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International Monetary Fund. African Dept.
Botswana entered the COVID-19 crisis with larger buffers than most countries, but significantly less than in the past. The country was contending with structural challenges, persistent negative external shocks and delays in adjustment that had already caused a significant weakening of international reserves coverage and the fiscal position amid high unemployment. The pandemic exacerbated these challenges causing a sharp GDP contraction, among the strongest in SSA and a widening in the current account deficit. Foreign exchange reserves dropped further, though still remaining well above adequate levels. The fiscal deficit widened significantly as the government sought to counter the economic impact of the COVID-19 crisis, and implemented a sizeable public wage increase agreed in 2019. The deficit was financed partially by drawing down on the Government Investment Account.
International Monetary Fund. African Dept.

monetary operations. In 2019, Bank of Botswana (BoB) introduced Primary Reserve Requirement Averaging (PRRA), which has proved to be a very effective liquidity management tool for most commercial banks, while freeing up additional resources for productive lending. Effective October 30, 2020, Bo B also reintroduced the 3-month Treasury Bill in place of the 91-day Ban k of Botswana Certificate to support the Government treasury bill market. The authorities also plan to implement additional reforms to the monetary operations framework including changes to the policy rate

Dalia Marin, Mr. Haizhou Huang, and Chenggang Xu
This paper provides a unified analysis for the onset of the 1998 financial crisis and the strong economic recovery afterward in Russia and other former Soviet Union countries. Before the crisis a banking failure arose owing to the coexistence of a lemons credit market and high government borrowing. In a lemons credit market low credit risk firms switched from bank to nonbank finance, including trade credits and barter trade, generating an externality on banks' interest rates. The collapse of the treasury bills market in the financial crisis triggered a change in banks' lending behavior, providing initial conditions for banking development.
Dalia Marin, Mr. Haizhou Huang, and Chenggang Xu

, Paris, 1997-1998. 6 According to the interfax news agency the share of barter in sales dropped as well in Ukraine from 33 percent in 1999 to 17 percent in 2000, and to 8 percent in 2001. The Russian Economic Barometer estimates that noncash payments have dropped to below 10 percent at the beginning of 2003. 7 Due to the collapse of the government treasury bills market, the large exposure of portfolios of commercial banks to this market made many banks insolvent. This has led to a consolidation and concentration in the banking sector with 3 state banks (of

International Monetary Fund

government by the NBK also occurred during the third quarter. Despite a lowering of the reserve requirement at the beginning of May, commercial bank deposits at the NBK did not decline significantly; the money multiplier decreased; and total banking system credit to the economy fell in real terms despite successive lowerings of the refinance rate. Yields in the government treasury bill market also started rising as fears of inflation were reignited ( Figure 4 ). The policy mix had, therefore, become unsustainable and liquidity in the system began to exceed what could

International Monetary Fund
This paper reviews economic developments in the Republic of Kazakhstan during 1993–97. During 1993–94, price liberalization was virtually completed, most of the restrictions on foreign trade were eliminated, and a new currency with a unified rate was introduced. At the same time, state orders were phased out and privatization initiated. Since early 1996, the authorities have accelerated privatization, extending it to many large enterprises. Kazakhstan has also taken major steps toward banking and financial sector reform, through withdrawal of bank licenses, bank consolidation, introduction and enforcement of prudential regulations, and enhanced supervision.