data classification between investment and “other” goods for 1996 and 1997, these two categories are not comparable to previous years.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Due to improved data classification between investment and “other” goods for 1996 and 1997, these two categories are not comparable to previous years.

Table 25.São Tomé and Príncipe: Destination of Exports, 1992-97
199219931994199519961997
(In millions of U.S. dollars)
Total exports, f.o.b.5.25.25.95.14.95.3
China, People’s Republic of0.20.00.00.00.00.0
Germany0.80.00.00.01.00.3
Netherlands1.84.35.13.63.22.7
Portugal0.10.0 1/0.0 1/0.10.10.3
Other2.30.90.81.40.62.0
(In percent of total)
Total exports, f.o.b.100.0100.0100.0100.0100.0100.0
China, People’s Republic of3.90.00.00.00.00.0
Germany15.40.00.00.020.95.7
Netherlands34.682.786.470.563.950.9
Portugal1.90.70.61.92.05.7
Other44.216.613.027.613.237.7
Sources: São Tomé and Príncipe authorities; and staff estimates.

Less than US$0.05 million.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Less than US$0.05 million.

Table 26.São Tomé and Príncipe: Origin of Imports, 1992-97
199219931994199519961997
(In millions of U.S. dollars)
Total imports, c.i.f.28.132.030.429.324.824.0
Angola1.32.31.51.33.31.6
Belgium1.22.12.31.92.51.4
China, People’s Republic of0.50.50.30.00.30.0
France1.92.03.14.92.04.3
Gabon0.92.00.60.20.10.2
Germany0.10.40.80.60.30.4
Italy0.11.70.52.10.70.1
Japan2.03.11.64.22.50.8
Netherlands1.00.30.70.80.20.0
Portugal10.911.38.611.27.26.3
Spain1.90.20.10.10.50.0
United Kingdom0.00.10.30.21.10.0
Russian Federation0.00.00.00.00.00.0
Other6.45.910.02.04.18.9
Source: São Tomé and Príncipe authorities.
Source: São Tomé and Príncipe authorities.
Table 27.São Tomé and Príncipe: Export, Import, and Terms of Trade Indices, 1992-97 1/(1987 = 100, unless otherwise specified)
199219931994199519961997
Export unit value index63.072.586.991.097.7105.2
Import unit value index 2/94.383.278.784.9101.195.1
Terms of trade66.965.7110.5107.296.7110.7
(Annual percentage change)
Terms of trade-7.2-1.768.0-3.0-9.814.5
Sources: São Tomé and Príncipe authorities; and staff estimates.

In U.S. dollar terms.

Calculated using export unit value indices of partner countries.

Sources: São Tomé and Príncipe authorities; and staff estimates.

In U.S. dollar terms.

Calculated using export unit value indices of partner countries.

Table 28.São Tomé and Príncipe: Indicators of External Public Debt, 1992-97 1/
199219931994199519961997
Est.
(In millions of U.S. dollars; end of period)
Disbursed medium- and long-term debt outstanding178.5197.4214.1226.8234.0235.5
Of which: arrears37.444.651.223.629.329.6
Short-term debt outstanding37.839.831.326.831.831.8
Of which: arrears37.839.831.326.831.831.8
Total external debt outstanding216.3237.2245.4253.6265.8267.3
Of which: arrears75.284.482.550.361.161.4
Debt service due on medium- and long-term debt11.913.111.810.37.98.7
Interest4.95.55.55.54.74.8
Amortization7.07.66.34.63.23.9
Debt relief 2/3.11.411.929.90.00.0
(In percent of exports of goods and services)
External debt service
Before rescheduling116.1124.7101.0110.373.571.9
After rescheduling86.2111.498.599.373.571.9
Cash settlements 3/26.823.816.624.426.619.6
Present value of external debt1,5951,4591,4221,6161,4461,298
(In percent of GDP)
Total external debt outstanding (end of period, including arrears)475.8498.1495.2557.4592.1610.4
Sources: São Tomé’ and Príncipe authorities; and staff estimates.

Includes IMF.

Current maturities and arrears rescheduled, refinanced, or forgiven.

Includes arrears.

Sources: São Tomé’ and Príncipe authorities; and staff estimates.

Includes IMF.

Current maturities and arrears rescheduled, refinanced, or forgiven.

Includes arrears.

Table 29.São Tomé and Príncipe: Outstanding External Medium- and Long-Term Public Debt, 1992-97 1/(In millions of U.S. dollars)
199219931994199519961997
Est.
Total 2/178.5197.4214.1226.8234.0235.5
Of which: arrears37.444.651.223.629.329.6
Multilateral creditors 2/108.4122.4136.1155.2162.2158.3
Of which: arrears0.11.12.45.05.75.2
World Bank32.038.346.755.359.557.4
African Development Bank Group 3/60.566.872.280.983.881.3
Arab Bank for Economic
Development in Africa8.58.68.68.48.58.6
Other 2/7.58.78.610.610.511.0
Official bilateral creditors39.342.844.171.671.777.2
Of which: arrears12.714.415.918.623.524.4
China, People’s Republic of5.35.46.05.75.711.2
France7.78.69.19.89.28.0
Germany11.012.212.78.98.99.0
Russian Federation8.68.99.010.611.111.9
Other 4/6.77.77.336.636.837.1
Financial institutions25.526.227.50.00.00.0
Of which: arrears19.223.126.50.00.00.0
Portugal25.326.227.50.00.00.0
Other0.20.00.00.00.00.0
Suppliers’ credits5.46.06.40.00.00.0
Of which: arrears5.46.06.40.00.00.0
Portugal1.11.31.30.00.00.0
Other4.34.85.00.00.00.0
Sources: São Tomé and Príncipe authorities; and staff estimates.

Debt with maturity of more than one year.

Includes IMF.

Includes African Development Fund.

Includes debt to Portuguese financial institutions that was assumed by the Portuguese government and rescheduled in March 1995.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Debt with maturity of more than one year.

Includes IMF.

Includes African Development Fund.

Includes debt to Portuguese financial institutions that was assumed by the Portuguese government and rescheduled in March 1995.

Table 30.São Tomé and Príncipe: Exchange Rates, 1989-97
Nominal effectiveOfficial RateBureau de change RateBISTP RateBCEParallel Market RateDifferential
Exchange Rate(Db/US$;(Db/US$;(Db/US$;(Db/US$;(Db/US$;Between the
Index 1/period average)period average)period average)period average)period average)Official and
(1992 = 100)Parallel Market rates 2/
Annual
1989225.9124.7182.046.0
1990197.0143.3207.044.5
1991161.4201.6256.027.0
1992100.0320.4330.03.0
199391.9429.9555.029.1
199465.3732.6812.9904.023.4
199532.11,420.31,444.01,393.01,530.07.7
199621.52,203.22,316.02,210.02,250.02,346.06.5
199712.04552.54495.94565.34414.24611.21.3
Quarterly
1989 Q1239.1111.8167.049.4
Q2224.3125.0172.037.6
Q3229.4125.2197.057.4
Q4211.1137.0193.040.9
1990 Q1204.7140.7192.036.5
Q2197.8146.9212.044.3
Q3191.6145.9210.043.9
Q4194.0139.8215.053.8
1991 Q1199.4142.9215.050.5
Q2182.2173.8230.032.3
Q3152.1214.7267.024.4
Q4112.0275.0313.013.8
1992 Q1107.4291.8315.08.0
Q2103.0308.3315.02.2
Q394.3323.5325.00.5
Q495.2358.0363.01.4
1993 Q195.0389.3463.018.9
Q292.6406.2550.035.4
Q391.0446.8604.035.2
Q489.0477.2592.2601.025.9
1994 Q179.5585.4648.8657.012.2
Q275.0624.6749.8792.026.8
Q357.8788.5858.01,000.026.8
Q449.0932.0994.91,167.025.2
1995 Q133.91,337.61,354.01,313.01,400.04.7
Q235.81,234.91,272.01,221.01,290.04.5
Q333.81,365.91,408.01,343.01,550.013.5
Q426.01,742.91,742.01,694.01,881.07.9
1996 Q124.71,874.71,991.71,884.02,053.79.5
Q221.32,219.62,427.62,220.62,103.42,439.19.9
Q320.22,309.12,349.12,306.82,326.42,346.31.6
Q419.52,409.22,494.22,426.92,410.02,546.35.7
1997 Q116.13090.03034.63124.43123.53118.70.9
Q212.54091.43970.04085.63548.54178.72.1
Q310.64937.34820.04961.14939.54959.90.5
Q48.66091.36158.96090.06045.36187.61.6
Sources: São Tomé and Príncipe authorities; and staff calculations.

Trade weighted.

In percent of the official rate.

Sources: São Tomé and Príncipe authorities; and staff calculations.

Trade weighted.

In percent of the official rate.

Figure 1Sao Tome and Principe Prices and Production of Cocoa, 1970-97

Sources: Sao Tome and Principe authorities; and staff estimates.

Figure 2Sao Tome and Principe Output, Prices, Saving, and Investment, 1990-97

Sources: Sao Tome and Principe authorities; and staff estimates.

Figure 3Sao Tome and Principe Exchange Rates and Terms of Trade

Sources: Sao Tome and Principe authorities; World Economic Outlook database; and staff estimates.

1/ Dobras per U.S. dollar; left scale.

2/ In percent; right scale.

Figure 4Sao Tome and Principe Public Sector External Debt, 1993-97

Sources: Sao Tome and Principe authorities; and staff estimates.

1/ Includes IMF.

2/ Includes arrears.

APPENDIX I: São Tomé and Príncipe: Summary of Tax System, December 1997
TaxNature of TaxExemptions or DeductionsRates
1.Taxes on income, profit, and capital gains
1.1Individual
1.1.1Income tax (Imposto sobre saládrios)(Decree-Law 64/97).Levied on all domestically earned income, in cash and in kind. The tax is withheld at source and payable within the first eight days of the month after the income was paid. It is levied on all individuals, including nonresidents who earn income in the country.Earned annual income up to Db 480,000.

Salary supplements, up to 10 percent of the fixed monthly salary.
Flat 13 percent tax; Db 5,000 monthly deductible.
Expense allowances and per diem and representation allowances, up to the limits set for government employees. Income of clergy from exercise of their spiritual functions. Personnel of diplomatic and consular missions or in the service of international or foreign organizations.
1.2Corporate
1.2.1Profit tax (Imposto sobre o rendimento)(Decree-Law 9/93 of March 5, 1993; Decree-Law 84/93 of December 31,1993; Decree-Law 46/93 of August 10, 1993; Decree-Law 58/95 of December 31,1995; Decree-Law 40/96 of October 29,1996).Levied on all domestic income from any commercial, industrial, or agricultural business or independent profession, even if occasional or temporary.Profits from investment of dividends from mutual aid societies and nonprofit cooperatives.For commercial, industrial and service businesses, flat 30 percent rate on taxable profit; an additional 15 percent rate on taxable profits in excess of Db 3 million.
50 percent of profits from agricultural activities.
For independent professionals, five-bracket schedule applicable to taxable profit, with
Special exemptions granted in the context of the investment code.• progressive rates from 5 percent to 30 percent for taxable profit from Db 60,001 to Db 3,000,000; and
• flat rate of 30 percent for taxable profit above Db 3,000,000, plus 15 percent surcharge on portion of taxable profit in excess of Db 3,000,000.
Revenue obtained from rental of urban property is taxed at a rate of 20 percent.
1.2.2.Minimum tax (Valor minimo) (Decree-Law 58/95 of December 31,1995).This presumptive tax on profits, which replaces the contribuição industrial fixa, must be paid during the first half of the year by all commercial, industrial, and artisanal businesses as well as by self-employed professionals.None.Six progressive taxes ranging from Db 3,000 to Db 150,000.
The minimum tax is deductible from the profit tax when the latter is positive.
2.Taxes on property
2.1Urban property tax (Contribuigao predial urbana)(Legislative Act 450 of September8,1954; Decree-Law 57/81 of November 28,1981; Decree-Law 16/93 of March 5, 1993; Decree-Law 45/93 of August 10,1993; Decree-Law 84/93 of December 31,1993; Decree-Law 40/96 of October 29, 1996).Levied on all urban property, including

• permanent buildings intended for housing, commercial, or industrial purposes other than exploitation of land, and the land on which the buildings are located; and

• land for construction when declared as such by the owner or by law.
Central government properties.



For two years, permanent buildings for use as dwellings by owners or their families, including buildings replacing demolished buildings, provided the construction period does not exceed 24 months.



Owners of property whose total income does not exceed Db 2,000.



All property owned by religious entities pursuant to their purposes.
15 percent on registered value corrected according to the following factors:



• Factor of 8 for property registered before Dec. 31,1970;

• Factor of 4 for property registered between Jan. 1,1971 and Dec. 31, 1980;

• Factor of 2 for property registered between Jan. 1,1981 and Dec. 31, 1990;

• Factor of 1.5 for property registered between Jan. 1,1991 and Apr. 30, 1993; and

• Factor of 1 for property registered after May 1,1993.
2.2Motor vehicle tax (Imposto sobre veiculos)(Decree-Law 13/93 of March 5,1993; Decree-Law of December 31, 1993).Levied on motor vehicles equipped with engines larger than 50cc, either registered in the country or starting 180 days within entry into the country, that circulate or are parked in public thoroughfares or places.The central government and any of its agencies, organizations, or services, except state-owned and mixed enterprises.The taxes are reviewed annually, and vary according to the size and the age of the vehicle:
Citizens of countries giving reciprocal treatment.• Vehicles over 50cc up to 500cc are taxed Db 500 if less than 6 years old, and Db 1,000 if more than 6 years old.
Personnel of diplomatic and consular missions, pursuant to agreements.• Vehicles over 500cc up to 1,300cc are taxed Db 2,500 if less than 6 years old, and Db 4,000 if more than 6 years old.
International or foreign organizations, pursuant to agreements.• Vehicles over 1,300cc up to 1,900cc are taxed Db 4,000 if less than 6 years old, and Db 6,000 if more than 6 years old.
Driver-training vehicles.
Duly registered rental vehicles.• Vehicles over 1,900cc are taxed Db 6,000 if less than 6 years old, and Db 10,000 if more than 6 years old.
Duly registered boats used in artisanal fishing.
New vehicles purchased after October 31, 1997.For recreational boats, tariffs are as follows:
Farm tractors.• For recreational boats up to 25hp, tariffs are Db 500 if up to 6 years old, and Db 1,000 if more than 6 years old.
Motorcycles used for transporting freight• For each 10 hp or fraction over 25hp, there are additional tariffs of Db 500 for boats up to 6 years old, and Db 1,000 for boats more than 6 years old.
3.Domestic taxes on goods and services
3.1Excise tax (Imposto sobre oconsumo)(Decree-Law 20/76 of June 30,1976; Decree-Law 47/91 of October 17,1991; Decree-Law 14/93 of March 5,1993; Decree- Law 41/93 of July 27,1993; Decree-Law 53/95 of November 17,1995).Levied on the value of goods listed in the schedules annexed to Decree-Laws 14/93 and 41 /93, with the following valuation methods:

• The factory gate selling price is applied to locally produced goods not distributed by an associated or subsidiary enterprise.

• The distributor’s selling price less 20 percent is used if the producer is associated with the distributor or the subsidiary enterprise.

• The domestic value, import taxes included, is applied in the case of imports.

• If the producer sells his goods directly to consumers, the factory gate price cannot, for purposes of the excise tax, be less than the price charged to the consumer less 20 percent.
Locally produced goods exported or re- exported directly from the industrial establishment.



Raw materials, equipment, and finished or semifinished products, whether locally produced or imported, for use in industrial, agricultural, or fishing activities, including artisanal fishing, or for incorporation into locally produced items.



Imported or locally produced materials for packaging of agricultural exports.



Alcohol needed in industrial processes. Gasoline for vehicles of diplomats, subject to reciprocity, and of officials of international organizations.



Gasoline for aviation equipment for public use.
General tax of 15 percent, with the following exceptions, as listed in the schedules annexed to Decree-Laws 14/93 and 41/93:



ProductsRates

(percent)
Petroleum goods15-130
Motor vehicles15-50
Soft drinks10-15
Alcoholic drinks60-130
Tobacco100-250
Books, basic food,
construction
material,
Pharmaceuticals0
The tax is chargeable to
• the producer, in the case of locally produced goods; and
• the importer, in the case of imports.
4.Taxes on international trade and transactions
4.1Transaction tax (Contribuição industrial varidvel)(Legislative Act 2 of January 20,1925; Legislative Act 551 of July 30, 1949; Decree-Law 47/91 of October 17,1991; Decree-Law 6/95 of May 26, 1995; Decree-Law 40/96) of October 29,1996.Charged to entities and individuals covered by Schedule A annexed to the decree.Goods exempted from import duties.Single rate of 8 percent.
4.2Import duty (Direitos de importagao)(Legislative Act 739 of December 5,1966; Legislative Act 745 of December 24,1966; Decision 10/85 of April 22,1985; Decree-Law 6/95 of May 26,1995; Decree-Law 53/95 of November 17,1995).Levied on the customs value of imports determined on the assumption that

• the goods are delivered to the buyer at the port of entry;

• the seller’s price is the c.i.f. price, that is, it includes all costs related to the sale of the good and its delivery at the port of entry;
Goods imported by official agencies as specified in Decree 41024 of March 23, 1957 are exempt. Examples are as follows:

• aircraft and aircraft engines for use in civil aviation;

• equipment, machinery, and accessories for use in any public service;
A mix of ad valorem and specific rates, depending on the nature of the product. Examples are as follows:

• wheat, rice, and flour (exempt);

• meat (8.85 percent);

• live animals (7.35 percent);

• butter (10 percent);

•milk (exempt);

•oil (3 percent);
• the buyer pays the applicable duty and any other taxes that are excluded from the base price;• fixed plant and rolling stock for railroads, hoists, and floating docks and cranes imported by the port and railroad agencies;• salt and sugar (1 percent);
• if the goods being valued are manufactured under a patented process of registered design or mark, or bear a foreign trademark or brand name, or are imported to be sold under the same trademark even after additional finishing, the base price includes the royalty for use of the patent, registered design, trademark, or brand name; and

• specific duties levied on he weight of goods are calculated on the basis of their gross, net, or actual weight, as stated in the tariff and its instructions.
• electrical equipment for postal, telegraph, and telephone stations;

• construction materials and electrical equipment, and machinery and apparatus imported by the government for use in water and electricity distribution system or sewer systems or by public works agencies for carrying out work on such systems or any other work required for the country’s development and the equipping of ports; and

• fertilizers and seeds imported by agricultural agencies.
• fresh fruits (1 percent);

• coffee (10 percent);

• tea (5 percent);

• wine (6 percent);

• other alcoholic beverages (35-50 percent);

• tobacco (Db 564.22 per kilogram);

• pharmaceuticals (exempt);

• most mineral and chemical products (5-6 percent);

• gasoline (86 percent), diesel (34 percent), and kerosene (14 percent);

• perfumes (45 percent);

• most textile products (5-30 percent);

• most metals (8-50 percent);

• electric equipment (3-20 percent);

• cars and buses (10-12 percent);

• tractors (2 percent);

• motorcycles and trucks (5-10 percent).
Enterprises engaged in the production of items included in the preceding list are exempt from duty as well. Also exempt are products for use by new industries of strategic economic interest.
The government may exempt goods under temporary import or reimport arrangements. Many exemptions are negotiated bilaterally in the context of the investment code.
Imports of immigrants may also be exempted
4.3Customs duty (Emolumentos gerais aduaneiros)(Decree 31 883 of April 18,1942; Decree-Law 7/72 of June 22,1972; Decree-Law 6/95 of May 26,1995).Levied on imports.The government may exempt certain imports, such as capital goods and certain basic foodstuffs.Flat tax of 3.5 percent.
4.4Export tax (Imposto geral de exportagao)(Decree-Law 17/93 of March 5,1993; Decree-Law 6/95 of May 26,1995).Levied on agricultural exports.Exports whose customs value does not exceed Db 20,000.Ad valorem rates:

• cocoa, 10 percent;

• coffee, 8 percent;

• copra, 9 percent;

• Palm kernels, 8 percent; and

• other, 15 percent.
4.5Lighthouse tax (Imposto defarolagem)(Legislative Act 25 of December 24,1933).Levied on all ships entering domestic harbors and used to defray the costs of lighthouses, lighted beacons, and light buoys.None.Rates range from Db 150 to Db 650 per ship, depending on nationality of ship and time of day.
The tax is administered by the National Port Enterprise (ENAPORT); its budgetary significance is virtually nil.
4.6Harbor tax (Taxas de porto)(Decree-Law 22/89 of December 19,1989).Levied for use of port facilities, and on material procured by the port authorities.Scientific missions, domestic ships, and fishing boats pay only 50 percent of the tax.Mostly specific tariffs, which vary with the weight, volume, and quantity of merchandise, the type of service, and time of utilization of service.
The following equipment is exempted:

• government and military boats;

• merchandise in transit;

• merchandise shipped between domestic harbors;

• passengers’ luggage; and

• mail.

Exemptions are also granted by ENAPORT on a case-by-case basis.
For materials procured by the port authorities, a tax of 1 percent of the c.i.f. value, and an additional tax of 30 percent
5.Other taxes
5.1Inheritance and gift tax (Imposto sobre as sucessões e doações) (Decree 22 of June 22,1988; Decree-Law 42/93 of August 10, 1993).Levied on all conveyance of movable property, real estate property, value, or title. Chargeable to the recipient.Transfers of less than Db 5,000. Also exempt is the gratuitous conveyance of movable or real estate property to descendants or to nonprofit organizations.Progressive rates between 7 percent and 25 percent, based on the value of the goods or property conveyed and the degree of kinship between the descendant and the heirs.
The tax base is determined by the value of the conveyed goods or property, after deduction of the transferor’s debts and other costs set forth in the regulations.
5.2Real estate transfer tax (Sisa sobre a transmis São de imobiliarios portitulo oneroso) (Decree 22 of June 22,1988; Decree-Law 42/93 of August 10,1993).Levied on all onerous conveyances of real estate and chargeable to the purchaser.

Taxable transactions include specifically

• sales or bartering of real property, subject to prior authorization of the Planning Minister under Article 1 of Decree-Law 48/75 of June 19, 1975;

• acquisitions of shares in companies other than business corporations that own real property, if through such acquisition one partner becomes the holder of at least 75 percent of the company’s capital or the number of partners is reduced to two and the two are husband and wife married with community property; and



• purchases of freehold of leaseholders and redemptions of property seized in tax enforcement proceedings. The tax base is the value of the conveyance or the assessed income from the property as shown in the real property register, whichever is higher, or determined through direct assessment.
The state.

Nonprofit organizations.

Recipients of real estate who are descendants, ascendants, husbands, wives, brothers or sisters, for property valued at less than Db 30,000.
PropertyRate
Rural property10 percent
Urban property10 percent
Barter deeds5 percent
5.3Stamp tax (Imposto de selo) (Decree-Law 12/76 of April 19, 1976 and annexed schedule; Decree-Law 40/88 of December 20, 1988; Decree-Law 15/93 of March 5,1993; Decree-Law 81/93 of December 31,1993; Decree-Law 12/96 of April 19,1996).Levied through

• revenue stamps (selos fiscais);

• stamped forms (papel selado);

stamped bills (letras seladas);

• revenue stamps (selos de verba);

• collection advice stamps;

• customs stamps;

• check stamps;

• Pharmaceutical stamps; and

• Miscellaneous stamps.
The state.



Religious institutions.



Some items in the schedule annexed to the regulations.
Examples:

• stamped forms, Db 50;

• revenue stamps, Db 1 to Db 1,500;

stamped bills, Db 1 to Db 500; and

• check stamps, Db 3 for local payment and Db 15 for payment abroad.
The state has a claim on the stamp tax upon assessment and payment, when it is due on acts and contracts subject to it, and when products subject to it are exhibited or sold.
5.4Special tax (Imposto especial) (Decree-Law 22793 of June 30, 1933).Surtax on the total amount of the following taxes, fees, and other government revenues:None.Single rate of 20 percent.
• import tax;

• rural property tax;

• justice, port, and customs duties;

• enforced collection proceeds; and

• tax violation proceeds.
5.5Stamp tax (Imposto do selo de assistencia)(Decree-Law 44/1775 of June 6,1975; Decree-Law 11/86 of March 31, 1986).Tax on customs clearance and receipts, licenses, and certificates.Same as stamp tax.For customs clearance and receipts, specific tax for low values, from Db 2 to Db 10; and ad valorem rate of 0.15 percent for values above Db 10,000. Specific tax of Db 15 for licenses and Db 10 for certificates.
5.6Military tax (Decree 17 695 of December 21,1929; Decree 29 115 of November 12, 1938; Decree 32 745 of April 10, 1943; Decree-Law 86/93 of December 31,1993).Due by all nationals who are not doing military service.Disabled nationals.



Students, until the end of their studies.



Anyone who is currently part of military or paramilitary services, or who served in the army for at least five years.
Db 750 or Db 1,000 depending, on income levels.
5.7Justice tax (Decree-Law 18/87 of August 31,1987).Due on the value of settlement for fiscal cases.Flat rate of 10 percent.
Source: São Tomé and Príncipe authorities.
Source: São Tomé and Príncipe authorities.
APPENDIX II: Exchange and Payments System

(Position as of December 31, 1997)

Exchange arrangement

1. The currency of São Tomé and Príncipe is the São Tomé and Príncipe dobra. The official exchange rate is determined daily as an average of exchange rates in the bureau de change, parallel market, and commercial banks. 1 On December 31, 1997, the exchange rate (middle rate) for the U.S. dollar, the intervention currency, was Db 6,969.73 per US$1. Rates for certain other currencies are determined on the basis of the exchange rates of the U.S. dollar for the currencies concerned.

2. Foreign exchange transactions are divided into three categories for the purpose of assessing charges on purchases and sales of foreign exchange: import payments, transactions in foreign checks, and collection of export proceeds.

3. On import-related exchange transactions, the arrangements are as follows: when a letter of credit is opened, a quarterly charge of 0.5 percent of the import value, with a minimum of US$25 and a maximum of US$500, is payable with an additional commission of 0.5 percent to the Central Bank of São Tomé and Príncipe (BCSTP). A stamp duty of 0.25 percent is also payable, as well as a postage levy of US$2.

4. On foreign checks for collection, the commercial banks charge a postage levy of US$2 for each transaction. For collection of export proceeds, a commission of 0.125 percent is charged—with a minimum of US$25 and a maximum of US$300—when the letter of credit is opened, and a fee of 0.125 percent is charged when the funds are received. A postage levy of Db 39,000 is also charged.

5. There are no arrangements for forward cover against exchange rate risk operating in the official or the commercial banking sector.

Administration of control

6. All foreign exchange transactions are controlled by the BCSTP, which applies the exchange controls flexibly. All foreign exchange proceeds must be surrendered to the BCSTP, and all exchange payments must be made through the BCSTP, with the exception of earnings retained by producers exporters for import payments. (See the section on exports and export proceeds below.)

7. Import and export licenses are automatically granted and recorded by the Directorate of External Commerce for statistical purposes.

8. Arrears are maintained with respect to external payments.

Prescription of currency

9. The BCSTP may prescribe the currency in which foreign exchange transactions are made.

10. The bilateral payment agreement with Cape Verde was terminated, and the corresponding debt to Cape Verde, which amounted to US$1.65 million, was rescheduled on July 21, 1995 through an agreement between the Central Bank of Cape Verde and the BCSTP. The debt is being reimbursed in equal quarterly installments. A bilateral payment arrangement with the Central Bank of Angola is partially operative.

Imports and import payments

11. All registered importers (including productive entities) are permitted to engage in import activity. Fuels and lubricants are imported by the public fuel enterprise, and medicines by the public pharmaceutical enterprise and the private pharmaceutical sector. Import licenses are automatically granted by the Directorate of External Commerce. When importers open letters of credit, the commercial bank (BISTP) requires them to lodge a deposit2 in domestic currency equivalent to 0 percent to 100 percent of the value of the letters of credit, depending on the creditworthiness of the operator. Prepayment for imports is permitted only through the opening of letters of credit or through anticipated transfers agreed upon by the BCSTP. The BCSTP still allocates foreign exchange, which is sold at the official rate, through the Chamber of Commerce.

Payments for invisibles

12. Payments for invisibles related to authorized imports are not restricted. Payments for other invisibles are approved within limits established by the BCSTP. These limits, which allow for additional amounts in justifiable cases, include those on (1) transfers for medical treatment abroad when local facilities are inadequate; (2) transfers of remittances to students; (3) transfers of savings from earnings under technical cooperation agreements with the government; and (4) transfers for payment of fares, freight, and costs of communication with foreign countries. Purchases of foreign exchange by residents for purposes of tourism are limited, although airfares may be paid in domestic currency. Transfers of profits by foreign companies established in São Tomé and Príncipe before independence have been suspended. There are no limitations on remittances for subscriptions to periodicals and books or on payments of interest on external debt.

13. Foreign exchange allowances for medical purposes are flexible. Payments for technical assistance and other services in the national interest are allowed. At the beginning of the school year, a student is granted permission to transfer for expenses related to courses taken abroad an amount that has been approved by the Ministry of Education and Culture.

14. All payments related to invisibles are subject to a stamp tax of 0.5 percent. In addition, commercial banks charge a commission of US$2 for clients (and US$4 for nonclients).

Exports and export proceeds

15. For the purpose of collecting information, all exports require the completion of registration forms, as set out in Advance Export Registration Bulletins, which specify the quantity and c.i.f. or f.o.b. value of the export shipment. All export proceeds are subject to the mandatory surrender requirement to the BCSTP. Producers of exported goods may retain 30 percent of export proceeds in accounts with banks, including those abroad (if they are correspondent banks of the BCSTP), and they may use the balances to meet their import requirements.3

Proceeds from invisibles

16. Travelers may bring in any amount of foreign exchange.

Capital

17. Inward foreign investments are governed by the investment code, which was implemented on October 15, 1992. Foreign capital investments, excluding the extraction of hydrocarbons and other mining industries, are permitted on the same basis as domestic investment. Repatriation of profits is permitted for up to 15 percent of the value of the investment a year. Transfers are permitted for repayment of financing under agreements with the government and for the amortization of private sector investments in activities considered to be in the national interest. Nonresidents holding foreign currency accounts can freely transfer funds abroad. Personnel under technical assistance programs are allowed to transfer their savings in accordance with the terms of their contracts.

Gold

18. Exports and imports of gold require special authorization from the BCSTP.

The weights are based on the recorded dollar value of the previous day’s transactions in the commercial and bureaux de change markets, and an estimate of the dollar value of transactions in the parallel market. According to the central bank data, the vast majority of foreign exchange transactions are effected through the commercial bank, while the market share of the bureaux de change is virtually nil.

Currently, the BISTP does not remunerate these deposits, but it also chooses not to remunerate any other type of deposits.

The mandatory export surrender requirement was officially reduced to 50 percent on May 1, 1996 for exporters able to demonstrate a need for additional foreign exchange to finance imported inputs, but it remained de facto at 70 percent.

Other Resources Citing This Publication