Abstract
Second Review under the Extended Credit Facility, Request for Waiver for Nonobservance of Performance Criterion, Request for Modification of Performance Criteria, and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for the Democratic Republic of S�o Tom�
Relations with the Fund
(As of November 30, 2020)
| I. Membership Status: Joined: September 30, 1977; | Article XIV |
| I. Membership Status: Joined: September 30, 1977; | Article XIV |
| II. General Resources Account: | SDR Million | %Quota |
|---|---|---|
| Quota | 14.80 | 100.00 |
| IMF’s Holdings of Currency (Holdings Rate) | 14.80 | 100.02 |
| Reserve Tranche Position | 0.00 | 0.00 |
| II. General Resources Account: | SDR Million | %Quota |
|---|---|---|
| Quota | 14.80 | 100.00 |
| IMF’s Holdings of Currency (Holdings Rate) | 14.80 | 100.02 |
| Reserve Tranche Position | 0.00 | 0.00 |
| III. SDR Department: | SDR Million | %Allocation |
|---|---|---|
| Net cumulative allocation | 7.10 | 100.00 |
| Holdings | 0.80 | 11.23 |
| III. SDR Department: | SDR Million | %Allocation |
|---|---|---|
| Net cumulative allocation | 7.10 | 100.00 |
| Holdings | 0.80 | 11.23 |
| IV. Outstanding Purchases and Loans: | SDR Million | %Quota |
|---|---|---|
| RCF Loans | 9.03 | 61.00 |
| ECF Arrangements | 9.55 | 64.50 |
| IV. Outstanding Purchases and Loans: | SDR Million | %Quota |
|---|---|---|
| RCF Loans | 9.03 | 61.00 |
| ECF Arrangements | 9.55 | 64.50 |
V. Latest Financial Commitments:
Arrangements:
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| ECF | Oct 02, 2019 | Feb 01, 2023 | 14.80 | 5.29 |
| ECF | Jul 13, 2015 | Dec 31, 2018 | 4.44 | 3.81 |
| ECF | Jul 20, 2012 | Jul 13, 2015 | 2.59 | 1.11 |
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| ECF | Oct 02, 2019 | Feb 01, 2023 | 14.80 | 5.29 |
| ECF | Jul 13, 2015 | Dec 31, 2018 | 4.44 | 3.81 |
| ECF | Jul 20, 2012 | Jul 13, 2015 | 2.59 | 1.11 |
Outright Loans:
| Type | Date of Commitment | Date Drawn | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| RCF | Apr 21, 2020 | Apr 23, 2020 | 9.03 | 9.03 |
| Type | Date of Commitment | Date Drawn | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
|---|---|---|---|---|
| RCF | Apr 21, 2020 | Apr 23, 2020 | 9.03 | 9.03 |
VI. Overdue Obligations and Projected Payments to Fund1/
(SDR Million; based on existing use of resources and present holdings 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 | |||||
|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | |
| Principal | 0.31 | 0.60 | 0.75 | 0.76 | |
| Charges/Interest | 0.01 | 0.01 | 0.01 | 0.01 | |
| Total | 0.32 | 0.61 | 0.75 | 0.77 | |
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 | |||||
|---|---|---|---|---|---|
| 2020 | 2021 | 2022 | 2023 | 2024 | |
| Principal | 0.31 | 0.60 | 0.75 | 0.76 | |
| Charges/Interest | 0.01 | 0.01 | 0.01 | 0.01 | |
| Total | 0.32 | 0.61 | 0.75 | 0.77 | |
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
VII. Implementation of HIPC Initiative:
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts can not be added.
Under the enhanced framework, an additional disbursement is made corresponding to interest income earned on the amount of HIPC assistance committed but not disbursed.
| I. Commitment of HIPC assistance | Enhanced Framework | ||||
| Decision point date | Dec 2000 | ||||
| Assistance committed | |||||
| by all creditors (US$ Million) 1/ | 124.30 | ||||
| Of which: IMF assistance (US$ million) | 1.24 | ||||
| (SDR equivalent in millions) | 0.82 | ||||
| Completion point date | Mar 2007 | ||||
| II. Disbursement of IMF assistance (SDR Million) | |||||
| Assistance disbursed to the member | 0.82 | ||||
| Interim assistance | -- | ||||
| Completion point balance | 0.82 | ||||
| Additional disbursement of interest income 2/ | 0.04 | ||||
| Total disbursements | 0.87 | ||||
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts can not be added.
Under the enhanced framework, an additional disbursement is made corresponding to interest income earned on the amount of HIPC assistance committed but not disbursed.
| I. Commitment of HIPC assistance | Enhanced Framework | ||||
| Decision point date | Dec 2000 | ||||
| Assistance committed | |||||
| by all creditors (US$ Million) 1/ | 124.30 | ||||
| Of which: IMF assistance (US$ million) | 1.24 | ||||
| (SDR equivalent in millions) | 0.82 | ||||
| Completion point date | Mar 2007 | ||||
| II. Disbursement of IMF assistance (SDR Million) | |||||
| Assistance disbursed to the member | 0.82 | ||||
| Interim assistance | -- | ||||
| Completion point balance | 0.82 | ||||
| Additional disbursement of interest income 2/ | 0.04 | ||||
| Total disbursements | 0.87 | ||||
Assistance committed under the original framework is expressed in net present value (NPV) terms at the completion point, and assistance committed under the enhanced framework is expressed in NPV terms at the decision point. Hence these two amounts can not be added.
Under the enhanced framework, an additional disbursement is made corresponding to interest income earned on the amount of HIPC assistance committed but not disbursed.
VIII. Implementation of Multilateral Debt Relief Initiative (MDRI):
The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.
| I. | MDRI-eligible debt (SDR Million)1/ | 1.43 | |||
| Financed by: MDRI Trust | 1.05 | ||||
| Remaining HIPC resources | 0.38 | ||||
| II. | Debt Relief by Facility (SDR Million) | ||||
| Eligible Debt | |||||
| Delivery Date | GRA | PRGT | Total | ||
| December 2007 | N/A | 0.38 | 0.38 | ||
| March 2007 | N/A | 1.05 | 1.05 | ||
The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.
| I. | MDRI-eligible debt (SDR Million)1/ | 1.43 | |||
| Financed by: MDRI Trust | 1.05 | ||||
| Remaining HIPC resources | 0.38 | ||||
| II. | Debt Relief by Facility (SDR Million) | ||||
| Eligible Debt | |||||
| Delivery Date | GRA | PRGT | Total | ||
| December 2007 | N/A | 0.38 | 0.38 | ||
| March 2007 | N/A | 1.05 | 1.05 | ||
The MDRI provides 100 percent debt relief to eligible member countries that qualified for the assistance. Grant assistance from the MDRI Trust and HIPC resources provide debt relief to cover the full stock of debt owed to the Fund as of end-2004 that remains outstanding at the time the member qualifies for such debt relief.
IX. Implementation of Catastrophe Containment and Relief (CCR):
| Date of Catastrophe | Board Decision Date | Amount Committed (SDR million) | Amount Disbursed (SDR million) |
|---|---|---|---|
| N/A | Apr 13, 2020 | 0.11 | 0.11 |
| N/A | Oct 02, 2020 | 0.17 | 0.17 |
| Date of Catastrophe | Board Decision Date | Amount Committed (SDR million) | Amount Disbursed (SDR million) |
|---|---|---|---|
| N/A | Apr 13, 2020 | 0.11 | 0.11 |
| N/A | Oct 02, 2020 | 0.17 | 0.17 |
As of February 4, 2015, the Post-Catastrophe Debt Relief Trust has been transformed to the Catastrophe Containment and Relief (CCR) Trust.
Decision point - point at which the IMF and the World Bank determine whether a country qualifies for assistance under the HIPC Initiative and decide on the amount of assistance to be committed. Interim assistance - amount disbursed to a country during the period between decision and completion points, up to 20 percent annually and 60 percent in total of the assistance committed at the decision point (or 25 percent and 75 percent, respectively, in exceptional circumstances). Completion point - point at which a country receives the remaining balance of its assistance committed at the decision point, together with an additional disbursement of interest income as defined in footnote 2 above. The timing of the completion point is linked to the implementation of pre-agreed key structural reforms (i.e., floating completion point).
Safeguards Assessments:
Safeguards assessments were conducted in 2009, 2013, 2015, and 2019. Limited progress has been made on strengthening safeguards at the Central Bank of São Tomé and Príncipe (BCSTP). While external audits continue to be conducted by reputable audit firms, capacity constraints have contributed limited progress in strengthening the safeguards framework at the BCSTP. An updated central bank law, which will improve the autonomy and independence of the BCSTP still needs to be finalized and passed by parliament. The financial position is weak, and the implementation of international financial reporting standards remains work in progress. The internal audit function continues to face capacity constraints and independent oversight of daily operations continues to be lacking. Technical assistance is necessary to advance the needed reforms in the areas of financial reporting and internal audit.
Exchange Arrangements:
The de jure and de facto exchange rate arrangement is a conventional peg against the euro. São Tomé and Príncipe has pegged the dobra to the euro since January 2010, initially at a rate of dobra 24,500 per euro; however, it redenominated the currency by removing three zeros in January 2018. The organic law of the BCSTP authorizes it to make decisions regarding exchange rate policy. The commission on foreign exchange sales by banks cannot be higher than 2 percent for the euro, while the spread for other currencies cannot exceed 4 percent. Purchases of euro by banks must be done at the rate published by the BCSTP and no commissions are allowed. The BCSTP finances current international transactions at the official exchange rate and only after verification of the documentation establishing the bona fide nature of the bank’s request. Access to foreign exchange is limited to banks having a net open position in the transaction currency of less than 12 percent of qualified capital, a net open position in total foreign currency less than 25 percent of qualified capital, and which are in compliance with the solvency and liquidity ratios set by the central bank, as well as minimum capital requirement. Banks are allowed to have a direct access to the central bank’s facilities regardless of the above conditions if the foreign exchange is to be used for importation of goods in periods of crisis or for the importation of fuel. The central bank charges 1.5 percent commission on sales of euro and a 0.5 percent commission on purchases of euro. The buying rate is mainly indicative because the BCSTP rarely makes purchases.
São Tomé and Príncipe continues to avail itself of the transitional arrangements under Article XIV, but it does not maintain restrictions under Article XIV. However, it maintains restrictions subject to Fund approval under Article VIII. One exchange restriction regarding limitations on the transferability of net income from investment arises from Article 3(g) and Article 18 of the Investment Code (Law No. 19/2016). This restriction results from the requirement that taxes and other obligations to the government have to be paid/fulfilled as a condition for transfer, to the extent the requirement includes the payment of taxes and the fulfillment of obligations unrelated to the net income to be transferred. The second exchange restriction arises from limitations on the availability of foreign exchange through rationing of foreign exchange by BCSTP. This exchange restriction also gives rise to a multiple currency practice as the rationing has channeled bona fide current transactions to the parallel market where the exchange rate is at a spread of more than 2 percent from the exchange rate in the formal market.
Article IV Consultation:
São Tomé and Príncipe is currently under a 24-month consultation cycle. The Executive Board concluded the last Article IV consultation on July 23, 2018.
Financial Sector Assessment Program (FSAP), Reports on Observance of Standards and Codes (ROSCs), and Offshore Financial Center (OFC) Assessments:
None.
Resident Representative:
The Fund has not had a Resident Representative office in São Tomé and Príncipe since October 2006.
Technical Assistance 2016–20:
| Date of Delivery | Department/Purpose |
|---|---|
| November 2020 | AFRITAC remote mission on banking supervision |
| October 2020 | STX remote mission on tax administration |
| September 2020 | AFRITAC remote mission on government finance statistics |
| September 2020 | FAD remote mission on tax administration |
| June 2020 | STX remote mission on customs administration |
| June 2020 | AFRITAC remote mission on commitment plans |
| June 2020 | AFRITAC remote mission on macro-fiscal forecasts |
| June 2020 | AFRITAC remote mission on national accounts |
| February 2020 | AFRITAC mission on budget execution and controls |
| January 2020 | LEG mission on financial institutions law |
| January 2020 | STX mission tax administration |
| January 2020 | AFRITAC mission on macro-fiscal framework |
| December 2019 | LEG mission on BCSTP organic law |
| November 2019 | MCM mission on monetary operations |
| November 2019 | FAD mission on budget execution and controls |
| November 2019 | STX mission on VAT and Excise implementation |
| November 2019 | AFRITAC mission on national account statistics |
| September 2019 | STX mission on government finance statistics |
| September 2019 | AFRITAC Customs revenue mobilization |
| September 2019 | STX mission tax administration |
| August 2019 | MCM mission on open market operations |
| July 2019 | STX mission tax administration |
| June 2019 | STX mission revenue administration |
| May 2019 | AFRITAC mission on banking reg. and supervision |
| May 2019 | STX mission on revenue administration |
| May 2019 | FAD mission on revenue administration |
| April 2019 | AFRITAC mission on national accounts statistics |
| March 2019 | AFRITAC mission on government finance statistics |
| December 2018 | AFRITAC mission on government finance statistics |
| December 2018 | AFRITAC mission on banking reg. and supervision |
| October 2018 | AFRITAC mission on government finance statistics |
| October 2018 | AFRITAC mission on debt management |
| September 2018 | AFRITAC mission on government finance statistics |
| August 2018 | STX mission on tax policy |
| August 2018 | FAD mission on revenue administration |
| August 2018 | FAD mission on PFM |
| June 2018 | AFRITAC mission on national accounts statistics |
| June 2018 | FAD mission on preparation for VAT |
| May 2018 | FAD mission on customs administration |
| May 2018 | AFRITAC training workshop on debt management |
| May 2018 | AFRITAC mission on banking reg. and supervision |
| April 2018 | AFRITAC mission on GFS |
| February 2018 | AFRITAC mission on customs administration |
| February 2018 | STA mission on BoP statistics |
| January-April 2018 | FAD Peripatetic expert on preparation for VAT |
| January 2018 | STA mission on price statistics |
| January 2018 | AFRITAC mission on national accounts statistics |
| January 2018 | AFRITAC mission on customs administration |
| December 2017 | AFRITAC mission on banking reg. and supervision |
| December 2017 | AFRITAC mission on public debt management |
| November 2017 | MCM mission on bank resolution and liquidation |
| November 2017 | LEG follow-up mission on VAT tax law |
| August 2017 | AFRITAC mission on government finance statistics |
| July 2017 | FAD mission on budget execution and control |
| March 2017 | FAD mission on revenue administration |
| March 2017 | FAD mission on arrears management |
| March 2017 | STA mission on national accounts statistics |
| February 2017 | MCM mission on banking supervision and regulation |
| November 2016 | MCM mission on bank resolution and liquidation |
| August 2016 | MCM mission on banking supervision and regulation |
| Date of Delivery | Department/Purpose |
|---|---|
| November 2020 | AFRITAC remote mission on banking supervision |
| October 2020 | STX remote mission on tax administration |
| September 2020 | AFRITAC remote mission on government finance statistics |
| September 2020 | FAD remote mission on tax administration |
| June 2020 | STX remote mission on customs administration |
| June 2020 | AFRITAC remote mission on commitment plans |
| June 2020 | AFRITAC remote mission on macro-fiscal forecasts |
| June 2020 | AFRITAC remote mission on national accounts |
| February 2020 | AFRITAC mission on budget execution and controls |
| January 2020 | LEG mission on financial institutions law |
| January 2020 | STX mission tax administration |
| January 2020 | AFRITAC mission on macro-fiscal framework |
| December 2019 | LEG mission on BCSTP organic law |
| November 2019 | MCM mission on monetary operations |
| November 2019 | FAD mission on budget execution and controls |
| November 2019 | STX mission on VAT and Excise implementation |
| November 2019 | AFRITAC mission on national account statistics |
| September 2019 | STX mission on government finance statistics |
| September 2019 | AFRITAC Customs revenue mobilization |
| September 2019 | STX mission tax administration |
| August 2019 | MCM mission on open market operations |
| July 2019 | STX mission tax administration |
| June 2019 | STX mission revenue administration |
| May 2019 | AFRITAC mission on banking reg. and supervision |
| May 2019 | STX mission on revenue administration |
| May 2019 | FAD mission on revenue administration |
| April 2019 | AFRITAC mission on national accounts statistics |
| March 2019 | AFRITAC mission on government finance statistics |
| December 2018 | AFRITAC mission on government finance statistics |
| December 2018 | AFRITAC mission on banking reg. and supervision |
| October 2018 | AFRITAC mission on government finance statistics |
| October 2018 | AFRITAC mission on debt management |
| September 2018 | AFRITAC mission on government finance statistics |
| August 2018 | STX mission on tax policy |
| August 2018 | FAD mission on revenue administration |
| August 2018 | FAD mission on PFM |
| June 2018 | AFRITAC mission on national accounts statistics |
| June 2018 | FAD mission on preparation for VAT |
| May 2018 | FAD mission on customs administration |
| May 2018 | AFRITAC training workshop on debt management |
| May 2018 | AFRITAC mission on banking reg. and supervision |
| April 2018 | AFRITAC mission on GFS |
| February 2018 | AFRITAC mission on customs administration |
| February 2018 | STA mission on BoP statistics |
| January-April 2018 | FAD Peripatetic expert on preparation for VAT |
| January 2018 | STA mission on price statistics |
| January 2018 | AFRITAC mission on national accounts statistics |
| January 2018 | AFRITAC mission on customs administration |
| December 2017 | AFRITAC mission on banking reg. and supervision |
| December 2017 | AFRITAC mission on public debt management |
| November 2017 | MCM mission on bank resolution and liquidation |
| November 2017 | LEG follow-up mission on VAT tax law |
| August 2017 | AFRITAC mission on government finance statistics |
| July 2017 | FAD mission on budget execution and control |
| March 2017 | FAD mission on revenue administration |
| March 2017 | FAD mission on arrears management |
| March 2017 | STA mission on national accounts statistics |
| February 2017 | MCM mission on banking supervision and regulation |
| November 2016 | MCM mission on bank resolution and liquidation |
| August 2016 | MCM mission on banking supervision and regulation |
Relations with other International Financial Institutions
World Bank http://www.worldbank.org/en/country/saotome
African Development Bank https://www.afdb.org/en/countries/southern-africa/sao-tome-and-principe/
Statistical Issues
(As of July 7, 2020)
| I. Assessment of Data Adequacy for Surveillance |
| General: Data provision has some shortcomings, particularly in terms of timeliness of data, although it is broadly adequate for surveillance. More effort is needed to enhance macroeconomic statistics collection, particularly for leading indicators of economic activity and tourism data. Financial capacity and technological resource constraints have delayed efforts to strengthen the statistical system. Key shortcomings are in the national accounts and fiscal sector. |
| National Accounts: The Instituto Nacional de Estatística (INE) compiles and publishes annual GDP series, using an outdated base year (2008) and insufficient source data. The GDP time series contain several shortcomings, including use of ratios of intermediate consumption to output fixed over time at current prices, and GDP estimates by the expenditure approach with household final consumption expenditure estimated as a residual. The INE continues to work on improvements to source data. The latest estimate of GDP is for calendar year 2018, which is still subject to revision. Quarterly estimates of GDP are not compiled, but AFRITAC Central has started to provide technical assistance for their development. |
| Consumer Price Statistics: INE began to disseminate an updated CPI series (base: 2014 = 100) from January 2016. With the assistance of AFRISTAT, the product basket was changed and the weights were updated, using the results of the household expenditure survey (HES) conducted in 2010. Due to financial constraints, the CPI only covers the capital city. An STA technical assistance mission in fiscal year 2018 reviewed the re-referenced index, performed diagnostics on the entire series, linked the pre- and post-rebased series to produce an analytical series for the IMF database and statistical purposes. The mission also considered INE’s plans for further updates to the CPI upon completion of the new HES, which is underway with World Bank support. |
| Government Finance Statistics: Detailed revenue and expenditure data are compiled and reported to AFR. The main areas that need to be strengthened are: (i) monitoring of expenditures on projects financed by donors; and (ii) financing operations. All project loans (financed by donors) are programmed in the budget, but some are executed independently. The government has requested development partners to help in recording all external financing in the budget. The recording of financing operations and stocks is expected to improve with the expected improvement of debt data management capacity. The 2010–16 government accounts have been finalized and submitted to the Court of Audit. The authorities are working on the 2017 government account. STP joined the AFRITAC Central project in 2017 with plans to develop GFS. TA missions completed in 2017 and 2018 focused on: i) identifying the priorities in terms of the GFS compilation and suggested to the authorities a migration path towards the full adoption of the Government Finance Statistics Manual 2014 (GFSM 2014) principles; and ii) assisting the Ministry of Finance to compile GFS for the budgetary central government for one fiscal year in accordance with the GFSM 2014. A TA mission in March 2019 supported the authorities in the ongoing capacity development program aimed at improving fiscal data compilation (implementing the framework of the Government Finance Statistics Manual 2014 (GFSM 2014). An AFRITAC Central workshop in 2019 focused on the i) selection of data sources for compiling the TOFE; ii) procedures and mechanisms for producing GFS from government entities trial balances and financial statements; and iii) transmission of GFS and public sector debt statistics to STA. |
| Monetary and Financial Statistics: STA missions provided technical assistance on monetary statistics in December 2004, April/May 2006, June 2007 and September 2010. As a result, the accuracy and timeliness of monetary data reported in the standardized report forms (SRF) for the central bank and the other depository corporations’ data improved significantly. The BCSTP reports monthly data to STA for the central bank and other depository corporations (ODCs) on a regular basis, although with some delays for ODCs. The BCSTP monthly trial balance sheet is broadly adequate to compile monetary statistics in line with the Monetary and Financial Statistics Manual and Compilation Guide (MFSMCG). The central bank has begun to collect data from insurance companies that opened in the past few years. The asset sizes of insurance companies remain small enough not to warrant inclusion in monetary statistics at this time. The central bank produces a quarterly FSI table. MCM TA missions on banking supervision have helped expand the coverage of the table and improved the data quality. TA missions in December 2018, May 2019, and November 2019, led by the Central Africa Regional Technical Assistance Center (AFRITAC Central, AFC), focused on supporting the BCSTP in implementing risk-based banking supervision. AFC plans to fund two banking regulation and supervision missions to BCSTP each fiscal year to support the authorities with operational and hands-on technical assistance. BCSTP reports some data and indicators to the Financial Access Survey (FAS), including the two indicators (commercial bank branches per 100,000 adults and ATMs per 100,000 adults) adopted by the UN to monitor Target 8.10 of the Sustainable Development Goals (SDGs). |
| External Sector Statistics (ESS): The BCSTP compiles quarterly balance of payments and international investment position (IIP) statistics consistent with the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6). Data submission to STA is regular, although timeliness should be improved (lags exceed two quarters) and further work is needed to improve coverage, reliability, and level of detail. Response rates to surveys of the nonfinancial sector are low and the net errors and omissions remains very large; the BCSTP is evaluating other data collection methods to be relied on until the survey response rate is deemed adequate. Direct access by compilers to oil trade data is essential to improve the quality of ESS. Procedures for compiling consistent travel data need to be improved, as well as data on direct investment related to oil exploration in Sao Tome and Prince territory. Further work is also needed improve the compilation and consistency of financial transactions and IIP statistics. The most recent technical assistance mission (February 2018) found challenges related to the low response rate to surveys, limited granularity and coverage of the go ods account, and constra ined staff resources. |
| II. Data Standards and Quality |
| São Tomé and Príncipe is a participant in the Fund’s enhanced General Data Dissemination System (eGDDS) and has successfully published critical economic data for surveillance on the National Summary Data Page since May 2019. |
| I. Assessment of Data Adequacy for Surveillance |
| General: Data provision has some shortcomings, particularly in terms of timeliness of data, although it is broadly adequate for surveillance. More effort is needed to enhance macroeconomic statistics collection, particularly for leading indicators of economic activity and tourism data. Financial capacity and technological resource constraints have delayed efforts to strengthen the statistical system. Key shortcomings are in the national accounts and fiscal sector. |
| National Accounts: The Instituto Nacional de Estatística (INE) compiles and publishes annual GDP series, using an outdated base year (2008) and insufficient source data. The GDP time series contain several shortcomings, including use of ratios of intermediate consumption to output fixed over time at current prices, and GDP estimates by the expenditure approach with household final consumption expenditure estimated as a residual. The INE continues to work on improvements to source data. The latest estimate of GDP is for calendar year 2018, which is still subject to revision. Quarterly estimates of GDP are not compiled, but AFRITAC Central has started to provide technical assistance for their development. |
| Consumer Price Statistics: INE began to disseminate an updated CPI series (base: 2014 = 100) from January 2016. With the assistance of AFRISTAT, the product basket was changed and the weights were updated, using the results of the household expenditure survey (HES) conducted in 2010. Due to financial constraints, the CPI only covers the capital city. An STA technical assistance mission in fiscal year 2018 reviewed the re-referenced index, performed diagnostics on the entire series, linked the pre- and post-rebased series to produce an analytical series for the IMF database and statistical purposes. The mission also considered INE’s plans for further updates to the CPI upon completion of the new HES, which is underway with World Bank support. |
| Government Finance Statistics: Detailed revenue and expenditure data are compiled and reported to AFR. The main areas that need to be strengthened are: (i) monitoring of expenditures on projects financed by donors; and (ii) financing operations. All project loans (financed by donors) are programmed in the budget, but some are executed independently. The government has requested development partners to help in recording all external financing in the budget. The recording of financing operations and stocks is expected to improve with the expected improvement of debt data management capacity. The 2010–16 government accounts have been finalized and submitted to the Court of Audit. The authorities are working on the 2017 government account. STP joined the AFRITAC Central project in 2017 with plans to develop GFS. TA missions completed in 2017 and 2018 focused on: i) identifying the priorities in terms of the GFS compilation and suggested to the authorities a migration path towards the full adoption of the Government Finance Statistics Manual 2014 (GFSM 2014) principles; and ii) assisting the Ministry of Finance to compile GFS for the budgetary central government for one fiscal year in accordance with the GFSM 2014. A TA mission in March 2019 supported the authorities in the ongoing capacity development program aimed at improving fiscal data compilation (implementing the framework of the Government Finance Statistics Manual 2014 (GFSM 2014). An AFRITAC Central workshop in 2019 focused on the i) selection of data sources for compiling the TOFE; ii) procedures and mechanisms for producing GFS from government entities trial balances and financial statements; and iii) transmission of GFS and public sector debt statistics to STA. |
| Monetary and Financial Statistics: STA missions provided technical assistance on monetary statistics in December 2004, April/May 2006, June 2007 and September 2010. As a result, the accuracy and timeliness of monetary data reported in the standardized report forms (SRF) for the central bank and the other depository corporations’ data improved significantly. The BCSTP reports monthly data to STA for the central bank and other depository corporations (ODCs) on a regular basis, although with some delays for ODCs. The BCSTP monthly trial balance sheet is broadly adequate to compile monetary statistics in line with the Monetary and Financial Statistics Manual and Compilation Guide (MFSMCG). The central bank has begun to collect data from insurance companies that opened in the past few years. The asset sizes of insurance companies remain small enough not to warrant inclusion in monetary statistics at this time. The central bank produces a quarterly FSI table. MCM TA missions on banking supervision have helped expand the coverage of the table and improved the data quality. TA missions in December 2018, May 2019, and November 2019, led by the Central Africa Regional Technical Assistance Center (AFRITAC Central, AFC), focused on supporting the BCSTP in implementing risk-based banking supervision. AFC plans to fund two banking regulation and supervision missions to BCSTP each fiscal year to support the authorities with operational and hands-on technical assistance. BCSTP reports some data and indicators to the Financial Access Survey (FAS), including the two indicators (commercial bank branches per 100,000 adults and ATMs per 100,000 adults) adopted by the UN to monitor Target 8.10 of the Sustainable Development Goals (SDGs). |
| External Sector Statistics (ESS): The BCSTP compiles quarterly balance of payments and international investment position (IIP) statistics consistent with the sixth edition of the Balance of Payments and International Investment Position Manual (BPM6). Data submission to STA is regular, although timeliness should be improved (lags exceed two quarters) and further work is needed to improve coverage, reliability, and level of detail. Response rates to surveys of the nonfinancial sector are low and the net errors and omissions remains very large; the BCSTP is evaluating other data collection methods to be relied on until the survey response rate is deemed adequate. Direct access by compilers to oil trade data is essential to improve the quality of ESS. Procedures for compiling consistent travel data need to be improved, as well as data on direct investment related to oil exploration in Sao Tome and Prince territory. Further work is also needed improve the compilation and consistency of financial transactions and IIP statistics. The most recent technical assistance mission (February 2018) found challenges related to the low response rate to surveys, limited granularity and coverage of the go ods account, and constra ined staff resources. |
| II. Data Standards and Quality |
| São Tomé and Príncipe is a participant in the Fund’s enhanced General Data Dissemination System (eGDDS) and has successfully published critical economic data for surveillance on the National Summary Data Page since May 2019. |
Democratic Republic of São Tomé and Príncipe: Table of Common Indicators Required for Surveillance
(As of November 30, 2020)
Includes reserve asset pledged or otherwise encumbered as well as net derivative positions.
Central bank’s reference rate.
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.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); not available (NA).
Democratic Republic of São Tomé and Príncipe: Table of Common Indicators Required for Surveillance
(As of November 30, 2020)
| Date of Last Actual Observation | Date Received | Frequency of Data6 | Frequency of Reporting | Frequency of Publication | |
|---|---|---|---|---|---|
| Exchange rates | Nov 2020 | Nov 2020 | M | M | M |
| International reserve assets and reserve liabilities of the monetary authorities1 | Nov 2020 | Nov 2020 | M | M | M |
| International investment position | Q3 2019 | Jan 2020 | Q | Q | Q |
| Reserve/base money | Sep 2020 | Oct 2020 | M | M | M |
| Broad money | Sep 2020 | Oct 2020 | M | M | M |
| Central bank balance sheet | Sep 2020 | Oct 2020 | M | M | M |
| Consolidated balance sheet of the banking system | Sep 2020 | Oct 2020 | M | M | M |
| Interest rates2 | July 2020 | Aug 2020 | M | M | M |
| Consumer Price Index | Sep 2020 | Oct 2020 | M | M | M |
| Revenue, expenditure, balance and composition of financing3 – general government4 | Oct 2020 | Nov 2020 | M | M | M |
| Revenue, expenditure, balance and composition of financing3 – central government | Oct 2020 | Nov 2020 | M | M | M |
| Stocks of central government and central government-guaranteed debt5 | Q2 2020 | Oct 2020 | M | Q | Q |
| External current account balance | Q2 2020 | Oct 2020 | Q | Q | Q |
| Exports and imports of goods | Q2 2020 | Oct 2020 | Q | Q | Q |
| GDP/GNP6 | 2019 | Mar 2020 | A | A | A |
| Gross external debt | Q2 2020 | Oct 2020 | M | Q | Q |
Includes reserve asset pledged or otherwise encumbered as well as net derivative positions.
Central bank’s reference rate.
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.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); not available (NA).
Democratic Republic of São Tomé and Príncipe: Table of Common Indicators Required for Surveillance
(As of November 30, 2020)
| Date of Last Actual Observation | Date Received | Frequency of Data6 | Frequency of Reporting | Frequency of Publication | |
|---|---|---|---|---|---|
| Exchange rates | Nov 2020 | Nov 2020 | M | M | M |
| International reserve assets and reserve liabilities of the monetary authorities1 | Nov 2020 | Nov 2020 | M | M | M |
| International investment position | Q3 2019 | Jan 2020 | Q | Q | Q |
| Reserve/base money | Sep 2020 | Oct 2020 | M | M | M |
| Broad money | Sep 2020 | Oct 2020 | M | M | M |
| Central bank balance sheet | Sep 2020 | Oct 2020 | M | M | M |
| Consolidated balance sheet of the banking system | Sep 2020 | Oct 2020 | M | M | M |
| Interest rates2 | July 2020 | Aug 2020 | M | M | M |
| Consumer Price Index | Sep 2020 | Oct 2020 | M | M | M |
| Revenue, expenditure, balance and composition of financing3 – general government4 | Oct 2020 | Nov 2020 | M | M | M |
| Revenue, expenditure, balance and composition of financing3 – central government | Oct 2020 | Nov 2020 | M | M | M |
| Stocks of central government and central government-guaranteed debt5 | Q2 2020 | Oct 2020 | M | Q | Q |
| External current account balance | Q2 2020 | Oct 2020 | Q | Q | Q |
| Exports and imports of goods | Q2 2020 | Oct 2020 | Q | Q | Q |
| GDP/GNP6 | 2019 | Mar 2020 | A | A | A |
| Gross external debt | Q2 2020 | Oct 2020 | M | Q | Q |
Includes reserve asset pledged or otherwise encumbered as well as net derivative positions.
Central bank’s reference rate.
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.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); not available (NA).