Abstract
This paper examines the Maldives’ 2009 Article IV Consultation on economic developments and policies. The Maldivian economy is facing large external and fiscal imbalances, resulting from the severe impact of the global financial crisis and exacerbated by an unsustainable fiscal expansion. The global crisis has led to sharp declines in tourism and related investment, other net capital flows, and exports. This has caused a significant fall in fiscal revenue, compounding a large increase in public spending, and pushed the economy into recession. A rising share of the resulting fiscal deficit has been financed by monetization.
Annex I. Maldives: Fund Relations
(As of October 31, 2009)
I. Membership Status: Joined 1/13/78; Article XIV
II. General Resources Account:
| SDR Million | % Quota | |
|---|---|---|
| Quota | 8.20 | 100.00 |
| Fund holdings of currency | 7.67 | 93.55 |
| Reserve position in Fund | 1.55 | 18.95 |
| SDR Million | % Quota | |
|---|---|---|
| Quota | 8.20 | 100.00 |
| Fund holdings of currency | 7.67 | 93.55 |
| Reserve position in Fund | 1.55 | 18.95 |
III. SDR Department:
| SDR Million | % Allocation | |
|---|---|---|
| Net cumulative allocation | 7.69 | 100.00 |
| Holdings | 7.81 | 101.50 |
| SDR Million | % Allocation | |
|---|---|---|
| Net cumulative allocation | 7.69 | 100.00 |
| Holdings | 7.81 | 101.50 |
IV. Outstanding Purchases and Loans:
| SDR Million | % Quota | |
|---|---|---|
| Emergency assistance | 1.03 | 12.50 |
| SDR Million | % Quota | |
|---|---|---|
| Emergency assistance | 1.03 | 12.50 |
V. Financial Arrangements: None
VI. Projected Obligations to Fund:
(SDR million; based on existing use of resources and present holdings of SDR):
| Forthcoming | ||||
|---|---|---|---|---|
| 2009 | 2010 | 2011 | 2012 | |
| Principal | 0.51 | 0.51 | ||
| Charges/interest | 0.01 | 0.00 | 0.00 | 0.00 |
| Total | 0.52 | 0.52 | 0.00 | 0.00 |
| Forthcoming | ||||
|---|---|---|---|---|
| 2009 | 2010 | 2011 | 2012 | |
| Principal | 0.51 | 0.51 | ||
| Charges/interest | 0.01 | 0.00 | 0.00 | 0.00 |
| Total | 0.52 | 0.52 | 0.00 | 0.00 |
VII. Exchange Arrangements
From March 1, 1982 to June 30, 1985, the Maldivian rufiyaa was pegged to the U.S. dollar. Beginning in July 1985, the exchange rate of the rufiyaa was linked to a trade-weighted basket of currencies, but the exchange rate vis-à-vis the U.S. dollar remained relatively stable until February 1987. On March 1, 1987, the rufiyaa was devalued by 29 percent vis-à-vis the U.S. dollar. From 1987 to 1994, the exchange rate of the rufiyaa was adjusted periodically. Since October 1994, the exchange rate of the rufiyaa remained unchanged at Rf 11.77 per U.S. dollar, until July 25, 2001, when the rufiyaa was devalued to Rf 12.80 per U.S. dollar. Maldives continues to avail itself of the transitional provisions of Article XIV, and has not yet accepted the obligations Article VIII, Sections 2, 3, and 4. It maintains an exchange restriction and a multiple currency practice subject to Fund approval under Article VIII, Sections 2(a) and 3 of the Fund’s Articles of Agreement, arising from the MMA’s policy of rationing its supply of foreign exchange to commercial banks. This action by a governmental agency has caused the channeling of foreign exchange transactions for current international transactions to the parallel market at an exchange rate that deviates by more than 2 percent from the official exchange rate (i.e., a premium of around 10 percent over the official peg), thus giving rise to an additional cost to obtain foreign exchange in such a market.
VIII. Last Article IV Consultation
The 2008 Article IV consultation was concluded by the Executive Board on September 3, 2008.
IX. Technical Assistance
FAD: In April 1994, Mr. Potter and Ms. Bédague visited Male to advise on budget management. This was followed by periodic assistance from Mr. Webber (consultant) over the period November 1994 to December 1995. In July 1994, Mr. Faria and Mr. Kambil (consultant) assisted in formulating a strategy for revenue reform. This was followed by a visit by Mr. Kambil in August/September 1995 to draft tax legislation. In October 1996, a tax administration mission developed a strategy to establish an Inland Revenue Department and a follow-up mission by a consultant took place in June 1997. In May 2007, a mission conducted a diagnostic review of tax and tariff policy and administration. In October 2008 and April 2009, a series of PFM missions provided peripatetic support for the design and implementation of a new government integrated financial management information system (GIFMIS). A joint mission with the World Bank visited Male in April-May 2009 to complete a PEFA assessment.
LEG: In October 2003, Mr. Head provided assistance on the revision of the Maldives Monetary Authority Act (MMA Act). A series of missions (March and September 2005, and April 2006) were provided to revamp the banking law. In August 2009, a mission provided assistance on the MMA Act (jointly with MCM).
MCM: In March 1993, a consultant provided assistance on the introduction of treasury bills. In November 1994, a mission headed by Mr. Taniguchi provided assistance on monetary management, foreign exchange operations, and bank supervision. In February/June 1995, a consultant provided assistance for the development of a treasury bill and MMA certificate market. In February/March 1996, a mission headed by Mr. Swinburne provided advice on the reform of monetary operations and exchange system. This was followed by a visit of a foreign exchange advisor in May 1997. In early 2001, two consultants provided assistance on foreign exchange and monetary management, of two missions each. In July 2001, a consultant provided assistance on monetary management following the lifting of credit ceilings and further impending changes in the monetary framework. In October 2002, a multi-purpose mission took stock of developments and provided recommendations in the areas of banking, foreign exchange operations, and foreign exchange reserves management. In October 2003, in cooperation with the legal consultant, Mr. Dornseif (Deutsche Bundesbank) provided assistance on the drafting of the amended MMA Act. Two missions visited in 2006 on monetary operations, financial market development, and banking issues. In 2007, a series of mission were provided on debt management, monetary policy and financial supervision. In 2008, three missions visited on monetary operations and liquidity management, monetary policy and financial supervision issues. In November 2008 and March/May/August 2009 a series of mission were provided on research capacity building, bank supervision, monetary policy and the MMA act.
STA: In June 1993 and February 1994, assistance was provided on monetary and balance of payments statistics, respectively. In May 1995, a STA consultant provided assistance on the compilation of a new consumer price index, which was followed by further assistance in August 1996. In November 2005, TA was given on monetary and banking issues. In April 2006, STA provided advice on government finance statistics. In January 2007, STA provided advice on balance of payments statistics. In May 2007, STA conducted a mission on Money and Banking Statistics.
X. Safeguards Assessment
A safeguards assessment of the MMA is currently in progress. The assessment evaluates the adequacy of MMA’s external and internal audit mechanisms, legal framework with regard to financial safeguards, financial reporting practices, and systems of internal control. The ongoing assessment notes that there are vulnerabilities in the present external audit of the MMA conducted by the Auditor General. The authorities have agreed to appoint an international firm to perform MMA’s audit in accordance with international standards on auditing, and to take steps to modernize the MMA Act, strengthen its financial reporting practices, and develop its internal audit function.
ANNEX II. Maldives: Relations with the World Bank Group1
(As of October 2009)
The World Bank’s Country Assistance Strategy
The Bank’s Country Assistance Strategy (CAS) FY08–12 aligns a joint IDA/IFC assistance program behind the Government of Maldives’ (GoM) development strategy. The overarching objective is to contribute to policy and institutional reforms to help maintain the country’s successful development trajectory of the last two decades.
The CAS FY08–12 has built in flexibility, and it envisioned a midterm review in FY10. Two of the IDA operations proposed, in mobile phone banking and pension administration were approved by the Bank’s Board in FY08 and FY09 respectively. The strategy proposed a programmatic, policy-based investment model for the second half of the CAS period. The eligibility for the Maldives for IBRD funds was also to be reviewed at that time.
The CAS was prepared jointly by the World Bank and IFC and as such presents a common view of development objectives in the Maldives, together with a commitment to a shared strategy. During the previous CAS period, the IFC had committed a total of US$47.8 million (US$ 46.5 million in debt and the remainder in equity), consisting of four projects in the financial, tourism, logistics and telecommunications sectors. During the first part of the current CAS period (2008 to June 2009) the IFC has more than doubled its commitments to about US$103 million (or roughly twice that of IDA).
As of June 30, 2009 IFC investments spanned three sectors - tourism (72%), telecom (13%) & financial services (15%). During the CAS period to date, IFC further increased its investment in both the tourism and the financial sector through investments in Hotel Shangri La (US $50 million) and HDFC (US $12 million) respectively. In the financial sector, IFC’s advisory services program (US$ 0.8 million) assisted the Maldives Monetary Authority (MMA) in establishing and strengthening prudential guidelines (e.g. Islamic Banking) and also provided technical assistance to help set up a Credit Bureau. Looking ahead, IFC is exploring the possibility of extending the Global Trade Finance Program through the Bank of Maldives. Two of IFC’s 8 investment projects (MFLC-Maldives Finance and Leasing Company and HDFC) have an Advisory Services component. The Advisory Services component to MFLC involves capacity building and SME finance training.
The CAS was designed to mitigate the risks that could reduce the effectiveness of the World Bank Group’s operations and to further develop the ability to monitor the impact of interventions. These include the immediate fiscal risks as well as the political risks due to the democratic transition. To mitigate these risks, the Bank Group maintains dialogue with the authorities and with other donor partners. In addition, the Bank Group is in close dialogue with the authorities and staff of the IMF with regard to the country’s fiscal situation. Finally, given shallow capacity in many of the implementing agencies, there are some implementation risks. Hence operations were to be designed simply and in close coordination with the government. Where possible, government M&E systems were to be upgraded as part of the Bank Group’s interventions so as to avoid the expense of developing project-specific monitoring systems.
Interventions were proposed that build on progress and relationships established by previous operations. They also aim to establish a three pillar platform: (i) economic and fiscal governance, (ii human development and social protection, and (iii) environmental management; for a more long-term or programmatic approach to Bank Group assistance, as proposed by the previous CAS, toward ensuring relevance over the next five years. Despite the short-term risks posed by an expansionary fiscal policy, World Bank Group management committed to stay engaged with the authorities through a program that supports the long-term growth path.
The proposed CAS program is laid out in table at the end of this annex. The CAS allowed for the programs of FY10, FY11 and FY12 to be further elaborated during the CAS period and reviewed as part of the CAS Progress Report (CASPR). The CASPR is currently under preparation.
Lending and AAA program
Applying the principle of selectivity and taking into account the changing country context and challenges facing the Maldives, the proposed World Bank Group assistance program sought to further three strategic development outcomes: (i) a well-managed economy attracting increased investment; (ii) increased quality of education in support of a better skilled workforce; and (iii) improved capacity to manage the country’s pristine, but fragile, natural environment. These strategic outcomes will be supported through IDA credits (mobile phone banking, education, and environmental management), strategic IFC investments and TA and a flexible program of AAA. In addition, two cross-cutting development themes were identified as essential ingredients to the country’s overall development program. These are: building stronger institutions and capacity to levels commensurate with the socio-economic development of the Maldives; and decentralization.
Given the relatively small IDA allocation, making an effective contribution will mean that the Bank Group’s work must be selective, catalytic and well-coordinated with other donors. The CAS extends from the last year of IDA14 through the first year of IDA16.2 The overall size of the IDA envelope during this five-year period was assumed to be about SDR 30 million (about US$45 million). There was US$20 million available in FY08, and about $17 million (SDR 10.9 million) was allocated to the Maldives for all of IDA 15. However, it was recently agreed that a regional re-allocation would be made which will increase the country’s IDA allocation by about USD 10.5 million (from SDR 10.9 million to SDR 17.9 million). Therefore there are somewhat more resources available than was anticipated in the CAS.
Given the need for policy reform in the country and the limited resources available for project preparation and AAA, the preferred approach for IDA is to use the DPC instrument unless there is an investment loan that can leverage additional resources. IDA is planning to employ about half of the remaining IDA15 allocation in a DPC for FY10 that would support Government efforts to improve its fiscal situation and meet the targets set in the IMF program. The remaining half (about USD 12 million) will be available to fund some combination of a second phase of the DPC, a new DPC, or new investment lending. Regarding AAA, as recommended in the September brainstorming session, TA would be offered in a few areas, including some where the Bank is already active.
While the IDA allocation is fixed, the mix of products is not. The World Bank Group is working to ensure that the instruments used are consistent with the country’s development context. In particular, a responsive program of analytical work has proved constructive in the Maldives in the past and is consistent with the World Bank Group’s strategy for middle income countries. In addition, the proposed sector lending program assumes that authorities manage the current risks and avert a crisis. Development policy lending is preferable, but will be contingent on demonstrated reforms. To this end, a DPL operation is under consideration for FY10, and is reflected in the program table.
IFC’s focus for the remaining period of the CAS will be to further step up its work in climate change through clean energy audits with clients and also in collaborating with the World Bank on other areas of the climate change agenda (see below). Infrastructure will also remain a focus area for both IFC investment and advisory work especially in supporting the government’s privatization agenda through advisory work on setting up PPPs. IFC will also be working to respond to the Government’s request to help with exploring opportunities to expand financing to SMEs, and also to support student loans, in the coming years.
The teams of the IMF and other IFIs have been working closely with the World Bank’s macro and fiscal team.
IBRD/IDA Lending Operations
Note: Disbursement figures subject to SDR/USD exchange rate fluctuations. Source: WB Operations Portal and Client Connection.
US$10 million were cancelled to make IDA resources available under the Maldives Post-Tsunami Emergency Recovery Credit and Grant. Original commitment was US$21.3 million. US$5.7 million were then regranted as additional financing in 2006.
Of this total, $8.4 million provided as credit and $5.6 million (40 percent of total financing) as grant.
US$2 million cancelled to make IDA resources available under the Maldives Post-Tsunami Emergency Recovery Credit and Grant. US$1.4 million in additional financing was contributed to the project in 2006.
At current SDR/USD rates.
IBRD/IDA Lending Operations
| Net Commitments | Disbursements 1/ Undisbursed 5/ | ||||
|---|---|---|---|---|---|
| Maldives Environment Management Project | 13.15 | 1.27 | 11.52 | ||
| Mobile Phone Banking Project | 7.7 | 2.68 | 5.15 | ||
| Post Tsunami Emergency Project | 14.0 3/ | 8.94 | 0.015 | ||
| Integrated Human Development | 21.3 2/ | 9.28 | 2.96 | ||
| Pension and Social Protection Administration | 3.8 | 0 | 4.16 | ||
| Sub-total | 59.95 | 22.17 | 23.80 | ||
| Closed projects (IDA) | |||||
| Fisheries I | 3.2 | 1.6 | … | ||
| Fisheries II | 5.0 | 5.0 | … | ||
| Fisheries III | 10.7 | 9.4 | … | ||
| Male Airport Upgrading | 7.5 | 7.5 | … | ||
| Education and Training | 8.2 | 7.3 | … | ||
| Education and Training II | 13.4 | 12.9 | … | ||
| Education and Training III | 18.6 4/ | 16.8 | … | ||
| Sub-total | 66.6 | 61.0 | … | ||
| Total | 126.55 | 83.17 | 23.80 | ||
Note: Disbursement figures subject to SDR/USD exchange rate fluctuations. Source: WB Operations Portal and Client Connection.
US$10 million were cancelled to make IDA resources available under the Maldives Post-Tsunami Emergency Recovery Credit and Grant. Original commitment was US$21.3 million. US$5.7 million were then regranted as additional financing in 2006.
Of this total, $8.4 million provided as credit and $5.6 million (40 percent of total financing) as grant.
US$2 million cancelled to make IDA resources available under the Maldives Post-Tsunami Emergency Recovery Credit and Grant. US$1.4 million in additional financing was contributed to the project in 2006.
At current SDR/USD rates.
IBRD/IDA Lending Operations
| Net Commitments | Disbursements 1/ Undisbursed 5/ | ||||
|---|---|---|---|---|---|
| Maldives Environment Management Project | 13.15 | 1.27 | 11.52 | ||
| Mobile Phone Banking Project | 7.7 | 2.68 | 5.15 | ||
| Post Tsunami Emergency Project | 14.0 3/ | 8.94 | 0.015 | ||
| Integrated Human Development | 21.3 2/ | 9.28 | 2.96 | ||
| Pension and Social Protection Administration | 3.8 | 0 | 4.16 | ||
| Sub-total | 59.95 | 22.17 | 23.80 | ||
| Closed projects (IDA) | |||||
| Fisheries I | 3.2 | 1.6 | … | ||
| Fisheries II | 5.0 | 5.0 | … | ||
| Fisheries III | 10.7 | 9.4 | … | ||
| Male Airport Upgrading | 7.5 | 7.5 | … | ||
| Education and Training | 8.2 | 7.3 | … | ||
| Education and Training II | 13.4 | 12.9 | … | ||
| Education and Training III | 18.6 4/ | 16.8 | … | ||
| Sub-total | 66.6 | 61.0 | … | ||
| Total | 126.55 | 83.17 | 23.80 | ||
Note: Disbursement figures subject to SDR/USD exchange rate fluctuations. Source: WB Operations Portal and Client Connection.
US$10 million were cancelled to make IDA resources available under the Maldives Post-Tsunami Emergency Recovery Credit and Grant. Original commitment was US$21.3 million. US$5.7 million were then regranted as additional financing in 2006.
Of this total, $8.4 million provided as credit and $5.6 million (40 percent of total financing) as grant.
US$2 million cancelled to make IDA resources available under the Maldives Post-Tsunami Emergency Recovery Credit and Grant. US$1.4 million in additional financing was contributed to the project in 2006.
At current SDR/USD rates.
Program Proposed in CAS (FY08-12)
Program Proposed in CAS (FY08-12)
| Pillar | I: Economic governance | II: Human development | III: Environmental management |
|---|---|---|---|
| IDACredits (TA & Investment) (New projects - Ongoing projects) | |||
| FY08 |
|
|
|
| FY09 |
|
| |
| FY10 | Possible DPL | ||
| FY11 |
|
| |
| FY12 | tbd | tbd | Tbd |
| AAA (TA & ESW) | |||
| FY08 | |||
| FY09 |
| ||
| FY10 |
| ||
| FY11 |
| ||
| FY12 | tbd | tbd |
|
| IFC Investment & Advisory Services | |||
| FY08 |
|
|
|
| FY09 |
|
|
|
| FY10 |
|
|
|
Program Proposed in CAS (FY08-12)
| Pillar | I: Economic governance | II: Human development | III: Environmental management |
|---|---|---|---|
| IDACredits (TA & Investment) (New projects - Ongoing projects) | |||
| FY08 |
|
|
|
| FY09 |
|
| |
| FY10 | Possible DPL | ||
| FY11 |
|
| |
| FY12 | tbd | tbd | Tbd |
| AAA (TA & ESW) | |||
| FY08 | |||
| FY09 |
| ||
| FY10 |
| ||
| FY11 |
| ||
| FY12 | tbd | tbd |
|
| IFC Investment & Advisory Services | |||
| FY08 |
|
|
|
| FY09 |
|
|
|
| FY10 |
|
|
|
ANNEX III. Maldives: Relations with the Asian Development Bank3
(As of 30 September 2009)
Loans
Since 1981, Asian Development Bank (AsDB) has provided 17 loans with total approved amount of $104.31 million.
As of 30 September 2009, seven loans were active with a net loan amount of $47.93 million comprising of two projects in transport and communication amounting to $17.09 million (36 percent), one for energy for $9.62 million (20 percent), one for industry and trade for $7.21 million (15 percent), one for education for $6.12 million (13 percent), one for water supply, sanitation, and waste management for $6.11 million (13 percent) and one for multisector for $1.77 million (4 percent).
As of 30 September 2009, contract awards totaled $2.45 million, bringing the cumulative figure to $28.03 million. Of the total contract awards, $2.292 million (93 percent) went for the single education project, followed by $0.134 million (6 percent) for the energy project and by $0.026 million for the two transport and communications projects.
Disbursements as of 30 September 2009 totaled $3.991 million, bringing cumulative disbursements to $20.34 million. The disbursement ratio was 12.82 percent.
Technical assistance
As of 30 September 2009, AsDB had approved 56 technical assistance (TA) projects for a total amount of $19.5 million of which 16 had been project preparatory and 40 had been advisory TAs addressing institutional strengthening and capacity development.
In terms of TA amount, assistance is largest for law, economic management, and public policy at 47 percent for 22 projects, followed by transport and communications at 15 percent for 11 projects, education at 10 percent for 6 projects, energy at 7 percent for 6 projects, industry and trade at 7 percent for 2 projects, agriculture at 6 percent for 3 projects, finance at 5 percent for 4 projects, urban development and multisector at 3 percent for 2 projects.
As of 30 September 2009, there are 4 TAs in the active portfolio with a total amount of $1.60 million. Of these, 1 is project preparatory and 3 are advisory.
Annex IV. Maldives—Statistical Issues
As of October 27, 2009
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision has some shortcomings, but is broadly adequate for surveillance. Macroeconomic statistics have improved in recent years, with technical assistance from STA and the Asian Development Bank (AsDB). Remaining shortcomings affect the balance of payments, government finance, and national accounts statistics. The main official statistical publication is the Statistical Yearbook of Maldives, which contains data series up to 2004. APD receives a monthly electronic statistical report, covering a broad range of economic and financial statistics. It also receives, albeit with a lag, the Quarterly Economic Bulletin (QEB) and the Annual Report (AR) of the Maldives Monetary Authority (MMA). | |
| Real sector: National accounts statistics are available only on an annual basis and with a considerable lag; while GDP estimates are made using both the production and expenditure approaches, these estimates are inconsistent. Furthermore, the base year for constant price estimates is 1995, so that recent changes in the structure of the economy are not reflected by the base period weights. The AsDB is assisting the authorities in setting up a framework for compiling more comprehensive national accounts. | |
| Recently, the CPI has been rebased to June 2004=100, with assistance from the AsDB. Weights are based on the household income and expenditure survey that was conducted between September 2002 and June 2003 and adjusted for price changes up to June 2004. | |
| Fiscal sector: General government data are reported for publication in the GFS Yearbook and the latest published data are for 2008. Monthly data on revenue and expenditure are available, but the reporting system is new, and its reliability is as yet untested. In particular, the consistency of these data with below-the-line financing numbers provided by the monetary authorities is weak. Data on external debt are subject to reconciliation with creditors. Data on the operations of state enterprises are limited. | |
| Monetary sector: APD receives a weekly electronic report on monetary statistics, covering the balance sheets of the MMA and the commercial banks. Current summary data are published in the MMA’s Monthly Statistics publication as well as in its QEB and AR, but with a significant lag. There are inconsistencies between monetary and fiscal data regarding the financing of the fiscal deficit due to issues of timing and coverage. An April 2007 STA monetary and financial statistics mission completed the standardized report forms for the central bank and other depository corporations, and developed an integrated monetary database that meets the needs of the MMA, STA, and APD, which is expected to become operational shortly. It is expected that a new call report form to obtain balance-sheet data for other financial corporations will be introduced with the assistance of a follow-up mission. | |
| External sector: MMA compiles balance of payments data on an annual basis. There are problems of coverage and measurement in a range of areas. Travel credits (receipts) are still estimated on the basis of a small, outdated, survey of resorts/hotels. Coverage of foreign direct investment firms is limited, leading to underreporting. Estimates of distributed and reinvested earnings of direct investment enterprises in the tourism sector remain unsatisfactory, and information on private financial flows is incomplete. Data on the international investment position are incomplete as private sector data are not available. Quarterly data on external debt and debt service are available for the government and the monetary authority, and to some extent for the banking sector and state enterprises at the time of the annual consultation missions, but no data are reported for the nonfinancial private sector. A STA technical assistance mission in January 2007 proposed steps to improve data on direct investment, travel receipts, and a range of other specific items. | |
| Official reserves assets are reported weekly with a (variable) one-week lag. Predetermined foreign currency outflows (mainly debt service payments) are known and reported to APD at the time of annual Article IV consultation missions, while other movements of foreign currency assets are not identified. | |
| II. Data Standards and Quality | |
| Maldives does not participate in the General Data Dissemination System (GDDS). | No data ROSC available. |
| III. Reporting to STA (Optional) | |
| The authorities report macroeconomic data to the Fund on a regular and generally timely basis for publication in the IFS, BOPSY, and GFSY. | |
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision has some shortcomings, but is broadly adequate for surveillance. Macroeconomic statistics have improved in recent years, with technical assistance from STA and the Asian Development Bank (AsDB). Remaining shortcomings affect the balance of payments, government finance, and national accounts statistics. The main official statistical publication is the Statistical Yearbook of Maldives, which contains data series up to 2004. APD receives a monthly electronic statistical report, covering a broad range of economic and financial statistics. It also receives, albeit with a lag, the Quarterly Economic Bulletin (QEB) and the Annual Report (AR) of the Maldives Monetary Authority (MMA). | |
| Real sector: National accounts statistics are available only on an annual basis and with a considerable lag; while GDP estimates are made using both the production and expenditure approaches, these estimates are inconsistent. Furthermore, the base year for constant price estimates is 1995, so that recent changes in the structure of the economy are not reflected by the base period weights. The AsDB is assisting the authorities in setting up a framework for compiling more comprehensive national accounts. | |
| Recently, the CPI has been rebased to June 2004=100, with assistance from the AsDB. Weights are based on the household income and expenditure survey that was conducted between September 2002 and June 2003 and adjusted for price changes up to June 2004. | |
| Fiscal sector: General government data are reported for publication in the GFS Yearbook and the latest published data are for 2008. Monthly data on revenue and expenditure are available, but the reporting system is new, and its reliability is as yet untested. In particular, the consistency of these data with below-the-line financing numbers provided by the monetary authorities is weak. Data on external debt are subject to reconciliation with creditors. Data on the operations of state enterprises are limited. | |
| Monetary sector: APD receives a weekly electronic report on monetary statistics, covering the balance sheets of the MMA and the commercial banks. Current summary data are published in the MMA’s Monthly Statistics publication as well as in its QEB and AR, but with a significant lag. There are inconsistencies between monetary and fiscal data regarding the financing of the fiscal deficit due to issues of timing and coverage. An April 2007 STA monetary and financial statistics mission completed the standardized report forms for the central bank and other depository corporations, and developed an integrated monetary database that meets the needs of the MMA, STA, and APD, which is expected to become operational shortly. It is expected that a new call report form to obtain balance-sheet data for other financial corporations will be introduced with the assistance of a follow-up mission. | |
| External sector: MMA compiles balance of payments data on an annual basis. There are problems of coverage and measurement in a range of areas. Travel credits (receipts) are still estimated on the basis of a small, outdated, survey of resorts/hotels. Coverage of foreign direct investment firms is limited, leading to underreporting. Estimates of distributed and reinvested earnings of direct investment enterprises in the tourism sector remain unsatisfactory, and information on private financial flows is incomplete. Data on the international investment position are incomplete as private sector data are not available. Quarterly data on external debt and debt service are available for the government and the monetary authority, and to some extent for the banking sector and state enterprises at the time of the annual consultation missions, but no data are reported for the nonfinancial private sector. A STA technical assistance mission in January 2007 proposed steps to improve data on direct investment, travel receipts, and a range of other specific items. | |
| Official reserves assets are reported weekly with a (variable) one-week lag. Predetermined foreign currency outflows (mainly debt service payments) are known and reported to APD at the time of annual Article IV consultation missions, while other movements of foreign currency assets are not identified. | |
| II. Data Standards and Quality | |
| Maldives does not participate in the General Data Dissemination System (GDDS). | No data ROSC available. |
| III. Reporting to STA (Optional) | |
| The authorities report macroeconomic data to the Fund on a regular and generally timely basis for publication in the IFS, BOPSY, and GFSY. | |
Maldives: Table of Common Indicators Required for Surveillance
(As of November 17, 2009)
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positionsvis-á-vis nonresidents.
Daily (D); Weekly (W); Monthly (M); Quarterly (Q); Annually (A); Irregular (I); Not Available (NA).
Maldives: Table of Common Indicators Required for Surveillance
(As of November 17, 2009)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | 10/29/2009 | 11/08/2009 | W | W | M |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 10/29/2009 | 11/08/2009 | W | W | M |
| Reserve/Base Money | 10/29/2009 | 11/08/2009 | W | W | M |
| Broad Money | 8/31/2009 | 9/24/2009 | M | M | M |
| Central Bank Balance Sheet | 10/29/2009 | 11/08/2009 | W | W | M |
| Consolidated Balance Sheet of the Banking System | 10/29/2009 | 11/08/2009 | W | W | M |
| Interest Rates2 | 8/31/2009 | 9/24/2009 | M | M | M |
| Consumer Price Index | 7/2009 | 10/16/2009 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 - General Government4 | 2008 | 8/31/2009 | A | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3- Central Government | 2008 | 8/31/2009 | A | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 2008 | 8/31/2009 | A | M | M |
| External Current Account Balance | 2008 | 8/31/2009 | A | M | M |
| Exports and Imports of Goods and Services | 8/31/2009 | 9/24/2009 | M | M | M |
| GDP/GNP | 2008 | 9/19/2009 | A | M | M |
| Gross External Debt | 2008 | 9/19/2009 | A | M | M |
| International investment Position6 | 2008 | 8/27/09 | A | A | A |
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positionsvis-á-vis nonresidents.
Daily (D); Weekly (W); Monthly (M); Quarterly (Q); Annually (A); Irregular (I); Not Available (NA).
Maldives: Table of Common Indicators Required for Surveillance
(As of November 17, 2009)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of publication7 | |
|---|---|---|---|---|---|
| Exchange Rates | 10/29/2009 | 11/08/2009 | W | W | M |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 10/29/2009 | 11/08/2009 | W | W | M |
| Reserve/Base Money | 10/29/2009 | 11/08/2009 | W | W | M |
| Broad Money | 8/31/2009 | 9/24/2009 | M | M | M |
| Central Bank Balance Sheet | 10/29/2009 | 11/08/2009 | W | W | M |
| Consolidated Balance Sheet of the Banking System | 10/29/2009 | 11/08/2009 | W | W | M |
| Interest Rates2 | 8/31/2009 | 9/24/2009 | M | M | M |
| Consumer Price Index | 7/2009 | 10/16/2009 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 - General Government4 | 2008 | 8/31/2009 | A | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3- Central Government | 2008 | 8/31/2009 | A | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 2008 | 8/31/2009 | A | M | M |
| External Current Account Balance | 2008 | 8/31/2009 | A | M | M |
| Exports and Imports of Goods and Services | 8/31/2009 | 9/24/2009 | M | M | M |
| GDP/GNP | 2008 | 9/19/2009 | A | M | M |
| Gross External Debt | 2008 | 9/19/2009 | A | M | M |
| International investment Position6 | 2008 | 8/27/09 | A | A | A |
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially determined, including discount rates, money market rates, rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positionsvis-á-vis nonresidents.
Daily (D); Weekly (W); Monthly (M); Quarterly (Q); Annually (A); Irregular (I); Not Available (NA).