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The secured borrowing based on sell/buy-backs agreements is studied, specifically considering both: quantity and price. The empirical evidence presented in this paper suggests that, after controlling for specific individual characteristics, group-specific effects (defined by belonging or not to a financial group) play a relevant role in this market. Using spatial panel data models, we find that the amount of liquidity obtained with sell/buy-backs depend on traditional determinants (institution’s size and financial leverage), but also, on the average size of the financial group to which the financial institution belongs. Similarly, the borrowing cost depends on the amount of liquidity, but the average profitability of the financial group is also significant. Our results are robust to different relationship structures specified for financial groups.

The secured borrowing based on sell/buy-backs agreements is studied, specifically considering both: quantity and price. The empirical evidence presented in this paper suggests that, after controlling for specific individual characteristics, group-specific effects (defined by belonging or not to a financial group) play a relevant role in this market. Using spatial panel data models, we find that the amount of liquidity obtained with sell/buy-backs depend on traditional determinants (institution’s size and financial leverage), but also, on the average size of the financial group to which the financial institution belongs. Similarly, the borrowing cost depends on the amount of liquidity, but the average profitability of the financial group is also significant. Our results are robust to different relationship structures specified for financial groups.

The power sector of Armenia achieved remarkable results through first generation policy, legal, regulatory, and institutional reforms implemented from 1991-2003, the first decade of independence. The sector achieved financial sustainability with tariffs that assured recovery of reasonable expenses and collections that reached virtually 100 percent of sales. The implicit and explicit subsidies to the power sector were eliminated and the largest sector companies were among the top taxpayers in the country. More than 70 percent of power sector assets were denationalized (privatized or transferred to Russian ownership in debt-to-asset swaps). However, in 2010 these achievements started to reverse and gradually worsened during the past several years. Today, the large state-owned sector power companies, as well as the privately-owned Electric Networks of Armenia (ENA) have accumulated large amount of expensive commercial debts and are on the verge of bankruptcy.

Effective January 1, 2018, IFRS 9 Financial Instruments will replace IAS 39 Financial Instruments: Recognition and Measurement (IAS 39). Unlike most publications on IFRS 9, this paper focuses primarily on the application of the new standard on central banks’ foreign reserve assets, which increasingly constitute a substantial part of central banks’ balance sheet. Based on IFRS 9 implementation assessment projects with several central banks, the World Bank RAMP accounting team identified six factors that can help central banks determine appropriate business model for foreign reserve assets. Empirically, the result of applying the six factors has indicated that central banks’ reserve portfolios often display elements of more than one business model; hence management judgment coupled with a well-articulated accounting policy paper will be critical when implementing IFRS 9. Under most central banks reserves management frameworks, performing the solely payments of principal and interest (SPPI) test should be a relatively straightforward exercise, and the practical expedient option under the new impairment provisions should also apply.

Financial infrastructure is the underlying foundation of a country’s financial system. It comprises all institutions, the rules, and standards of all the systems which enable financial intermediation. The quality of a country’s financial infrastructure determines the efficiency of intermediation, the ability of lenders to evaluate risk and of borrowers to obtain credit, insurance, and other financial products at competitive terms. For instance, the efficient and smooth functioning of the payment, and securities settlement systems facilitates the discharge of financial obligations and the safe transfer of funds across distances and institutions; hence, it support the stability of the financial system. This technical note contains the assessment of the national payment and settlement systems (NPS) infrastructure in Montenegro. The assessment was undertaken in the context of the IMF and World Bank (WB) joint Financial Sector Assessment Program (FSAP) mission to Montenegro during September 1-15, 2015. The assessor was Gynedi Srinivas of the World Bank’s Payment Systems Development Group. The assessor will like to thank the counterparts in Montenegro for their excellent cooperation and hospitality during the mission.

The Lebanon Economic Monitor provides an update on key economic developments and policies over the past six months. It also presents findings from recent World Bank work on Lebanon. It places them in a longer-term and global context, and assesses the implications of these developments and other changes in policy on the outlook for Lebanon. Its coverage ranges from the macro-economy to financial markets to indicators of human welfare and development. It is intended for a wide audience, including policy makers, business leaders, financial market participants, and the community of analysts and professionals engaged in Lebanon.

The Lebanon Economic Monitor provides an update on key economic developments and policies over the past six months. It also presents findings from recent World Bank work on Lebanon. It places them in a longer-term and global context, and assesses the implications of these developments and other changes in policy on the outlook for Lebanon. Lebanon continues to be impacted by the domestic political stalemate and regional turmoil, particularly along its border with Syria. Economic activity picked up in the second half of 2014. Stronger economic performance and lower oil prices pushed real GDP growth to an estimated 2.0 percent in 2014, compared to 0.9 percent in 2013. One-off cosmetic and unsustainable measures rather than policy actions helped improve the fiscal balance in 2014. We estimate the overall fiscal deficit to have declined by 2.3 percentage points. Declining imports lead an improvement in the current account balance. In 2014, a fall in merchandize imports induced a 4.4 pp reduction in the current account deficit to a still-elevated 22.2 percent of GDP. This trend is projected to continue in 2015 helped by falling oil prices and a depreciating euro, Headline inflation plummeted from 2.7 percent in 2013 to 1.9 percent in 2014 and is expected to remain tempered over the medium term. Lebanon s economy continues to be exposed to external shocks. The border with Syria is increasingly menacing as coordinated attacks by ISIS and Al Nusra are being launched more frequently from their bases in Syria. Inefficiencies in power generation impose sizable macroeconomic costs on Lebanon. The Lebanese electricity sector has been underperforming for decades with considerable socio-economic costs. The macroeconomic impact has been massive.

Bhutan and Botswana share a number of similarities. The two countries, land locked small states, have grown rapidly over the past few decades, boosted by sustained, large-scale inflows of foreign exchange. Botswana’s annual real growth rate averaged 9 percent over the past 40 years, driven by diamond exploration, whereas Bhutan has taken full advantage of generous foreign aid inflows to achieve an average growth rate of 8 percent per year for the past 30 years. However, after decades of rapid growth, the production base of both countries remains very narrow and the economy continues to directly or indirectly dependent on government demand. Job creation, particularly for the youths, is an important policy issue. Despite these similarities, Bhutan and Botswana exhibit an interesting contrast with regard to the management of volatile foreign exchange inflows, and its macroeconomic consequences. Notwithstanding the serious impact of the recent global crisis, today Botswana’s external position remains solid, guarded by sizable international reserves and low external debt. In contrast, Bhutan has accumulated large external debt and its international reserves are under significant pressure. This paper discusses Bhutan and Botswana’s experiences with managing volatile foreign exchange inflows. It assesses the nature and domestic economic consequences of volatile flows, and analyzes the policy measures that have been used to respond to revenue volatility. The structure of the paper is as follows. Section two analyzes Botswana’s experience of managing large, volatile diamond export earnings. Section three reviews more recent experience of Bhutan. Section four draws policy lessons from the experience of two countries. Finally section five concludes the paper.

This assessment of accounting and auditing requirements and practices in Former Yugoslav Republic (FYR) Macedonia is part of a joint initiative implemented by the World Bank and the International Monetary Fund to prepare reports on the observance of standards and codes (ROSC). The assessment focuses on the strengths and weaknesses of the accounting and auditing (A and A) environment that influences the quality of corporate financial reporting, and includes a review of both statutory requirements and actual practice. The assessment also considers the extent of compliance with European Union (EU) requirements under the acquis communautaire. The strategic objective of this report is to support government efforts to improve the business climate in FYR Macedonia, and achieve the country s overarching goal of EU integration. The three essential pillars of institutional infrastructure are: (i) adequate and appropriate legal requirements, (ii) capacity sufficient to implement those requirements, and (iii) effective enforcement mechanisms. This report updates the first ROSC A and A prepared in 2003. This report provides policy recommendations to improve financial transparency in the domestic corporate sector and to strengthen accounting and audit practices in line with international benchmarks and EU Directives.

Lebanon faces serious challenges from a volatile security environment and spillovers from the ongoing Syrian conflict which pose serious risks to an already fragile internal political situation. Security incidents have become increasingly more common and the volatile security environment is weakening consumer and investor sentiments and adversely affecting tourism, a central contributor to economic growth and employment in Lebanon. The influx of Syrian refugees to Lebanon persists, with officially registered refugees reaching close to 1 million (i.e., 21.6 percent of Lebanon’s pre-conflict population), which poses significant fiscal, health and educational challenges.

V diplomski nalogi se srečamo z različnimi opredelitvami plačilne sposobnosti, ki smo jih v prvem delu opredelili z možnimi vidiki plačilne sposobnosti. V drugem delu so predstavljeni pojmi povezani z zavodi, z opredeljenimi predpisi za obvladovanje plačilne sposobnosti v zavodih ter posebnostmi obvladovanja v zavodih. V tretjem delu pa najdemo povezanost plačilne sposobnosti s posebnostmi obvladovanja plačilne sposobnosti zavoda na primeru javnega zavoda. Rezultat je presoja posebnosti obvladovanja plačilne sposobnosti v Skupnosti zdravstvenih zavodov Murska Sobota. In this thesis we meet with the various definitions of liquidity which in first part are defined with possible aspects of liquidity. In the second part the are presented concepts related to non-profit institutions, defined rules for the management of liquidity in the non-profit institutions and the specific management of the non-profit institutions. In the third part we find the connection between liquidity and the particularities of managing liquidity by the non-profit institution in the event of a non-profit institution. The result is the assessment of the specific management of liquidity in Skupnosti zdravstvenih zavodov Murska Sobota.

Tajikistan is one of the world's most remittance-dependent economies, receiving net remittance inflows equivalent to approximately 40 percent of Gross Domestic Product (GDP). Falling remittance inflows was one of the main transmission channels through which the 2008-09 global economic crisis adversely impacted the economy. Conversely, the pickup in growth since 2009 can also be traced to the rebound in remittance inflows (primarily from Russia, where more than 90 percent of Tajik migrants work), which reached 42 percent of GDP in 2010 and an estimated 40 percent of GDP in 2011. As the World Bank's 2011 country economic memorandum has argued, future growth in Tajikistan will depend crucially on increasing efficiency and raising private investment rates. Remittances are likely to grow more slowly than the earlier trend over the last 5-6 years, but could nonetheless be a major contributor to future growth if more go into private investment than in the past.

A worldwide financial crisis of enormous magnitude continues to unfold rapidly. Unlike other crises in recent decades, the current episode is rooted in industrial countries' financial systems and is affecting low-income and middle-income countries (MICs) alike. Defaults on securitized sub-prime mortgages as a real estate market bubble burst led to failures or near-failures of several large financial institutions and a collapse of inter-bank and commercial paper markets. A tightening of credit, combined with declining consumer confidence, has brought on worldwide recession with growing unemployment, and many fear that the downturn will be severe and protracted. At the same time, the rapidly multiplying signs of contraction are prompting strong responses, including fiscal stimulus packages and reductions in benchmark lending rates, on the part of several of the affected developed countries. The Bank Group is well placed to help mitigate the impact of the current crisis with financing and advisory services, and its clients are already requesting increased support. A rapid, high-quality response that combines financial and advisory support can do much to ease the inevitable ramifications of the crisis. Lessons from evaluations of previous Bank Group responses to past crises can help inform the response to the current crisis in order to increase its effectiveness.