Abstract
2019 Article IV Consultation-Press release; Staff Report; Staff Statement; and Statement by the Executive Director for Samoa
Fund Relations
(As of February 28, 2019)
Membership Status
Joined: December 28, 1971; Article VIII
General Resources Account
| SDR Million | Percent Quota | |
|---|---|---|
| Quota | 16.20 | 100.00 |
| Fund holdings of currency | 14.37 | 88.69 |
| Reserve position in Fund | 1.84 | 11.38 |
| SDR Million | Percent Quota | |
|---|---|---|
| Quota | 16.20 | 100.00 |
| Fund holdings of currency | 14.37 | 88.69 |
| Reserve position in Fund | 1.84 | 11.38 |
SDR Department
| SDR Million | Percent Allocation | |
|---|---|---|
| Net cumulative allocation | 11.09 | 100.00 |
| Holdings | 6.25 | 56.34 |
| SDR Million | Percent Allocation | |
|---|---|---|
| Net cumulative allocation | 11.09 | 100.00 |
| Holdings | 6.25 | 56.34 |
Outstanding Purchases and Loans
| SDR Million | Percent Quota | |
|---|---|---|
| RFC Loans | 5.22 | 32.22 |
| ESF RAC loan | 1.16 | 7.16 |
| SDR Million | Percent Quota | |
|---|---|---|
| RFC Loans | 5.22 | 32.22 |
| ESF RAC loan | 1.16 | 7.16 |
Latest Financial Arrangements
| Type | Approval Date | Expiration Date | Amount Approved (SDR million) | Amount Drawn (SDR million) |
|---|---|---|---|---|
| Stand-by | 7/9/1984 | 7/8/85 | 3.38 | 3.38 |
| Stand-by | 6/27/1983 | 6/26/1984 | 3.38 | 3.38 |
| Type | Approval Date | Expiration Date | Amount Approved (SDR million) | Amount Drawn (SDR million) |
|---|---|---|---|---|
| Stand-by | 7/9/1984 | 7/8/85 | 3.38 | 3.38 |
| Stand-by | 6/27/1983 | 6/26/1984 | 3.38 | 3.38 |
Overdue Obligations and Projected Payments to Fund1
(SDR million; based on existing use of resources and present holding 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 | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Principal | 2.32 | 1.16 | 1.16 | 1.16 | 0.58 |
| Charges/interest | 0.04 | 0.06 | 0.06 | 0.06 | 0.06 |
| Total | 2.36 | 1.22 | 1.22 | 1.22 | 0.64 |
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 | |||||
|---|---|---|---|---|---|
| 2019 | 2020 | 2021 | 2022 | 2023 | |
| Principal | 2.32 | 1.16 | 1.16 | 1.16 | 0.58 |
| Charges/interest | 0.04 | 0.06 | 0.06 | 0.06 | 0.06 |
| Total | 2.36 | 1.22 | 1.22 | 1.22 | 0.64 |
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 Rate Arrangement
The exchange rate of the tala is pegged to a trade and payments weighted basket of currencies. The pegged rate can be adjusted within a ±2 percent band. The basket is a composite of the currencies of Samoa’s most important trading partners and countries that are major sources of tourism revenue from abroad––New Zealand, Australia, the United States, and Euro countries. Samoa has accepted the obligations of Article VIII, Sections 2,3, and 4 and maintains an exchange system free of restrictions on the making and payments for current international transactions and multiple currency practices.
Article IV Consultations
Samoa is on a 12-month consultation cycle. The previous Article IV consultation discussions were held during February 21-March 5, 2018. The consultation was concluded by the Executive Board on May 7, 2018 (IMF Country Report No. 18/145).
Safeguards Assessments
An update safeguards assessment of the Central Bank of Samoa (CBS) was completed in June 2014. The assessment found some safeguards elements in place, but concerns over CBS autonomy and governance, audit quality, and staff capacity need to be addressed. The CBS has taken steps to address these, including improving its governance and autonomy through enactment of a new central bank law in 2015. In addition, the financial statements (FS) and the management letter are made available timely within three months of the FY year-end and the FS are also published. However, the CBS should take further steps to enhance oversight of audit functions.
AML/CFT
Samoa’s AML/CFT regime was assessed in 2015 by the Asia Pacific Group on Money Laundering (APG) under the revised 2012 FATF standard. In the mutual evaluation report (MER), the APG found significant shortcomings in Samoa’s AML/CFT regime, rating it low or moderately effective in 10 out of the 11 immediate outcomes on effectiveness, and non-compliant or partially compliant in 23 of the 40 technical recommendations. Following the APG assessment, the authorities developed the 2016–2020 national AML/CFT strategy and are making progress towards its implementation. Further amendments to the Money Laundering Prevention Act were passed in 2018. In the 2018 follow-up report, the APG re-rated Samoa from partially to largely compliant for three of the 40 FATF technical recommendations. Owing to overall progress in addressing technical compliance deficiencies, Samoa was moved from (expedited) enhanced follow-up to enhanced follow-up monitoring. APG will conduct its five-year follow-up on-site assessment in 2020 to review the progress made on the priority actions in the MER and other areas where Samoa had significant deficiencies.
Technical Assistance
The Pacific Financial Technical Assistance Centre (PFTAC) has provided assistance on budgetary management, tax administration, and financial sector supervision (see table). From Headquarters: MCM has provided assistance on monetary policy operations, banking, and insurance supervision and other central banking issues; STA has provided help with government finance statistics and balance of payments statistics; FAD with tax administration; LEG with the central bank law. Samoa is an IMF pilot on Correspondent Banking Relationships (CBR), on which it has received technical assistance from LEG and MCM in 2017 and follow-up assistance from LEG during the 2019 Article IV mission. APD also organized, together with the Asian Development Bank (ADB), high level roundtables in Sydney on February 5 and Auckland on February 7–8, 2018 to identify practical solutions to address the costs and risks of transferring remittances to Pacific countries and difficulties in undertaking cross-border transactions. The events were financially supported by the governments of Australia and New Zealand.
| FY 2018 | ||
| National Accounts | PFTAC | |
| Government Finance Statistics | PFTAC | |
| Balance of Payments Statistics | STA | |
| Expand the Use and Functionality of the Samoa Economic and Forecasting (SERF) Model | PFTAC | |
| Strengthening Arrears and Returns Management | PFTAC | |
| Introducing an industry partnership approach to improve tax compliance in cash economy sectors | PFTAC | |
| Improving Accounting and Reporting Frameworks | PFTAC | |
| Improving Fiscal Oversight of the financial and non-commercial SOEs | PFTAC | |
| Medium -term Expenditure Planning for National Sustainable | PFTAC and | |
| Development (PFM/ Macro) | UN/ESCAP | |
| Senior Managers Workshop (Revenue) | PFTAC and PITAA | |
| FY18–20 Multi-Topic TA | MCM | |
| PTFAC Reg. TA Center | OTM | |
| Monetary and Financial Statistics | STA | |
| Correspondent Banking Relationships | MCM and LEG | |
| FY 2017 | Strengthen the Audit Function | PFTAC |
| On-site examination Program | PFTAC | |
| Assist updating prudential standards for banks | PFTAC | |
| Financial Stability Analysis | MCM | |
| e-GDDS Implementation (JSA APD) | STA | |
| National Accounts | PFTAC | |
| Attend Compliance Improvement Strategy Launch | PFTAC | |
| Develop Accounting Policy | PFTAC | |
| On-site examination Program | PFTAC | |
| Improve cash management | PFTAC |
| FY 2018 | ||
| National Accounts | PFTAC | |
| Government Finance Statistics | PFTAC | |
| Balance of Payments Statistics | STA | |
| Expand the Use and Functionality of the Samoa Economic and Forecasting (SERF) Model | PFTAC | |
| Strengthening Arrears and Returns Management | PFTAC | |
| Introducing an industry partnership approach to improve tax compliance in cash economy sectors | PFTAC | |
| Improving Accounting and Reporting Frameworks | PFTAC | |
| Improving Fiscal Oversight of the financial and non-commercial SOEs | PFTAC | |
| Medium -term Expenditure Planning for National Sustainable | PFTAC and | |
| Development (PFM/ Macro) | UN/ESCAP | |
| Senior Managers Workshop (Revenue) | PFTAC and PITAA | |
| FY18–20 Multi-Topic TA | MCM | |
| PTFAC Reg. TA Center | OTM | |
| Monetary and Financial Statistics | STA | |
| Correspondent Banking Relationships | MCM and LEG | |
| FY 2017 | Strengthen the Audit Function | PFTAC |
| On-site examination Program | PFTAC | |
| Assist updating prudential standards for banks | PFTAC | |
| Financial Stability Analysis | MCM | |
| e-GDDS Implementation (JSA APD) | STA | |
| National Accounts | PFTAC | |
| Attend Compliance Improvement Strategy Launch | PFTAC | |
| Develop Accounting Policy | PFTAC | |
| On-site examination Program | PFTAC | |
| Improve cash management | PFTAC |
Resident Representative
The Regional Resident Representative Office for Pacific Island countries based in Suva, Fiji was opened on September 13, 2010 and the office covers Fiji, Kiribati, Marshall Islands, Micronesia, Palau, Papua New Guinea, Samoa, Solomon Islands, Tonga, Tuvalu, and Vanuatu. Ms. Leni Hunter is the current Resident Representative.
Relations with Other International Financial Institutions
Information on the activities of other IFIs in Samoa can be found at:
World Bank Group: http://projects.worldbank.org/search?lang=en&searchTerm=&countrycode_exact=WS
Asian Development Bank: https://www.adb.org/countries/samoa/main
Pacific Financial Technical Assistance Center: https://www.pftac.org/content/PFTAC/en1/reports11.html#tab_5
Statistical Issues
(As of March 2019)
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision has some shortcomings but is broadly adequate for surveillance. Core macroeconomic and monetary data are regularly reported to the IMF and published on official websites. However, there are weaknesses in national accounts, monetary and financial, and external sector statistics. | |
| National Accounts: National account statistics have been improved during the last three years. GDP is compiled by production on a quarterly basis, predominantly using value added tax data. GDP by production is in the process of being rebased from 2009 to 2013, which is expected to be published in 2019 H1. Parallel development work on an experimental estimate of GDP by expenditure will be resumed after rebasing. | |
| Price Statistics: The CPI is compiled monthly with a less than one-month lag (February 2016=100; though weights largely derived from the 2013–14 Household Income and Expenditure Survey). A quarterly import price index (March 2009 = 100) is also published with a lag of around six weeks, with coverage limited to chapters 01–27 of the Harmonized System. | |
| Government Finance Statistics: Samoa compiles GFS and report data to the IMF’s annual GFS database. The latest submission included general government data (the statement of sources and uses of cash) for FY2013–17, the first dissemination by Samoa of general government GFS. The Bureau of Statistics also compiles quarterly GFS for the budgetary central government, and the Ministry of Finance produces central government debt data; these data are disseminated through Samoa’s e-GDDS National Summary Data Page. The authorities intend to expand the coverage for GFS and debt statistics beyond general government to include the rest of the public sector. | |
| Monetary and Financial Statistics (MFS): Samoa reports monetary data to the IMF for the central bank, other depository corporations and other financial corporations (OFC) on a regular basis and through standardized report forms (SRF). Following up on the recommendations of the MFS TA mission conducted in 2015, data for OFCs, including its coverage, could be further improved. | |
| Financial Sector Surveillance: Samoa began reporting Financial Soundness Indicators (FSIs) to the IMF in March 2016. The authorities report all 12 core and 7 encouraged FSIs for deposit takers, two FSIs for other financial corporations, and two FSIs for real estate markets, with quarterly frequency. | |
| External sector statistics (ESS): the Central Bank of Samoa compiles quarterly balance of payments. As part of the Project to Improve ESS in the Asia–Pacific Region, funded by the Government of Japan and managed by the STA and the IMF Capacity Development Office in Thailand (CDOT), Samoa should continue developing source data mainly from non-financial corporations to compile international investment data. The Dissemination of initial estimates of the IIP depends on the availability of the results of the international investment survey. The source of data on exports of goods needs to be changed to the International Merchandise Trade Statistics, instead of the exchange control records currently used. Human resources are limited as the two economists in charge of compiling ESS also have responsibility for real sector statistics. The offshore financial and non-financial companies are not currently included in Samoa’s balance of payments statement due to insufficient data provided by the regulator. Moreover, incorporating 2018 international visitors survey final results would improve travel as well as remittances estimates. | |
| II. Data Standards and Quality | |
| Samoa participated in the General Data Dissemination System in 2012, which was superseded by the enhanced General Data Dissemination System (e-GDDS) in 2015. Beginning from April 2017, Samoa disseminates key macroeconomic and financial statistics through a web-based National Summary Data Page. | No data module ROSC has so far been conducted in Samoa. |
| I. Assessment of Data Adequacy for Surveillance | |
| General: Data provision has some shortcomings but is broadly adequate for surveillance. Core macroeconomic and monetary data are regularly reported to the IMF and published on official websites. However, there are weaknesses in national accounts, monetary and financial, and external sector statistics. | |
| National Accounts: National account statistics have been improved during the last three years. GDP is compiled by production on a quarterly basis, predominantly using value added tax data. GDP by production is in the process of being rebased from 2009 to 2013, which is expected to be published in 2019 H1. Parallel development work on an experimental estimate of GDP by expenditure will be resumed after rebasing. | |
| Price Statistics: The CPI is compiled monthly with a less than one-month lag (February 2016=100; though weights largely derived from the 2013–14 Household Income and Expenditure Survey). A quarterly import price index (March 2009 = 100) is also published with a lag of around six weeks, with coverage limited to chapters 01–27 of the Harmonized System. | |
| Government Finance Statistics: Samoa compiles GFS and report data to the IMF’s annual GFS database. The latest submission included general government data (the statement of sources and uses of cash) for FY2013–17, the first dissemination by Samoa of general government GFS. The Bureau of Statistics also compiles quarterly GFS for the budgetary central government, and the Ministry of Finance produces central government debt data; these data are disseminated through Samoa’s e-GDDS National Summary Data Page. The authorities intend to expand the coverage for GFS and debt statistics beyond general government to include the rest of the public sector. | |
| Monetary and Financial Statistics (MFS): Samoa reports monetary data to the IMF for the central bank, other depository corporations and other financial corporations (OFC) on a regular basis and through standardized report forms (SRF). Following up on the recommendations of the MFS TA mission conducted in 2015, data for OFCs, including its coverage, could be further improved. | |
| Financial Sector Surveillance: Samoa began reporting Financial Soundness Indicators (FSIs) to the IMF in March 2016. The authorities report all 12 core and 7 encouraged FSIs for deposit takers, two FSIs for other financial corporations, and two FSIs for real estate markets, with quarterly frequency. | |
| External sector statistics (ESS): the Central Bank of Samoa compiles quarterly balance of payments. As part of the Project to Improve ESS in the Asia–Pacific Region, funded by the Government of Japan and managed by the STA and the IMF Capacity Development Office in Thailand (CDOT), Samoa should continue developing source data mainly from non-financial corporations to compile international investment data. The Dissemination of initial estimates of the IIP depends on the availability of the results of the international investment survey. The source of data on exports of goods needs to be changed to the International Merchandise Trade Statistics, instead of the exchange control records currently used. Human resources are limited as the two economists in charge of compiling ESS also have responsibility for real sector statistics. The offshore financial and non-financial companies are not currently included in Samoa’s balance of payments statement due to insufficient data provided by the regulator. Moreover, incorporating 2018 international visitors survey final results would improve travel as well as remittances estimates. | |
| II. Data Standards and Quality | |
| Samoa participated in the General Data Dissemination System in 2012, which was superseded by the enhanced General Data Dissemination System (e-GDDS) in 2015. Beginning from April 2017, Samoa disseminates key macroeconomic and financial statistics through a web-based National Summary Data Page. | No data module ROSC has so far been conducted in Samoa. |
Samoa – Table of Common Indicators Required for Surveillance
(As of March 2019)
Data obtained directly from the Central Bank of Samoa.
Officially-determined rates (yields on central bank securities) and commercial banks’ deposit and lending rates.
Domestic and external financing. Samoa produces quarterly data for the budgetary central government only and produces annual data for the central government.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).
Samoa does not provide International Investment Position data due to capacity constraints.
Samoa – Table of Common Indicators Required for Surveillance
(As of March 2019)
| Date of latest observation | Date received | Frequency of Data4 | Frequency of Reporting4 | Frequency of Publication4 | |
|---|---|---|---|---|---|
| Exchange Rates | 03/05/19 | 03/05/19 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities | 1/19 | 03/05/19 | M | M | M |
| Reserve/Base Money | 12/18 | 03/05/19 | M | M | M |
| Broad Money | 12/18 | 03/05/19 | M | M | M |
| Central Bank Balance Sheet | 12/18 | 03/05/19 | M | M | N/A |
| Consolidated Balance Sheet of the Banking System1 | 12/18 | 03/05/19 | M | M | N/A |
| Interest Rates2 | 12/18 | 03/05/19 | M | M | M |
| Consumer Price Index | 02/19 | 03/05/19 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – Central Budgetary Government | Q2 2018 | 03/05/19 | Q | Q | Q |
| Stocks of Central Government and Central Government-Guaranteed Debt | Q2 2018 | 03/05/19 | Q | Q | N/A |
| External Current Account Balance | Q3 2018 | 03/05/19 | Q | Q | Q |
| Exports and Imports of Goods and Services | Q4 2018 | 03/05/19 | M | M | M |
| GDP | Q3 2018 | 03/05/19 | Q | Q | Q |
| Gross External Debt | Q2 2018 | 03/05/19 | Q | Q | Q |
| International Investment Position5 |
Data obtained directly from the Central Bank of Samoa.
Officially-determined rates (yields on central bank securities) and commercial banks’ deposit and lending rates.
Domestic and external financing. Samoa produces quarterly data for the budgetary central government only and produces annual data for the central government.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).
Samoa does not provide International Investment Position data due to capacity constraints.
Samoa – Table of Common Indicators Required for Surveillance
(As of March 2019)
| Date of latest observation | Date received | Frequency of Data4 | Frequency of Reporting4 | Frequency of Publication4 | |
|---|---|---|---|---|---|
| Exchange Rates | 03/05/19 | 03/05/19 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities | 1/19 | 03/05/19 | M | M | M |
| Reserve/Base Money | 12/18 | 03/05/19 | M | M | M |
| Broad Money | 12/18 | 03/05/19 | M | M | M |
| Central Bank Balance Sheet | 12/18 | 03/05/19 | M | M | N/A |
| Consolidated Balance Sheet of the Banking System1 | 12/18 | 03/05/19 | M | M | N/A |
| Interest Rates2 | 12/18 | 03/05/19 | M | M | M |
| Consumer Price Index | 02/19 | 03/05/19 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – Central Budgetary Government | Q2 2018 | 03/05/19 | Q | Q | Q |
| Stocks of Central Government and Central Government-Guaranteed Debt | Q2 2018 | 03/05/19 | Q | Q | N/A |
| External Current Account Balance | Q3 2018 | 03/05/19 | Q | Q | Q |
| Exports and Imports of Goods and Services | Q4 2018 | 03/05/19 | M | M | M |
| GDP | Q3 2018 | 03/05/19 | Q | Q | Q |
| Gross External Debt | Q2 2018 | 03/05/19 | Q | Q | Q |
| International Investment Position5 |
Data obtained directly from the Central Bank of Samoa.
Officially-determined rates (yields on central bank securities) and commercial banks’ deposit and lending rates.
Domestic and external financing. Samoa produces quarterly data for the budgetary central government only and produces annual data for the central government.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I); Not Available (NA).
Samoa does not provide International Investment Position data due to capacity constraints.