An International Monetary Fund (IMF) staff mission, led by Mr. John Nelmes, visited Colombo June 4 - 15 to discuss economic developments and policies. The team met with government and Central Bank officials, as well as representatives of civil society and the private sector. The team issued the following statement today at the conclusion of its visit:
Dienstag, 19. Juni 2012
Statement by the 2012 Article IV Consultation Mission to the Russian Federation
A staff team from the International Monetary Fund (IMF), headed by Mr. Antonio Spilimbergo, visited Moscow during May 31 - June 13 to hold discussions for the 2012 Article IV consultation.1 The team met with Finance Minister Anton Siluanov, Central Bank of Russia (CBR) Governor Sergei Ignatiev, other senior officials, and representatives from the private sector, academia, and think tanks. At the conclusion of the visit, Mr. Spilimbergo issued the following statement:
Statement at the Conclusion of the 2012 Article IV Consultation Mission to Korea
An International Monetary Fund (IMF) mission, led by Mr. Hoe Ee Khor, visited Seoul during May 30 – June 12 to conduct the 2012 Article IV consultation discussions. At the conclusion of the mission, the team issued the following statement:
“After a strong rebound in 2010, the Korean economy moderated in 2011 and into 2012 in line with global developments. Reflecting the weakening global economic outlook, Korea’s growth is likely to be weaker than the 3.5 percent in our baseline forecast and we expect growth for this year to be reduced by about ¼ percentage point. Activity in the second half of 2012 is expected to expand at a moderate pace supported by Korea’s competitive export sector and the recently concluded EU and US free-trade agreements. On the domestic side, facilities investment is expected to recover, while consumption should be boosted by stronger wage growth.
Statement at the Conclusion of the 2012 Article IV Consultation Mission to Korea
An International Monetary Fund (IMF) mission, led by Mr. Hoe Ee Khor, visited Seoul during May 30 – June 12 to conduct the 2012 Article IV consultation discussions. At the conclusion of the mission, the team issued the following statement:
“After a strong rebound in 2010, the Korean economy moderated in 2011 and into 2012 in line with global developments. Reflecting the weakening global economic outlook, Korea’s growth is likely to be weaker than the 3.5 percent in our baseline forecast and we expect growth for this year to be reduced by about ¼ percentage point. Activity in the second half of 2012 is expected to expand at a moderate pace supported by Korea’s competitive export sector and the recently concluded EU and US free-trade agreements. On the domestic side, facilities investment is expected to recover, while consumption should be boosted by stronger wage growth.
2012 Article IV Consultation with Japan Concluding Statement of the IMF Mission
The Japanese economy has shown remarkable resilience and adaptability in the aftermath of the Great East Japan earthquake and is now experiencing a recovery. Risks, however, have shifted decidedly to the downside, with the turmoil in Europe intensifying and other advanced and key emerging market economies showing signs of slowing. Moreover, to address the longstanding challenges of high public debt, low growth, and deflation, Japan needs to move forcefully on many fronts to take advantage of synergies among policies. The immediate priority is passage of the current tax and social security reform, which would bolster confidence and help create a more conducive environment for monetary easing. It would also help maintain financial sector stability, given increased fiscal and financial sector linkages. An exit from deflation and accelerated structural reforms would raise growth and support fiscal adjustment. This statement summarizes the findings of the Article IV consultation and the recent Financial Sector Assessment Program (FSAP) Update.
Finland—2012 Article IV Consultation Concluding Statement
Despite strong fundamentals and a track record of good policies, Finland’s near-term outlook is threatened by intensifying external strains. Economic activity in the euro area is expected to weaken markedly in 2012 on the back of financial sector deleveraging and fiscal consolidation in several European countries. Spillovers to Finland could be significant given its highly open economy and trade and financial linkages with Europe. Thus, the key immediate policy concern is to cushion the downturn, including through a nimble fiscal policy, while mitigating any lingering vulnerabilities. Financial integration and complexity have created new risks and test supervisory abilities, not least in light of Finland’s close linkages with other Nordic financial markets. In the longer run, Finland faces challenges from a rapidly aging population, slowing productivity growth, and eroding competitiveness.
Statement at the Conclusion of an IMF Staff Visit to Turkey
An International Monetary Fund (IMF) mission, headed by Ernesto Ramirez Rigo, visited Istanbul and Ankara on May 31–June 6, 2012 to discuss recent economic developments and preparations for the 2012 Article IV consultation discussions. The team met with senior officials and staff at the Treasury, Ministry of Finance, Central Bank, and Banking Regulation and Supervision Agency, as well as representatives of the business community.
IMF Completes the Fifth Review Under the Extended Fund Facility (EFF) for Seychelles
The Executive Board of the International Monetary Fund (IMF) has completed the fifth review under the three-year Extended Arrangement (EFF) for the Seychelles. The completion of the review enables a disbursement of SDR 2.64 million (about US$5.6 million). The Board's decision was taken on a lapse of time basis.1 The arrangement became effective on December 23, 2009, in the amount of SDR 19.8 million (see Press Release No. 09/472).
IMF Work Program Focuses on Restoring Stability, Growth, and Jobs
On May 29, 2012, the Executive Board of the International Monetary Fund (IMF) considered the IMF's bi-annual work program through November 2012. Recent developments point to the continued fragility of the world economy and the risks of renewed stresses with potentially systemic consequences. In this context, the work program focuses on issues to help restore global economic stability and confidence and to rekindle growth and job creation.
IMF Executive Board Discusses Implementation Plan in Response
On May 25, 2012, the Executive Board of the International Monetary Fund (IMF) discussed the implementation plan in response to board-endorsed recommendations for the Independent Evaluation Office (IEO) evaluation of IMF performance in the run-up to the financial and economic crisis.
IMF Mission and Malawi Authorities Reach Staff-Level Understandings on a New ECF-Supported Program
A team from the International Monetary Fund (IMF) visited Lilongwe during May 23-June 6, 2012 for discussions with Malawi’s new government, in the context of the 2012 Article IV consultation and the authorities’ intention to request a new three year arrangement under the IMF’s Extended Credit Facility (ECF)1. The mission was received by Her Excellency President Joyce Banda, and held discussions with Minister Ken Lipenga (Finance), Governor Charles Chuka (Reserve Bank of Malawi), Deputy Minister Khwauli Msiska (Economic Planning and Development), Secretary to the Treasury Randson Mwadiwa, and other senior government and RBM officials, members of the Budget and Finance Committee of the National Assembly, as well as with representatives of Malawi’s international development partners, civil society, and the banking and business communities. The mission is grateful to the authorities for the constructive spirit in which discussions were held and for their warm hospitality.
IMF Executive Board Completes Fourth Review Under the Policy Support Instrument for Uganda
The Executive Board of the International Monetary Fund (IMF) has completed the fourth review under a three-year Policy Support Instrument (PSI) for Uganda. The Executive Board’s decision was taken on a lapse of time basis and enters into effect today1. The PSI for Uganda was approved by the IMF’s Executive Board on May 12, 2010 (see Press Release No. 10/195). The IMF’s framework for PSIs is designed for low-income countries that may not need IMF financial assistance, but still seek close cooperation with the IMF in preparation and endorsement of their policy frameworks. PSI-supported programs are based on country-owned poverty reduction strategies adopted in a participatory process involving civil society and development partners.
IMF Article IV Mission, Concluding Statement of the IMF Mission, May 29 to June 5, 2012
Much progress has been made in addressing Tuvalu’s economic challenges. The government has taken difficult decisions regarding spending, tax compliance is rising, and the new Policy Reform Matrix (PRM) process should streamline the process by which donors help the government reach its own priorities. The banking system is moving toward health, and public enterprises’ operations have shown improvement. All these steps are commendable, but a significant agenda remains to be implemented. To secure these gains and return Tuvalu to high growth, the government should build on these successes.
Statement by the EC, ECB, and IMF on the Fourth Review Mission to Portugal
The program remains on track amidst continued challenges.The authorities are implementing the reform policies broadly as planned and external adjustment is proceeding faster than expected. At the same time, rising unemployment has emerged as a pressing concern. The need to combine fiscal consolidation with deleveraging private balance sheets while restoring external cost competitiveness remains a difficult balancing act. But the authorities are determined to stay the course of adjustment and reform. Broad-based political support and social consensus is a key contribution to a successful adjustment.
Sonntag, 3. Juni 2012
IMF Managing Director Welcomes Spain's Measures to Strengthen the Banking Sector
Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement on the measures announced by the Spanish authorities to strengthen the country’s banking sector:
“I strongly welcome the comprehensive set of measures announced today by the Spanish authorities. These measures offer an effective response to the vulnerabilities of the banking system while appropriately providing greater transparency and differentiating the needs of the various financial institutions. We endorse the authorities’ approach of significantly raising provisions as a cushion against potential future losses, of providing a government backstop to those institutions that may need additional time, of restructuring and resolving the banks with state participation, and of implementing an independent diagnostic review of all banks’ portfolios to frame appropriately
Arab Oil Importers Under Strain
A Commentary by Masood Ahmed, Director, Middle East and Central Asia Department, International Monetary Fund
Published in International Economic Bulletin, Carnegie Endowment for International Peace, May 24, 2012
The Middle East and North Africa region (MENA) is facing extraordinary challenges in the wake of the Arab Spring. The Arab countries in transition (mostly oil importers) are straining to manage political change, urgent social demands, and an adverse external environment—factors that have combined to increase the near-term risks to macroeconomic stability. These risks were also present in 2011, but now many governments have narrower margins for policy maneuver, having drawn down their foreign exchange and fiscal buffers over the past year. To manage the risks, countries in transition will need to rely on support from the international community.
IMF Executive Board Approves Three-Year, US$28.3 Million Extended Credit Facility Arrangement and US$14.2 Million Disbursement for The Gambia
The Executive Board of the International Monetary Fund (IMF) today approved a new arrangement for The Gambia under the Extended Credit Facility (ECF) in an amount equivalent to SDR 18.66 million (about US$28.3 million). The Board’s decision will enable an immediate disbursement equivalent to SDR 9.33million (about US$14.2 million).
The authorities’ program is aimed at meeting an acute balance of payments need arising from the recent crop failure due to drought, and helping to catalyze support from development partners for The Gambia’s new poverty reduction strategy, theProgramme for Accelerated Growth and Employment (PAGE). Over the medium term, the authorities seek to ease the government’s heavy debt burden through fiscal adjustment, while implementing a strong economic reform agenda in support of thePAGE.
Slovak Republic—Concluding Statement for the 2012 Article IV Consultation Mission
Slovakia enjoyed one of the strongest recoveries in the region, reflecting its sound economic fundamentals and prudent policies. However, the economic outlook is clouded by spillovers from the euro area crisis. Policies should focus on mitigating risks and promoting growth. The government’s commitment to fiscal consolidation is welcome, but durable adjustment will require complementary reforms. Continued strong financial oversight is essential. Boosting employment is a top priority. The government’s economic program now being elaborated provides an opportunity to put in place the needed reforms to promote vibrant and inclusive growth.
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