Abstract
Maldives living standards have risen to middle income levels over the past two decades driven by tourism development. The country's geography-with a widely dispersed population across small far flung islands-creates fiscal challenges and the economy has faced persistent fiscal deficits over the past decade. The economy is highly exposed to climate change which further adds to fiscal costs.
Fund Relations
(As of February 29, 2016)
Membership Status: Joined: January 13, 1978; Article XIV
General Resources Account:
| SDR | Million | Percent Quota | |
| Quota | 21.20 | 100.00 | |
| Fund holdings of currency (exchange rate) | 16.40 | 77.34 | |
| Reserve Tranche Position | 4.80 | 22.66 |
| SDR | Million | Percent Quota | |
| Quota | 21.20 | 100.00 | |
| Fund holdings of currency (exchange rate) | 16.40 | 77.34 | |
| Reserve Tranche Position | 4.80 | 22.66 |
SDR Department:
| SDR | Million | Percent Allocation | |
| Net cumulative allocation | 7.69 | 100.00 | |
| Holdings | 3.66 | 47.54 |
| SDR | Million | Percent Allocation | |
| Net cumulative allocation | 7.69 | 100.00 | |
| Holdings | 3.66 | 47.54 |
Outstanding Purchases and Loans:
| SDR | Million | Percent Quota | |
| ESF Arrangements | 1.74 | 8.22 |
| SDR | Million | Percent Quota | |
| ESF Arrangements | 1.74 | 8.22 |
Latest Financial Arrangements:
| Type | Arrangement Date | Expiration Date | Amount Approved | Amount Drawn |
| (SDR million) | (SDR Million) | |||
| Stand-By | 12/04/2009 | 12/3/2012 | 49.20 | 8.20 |
| ESF | 12/04/2009 | 12/3/2011 | 8.20 | 2.05 |
| Type | Arrangement Date | Expiration Date | Amount Approved | Amount Drawn |
| (SDR million) | (SDR Million) | |||
| Stand-By | 12/04/2009 | 12/3/2012 | 49.20 | 8.20 |
| ESF | 12/04/2009 | 12/3/2011 | 8.20 | 2.05 |
Projected Payments to Fund1
(SDR million; based on existing use of resources and present holdings of SDRs):
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
| Forthcoming | ||||||
| 2016 | 2017 | 2018 | 2019 | 2020 | ||
| Principal | 0.41 | 0.41 | 0.41 | 0.41 | 0.1 | |
| Charges/Interest | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | |
| Total | 0.41 | 0.42 | 0.41 | 0.41 | 0.11 | |
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
| Forthcoming | ||||||
| 2016 | 2017 | 2018 | 2019 | 2020 | ||
| Principal | 0.41 | 0.41 | 0.41 | 0.41 | 0.1 | |
| Charges/Interest | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | |
| Total | 0.41 | 0.42 | 0.41 | 0.41 | 0.11 | |
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
Exchange Arrangements
Since April 2011, the rufiyaa has floated in a band of 20 percent on either side of Rf 12.85 per dollar. In practice, however, the rufiyaa has been virtually fixed at the band’s weaker end of Rf 15.42 per dollar. The de jure exchange rate arrangement is a pegged exchange rate within horizontal bands and the de facto exchange rate arrangement is classified as a stabilized exchange rate arrangement. Maldives continues to avail itself of the transitional provisions of Article XIV but no longer maintains any measures under this provision, and has not yet accepted the obligations of Article VIII, Sections 2, 3, and 4. It maintains an exchange restriction subject to IMF approval under Article VIII, Section 2(a) of the IMF’s Articles of Agreement arising from a shortage of foreign exchange at the official rate which leads to the MMA rationing its supply of foreign exchange to commercial banks. This results in a channeling of foreign exchange transactions for current international transactions to the parallel market where transactions take place at an exchange rate that deviates by more than 2 percent from the prevailing market exchange rate. The greater than 2 percent spread gives rise to multiple currency practice subject to IMF approval under Article VIII, Section 3 and also to an exchange restriction, given the additional cost involved for obtaining foreign exchange. The extent of rationing has been eased over the past two years by increasing the amounts provided to commercial banks and adjusting amounts in line with seasonal patterns. The official exchange rate used by the MMA for government transactions is calculated based on the mid-point of the weighted average of the buying and selling rates of foreign exchange transactions conducted by commercial banks one day earlier. The lack of a mechanism to prevent the spread between this official exchange rate used by the MMA for government transactions and the prevailing market exchange rate from deviating by more than 2 percent gives rise to a multiple currency practice subject to IMF approval under Article VIII, Section 3.
Last Article IV Consultation
The 2014 Article IV consultation was concluded by the Executive Board on February 11 2015.
Technical Assistance
FAD: FAD main areas of engagement are in Public Expenditure and Financial Accountability (PEFA) assessment and providing TA for cash management. A joint IMF/WB-led PEFA assessment was carried out in February 2014 to gauge progress made since the last PFM Action Plan for 2009-2011, identify remaining weaknesses and future direction. As a follow-up to the PEFA, the FAD team together with the World Bank developed a Public Financial Management Reform Plan (PFMRP) for the GoM in June 2014. This was a broad PFM reform and consolidation plan aimed at improving the overall policy-making, coordination, implementation and monitoring framework in PFM. Altogether 3 missions on cash management have been carried out since FY14 by the Cambodia-based Regional PFM Advisor. These missions focused on developing a cash management manual for the GoM and related activities. To consolidate this work and to broaden it to expenditure and commitment controls, the August 2015 mission reviewed progress. The mission developed an updated action plan to make the cash management unit functional, start using the cash flow forecasting model and the implementation of a commitment control system. On request from the authorities, in September 2014 FAD carried out a review of Chart of Accounts (CoA) at the ministry of finance and proposed structure for a revised CoA and an action plan to achieve same. The mission was coordinated with an overlapping STA mission to review the mapping of the government COA to GFSM 2014.
LEG: In October 2003 provided technical 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). A follow-up mission in February 2011 focused on payments law. LEG conducted an AML/CFT assessment in October 2010 and conducted a desk-based review of the draft AML/CFT law in May 2012. In 2014 and 2015 LEG provided advice on the Special Economic Zones Law, offshore banking legislation and deposit insurance.
MCM: 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. Two missions visited Malé to advise on monetary operations, liquidity management, and the development of a crisis management framework. In December 2010, MCM conducted a TA mission on crisis preparedness and management, bank restructuring, and monetary operations. In May and September 2011, MCM consecutively conducted missions on the development of debt markets, and on on-site banking supervision. In February 2012, MCM undertook a TA mission on assessing the foreign exchange operations framework. In 2014, MCM conducted a series of TA missions on banking supervision in early February and late May. Also, together with APD another joint mission on developing foreign exchange market was carried out. MCM also provided advice on deposit insurance schemes. In 2015 MCM fielded two missions to Malé in the areas of banking supervision (March) and foreign exchange reserve management (September). A mission is confirmed for late March 2016 to advise on foreign exchange and monetary policy operations
STA: In May 2007, STA conducted a mission on money and banking statistics. In February and April 2011, STA offered TA on multiple topics covering improvements in balance of payments statistics, government financial statistics (GFS), monetary and financial statistics (MFS) and national accounts. In June and September 2011, STA conducted TA missions on improving price statistics and on the General Data Dissemination System (GDDS). In February, May, and October 2012 STA continued providing TA on improving price statistics. Similarly, in April 2012, a TA mission on improving national accounts covered constructing GDP from the expenditure side and compiling quarterly national accounts. Further advice on improving GDP and developing quarterly GDP was provided in November 2012, January and July, 2014, and April 2015, the latter jointly with APD. Subsequently, Maldives attended a workshop for the ICP-SNA project covering both national accounts and price statistics. Between March 2013 and January 2016, STA field eight TA missions on balance of payments statistics, in the context of a project funded by the Government of Japan. Another TA mission on balance of payments statistics is scheduled for March 2015.
Safeguards Assessment
In line with the Fund’s safeguards assessments policy, an assessment of the Maldives Monetary Authority was concluded in March 2010. In addressing recommendations, the MMA appointed an external auditor and strengthened controls over foreign payments through the automation of the authorization process. A Chief Internal Auditor has also been appointed, while capacity in the internal audit function continues to be improved. In addition, to strengthen the legal framework, amendments to the MMA Act were drafted in 2011 in consultation with the Fund. While the MMA Act was amended in 2015, some safeguards recommendations on the establishment of an Audit Committee, limits on credit to government, and safeguards for personal autonomy of Board members have not been incorporated.
IMF–World Bank Joint Management Action Plan
(As of February 2016)
The World Bank Group Systematic Country Diagnostic (2015) for Maldives identified three specific priority areas to promote growth, reduce poverty, and increase shared prosperity in a sustainable manner. The priorities are as follows: enhancing opportunities in tourism and fisheries for the local population; enabling opportunities for the creation of new sources of inclusive growth; and enhancing the efficiency and efficacy of public resource management and reduce macro-fiscal risk. The Country Partnership Framework (CPF) FY16-19, which relies heavily on the SCD analysis, and is expected to be presented to the Board in April 2016, proposes a selective program of engagement that aims to enable more inclusive and sustainable growth through better use of the country’s assets including human capital, natural assets and financial resources. Under the proposed CPF program, support is oriented towards enhancing the economic participation of Maldivians to improve the inclusiveness of growth and deepening successful interventions in the following sectors: education, public finance management, environment and natural resource management and renewable energy. Youth, gender, governance and climate resilience are cross-cutting themes that are recognized as essential for social inclusion and sustainable management of resources.
The World Bank is supporting a Public Financial Management Systems strengthening project for FY 15-20, with the objective to enhance budget credibility, transparency, and financial reporting of central government finances. It is focusing on strengthening the PFM environment (including enhancing the medium-term fiscal framework and strengthening debt and cash management) and strengthening budget execution. A separate Bank funded project supports the office of the Auditor General in updating the audit law, conducting performance audit pilots and training the staff on auditing the consolidated financial statements of the country using international audit standards.
The teams have been holding, and will continue to hold, joint missions and regular briefing meetings on macroeconomic developments. Public financial management is a key area of collaboration for these operations.
The Bank is taking the lead on a number of initiatives aimed at improving targeting of universal subsidies and reforming social protection:
Health: Bank technical support currently focuses on helping achieving operational savings for Aasandha, though substantial capacity building of the implementing agency, NSPA, would be needed to plan, implement and monitor the much needed reforms.
Poverty: the Bank – through the Statistical Capacity Building Project and Poverty Technical Assistance – has been assisting in the design of a new Household Income and Expenditure survey, which is planned to start field operations in March 2016. Upon the completion of the survey which is expected by November 2016, the poverty team will assist in the estimation of a new, official national poverty line for Maldives.
Proxy Means Testing: Bank support has helped NSPA develop a targeting mechanism based on both means and proxy means test (PMT) methods to target the electricity subsidy and other social safety net programs; the PMT formula will be updated once new HIES data is available
The Appendix details the macro-critical activities that the Bank and IMF will work on over the coming year.
Appendix I. Maldives IMF-World Bank Joint Management Action Plan
| Title | Products/Activity | Expected Dates | |
|---|---|---|---|
| Bank Work Program in the next 12 months | A. | Strategy and Analytical Work Poverty and Shared Prosperity in Maldives Youth & Gender Assessment in the Maldives Governance Support | Delivery date FY 16 FY 16 |
| B. | Lending Environmental Management Project Statistical Capacity Building Enhancing Education Development Project Public Financial Management Systems Strengthening Project Accelerating Sustainable Private Investments in Renewable Energy (ASPIRE) Project Climate Change Trust Fund II Capacity Development Support for Auditor General’s Office Trust Fund (IDF) Sustainable Fisheries Resources Development Project Entrepreneurship and jobs in Maldives | FY 16 Approval date June 2008 Nov 2012 April 2013 June 2014 June 2014 March 2015 October 2012 | |
| C. | Technical Assistance Mobile Money and Financial Sector Support/ Enabling a nonbank Mobile Money Solution Maldives Medium Term Debt Strategy TA to Universal Health Insurance Technical Assistance on Renewable Energy Resource Mapping and Geospatial Planning Maldives #C001 Enabling a Non-Bank Mobile Money Solution. | Sept 2016 February 2017 Delivery date FY 16 FY 16 FY 17 FY 18 FY 18 | |
| Joint products | Agreement on joint products Joint Bank-Fund Debt Sustainability Analysis | April 2016 | |
| Title | Products/Activity | Expected Dates | |
|---|---|---|---|
| Bank Work Program in the next 12 months | A. | Strategy and Analytical Work Poverty and Shared Prosperity in Maldives Youth & Gender Assessment in the Maldives Governance Support | Delivery date FY 16 FY 16 |
| B. | Lending Environmental Management Project Statistical Capacity Building Enhancing Education Development Project Public Financial Management Systems Strengthening Project Accelerating Sustainable Private Investments in Renewable Energy (ASPIRE) Project Climate Change Trust Fund II Capacity Development Support for Auditor General’s Office Trust Fund (IDF) Sustainable Fisheries Resources Development Project Entrepreneurship and jobs in Maldives | FY 16 Approval date June 2008 Nov 2012 April 2013 June 2014 June 2014 March 2015 October 2012 | |
| C. | Technical Assistance Mobile Money and Financial Sector Support/ Enabling a nonbank Mobile Money Solution Maldives Medium Term Debt Strategy TA to Universal Health Insurance Technical Assistance on Renewable Energy Resource Mapping and Geospatial Planning Maldives #C001 Enabling a Non-Bank Mobile Money Solution. | Sept 2016 February 2017 Delivery date FY 16 FY 16 FY 17 FY 18 FY 18 | |
| Joint products | Agreement on joint products Joint Bank-Fund Debt Sustainability Analysis | April 2016 | |
Relations with the Asian Development Bank
(As of August, 2015)
The ADB country operations business plan (COBP), 2015–2017 was approved in February 2015, and was based on the interim CPS, 2014–2015. Appendix 1 provides an updated results framework under the new business plan. To anchor the COBP—particularly the program in its first year, an abridged interim CPS –consistent with CPS 2014-15 was prepared for 2016. A full CPS spanning 2016–2020, is to be prepared in 2016. This will inform successive COBP’s.
The Maldives is eligible for resources from the Asian Development Fund. Indicative resources available during 2016-2018 amount to $25.36 million. The final country allocations for 2017 and 2018 will be subject to available Asian Development Fund grants and concessional ordinary capital resources and the outcome of the country performance assessments. The Maldives was eligible for a 100 percent grant share of country allocations in 2015. The proportion of grants for the country allocations in 2016–2018 will be determined by future annual debt distress classifications. As per the Midterm Review of Strategy 2020, ADB will make efforts, wherever possible, to secure co-financing resources for projects to be developed during the COBP period.
The indicative assistance pipeline (both for lending and non-lending products) for 2016–2018 and the ongoing non-lending program is given below:
Indicative Assistance Pipeline – Lending Products 2016-2018
In the COBP. 2015-2017, the L. Gan-Fonadhoo Major Cross-Roads Project was standby for 2017 (the project preparatory TA will be in 2015). The project is now moved to 2018
The original title of this project was the L. Gan-Fonadhoo Major Cross-Roads Project.
Indicative Assistance Pipeline – Lending Products 2016-2018
| Strategic | Cost ($ million) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Agendas | ADB | ||||||||||||
| Poverty | and Drivers | Year of PTA/ | ADF | Co- | |||||||||
| Project/Program Name | Sector | Targeting | of Change | Division | PDA | Total | OCR | Loans | Grants | Total | Gov’t | finance | |
| 2016 Firm | |||||||||||||
| Kulhudhuffushi Harbor | TRA | Tl-G | EG, ESG, | SATC | 2014 | TBD | 0.0 | 0.0 | 9.69 | 9.69 | TBD | TBD | |
| Expansion Project | PSD, RCI | ||||||||||||
| 2017 | |||||||||||||
| Nonea | |||||||||||||
| 2018 | |||||||||||||
| L Gan-Fonadhoo | TRA | TI-G | IEG | SAER | 2015 | TBD | 0.0 | 0.0 | 15.67 | 15.67 | TBD | TBD | |
| Community Connectivity Projectb | |||||||||||||
| Total | 0.0 | 0.0 | 25.36 | 25.36 | |||||||||
In the COBP. 2015-2017, the L. Gan-Fonadhoo Major Cross-Roads Project was standby for 2017 (the project preparatory TA will be in 2015). The project is now moved to 2018
The original title of this project was the L. Gan-Fonadhoo Major Cross-Roads Project.
Indicative Assistance Pipeline – Lending Products 2016-2018
| Strategic | Cost ($ million) | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Agendas | ADB | ||||||||||||
| Poverty | and Drivers | Year of PTA/ | ADF | Co- | |||||||||
| Project/Program Name | Sector | Targeting | of Change | Division | PDA | Total | OCR | Loans | Grants | Total | Gov’t | finance | |
| 2016 Firm | |||||||||||||
| Kulhudhuffushi Harbor | TRA | Tl-G | EG, ESG, | SATC | 2014 | TBD | 0.0 | 0.0 | 9.69 | 9.69 | TBD | TBD | |
| Expansion Project | PSD, RCI | ||||||||||||
| 2017 | |||||||||||||
| Nonea | |||||||||||||
| 2018 | |||||||||||||
| L Gan-Fonadhoo | TRA | TI-G | IEG | SAER | 2015 | TBD | 0.0 | 0.0 | 15.67 | 15.67 | TBD | TBD | |
| Community Connectivity Projectb | |||||||||||||
| Total | 0.0 | 0.0 | 25.36 | 25.36 | |||||||||
In the COBP. 2015-2017, the L. Gan-Fonadhoo Major Cross-Roads Project was standby for 2017 (the project preparatory TA will be in 2015). The project is now moved to 2018
The original title of this project was the L. Gan-Fonadhoo Major Cross-Roads Project.
Indicative Assistance Pipeline – Non-Lending Products 2016–2018
Indicative Assistance Pipeline – Non-Lending Products 2016–2018
| Sources of Funding | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| ADB | Others | ||||||||
| Assistance | Amount | Amount | Total | ||||||
| Assistance Name | Sector | Division | Type | Source | ($’000) | Source | ($’000) | ($’000) | |
| 2016 | |||||||||
| Capacity Development for Kulhudhuffushi Harbor Expansion Project | TRA | SATC | CDTA | TASF | 1,000.00 | 0.00 | 1,000.00 | ||
| 2017 | |||||||||
| Township Development Project | WUS | SAER | PPTA | TASF | 1,000.00 | 0.00 | 1,000.00 | ||
| 2018 | |||||||||
| L. Gan-Fonadhoo Community Connectivity Project | TRA | SAER | CDTA | TASF | 1,000.00 | 0.00 | 1,000.00 | ||
| Total | 3.000.00 | 3.000.00 | |||||||
Indicative Assistance Pipeline – Non-Lending Products 2016–2018
| Sources of Funding | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| ADB | Others | ||||||||
| Assistance | Amount | Amount | Total | ||||||
| Assistance Name | Sector | Division | Type | Source | ($’000) | Source | ($’000) | ($’000) | |
| 2016 | |||||||||
| Capacity Development for Kulhudhuffushi Harbor Expansion Project | TRA | SATC | CDTA | TASF | 1,000.00 | 0.00 | 1,000.00 | ||
| 2017 | |||||||||
| Township Development Project | WUS | SAER | PPTA | TASF | 1,000.00 | 0.00 | 1,000.00 | ||
| 2018 | |||||||||
| L. Gan-Fonadhoo Community Connectivity Project | TRA | SAER | CDTA | TASF | 1,000.00 | 0.00 | 1,000.00 | ||
| Total | 3.000.00 | 3.000.00 | |||||||
Non lending Product and Services 2015
Previously titled Improving Business Climate; on standby, resources to be sought from the JFPR.
Non lending Product and Services 2015
| Sources of Funding | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| ADB | Others | ||||||||
| Assistance | Amount | Amount | Total | ||||||
| Assistance Name | Sector | Division | Type | Source | ($’000) | Source | ($’000) | ($•000) | |
| Firm | |||||||||
| Strengthening Capacity tor Operations Management (Supplementary) | PSM | SARC | CDTA | TASF | 500.00 | 0.00 | 500.00 | ||
| Capacity Development or Maldives Energy Authority (Supplementary) | PSM | SAEN | CDTA | 0.00 | SCF | 400.00 | 400.00 | ||
| L. Gan-Fonadhoo Community Connectivity Project | PSM | SAER | PPTA | TASF | 600.00 | 0.00 | 600.00 | ||
| Standby | PSM | SARC | CDTA | TASF | 600.00 | TBD | 400.00 | 400.00 | |
| Supporting Project Development and Information Managementa | |||||||||
| Total | 1.100.00 | 800.00 | 1.900.00 | ||||||
Previously titled Improving Business Climate; on standby, resources to be sought from the JFPR.
Non lending Product and Services 2015
| Sources of Funding | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| ADB | Others | ||||||||
| Assistance | Amount | Amount | Total | ||||||
| Assistance Name | Sector | Division | Type | Source | ($’000) | Source | ($’000) | ($•000) | |
| Firm | |||||||||
| Strengthening Capacity tor Operations Management (Supplementary) | PSM | SARC | CDTA | TASF | 500.00 | 0.00 | 500.00 | ||
| Capacity Development or Maldives Energy Authority (Supplementary) | PSM | SAEN | CDTA | 0.00 | SCF | 400.00 | 400.00 | ||
| L. Gan-Fonadhoo Community Connectivity Project | PSM | SAER | PPTA | TASF | 600.00 | 0.00 | 600.00 | ||
| Standby | PSM | SARC | CDTA | TASF | 600.00 | TBD | 400.00 | 400.00 | |
| Supporting Project Development and Information Managementa | |||||||||
| Total | 1.100.00 | 800.00 | 1.900.00 | ||||||
Previously titled Improving Business Climate; on standby, resources to be sought from the JFPR.
Lending program.
For 2016, funds for the Kulhudhuffushi Harbor Expansion Project was reduced from $12.68 million to $9.69 million; this is the result of the revised allocation of Asian Development Fund resources for the Maldives for 2015 and 2016 (the project uses the resources set aside for 2015 and 2016). The L. Gan-Fonadhoo Major Cross-Roads Project, proposed as standby in 2017 in the previous COBP, is to be moved to 2018 as a firm project with a change in the name to L. Gan-Fonadhoo Community Connectivity Project.
Non-lending program.
The Improving Business Climate capacity development technical assistance (TA), factored in for 2015 in the previous COBP, will be renamed Supporting Project Development and Information Management, and will seek resources ($400,000) from the Japan Fund for Poverty Reduction. It is kept on standby pending a funding decision on the proposal to be made to the Japan Fund for Poverty Reduction, as well as a request from the government for specific TA components. For 2017, a project preparatory TA is proposed for the Township Development Project (for $1,000,000), as suggested by the government and as part of its plans for the development of urban areas. The funds are to be used for a project design advance, as needed. Finally, for 2018, a capacity development TA is proposed to be attached to the L. Gan-Fonadhoo Community Connectivity Project (for $1,000,000).
Non-sovereign operations.
There are ongoing constraints in actively pursuing private sector investments and non-sovereign operations in the Maldives. Two critical ones are (i) the lack of effective convertibility of the rufiyaa, and (ii) the country’s weak sovereign rating. To this should be added the generally weak capacity of the private sector in key areas such as financial management and accounting, and constraints regarding the availability of a skilled workforce. Given the government’s strong push for economic transformation, which includes support for private sector investments, ADB will—during 2016–2018—consider scoping out specific areas where it can support the private sector, which will subsequently support inclusive economic growth. Where feasible, ADB will discuss with the government support for possible areas of non-sovereign operations that could be considered in the future.
Appendix II. ADB Updated Interim Country Partnership Strategy Results Framework
The country development goals here are updated from the COBP, 2015-2017: this section will be further updated for the full CPS.
The target and baseline for general cargo are from Government of the Maldives 2013. Maldives Mantime Transport Master Plan. Male.
This baseline indicator is meant 3S a proxy measure denved from the work done for the Maldives Maritime Transport Master Plan, using survey results for Male North Harbor (which has less-efficient cargo handling than Male South Harbor).
PSD and RCI impacts will be assessed during the project preparatory technical assistance.
| Country Development Goalsa | Changes from CPS or Last COBP | |||
|---|---|---|---|---|
| 1. Budget deficit as percentage of GDP reduced to 3.0% by 2015 (2013 baseline: 4.2%) 2. Foreign debt-GDP ratio reduced to 23.5% by 2015 (2013 baseline: 29 4%) 3 Recurrent expenditure reduced to 65% of budget by 2015 (2013 baseline: 75.7%) 4. Revenue as percentage of GDP increased to 38% by 2015 (2013 baseline: 28%) | Indicators for the development goals and baselines updated based on the March 2015 statistics report of the Maldives Monetary Authority and in consultation with government | |||
| Sector Selected for ADB Support | ||||
| Government Sector Objectives | Sector Outcomes that ADB Contributes to and Indicators | ADB Areas of Intervention | ADB Indicative Resource Allocation in the Next Pipeline and Strategic Priorities | Changes from CPS or Last COBP |
| Transport (Core are 1: infrastructure) | ||||
| Enhanced movement of people and goods, including at regional level | Increased and more efficient intra- and interisland movement of people and goods | Infrastructure development in water transport | S9.69 million (38% of total investments in the COBP. 2016-2018) Of which: | Changes in the sector outcomes and project composition in consultation with the government; changes in the resource allocation based on revised ADF and OCR concessional allocations for the Maldives for $25.36 million for 20152018 |
| Indicators | Capacity development | ESG = 100% GEM = 0% PSD = 100%d RCI = 100%d | ||
| Number of passengers from the atolls to Male increases to 1,572 people/day in 2015 (2012 baseline: 1,209) Current value: NA | Promotion of private sector participation | |||
| Inbound container throughput of general cargo increases to 47.053 tons in 2015 (2013 baseline: 42,089 tons)b Current value: NA | ||||
| Average dwell time of cargo vessels nationally decreases by 10% by 2015 (2013 baseline [estimate]: average 6.3 days)c Current value: NA | ||||
The country development goals here are updated from the COBP, 2015-2017: this section will be further updated for the full CPS.
The target and baseline for general cargo are from Government of the Maldives 2013. Maldives Mantime Transport Master Plan. Male.
This baseline indicator is meant 3S a proxy measure denved from the work done for the Maldives Maritime Transport Master Plan, using survey results for Male North Harbor (which has less-efficient cargo handling than Male South Harbor).
PSD and RCI impacts will be assessed during the project preparatory technical assistance.
| Country Development Goalsa | Changes from CPS or Last COBP | |||
|---|---|---|---|---|
| 1. Budget deficit as percentage of GDP reduced to 3.0% by 2015 (2013 baseline: 4.2%) 2. Foreign debt-GDP ratio reduced to 23.5% by 2015 (2013 baseline: 29 4%) 3 Recurrent expenditure reduced to 65% of budget by 2015 (2013 baseline: 75.7%) 4. Revenue as percentage of GDP increased to 38% by 2015 (2013 baseline: 28%) | Indicators for the development goals and baselines updated based on the March 2015 statistics report of the Maldives Monetary Authority and in consultation with government | |||
| Sector Selected for ADB Support | ||||
| Government Sector Objectives | Sector Outcomes that ADB Contributes to and Indicators | ADB Areas of Intervention | ADB Indicative Resource Allocation in the Next Pipeline and Strategic Priorities | Changes from CPS or Last COBP |
| Transport (Core are 1: infrastructure) | ||||
| Enhanced movement of people and goods, including at regional level | Increased and more efficient intra- and interisland movement of people and goods | Infrastructure development in water transport | S9.69 million (38% of total investments in the COBP. 2016-2018) Of which: | Changes in the sector outcomes and project composition in consultation with the government; changes in the resource allocation based on revised ADF and OCR concessional allocations for the Maldives for $25.36 million for 20152018 |
| Indicators | Capacity development | ESG = 100% GEM = 0% PSD = 100%d RCI = 100%d | ||
| Number of passengers from the atolls to Male increases to 1,572 people/day in 2015 (2012 baseline: 1,209) Current value: NA | Promotion of private sector participation | |||
| Inbound container throughput of general cargo increases to 47.053 tons in 2015 (2013 baseline: 42,089 tons)b Current value: NA | ||||
| Average dwell time of cargo vessels nationally decreases by 10% by 2015 (2013 baseline [estimate]: average 6.3 days)c Current value: NA | ||||
The country development goals here are updated from the COBP, 2015-2017: this section will be further updated for the full CPS.
The target and baseline for general cargo are from Government of the Maldives 2013. Maldives Mantime Transport Master Plan. Male.
This baseline indicator is meant 3S a proxy measure denved from the work done for the Maldives Maritime Transport Master Plan, using survey results for Male North Harbor (which has less-efficient cargo handling than Male South Harbor).
PSD and RCI impacts will be assessed during the project preparatory technical assistance.
Statistical Issues
(As of March 2016)
| General: Macroeconomic statistics have improved in recent years, with technical assistance from STA and the Asian Development Bank (AsDB). While data are broadly adequate for surveillance (Category B) there are nonetheless significant data gaps that complicate policy making and aspects of surveillance. Remaining shortcomings affect the balance of payments, government finance, and national accounts statistics. | |
| Real sector: National accounts statistics are available on an annual basis and with a considerable lag, though the authorities have also begun to publish quarterly GDP data. 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 2003, so that recent changes in the structure of the economy are not reflected by the base period weights. The AsDB has assisted the authorities in setting up a framework for compiling more comprehensive national accounts and STA has provided substantial assistance for improving the annual production and expenditure GDP measures, and for developing quarterly GDP series. The CPI was rebased to June 2012=100, with assistance from STA. Weights are based on the 2012 household income and expenditure survey. | |
| Fiscal sector: General government data are reported for publication in the GFS Yearbook and the latest published data are for 2011. 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. | |
| Financial sector: APD receives an electronic report on monetary statistics every two weeks, 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. There are inconsistencies between monetary and fiscal data regarding the financing of the fiscal deficit due to issues of timing and coverage. The MMA uses the standardized report forms (SRFs) to report data for the central bank and other financial corporations on a regular basis. An integrated monetary database that meets the needs of the MMA, STA, and APD and is operational. | |
| External sector: The MMA compiles balance of payments data on an annual basis. Coverage has improved substantially but is still limited in some areas and recent recommendations provided by technical assistance missions have yet to be implemented. Travel credits (receipts) and other services items are estimated on the basis of tourism GST receipts and the use of the withholding tax on services provided by nonresidents which has improved the coverage of other services (debits) although it does not capture all cross-border services. The survey run by the Ministry of Tourism should be used to validate the estimates related to the travel credits. The MMA conducted the first survey on inward foreign direct investment (FDI) in June 2013 and a second in 2015; a new regulation should address the problem of a low response rate. The FDI source data are now sufficiently detailed to enable Maldives’ participation in the next IMF’s Coordinated Direct Investment Survey (CDIS). Other private financial flows are estimated on the basis of the CPIS and BIS data, but coverage needs to improve. A revised and more complete international investment position dataset consistent with the financial account will be disseminated in April 2016. 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 and the external debt data are not reported to QEDs. STA technical assistance missions have been working to improve external sector data and the International Investment Position. | |
| Notwithstanding recent improvements in the balance of payments statistics, the reliability of the data is uncertain—in part as it is inherently difficult to capture full data with many transactions occurring outside the country and no international counterparty data on tourism services to validate revenue estimates. | |
| Official reserves assets are reported every two weeks 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. | |
| Maldives has participated in the General Data Dissemination System (GDDS) since October 14, 2011. | No data ROSC available. |
| The authorities report macroeconomic data to the IMF on a regular and generally timely basis for publication in the IFS, BOPSY, and GFSY. | |
| General: Macroeconomic statistics have improved in recent years, with technical assistance from STA and the Asian Development Bank (AsDB). While data are broadly adequate for surveillance (Category B) there are nonetheless significant data gaps that complicate policy making and aspects of surveillance. Remaining shortcomings affect the balance of payments, government finance, and national accounts statistics. | |
| Real sector: National accounts statistics are available on an annual basis and with a considerable lag, though the authorities have also begun to publish quarterly GDP data. 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 2003, so that recent changes in the structure of the economy are not reflected by the base period weights. The AsDB has assisted the authorities in setting up a framework for compiling more comprehensive national accounts and STA has provided substantial assistance for improving the annual production and expenditure GDP measures, and for developing quarterly GDP series. The CPI was rebased to June 2012=100, with assistance from STA. Weights are based on the 2012 household income and expenditure survey. | |
| Fiscal sector: General government data are reported for publication in the GFS Yearbook and the latest published data are for 2011. 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. | |
| Financial sector: APD receives an electronic report on monetary statistics every two weeks, 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. There are inconsistencies between monetary and fiscal data regarding the financing of the fiscal deficit due to issues of timing and coverage. The MMA uses the standardized report forms (SRFs) to report data for the central bank and other financial corporations on a regular basis. An integrated monetary database that meets the needs of the MMA, STA, and APD and is operational. | |
| External sector: The MMA compiles balance of payments data on an annual basis. Coverage has improved substantially but is still limited in some areas and recent recommendations provided by technical assistance missions have yet to be implemented. Travel credits (receipts) and other services items are estimated on the basis of tourism GST receipts and the use of the withholding tax on services provided by nonresidents which has improved the coverage of other services (debits) although it does not capture all cross-border services. The survey run by the Ministry of Tourism should be used to validate the estimates related to the travel credits. The MMA conducted the first survey on inward foreign direct investment (FDI) in June 2013 and a second in 2015; a new regulation should address the problem of a low response rate. The FDI source data are now sufficiently detailed to enable Maldives’ participation in the next IMF’s Coordinated Direct Investment Survey (CDIS). Other private financial flows are estimated on the basis of the CPIS and BIS data, but coverage needs to improve. A revised and more complete international investment position dataset consistent with the financial account will be disseminated in April 2016. 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 and the external debt data are not reported to QEDs. STA technical assistance missions have been working to improve external sector data and the International Investment Position. | |
| Notwithstanding recent improvements in the balance of payments statistics, the reliability of the data is uncertain—in part as it is inherently difficult to capture full data with many transactions occurring outside the country and no international counterparty data on tourism services to validate revenue estimates. | |
| Official reserves assets are reported every two weeks 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. | |
| Maldives has participated in the General Data Dissemination System (GDDS) since October 14, 2011. | No data ROSC available. |
| The authorities report macroeconomic data to the IMF 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 April 6, 2016)
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. Interest rates on bank deposits are not provided.
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.
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 April 6, 2016)
| Date of Latest Observation | Date Received | Frequency of Data6 | Frequency of Reporting6 | Frequency of Publication6 | |
| Exchange Rates | 03/31/2016 | 04/06/2016 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 03/31/2016 | 04/06/2016 | D | D | D |
| Reserve/Base Money | 03/24/2016 | 03/31/2016 | W | W | M |
| Broad Money | 03/24/2016 | 03/31/2016 | W | W | M |
| Central Bank Balance Sheet | 03/24/2016 | 03/31/2016 | W | W | M |
| Consolidated Balance Sheet of the Banking System | 03/24/2016 | 03/31/2016 | W | W | M |
| Interest Rates2 | 04/05/2016 | 04/06/2016 | W | W | M |
| Consumer Price Index | 01/31/2016 | 03/07/2016 | W | W | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | 2014 | 11/30/2015 | A | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – Central Government | 2014 | 11/30/2015 | A | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 2014 | 11/30/2015 | A | M | M |
| External Current Account Balance | 2014 | 10/28/2015 | A | M | M |
| Exports and Imports of Goods and Services | 11/30/2015 | 03/07/2016 | M | M | M |
| GDP/GNP | 2014 | 10/30/2015 | A | M | M |
| Gross External Debt | 2014 | 10/30/2015 | A | M | M |
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. Interest rates on bank deposits are not provided.
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.
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 April 6, 2016)
| Date of Latest Observation | Date Received | Frequency of Data6 | Frequency of Reporting6 | Frequency of Publication6 | |
| Exchange Rates | 03/31/2016 | 04/06/2016 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | 03/31/2016 | 04/06/2016 | D | D | D |
| Reserve/Base Money | 03/24/2016 | 03/31/2016 | W | W | M |
| Broad Money | 03/24/2016 | 03/31/2016 | W | W | M |
| Central Bank Balance Sheet | 03/24/2016 | 03/31/2016 | W | W | M |
| Consolidated Balance Sheet of the Banking System | 03/24/2016 | 03/31/2016 | W | W | M |
| Interest Rates2 | 04/05/2016 | 04/06/2016 | W | W | M |
| Consumer Price Index | 01/31/2016 | 03/07/2016 | W | W | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | 2014 | 11/30/2015 | A | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – Central Government | 2014 | 11/30/2015 | A | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | 2014 | 11/30/2015 | A | M | M |
| External Current Account Balance | 2014 | 10/28/2015 | A | M | M |
| Exports and Imports of Goods and Services | 11/30/2015 | 03/07/2016 | M | M | M |
| GDP/GNP | 2014 | 10/30/2015 | A | M | M |
| Gross External Debt | 2014 | 10/30/2015 | A | M | M |
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. Interest rates on bank deposits are not provided.
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.
Daily (D); Weekly (W); Monthly (M); Quarterly (Q); Annually (A); Irregular (I); Not Available (NA).