Abstract
2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Palau
Fund Relations
(As of December 31, 2018)
Membership Status: Joined December 16, 1997; Article VIII
General Resources Account:
| SDR Million | Percent of Quota | |
|---|---|---|
| Quota | 3.10 | 100.00 |
| Fund holdings of | 3.10 | 100.00 |
| Reserve position in the | 0.00 | 0.03 |
| SDR Million | Percent of Quota | |
|---|---|---|
| Quota | 3.10 | 100.00 |
| Fund holdings of | 3.10 | 100.00 |
| Reserve position in the | 0.00 | 0.03 |
SDR Department:
| SDR Million | Percent of Allocation | |
|---|---|---|
| Net cumulative allocation | 2.96 | 100.00 |
| Holdings | 2.99 | 101.08 |
| SDR Million | Percent of Allocation | |
|---|---|---|
| Net cumulative allocation | 2.96 | 100.00 |
| Holdings | 2.99 | 101.08 |
Outstanding Purchases and Loans: None
Latest Financial Arrangements: None
Projected Payments to Fund: None
Implementation of HIPC Initiative: Not applicable
Implementation of MDRI Assistance: Not applicable
Implementation of CCR: Not applicable
Exchange Rate Arrangements: The de jure and de facto exchange rate arrangement is an arrangement with no separate legal tender. The U.S. dollar is legal tender and the official currency. Palau has accepted the obligations of Article VIII, Sections 2, 3 and 4 and maintains an exchange system free of restrictions on the making of payments and transfers for current international transactions.
Last Article IV Consultation: Palau is on a 24-month cycle. The 2016 Article IV Consultation discussions were held in Koror during May 18–31, 2016. The staff report (IMF Country Report No. 16/328) was considered by the Executive Board and the consultation concluded on September 9, 2016.
Technical Assistance: Technical assistance on tax policy, tax law, bank supervision, and statistics (GDP and government finance) has been provided mainly through PFTAC.
Resident Representative: The resident representative office in the Pacific Islands was opened in September 2010 in Suva, Fiji. Ms. Leni Hunter is the current Resident Representative.
Relations with Other IFIs
Relations with other International Financial Institutions:
World Bank Group: http://projects.worldbank.org/search?lang=en&searchTerm=&countrycode_exact=PW
Asian Development Bank: https://www.adb.org/countries/palau/main
Pacific Financial Technical Assistance Center: https://www.pftac.org/content/PFTAC/en1/reports11.html#tab_5
Statistical Issues
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision has some shortcomings but is broadly adequate for surveillance. In particular, external sector statistics need to be further improved, while the coverage of monetary statistics could be expanded. Reporting lags could be shortened. With the support of technical assistance from IMF/PFTAC and the Graduate School USA, the Office of Planning and Statistics (OPS) compiles and publishes macroeconomic data at an annual frequency. The 2012–17 Palau Statistical Yearbook provide comprehensive data on macroeconomic indicators, population, employment, housing, education, health, investment, tourism, and other economic indicators has been published on Palau’s website ( https://www.palaugov.pw/executive-branch/ministries/finance/budgetandplanning/rop-statistical-yearbooks/). The OPS continues to rely heavily on external consultants and TA. Further improvements in capacity and additional TA are needed to strengthen the quality and timeliness of macroeconomic data. | |
| National Accounts: Annual GDP by production and income are compiled and published by Palau. The latest data available to date are for FY2017 and the base year has been recently updated to 2015. Further areas of improvement include more timely publication data and incorporating the improved data sources into GDP estimates. | |
| Price statistics: Data quality has improved, and the Consumer Price Index has been regularly published on a quarterly basis with a one to two quarter lag. | |
| Government finance statistics: Fiscal data are compiled using the GFSM 2014 classification and were published in the 2012–17 Palau Statistical Yearbook. Further improvements include broadening the coverage beyond the budgetary central government, improving the frequency and timeliness of reporting, and including the audited accounts. Annual GFS data for the budgetary central government are reported to STA. | |
| Monetary and financial statistics: The monetary survey is unavailable since there is no central bank. Palau does not report monetary and financial statistics to IMF’s Statistics Department (STA) using the standardized report forms (SRFs). TA on monetary and financial statistics could assist the authorities in developing the SRFs for the depository corporations and strengthening data reporting. | |
| Financial Soundness Indicators: Palau do not report to STA Financial Soundness Indicators (FSIs) that are in line with the FSI Guide for publication on the IMF’s website. Banks have been submitting quarterly financial statements, including balance sheets and profit and loss statements, to the Financial Institutions Commission (FIC) since 2009. The FIC publishes FSIs and balance sheet data on a quarterly basis. However, the FSIs do not include data from the National Development Bank of Palau as it remains outside the FIC’s supervision. | |
| External Sector Statistics: The balance of payments and international investment position are compiled annually following the BPM6 and published in the 2012–17 Palau Statistical Yearbook. However, there have been delays in reporting these data to STA. The Business Enterprise Survey and the Hotel Accommodation Survey and Tourist Expenditure Survey are expected to improve data quality, particularly tourism-related data. The financial accounts data need to improve as large errors and omissions undermine the usefulness of balance of payments data for surveillance. Palau participates in the coordinated direct and portfolio investment surveys of the IMF. | |
| II. Data Standards and Quality | |
| Palau began participating in the General Data Dissemination System in August 2013. | No data ROSC is available. |
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision has some shortcomings but is broadly adequate for surveillance. In particular, external sector statistics need to be further improved, while the coverage of monetary statistics could be expanded. Reporting lags could be shortened. With the support of technical assistance from IMF/PFTAC and the Graduate School USA, the Office of Planning and Statistics (OPS) compiles and publishes macroeconomic data at an annual frequency. The 2012–17 Palau Statistical Yearbook provide comprehensive data on macroeconomic indicators, population, employment, housing, education, health, investment, tourism, and other economic indicators has been published on Palau’s website ( https://www.palaugov.pw/executive-branch/ministries/finance/budgetandplanning/rop-statistical-yearbooks/). The OPS continues to rely heavily on external consultants and TA. Further improvements in capacity and additional TA are needed to strengthen the quality and timeliness of macroeconomic data. | |
| National Accounts: Annual GDP by production and income are compiled and published by Palau. The latest data available to date are for FY2017 and the base year has been recently updated to 2015. Further areas of improvement include more timely publication data and incorporating the improved data sources into GDP estimates. | |
| Price statistics: Data quality has improved, and the Consumer Price Index has been regularly published on a quarterly basis with a one to two quarter lag. | |
| Government finance statistics: Fiscal data are compiled using the GFSM 2014 classification and were published in the 2012–17 Palau Statistical Yearbook. Further improvements include broadening the coverage beyond the budgetary central government, improving the frequency and timeliness of reporting, and including the audited accounts. Annual GFS data for the budgetary central government are reported to STA. | |
| Monetary and financial statistics: The monetary survey is unavailable since there is no central bank. Palau does not report monetary and financial statistics to IMF’s Statistics Department (STA) using the standardized report forms (SRFs). TA on monetary and financial statistics could assist the authorities in developing the SRFs for the depository corporations and strengthening data reporting. | |
| Financial Soundness Indicators: Palau do not report to STA Financial Soundness Indicators (FSIs) that are in line with the FSI Guide for publication on the IMF’s website. Banks have been submitting quarterly financial statements, including balance sheets and profit and loss statements, to the Financial Institutions Commission (FIC) since 2009. The FIC publishes FSIs and balance sheet data on a quarterly basis. However, the FSIs do not include data from the National Development Bank of Palau as it remains outside the FIC’s supervision. | |
| External Sector Statistics: The balance of payments and international investment position are compiled annually following the BPM6 and published in the 2012–17 Palau Statistical Yearbook. However, there have been delays in reporting these data to STA. The Business Enterprise Survey and the Hotel Accommodation Survey and Tourist Expenditure Survey are expected to improve data quality, particularly tourism-related data. The financial accounts data need to improve as large errors and omissions undermine the usefulness of balance of payments data for surveillance. Palau participates in the coordinated direct and portfolio investment surveys of the IMF. | |
| II. Data Standards and Quality | |
| Palau began participating in the General Data Dissemination System in August 2013. | No data ROSC is available. |
Palau: Table of Common Indicators Required for Surveillance
(As of December 2018)
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.
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. The data for general government are not available due to lack of capacity.
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); and not available (NA).
Palau: Table of Common Indicators Required for Surveillance
(As of December 2018)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates (US dollar is the official currency) | 12/2018 | 1/2019 | M | M | M |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | NA | NA | NA | NA | NA |
| Reserve/Base Money | NA | NA | NA | NA | NA |
| Broad Money | NA | NA | NA | NA | NA |
| Central Bank Balance Sheet | NA | NA | NA | NA | NA |
| Consolidated Balance Sheet of the Banking System | NA | NA | NA | NA | NA |
| Interest Rates2 | NA | NA | NA | NA | NA |
| Consumer Price Index | 2018Q4 | 12/2018 | Q | Q | Q |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | NA | NA | NA | NA | NA |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | FY2017 | 9/2018 | A | A | A |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | FY2017 | 9/2018 | A | A | A |
| External Current Account Balance | FY2017 | 9/2018 | A | A | A |
| Exports and Imports of Goods and Services | FY2017 | 9/2018 | A | A | A |
| GDP/GNP (GDP production) | FY2017 | 9/2018 | A | A | A |
| Gross External Debt | FY2017 | 9/2018 | A | A | A |
| International Investment Position6 | FY2017 | 9/2018 | A | A | A |
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.
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. The data for general government are not available due to lack of capacity.
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); and not available (NA).
Palau: Table of Common Indicators Required for Surveillance
(As of December 2018)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication7 | |
|---|---|---|---|---|---|
| Exchange Rates (US dollar is the official currency) | 12/2018 | 1/2019 | M | M | M |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | NA | NA | NA | NA | NA |
| Reserve/Base Money | NA | NA | NA | NA | NA |
| Broad Money | NA | NA | NA | NA | NA |
| Central Bank Balance Sheet | NA | NA | NA | NA | NA |
| Consolidated Balance Sheet of the Banking System | NA | NA | NA | NA | NA |
| Interest Rates2 | NA | NA | NA | NA | NA |
| Consumer Price Index | 2018Q4 | 12/2018 | Q | Q | Q |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | NA | NA | NA | NA | NA |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | FY2017 | 9/2018 | A | A | A |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | FY2017 | 9/2018 | A | A | A |
| External Current Account Balance | FY2017 | 9/2018 | A | A | A |
| Exports and Imports of Goods and Services | FY2017 | 9/2018 | A | A | A |
| GDP/GNP (GDP production) | FY2017 | 9/2018 | A | A | A |
| Gross External Debt | FY2017 | 9/2018 | A | A | A |
| International Investment Position6 | FY2017 | 9/2018 | A | A | A |
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.
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. The data for general government are not available due to lack of capacity.
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); and not available (NA).