International Monetary Fund. Legal Dept., International Monetary Fund. Monetary and Capital Markets Department, and International Monetary Fund. Strategy, Policy, & Review Department
This paper undertakes a comprehensive review of the Fund’s sovereign arrears policies. Staff assesses that the Fund’s Lending into Arrears to Private Creditors (LIA) policy (established in 1989 and last reviewed in 2002) remains broadly appropriate, while recommending some improvements given the experience gained over the last 20 years. Staff also sees merit in codifying the existing practice guiding the Fund in preemptive debt restructurings into a Fund policy, together with an amendment focusing on debt transparency. Given limited experience with the application of the LIOA policy (established in 2015), staff does not propose any amendments but only one restatement confirming current practice. Given recent developments in the international creditor community, staff proposes refining the Fund’s arrears policies with respect to multilateral creditors. Finally, recent developments raise questions about the perimeter between official bilateral and private claims, with significant implications for the Fund’s arrears policies.
The fallout from the COVID-19 crisis has hit the Maltese economy hard, particularly its large tourism sector. Using fiscal buffers accumulated prior to the pandemic, the authorities have taken swift actions to support households, businesses, and the healthcare system. With the rapid rollout of COVID-19 vaccine, the economy has reopened for the summer tourism season. While the outlook is surrounded by a high degree of uncertainty, the Maltese economy is expected to rebound by 5¾ percent this year, up from -7¾ percent in 2020. The financial system has remained stable. In late June 2021, the Financial Action Task Force (FATF) put Malta under increased monitoring due to concerns about effectiveness of its anti-money laundering and combatting the financing of terrorism (AML/CFT) framework.
1. The COVID-19 shock underscores the need to nowcast economic activity. Nowcasting is the prediction of the present, the very near future and the very recent past, which is a combination of two terms, now and forecasting (Giannone and others. 2008). Nowcasting is useful since key statistics on the present state of the economy (e.g., GDP) are available with a lag and at a low frequency. During times of heightened uncertainty and stress like the COVID-19 crisis, such a timely assessment becomes more urgent. To obtain an “early estimate” of the current economic situation before the official figures are released, we can exploit data published earlier and possibly at higher frequency.
International Monetary Fund. Finance Dept. and International Monetary Fund. Statistics Dept.
1. The Board of Governors has called on the Executive Board to work expeditiously on the Fifteenth General Review of Quotas (hereafter the 15th Review) in line with existing Executive Board understandings and guidance provided by the International Monetary and Financial Committee (IMFC) on October 8, 2016.1 As set out in the Board of Governors’ Resolution, this work should be completed by the Spring Meetings of 2019, and no later than the Annual Meetings of 2019. At its October 8 meeting, the IMFC reaffirmed its commitment to a strong, quota-based, and adequately resourced IMF to preserve its role at the center of the global financial safety net. The IMFC further stated that it was committed to concluding the 15th Review and agreeing on a new quota formula as a basis for a realignment of quota shares to result in increased shares for dynamic economies in line with their relative positions in the world economy and hence likely in the share of emerging market and developing countries (EMDCs) as a whole, while protecting the voice and representation of the poorest members.2