Abstract
The key findings of the Republic of Palau’s 2010 Article IV Consultation shows that the single most important issue in Palau remains fiscal policy, including its effect on medium-term growth, as fiscal consolidation proceeds. The global financial crisis followed on the heels of a massive terms-of-trade shock, leading to a sharp curtailment of foreign direct investment and private credit. Tourism tumbled following an airline bankruptcy, and construction activity fell as major infrastructure projects reached completion.
Annex I. Palau: Fund Relations
(As of March 11, 2010)
I. Membership Status: Joined December 16, 1997; Article VIII
II. General Resources Account:
| SDR Million | %Quota | |
|---|---|---|
| Quota | 3.10 | 100.0 |
| Fund Holdings of Currency | 3.10 | 100.0 |
| Reserve position in Fund | 0.00 | 0.03 |
| SDR Million | %Quota | |
|---|---|---|
| Quota | 3.10 | 100.0 |
| Fund Holdings of Currency | 3.10 | 100.0 |
| Reserve position in Fund | 0.00 | 0.03 |
III. SDR Department:
| SDR Million | %Allocation | |
|---|---|---|
| Net Cumulative Allocation | 2.96 | 100.0 |
| Holdings | 2.96 | 100.0 |
| SDR Million | %Allocation | |
|---|---|---|
| Net Cumulative Allocation | 2.96 | 100.0 |
| Holdings | 2.96 | 100.0 |
IV. Outstanding Purchases and Loans: None
V. Financial Arrangements: None
VI. Projected Obligations to Fund: None
VII. Exchange Arrangement:
The U.S. dollar is legal tender and the official currency. Palau maintains an exchange system that is free of restrictions on international payments and transfers for current and capital transactions.
VIII. Article IV Consultation:
The first Article IV consultation discussions took place during June 24-July 6, 1999 and the Article IV consultation procedure was completed on November 10, 1999. The last Article IV consultation discussions were held during February-March 2008. The Executive Board discussed the staff report, Country Report No. 08/161 and concluded the consultation on April 30, 2008. Palau is on a 24-month consultation cycle.
IX. Current Financial Arrangement: None
X. Technical Assistance:
| FAD/ | Preparation of a new tax code, tax and customs | October 1998-March 1999 |
| PFTAC | administration | |
| Modernization of customs administration | February 2004 | |
| Strengthening tax administration | July 2005, June 2006 | |
| Tax reform and strengthening tax administration | November 2007, | |
| September 2008 | ||
| Public expenditure management | January 2007, February 2007 | |
| Fiscal management | March 2007 | |
| Budget process and formulation | January 2007, March 2008 | |
| Cash planning | February 2009, July 2009, November 2009 | |
| LEG | Preparation of a new tax code | October 1998 |
| Banking legislation (together with MFD) | April 2002 | |
| Anti-money laundering legislation | February 2004 | |
| Joint AML/CFT assessment | March 2008 | |
| MFD/ | Establishment of bank supervision functions | October 2000 |
| MCM/ | ||
| PFTAC | Banking law and regulations | January 2001 |
| Assessing compliance with international supervisory standards and effectiveness of anti-monelaundering arrangements in the banking sector | April 2002, August 2004 | |
| Peripatetic advisor to the Financial Institutions Commission (seven short-term visits to advise on implementation of the Financial Institutions Act) | February 2002-March 2004 | |
| Bank supervision advisor to review Financial Institutions Act | April 2005 | |
| Bank supervision: issues related to failure of Pacific Savings Bank | May 2006, November 2006 | |
| Financial sector supervision | April 2007 | |
| Banking supervision advisor to aid with on-site examination | October 2007-November 2007 | |
| Banking supervision advisor to aid in drafting new banking regulations | January 2008 | |
| Banking supervision advisor to aid in preparation of new prudential reporting requirements for banks | January 2009 | |
| Baking supervision advisor to aid in preparation of off-site monitoring system and on-site examination | August 2009 | |
| STA/ PFTAC | National accounts statistics development and estimation | December 2003, April 2004, October 2005, June 2006, May 2007, September 2008, October 2009 |
| Balance of payments statistics development | June 2009 |
| FAD/ | Preparation of a new tax code, tax and customs | October 1998-March 1999 |
| PFTAC | administration | |
| Modernization of customs administration | February 2004 | |
| Strengthening tax administration | July 2005, June 2006 | |
| Tax reform and strengthening tax administration | November 2007, | |
| September 2008 | ||
| Public expenditure management | January 2007, February 2007 | |
| Fiscal management | March 2007 | |
| Budget process and formulation | January 2007, March 2008 | |
| Cash planning | February 2009, July 2009, November 2009 | |
| LEG | Preparation of a new tax code | October 1998 |
| Banking legislation (together with MFD) | April 2002 | |
| Anti-money laundering legislation | February 2004 | |
| Joint AML/CFT assessment | March 2008 | |
| MFD/ | Establishment of bank supervision functions | October 2000 |
| MCM/ | ||
| PFTAC | Banking law and regulations | January 2001 |
| Assessing compliance with international supervisory standards and effectiveness of anti-monelaundering arrangements in the banking sector | April 2002, August 2004 | |
| Peripatetic advisor to the Financial Institutions Commission (seven short-term visits to advise on implementation of the Financial Institutions Act) | February 2002-March 2004 | |
| Bank supervision advisor to review Financial Institutions Act | April 2005 | |
| Bank supervision: issues related to failure of Pacific Savings Bank | May 2006, November 2006 | |
| Financial sector supervision | April 2007 | |
| Banking supervision advisor to aid with on-site examination | October 2007-November 2007 | |
| Banking supervision advisor to aid in drafting new banking regulations | January 2008 | |
| Banking supervision advisor to aid in preparation of new prudential reporting requirements for banks | January 2009 | |
| Baking supervision advisor to aid in preparation of off-site monitoring system and on-site examination | August 2009 | |
| STA/ PFTAC | National accounts statistics development and estimation | December 2003, April 2004, October 2005, June 2006, May 2007, September 2008, October 2009 |
| Balance of payments statistics development | June 2009 |
XI. Resident Representative: None.
Annex II. Palau: Relations with the Pacific Financial Technical Assistance Centre (PFTAC)1
The Centre’s assistance since 2000 has included 35 advisory missions, the participation of officials in seminars (32) and secondments mostly in the tax administration area (10).
Public Financial Management
Palau did not request explicit technical assistance (TA) in this area from 2003 to 2006, but joined the newly-organized Pacific Financial Managers’ Association (PIFMA) in 2006 and hosted the Third PIFMA meeting at Koror in March 2008. PFTAC provided assistance in revenue estimation and in developing the Financial Instructions (FIs) in 2007. This was followed by training on the newly developed FIs in early 2008. Assistance was also provided in November 2009 on setting up a cash planning system in all line ministries. Discussions are underway now to assist the government in taking forward the medium-term budgeting project being discussed with the Asian Development Bank (AsDB).
Tax Administration and Policy
In response to a request received in July 2003, PFTAC reviewed and provided extensive comments on the draft “Registration Corporation Act” and the draft “Reinvestment Incentive Act”. In early 2004, a customs administration mission visited Palau to design a strategy and an action plan to modernize the Customs Division. In mid-2005, a tax administration mission visited Palau to review the organizational structure of the Division of Revenue and Taxation, and its operations. In mid-2006, a tax administration mission visited Palau to review the organizational structure of the Division of Revenue and Taxation, and its operations. In 2007, a tax reform and administration mission visited Palau. In respect of short-term revenue shortfalls, arising from the 2008 budget, advice was given on improving the effectiveness of the tax administration in tackling the high levels of non compliance, policy advice on 19 different short-term revenue raising options and longer-term reform. In September 2008, the Minister of Finance requested the mission focusing on improving domestic revenues. In November 2008, a risk management compliance plan was developed and staff were to understand the concepts and processes to implement the plan. A follow-up mission is planned for 2010.
Financial Sector Regulation and Supervision
PFTAC’s advisor was involved in two follow-up missions for implementing the Financial Institutions Act (passed in June 2001). Subsequently, assistance was provided primarily through the use of peripatetic advisors, although three missions were undertaken during 2006 and 2007 by the PFTAC advisor to provide guidance and recommendations on receivership matters relating to the failure of Pacific Savings Bank. As a result of recommendations by the peripatetic advisors, and likely in response to the recent failure of Pacific Savings Bank, needed amendments to the Financial Institutions Act were approved in February 2008. During 2008 and 2009, the PFTAC advisor was involved in three missions to Palau. These missions involved providing assistance in finalizing regulations for implementing the revised banking law (which have subsequently been issued), drafting and implementing comprehensive prudential reporting requirements for banks and providing training and assistance in the conduct of an on-site bank examination. Additional missions are planned by the PFTAC advisor to provide assistance and training in off-site monitoring and to further the capacity of the staff in bank supervision and on-site bank examination skills.
Economic and Financial Statistics
PFTAC has provided significant statistics technical assistance to the Office of Planning and Statistics (OPS) in Palau since 2003, partly due to the high turnover of statistics staff. Several missions have been undertaken and PFTAC has sponsored statistical staff for secondments and to attend regional training courses. The PFTAC statistics advisor undertook missions to Koror in December 2003 and in April 2004 to assist the authorities in documenting and improving the system of national accounts statistics (NAS) and with finalization of the GDDS metadata.
In October 2005, the PFTAC statistics advisor assisted the authorities in revising NAS for 2001–05. Follow-up national accounts missions were undertaken as follow: June 2006 to provide further NAS training for OPS staff; May 2007 to help finalize GDP estimates up to 2006; September 2008 to update NAS to 2007 and to produce experimental estimates of national income and disposable income; and October 2009 to implement further improvements in the NAS methodology, as well as to update the estimates to 2008. New saving and net lending/borrowing estimates were also produced during that mission. Counterparts were involved in the NAS development work and updating of estimates, and were provided on-the-job and seminar-based training during each NAS mission. One NAS statistician participated in a PFTAC half-funded secondment on data editing at Statistics New Zealand in April 2007, while another NAS statistician participated in the NAS Training Seminar conducted by PFTAC in Nadi in July 2009.
The PFTAC statistics advisor also provided assistance to OPS counterparts in improving data sources and compilation methods for balance of payments (BOP) statistics during his September 2008 and October 2009 missions. In addition, the BOP compiler participated in a one-month PFTAC funded secondment on BOP statistics at Statistics New Zealand in May 2009 and a short-term expert mission to assist with improving BOP statistics was undertaken in June 2009. A follow-up BOP mission is planned for later in 2010.
Annex III. Palau: Relations with the World Bank Group2
Palau became a World Bank Group member in December 1997. Since then, the Bank has provided technical assistance in a number of areas, such as oil and gas, natural resource management, and in the health sector.
The Pacific Regional Strategy directs the Bank’s work in Palau. It focuses on creating an environment conducive to generating sustainable economic growth and employment, while recognizing that small populations and the marked remoteness of the Pacific island countries pose significant development challenges to the region. The country strategy includes technical assistance to the government to prepare primary and secondary legislation for petroleum exploration, development, and production activities, following on from earlier work to aid Palau in developing its oil and gas sector policy. The World Bank is also providing assistance in designing Palau’s revenue and distribution policy with the aim of supporting the development of the relevant regulatory instruments. To this end, the Bank prepared a report on the macroeconomic implications and related policy options and tools for the management of petroleum revenues to facilitate consensus building across levels of government.
As part of a broader effort to deepen engagement with Palau and other World Bank Group members in the North Pacific, the World Bank has recently assigned a Senior Economist based in Washington, D.C. to work with the government and outline a substantive program of technical assistance. Under this initiative, the World Bank has begun to develop a broad development agenda in the North Pacific, including in the areas of growth and development strategies, institutional strengthening, expenditure policy, and public finance management. The World Bank has also been asked to support the development of the National Development Plan alongside the AsDB.
The Doing Business 2010, is the seventh in a series of annual reports investigating the regulations that enhance business activity and those that constrain it. Doing Business ranks Palau based on 10 indicators of business regulation that record the time and cost to meet government requirements in starting and operating a business, trading across borders, paying taxes, and closing a business. Palau was ranked 97 overall out of the 183 economies surveyed for the 2010 report, which covered the period from June 2008 through May 2009.
Palau is an International Bank for Reconstruction and Development (IBRD)-eligible country.
Annex IV. Palau: Relations with the Asian Development Bank3
Palau joined the Asian Development Bank (AsDB) on December 29, 2003, as its sixty-third member. While admitted as a regional country, its country classification was to be determined. AsDB prepared a Country Economic Report for Palau and the Development Status and Country Classification of the Republic of Palau, which served as the basis for a determination of Palau’s development status. On December 16, 2005, Palau was re-classified as a Pacific developing member country. A more recent report prepared by AsDB in 2007, Republic of Palau: Achieving Sustainable Development, provided a more detailed overview on Palau’s economy.
Palau and the AsDB entered into a new 5-year Country Partnership Strategy (CPS) 2009–13. The strategy aligns AsDB ‘s program with that of Palau’s Medium-Term Development Strategy.
The Outcomes or the CPS are: (i) improve public sector effectiveness to achieve the medium-term fiscal strategy; (ii) facilitate private sector development; (iii) deliver safe water and sanitation services to Palauans; and (iv) manage the threat of Climate Change.
Bilateral and regional technical assistance grants scheduled during the strategy are in the attached tables.
Indicative Assistance Pipeline for Lending Products and Services, 2009–2010
Indicative Assistance Pipeline for Lending Products and Services, 2009–2010
| Cost ($ million) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| ADB | |||||||||
| Targeting | ADF | ||||||||
| Item | Classification | Total | OCR | Loans | Grants | Total | Gov’t. | Cofinancing | |
| Year Tentative Loans | |||||||||
| 2009 | |||||||||
| Babeldaob Water | 16.16 | 14.20 | 1.80 | 16.00 | 0.16 | ||||
| Supply Project | |||||||||
| Total | 16.16 | 14.20 | 1.80 | 16.00 | 0.16 | ||||
| 2010 | - | - | - | - | - | - | - | ||
Indicative Assistance Pipeline for Lending Products and Services, 2009–2010
| Cost ($ million) | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| ADB | |||||||||
| Targeting | ADF | ||||||||
| Item | Classification | Total | OCR | Loans | Grants | Total | Gov’t. | Cofinancing | |
| Year Tentative Loans | |||||||||
| 2009 | |||||||||
| Babeldaob Water | 16.16 | 14.20 | 1.80 | 16.00 | 0.16 | ||||
| Supply Project | |||||||||
| Total | 16.16 | 14.20 | 1.80 | 16.00 | 0.16 | ||||
| 2010 | - | - | - | - | - | - | - | ||
Indicative Assistance Pipeline for Nonlending Products and Services, 2009–2011
Indicative Assistance Pipeline for Nonlending Products and Services, 2009–2011
| Sources of Funding | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| ADB | Others | ||||||||
| Sector | Responsible | Amount | Amount | Total | |||||
| Assistance Name | Division | Source | ($’000) | Source | ($’000) | ($’000) | |||
| 2007 | |||||||||
| Public Sector Management | |||||||||
| Facility for Economic and Infrastructure | PAHQ | JSF | 1000 | - | 1000 | ||||
| Management | |||||||||
| Water Supply and Other Municipal | |||||||||
| Infrastructure and Services | |||||||||
| Preparing the Babeldaob Water Supply | PAHQ | JSF | 600 | - | 600 | ||||
| 2008 | |||||||||
| Public Sector Management | |||||||||
| Development of a Sustainable Health | PAHQ | JSF | 400 | - | 400 | ||||
| Financing Scheme | |||||||||
| 2009 | |||||||||
| Public Sector Management | |||||||||
| Implementing a Medium Term Budget | PAHQ | TASF | 500 | - | 500 | ||||
| Framework | |||||||||
| 2010 | |||||||||
| Water Supply and Other Municipal | |||||||||
| Infrastructure and Services | |||||||||
| Preparing the Sanitation Sector | PAHQ | JSF | 700 | - | 700 | ||||
| Development Project | |||||||||
| Water Supply and Other Municipal | |||||||||
| Infrastructure and Services | |||||||||
| Water Supply and Sanitation Utility | PAHQ | TBC | 500 | - | 500 | ||||
| Strengthening Project | |||||||||
| 2011 | |||||||||
| Public Sector Management | |||||||||
| Public Sector Reform Facility | PAHQ | TASF | 1,000 | - | 1,000 | ||||
| Total | 4,700 | - | 4,700 | ||||||
Indicative Assistance Pipeline for Nonlending Products and Services, 2009–2011
| Sources of Funding | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| ADB | Others | ||||||||
| Sector | Responsible | Amount | Amount | Total | |||||
| Assistance Name | Division | Source | ($’000) | Source | ($’000) | ($’000) | |||
| 2007 | |||||||||
| Public Sector Management | |||||||||
| Facility for Economic and Infrastructure | PAHQ | JSF | 1000 | - | 1000 | ||||
| Management | |||||||||
| Water Supply and Other Municipal | |||||||||
| Infrastructure and Services | |||||||||
| Preparing the Babeldaob Water Supply | PAHQ | JSF | 600 | - | 600 | ||||
| 2008 | |||||||||
| Public Sector Management | |||||||||
| Development of a Sustainable Health | PAHQ | JSF | 400 | - | 400 | ||||
| Financing Scheme | |||||||||
| 2009 | |||||||||
| Public Sector Management | |||||||||
| Implementing a Medium Term Budget | PAHQ | TASF | 500 | - | 500 | ||||
| Framework | |||||||||
| 2010 | |||||||||
| Water Supply and Other Municipal | |||||||||
| Infrastructure and Services | |||||||||
| Preparing the Sanitation Sector | PAHQ | JSF | 700 | - | 700 | ||||
| Development Project | |||||||||
| Water Supply and Other Municipal | |||||||||
| Infrastructure and Services | |||||||||
| Water Supply and Sanitation Utility | PAHQ | TBC | 500 | - | 500 | ||||
| Strengthening Project | |||||||||
| 2011 | |||||||||
| Public Sector Management | |||||||||
| Public Sector Reform Facility | PAHQ | TASF | 1,000 | - | 1,000 | ||||
| Total | 4,700 | - | 4,700 | ||||||
Regional Assistance Accessible by Palau (2009)4
Regional Assistance Accessible by Palau (2009)4
| Sources of Funding | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ADB | Others | ||||||||||||||||||
| Sector | Amount | Amount | Total | ||||||||||||||||
| Assistance Name | Source | ($’000) | Source | ($’000) | ($’000) | ||||||||||||||
| 2009 | |||||||||||||||||||
| Education | |||||||||||||||||||
| Skilling the Pacific Implementation | TASF | 600 | - | 600 | |||||||||||||||
| Energy | |||||||||||||||||||
| Promoting Access to Renewable Energy in the | - | - | CEF | 3,000 | 3,000 | ||||||||||||||
| Pacific | |||||||||||||||||||
| Multisector | |||||||||||||||||||
| Establishment of the Pacific Infrastructure Advisory | - | - | AusAID | 1,800 | 1,800 | ||||||||||||||
| Centre | |||||||||||||||||||
| Supporting ADB’s Engagement in Fragile Situations | TASF | 750 | - | 750 | |||||||||||||||
| Strengthening the Capacity of Pacific DMCs to | TASF & | 3,500 | - | 3,500 | |||||||||||||||
| Respond to Climate Change | CCF | ||||||||||||||||||
| Public Sector Management | |||||||||||||||||||
| Pacific Economic Management | TASF | 3,000 | - | 3,000 | |||||||||||||||
| Private Sector Development Initiative, | JSF & | 4,500 | AusAID | 6,500 | 11,000 | ||||||||||||||
| Phase II | TASF | ||||||||||||||||||
| Transport and Communication | |||||||||||||||||||
| Pacific Regional ICT Development | - | - | GoK | 500 | 500 | ||||||||||||||
| Total | 12,350 | 11,800 | 24,150 | ||||||||||||||||
Regional Assistance Accessible by Palau (2009)4
| Sources of Funding | |||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ADB | Others | ||||||||||||||||||
| Sector | Amount | Amount | Total | ||||||||||||||||
| Assistance Name | Source | ($’000) | Source | ($’000) | ($’000) | ||||||||||||||
| 2009 | |||||||||||||||||||
| Education | |||||||||||||||||||
| Skilling the Pacific Implementation | TASF | 600 | - | 600 | |||||||||||||||
| Energy | |||||||||||||||||||
| Promoting Access to Renewable Energy in the | - | - | CEF | 3,000 | 3,000 | ||||||||||||||
| Pacific | |||||||||||||||||||
| Multisector | |||||||||||||||||||
| Establishment of the Pacific Infrastructure Advisory | - | - | AusAID | 1,800 | 1,800 | ||||||||||||||
| Centre | |||||||||||||||||||
| Supporting ADB’s Engagement in Fragile Situations | TASF | 750 | - | 750 | |||||||||||||||
| Strengthening the Capacity of Pacific DMCs to | TASF & | 3,500 | - | 3,500 | |||||||||||||||
| Respond to Climate Change | CCF | ||||||||||||||||||
| Public Sector Management | |||||||||||||||||||
| Pacific Economic Management | TASF | 3,000 | - | 3,000 | |||||||||||||||
| Private Sector Development Initiative, | JSF & | 4,500 | AusAID | 6,500 | 11,000 | ||||||||||||||
| Phase II | TASF | ||||||||||||||||||
| Transport and Communication | |||||||||||||||||||
| Pacific Regional ICT Development | - | - | GoK | 500 | 500 | ||||||||||||||
| Total | 12,350 | 11,800 | 24,150 | ||||||||||||||||
Annex V. Palau—Statistic Issues
As of March 11, 2010
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data currently available have some shortcomings, but are broadly adequate for surveillance. Recently, historical data in a few areas have shown significant improvements. However, the authorities’ capacity to compile statistics on national accounts, prices, government finance, and balance of payments is deteriorating due to the substantial reduction in the number of staff in the Bureau of Budget and Planning. Going forward, the lack of staff, if not addressed, would impede effective surveillance. The authorities have started recruitment of new staff. | |
| National Accounts: With PFTAC’s assistance, production-based GDP estimates through FY2009 have been significantly improved. Expenditure-based GDP data have been estimated at the same time. These estimates are about 30–40 percent higher in levels than the authorities’ official figures, as under-estimation has been corrected across sectors. The authorities have not yet adopted the new estimates as their official GDP numbers. Despite the improvements in historical data, the authorities’ capacity to produce consistent estimates of the national accounts will likely remain weak, unless the under-staffing problem is resolved. | |
| Price statistics: A consumer price index has been compiled since 2000 on a quarterly basis, but reported irregularly. The index has not been complied since mid-2009. | |
| Government finance statistics: General government fiscal data are compiled as part of the annual budgetary process. The authorities provide fiscal data to the Fund in a standard Fund-format usable for analysis, but data quality and timeliness is are deteriorating due to the loss of institutional memory and under-staffing. | |
| Monetary statistics: Monetary statistics have significantly improved. Previously, balance sheet data were not regularly provided by banks to the authorities because they were not legally required to do so, and hence the banks only filed quarterly tax forms to the Ministry of Finance. Since Q3 2009, banks have been required to submit detailed financial statements every quarter, including balance sheets and profit and loss statements, to the Financial Institutions Commission. | |
| Balance of payments: Together with national accounts statistics, balance of payments estimates have been upgraded through FY2008 with the help of PFTAC. The authorities’ compilation capacity is weak, and will likely remain so without additional staff. | |
| II. Data Standards and Quality | |
| Does not participant in the General Data Dissemination System (GDDS). | No data ROSC available. |
| III. Reporting to STA (Optional) | |
| No data are currently reported to Statistics Department for publication in the Government Finance Statistics Yearbook, the Balance of Payments Statistics Yearbook, or the International Financial Statistics. | |
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data currently available have some shortcomings, but are broadly adequate for surveillance. Recently, historical data in a few areas have shown significant improvements. However, the authorities’ capacity to compile statistics on national accounts, prices, government finance, and balance of payments is deteriorating due to the substantial reduction in the number of staff in the Bureau of Budget and Planning. Going forward, the lack of staff, if not addressed, would impede effective surveillance. The authorities have started recruitment of new staff. | |
| National Accounts: With PFTAC’s assistance, production-based GDP estimates through FY2009 have been significantly improved. Expenditure-based GDP data have been estimated at the same time. These estimates are about 30–40 percent higher in levels than the authorities’ official figures, as under-estimation has been corrected across sectors. The authorities have not yet adopted the new estimates as their official GDP numbers. Despite the improvements in historical data, the authorities’ capacity to produce consistent estimates of the national accounts will likely remain weak, unless the under-staffing problem is resolved. | |
| Price statistics: A consumer price index has been compiled since 2000 on a quarterly basis, but reported irregularly. The index has not been complied since mid-2009. | |
| Government finance statistics: General government fiscal data are compiled as part of the annual budgetary process. The authorities provide fiscal data to the Fund in a standard Fund-format usable for analysis, but data quality and timeliness is are deteriorating due to the loss of institutional memory and under-staffing. | |
| Monetary statistics: Monetary statistics have significantly improved. Previously, balance sheet data were not regularly provided by banks to the authorities because they were not legally required to do so, and hence the banks only filed quarterly tax forms to the Ministry of Finance. Since Q3 2009, banks have been required to submit detailed financial statements every quarter, including balance sheets and profit and loss statements, to the Financial Institutions Commission. | |
| Balance of payments: Together with national accounts statistics, balance of payments estimates have been upgraded through FY2008 with the help of PFTAC. The authorities’ compilation capacity is weak, and will likely remain so without additional staff. | |
| II. Data Standards and Quality | |
| Does not participant in the General Data Dissemination System (GDDS). | No data ROSC available. |
| III. Reporting to STA (Optional) | |
| No data are currently reported to Statistics Department for publication in the Government Finance Statistics Yearbook, the Balance of Payments Statistics Yearbook, or the International Financial Statistics. | |
Palau: Table of Common Indicators Required for Surveillance
As of March 11, 2010
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency, but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency, but settled by other means.
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 positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
These columns should only be included for countries for which Data ROSC (or a Substantive Update) has been published.
Reflects the assessment provided in the data ROSC or the Substantive Update (published on …, and based on the findings of the mission that took place during…) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Same as footnote 9, except referring to international standards concerning (respectively) source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Palau: Table of Common Indicators Required for Surveillance
As of March 11, 2010
| Date of latest observation (For all dates in table, please use format mm/dd/yy) | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | Memo Items:8 | ||
|---|---|---|---|---|---|---|---|
| Data Quality - Methodological soundness9 | Data Quality - Accuracy and reliability10 | ||||||
| Exchange Rates (U.S. dollar is official currency) | NA | NA | NA | NA | NA | ||
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | NA | NA | NA | NA | NA | ||
| Reserve/Base Money | NA | NA | NA | NA | NA | ||
| Broad Money | NA | NA | NA | NA | NA | ||
| Central Bank Balance Sheet | NA | NA | NA | NA | NA | ||
| Consolidated Balance Sheet of the Banking System | NA | NA | NA | NA | NA | ||
| Interest Rates2 | NA | NA | NA | NA | NA | ||
| Consumer Price Index | 06/30/09 | 07/31/09 | Q | I | I | ||
| Revenue, Expenditure, Balance and Composition of Financing3 - General Government4 | 09/30/09 | 02/19/10 | A | I | I | ||
| Revenue, Expenditure, Balance and Composition of Financing3- Central Government | 09/30/09 | 02/19/10 | A | I | I | ||
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 09/30/09 | 02/19/10 | A | I | NA | ||
| External Current Account Balance | 09/30/08 | 10/30/10 | A | I | I | ||
| Exports and Imports of Goods and Services | 09/30/08 | 10/30/10 | A | I | NA | ||
| GDP/GNP | 09/30/09 | 11/06/09 | A | I | I | ||
| Gross External Debt | 09/30/09 | 02/19/10 | A | I | NA | ||
| International Investment Position6 | 09/30/09 | 02/19/10 | A | I | NA | ||
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency, but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency, but settled by other means.
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 positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
These columns should only be included for countries for which Data ROSC (or a Substantive Update) has been published.
Reflects the assessment provided in the data ROSC or the Substantive Update (published on …, and based on the findings of the mission that took place during…) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Same as footnote 9, except referring to international standards concerning (respectively) source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
Palau: Table of Common Indicators Required for Surveillance
As of March 11, 2010
| Date of latest observation (For all dates in table, please use format mm/dd/yy) | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | Memo Items:8 | ||
|---|---|---|---|---|---|---|---|
| Data Quality - Methodological soundness9 | Data Quality - Accuracy and reliability10 | ||||||
| Exchange Rates (U.S. dollar is official currency) | NA | NA | NA | NA | NA | ||
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | NA | NA | NA | NA | NA | ||
| Reserve/Base Money | NA | NA | NA | NA | NA | ||
| Broad Money | NA | NA | NA | NA | NA | ||
| Central Bank Balance Sheet | NA | NA | NA | NA | NA | ||
| Consolidated Balance Sheet of the Banking System | NA | NA | NA | NA | NA | ||
| Interest Rates2 | NA | NA | NA | NA | NA | ||
| Consumer Price Index | 06/30/09 | 07/31/09 | Q | I | I | ||
| Revenue, Expenditure, Balance and Composition of Financing3 - General Government4 | 09/30/09 | 02/19/10 | A | I | I | ||
| Revenue, Expenditure, Balance and Composition of Financing3- Central Government | 09/30/09 | 02/19/10 | A | I | I | ||
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 09/30/09 | 02/19/10 | A | I | NA | ||
| External Current Account Balance | 09/30/08 | 10/30/10 | A | I | I | ||
| Exports and Imports of Goods and Services | 09/30/08 | 10/30/10 | A | I | NA | ||
| GDP/GNP | 09/30/09 | 11/06/09 | A | I | I | ||
| Gross External Debt | 09/30/09 | 02/19/10 | A | I | NA | ||
| International Investment Position6 | 09/30/09 | 02/19/10 | A | I | NA | ||
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency, but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency, but settled by other means.
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 positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
These columns should only be included for countries for which Data ROSC (or a Substantive Update) has been published.
Reflects the assessment provided in the data ROSC or the Substantive Update (published on …, and based on the findings of the mission that took place during…) for the dataset corresponding to the variable in each row. The assessment indicates whether international standards concerning concepts and definitions, scope, classification/sectorization, and basis for recording are fully observed (O); largely observed (LO); largely not observed (LNO); not observed (NO); and not available (NA).
Same as footnote 9, except referring to international standards concerning (respectively) source data, assessment of source data, statistical techniques, assessment and validation of intermediate data and statistical outputs, and revision studies.
The PFTAC in Suva, Fiji, is a regional technical assistance institution operated by the IMF with financial support of the AsDB, Australia, Japan, Korea and New Zealand. The Centre’s aim is to build skills and institutional capacity for effective economic and financial management that can be sustained at the national and regional level. Member countries are Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu, and Vanuatu.
Prepared by World Bank staff (as of February 2010).
Prepared by AsDB staff (as of March 2010).
The figures in this table are the total value of the assistance not the value of assistance to Palau.