Abstract
2018 Article IV Consultation -Press Release; Staff Report; and Statement by the Executive Director for Kiribati
Fund Relations
(As of December 10, 2018)
Membership Status: Joined June 3, 1986; accepted Article VIII.
| General Resources Account: | ||
| SDR Million | Percent Quota | |
| Quota | 11.20 | 100.00 |
| Fund holdings of currency | 9.80 | 87.51 |
| Reserve tranche position | 1.41 | 12.59 |
| SDR Department: | ||
| SDR Million | Percent Allocation | |
| Net cumulative allocation | 5.32 | 100.00 |
| Holdings | 3.99 | 74.96 |
| General Resources Account: | ||
| SDR Million | Percent Quota | |
| Quota | 11.20 | 100.00 |
| Fund holdings of currency | 9.80 | 87.51 |
| Reserve tranche position | 1.41 | 12.59 |
| SDR Department: | ||
| SDR Million | Percent Allocation | |
| Net cumulative allocation | 5.32 | 100.00 |
| Holdings | 3.99 | 74.96 |
Outstanding Purchases and Loans: None
Latest Financial Arrangements: None
Projected Obligations to Fund: None
Implementation of HIPC Initiative: Not Applicable
Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable
Implementation of Catastrophe Containment and Relief (CCR): Not Applicable
Exchange Rate Arrangements: The Australian dollar circulates as legal tender. Kiribati has accepted the obligations under Article VIII of the IMF’s Articles of Agreement and maintains an exchange rate system that is free of restrictions on the making of payments and transfers for current international transactions. Kiribati also agrees to notify the Fund of any exchange restrictions imposed solely for security reasons.
Article IV Consultation: Kiribati is on a 12-month consultation cycle. The 2017 Article IV consultation discussions were held in Tarawa during September 11–20, 2017. The Executive Board concluded the 2017 Article IV consultation on December 18, 2017.
Technical Assistance (TA), 1995–2018: STA, LEG, MCM, FAD, and PFTAC have provided TA on statistics, tax administration and policy, budget management, public financial management, Revenue Equalization Reserve Fund (RERF) and Pension Fund (KPF) management, financial sector reform and supervision, and combating financial crime and financial system abuse.
Resident Representative: The resident representative office for Pacific Island Countries opened in September 2010 in Suva, Fiji. Ms. Leni Hunter has been the Resident Representative since March 2018.
Relations with Other IFIS
World Bank Group: http://proiects.wor!dbank.orq/search?!anq=en&searchTerm=&countrycode_exact=KI
Asian Development Bank: https://www.adb.org/countries/kiribati/main
Pacific Financial Technical Assistance Center: https://www.pftac.org/content/PFTAC/en1/reports11.html#tab_5
Statistical Issues
While Article VIII, Section 5 excuses members when they are unable to provide the information required for capacity reasons, it also places upon such members an obligation over time to improve their reporting systems and the accuracy of the information they provide to the Fund. Furthermore, until a member is in a position to provide final data to the Fund, a member is obliged to provide the Fund with provisional data to the best of its ability.
| I. Assessment of Data Adequacy for Surveillance (As of December 2018) |
| General: Data provision has some shortcomings, but is broadly adequate for surveillance. Financial sector statistics (e.g., compiling a consolidated banking system balance sheet and a select list of financial stability indicators) is a priority. Balance of Payments and, to some extent, Government Finance Statistics could also be further improved.1 |
| National accounts: With PTFAC and STA assistance, GDP estimates have improved. There was one TA mission in August 2018 to improve the national data accounting system, with updates and revisions to GDP data for 201217. However, further capacity building would be needed to continue to improve the quality of GDP estimates, particularly expenditure-based GDP estimates. Presently, only current and constant 2006 prices GDP data is compiled using the value-added approach. |
| Price statistics: The monthly retail price index (2006 =100) is produced with a short lag (about a month), based on a survey in South Tarawa (a national index is not available). There are no producer, wholesale, or trade price indices. |
| Government finance statistics: A GFS mission in August 2018 continued to assess data sources and discussed a strategy for expanding the institutional coverage. The mission analyzed public corporation data to expand coverage to the public sector. The volume of flows and debt stocks are concentrated on a few large units and it was recommended to prioritize the processing of financial data from these units in detail to start compiling unconsolidated public corporation data. Collection and compilation of donor-financed projects can be further improved. Challenges exist with respect to the collaboration of data providing units and the quality of underlying accounting data. A unit-by-unit strategy should be developed and assistance in providing accounting knowledge may be required to process financial data. Expanding coverage in both areas would significantly improve the analytical value of GFS for policymakers and domestic and international stakeholders, specifically the quality of information on public investment, financial relationships between the government and public corporations, and the measurement of public sector debt will be improved at the same time. |
| Monetary statistics: The balance sheets of the public financial institutions (Development Bank of Kiribati, Kiribati Provident Fund, and Kiribati Insurance Corporation) are available with lags, but the consolidated balance sheet of the financial sector is not available. Data on interest rates are reported with a very long lag. |
| Balance of payments: The results of the JSA Project on the Improvement of ESS in the Asia and Pacific Region (last mission was in 2015) were proved to be non-sustainable due to lack of staff resources, staff knowledge, and inadequate automatization of statistical and accounting processes. The 2018 TA mission assessed reliability of produced data, calibrated discrepancies with government accounts for grants, loans, revenues, and reserves; validated data in various government reports; and suggested improvements in compilation techniques. The recommendations were made on improved compilation practices for direct investments and for donor-financed government projects. Periodicity and timeliness of BOP and IIP data are to be improved. To ensure sustainable results, the country needs to receive regular technical assistance. |
| II. Data Standards and Quality |
| Kiribati has been a participant in the General Data Dissemination System (GDDS) since 2004. No data ROSC is available. |
| III. Reporting to STA (Optional) |
| Data is reported to STA for publication in the Government Finance Statistics Yearbook, the Balance of Payments Statistics Yearbook, and the IFS. Kiribati does not report monetary and financial statistics based on the standardized report forms (SRFs) for publication as part of the International Financial Statistics (IFS) and financial soundness indicators (FSIs) for publication on the IMF’s website. |
While Article VIII, Section 5 excuses members when they are unable to provide the information required for capacity reasons, it also places upon such members an obligation over time to improve their reporting systems and the accuracy of the information they provide to the Fund. Furthermore, until a member is in a position to provide final data to the Fund, a member is obliged to provide the Fund with provisional data to the best of its ability.
| I. Assessment of Data Adequacy for Surveillance (As of December 2018) |
| General: Data provision has some shortcomings, but is broadly adequate for surveillance. Financial sector statistics (e.g., compiling a consolidated banking system balance sheet and a select list of financial stability indicators) is a priority. Balance of Payments and, to some extent, Government Finance Statistics could also be further improved.1 |
| National accounts: With PTFAC and STA assistance, GDP estimates have improved. There was one TA mission in August 2018 to improve the national data accounting system, with updates and revisions to GDP data for 201217. However, further capacity building would be needed to continue to improve the quality of GDP estimates, particularly expenditure-based GDP estimates. Presently, only current and constant 2006 prices GDP data is compiled using the value-added approach. |
| Price statistics: The monthly retail price index (2006 =100) is produced with a short lag (about a month), based on a survey in South Tarawa (a national index is not available). There are no producer, wholesale, or trade price indices. |
| Government finance statistics: A GFS mission in August 2018 continued to assess data sources and discussed a strategy for expanding the institutional coverage. The mission analyzed public corporation data to expand coverage to the public sector. The volume of flows and debt stocks are concentrated on a few large units and it was recommended to prioritize the processing of financial data from these units in detail to start compiling unconsolidated public corporation data. Collection and compilation of donor-financed projects can be further improved. Challenges exist with respect to the collaboration of data providing units and the quality of underlying accounting data. A unit-by-unit strategy should be developed and assistance in providing accounting knowledge may be required to process financial data. Expanding coverage in both areas would significantly improve the analytical value of GFS for policymakers and domestic and international stakeholders, specifically the quality of information on public investment, financial relationships between the government and public corporations, and the measurement of public sector debt will be improved at the same time. |
| Monetary statistics: The balance sheets of the public financial institutions (Development Bank of Kiribati, Kiribati Provident Fund, and Kiribati Insurance Corporation) are available with lags, but the consolidated balance sheet of the financial sector is not available. Data on interest rates are reported with a very long lag. |
| Balance of payments: The results of the JSA Project on the Improvement of ESS in the Asia and Pacific Region (last mission was in 2015) were proved to be non-sustainable due to lack of staff resources, staff knowledge, and inadequate automatization of statistical and accounting processes. The 2018 TA mission assessed reliability of produced data, calibrated discrepancies with government accounts for grants, loans, revenues, and reserves; validated data in various government reports; and suggested improvements in compilation techniques. The recommendations were made on improved compilation practices for direct investments and for donor-financed government projects. Periodicity and timeliness of BOP and IIP data are to be improved. To ensure sustainable results, the country needs to receive regular technical assistance. |
| II. Data Standards and Quality |
| Kiribati has been a participant in the General Data Dissemination System (GDDS) since 2004. No data ROSC is available. |
| III. Reporting to STA (Optional) |
| Data is reported to STA for publication in the Government Finance Statistics Yearbook, the Balance of Payments Statistics Yearbook, and the IFS. Kiribati does not report monetary and financial statistics based on the standardized report forms (SRFs) for publication as part of the International Financial Statistics (IFS) and financial soundness indicators (FSIs) for publication on the IMF’s website. |
While Article VIII, Section 5 excuses members when they are unable to provide the information required for capacity reasons, it also places upon such members an obligation over time to improve their reporting systems and the accuracy of the information they provide to the Fund. Furthermore, until a member is in a position to provide final data to the Fund, a member is obliged to provide the Fund with provisional data to the best of its ability.
Kiribati: Table of Common Indicators Required for Surveillance
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 discounts 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).
Kiribati: Table of Common Indicators Required for Surveillance
| Date of Latest Observation |
Date Received | Frequency of Data |
Frequency of Reporting 7/ |
Frequency of Publication 7/ |
|
|---|---|---|---|---|---|
| Exchange Rates | 10/22/2018 | 10/22/2018 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities /1 | 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 Rates /2 | 10/22/2018 | 10/22/2018 | A | A | I |
| Consumer Price Index | 12/2016 | 07/11/2018 | M | Q | Q |
| Revenue, Expenditure, Balance and Composition of Financing/3 - General Government /4 | FY2017 | 10/22/2018 | A | A | I |
| Stocks of Central Government and Central Government-Guaranteed Debt /5 | FY2017 | 10/22/2018 | A | A | I |
| External Current Account Balance | 12/2016 | 07/11/2018 | A | A | I |
| Exports and Imports of Goods and Services | 12/2016 | 07/11/2018 | A | A | I |
| GDP/GNP | 2017 | 10/18/2018 | A | A | I |
| Gross External Debt | FY2017 | 10/22/2018 | A | A | I |
| International Investment Position /6 | 12/2016 | 07/11/2018 | Q | A | I |
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 discounts 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).
Kiribati: Table of Common Indicators Required for Surveillance
| Date of Latest Observation |
Date Received | Frequency of Data |
Frequency of Reporting 7/ |
Frequency of Publication 7/ |
|
|---|---|---|---|---|---|
| Exchange Rates | 10/22/2018 | 10/22/2018 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities /1 | 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 Rates /2 | 10/22/2018 | 10/22/2018 | A | A | I |
| Consumer Price Index | 12/2016 | 07/11/2018 | M | Q | Q |
| Revenue, Expenditure, Balance and Composition of Financing/3 - General Government /4 | FY2017 | 10/22/2018 | A | A | I |
| Stocks of Central Government and Central Government-Guaranteed Debt /5 | FY2017 | 10/22/2018 | A | A | I |
| External Current Account Balance | 12/2016 | 07/11/2018 | A | A | I |
| Exports and Imports of Goods and Services | 12/2016 | 07/11/2018 | A | A | I |
| GDP/GNP | 2017 | 10/18/2018 | A | A | I |
| Gross External Debt | FY2017 | 10/22/2018 | A | A | I |
| International Investment Position /6 | 12/2016 | 07/11/2018 | Q | A | I |
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 discounts 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).