This DSA was prepared jointly with the World Bank, in accordance with the Debt Sustainability Framework for low-income countries approved by the Executive Boards of the IMF and the IDA. Samoa is rated as a strong performer for its policies and institutions for the purposes of the IMF-World Bank low-income country DSA framework. The DSA uses a 5 percent discount rate.
The discount rate was set at 3 percent in the 2013 DSA assessment.
GDP data have been rebased to 2009 prices (previously 2002), and coverage has been increased, with the nominal GDP for 2012/13 increasing from SAT1.6 billion to SAT1.8 billion reflecting a wider sectoral coverage through new censuses and surveys.
Under the historical scenario, debt ratios will decline faster relative to the baseline, reflecting a more favorable current account balance as well as capital grants. On the other hand, the historical scenario in the public DSA will lead to a protracted breach due to a larger primary deficit.
For instance, the central bank has provided a credit line with government guarantees to the Development Bank of Samoa (DBS) of SAT 65 million and Samoa Housing Corporation (SHC) of 14 million. The rest of explicit government guarantees consists of loan to DBS (SAT 20 million) and Samoa Shipping Corporation (SAT 1.3 million) by the SNPF, share capital advance to UTOS (SAT 7.9 million) and Small Business Loan Guarantee Scheme (SAT 9.6 million).
The SOEs debt stock is assumed to grow in line with nominal GDP.