China's Ratings Outlook Changed to Positive by Moody's on Strong Economy Nov 9, 2009
The countrys very strong international investment position has insulated it from the global financial crisis and reduced to a negligible level the risk that China could face a future balance of payments crisis, said , a Moodys senior vice president. Record and a 4 trillion yuan ($586 billion) stimulus package of spending on roads, power plants and low- cost housing has driven the rebound in the worlds third- biggest economy after exports collapsed. (Bloomberg -- Asia)
Press Release: IMF Signs €1.95 Billion Borrowing Agreement with the Danish Central Bank Nov 6, 2009
These agreements contribute toward an increase in Fund resources that was requested in April 2009 by and the in order to provide timely and effective balance of payments assistance to its members in the current crisis. Useful links. (IMF News)
Press Release: IMF Staff Statement at the Conclusion of PRGF Review Mission to Liberia Nov 3, 2009
The recent allocation of Special Drawing Rights (SDRs) to Liberia significantly expands the country s international reserves to better manage shocks to the balance of payments and the exchange rate. Structural reforms have advanced. (IMF News)
Transcript of a Conference Call on the Completion of the First Review of Iceland’s Stand-By Arrangement with Mark Flanagan, Mission Chief for Iceland, and Franek Rozwadowski, Resident Representative in Iceland Nov 3, 2009
QUESTIONER: You're right that the pressure of debt service does affect the balance of payments and that's one reason why the krona has dropped to around 180 to the euro at the moment ... You're right that the pressure of the overhang of nonresident liabilities in Iceland represents an issue for the balance of payments and could lead to some currency volatility, but I would remind everybody that the principal objective of this program from the start has been to contain the volatility of the... (IMF News)
Suriname-2009 Article IV Consultation Concluding Statement of the IMF Mission Nov 3, 2009
Balance of payments: The external current account balance is expected to deteriorate from a surplus of 4 percent of GDP in 2008 to a deficit of 2 percent of GDP in 2009 ... The mission is concerned that such a huge and permanent expansion in the civil service wage bill will quickly drive up wages in the private sector, thereby seriously undermining the economy s competitiveness; put considerable pressure on the balance of payments; significantly weaken the exchange rate; and ultimately lead to... (IMF News)
Press Release: IMF Executive Board Completes Second and Third Reviews Under Poverty Reduction and Growth Facility Arrangement with Nicaragua Nov 3, 2009
The authorities have developed a strengthened macroeconomic program for the remainder of 2009 and 2010 aimed at protecting the balance of payments position and placing public debt on a sustainable path. Fiscal consolidation efforts will be underpinned by measures comprising a strict control on current spending particularly on wages and pensions to make room for capital and social outlays, a revenue-enhancing reform that broadens the tax base, and measures to begin to strengthen the pension... (IMF News)
Bangladesh—2009 Article IV Consultation: Preliminary Conclusions of the IMF Mission Oct 31, 2009
Strong remittances, resilient exports and weak imports caused the current account of the balance of payments to record a surplus of almost 3 percent of GDP in FY09, up from less than 1 percent of GDP in FY08. With the capital and financial account of the balance of payments broadly in balance, the improvement in the current account caused a major rise in gross international reserves, from US$6. (IMF News)
Press Release: Statement by IMF Staff Mission to Uganda Oct 29, 2009
The PSI is an instrument of the IMF designed for countries that do not need balance of payments financial support. The PSI helps countries design effective economic programs that, once approved by the IMF's Executive Board, signal to donors, multilateral development banks, and markets the Fund's endorsement of a member's policies. (IMF News)
Press Release: IMF Completes First Review Under Stand-By Arrangement with Iceland, Extends Arrangement, and Approves US$167.5 Million Disbursement Oct 29, 2009
Capital controls remain an essential feature of the monetary policy framework, given the scale of potential capital outflows, and in line with the authorities published plan, should be removed gradually as confidence returns and as balance of payments developments permit. The authorities strengthened medium-term fiscal consolidation plan will help improve debt dynamics and limit financing risks. (IMF News)
Asian Shares Slide, Aussie Dollar Hit by Rate Talk Oct 28, 2009
5 per dollar, brushing off news that South Korea's balance of payments surplus in September soared nearly 60 percent to a near five-year high. 1. (ABC News -- Business)
No worries, mate: living with a deficit Oct 24, 2009
The deficit on the current account of the balance of payments occurs because our imports of goods and services exceed our exports (the trade deficit), and payments of interest and dividends to foreigners exceed our receipts of interest and dividends from foreigners (the ''net income deficit'') ... This net capital inflow produces a surplus on the capital account of the balance of payments, which exactly offsets the deficit on the current account. (Sydney Morning Herald -- Business)
Nero's ghost in Istanbul Oct 23, 2009
Countries, even those with a low credit rating, instead of turning to the IMF for balance of payments financing, were relying more and more on private markets ... Its troubles had in part arisen from poor management and distraction from its main mission - acting as the premier monetary institution, responsible for short-term balance of payments financing, monitoring exchange rate developments and dispensing unbiased policy guidance ... The clearing union would allow use of its bancor resources... (Asia Times Online)
Mexico Peso Gains as Congress Approves Income Portion of Calderon Budget Oct 22, 2009
Lower fiscal concerns and its impact on the balance of payments and the exchange rate could improve the outlook for the Mexican peso, , a Banco Santander SA strategist in New York, wrote in a note to clients today. Inflation, Interest Rates. (Bloomberg -- Latin America)
Asia, the Financial Crisis, and Global Economic Governance, Speech by John Lipsky, First Deputy Managing Director of the International Monetary Fund at the Federal Reserve Bank of San Francisco Conference, Santa Barbara, California Oct 22, 2009
For example, the region has pledged to provide the IMF with US$178 billion in new lending resources a third of the total pledged through the New Arrangements to Borrow (NAB) as well as the Note Purchase Agreement to support countries combating balance of payments pressures brought on by the crisis ... As you well know, many countries have rapidly built up official foreign exchange reserves over the past decade, in part as greater self insurance against balance of payments primarily capital... (IMF News)
Greenpeace protests modified corn in Mexico Oct 22, 2009
Greater corn production and less importation also would ease the nation's balance of payments. Bagley also sees another reason why Mexico may have allowed introduction of the genetically modified corn. (CNN -- International)
Transcript of the Fourth Pillar Meeting, Istanbul Convention, Center Taksim Meeting Room Oct 20, 2009
Balance of payments adjustments should be placed within a broad and sustainable framework of growth and development, budget austerity should not curtail pro-poor spending and social safety nets. These are my three points. (IMF News)
Ghana Bond to Give Africas Best Gain Oct 20, 2009
02 billion to support the countrys balance of payments and help shore up its depreciating currency. Ghana currently has about two months of import cover following the loan from the IMF. It is aiming to cut its budget deficit to 9. (Ghana Web, Ghana)
South Africa: Waking Up From a Seaside Dream [editorial] Oct 19, 2009
It's not clear how much aluminium smelters add to the balance of payments given that the exports of finished product must be netted off against the imports of raw materials. And this smelter was going to need only about 1000 workers once it was up and running. (allAfrica.com)
* Colombo may lose trade privileges: EU Oct 18, 2009
It took advantage of this to sell its second US$500 million internationally traded bond this week to strong international demand, while ratings agency Standard and Poors upped its outlook to positive from stable on a stronger balance of payments picture and a US$2. 6 billion IMF loan. (Taipei Times, Taiwan -- World)
Asian Currencies Advance for a Seventh Week as Growth, Yields Draws Funds Oct 17, 2009
35, citing improvements in the economy and the balance of payments. Despite the extensive gains in recent weeks, the Malaysian ringgit still remains moderately undervalued in our view, Morgan Stanley analysts and wrote in a research report. (Bloomberg -- Asia)
Press Release: IMF Executive Board Completes Review of Mexico's Performance Under the Flexible Credit Line Oct 17, 2009
Meanwhile, corporate external financing conditions have eased and the balance of payments situation remains manageable. However, Mexico s very strong policy framework, which underpins its qualification for the FCL, has helped cushion the impact of the global crisis. (IMF News)
Press Release: Statement by IMF Executive Directors at the Conclusion of their Visit to Armenia Oct 16, 2009
Foreign inflows have fallen and tax revenues have dropped, which have weakened the balance of payments and the public finances. These developments posed additional hardships on the Armenian population. (IMF News)
US balks at Pakistanwar-zone factories Oct 8, 2009
6 billion emergency loan package last November to avert a balance of payments crisis. The amount was subsequently raised to $11. (Asia Times Online)
* Business Briefs Oct 8, 2009
Continued positive equity sentiment and the medium-term outlook for further export recovery would suggest that Taiwans balance of payments should remain strongly positive, which will put upward pressure on the Taiwan dollar, Joseph Lau, a Hong Kong-based economist at Credit Suisse, wrote in a research note yesterday. This story has been viewed 336 times. (Taipei Times, Taiwan -- World)
Press Release: Communiqué of the International Monetary and Financial Committee of the Board of Governors of the International Monetary Fund Oct 7, 2009
The Fund should continue to strengthen its capacity to help its members cope with balance of payments problems, including financial volatility, and reduce the perceived need for excessive reserve accumulation. We ask the Fund, by the time of the next Annual Meetings, to study and report on the future financing role of the Fund. (IMF News)
IMF takes on bigger role, seeks more funds Oct 5, 2009
In a communique, the policy-setting committee said: "The fund should continue to strengthen its capacity to help its members cope with balance of payments problems, including financial volatility, and reduce the perceived need for excess reserve accumulation.". The policymakers asked the fund to study and report back in a year whether there is a need to offer "credible alternatives to self-insurance". (Sydney Morning Herald -- Business)
IMF will need 'substantial increase' in funds Oct 5, 2009
In a communique, the policy-setting IMFC said: "The fund should continue to strengthen its capacity to help its members cope with balance of payments problems, including financial volatility, and reduce the perceived need for excess reserve accumulation.". The policymakers asked the fund to study and report back in a year whether there is a need to offer "credible alternatives to self-insurance" after a meeting in Istanbul ahead of the IMF and World Bank meetings on Tuesday and Wednesday. (Yahoo! Asia News)
Go by fundamentals, buy stocks at dips Oct 4, 2009
The balance of payments also reported as a little surplus. On the currency front, the rupee traded firm in a narrow range of around Rs 48 per dollar. (India Times)
Zimbabwe: Sanctions to Torpedo GNU? Oct 2, 2009
The parties further noted and acknowledged the suspension of Zimbabwe's voting and related rights, suspension of balance of payments support, declaration of ineligibility to borrow, and suspension of technical assistance to Zimbabwe by the International Monetary Fund, the suspension of grants and infrastructural development support to the country by the World Bank and finally, the imposition of targeted travel bans against President Mugabe and other members of his former government, including... (allAfrica.com)
Press Release: IMF Announces Staff-Level Agreement with Tajikistan on First Review under PRGF Arrangement Sep 25, 2009
Despite some improvement in the global economy, the external climate for Tajikistan remains difficult, and macroeconomic policies will need to be set with a view to maintaining balance of payments sustainability, while continuing to increase social spending. In the area of structural reforms, the authorities intend to maintain their focus on NBT governance and financial transparency of the largest state-owned enterprises. (IMF News)
Economic Stability, Economic Cooperation, and Peace—The Role of the IMF, Remarks by Dominique Strauss-Kahn, Managing Director, International Monetary Fund Sep 25, 2009
It would oversee the global financial system and lend to members with balance of payments needs. It was understood that with stability would come peace and security. (IMF News)
Top SA inventions Sep 24, 2009
It was realised then that, because South Africa did not have crude oil reserves, the country's balance of payments had to be protected against increasing crude oil imports. After many years of research and international negotiations, the South African Coal Oil and Gas Corporation was formed in 1950. (iAfrica.com)
Deficit on the decline - Governor Sep 24, 2009
The consequence was that overall balance of payments deficit reduced to US$625. 98 million, as against a deficit of US$782. (Ghana Web, Ghana)
IMF urges donors to deliver on Pakistan aid Sep 23, 2009
The IMF bailed out Pakistan last November to avert a balance of payments crisis and in July it increased its loan to the country to $11. 3 billion from an initial $7. (AlertNet)
Zhou Says Currency Stability is Key as Exporters Seek to Delay Yuan Gains Sep 23, 2009
Monetary policy needs to be continuously adjusted in relation to the nations economic development, employment, currency stability and the international balance of payments, Zhou said. Developing nations such as China can accept inflation of more than 2 percent, a higher rate than developed countries generally hope for, he added. (Bloomberg -- Asia)
It's property time! Sep 23, 2009
South Africa's balance of payments remains positive, with inflows sufficient to finance the deficit on the current account. There have been positive reports locally and abroad that the property market is beginning to move. (iAfrica.com)
Dollar rebounds from sharp falls Sep 19, 2009
Elsewhere on Friday, the European Central Bank said the eurozone's balance of payments swung back into positive territory in July for the first time in more than a year, showing a surplus of 6 ... The last time the balance of payments, an overall measure of all current payments into and out of a country or region, showed a surplus was in February 2008, when it came to 2. (Business Report, South Africa)
The Global Financial Crisis and Low-Income Countries -- Domestic and International Policy Responses, Remarks by Dominique Strauss-Kahn, Managing Director, International Monetary Fund at the Resources for the Future Sep 18, 2009
Until now, the centerpiece of support to low-income countries was the Poverty Reduction and Growth Facility, the PRGF. It was designed to address deep-rooted balance of payments problems that required longer-term structural solutions. Today, some countries still face these same challenges. (IMF News)
Foreign purchase of U.S. long-term securities down sharply in July Sep 17, 2009
The figures reflect demand for U.S. Treasury obligations and other assets including stocks and government agency debt, a key to funding the massive U.S. balance of payments deficit with the rest of the world. Editor: Mu Xuequan. (Xinhuanet, China)
Uganda: Here is What Led to the Global Financial Crisis Part I Sep 17, 2009
Other countries, particularly in Asia, run huge balance of payments surpluses, accumulated massive reserves and invested heavily in securities issued by governments that run huge fiscal deficits and mortgage securities that promised high levels of returns. The subprime loans defaults, to many the cause of the crisis, may well have been the last straw which broke the camel's back, the spark which ignited the fire. (allAfrica.com)
Press Release: IMF Staff and Nicaragua Reach Preliminary Agreement on Economic Policies Under PRGF Arrangement Sep 17, 2009
An agreement in principle, still subject to IMF Management and Executive Board consideration and approval, was reached on a strengthened macroeconomic program for 2009-10, aimed at protecting Nicaragua s balance of payments position and ensuring the sustainability of public finances. To this end, and following a large widening of the fiscal deficit in 2009, the authorities are committed to implement measures to underpin an important consolidation of the public finances in 2010, through a mix of... (IMF News)
The W is getting lazier Sep 16, 2009
India is obvious; the country is already running into the balance of payments crisis that will mark the end of economic growth for a while. China is extremely obscure; one cannot believe that there won't be a banking crash of huge magnitude, but the country has managed to avoid one for the last 30 years and may somehow be able to do so again. (Asia Times Online)
Public Information Notice: IMF Executive Board Concludes Article IV Consultation with Malta Sep 15, 2009
Balance of payments (in percent of GDP). (in percent of GDP). (IMF News)
Press Release: Joint IMF, EC Press Release on the European Banking Group Coordination Meeting on Latvia Sep 15, 2009
The success of the reform program and medium-term balance of payments sustainability also depends significantly on the continued involvement of all banks operating in or with Latvia, including foreign-owned banks. The key banks (DnB Nord, Nordea, SEB and Swedbank) issued a on the principles of maintaining their overall exposure to the country and meeting liquidity and capital needs of their branches and subsidiaries in Latvia. (IMF News)
Security firm demands debt from Ghana@50 Secretariat Sep 15, 2009
Another contractor, William Aidam of Killiwama Woodworks who appeared before the Commission also demanded GH30,259 as balance of payments for civil works undertaken at the AU Village at Cantonments. Mr Aidam claimed he installed cabinets, wardrobes and flush doors, skirting and Plaster-of-Paris on some 30 building at the Village and was paid GH131,094. (Ghana Web, Ghana)
Argentina Must Curb Spending in 2010 as Growth of Revenue Slows, Marx Says Sep 14, 2009
Event Date August budget balance Sept. 15 to Sept. 18 Budget bill sent to Congress Sept. 14 or 15 Consumer confidence Sept. 15 Inflation expectations Sept. 17 Gross domestic product Sept. 18 Trade balance Sept. 18 Balance of payments Sept. 18. To contact the reporter on this story: in Buenos Aires at. (Bloomberg -- Latin America)
India weathers 12 months of financial crisis: Swaminathan S A Aiyar Sep 13, 2009
So, emigration (including the so-called brain drain) plus policies to eliminate the black market premium on the dollar now provide a huge balance of payments cushion. Back in the 1991 crisis, India turned to the IMF as lender of last resort for a structural adjustment loan of $4 billion. (India Times)
Press Release: IMF Report Welcomes Improvement in Quality of Turkey's Macroeconomic Data Sep 12, 2009
The datasets assessed in Turkey s data ROSC are the national accounts, consumer prices, producer prices, government finance, monetary, and balance of payments statistics. The agencies that compile the datasets assessed in the report are the Turkish Statistical Institute, the Central Bank of the Republic of Turkey, the Ministry of Finance, the Undersecretariat of the Treasury, and the State Planning Organization. (IMF News)
Public Information Notice: IMF Executive Board Concludes 2009 Article IV Consultation with the Lao People's Democratic Republic Sep 12, 2009
Public Information Notice: IMF Executive Board Concludes 2009 Article IV Consultation with the Lao People's Democratic Republic. Free Email Notification. (IMF News)
Bank boss wary of quick recovery Sep 12, 2009
Mr Hester told our correspondent he wanted to see a situation "where people can save more, borrow less, the balance of payments deficit closes, the government gets its own deficit under control". He said the priority for the UK was to reduce the indebtedness of public sector, households and businesses. (BBC News -- UK)
Interview: Zimbabwe benefits a great deal through FOCAC Sep 11, 2009
Looking at the challenges ahead, Chifamba said Zimbabwe had not fully optimized the benefits of bilateral cooperation because of balance of payments constraints which resulted from persistent droughts and the impact of sanctions. Editor: Xiong Tong. (Xinhuanet, China)
IMF Mission to Hungary Reaches Staff-Level Agreement on Third Review and Extension of Stand-By Arrangement Sep 8, 2009
The IMF mission worked in close cooperation with a parallel mission from the European Commission, carried out in the context of the European Union (EU) balance of payments assistance ... The end-June target on central government debt (excluding official financing) was not met due to technical reasons, as market financing was used to bridge to the disbursement of the third tranche of EU balance of payments support in early July. (IMF News)
Asian Currencies Drop, Led by Rupiah, on China Concern; Inflows Boost Won Sep 5, 2009
Cheap valuations, a twin surplus in the balance of payments and an improving macro-dynamic are likely to continue to sustain the Korean wons recovery into 2010, , Morgan Stanleys Hong Kong-based currency strategist, wrote in a research note dated yesterday. Overseas investors are certainly acting as though Koreas financial storm has passed. (Bloomberg -- Asia)
Press Release: Statement at the Conclusion of an IMF Staff Mission to Zambia Sep 5, 2009
The more-than-doubling of copper prices since the beginning of the year, along with some improvement in other sectors, will underpin somewhat higher GDP growth in 2009 than previously forecast and strengthen the balance of payments. The improved outlook is already being reflected in the appreciation of the Kwacha since May of this year. (IMF News)
IMF Signs 11 Billion Borrowing Agreement with France Sep 5, 2009
This agreement contributes toward an that was requested in April 2009 by and the in order to provide timely and effective balance of payments assistance to its members in the current crisis. Furthermore, the IMF and France have signed an agreement to provide the with an additional SDR 670 million (about US$1. (IMF News)
Ghana on track to halving poverty before 2015 Sep 4, 2009
It said the APR would benefit significantly from including a more comprehensive and updated macroeconomic framework, especially, an assessment of monetary policy and balance of payments that is consistent with the growth assumption. It also recommended that Debt Sustainability Analysis (DSA) be the focus of macroeconomic framework in the current post-debt relief era since the country has started to make recourse to non-concessional borrowing both in international and domestic capita markets. (Ghana Web, Ghana)
Multiple benefits if Japan buys F-22 Sep 4, 2009
The sale of the F-22s to Japan will have substantial economic and security benefits for the U.S. Japan would pay about $10 billion for 40 of the planes, thus helping our balance of payments situation and keeping tens of thousands of workers employed until 2017. Moreover, the F-22 would make U.S and Japanese forces more interoperable, allow the U.S. to have a smaller footprint in East Asia, and obviate the need for the Air Force to purchase more F-22s. (Atlanta Journal-Constitution -- Opinion)
RM10b bonds to fund cable project Sep 4, 2009
So it will not have a negative impact on the balance of payments, he added. The cable project, which upon completion will result in the longest undersea transmission cable in the world, will cater for the 2,400-megawatt (MW) Bakun hydroelectric dam. (The Star Online, Malaysia -- Business)
Today's national accounts are likely to show that the Australian economy returned to something like normal in the June quarter. Sep 2, 2009
At first sight, yesterday's balance of payments data also looks like we are back to normal. The current account deficit more than doubled in the June quarter. (Sydney Morning Herald -- Business)
Press Release: IMF Signs US$15 Billion Borrowing Agreement with the United Kingdom Sep 2, 2009
These agreements contribute toward an increase in Fund resources that was requested in April 2009 by and the in order to provide timely and effective balance of payments assistance to its members in the current crisis. Useful links. (IMF News)
Uganda: Uganda's Trade Surplus Hits $19m Aug 28, 2009
Kampala UGANDA'S balance of payments surplus hit $19m in June compared with a deficit of more than $100m in the same period of the previous year on informal trade, the central bank said on Thursday. The Bank of Uganda has predicted that economy's 2009/10 balance of payments will run a deficit of $134. (allAfrica.com)
Belarus—2009 Article IV Consultation, Concluding Statement of the IMF Mission Aug 28, 2009
Nevertheless, boosting domestic demand when the country s balance of payments remains fragile would risk undermining the objective of reducing external vulnerability through building international reserves. Credit to the economy continued to grow strongly in the first seven months of 2009, driven by lending under government programs, often at subsidized rates. (IMF News)
Press Release: IMF Executive Board Approves US$240.6 Million Arrangement for the Federal Democratic Republic of Ethiopia Under the Exogenous Shocks Facility Aug 27, 2009
6 million) arrangement under the Exogenous Shocks Facility (ESF) to help Ethiopia cope with the effects of the global recession on its balance of payments ... The authorities have adopted an appropriate program for 2009/10 to address the strains on the balance of payments and to keep inflation low. (IMF News)
Highlights of the supplementary budget Aug 26, 2009
- Government successfully managed to secure respectable budgetary, project and balance of payments support from development partners. - Confidence and stability in the economy is rapidly being restored. (Ghana Web, Ghana)
IMF adopts irrigationplan during a flood Aug 25, 2009
Fund (IMF), which had long ago surrendered its role of safeguarding the international payments system, promoting policy coordination and exchange rate stability, and supporting countries in need of short-term balance of payments financing ... Under the gold-exchange standard, the deficit of the reserve currency country (the US) kept widening due to the absence of a market adjustment mechanism for its balance of payments (that is devaluation of the dollar or revaluation of other currencies) ...... (Asia Times Online)
