This paper assesses and disseminates experiences and lessons from low-income countries (LICs) in Sub-Saharan Africa that were selected by the Africa Department in 2015-16 as pilots for enhanced analysis of macro-financial linkages in Article IV staff reports. The paper focuses on the common characteristics across the pilot countries and highlights the tools used in the analysis, the challenges encountered, and the solutions deployed in overcoming them.
This paper discusses the Democratic Republic of São Tomé and Príncipe’s First Review under the Extended Credit Facility Arrangement. The economy remains vulnerable to external and domestic shocks. Growth decelerated to 4 percent in 2012, reflecting persistent global uncertainties, particularly in Europe, which contributed to a slowdown in foreign direct investment, and in the execution of the foreign-financed public investment program. Commercial banks profitability and capital-to-risk weighted assets ratio declined in 2012, reflecting more challenging lending conditions. The central bank continues to strengthen its banking supervision function through on-site inspections and enforcement of banking regulation.
Growth in the first half of the year was subdued, as the stronger stimulus expected from a timely execution of public investment projects failed to materialize because of the delayed disbursements of external financing. There was also a large fiscal slippage in the first half of the year ahead of the presidential elections. Two end-June program performance criteria and a structural benchmark (SB) were missed, but the targets for the year remain attainable.
Third and Fourth Reviews under the Extended Credit Facility Arrangement, Extension of the Arrangement, and Modification of Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of S�o Tom� and Pr�ncipe
Does a country’s exchange rate regime affect moral hazard in capital markets or address the problem of international overborrowing? Is there merit in resurrecting the de facto “East Asian dollar standard” that operated for more than a decade before the crises of 1997–98? Ronald I. McKinnon of Stanford University addressed these issues at an IMF Institute seminar on August 14.
International Monetary Fund. External Relations Dept.
On October 17, IMF Managing Director Horst Köhler and World Bank President James D. Wolfensohn—after consultation with the institutions’ Boards of Executive Directors, and with Gordon Brown, the chair of the International Monetary and Financial Committee (IMFC), and Yashwant Sinha, the chair of the Development Committee—announced that they were “pleased to accept the invitation made by the Canadian Finance Minister, Paul Martin, to host meetings of the IMFC and DC in Ottawa on November 17–18.”