Abstract
BELIZE
Title page
BELIZE
STAFF REPORT FOR THE 2021 ARTICLE IV CONSULTATION—INFORMATIONAL ANNEX
May 18, 2021
Prepared By
Western Hemisphere Department
Contents
FUND RELATIONS
COLLABORATIONS WITH OTHER INTERNATIONAL FINANCIAL INSTITUTIONS STATISTICAL ISSUES
Fund Relations
(As of February 28, 2021)
Membership status. Joined: March 16, 1982.
| General Resources Account | SDR Million | Percent Quota |
| Quota | 26.70 | 100.00 |
| Fund holdings of currency (Exchange Rate) | 20.49 | 76.73 |
| Reserve Tranche Position | 6.21 | 23.27 |
| General Resources Account | SDR Million | Percent Quota |
| Quota | 26.70 | 100.00 |
| Fund holdings of currency (Exchange Rate) | 20.49 | 76.73 |
| Reserve Tranche Position | 6.21 | 23.27 |
| SDR Department | SDR Million | Percent Allocation |
| Net cumulative allocation | 17.89 | 100.00 |
| Holdings | 20.23 | 113.04 |
| SDR Department | SDR Million | Percent Allocation |
| Net cumulative allocation | 17.89 | 100.00 |
| Holdings | 20.23 | 113.04 |
Outstanding Purchases and Loans
None
Latest Financial Arrangements
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
| Stand-By | Dec. 03, 1984 | June 1, 1986 | 7.13 | 7.13 |
| Type | Date of Arrangement | Expiration Date | Amount Approved (SDR Million) | Amount Drawn (SDR Million) |
| Stand-By | Dec. 03, 1984 | June 1, 1986 | 7.13 | 7.13 |
Projected Payments to the Fund (in SDR Million)1
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 | |||||
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Principal | |||||
| Charges/Interest | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
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 | |||||
| 2018 | 2019 | 2020 | 2021 | 2022 | |
| Principal | |||||
| Charges/Interest | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
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.
Implementation of HIPC Initiative: Not Applicable
Implementation of Multilateral Debt Relief Initiative (MDRI): Not Applicable
Implementation of Post-Catastrophe Debt Relief (PCDR): Not Applicable
Exchange Rate Arrangement: Since 1976, the Belize dollar has been pegged to the U.S. dollar, the intervention currency, at the rate of BZ$ 2 per U.S. dollar. Belize has accepted the obligations of Article VIII, Sections 2, 3, and 4. The exchange regime is free of restrictions and multiple currency practices.
Last Article IV Consultation: The last Article IV consultation was concluded by the Executive Board on December 9, 2019 (IMF Country Report No. 19/364). Belize is on the standard 12-month consultation cycle.
Recent Technical Assistance:
FAD advised on developing regulations and treasury instructions to support the Public Financial Management (PFM) law in June 2017.
FAD advised on building capacity in data analysis and cross-matching in July 2017.
FAD advised on draft PFM legislation in September 2017.
FAD advised on developing a framework to establish a joint Large Taxpayer Office (LTO) in September 2017.
MCM-LEG advised on jurisdictional review of the foreign exchange system in December 2017.
FAD advised on establishing a data analytics function in tax administration in January 2018.
FAD advised on reviewing and selecting a robust alternative IT system to replace SIGTAS for Tax Administration in January 2018.
STA advised on financial soundness indicators in January 2019.
MCM advised on contingency planning in March 2019.
MCM advised on cyber risk supervision framework in April 2019.
FAD advised on tax and customs administration reform in April 2019.
MCM advised on banking supervision and regulation in May 2019.
FAD advised on mainstreaming international taxation in August 2019.
FAD conducted a public investment management assessment (PIMA) in January 2020.
FAD advised on tax reform policy options in May 2020.
LEG advised on income taxation in May 2020 • FAD advised on tax administration in April 2021. • MCM advised on bank resolution in April 2021.
CARTAC Technical Assistance to Belize in FY2020 and FY2021
In FY2020 and FY2021, CARTAC delivered approximately 37 field person weeks of TA to Belize in customs and tax administration, public financial management, statistics, and financial markets.
| Description | Start Date | End Date |
|---|---|---|
| Customs and Tax Administration | ||
| HR and Manpower Planning for Tax Administration Reform | 06/17/2019 | 06/21/2019 |
| Strengthening post clearance audit capacity | 10/07/2019 | 10/18/2019 |
| TA in Risk Management to Customs | 11/04/2019 | 11/08/2019 |
| Developing a Strategic Management Framework | 11/25/2019 | 11/29/2019 |
| Develop an Advanced Rulings Regime | 02/03/2020 | 02/14/2020 |
| Developing a Large Taxpayer Program | 04/20/2020 | 04/30/2020 |
| Risk management and post clearance audit | 10/12/2020 | 10/21/2020 |
| Strengthening audit capacity (training) | 01/11/2021 | 01/23/2021 |
| Strengthening risk management capacity | 02/15/2021 | 02/24/2021 |
| Public Financial Management (PFM) | ||
| Assisting with fiscal reporting challenges when transitioning to IPSAS | 08/04/2020 | 08/07/2020 |
| Review of Belize’s PFM legislation | 04/06/2021 | 04/15/2021 |
| Providing internal audit support | 03/26/2021 | 03/31/2021 |
| Statistics | ||
| Consumer and Producer Price Indices | 10/7/2019 | 10/18/2019 |
| National account – review of rebased GDP estimates | 06/15/2020 | 07/03/2020 |
| National accounts – back casting GDP expenditure measure | 07/13/2020 | 07/17/2020 |
| Financial Markets | ||
| Management of Credit Risk Supervisory Process and Conducting Credit Risk Reviews | 7/8/2019 | 7/12/2019 |
| Risk Based Supervision and Other Supervisory Processes | 12/2/2019 | 12/6/2019 |
| Drafting of New Securities Legislation and Regulations | 10/1/2019 | 10/20/2019 |
| Drafting of New Securities Legislation and Regulations | 12/9/2019 | 1/2/2020 |
| Implementation Basel II/III | 1/20/2020 | 1/24/2020 |
| Drafting of New Securities Legislation and Regulations | 2/3/2020 | 2/17/2020 |
| Develop a Macroprudential Framework | 02/24/2020 | 02/28/2020 |
| Financial stability – Monitoring and detection of systemic risks | 02/08/2021 | 02/21/2021 |
| Description | Start Date | End Date |
|---|---|---|
| Customs and Tax Administration | ||
| HR and Manpower Planning for Tax Administration Reform | 06/17/2019 | 06/21/2019 |
| Strengthening post clearance audit capacity | 10/07/2019 | 10/18/2019 |
| TA in Risk Management to Customs | 11/04/2019 | 11/08/2019 |
| Developing a Strategic Management Framework | 11/25/2019 | 11/29/2019 |
| Develop an Advanced Rulings Regime | 02/03/2020 | 02/14/2020 |
| Developing a Large Taxpayer Program | 04/20/2020 | 04/30/2020 |
| Risk management and post clearance audit | 10/12/2020 | 10/21/2020 |
| Strengthening audit capacity (training) | 01/11/2021 | 01/23/2021 |
| Strengthening risk management capacity | 02/15/2021 | 02/24/2021 |
| Public Financial Management (PFM) | ||
| Assisting with fiscal reporting challenges when transitioning to IPSAS | 08/04/2020 | 08/07/2020 |
| Review of Belize’s PFM legislation | 04/06/2021 | 04/15/2021 |
| Providing internal audit support | 03/26/2021 | 03/31/2021 |
| Statistics | ||
| Consumer and Producer Price Indices | 10/7/2019 | 10/18/2019 |
| National account – review of rebased GDP estimates | 06/15/2020 | 07/03/2020 |
| National accounts – back casting GDP expenditure measure | 07/13/2020 | 07/17/2020 |
| Financial Markets | ||
| Management of Credit Risk Supervisory Process and Conducting Credit Risk Reviews | 7/8/2019 | 7/12/2019 |
| Risk Based Supervision and Other Supervisory Processes | 12/2/2019 | 12/6/2019 |
| Drafting of New Securities Legislation and Regulations | 10/1/2019 | 10/20/2019 |
| Drafting of New Securities Legislation and Regulations | 12/9/2019 | 1/2/2020 |
| Implementation Basel II/III | 1/20/2020 | 1/24/2020 |
| Drafting of New Securities Legislation and Regulations | 2/3/2020 | 2/17/2020 |
| Develop a Macroprudential Framework | 02/24/2020 | 02/28/2020 |
| Financial stability – Monitoring and detection of systemic risks | 02/08/2021 | 02/21/2021 |
Collaborations with other International Financial Institutions
As of March 31, 2021, Belize has collaborations with The World Bank Group, Inter-American Development Bank, and Caribbean Development Bank.
Further information can be obtained from the following hyperlinks.
| International Financial Institution | Hyperlink |
|---|---|
| The World Bank Group | http://www.worldbank.org/en/news/infographic/2017/05/30/wbg-country-partnership-strategy-belize |
| Inter-American Development Bank | https://www.iadb.org/en/countries/belize/overview |
| Caribbean Development Bank | http://www.caribank.org/about-cdb/member-countries/regional-members/belize |
| International Financial Institution | Hyperlink |
|---|---|
| The World Bank Group | http://www.worldbank.org/en/news/infographic/2017/05/30/wbg-country-partnership-strategy-belize |
| Inter-American Development Bank | https://www.iadb.org/en/countries/belize/overview |
| Caribbean Development Bank | http://www.caribank.org/about-cdb/member-countries/regional-members/belize |
Statistical Issues
(As of April 19, 2021)
| I. Assessment of Data Adequacy for Surveillance |
| General: Data provision has some shortcomings but is broadly adequate for surveillance. |
| Real sector: The Statistical Institute of Belize (SIB) publishes several real sector statistics (GDP, CPI, population and labor force/employment statistics, social indicators). The timeliness and frequency of the statistics is generally adequate for surveillance- except for the labor force statistics released twice a year, and poverty and literacy-related social indicators available with large lags. There is also room to strengthen the compilation of GDP on an expenditure basis, which is available at annual frequency and with a significant lag. The SIB is currently rebasing and updating the methodology used to compile the national accounts, which is expected to result in an increase in GDP relative to the old series. The authorities expect to release the new series in in 2022. |
| Fiscal accounts: Data on the consolidated operations of the public sector are unavailable. Priorities for the period ahead include preparing a comprehensive list of institutions that comprise the central government, general government, and the public sector including extra budgetary units. The Social Security Board is not treated as part of the general government. Instead, the Central Bank classifies the entity as other non-financial public corporation and includes its claims (deposits) on the banking system as part of broad money. Also, difficulties persist in the compilation of capital expenditure as several Capital II (government-funded capital and project expenditures) items that started life as fixed-term project contributions have become permanent funding allocations. In addition, the current accounting practices follow neither a cash basis nor an accrual basis of accounting, which contributes to an inconsistent accounting and reporting of assets, liabilities, revenues, and expenses. Finally, data on domestic debt and domestic debt service needs to be improved. |
| Monetary and financial statistics: The monetary and financial statistics (MFS) are reported by CBB in the standardized report forms (SRFs) 1SR for central bank and 2SR for other depository corporations for publication in the International Financial Statistics with a one-month lag. |
| Financial soundness indicators: Individual banks’ financial soundness indicators (FSI) are available on quarterly basis. However, there is limited data on non-bank financial institutions, especially the offshore sector. Forbearance measures introduced in 2020 makes it difficult to compare FSIs to previous years. Compilation of core and encouraged FSIs and its reporting by CBB is expected to start later in 2021. |
| Financial access survey: Belize reports data on several series indicators of 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). |
| Balance of payments: The SIB publishes trade data at monthly frequency on its website with a one-month lag and monthly press releases, which discuss key trends and driving factors. The data, however, do not cover services, which constrains the assessment of the overall external position as tourism revenue represents a large share of total exports. The usefulness of the dataset for surveillance could be improved if it is expanded to cover also trade in services and the international investment position. The Central Bank of Belize is responsible for producing the Balance of Payments, which is compiled on a quarterly and annual basis in BPM6 format. Efforts should be made to also improve the timelines of the Balance of Payments data. |
| II. Data Standards and Quality |
| Belize began participating in the IMF’s General Data Dissemination System (now the enhanced GDDS) in 2006 providing only metadata. However, it has not implemented the e-GDDS as yet, which would imply dissemination of its data on a National Summary Data Page. No data ROSC is available. |
| I. Assessment of Data Adequacy for Surveillance |
| General: Data provision has some shortcomings but is broadly adequate for surveillance. |
| Real sector: The Statistical Institute of Belize (SIB) publishes several real sector statistics (GDP, CPI, population and labor force/employment statistics, social indicators). The timeliness and frequency of the statistics is generally adequate for surveillance- except for the labor force statistics released twice a year, and poverty and literacy-related social indicators available with large lags. There is also room to strengthen the compilation of GDP on an expenditure basis, which is available at annual frequency and with a significant lag. The SIB is currently rebasing and updating the methodology used to compile the national accounts, which is expected to result in an increase in GDP relative to the old series. The authorities expect to release the new series in in 2022. |
| Fiscal accounts: Data on the consolidated operations of the public sector are unavailable. Priorities for the period ahead include preparing a comprehensive list of institutions that comprise the central government, general government, and the public sector including extra budgetary units. The Social Security Board is not treated as part of the general government. Instead, the Central Bank classifies the entity as other non-financial public corporation and includes its claims (deposits) on the banking system as part of broad money. Also, difficulties persist in the compilation of capital expenditure as several Capital II (government-funded capital and project expenditures) items that started life as fixed-term project contributions have become permanent funding allocations. In addition, the current accounting practices follow neither a cash basis nor an accrual basis of accounting, which contributes to an inconsistent accounting and reporting of assets, liabilities, revenues, and expenses. Finally, data on domestic debt and domestic debt service needs to be improved. |
| Monetary and financial statistics: The monetary and financial statistics (MFS) are reported by CBB in the standardized report forms (SRFs) 1SR for central bank and 2SR for other depository corporations for publication in the International Financial Statistics with a one-month lag. |
| Financial soundness indicators: Individual banks’ financial soundness indicators (FSI) are available on quarterly basis. However, there is limited data on non-bank financial institutions, especially the offshore sector. Forbearance measures introduced in 2020 makes it difficult to compare FSIs to previous years. Compilation of core and encouraged FSIs and its reporting by CBB is expected to start later in 2021. |
| Financial access survey: Belize reports data on several series indicators of 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). |
| Balance of payments: The SIB publishes trade data at monthly frequency on its website with a one-month lag and monthly press releases, which discuss key trends and driving factors. The data, however, do not cover services, which constrains the assessment of the overall external position as tourism revenue represents a large share of total exports. The usefulness of the dataset for surveillance could be improved if it is expanded to cover also trade in services and the international investment position. The Central Bank of Belize is responsible for producing the Balance of Payments, which is compiled on a quarterly and annual basis in BPM6 format. Efforts should be made to also improve the timelines of the Balance of Payments data. |
| II. Data Standards and Quality |
| Belize began participating in the IMF’s General Data Dissemination System (now the enhanced GDDS) in 2006 providing only metadata. However, it has not implemented the e-GDDS as yet, which would imply dissemination of its data on a National Summary Data Page. No data ROSC is available. |
Belize: Table of Common Indicators Required for Surveillance
(As of April 19, 2021)
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should include short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, and rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic nonbank financing.
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 a vis nonresidents.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I), Not Available (NA).
Belize: Table of Common Indicators Required for Surveillance
(As of April 19, 2021)
| Date of Latest Observation | Date Received | Frequency of Data 7/ | Frequency of Reporting 7/ | Frequency of Publication 7/ | |
|---|---|---|---|---|---|
| Exchange Rates | 3/31/2021 | 3/31/2021 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities 1/ | 3/10/2021 | 3/19/2021 | W | W | W |
| Reserve/Base Money | 3/10/2021 | 3/19/2021 | W | W | W |
| Broad Money | 3/10/2021 | 3/19/2021 | W | W | W |
| Central Bank Balance Sheet | 2/28/2021 | 3/11/2021 | M | M | M |
| Consolidated Balance Sheet of the Banking System | 2/28/2021 | 4/1/2021 | M | M | M |
| Interest Rates 2/ | 2/28/2021 | 4/1/2021 | M | M | M |
| Consumer Price Index | 2021M3 | 4/1/2021 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing – Central Government 3/ | 9/30/2020 | 12/14/2020 | Q | Q | Q |
| Stocks of Central Government and Central | |||||
| Government-Guaranteed Debt 4/5/ | 1/31/2021 | 3/15/2021 | M | M | M |
| External Current Account Balance | 2020Q3 | 3/1/2021 | Q | Q | Q |
| Exports and Imports of Goods and Services | 2020Q3 | 3/1/2021 | Q | Q | Q |
| GDP/GNP | 2020Q4 | 2/24/2021 | Q | Q | Q |
| Gross External Debt (Central Government only) | 1/31/2021 | 3/15/2021 | A, M | A, M | A, M |
| International Investment Position 6/ | NA | NA | NA | NA | NA |
| Revenue, Expenditure, Balance and Composition of Financing – General Government | NA | NA | NA | NA | NA |
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should include short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, and rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic nonbank financing.
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 a vis nonresidents.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I), Not Available (NA).
Belize: Table of Common Indicators Required for Surveillance
(As of April 19, 2021)
| Date of Latest Observation | Date Received | Frequency of Data 7/ | Frequency of Reporting 7/ | Frequency of Publication 7/ | |
|---|---|---|---|---|---|
| Exchange Rates | 3/31/2021 | 3/31/2021 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities 1/ | 3/10/2021 | 3/19/2021 | W | W | W |
| Reserve/Base Money | 3/10/2021 | 3/19/2021 | W | W | W |
| Broad Money | 3/10/2021 | 3/19/2021 | W | W | W |
| Central Bank Balance Sheet | 2/28/2021 | 3/11/2021 | M | M | M |
| Consolidated Balance Sheet of the Banking System | 2/28/2021 | 4/1/2021 | M | M | M |
| Interest Rates 2/ | 2/28/2021 | 4/1/2021 | M | M | M |
| Consumer Price Index | 2021M3 | 4/1/2021 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing – Central Government 3/ | 9/30/2020 | 12/14/2020 | Q | Q | Q |
| Stocks of Central Government and Central | |||||
| Government-Guaranteed Debt 4/5/ | 1/31/2021 | 3/15/2021 | M | M | M |
| External Current Account Balance | 2020Q3 | 3/1/2021 | Q | Q | Q |
| Exports and Imports of Goods and Services | 2020Q3 | 3/1/2021 | Q | Q | Q |
| GDP/GNP | 2020Q4 | 2/24/2021 | Q | Q | Q |
| Gross External Debt (Central Government only) | 1/31/2021 | 3/15/2021 | A, M | A, M | A, M |
| International Investment Position 6/ | NA | NA | NA | NA | NA |
| Revenue, Expenditure, Balance and Composition of Financing – General Government | NA | NA | NA | NA | NA |
Any reserve assets that are pledged or otherwise encumbered should be specified separately. Also, data should include short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.
Both market-based and officially-determined, including discount rates, money market rates, and rates on treasury bills, notes, and bonds.
Foreign, domestic bank, and domestic nonbank financing.
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 a vis nonresidents.
Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A), Irregular (I), Not Available (NA).