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International Monetary Fund. Statistics Dept.
A technical assistance (TA) mission on external sector statistics (ESS) was conducted for the Andorran Statistics Department (ASD) in the Principality of Andorra in March and April 2022. The mission focused on initiating the compilation of international investment position (IIP) and in producing balance of payments statistics regularly with an improved coverage and quality. The mission also assisted the ASD in developing the new direct reporting system, which will be used as one of the main source data for compiling balance of payments statistics and IIP annually.
International Monetary Fund. European Dept.
This 2019 Article IV Consultation with Estonia discusses that the outlook is favorable for the near term, however, for slower economic activity for the medium term. Th economy has performed well in recent years, supported by prudent management and effective structural reforms. Growth remains strong and unemployment is at a record low. Inflation is above the euro-area average, consistent with Estonia’s convergence process. Wages are rising, reflecting a tight labor market and skill shortages at the high end of the labor market. Absent reforms to boost productivity and manage demographic challenges, however, growth will slow notably. The authorities need to guard against potential overheating in the near term while taking advantage of sizable fiscal buffers in the medium term to support innovation and labor supply and reduce inequality. The report recommends that it is imperative to consider changes that preserve the pension system’s viability and sustainability, while promoting policies that address inequality. This includes raising female labor participation through broader implementation of gender pay transparency and flexible childcare arrangements.
Mr. Tobias Adrian
The evolution of risk management has resulted from the interplay of financial crises, risk management practices, and regulatory actions. In the 1970s, research lay the intellectual foundations for the risk management practices that were systematically implemented in the 1980s as bond trading revolutionized Wall Street. Quants developed dynamic hedging, Value-at-Risk, and credit risk models based on the insights of financial economics. In parallel, the Basel I framework created a level playing field among banks across countries. Following the 1987 stock market crash, the near failure of Salomon Brothers, and the failure of Drexel Burnham Lambert, in 1996 the Basel Committee on Banking Supervision published the Market Risk Amendment to the Basel I Capital Accord; the amendment went into effect in 1998. It led to a migration of bank risk management practices toward market risk regulations. The framework was further developed in the Basel II Accord, which, however, from the very beginning, was labeled as being procyclical due to the reliance of capital requirements on contemporaneous volatility estimates. Indeed, the failure to measure and manage risk adequately can be viewed as a key contributor to the 2008 global financial crisis. Subsequent innovations in risk management practices have been dominated by regulatory innovations, including capital and liquidity stress testing, macroprudential surcharges, resolution regimes, and countercyclical capital requirements.
International Monetary Fund. European Dept.
This 2018 Article IV Consultation highlights that the economy of Estonia is gathering steam after several years of subdued growth. Real GDP grew by 4.9 percent in 2017, more than double the rate achieved a year earlier. Growth remains broad-based, and supported by strong private and public investment—the latter partly reflecting increased absorption of European Union structural funds—and favorable external conditions. However, output runs above its sustainable level, and supply-side constraints are becoming more binding. The outlook is positive. Over the medium term, growth is set to remain at about 3.5 percent, supported by the continuing recovery of main trading partners, domestic investment, accommodative financial conditions, and continued strong market sentiment.
International Monetary Fund. Statistics Dept.
This Technical Assistance Report discusses the findings and recommendations made by the IMF mission about the compilation of Coordinated Direct Investment Survey and Coordinated Portfolio Investment Survey (CPIS) in El Salvador. The mission recommended the authorities to research the nature of the information available that may be useful for starting the CPIS. This entails discussions regarding the forms designed during the mission for requesting information from new sources. It was also recommended to continue efforts to improve the coverage of surveys applied to nonfinancial private sector enterprises, with emphasis on the largest enterprises that are still reluctant to respond to the balance-of-payments questionnaires.
International Monetary Fund. Statistics Dept.
As part of the Regional Project on Harmonizing External Sector Statistics (ESS) developed by the Technical Assistance Sector for Central America, Panama, and the Dominican Republic, a technical assistance mission on ESS visited San Salvador during the period April 21–29, 2014. The purpose of the mission was to support the Central Reserve Bank of El Salvador (BCRES) in its efforts to make further improvements in the compilation and dissemination of balance of payments and international investment position (IIP) statistics. Particular emphasis was placed on the compilation of the Coordinated Direct Investment Survey (CDIS) and the Coordinated Portfolio Investment Survey (CPIS). In El Salvador, ESS are processed and disseminated by the Balance of Payments Department (DBP), which reports to the Office of Economic Studies and Statistics. The BCRES does not have legal instruments empowering it to request information from the country’s various economic agents, or to apply effective sanctions for failure to comply. Currently, the legal mandate of the BCRES to request information to compile the ESS is based on Article 64 of its 2011 Organic Law, which establishes, on the one hand, the obligation of the BCRES to publish macroeconomic statistics, with specific mention of the balance of payments and, on the other hand, the obligation of public sector, financial sector, and nonfinancial private sector entities to provide the information requested of them for this purpose.
International Monetary Fund. Statistics Dept.
This Technical Assistance Report discusses the findings and recommendations made by the IMF mission regarding the balance of payments, international investment position, and secondary income statistics in El Salvador. The mission reviewed progress made on the recommendations for the Coordinated Direct Investment Survey (CDIS). Although El Salvador is currently reporting data to the CDIS, there are some topics that need improvement, particularly the positions of the shareholders of the three most important financial groups and their subsidiaries to avoid duplicate entries. The mission agreed with the authorities regarding the monitoring of processing payment vouchers sent to the Central Reserve Bank of El Salvador by banks and other entities paying remittances for amounts exceeding the threshold of US$500 to complete the personal transfers’ estimates.
International Monetary Fund. Statistics Dept.
As part of the Regional Project on Harmonizing External Sector Statistics (Proyecto Regional de Armonización de las Estadísticas del Sector Externo - PRAESE) of the Technical Assistance Center for Central America, Panama, and the Dominican Republic, a technical assistance mission on balance of payments, international investment position (IIP), and secondary income statistics visited the city of San Salvador over the period July 14–22, 2014. The purpose of the technical assistance mission was to help the Central Reserve Bank of El Salvador (BCRES), the institution responsible for compiling the balance of payments, the IIP, and external debt statistics, to improve external sector statistics in accordance with the guidelines of the sixth edition of the Balance of Payments and International Investment Position Manual. The mission focused on reviewing practical topics related to the compilation and recording of secondary income and following up on the recommendations provided to the BCRES regarding the Coordinated Direct Investment Survey (CDIS) and the Coordinated Portfolio Investment Survey (CPIS). At the request of the authorities, the mission also reviewed methodology and compilation topics related to financial derivatives and manufacturing services on inputs owned by others.