LEADER 08095oam 22015854 450 001 9910964942603321 005 20250426110511.0 010 $a9781498363990 010 $a1498363997 010 $a9781498356473 010 $a1498356478 010 $a9781498326957 010 $a1498326951 035 $a(CKB)2550000001352323 035 $a(EBL)1779695 035 $a(SSID)ssj0001399038 035 $a(PQKBManifestationID)11773311 035 $a(PQKBTitleCode)TC0001399038 035 $a(PQKBWorkID)11447605 035 $a(PQKB)10587778 035 $a(MiAaPQ)EBC1779695 035 $a(Au-PeEL)EBL1779695 035 $a(CaPaEBR)ebr10928033 035 $a(CaONFJC)MIL642240 035 $a(OCoLC)890530201 035 $a(IMF)1TONEE2014001 035 $a(IMF)1TONEA2014001 035 $a1TONEA2014001 035 $a(EXLCZ)992550000001352323 100 $a20020129d2014 uf 0 101 0 $aeng 135 $aur|n|---||||| 181 $ctxt 182 $cc 183 $acr 200 10$aTonga : $eStaff Report for the 2014 Article IV Consultation 205 $a1st ed. 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2014. 215 $a1 online resource (72 p.) 225 1 $aIMF Staff Country Reports 300 $aDescription based upon print version of record. 311 08$a9781498388870 311 08$a1498388876 311 08$a9781322109893 311 08$a1322109893 327 $aCover; CONTENTS; THE MACROECONOMIC SITUATION; A. Authorities' Views; COPING WITH EXTRA FINANCING NEEDS; A. Background; B. Staff Views; C. Authorities' Views; REINVIGORATING FINANCIAL INTERMEDIATION; A. Background; B. Staff Views; C. Authorities' Views; REVERSING THE TREND OF SLOWER GROWTH; A. Background; B. Staff Views; C. Authorities' Views; STAFF APPRAISAL; BOXES; 1. The Macroeconomic Impact of the Cyclone; 2. Macroeconomic Implications of Hosting the 2019 Pacific Games; 3. Exchange Rate Assessment; 4. Previous Fund Recommendations; FIGURES; 1. Stylized Facts; 2. Economic Developments 327 $a3. Exchange Rate and Fiscal Policy Developments4. Monetary Policy and Financial Sector Developments; TABLES; 1. Tonga: Selected Economic Indicators, 2008/09-2014/15; 2. Tonga: Summary of Government Operations, 2008/09-2014/15; 2.a: Summary of Government Operations, 2008/09-2014/15; 3. Tonga: Depository Corporations Survey, 2008/09-2013/14; 4. Tonga: Balance of Payments Summary, 2008/09-2014/15; 5. Tonga: Medium-Term Scenario, 2009/10-2018/19; 6. Tonga: Financial Soundness Indicators, 2008/09-2012/13; 7. Tonga: Millennium Development Goals, 1990-2012; APPENDIX; I. Risk Assessment Matrix 327 $aCONTENTSFUND RELATIONS; PACIFIC FINANCIAL TECHNICAL ASSISTANCE CENTRE (PFTAC) COUNTRY STRATEGY 2013-14; WORLD BANK-IMF COLLABORATION; RELATIONS WITH THE ASIAN DEVELOPMENT BANK; STATISTICAL ISSUES 330 3 $aKEY ISSUES Context: Tonga?s economy is rebounding, partially owing to a recovery in agricultural exports. The outlook for tourism is also improving. The reconstruction from a recent cyclone is expected to lead to both a temporary boost to growth and additional financing needs. Risks to the inflation outlook and the external position are low. Fiscal Policy: The projected fiscal cost relating to the cyclone will be largely met by confirmed funding mainly from donor agencies. In the near term, the authorities should focus on reconstruction activities, while a medium-term fiscal strategy should aim at gradually stabilizing and then reducing the debt-to-GDP ratio, in order to improve Tonga?s moderate risk of debt distress. This will require careful execution of investments related to the 2019 South Pacific Games. Monetary Policy: The deleveraging cycle of the Tongan banks appears to be ending, and thus National Reserve Bank of Tonga should prepare to gradually withdraw liquidity and tighten monetary conditions once the current signs of a recovery of credit growth are confirmed. The authorities plan to lower the cost of credit through supportive credit policies, including by commercializing the Tonga Development Bank. The successful implementation of such plan requires sound safeguards, including a robust governance structure and firm risk management and accountability frameworks. Structural Policy: Structural reforms to facilitate the functioning of credit markets need to be implemented with renewed vigor. The authorities? intention to gradually phase out existing ad hoc tax incentives is well placed. The promotion of foreign direct investments should focus on business-enabling structural reforms, while the use of tax incentives should be minimized and well targeted. 410 0$aIMF Staff Country Reports; Country Report ;$vNo. 2014/240 606 $aEconomic development$zTonga 606 $aFiscal policy$zTonga 606 $aBanks and Banking$2imf 606 $aExports and Imports$2imf 606 $aMoney and Monetary Policy$2imf 606 $aPublic Finance$2imf 606 $aNatural Disasters$2imf 606 $aMacroeconomics$2imf 606 $aStatistics$2imf 606 $aInternational Lending and Debt Problems$2imf 606 $aDebt$2imf 606 $aDebt Management$2imf 606 $aSovereign Debt$2imf 606 $aMonetary Policy, Central Banking, and the Supply of Money and Credit: General$2imf 606 $aMonetary Policy$2imf 606 $aBanks$2imf 606 $aDepository Institutions$2imf 606 $aMicro Finance Institutions$2imf 606 $aMortgages$2imf 606 $aNational Government Expenditures and Related Policies: General$2imf 606 $aFiscal Policy$2imf 606 $aInternational economics$2imf 606 $aPublic finance & taxation$2imf 606 $aMonetary economics$2imf 606 $aBanking$2imf 606 $aEconometrics & economic statistics$2imf 606 $aExternal debt$2imf 606 $aPublic debt$2imf 606 $aPublic and publicly-guaranteed external debt$2imf 606 $aInternational reserves$2imf 606 $aPublic financial management (PFM)$2imf 606 $aCentral banks$2imf 606 $aDebts, External$2imf 606 $aDebts, Public$2imf 606 $aCredit$2imf 606 $aForeign exchange reserves$2imf 606 $aBanks and banking$2imf 606 $aFinance, Public$2imf 606 $aFiscal policy$2imf 607 $aTonga$2imf 615 0$aEconomic development 615 0$aFiscal policy 615 7$aBanks and Banking 615 7$aExports and Imports 615 7$aMoney and Monetary Policy 615 7$aPublic Finance 615 7$aNatural Disasters 615 7$aMacroeconomics 615 7$aStatistics 615 7$aInternational Lending and Debt Problems 615 7$aDebt 615 7$aDebt Management 615 7$aSovereign Debt 615 7$aMonetary Policy, Central Banking, and the Supply of Money and Credit: General 615 7$aMonetary Policy 615 7$aBanks 615 7$aDepository Institutions 615 7$aMicro Finance Institutions 615 7$aMortgages 615 7$aNational Government Expenditures and Related Policies: General 615 7$aFiscal Policy 615 7$aInternational economics 615 7$aPublic finance & taxation 615 7$aMonetary economics 615 7$aBanking 615 7$aEconometrics & economic statistics 615 7$aExternal debt 615 7$aPublic debt 615 7$aPublic and publicly-guaranteed external debt 615 7$aInternational reserves 615 7$aPublic financial management (PFM) 615 7$aCentral banks 615 7$aDebts, External 615 7$aDebts, Public 615 7$aCredit 615 7$aForeign exchange reserves 615 7$aBanks and banking 615 7$aFinance, Public 615 7$aFiscal policy 676 $a338.99612 801 0$bDcWaIMF 906 $aBOOK 912 $a9910964942603321 996 $aTonga$94372572 997 $aUNINA