Business and Economics > Finance: General

You are looking at 1 - 10 of 15 items for :

  • Type: Journal Issue x
  • Ethiopia, The Federal Democratic Republic of x
Clear All Modify Search
International Monetary Fund. African Dept.
This paper presents Ethiopia’s First Review under the Extended Credit Facility (ECF) Arrangement, Request for Modification of Performance Criteria, and Financing Assurances Review. The Ethiopian authorities have shown strong commitment to their homegrown economic reform program. Implementation of ECF-supported reforms is advancing well. The transition to a market-determined exchange rate has been progressing well with a significant narrowing of the spread between the parallel and official market rate and no signs of significant inflationary pressures, albeit the supply of foreign exchange to the market has picked up more slowly than anticipated with some unmet demand persisting. Program performance has been in line with program commitments and all quantitative performance criteria were met, with an overperformance in the net international reserves target. Four out of five structural benchmarks (SBs) were met. The SB on the Emergency Liquidity Assistance framework was missed but is expected to be implemented in October, after incorporating feedback from IMF staff.
International Monetary Fund. African Dept.
This paper presents The Federal Democratic Republic of Ethiopia’s Request for an Arrangement under the Extended Credit Facility. The four-year financing package will support the authorities’ Homegrown Economic Reform Agenda to address macroeconomic imbalances, restore external debt sustainability, and lay the foundations for higher, inclusive, and private sector-led growth. The economic program envisages a comprehensive policy package to stimulate private sector activity and increase economic openness to promote higher and more inclusive growth. Supportive macroeconomic policies, including the elimination of monetary financing of government deficits, monetary policy tightening, and prudent fiscal management, will need to be sustained to keep inflation in check, ensure a successful implementation of the market-determined exchange rate, and durably address exchange rate shortages. The authorities are advancing reforms to ensure the sustainability of public finances. The authorities’ ambitious and comprehensive home-grown structural reform agenda will focus on better governance and public service delivery, competitiveness, and the business climate, to stimulate private sector-led growth and contribute to poverty reduction and raising living standards.
International Monetary Fund. African Dept.

Abstract

After four turbulent years, the outlook for sub-Saharan Africa is gradually improving. Growth will rise from 3.4 percent in 2023 to 3.8 percent in 2024, with nearly two thirds of countries anticipating higher growth. Economic recovery is expected to continue beyond this year, with growth projections reaching 4.0 percent in 2025. Additionally, inflation has almost halved, public debt ratios have broadly stabilized, and several countries have issued Eurobonds this year, ending a two-year hiatus from international markets. However, not all is favorable. The funding squeeze persists as the region’s governments continue to grapple with financing shortages, high borrowing costs, and impending debt repayments. Risks to the outlook remain tilted to the downside. The region continues to be more vulnerable to global external shocks, as well as the threat of rising political instability, and frequent climate events. Three policy priorities can help countries adapt to these challenges: improving public finances without undermining development; monetary policy focused on ensuring price stability; and implementing structural reforms to diversify funding sources and economies. Amid these challenges, sub-Saharan African countries will need additional support from the international community to develop a more inclusive, sustainable, and prosperous future.

International Monetary Fund. Strategy, Policy, & Review Department
At the time of the 2005 Review of the Fund’s Transparency Policy, the Executive Board required regular updates on trends in implementing the transparency policy. This report provides an overview of recent developments, reflecting information on documents considered by the Board in 2019 and their respective publication status up to June 2020, and updating the previous annual report on Key Trends.
International Monetary Fund. Statistics Dept.
The International Monetary Fund’s (IMF’s) Statistics Department (STA) provided technical assistance (TA) on financial soundness indicators (FSI) to the National Bank of Ethiopia (NBE) during June 15-July 10, 2020. The TA mission took place in response to a request from the authorities, with the support of the IMF’s African Department (AFR). Due to the COVID-19 pandemic and travel restrictions, the mission was conducted remotely via video conferences. The mission worked with the staff of the NBE on the development of FSIs that are in line with the IMF’s 2019 FSI Guide.1 The main objectives of the mission were to: (i) review the source data, institutional coverage, and accounting and regulatory frameworks supporting the compilation of FSIs; (ii) provide guidance for mapping source data for the banking sector to the FSI reporting templates FS2 and FSD as well as preparing the metadata; and (iii) agree with the authorities on the timeline to begin regular reporting of the FSIs for deposit-takers to STA. The mission also provided technical assistance to the NBE on the compilation of net open positions in foreign currencies.
Daniel Gurara
,
Mr. Vladimir Klyuev
,
Miss Nkunde Mwase
,
Mr. Andrea F Presbitero
, and
Mr. Geoffrey J Bannister
This paper examines trends in infrastructure investment and its financing in low-income developing countries (LIDCs). Following an acceleration of public investment over the last 15 years, the stock of infrastructure assets increased in LIDCs, even though large gaps remain compared to emerging markets. Infrastructure in LIDCs is largely provided by the public sector; private participation is mostly channeled through Public-Private Partnerships. Grants and concessional loans are an essential source of infrastructure funding in LIDCs, while the complementary role of bank lending is still limited to a few countries. Bridging infrastructure gaps would require a broad set of actions to improve the efficiency of public spending, mobilize domestic resources and support from development partners, and crowd in the private sector.
International Monetary Fund. Middle East and Central Asia Dept.
This Selected Issues paper discusses the fiscal reforms needed for fiscal sustainability and inclusive growth in Djibouti. Djibouti is experiencing a predominantly debt-financed scaling up of public investment, which the authorities consider vital to boost growth and reduce widespread poverty and unemployment. Fiscal reforms will be needed to support fiscal consolidation and open up space for propoor expenditures that promote inclusive growth. Reform of the investment incentive framework and overall tax regime is also required to support fiscal consolidation and to level the playing field for investors and enhance revenue mobilization.
International Monetary Fund. African Dept.

Abstract

The October 2013 Regional Economic Outlook: Sub-Saharan Africa provides a comprehensive report on the prospects for growth in the region, as well as the major risks to the outlook. Generally, growth is expected to remain strong despite a downward revision since the May 2013 report. The report analyzes drivers of growth in nonresource-rich sub-Saharan African countries, and examines the risks to frontier market economies of volatile capital flows as they become more integrated with international capital markets.

Mr. David J Hofman
and
Ms. Patricia A Brukoff
Natural disasters can put severe strain on public finances, in particular in developing and small countries. But catastrophe insurance markets increasingly offer opportunities for the transfer of such risks. Thus far, developing countries have only tepidly begun to tap these opportunities. More frequent and intensive use of insurance markets may be desirable because it could help introduce an important element of predictability in the post-disaster public finances of disaster-prone developing countries. Against this background, the paper surveys the various available insurance modalities and reviews recent initiatives in developing and emerging market countries. It also identifies some key challenges for the insurance community, donors, and international financial institutions (IFIs).
International Monetary Fund. African Dept.

Abstract

Prepared by the Policy Wing of the IMF African Department, and published twice a year in English and French, Regional Economic Outlook: Sub-Saharan Africa analyzes economic performance and short-term prospects of the 44 countries covered by the Department. Topics examined in recent volumes include responses to exogenous shocks, growth performance and growth-enhancing policies, the effectiveness of regional trade arrangements, macroeconomic implications of scaled-up aid, financial sector development, and fiscal decentralization. Detailed country data, grouped by oil-exporting and -importing countries and by subregion, are provided in an appendix and a statistical appendix, and a list of relevant publications by the African Department is included.