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Luxembourg: Staff Report for the 2016 Article IV Consultation–Informational Annex

Author(s):
International Monetary Fund. European Dept.
Published Date:
May 2016
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Fund Relations

(As of March 31, 2016)

Membership Status: Joined December 27, 1945; Article VIII.

General Resources Account:

SDR millionPercent of quota
Quota1,321.80100.00
Fund holding of currency1,090.6782.51
Reserve Tranche Position231.1517.49
Lending to the Fund
New Arrangements to Borrow89.47

SDR Department:

SDR millionPercent of allocation
Net cumulative allocation246.62100.00
Holdings244.5099.14

Outstanding Purchases and Loans: None

Latest Financial Arrangements: None

Projected Payments to Fund (SDR Million); based on existing use of resources and present holdings of SDRs):

Forthcoming
20162017201820192020
Principal0.010.010.010.010.01
Charges/Interest0.010.010.010.010.01

Implementation of HIPC Initiative: Not applicable

Safeguards Assessments: Not applicable

Exchange Rate Assessment: Luxembourg’s currency is the euro, which floats freely and independently against other currencies. Luxembourg has accepted the obligations of Article VIII, Sections 2, 3, and 4, and maintains an exchange system free of restrictions on payments and transfers for current international transactions, other than restrictions notified to the Fund under Decision No. 144 (52/51).

Last Article IV Consultation: The last Article IV consultation was concluded on May 11, 2015. The associated Executive Board assessment is available at http://www.imf.org/external/np/sec/pr/2015/pr15218.htm and the staff report (IMF Country Report No. 15/144) at http://www.imf.org/external/pubs/cat/longres.aspx?sk=42983.0. Luxembourg is on the standard 12 month consultation cycle.

Financial Sector Assessment Program (FSAP) Participation and ROSC: The Financial System Stability Assessment (FSSA) for the last mandatory FSA was discussed by the Board on May 13, 2011. The FSSA and accompanying Reports on the Observation of Standards and Codes (ROSCs) are available at http://www.imf.org/external/pubs/cat/longres.aspx?sk=24995.0.

Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT): In February 2014, the Financial Action Task Force (FATF) recognized that Luxembourg had made significant progress in addressing deficiencies identified in the February 2010 mutual evaluation report and decided to remove the country from the regular follow-up process. The FATF report is available at http://www.fatf-gafi.org/countries/j-m/luxembourg/documents/fur-luxembourg-2014.html.

Statistical Issues

A. Assessment of Data Adequacy for Surveillance

General: Data provision is adequate for surveillance, although macroeconomic data are sometimes released with a significant lag. The Central Service for Statistics and Economic Studies (Statec) regularly publishes a full range of economic and financial data and provides an advance release calendar for main statistical releases at http://www.statistiques.public.lu/fr/agenda/calendrier-diffusion/index.html.

Online access to Statec’s databases is available to all users simultaneously at the time of release through the Statistics Portal of Luxembourg. Key publicly accessible websites for macroeconomic data and analysis are:

National Accounts: Luxembourg avails itself of the flexibility under the Special Data Dissemination Standard (SDDS) for the timeliness of its national accounts, generally disseminating national accounts data not later than four months after the reference period (the SDDS timeliness requirement for the national accounts is three months). Reduction of the reporting lag would aid surveillance.

B. Data Standards and Quality

Luxembourg has been a subscriber to the SDDS since May 12, 2006. Luxembourg uses SDDS flexibility options also on the timeliness of the analytical accounts of the central bank.

No data ROSC is available.

Table of Common Indicators Required for Surveillance
(As of April 11, 2015)Date of Latest ObservationDate ReceivedFrequency of Data7Frequency of Reporting7Frequency of Publication7
Exchange Rates04/04/1604/04/16DDD
International Reserve Assets and Reserve Liabilities of the Monetary Authorities102/29/1603/30/16MMM
Reserve/Base Money02/29/1603/30/16MMM
Broad Money02/29/1603/30/16MMM
Central Bank Balance Sheet02/29/1603/30/16MMM
Consolidated Balance Sheet of the Banking System02/29/1603/30/16MMM
Interest Rates204/04/1604/04/16DDD
Consumer Price Index03/01/1604/06/16MMM
Revenue, Expenditure, Balance and Composition of Financing3 – General Government4201504/11/16AAA
Revenue, Expenditure, Balance and Composition of Financing3– Central Government2015 Q402/29/16QQQ
Stocks of Central Government and Central Government-Guaranteed Debt5201504/11/16QQQ
External Current Account Balance201503/24/16QQQ
Exports and Imports of Goods12/31/1502/24/16MMM
GDP/GNP2015 Q403/24/16QQQ
Gross External Debt2015 Q403/24/16QQQ
International Investment Position62015 Q403/24/15QQQ

Including reserve assets that are pledged or otherwise encumbered.

Both market-based and officially-determined, including discount rates, money market rates, and rates on treasury bills, notes, and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extrabudgetary funds, and social security funds) and the state and local governments.

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).

Including reserve assets that are pledged or otherwise encumbered.

Both market-based and officially-determined, including discount rates, money market rates, and rates on treasury bills, notes, and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extrabudgetary funds, and social security funds) and the state and local governments.

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).

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