St. Lucia: Staff Report for the 2015 Article IV Consultation—Informational Annex
Author:
International Monetary Fund. Western Hemisphere Dept.
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Publication Date:
18 Feb 2016
eISBN:
9781498344968
Language:
English
Keywords:
ISCR; CR; tourism inflow; balance of payments; private sector; fiscal year; economic activity; OECS country; OECS government; ECCU member country; CARTAC Mac programme; financial asset; External sector statistics; Budget planning and preparation; Customs administration core functions; Caribbean
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A moderate economic recovery is taking hold in St. Lucia. Favorable international conditions have contributed to improved demand for tourism, St. Lucia's main economic sector, and the external current account deficit has narrowed significantly. The authorities have made some progress in addressing a weak fiscal position. However, the financial sector continues to be impaired by nonperforming loans, public debt keeps rising, and unemployment remains very high, while external sector competitiveness continues to be weakened by an overvalued exchange rate, economies of scale disadvantages, and structural bottlenecks.

Abstract

A moderate economic recovery is taking hold in St. Lucia. Favorable international conditions have contributed to improved demand for tourism, St. Lucia's main economic sector, and the external current account deficit has narrowed significantly. The authorities have made some progress in addressing a weak fiscal position. However, the financial sector continues to be impaired by nonperforming loans, public debt keeps rising, and unemployment remains very high, while external sector competitiveness continues to be weakened by an overvalued exchange rate, economies of scale disadvantages, and structural bottlenecks.

Fund Relations

(As of December 31, 2015)

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Emergency Assistance may include ENDA, EPCA, and RFI.

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

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Exchange Rate Assessment: The de jure exchange rate arrangement is a currency board. St. Lucia participates in a currency union with seven other members of the ECCU and has no separate legal tender. The Eastern Caribbean dollar is pegged to the U.S. dollar under a currency board arrangement at EC$2.70 per U.S. dollar. St. Lucia has accepted the obligations of Article VIII, Sections 2(a), 3 and 4, and maintains an exchange system that is free of restrictions on the making of payments and transfers for current international transactions.

Safeguards Assessment: Under the Fund’s safeguards assessment policy, the Eastern Caribbean Central Bank (ECCB), of which St. Lucia is a member, is subject to a full safeguards assessment under a four-year cycle. In line with this policy, an update safeguards assessment of the ECCB is underway. The previous assessment concluded in April 2012 found that the ECCB continued to maintain a relatively sound safeguards framework. In addition, the external audit and financial reporting mechanisms complied with international standards and financial statements were published in a timely manner. Independent oversight on external and internal audits and reserves management was exercised by the Audit and Investment Committees, respectively. Recommendations were made to enhance the ECCB’s legal framework.

Article IV consultation: St. Lucia is currently on a 12-month cycle. The last Article IV consultation was concluded on March 1, 2013 by the Executive Board; the relevant document is SM/13/41.

Technical Assistance: St. Lucia has received substantial technical assistance from the Caribbean Region Technical Assistance Center (CARTAC) and the IMF. Technical assistance missions focused on national accounts, tax reforms, revenue administration, expenditure rationalization and the financial sector.

Macroeconomics and Programming Analysis

  • March 2015: To review progress on the GDP Forecasting Framework

  • October 2015: Make Presentation at CARTAC National Accounts Planning Workshop

  • July 2014: To make better use of the high-frequency macro indicators in updating short-term GDP projections

National Accounts

  • March 2014 (CARTAC): Development a plan to assess the quality of the GDP estimates; May 2011 (CARTAC): preparation for quarterly GDP compilation, with St. Lucia being a pilot in the OECS;

  • December 2010 (CARTAC): real sector projections, including the preparation of scenarios that assessed the impact of Hurricane Tomas on the economy;

  • July-August 2009 (CARTAC): national accounts mission aimed at rebasing the GDP estimates to 2006 and exploring the feasibility of producing final expenditure in constant prices.

Real Sector Statistics

  • September 2015: A Real Sector Statistics Mission visited Castries to provide TA to the CSO for St. Lucia on reviewing and providing advice to expand and improve the national accounts, including producing SUT and rebasing the GDP estimates.

External Sector Statistics

  • January 2015 (CARTAC): Training on External Sector Statistics for Survey Respondents

Tax Reforms and Revenue Administration

  • September 2015 (Customs Administration): Provide guidance & training on improving & strengthening enforcement intelligence and risk.

  • November 2014 (Customs Administration): Support Risk Management mission

  • August 2014 (Customs Administration): TA to Montserrat Customs and Excise Department

  • May 2014 (Customs Administration): Organizational Structure Review of the CED

  • September 1-11, 2015: (CARTAC) Improve the Corporate Income Tax regime

  • July 6-17, 2015 (CARTAC) IRD structural re-organization establishment of the LMTU and DPMU)

  • March 16-27 2015, May 11-22, July 27-August 6, 2015: (CARTAC) Property taxation

  • December 9–December 22, 2014: (FAD funded by CARTAC) VAT revenue analysis

  • July, September, October 2014 and April 2015 (CARTAC) IRD structural re-organization

  • April 13-24, 2014 (CARTAC) tax and customs, data matching

  • April 2-15, 2014 (FAD) follow-up on tax and customs administrations after VAT introduction.

  • January 27-31 2014, (CARTAC) IRD strategic planning

  • October 14-November 1, 2013 and February 10-24, 2014, (CARTAC) development of VAT audit capacity

  • October 2013 (CARTAC): Strengthening the Customs Administration—Valuation workshop and training;

  • May 2014 (CARTAC): Strengthening the Customs Administration—Organizational Structure Review;

  • December 2008–January 2010 and May 2011-November 2012 (CARTAC): preparations for VAT implementation, including development of the project plan, VAT rate study, drafting the VAT legislation, delivery of training to tax and customs staff, supporting customs and Inland Revenue Department (IRD) preparations for VAT administration, development and implementation of the advisory visits program for potential registrants, and establishing a VAT section within IRD with the necessary procedures for operation;

  • June 2012 and November 2012 (CARTAC): special sector tax audits;

  • August 2012 (CARTAC): review of customs bonded warehouses;

  • June 2008, September 2008, February 2009, August 2009 and May 2012 (CARTAC): development and implementation of Customs Risk Management Program;

  • March 2010, June 2010, October 2010 and June 2011 (CARTAC): development and implementation of Customs Post Clearance Audit Program;

  • September 2010 and May 2011 (CARTAC): development of an integrity program for Inland Revenue;

  • March 2010, June 2010, October 2010 and June 2011 (CARTAC): development and implementation of Customs post clearance audit program;

  • June 2008, September 2008, February 2009 and August 2009 (CARTAC): development and implementation of customs risk management program;

  • June 2009 and September 2009 (CARTAC): development of Corporate Strategic Business Plan for Inland Revenue and customs;

  • April 2003 (FAD): modernization of the tax system in regional (OECS) context.

Expenditure Rationalization and PFM Reforms

  • October 2015 (PFM): PFM Accountant General’s Department review and Pre PEFA assessment

  • September 2015 (PFM): Program Based Budgeting

  • August 2015 (PFM): Develop a comprehensive budget manual

  • December 2014 (PFM): Budget Preparation Mission

  • October 2014 (PFM): Budget Preparation Mission

  • February 2014 (PFM): Assist with finalizing annual budget estimates document

  • January 2014 (PFM): Final Budget Preparation Reform Mission

  • May 2014 (MCM): Strengthening public debt management in ECCU countries. Assessment of Technical Assistance needs provided to the ECCB.

  • July 2014 (CARTAC): Improvements to real sector monitoring frameworks to provide for rapid updating of real sector variables using high frequency indicators;

  • January 2013, June 2013, November 2013, January 2014 (CARTAC): Budget Preparation Reform;

  • February 2013 (CARTAC): Chart of Accounts reform;

  • December 2013 (CARTAC): Diagnostic of PFM legislation;

  • October 2013 (CARTAC): Improving accountability and performance of Parastatals;

  • January 2012 (CARTAC MAC Programme): real and fiscal medium-term projections under baseline and active scenarios;

  • May and November 2011 (CARTAC): budget preparation mission;

  • June 2010 (CARTAC): preparation of a PFM reform action plan, PFM workshop;

  • December 2010 (CARTAC): fiscal projections under baseline and active scenarios;

  • August 2010 (FAD): regional project on public expenditure issues, including expenditure trends, policies, and expenditure rationalization options;

  • November 2009 (CARTAC): budget preparation and fiscal projections;

  • December 2008 (MCM): improving debt management capacity of the government.

Financial Sector

  • December 2015 (MCM): Implementation of Risk Based Supervision

  • August 2015 (MCM): Dynamic Modelling Project

  • November 2014 (MCM): Risk Based Supervision Insurance

  • September 2014 (MCM): Risk Based Supervision Framework

  • March, May and June 2014 (MCM and LEG): Strategy to resolve indigenous banks. Assistance to the ECCB.

  • May 2014 and ongoing (MCM): Collateral valuation. Assistance to the ECCB.

  • May 2014 and ongoing (MCM): Credit risk management assessment. Assistance to the ECCB.

  • May 2014 (CARTAC): Technical assistance requests from the ECCB to implement Basel II in the ECCU. The ECCB as a part of the Caribbean Group of Banking Supervisors (CGBS), has developed the operational risk guidelines for Basel II and has established a steering committee, made up of regulators from some of the SRUs to look at areas of national discretion for the implementation of Basel II.

  • November 2013 and May 2014 (MCM and LEG): Assistance to the ECCB on legislative changes to the ECCB Agreement Act, Banking Act and subsidiary legislation.

  • May 2014 (CARTAC): Assistance to the ECCB with the development and implementation of a strategic plan to achieve compliance with the Basel Core Principles for Effective Banking Supervision.

  • March 2013 (CARTAC): Review a draft Corporate Governance Guidance for ECCB which covers domestic banking operations in St. Lucia

  • December 2013 (CARTAC): Review an Internal Audit Guidance for Banks in the ECCU.

  • February 2011 (IMF/WB/CDB): A Joint Task Force on the ECCU Financial System (FSTF) performed a comprehensive diagnostics on the indigenous banks and delivered recommendations to address critical issues.

  • December 2008 (CARTAC): development of policy proposals for the Single Regulatory Unit (SRU) Act to be drafted by the authorities in St. Lucia;

  • May 2008 (CARTAC): assessment of development needs of the Single Regulatory Unit;

  • October 2007 (CARTAC): participation of St Lucia’s SRU supervisory staff in Off-shore Mutual Funds Supervision Workshop held in St. Kitts and Nevis and St. Vincent;

  • September 2007 (CARTAC): participation of St. Lucia’s SRU supervisory staff in Trust Supervision Workshop held in Turks and Caicos.

Technical assistance on the banking sector is provided to the Eastern Caribbean Central Bank (ECCB) as the supervisor and not to individual countries within the Eastern Caribbean Currency Union (ECCU). Currently, MCM has placed three long-term experts at the ECCB, financed by Canada: (i) a bank resolution advisor; (ii) a bank supervision advisor; and (iii) the manager of the regional asset management company.

CARTAC is working with the ECCB to develop a framework for the implementation of the recommendations of the sixth edition of the balance of payments manual for ECCU members, inclusive of St. Lucia. Additionally, a technical Assistance request from St. Lucia to provide assistance with bank supervision, mutual funds and review of insurance treaties is currently under consideration.

FSAP: A joint IMF/World Bank team performed an assessment of the financial sector of the member states of the ECCU, in two missions–September 1–19 and October 20–31, 2003. The missions assisted the authorities in assessing the development needs and opportunities for the financial sector, identifying potential vulnerabilities of financial institutions and markets to macroeconomic shocks, as well as assessing risks to macroeconomic stability from weaknesses in the financial sector. The Financial System Stability Assessment (FSSA) was discussed by the Executive Board on May 5, 2004, and subsequently published on the IMF’s external website, including the Report on the Observance of Standards and Codes (ROSC) on Banking Supervision.

AML/CFT: A detailed assessment of the AML/CFT regimes of St. Lucia was conducted by the Caribbean Financial Action Task Force (CFATF) in November 2008, and the eighth follow-up report was published in November 2013.

Relations with the World Bank Group

(As of October, 2015)

World Bank Group OECS Regional Partnership Strategy: On November 13, 2014, the Board of the Executive Directors of the World Bank Group has endorsed the new OECS Regional Partnership Strategy ((RPS) which will cover the period FY15-19. The high-level objective of the new RPS is to contribute to lay the foundations for sustainable inclusive growth, in line with the OECS governments’ priorities. In order to achieve this goal, the program is planned to be organized around three main areas of engagement. Under the first one, the WBG is planning to support “competitiveness”. Growth and job creation in the private sector will be supported both horizontally – by improving the business environment– and vertically – by focusing on specific sectors with a high potential to generate inclusive sustainable growth (particularly tourism, agribusiness and their respective linkages). The second area of engagement is “public sector modernization”, with particular focus on public financial management (PFM) and institutional capacity, including for statistics and public private partnerships (PPPs), to better leverage private investment in infrastructure and service provision. The third area is “resilience”, with the objective to address both social vulnerabilities (in education, health and social protection), and exposure to natural disasters. Constrained in general by the small size of investments in the OECS, the IFC and MIGA will contribute to the RPS objectives through selective investment support, depending on opportunities. The IFC will focus on crisis response; job creation and inclusive growth; innovation, competitiveness, and integration; and climate change. MIGA faces limited opportunities for engagement because of the small market size of the OECS countries.

The RPS is grounded in a holistic approach to tackling the long-standing issues of low growth and debt sustainability in the Caribbean: the Comprehensive Debt Framework, developed in 2010 by the Bank at the request of the Heads of Government of CARICOM countries. Structured around four pillars, the Comprehensive Debt Framework (CDF) is designed to address the interdependent structural causes of high debt and low growth in small island states by (i) promoting private-sector led growth, (ii) strengthening fiscal management, (iii) building resilience to natural disasters, and (iv) improving debt management. Governments of the OECS recognize the multifaceted nature of the challenges they face and understand that improvements in competitiveness, reduction in sovereign debt levels, fiscal adjustments to ensure macro sustainability, and enhanced sustainability and resilience to shocks are interrelated aspects that are critical to resume and sustain inclusive growth. As a result, they have used the CDF to frame their own reform strategies and activities.

The indicative IBRD lending program for the six OECS countries is expected to be around US$120 million, or up to a maximum of US$20 million for each OECS country – including for St. Lucia - for the period of the RPS (FY15-19), subject to country and program performance, IBRD’s lending capacity, and exposure management parameters. In addition to the IBRD envelope, four OECS countries (Dominica, Grenada, St. Lucia, and St. Vincent and the Grenadines) can also count on an IDA national allocation. The IDA17 (FY15-17) allocation for the OECS is equal to SDR61.3 million, an increase of around 22 percent over the IDA16 OECS allocation (SDR50.3 million). With regard to St. Lucia, its IDA-17 allocation is equal to SDR 17.4 million (roughly USD 24.3mln at today’s exchange rate).

A. Projects

1. The WB portfolio in St. Lucia includes three projects: (i) Regional Disaster Vulnerability Reduction Project-RDVRP (IDA $15 Million; PPCR $41 Million); (ii) Caribbean Regional Communications Infrastructure Project-CARCIP (IDA$6 Million); (iii) Eastern Caribbean Energy Regulatory Authority-ECERA (IDA$2.8 Million). St. Lucia also benefit of US$ 2 million Bank Executed Trust Fund to support geothermal development.

2. Overall, the portfolio quality in St. Lucia is mixed, with CARCIP and ECERA experiencing some problems and therefore proceeding through a restructuring process, while the RDVRP is proceeding in a satisfactory manner.

The Caribbean Regional Communications Infrastructure Program (CARCIP) is a broad umbrella program to include all interested CARIFORUM countries.1 It offers a menu of choices with specific components to be tailored to each country's priorities. The menu of options are: (a) ICT Connectivity—to increase access and affordability of broadband communications networks within region and countries; (b) E-Government—to contribute to improved Government efficiency and transparency through the delivery of e-services, including e-government and e-society applications; and (c) IT Industry—to contribute to the development of the regional and national IT industry. Phase 1 of the Program was approved by the Board on May 22, 2012 with Grenada (US$10 million IDA), St. Lucia (US$6 million IDA) and St. Vincent and the Grenadines (US$6 million IDA) as participating countries. Additional countries can join since this is a comprehensive program that seeks to increase access to regional broadband networks and advance the development of an ICT-enabled services industry in the Caribbean Region. The project is currently going through restructuring.

The Eastern Caribbean Energy Regulatory Authority (ECERA) Project (Grenada and St. Lucia) was approved in June 2011. The objective of this project is to establish and operationalize a regional approach to the development of the electricity sector in the OECS, by supporting the establishment of a regional regulator. Currently, Grenada and Saint Lucia have used IDA credit (with US$2.8 million each, for a total of US$5.6 million) for the design and operationalization of ECERA. The design phase is coordinated by the OECS Secretariat. Component A of this project will facilitate the creation and launching of the ECERA, including carrying out the legal and consultative process leading to the formulation and ratification of the ECERA treaty, and defining the options for the ECERA self-financing mechanism, reviewing tariffs and examining incentive mechanisms to promote renewable energy. Component B will facilitate the initial three years of ECERA’s operations, including the day-to-day operations and execution of core regulatory tasks including: (i) tariff and investment plan reviews; and (ii) defining a regional licensing framework for electricity market participants with a particular focus on facilitating the integration of electricity production from renewable sources into the supply mix. The project is currently going through restructuring.

A Disaster Vulnerability Reduction Project has been approved by the Board in June 2014. The package is in the amount of US$68 million equivalent consisting of (a) an IDA Credit in the amount of 15.57 million SDR (USD$ 24 million equivalent); (b) an IDA Credit from the Crisis Response Window in the amount of 11.03 million SDR (US$17.0 million equivalent); (c) a Loan from the Climate Investment Funds: Pilot Program for Climate Resilience (PPCR) under the Strategic Climate Fund (SCF) for US$15.0 million; and (d) a Grant from the Climate Investment Funds: PPCR-SCF for US$12.0 million. The objective of the Project is to reduce vulnerability to natural hazards and climate change impacts in Saint Lucia. The Project consists of the following five components: Risk Reduction and Adaptation Measures; Technical Assistance for Improved Assessment and Application of Disaster and Climate Risk Information in Decision-making; Climate Adaptation Financing Facility; Contingent Emergency Response; and Project Management and Implementation Support.

In spring 2015 the WB has conducted a Country Portfolio Performance Review in the OECS countries. Some of the main findings regarding the portfolio review in St. Lucia are the following: (i) country context needs to be better understood and taken into account during project preparation; (ii) institutional strengthening of national agencies in charge of monitoring projects, beyond the Project Implementation Unit (PIU), is needed to make sure that projects contribute to build national capacity; (iii) training initiatives are critical, particularly on fiduciary training; (iv) a more comprehensive and flexible approach to facilitate procurement in small states is needed; (v) Government processes are sometimes complex or slow and cause delays; (vi) Collaboration needs to improve both internally, among line ministries, and at the Bank, to ensure consistency of messages and clear communication with the client; and (vii) lack of technical staff is an issue and cause delays in completing activities by the deadline.

B. Economic and Sector Work

The Caribbean Growth Forum (CGF) -The Caribbean Growth Forum (CGF) is a multi-stakeholder platform designed to identify, prioritize and implement a set of activities to improve the growth enabling environment in the Caribbean, while promoting participatory public policy making. It has so far engaged more than 2,500 representatives from business associations, civil society organizations, Government, private sector, media, indigenous groups, and international development agencies on themes such as Logistics and Connectivity; Investment Climate; and, Skills and Productivity.

Low growth, high unemployment, especially for youth and women, high debt ratios (eight of the top twelve most indebted countries in the world are in Caribbean), high incidence of crime, and, growing vulnerability to external shocks characterize the region. In the wake of the global financial crisis, the high debt/low growth challenge has become even more acute.

A number of Caribbean countries reached out to international donors to find an innovative approach to the growth challenge in the region. A suggestion was made to launch a genuinely participatory growth initiative. Following consultations and some preparatory work, the program started in mid-2012 with a regional launch event in Jamaica. The process is supported and facilitated by the World Bank, the Inter-American Development Bank, the Caribbean Development Bank, Compete Caribbean and the European Union.

Key Outcomes

Positive outcomes are tangible: twelve countries formally joined the process by establishing their national CGF chapter and have completed the first phase of national dialogue. This effort has led to the prioritization of concrete and actionable activities and draft action plans are now available, with details on each activity’ implementation plan (e.g., accountabilities, milestones, timeline, funding). The results of each country’s dialogue were presented at three regional forum in The Bahamas in June 2013, in St. Kitts and Nevis in 2014, and in St. Lucia in June 2015. This allowed national stakeholders from government, private sector and civil society to compare notes on each other’s’ priorities and exchange ideas on solutions to each identified challenges with technical specialists and peers. Each government involved in the CGF also committed to follow-up on implementation of the reform agenda, to report back periodically on progress (every 4-5 months) and to enable independent monitoring of the reforms by private sector and civil society representatives.

Comprehensive Debt Framework - At the request of the Heads of Government of CARICOM, the Bank put together a Comprehensive Debt Framework that proposes a strategy for addressing the high debt challenge faced in the OECS in a sustainable way. This Framework proposes a holistic approach around four interdependent pillars (Supporting private sector led growth, including private sector development and financial sector stability; Enhancing fiscal sustainability; Improving climate change resilience and Disaster Risk Management; and Debt resolution). The Framework has been rolled out in all the OECS, including Dominica. The Governments expressed interest in principle, in continue to work with the World Bank and other development partners to develop policy measures that could help stimulate growth and reduce debt in the country.

In terms of analytical products, the Bank has completed a series of studies related to public expenditure, fiscal and debt sustainability, growth and competitiveness, the financial sector, public sector management and social protection. The ongoing dissemination of these reports represents a key instrument for policy dialogue with the OECS governments, including St. Lucia.

The Bank’s program in St. Lucia is further supported by a comprehensive series of completed, ongoing and planned analytical and advisory activities, including the following: “Towards a New Agenda for Growth” – OECS growth and competitiveness study (2005); an OECS Skills Enhancement Policy Note (2006); a Caribbean Air Transport Report (2006); a regional study on Crime, Violence, and Development: Trends, Costs, and Policy Options in the Caribbean (2007); an OECS Private Sector Financing Study (2008); the OECS Tourism Backward Linkages Study (2008); the report titled “Caribbean – Accelerating Trade Integration: Policy Options for Sustained Growth, Job Creation and Poverty Reduction” (2009); a study on the Nurse Labor & Education Markets in the English-Speaking CARICOM: Issues and Options for Reform (2009); and Caribbean Regional Electricity Supply Options: Toward Greater Security, Renewable and Resilience (2011). A number of recent analytical works have also been disseminated in the context pf the CGF process. A number of knowledge products are expected to be disseminated this year, including “Driving tourism in the Eastern Caribbean: The case for a regional Ferry”; “Trade matters: new opportunities for the Caribbean”; “Linking farmers and agro-processors to the tourism industry in the OECS”; and the “OECS Growth report”.

Relations with the Caribbean Development Bank (CDB)

1. The Caribbean Development Bank (CDB) has been an important development partner in St. Lucia (STL) and is currently the island’s largest multilateral donor. Interventions have been aimed at facilitating sustainable development by supporting investments in social and economic infrastructure, as well as creating a more enabling policy environment. Specifically, CDB has been involved in areas such as: (i)development of physical infrastructure; (ii) public financial management; (iii) human resource development; (iv)support to the productive sectors; and (v) community-based poverty reduction.

2. In 2012, the Bank approved a country assistance strategy with an indicative resource envelope of $88.5 mn to guide operations in STL over the period 2013-16. Given STL’s vulnerability to economic shocks and natural hazards, the main strategic objective of the programme was to assist in building social and economic resilience by: (i) improving efficiency of social and economic infrastructure; (ii) increasing the contribution of the agricultural sector; (iii) enhancing youth outcomes; (iv) enhancing the viability of small and medium-sized enterprises (SMEs); and (v) improving management capacity in order to reduce vulnerability to natural hazards and economic shocks. Importantly, recognising the impact of gender and environmental/climate change factors on a country’s ability to achieve sustainable development outcomes, these issues are treated as cross-cutting themes in the assistance strategy.

3. STL has utilised the Bank’s resources extensively over the years and at the end of 2014, was the third largest recipient of CDB assistance. Cumulative loans, contingent loans and equity and grants totalled $409.2 mn between 1970 and 2014. Of this amount, just over half was approved from Ordinary Capital Resources (OCR) with the remainder being sourced from the “soft” window.

4. One loan amounting to $14.8mn was approved in 2015 for the rehabilitation of the John Compton Dam. Fundamentally, the project seeks to improve the reliability and sustainability of the water supply to the north of island by: (a) increasing the storage capacity of JCD through sediment removal; (b) establishing operational procedures for sediment removal and management; (c) rehabilitating JCD structure and monitoring equipment; and (d) reducing the potential for landslides within the Roseau watershed. The project also provides inter alia institutional strengthening for the utility provider by building capacity in financial management, support for a climate action plan and the mainstreaming of gender concerns in provider’s polices and operations. Other interventions during the year were direct poverty reduction support and capacity enhancement for small and medium sized enterprises.

5. Notwithstanding the Bank’s significant involvement in St. Lucia, net resource flows have been negative over the 2010 to 2014 period and preliminary indications are that 2015 will follow the trend (see Table 1 below). This has largely been due to implementation capacity issues and the availability of alternative funding sources. The most significant disbursements during the period 2013 to 2015 were for lines of credit to support private sector development, reconstruction following the passage of Hurricane Tomas, education sector enhancement, and a policy based loan in support of macroeconomic reforms.

Table 1.

Portfolio Flows

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Statistical Appendix

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Appendix I: Table of Common Indicators Required for Surveillance

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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).

1

CARIFORUM comprises the 15 Caribbean countries of CARICOM (i.e., Antigua and Barbuda, Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago), and the Dominican Republic.

2

As at Dec 10

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Cover IMF Staff Country Reports
St. Lucia: 2015 Article IV Consultation-Press Release; and Staff Report
Author:
International Monetary Fund. Western Hemisphere Dept.
Volume/Issue:
Volume 2016: Issue 052
Publisher:
International Monetary Fund
ISBN:
9781498344968
ISSN:
1934-7685
Pages:
79
DOI:
https://doi.org/10.5089/9781498344968.002