## country-cases ## Source details **Canonical URL:** [country-cases](https://www.imf.org/-/media/files/publications/fandd/article/2022/march/country-cases.pdf) ## Other formats - [Markdown version](/-/media/files/publications/fandd/article/2022/march/country-cases.pdf.md) - [Structured JSON version](/-/media/files/publications/fandd/article/2022/march/country-cases.pdf.json) --- ### Belize: Swapping debt for nature - Deal outcome and scale - Debt-for-nature swap reduced Belize’s stock of external debt by 10 percent of GDP. - The government’s entire stock of external commercial debt was a $553 million “superbond,” equivalent to 30 percent of GDP. - The superbond was bought back at a discounted price of 55 cents per dollar. - TNC financed the buyback by issuing $364 million in “blue bonds.” - The loan featured a low interest rate, a 10-year grace period, and a maturity of 19 years. - The US development bank (DFC) provided insurance; Moody’s rated the blue bonds Aa2. - Conservation commitments and financing - Belize agreed to spend about $4 million a year on marine conservation until 2041. - Marine protection will expand from 15.9 percent of its oceans to 30 percent by 2026. - An endowment fund of $23.5 million will finance conservation after 2040. - Notable design features and implications - The bond market provided the effective “grant” via a market discount rather than bilateral official debt write-off. - The swap involved private creditors and was financed by private investors, with DFC insurance critical to attract risk-averse investors (e.g., pension funds). - Investor confidence was supported by TNC’s three-decade track record in Belize, reducing “bluewashing” risk. - Potential replication: scope exists for similar swaps in countries with debt trading at a discount or incurring high interest costs; TNC is exploring arrangements in seven other countries. ### Colombia: Connecting the dots - Problem and context - Offshore leaks (e.g., the Panama Papers) exposed hidden use of trusts, offshore accounts, and shell companies to hide assets and avoid taxes. - Disclosure effects: using Colombian tax microdata, disclosure of hidden wealth increased sixfold after the Panama Papers leak in 2016; taxes paid by those listed in the leak more than doubled. - More than 160 countries have financial disclosure systems; in 80 of them disclosure must be made public; nearly 90 have passed beneficial ownership registry legislation. - Open-data tools and pilot project - Joining the Dots (Directorio Legislativo and EITI, seed-funded by the IMF’s Anti-Corruption Challenge) combines public officials’ financial disclosures with beneficial ownership data using open-source technologies to generate red flags for potential conflicts of interest or corruption. - The tool was piloted in Colombia after a December 2019 law mandated publication of public officials’ financial disclosure forms. - Colombia meets the EITI standard and is one of 10 countries in the region that require declaration of beneficial ownership by law; a recent amendment created a beneficial ownership registry accessible only to government agencies. - Findings and use of data - The team identified a total of 20,969 red flags, involving 19,814 politically exposed persons. - More than 20 percent of the red flags involved high- and middle-ranking officials (noted as 2 out of 10 prominent politicians showing inconsistency). - The Office of the Comptroller General is the agency most likely to use the publicly available data for investigations. - Limitations and scalability - Lack of public access to beneficial ownership registries limits verification and preventive checks. - In the absence of direct registries, proxies (e.g., procurement databases, EITI portal) can be used, though data quality varies and cleaning is time-consuming. - The tool is adaptable and can be applied in other countries (e.g., Nigeria) where at least some disclosure or procurement/ownership data exist. - Broader value - Public access to beneficial ownership and disclosure registries enables preventive anti-corruption checks, supports journalists and transparency organizations, and helps investors and businesses assess reputational and legal risk. ### Ghana: Digital transformation - Identification and population coverage - Ghana’s population is roughly 31 million. - Ghana Card initiative has enrolled 15.5 million people, aiming to cover most of the adult population by the end of this year. - Each card issues a unique national identification number, biometrically enabled via fingerprints; this number doubles as a tax ID. - Under the previous system, only 3 million tax identification numbers had been registered. - Property and taxpayer databases - Ghana’s Land Use and Spatial Planning Authority has identified 7.5 million properties using GPS for inclusion in a national digital address database and potential tax rolls. - Service integration and compliance measures - Ghana.gov.gh provides a one-stop portal for online government services to reduce corruption and improve access. - The Ghana Revenue Authority conditions renewal of driver’s licenses and professional licenses on tax payment and is increasing audits of large companies (notably in mining and resource extraction). - Revenue projections and targets - Electronic collection and tax measures in the 2022 budget are expected to help increase Ghana’s tax-to-GDP ratio from the current 12 percent to about 16 percent at the end of 2022. - The medium-term target for the tax-to-GDP ratio is 20 percent. - Mobile money and digital payment policy - Ghana has roughly 19 million active mobile money accounts and an interoperable mobile money system across the country’s three mobile networks and with bank accounts; the Bank of Ghana oversees transactions via Ghana Interbank Payment and Settlement Systems. - Legislators are considering an e-levy of 1.75 percent on electronic transactions (mobile money payments, bank transfers, merchant payments) applying to transactions beyond the first 100 Ghanaian cedis ($16) a day. - Policy trade-off: the e-levy could expand the tax base by capturing informal economic activity but may risk driving users back to cash, affecting financial inclusion. - Future digital finance developments - The Bank of Ghana plans to pilot a central bank digital currency, the e-cedi, later this year. - Capacity gaps remain: tax administration needs further technology and big data capabilities to fully leverage the digital identity, property, and payment systems. ### Private sector engagement - The private sector, which has already been involved in several initiatives, is looking to harness government data to add value for users. - “The government’s work is putting the foundation and making it easy for the private sector to put the building blocks on top,” said Patrick Quantson, chief transformational officer for DreamOval Limited, a Ghanaian fintech company. - “I think, fundamentally, the work the government needs to do for this digital investment is to open it up from day one.” ### Government role and responsibilities - Government work is characterized as putting the foundation for digital investment. - Opening government data and systems from the outset is presented as a foundational policy action to enable private-sector innovation. ### Notable attribution and context - ANALISA R. BALA, ADAM BEHSUDI, and NICHOLAS OWEN are on the staff of Finance & Development. - Ghana has one of the most active and fastest-growing mobile money markets on the continent. *Source: country-cases - Section 2 (country-cases - Section 2, https://www.imf.org/-/media/files/publications/fandd/article/2022/march/country-cases.pdf)* ### Section 1 ### Meeting the Future ### Belize: Swapping debt for nature - Deal outcome and scale - Debt-for-nature swap reduced Belize’s stock of external debt by 10 percent of GDP. - The government’s entire stock of external commercial debt was a $553 million “superbond,” equivalent to 30 percent of GDP. - The superbond was bought back at a discounted price of 55 cents per dollar. - TNC financed the buyback by issuing $364 million in “blue bonds.” - The loan featured a low interest rate, a 10-year grace period, and a maturity of 19 years. - The US development bank (DFC) provided insurance; Moody’s rated the blue bonds Aa2. - Conservation commitments and financing - Belize agreed to spend about $4 million a year on marine conservation until 2041. - Marine protection will expand from 15.9 percent of its oceans to 30 percent by 2026. - An endowment fund of $23.5 million will finance conservation after 2040. - Notable design features and implications - The bond market provided the effective “grant” via a market discount rather than bilateral official debt write-off. - The swap involved private creditors and was financed by private investors, with DFC insurance critical to attract risk-averse investors (e.g., pension funds). - Investor confidence was supported by TNC’s three-decade track record in Belize, reducing “bluewashing” risk. - Potential replication: scope exists for similar swaps in countries with debt trading at a discount or incurring high interest costs; TNC is exploring arrangements in seven other countries. ### Colombia: Connecting the dots - Problem and context - Offshore leaks (e.g., the Panama Papers) exposed hidden use of trusts, offshore accounts, and shell companies to hide assets and avoid taxes. - Disclosure effects: using Colombian tax microdata, disclosure of hidden wealth increased sixfold after the Panama Papers leak in 2016; taxes paid by those listed in the leak more than doubled. - More than 160 countries have financial disclosure systems; in 80 of them disclosure must be made public; nearly 90 have passed beneficial ownership registry legislation. - Open-data tools and pilot project - Joining the Dots (Directorio Legislativo and EITI, seed-funded by the IMF’s Anti-Corruption Challenge) combines public officials’ financial disclosures with beneficial ownership data using open-source technologies to generate red flags for potential conflicts of interest or corruption. - The tool was piloted in Colombia after a December 2019 law mandated publication of public officials’ financial disclosure forms. - Colombia meets the EITI standard and is one of 10 countries in the region that require declaration of beneficial ownership by law; a recent amendment created a beneficial ownership registry accessible only to government agencies. - Findings and use of data - The team identified a total of 20,969 red flags, involving 19,814 politically exposed persons. - More than 20 percent of the red flags involved high- and middle-ranking officials (noted as 2 out of 10 prominent politicians showing inconsistency). - The Office of the Comptroller General is the agency most likely to use the publicly available data for investigations. - Limitations and scalability - Lack of public access to beneficial ownership registries limits verification and preventive checks. - In the absence of direct registries, proxies (e.g., procurement databases, EITI portal) can be used, though data quality varies and cleaning is time-consuming. - The tool is adaptable and can be applied in other countries (e.g., Nigeria) where at least some disclosure or procurement/ownership data exist. - Broader value - Public access to beneficial ownership and disclosure registries enables preventive anti-corruption checks, supports journalists and transparency organizations, and helps investors and businesses assess reputational and legal risk. ### Ghana: Digital transformation - Identification and population coverage - Ghana’s population is roughly 31 million. - Ghana Card initiative has enrolled 15.5 million people, aiming to cover most of the adult population by the end of this year. - Each card issues a unique national identification number, biometrically enabled via fingerprints; this number doubles as a tax ID. - Under the previous system, only 3 million tax identification numbers had been registered. - Property and taxpayer databases - Ghana’s Land Use and Spatial Planning Authority has identified 7.5 million properties using GPS for inclusion in a national digital address database and potential tax rolls. - Service integration and compliance measures - Ghana.gov.gh provides a one-stop portal for online government services to reduce corruption and improve access. - The Ghana Revenue Authority conditions renewal of driver’s licenses and professional licenses on tax payment and is increasing audits of large companies (notably in mining and resource extraction). - Revenue projections and targets - Electronic collection and tax measures in the 2022 budget are expected to help increase Ghana’s tax-to-GDP ratio from the current 12 percent to about 16 percent at the end of 2022. - The medium-term target for the tax-to-GDP ratio is 20 percent. - Mobile money and digital payment policy - Ghana has roughly 19 million active mobile money accounts and an interoperable mobile money system across the country’s three mobile networks and with bank accounts; the Bank of Ghana oversees transactions via Ghana Interbank Payment and Settlement Systems. - Legislators are considering an e-levy of 1.75 percent on electronic transactions (mobile money payments, bank transfers, merchant payments) applying to transactions beyond the first 100 Ghanaian cedis ($16) a day. - Policy trade-off: the e-levy could expand the tax base by capturing informal economic activity but may risk driving users back to cash, affecting financial inclusion. - Future digital finance developments - The Bank of Ghana plans to pilot a central bank digital currency, the e-cedi, later this year. - Capacity gaps remain: tax administration needs further technology and big data capabilities to fully leverage the digital identity, property, and payment systems. *Finance & Development, March 2022 — Section 1* ### Section 2 ### country-cases - Section 2 ### Private sector engagement - The private sector, which has already been involved in several initiatives, is looking to harness government data to add value for users. - “The government’s work is putting the foundation and making it easy for the private sector to put the building blocks on top,” said Patrick Quantson, chief transformational officer for DreamOval Limited, a Ghanaian fintech company. - “I think, fundamentally, the work the government needs to do for this digital investment is to open it up from day one.” ### Government role and responsibilities - Government work is characterized as putting the foundation for digital investment. - Opening government data and systems from the outset is presented as a foundational policy action to enable private-sector innovation. ### Notable attribution and context - ANALISA R. BALA, ADAM BEHSUDI, and NICHOLAS OWEN are on the staff of Finance & Development. - Ghana has one of the most active and fastest-growing mobile money markets on the continent. *Source: country-cases - Section 2 (country-cases - Section 2, https://www.imf.org/-/media/files/publications/fandd/article/2022/march/country-cases.pdf)* --- _Source: https://www.imf.org/-/media/files/publications/fandd/article/2022/march/country-cases.pdf_