The mission took place in March 2019. The mission team comprised Geoffrey Bannister (APD), Ryota Nakatani (FAD) and Iris Claus (PFTAC).
The Cook Islands government estimates that the impact of graduation on economic growth will be 0.4 percent of GDP (2018/19 Half-Year Economic and Fiscal Update).
As of July 1, 2018, the World Bank threshold for high-income economies was a GNI per capita of $12,055 in 2017, while the estimate made by the Government of the Cook Islands put 2017 GNI at $16,860..
Including from the use of private homes for short-term tourist accommodations and longer-term rentals to contract staff of tourism operators.
Members and employers each contribute 5 percent of the salary, and an implied wage can be estimated from the value total contributions and the number of members.
Gross debt less assets in the Loan Repayment Fund and Stabilization Fund.
Net debt is defined as gross debt minus balances held in the government’s Loan Repayment Fund, which was set up to ensure a buffer for debt service payments. In 2018 the balances in the Loan Repayment Fund amounted to about 4 percent of GDP and are expected to decline to 2 ½ percent of GDP by 2023.
The decision to use funds in the stabilization account for debt repayment will be made with reference to a Debt Management Strategy to be developed in 2019. The 2019/20 budget sets aside NZ$56.7 million to put into the stabilization account.
IMF 2019 “Building Resilience in Developing Countries Vulnerable to Large Natural Disasters”.
The taxation regime was last reviewed in 2012.
A recent debt rating report from a major rating agency cited: “The vulnerabilities associated with the country’s weak policymaking culture and institutional settings are a key ratings constraint.”
The stock of debt includes loans drawn down and does not include loans committed but not drawn, largely contingencies for disaster risk management.
See for example the IMF and World Bank debt sustainability framework for low income countries (https://www.imf.org/en/Publications/Policy-Papers/Issues/2018/02/14/pp122617guidance-note-on-lic-dsf)
he Financial Services Development Authority (FSDA) is responsible for promoting the Cook Islands’ international financial services industry. The objective in establishing the FSDA was to encourage, promote, and develop the Cook Islands’ financial services industry to achieve sustained growth, which is economically beneficial, socially responsible and reputable.
According to banks, the largest corporates on the island have paid back loans early and reduced their liabilities, possibly due to a very liquid environment. In addition, some corporates and individuals with improved credit ratings and prospects have access to credit from mainland New Zealand banks bypassing the local credit market.
Footnote here on customary land arrangements – 60 year leases and the effect on loan recovery.
Although BCI emphasized that they have risk models and contingency plans for large movements in government bank accounts.