Johanna Tiedemann, Veronica Piatkov, Dinar Prihardini, Juan Carlos Benitez, and Ms. Aleksandra Zdzienicka
Small Developing States (SDS) face substantial challenges in achieving sustainable development. Many of these challenges relate to the small size and limited diversification of their economies. SDS are also among the most vulnerable countries to the impact of climate change and natural disasters. Meeting SDS sustainable development goals goes hand-in-hand with building their climate resilience. But the additional costs to meet development and resilience objectives are substantial and difficult to finance. This work adapts the IMF SDG Costing methodology to capture the unique characteristics and challenges of climate-vulnerable SDS. It also zooms into financing options, estimating domestic tax potential and discussing the possibility of accessing ‘climate funds.’
Mr. Trevor Serge Coleridge Alleyne, Mr. Jacques Bouhga-Hagbe, Mr. Thomas Dowling, Dmitriy Kovtun, Ms. Alla Myrvoda, Joel Chiedu Okwuokei, and Mr. Jarkko Turunen
; and the presence of relatively higher-risk businesses such as money or value transfer services, payment settlement services, offshore sectors, or gaming, especially those businesses lacking physical presence ( IMF 2017 ).
Various characteristics of the Caribbean economies make them more vulnerable to perceptions of potential AML/CFT risks. For example, many Caribbean countries tend to transact a higher-than-average volume of remittances per capita (see Figure 12.1 ). Money or value transfer services can be a channel through which banks faceexposure to AML
Mr. Trevor Serge Coleridge Alleyne, Mr. Jacques Bouhga-Hagbe, Mr. Thomas Dowling, Dmitriy Kovtun, Ms. Alla Myrvoda, Joel Okwuokei, and Mr. Jarkko Turunen
; and the presence of relatively higher risk businesses, such as money or value transfer services, payment settlement services, offshore sectors or gaming, especially those with a lack of a physical presence ( IMF, 2017 ).
17. Various characteristics of the Caribbean economies make them more vulnerable to perceptions of potential AML/CFT risks . For example, many Caribbean countries tend to transact a higher than average volume of remittances per capita ( Figure 1 ). Money or value transfer services can be a channel through which banks faceexposure to AML
, while the underlying risk may have been traded, the entity still faces counterparty risk on the outstanding contracts it owns. If any of the counterparties to the offsetting contracts fail to meet their commitment, the entity facesexposure to the risk that has been traded. So counterparty risk is an important consideration in financial derivative markets. In the organized exchanges, the clearinghouse meets this risk by acting as the counterparty to all trades and requiring margin to be deposited and paid. 10 To protect against counterparty risk in the over
When comparing bank long-term assets and long-term liabilities, there is limited maturity mismatch, suggesting that asset–liability are well matched at the long end (right chart, Figure 13 ). In terms of the net aggregate short-term and long-term positions of banks (bottom chart, Figure 13 ), total deposits outweigh assets by a substantial margin, which suggests that banks faceexposure to interest rate risks and rollover risks.
To recap, Mauritius’ short-term foreign-currency liquidity position (maturity mismatch) has continued to improve gradually
Johanna Tiedemann, Veronica Piatkov, Dinar Prihardini, Juan Carlos Benitez, Ms. Aleksandra Zdzienicka, and Mr. James Daniel
readiness and social readiness to deal with climate vulnerabilities. Higher scores indicate higher vulnerabilities and better readiness. LIDCs: low-income developing countries; EMs: emerging market economies; AEs: advanced economies; SDS: small developing states in our sample. See annex 1 and 4 for more details.
Many SDS faceexposure to both the short- and long-term effects of climate change impacts and geo-meteorological hazards ( Annex 2 ). These events, such as storms, cyclones/typhoons or earthquakes, can occur frequently and, often, with high severity effects
After reviewing the economic reform strategy of Mauritius for the past 10 years in the face of several external shocks, we apply a balance sheet analysis (BSA) focusing on currency, maturity, and intersectoral mismatches. In reviewing developments over this decade, we find that the currency and maturity mismatches have fallen across various sectors, and the intersectoral risks to each analyzed sector’s balance sheet appear controllable. The government has implemented reforms in recent years that have contributed to general improvement in the balance sheet of the Mauritian economy and its subsectors. We conclude that from a BSA perspective, the macroeconomic vulnerabilities of Mauritius seem manageable, though vulnerabilities remain, and data gaps mean that more work will be needed to support these findings.
Mr. Trevor Serge Coleridge Alleyne, Mr. Jacques Bouhga-Hagbe, Mr. Thomas Dowling, Dmitriy Kovtun, Ms. Alla Myrvoda, Mr. Joel Chiedu Okwuokei, and Mr. Jarkko Turunen
Banks across the Caribbean have lost important Correspondent Banking Relationships (CBRs). The macroeconomic impact has so far been limited, in part because banks either have multiple relationships or have been successful in replacing lost CBRs. However, the cost of services has increased substantially, some services have been cut back, and some sectors have experienced reduced access. Policy options to address multiple drivers, including lower profitability and risk aversion by global banks, require tailored actions by several stakeholders.
This paper discusses the Staff-Monitored Program (SMP) for Zimbabwe and highlights that the new government that assumed office following the July 2018 elections is committed to addressing the macroeconomic imbalances, removing structural distortions to facilitate a resumption in growth, and to re-engaging with the international community including by clearing its external arrears. The SMP will be monitored on a quarterly basis and is intended to assist the authorities in building a track record of implementation of a coherent set of economic and social policies that can facilitate a return to macroeconomic stability and assist in reengagement with the international community. With limited access to external financing and the very low level of international reserves, the authorities’ room for manoeuvre is very narrow. There are also significant implementation risks of the monetary and exchange rate reforms, as well as addressing governance and corruption weaknesses, which could adversely impact the attainment of SMP objectives.
The System of National Accounts 1993 (1993 SNA) provided new standards for the statistical treatment of financial derivatives. Subsequently, financial derivative markets have evolved, and there have been requests from national statisticians for clarification and amplification of the recommendations in the 1993 SNA and the fifth edition of the IMF’s Balance of Payments Manual (BPM5). Meeting this need is the main purpose of this working paper. Its recommendations have been widely discussed in international meetings and have been approved by bodies that effect changes in the 1993 SNA and BPM5.