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United Republic Of Tanzania: 2011 Article IV Consultation and Second Review Under the Policy Support Instrument—Informational Annex

Author(s):
International Monetary Fund
Published Date:
May 2011
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Appendix I. Tanzania: Relations with the Fund

(As of February 28, 2011)

I. Membership Status: Joined: September 10, 1962; Article VIII

II. General Resources Account:

SDR Million%Quota
Quota198.90100.00
Fund holdings of currency188.9094.97
Reserve Tranche Position10.005.03
Lending to the Fund
Notes Issuance
Holdings Exchange Rate

III. SDR Department:

SDR Million%Allocation
Net cumulative allocation190.51100.00
Holdings158.0282.95

IV. Outstanding Purchases and Loans:

SDR Million%Quota
ESF Arrangements218.79110.00
ECF Arrangements10.645.35

V. Latest Financial Arrangements:

Date ofExpirationAmount ApprovedAmount Drawn
TypeArrangementDate(SDR Million)(SDR Million)
ESFMay 29, 2009June 14, 2010218.79218.79
ECF1Aug 16, 2003Feb 26, 200719.6019.60
ECF1Apr 04, 2000Aug 15, 2003135.00135.00

Formerly PRGF.

Formerly PRGF.

VI. Projected Payments to Fund1(SDR Million; based on existing use of resources and present holdings of SDRs):
Forthcoming
20112012201320142015
Principal1.121.962.2418.1543.73
Charges/Interest0.110.710.700.700.62
Total1.232.672.9418.8544.35

When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.

VII. Implementation of HIPC Initiative:
Enhanced
I. Commitment of HIPC assistanceFramework
Decision point dateApril 2000
Assistance committed
by all creditors (US$ Million)12,026.00
Of which: IMF assistance (US$ million)119.80
(SDR equivalent in millions)88.95
Completion point dateNovember 2001
II. Disbursement of IMF assistance (SDR Million)
Assistance disbursed to the member88.95
Interim assistance26.68
Completion point balance62.27
Additional disbursement of interest income27.45
Total disbursements96.40

Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts can not be added.

Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.

Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts can not be added.

Under the enhanced framework, an additional disbursement is made at the completion point corresponding to interest income earned on the amount committed at the decision point but not disbursed during the interim period.

VIII. Implementation of Multilateral Debt Relief Initiative (MDRI):
I. MDRI-eligible debt (SDR Million)1234.03
Financed by: MDRI Trust207.00
Remaining HIPC resources27.03
II. Debt Relief by Facility (SDR Million)
Eligible Debt
Delivery
DateGRAPRGFTotal
January 2006N/A234.03234.03

The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.

IX. Safeguards Assessments:

Safeguards assessments of the Bank of Tanzania (BoT) were completed in December 2003, August 2008, and November 2009. The 2009 assessment found that, while the BoT had taken steps to strengthen its safeguards framework, risks remained due to delays in implementing certain priority recommendations from the 2008 voluntary assessment. The external audit and financial reporting continued to comply with international standards, but the audited results were published with significant delays. The assessment recommended a bank-wide risk assessment, outlined steps needed to modernize the internal audit function, and proposed measures to enhance transparency of financial, control and compliance matters. The BoT has since taken steps to improve the timeliness of its financial audits and the financial statements for 2009/10 were published within the statutory deadline. The implementation of other measures is in progress.

X. Exchange Rate Arrangement:

The currency of Tanzania is the Tanzania shilling. Under the revised classification methodology, Tanzania has a floating exchange rate arrangement. The official exchange rate is determined in relation to the rate established in the interbank market for foreign exchange. The weighted average rate in the interbank market was TSh 1,516.83 per U.S. dollar as of end-February 2011. The exchange system is free of restrictions on the making of payments and transfers for current international transactions.

XI. Article IV Consultation:

The most recent Article IV consultation was concluded on June 8, 2009 (Country Report No. 09/179).

XII. Resident Representative:

Mr. John Wakeman-Linn has been the Senior Resident Representative since August 2010.

Appendix II: Tanzania—Joint Bank-Fund Work Program March 2011–March 2012

TitleProductsProvisional

timing of

missions

(if relevant)
Expected delivery

date
A. Mutual information on relevant work programs
Key elements of World Bank work program in next 12 monthsThe work program will continue to concentrate on areas within the existing and new lending portfolio: primary, secondary, and higher education; health sector development; water and sanitation; social action fund; agriculture; agribusiness development (Southern Agricultural Growth Corridor (SAGCOT)); natural resource management including minerals ; environment; road and railway infrastructure; power sector restructuring; housing finance; statistical capacity; urban; fiscal decentralization; private sector competitiveness; and public sector reform. Increasing regional portfolio in agriculture, health, finance, power, and environment.Continuous
Public expenditure review with the focus on rapid budget analysis (RBA); Public Investment Management (PIM) Assessment; and Public Expenditure Review (PER) with new content on Value for Money in the education sector.April 2011 (PIM Assessment); May 2011 (PER); and November 2011(RBA)
The new WBG Country Assistance Strategy (CAS) is under preparation and has a corporate review (Regional Operations Committee or ROC meeting) in April 2011. It will be presented to the Board in June 2011.June 2011
First operation of the new PRSC/thematic DPO series will be prepared to provide budget support for Tanzania’s 2011/12 budget. It will be submitted for Board approval by December 2011.December 2011
First Pension Reform Programmatic DPO is under preparation for delivery during the first half of 2011/12.December 2011
IMF work program in next 12 monthsSecond PSI Review and Article IV ConsultationMarch 2011May 2011
Third PSI ReviewOctober 2011December 2011
Fourth PSI ReviewMarch 2012May 2012
B. Requests for work program inputs
Fund requests to Bank1. Assessment of key infrastructure projects and sectoral programs.Continuous
2. Assessment of financial health of pension funds.Continuous
3. Inputs on the design of a social protection framework.Continuous
Bank requests to Fund1. Monitoring of government contracting of non-concessional borrowing.Continuous
2. Monitoring of steps to strengthen corporate governance of the BoTContinuous
3. Sharing macro-framework updates.Continuous
4. Statement of fiscal risk and contingent liabilities.Continuous
C. Agreement on joint products and missions
Joint products in next 12 months1. Collaborate on a joint DSAMarch 2011April 2011
2. Collaborate together with other development partners on the annual review of general budget support (GBS AR 2011).Early 2012Early 2012
3. Collaborate on PFM reform program in the context of multi-donor support of the Public Financial Management Reform Program.Continuous

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