An orderly sovereign debt restructuring should place the debtor nation's public debt on a sustainable trajectory while minimizing procrastination and contagion. However, the experiences with the debt crisis of the 1980s, Russia 1998, Argentina 2001, and Greece 2010 indicate that orderly debt...

This staff report discusses Seychelles 2013 Article IV Consultation, Seventh Review Under the Extended Arrangement and Request for Modification of Performance Criterion. The repayment of domestic debt, a preference for foreign financing, and shallow domestic financial markets have resulted in...

Seychelles's strong stabilization efforts has helped the economy to overcome debt crisis and global recession under the Stand-By Arrangement (SBA). But the authorities need to address monetary policy trade-offs, and financial sector challenges exist. Executive Directors welcomed Seychelles's...

A confluence of developments is creating a more favorable economic situation for Guinea-Bissau. The country has moved away from debt distress with the debt relief granted after the Highly Indebted Poor Countries completion point last year. Fiscal sustainability has improved considerably through...

The Democratic Republic of the Congo (DRC) has successfully implemented key reforms under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative, despite experiencing exceptional challenges since the decision point, including a challenging security situation. Revised present value of...

The paper highlights that Guinea-Bissau managed to maintain macroeconomic stability amid challenging political circumstances. The Executive Board agreed that the performance under the Extended Credit Facility (ECF)-supported program has been satisfactory in attaining substantial progress with...

This paper presents a simple model of optimal reserves that can be easily calibrated to compute optimal reserves as well as the implied probability of a sudden stop for given reserves. The model builds upon the global games framework of Morris and Shin to establish a unique relationship between...

The First Review under the Stand-By Arrangement (SBA) discusses policies focused on measures to accelerate the reconstruction of the Iraqi economy while maintaining macroeconomic stability. Inflation has slowed down, and monetary and exchange rate policies have been adjusted. The Central Bank of...

This 2007 Article IV Consultation highlights that Dominica has fully recovered from the 2001–02 economic and financial crisis. Output growth has rebounded, reaching 4 percent in 2006, and it is expected to remain above trend in 2007. The rebound is driven by a pickup in tourism, recovery...

This paper discusses Serbia and Montenegro’s Sixth Review Under the Extended Arrangement, Financing Assurances Review, Request for Waivers of Nonobservance of Performance Criteria, and Proposed Post-Program Monitoring. Program implementation since the fifth review has been mixed, delaying...