Gabon: Staff Report tor the 2019 Article IV Consultation, Fourth and Fifth Reviews Under the Extended Arrangement Under the Extended Fund Facility, and Request for Waiver of Nonobservance of Performance Criteria, and Rephasing of the Remaining Purchases—Informational Annex

2019 Article IV Consultation, Fourth and Fifth Reviews under the Extended Arrangement under the Extended Fund Facility, and Request for Waiver of Nonobservance of Performance Criteria, and Rephasing of the Remaining Purchases; Press Release; Staff Report; and Statement by the Executive Director

Abstract

2019 Article IV Consultation, Fourth and Fifth Reviews under the Extended Arrangement under the Extended Fund Facility, and Request for Waiver of Nonobservance of Performance Criteria, and Rephasing of the Remaining Purchases; Press Release; Staff Report; and Statement by the Executive Director

Relations with the Fund

(As of October 31, 2019)

Membership Status: Joined September 10, 1963 Article VIII

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Latest Financial Arrangements:

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Overdue Obligations and Projected Payments to Fund 1/

(SDR Million, based on existing use of resources and present holdings of SDRs):

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Implementation of HIPC Initiative: Not Applicable

Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable

Implementation of Post-Catastrophe Debt Relief (PCDR): Not Applicable

Safeguards Assessments:

The Bank of the Central African States (BEAC) is the regional central bank of CEMAC. A full safeguards assessments (SA) under the periodic four-year cycle for regional central banks was completed in August 2017. The assessment noted the positive steps taken by the BEAC to complete amendments to its Charter to strengthen governance provisions and plans to enhance financial reporting transparency through full transition to the international financial reporting standards (IFRS) beginning with the 2018 financial statements. The focus will now shift to implementation of the reforms in daily decision-making and secondary legal instruments. The assessment noted, however, that the BEAC will need to reinforce the capacity of its accounting, internal audit, and risk management functions, and that the governance arrangements over reserves management be aligned with the new BEAC charter. The implementation of most of the recommendations has progressed broadly as planned, and staff maintains close engagement with the BEAC as it continues to implement the governance reforms and transition to IFRS.

Exchange Rate Arrangement:

The de jure and de facto exchange rate arrangement of the Central African Monetary Union (CAMU) is a conventional peg. Gabon has accepted the obligations of Article VIII, Sections 2, 3 and 4 and maintains no separate legal tender. The regional currency is the CFA franc, which is pegged to the Euro at a fixed rate of CFAF 655.95 =Euro 1. Gabon maintains a 1.5 percent tax on wire transfers abroad that is not consistent with Gabon’s obligations under Article VIII, Section 2(a) of the Articles of Agreement. The proceeds of this tax are used to fund Gabon’s health insurance scheme. Staff encouraged the authorities to remove this restriction. The authorities note that they have exempted a number of transactions (including all interbank transactions) from this tax, but do not propose eliminating the tax.

Article IV Consultations:

Gabon is on a 24-month Article IV consultation cycle, since the EFF-supported arrangement has been in place. The Executive Board concluded the last Article IV consultation on February 19, 2016.

FSAP Participation and ROSCs:

The first regional Financial Sector Assessment Program (FSAP) was carried out during January–March 2006. Regional Reports on Observance of Standards and Codes (ROSCs) were done in the areas of monetary and financial policy transparency, banking supervision, and anti-money laundering and combating the financing of terrorism (AML/CFT) in June 2006. A FSAP update took place during November 2014–January 2015.

Resident Representative:

There is currently a resident representative in Gabon.

Technical Assistance:

A. Central Africa Regional Technical Assistance Center (AFRITAC)

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B. Headquarters

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Relations with the World Bank

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Relations with the African Development Bank

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Statistical Issues

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Gabon: Table of Common Indicators Required for Surveillance

(As of November 26, 2019)

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Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.

Both market-based and officially-determined, including deposit rate, discount rates, money market rates, rates on treasury bills, notes and bonds.

Foreign, domestic bank, and domestic nonbank financing.

The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

Including currency and maturity composition.

Includes external gross financial asset and liability positions vis-à-vis nonresidents.

Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).

Gabon: 2019 Article IV Consultation, Fourth and Fifth Reviews under the Extended Arrangement under the Extended Fund Facility, and Request for Waiver of Nonobservance of Performance Criteria, and Rephasing of the Remaining Purchases; Press Release; Staff Report; and Statement by the Executive Director
Author: International Monetary Fund. African Dept.