## Eighth Review of the Fund’s Data Standards Initiatives — Executive Summary and Selected Sections (paras 9, 31–70; 45–66; Annex II)

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### Overview and recent decisions
- In March 2010 the Executive Board agreed to accelerate the timing of the Eighth Review to within 24 months and requested an interim briefing within about a year.
- In February 2011 the Board discussed the Interim Report and broadly supported enhancements to the SDDS and a proposal for an SDDS Plus tier; detailed proposals were requested for the Eighth Review in 2012.
- The paper reports developments since the Seventh Review (December 2008) and presents proposals to enhance the SDDS and define SDDS Plus data categories and modalities.

### Membership, participation, and outreach — key statistics and recent progress
- As of December 31, 2011:
  - About 90 percent of the Fund membership either subscribes to the SDDS or participates in the GDDS.
  - SDDS subscription: 69 countries.
  - GDDS participation: 102 countries.
  - The GDDS has had 112 participants since inception; ten graduated to the SDDS.
  - Since the Seventh Review, five countries subscribed to the SDDS and twelve countries began participation in the GDDS.
  - Currently, 19 IMF member countries are neither GDDS participants nor SDDS subscribers.
- Outreach:
  - Five regional outreach seminars solicited feedback from SDDS subscribers on SDDS enhancements and SDDS Plus.
  - Post-Seventh Review outreach included six GDDS and three SDDS workshops in eight countries; donor support included DFID and AASFA.
  - Results of outreach were incorporated into staff proposals.

### Implementation and methodological alignment — progress highlights
- SDDS metadata:
  - Total data category metadata presentations as of end-December 2011: 1,242 (18 data categories × 69 subscribers).
  - Over 96 percent of the 1,242 metadata presentations have explicit references to internationally accepted statistical methodologies and relevant deviations; citations or deviations still missing for 48 data categories.
  - Three SDDS data categories excluded from citation/deviation exercise: interest rates, the stock market index, and exchange rates.
- Metadata certification:
  - Regular SDDS metadata certification changed from quarterly to annual beginning in 2009; first annual certification covered 2009 and was due by January 31, 2010.
- Reserves Template:
  - Modifications to cover exchange-traded futures settled in domestic currency completed; as of December 2011, all SDDS subscribers except one comply (requirement effective end-August 2009).
- Data quality assessments:
  - Since the Seventh Review five Data ROSCs were conducted and disseminated: Australia, Costa Rica, Korea, Mexico, and Russia; one additional Data ROSC (Georgia) conducted in late 2011.
  - Four subscribers have yet to conduct/diffuse a Data ROSC or equivalent; five subscribers have outdated ROSCs (completed in 1999 or earlier).
  - Updated DQAF (to incorporate 2008 SNA and BPM6) to be available for use in Data ROSCs in 2012.
  - Resource constraints: STA in FY 2011 and FY 2012 could undertake up to two Data ROSCs per fiscal year.

### SDDS enhancements — principal proposals and timelines
- Key proposed enhancements:
  - Introduce a more structured timeline for SDDS nonobservance procedures (time-based process with defined steps and maximum lags).
  - Require NSDPs to include hyperlinks to longer time series and more detailed data by end-2012.
  - Add structure and focus to encouraged Forward Looking Indicators (FLIs), emphasizing specific FLIs (Industrial production or investment, Retail sales, Inflationary expectations).
  - Delete the ARC flexibility options from the SDDS after a transition period, by end-2017.
  - Terminate posting of the SDDS quarterly update on the DSBB.
  - Incorporate sectoral balance sheets and general government gross debt on an encouraged basis into the SDDS if SDDS Plus categories are approved.
- Proposed time-based nonobservance procedure (maximum time lags and steps):
  - Technical discussions start immediately after deviation detected.
  - If serious issue not resolved through technical discussions within 3 months (monthly data) or 6 months (quarterly/annual data), SDDS Coordinator notified of initiation of nonobservance procedures.
  - Communication with subscriber’s Executive Director by staff within 3 months after SDDS coordinator notification; if unresolved, letter to Governor within 3 months after Executive Director communication; DSBB note posted within 3 months after letter to Governor; Board discussion up to 12 months after DSBB posting; total maximum time lag limited to 21 months from SDDS coordinator notification to Board action.
  - Definition: “serious deviation” includes data not publicly disseminated, incomplete data publicly disseminated, or frequent delays.
- Hyperlinks on NSDPs:
  - NSDPs to contain hyperlinks to longer time series and more detailed data via NSDPs by end-2012.
  - Staff found time series hyperlinks for more than 75 percent of SDDS data categories already appear on subscribers’ NSDPs.
- FLIs and ARC flexibility:
  - Only 13 subscribers currently provide FLIs via NSDPs; proposal targets three specific FLIs.
  - ARC flexibility options invoked by only 14 subscribers historically; proposal to delete these options by end-2017 but retain other periodicity/timeliness flexibility options.

### SDDS Plus — objectives, scope, and governance
- Purpose:
  - SDDS Plus proposed as an additional tier to the Fund’s Data Standards Initiatives primarily intended for SDDS subscribers with systemically important financial sectors to address data gaps revealed by the global financial crisis.
  - Designed to enhance and supplement (not replace) the SDDS.
- Core elements:
  - SDDS Plus includes all SDDS prescribed data categories plus nine additional data categories covering four macroeconomic sectors:
    - Real sector: sectoral balance sheets.
    - Fiscal sector: general government operations (GGO) and general government gross debt.
    - Financial sector: other financial corporations (OFCs) survey, FSIs, and debt securities.
    - External sector: Coordinated Portfolio Investment Survey (CPIS), Coordinated Direct Investment Survey (CDIS), and Currency Composition of Foreign Exchange Reserves (COFER).
  - Adherence is voluntary; a country must be a subscriber in full observance of the SDDS to adhere to SDDS Plus.
  - Modalities for monitoring observance and nonobservance procedures similar to SDDS.
  - SDDS Plus contains only required data categories; none categorized as “encouraged.”
  - NSDPs for SDDS Plus require hyperlinks to time series with minimum lengths: five years for well established categories; newly developed categories require hyperlinks since series creation.
- Transition arrangements:
  - Initially allow transition periods for up to four of the nine additional data categories through end-2017 if an interested country does not fully meet requirements but commits to comply by end-2017.
  - Executive Board modification: extended the transition period until end-2019 to address Directors’ concerns.

### SDDS Plus — specific data category requirements (coverage, periodicity, timeliness)
- Real sector
  - Sectoral Balance Sheets:
    - Coverage (Prescribed): Sectoral stocks of financial assets and liabilities; minimum set of internationally comparable sectoral balance sheets; focus on sub-sector details of financial corporations; standard 2008 SNA instrument classification.
    - Periodicity: Q
    - Timeliness: Q
- Fiscal sector
  - General Government Operations (GGO):
    - Coverage (Prescribed): Statement of Government Operations in GFSM 2001 (recording basis cash, modified accrual, or accrual acceptable).
    - Periodicity: Q
    - Timeliness: 4M* (Executive Board endorsed modified staff proposal extending the deadline to 12 months to address quality concerns)
  - General Government Gross Debt (at nominal value):
    - Coverage (Prescribed): General government total gross debt at nominal value, classified by debt instrument, currency of denomination, and residence of creditor; memorandum items include debt securities at market value and classification by remaining maturity.
    - Periodicity: Q
    - Timeliness: 4M
    - Note: memorandum items to be provided on a best effort basis (Executive Board modification).
- Financial sector
  - Other Financial Corporations (OFCs) survey:
    - Coverage (Prescribed): OFCs survey covering minimum set of assets and liabilities compatible with the MFSM.
    - Periodicity: Q
    - Timeliness: Q (within 1 quarter)
  - Financial Soundness Indicators (FSIs):
    - Coverage (Prescribed): All FSIs encouraged under SDDS except “net open position in foreign exchange to capital” plus FSI on residential real estate prices.
    - Periodicity: Q
    - Timeliness: Q (within 1 quarter)
  - Debt Securities:
    - Coverage (Prescribed): From-whom-to-whom coverage per Handbook on Securities Statistics (Table 5.2 style).
    - Periodicity: Q
    - Timeliness: Q (within one quarter)
- External sector
  - CPIS:
    - Coverage (Prescribed): Participation in CPIS — IMF certification; core dataset required.
    - Periodicity: SA (beginning June 2015)
    - Timeliness: 7M (data to be reported to IMF within 7 months after reference period)
    - Executive Board modification: Debt securities should be presented at market value, but can be presented at nominal value or both; countries must indicate valuation method in metadata.
  - CDIS:
    - Coverage (Prescribed): Participation in CDIS — IMF certification; inward direct investment positions by immediate direct investor and counterpart economy for equity and debt.
    - Periodicity: A
    - Timeliness: 9M (preliminary data within 9 months; Executive Board removed the requirement to report revised data within 15 months)
  - COFER:
    - Coverage (Prescribed): Participation in COFER — IMF certification.
    - Periodicity: Q
    - Timeliness: Quarterly data to be reported to the IMF within one quarter after the end of the reference period.
- Other SDDS Plus specifications (Annex II highlights):
  - IIP: Periodicity A (Q encouraged); from September 2014 Q periodicity and timeliness required (Q; 1Q).
  - Official reserve assets: Periodicity M (W encouraged); Timeliness: 1W; M (W encouraged); 1M (1W encouraged).
  - Merchandise trade: Periodicity M; Timeliness: 8W (4-6W encouraged).
  - External debt: Periodicity Q; Timeliness: Q.
  - Addendum: Population Periodicity: A.

### Developments and proposals dropped for now
- Dropped proposals (due to compilation, monitoring, agency coordination, or subscriber reservations):
  - Requiring adoption of five internationally accepted statistical methodologies (2008 SNA, CPIM 2004, GFSM 2001, MFSM 2000, BPM6) at this time.
  - Sectoral balance sheets — nonfinancial assets (collected on sectoral basis).
  - International banking statistics as reported to the BIS.
  - Data on systemically important global financial institutions (to be revisited after FSB work; staff will return with a specific proposal by next review).

### Resource implications and staff estimates
- Implementation and monitoring will require additional resources initially; staff conscious of costs to countries and the Fund.
- Specific resource needs include:
  - Staff time and IT budget for implementing time-based nonobservance procedures and automated mechanisms.
  - Staff time to check hyperlinks on NSDPs (initially).
  - Technical assistance demand likely to rise to support subscribers.
- STA budget projection for FY2013:
  - Requirements for SDDS Plus equivalent to 1 full time equivalent staff position and 0.5 full time equivalent contractual position.
- Review timing:
  - Staff initially proposed Ninth Review within five years; Executive Board endorsed modified staff proposal to hold next review in two rather than five years.

### Outreach feedback — summary approval rates (selected)
- Feedback from Target Countries (total number of target countries is 24):
  - Sectoral Balance Sheets: 13 of 16; Percent Approval of Total Respondents 81
  - Coordinated Portfolio Investment Survey: 15 of 16; Percent Approval 94
  - Coordinated Direct Investment Survey: 15 of 16; Percent Approval 94
  - Currency Composition of Foreign Exchange Reserves: 13 of 16; Percent Approval 81
- Feedback from Outreach Seminar Participants (48 countries participated):
  - Financial Soundness Indicators: 37 of 47; Percent Approval 79
  - Coordinated Direct Investment Survey: 40 of 47; Percent Approval 85
  - Debt Securities: 33 of 46; Percent Approval 72
  - Sectoral Balance Sheets: 29 of 45; Percent Approval 64

### Issues for discussion posed to Directors (selected)
- Do Directors agree with:
  - Implementation of a time-based SDDS nonobservance procedure (paragraph 31)?
  - NSDPs containing hyperlinks to time series for all data categories by end-2012 (paragraph 34)?
  - Structuring and focusing the encouraged FLIs to provide useful economic insights (paragraph 37)?
  - Deleting the ARC distribution flexibility option from the SDDS by end-2017 (paragraph 40)?
  - Terminating the posting of the SDDS quarterly update on the DSBB (paragraph 44)?
  - Adding sectoral balance sheets and general government gross debt at nominal value to SDDS data categories on an encouraged basis (paragraph 45)?
  - SDDS Plus to include the nine proposed data categories with specified coverage, periodicity, and timeliness (paragraphs 53–62)?
  - Allowing transition periods for up to four of the nine proposed SDDS Plus data categories until end-2017 (paragraph 63)? (Note: Executive Board endorsed extension to end-2019.)
  - Proposed governance elements and modalities of SDDS Plus (paragraphs 64–66)?
  - Timing of the next review of the Fund’s Data Standards Initiatives (paragraph 70)?

*Italic source attribution: IMF staff paper — Executive Summary and selected sections on SDDS enhancements, GDDS follow-up, and SDDS Plus proposal (IMF content unit _013112).*

### Executive Summary ......................................................................................................

### Executive Summary

### Overview
- In March 2010, the Executive Board agreed to accelerate the timing of the Eighth Review of the Fund’s Data Standards Initiatives to within 24 months and requested an interim briefing prior to the Eighth Review within about a year.
- In February 2011, the Board discussed the Interim Report for the Eighth Review and broadly supported further work on enhancements to the Special Data Dissemination Standard (SDDS) and on the proposal for an SDDS Plus as an additional tier. Directors requested detailed proposals at the time of the Eighth Review in 2012.
- The paper reports on developments since the Seventh Review (December 2008) and presents proposals to enhance the SDDS and to define data categories and modalities for an SDDS Plus.

### Progress since the Seventh Review
- Membership and participation:
  - As of December 31, 2011, about 90 percent of the Fund membership either subscribes to the SDDS or participates in the GDDS.
  - SDDS subscription: 69 countries.
  - GDDS participation: 102 countries.
  - The GDDS has had 112 participants since its inception, ten of which have graduated to the SDDS.
  - Since the Seventh Review, five countries have subscribed to the SDDS and twelve countries began participation in the GDDS.
  - Currently, 19 IMF member countries are neither GDDS participants nor SDDS subscribers.
  - A Japanese-funded project will provide technical assistance to 11 of these countries; the project is scheduled for a formal launch at an opening workshop in March 2012.
- Implementation and methodological alignment:
  - Most SDDS metadata now have references to internationally accepted statistical methodologies and describe deviations from those methodologies.
  - Implementation to change regular SDDS metadata certification from quarterly to annual began in 2009.
  - Implementation of Reserves Template modifications to cover exchange-traded futures settled in domestic currency has been completed.
  - Work on incorporating financial soundness indicators (FSIs) in the SDDS on an encouraged basis is making good progress.
  - A simplified table on subscribers’ external debt by remaining maturity has been incorporated into the SDDS on an encouraged basis.
  - Transition to mandatory quarterly International Investment Position (IIP) data with one quarter timeliness by the end of September 2014 is on track.
- GDDS alignment:
  - The GDDS metadata for all GDDS participating countries was reformatted into the format of the Data Quality Assessment Framework (DQAF).
  - Several GDDS countries established National Summary Data Pages (NSDPs) and Advance Release Calendars (ARCs).
  - GDDS countries were encouraged to compile statistical data categories in accordance with SDDS requirements.

### Outreach and consultation
- Outreach activities were conducted to facilitate implementation of the Board’s Seventh Review decisions.
- Five regional outreach seminars were held to obtain feedback from SDDS subscribers on detailed proposals regarding the future of the SDDS and on the SDDS Plus.
- Outreach visits were conducted with capital markets and a number of multilateral organizations.
- Feedback from these outreach exercises has been incorporated into the proposals presented.

### Proposals to Enhance the SDDS
- Key proposed enhancements include:
  - Introducing a more structured timeline for the SDDS nonobservance procedures.
  - Including hyperlinks in the NSDPs to longer time series and more detailed data by end-2012.
  - Adding more structure and focus to the encouraged data category Forward Looking Indicators (FLIs), with particular emphasis on specific FLIs.
  - Deleting the ARC flexibility options from the SDDS, after a transition period, by end-2017.
  - Terminating the posting of the SDDS quarterly update on the Data Standards Bulletin Board (DSBB).
  - Incorporating two data categories, sectoral balance sheets and general government gross debt, on an encouraged basis.

### SDDS Plus: objectives and scope
- Purpose:
  - The SDDS Plus is proposed as an additional tier of the Fund’s Data Standards Initiatives, primarily intended for SDDS subscribers with systemically important financial sectors and to help address data gaps revealed in the global financial crisis.
  - It is designed to enhance and supplement the Fund’s Data Standards Initiatives and not to replace the SDDS.
- Core elements:
  - The SDDS Plus would include all SDDS prescribed data categories and nine additional data categories.
  - The proposed additional data categories cover four macroeconomic sectors:
    - Real sector: sectoral balance sheets.
    - Fiscal sector: general government operations (GGO) and general government gross debt.
    - Financial sector: other financial corporations (OFCs) survey, FSIs, and debt securities.
    - External sector: Coordinated Portfolio Investment Survey (CPIS), Coordinated Direct Investment Survey (CDIS), and Currency Composition of Foreign Exchange Reserves (COFER).
  - To adhere to the SDDS Plus, a country would need to be a subscriber in full observance of the SDDS.
  - Adhering to the SDDS Plus would be voluntary, but once a country adheres, it undertakes to meet the most rigorous data dissemination and data quality standards within the Fund’s Data Standards Initiatives.
  - Modalities for monitoring observance and nonobservance procedures would be similar to those in the SDDS.
- Transition arrangements:
  - The SDDS Plus would initially allow transition periods for up to four of the nine additional data categories through the end of 2017, if an interested country does not fully meet all the requirements at the present time but commits to comply by the end of 2017.
  - Executive Board endorsed a modified staff proposal by deciding to extend the transition period until end-2019 to address several Directors’ concerns about countries’ ability to fully adhere to all the requirements by 2017.

### Resource implications and next steps
- Section VI of the paper discusses resource implications of the staff proposals (details in the main report).
- Section VII of the paper presents issues for discussion (details in the main report).

*Executive Summary, Eighth Review of the Fund’s Data Standards Initiatives*

### 9.      The SDDS legal text was updated to reflect the Executive Board’s decisions

### 9.      The SDDS legal text was updated to reflect the Executive Board’s decisions

### Implementation timeline and publication
- The updated SDDS legal text reflecting Executive Board decisions on the Seventh Review and on Broadening Financial Indicators in the SDDS was published in September 2010.
- Staff notified SDDS coordinators and advised them to begin implementing the enhancements as reflected in the updated legal text "as soon as possible."

### Citations and deviations from internationally accepted statistical methodologies
- Staff posted on the Dissemination Standards Bulletin Board (DSBB) a list of internationally accepted statistical methodologies for each SDDS data category.
- In mid-2009 staff identified where explicit citations of and/or deviations from those methodologies needed to be added to subscribers’ DSBB metadata; SDDS coordinators were informed in the October 2009 monthly observance reports and requested to update metadata promptly.
- Implementation is monitored monthly; successive monthly observance reports provide reminders.

Key statistics and progress:
- As of end-December 2011:
  - Total data category metadata presentations: 1,242 (18 data categories for each of the 69 subscribers).
  - Over 96 percent of the 1,242 data categories’ metadata presentations have explicit references to internationally accepted statistical methodologies and relevant deviations where needed.
  - Citations or deviations still missing for 48 out of the 1,242 data categories, mainly regarding wages, the production index, consumer and producer prices, and population.
- Staff continues to work with subscribers to address outstanding cases.

Notes:
- Three SDDS data categories are excluded from the citation/deviation exercise because no internationally accepted statistical methodology has been fully developed: interest rates, the stock market index, and exchange rates.

### Annual metadata certification
- The Board’s decision at the Seventh Review changed regular SDDS metadata certification from quarterly to annual beginning in 2009.
- Legal text amended to require SDDS subscribers to certify metadata annually, one month after the end of the calendar year.
- First annual certification covered 2009 and was due by January 31, 2010; results were recorded in the Annual Observance Reports for 2009 published on the DSBB at end-May 2010.
- The switch from quarterly to annual certification has been accepted and implemented successfully by all SDDS subscribers.

### Modifications to the Reserves Template
- Modifications to the Data Template on International Reserves and Foreign Currency Liquidity to cover exchange-traded futures settled in domestic currency have been completed.
- As of December 2011, all SDDS subscribers, except one, comply with this data dissemination requirement, which became effective at end-August 2009 (beginning with July 2009 data).
- Note: At time of report preparation, the only outstanding case was scheduled for Board discussion on February 1, 2012.

### Conducting Data Quality Assessments (Data ROSCs and DQAF)
- The Board encouraged subscribers to conduct and disseminate a Data Module of Reports on the Observance of Standards and Codes (Data ROSC) or equivalent every seven-to-ten years.
- Since the Seventh Review:
  - Five Data ROSCs were conducted and disseminated: Australia, Costa Rica, Korea, Mexico, and Russia.
  - One additional Data ROSC (Georgia) was conducted in late 2011.
  - Four subscribers have yet to conduct and disseminate a Data ROSC or equivalent exercise.
  - Five subscribers have outdated ROSCs (completed in 1999 or earlier).
- Staff began updating the July 2003 version of the Data Quality Assessment Framework (DQAF) to incorporate developments including the System of National Accounts 2008 (2008 SNA) and BPM6; the updated DQAF will be available for use in Data ROSCs in 2012.
- Resource constraints:
  - In FY 2011 and FY 2012, available resources allowed STA to undertake up to two Data ROSCs per fiscal year; due to serious budget constraints, further streamlining is likely.
  - Excess demand for Data ROSCs during this period might be accommodated through peer reviews; staff could facilitate by putting interested countries in touch with potential peer reviewers.

### Incorporating Financial Soundness Indicators (FSIs) on an encouraged basis
- A new SDDS data category named “Financial Soundness Indicators” (FSIs) was introduced on an encouraged basis by the Executive Board in March 2010.
- The FSI category encompasses seven FSIs:
  - (i) regulatory tier 1 capital to risk-weighted assets,
  - (ii) regulatory tier 1 capital to assets,
  - (iii) nonperforming loans net of provisions to capital,
  - (iv) nonperforming loans to total gross loans,
  - (v) return on assets,
  - (vi) liquid assets to short-term liabilities, and
  - (vii) net open position in foreign exchange to capital.
- These indicators are encouraged to be disseminated quarterly with one quarter timeliness.
- Subscribers were informed the seven FSIs could be disseminated through the Fund’s FSIs database and on their NSDPs; subscribers disseminating this encouraged category were requested to include a hyperlink on NSDPs to the Fund’s FSIs database.

Key FSI dissemination statistics:
- As of December 2011:
  - 57 of the 69 SDDS subscribers report FSI data to the Fund.
  - 31 SDDS subscribers disseminate FSI data through their NSDPs, either via hyperlinks to country pages in the Fund’s FSI database or by including FSI data directly in their NSDP.
- Observations:
  - Reported FSI datasets may not cover all seven indicators and may have diverse periodicity and timeliness across and within countries.
  - Use of hyperlinks to incorporate FSIs has reduced reporting burdens and is leading to faster and broader dissemination.

### Dissemination on external debt by remaining maturity (encouraged)
- As of December 2011, 13 of the 69 SDDS subscribers disseminate data on external debt by remaining maturity.
- Four countries (Brazil, India, Israel, and Ukraine) disseminate external debt by remaining maturity data on web pages hyperlinked to their NSDPs.
- Nine SDDS subscribers (Chile, Croatia, Egypt, Kazakhstan, Kyrgyz Republic, Peru, Romania, Slovak Republic, and Uruguay) disseminate these data within the Quarterly External Debt Statistics database developed and maintained by the World Bank.

### Quarterly International Investment Position (IIP)
- The Board endorsed changing the IIP dissemination requirement from annual to quarterly with a maximum lag of one quarter, with a transition period of four years; the transition period is scheduled to end on September 30, 2014.
- By end-September 2014 all SDDS subscribers would need to disseminate quarterly IIP data on their NSDPs for the first and second quarters of 2014.
- As of December 2011:
  - 47 of the 69 SDDS subscribers already report quarterly IIP data (close to 70 percent).
- Staff produced guidance to support compilation:
  - In March 2011 staff published "Quarterly International Investment Position Statistics: Data Sources and Compilation Techniques" and made it available in English on the IMF website.
  - Staff is available to provide technical assistance to members to support compilation and dissemination of quarterly IIP data.

### GDDS developments and alignment with SDDS
- In December 2008 the Board approved recommendations to place greater emphasis on data dissemination in the GDDS and to facilitate graduation to the SDDS.
- Staff actions to align GDDS with SDDS include:
  - Reformatting GDDS metadata into the DQAF (SDDS format).
  - Aligning GDDS data categories to the SDDS.
  - Promoting annually updated national plans for improvement.
  - Developing National Summary Data Pages (NSDPs) and Advance Release Calendars (ARCs) as required in the SDDS.
- Status and participation:
  - The GDDS remains a non-monitored system.
  - Metadata on the DSBB have been reformatted into the DQAF in cooperation with GDDS country authorities.
  - Seven GDDS countries have established both NSDPs and ARCs; a further six countries have established NSDPs; one country adopted an ARC.
  - Participation in the GDDS increased from 94 to 102 since the Seventh Review.
  - Twelve countries joined GDDS; four countries (Georgia, Jordan, Malta, and Macedonia, FYR) graduated from GDDS participation to SDDS subscription.

Table: Countries that joined the GDDS since the 7th Review
- Algeria — April 2009
- Serbia — May 2009
- Libya — December 2009
- Iraq — December 2009
- Haiti — December 2009
- Bhutan — May 2010
- Kosovo — April 2011
- Solomon Islands — June 2011
- Guyana — June 2011
- Burundi — August 2011
- Maldives — October 2011
- Montenegro — December 2011

Planned GDDS objectives going forward:
- (i) Further increase GDDS participation, especially in Asia/Pacific and Middle East/Central Asia.
- (ii) Encourage GDDS participants to update their plans for improvement at least annually.
- (iii) Encourage GDDS participants to update their metadata on a best effort basis.
- (iv) Assist GDDS participants in implementing NSDPs and ARCs.
- (v) Assist GDDS participants who want to graduate to the SDDS.

### Outreach activities
- Post-Seventh Review outreach included six GDDS and three SDDS workshops held in eight countries (most open to neighboring countries).
- GDDS workshops reviewed modifications to GDDS metadata and the incorporation of SDDS elements; they focused on data category alignment, newly encouraged periodicity and timeliness, NSDPs, and ARCs.
- Donor support:
  - The GDDS outreach program received significant donor support from the United Kingdom Department of International Development (DFID) and the Japan Administered Account for Selected IMF Activities (AASFA); five of the six GDDS workshops since the Seventh Review were funded by these donors.

GDDS workshops/sessions since the 7th Review (dates and locations):
- 3/17/2009 — Bahrain — GDDS Workshop
- 5/12/2009 — Namibia — DFID: STE GDDS Regional Workshop
- 8/31/2010 — Kenya — DFID III: Training: GDDS Workshop
- 9/7/2010 — Botswana — DFID III: Training: GDDS Workshop
- 9/21/2010 — Azerbaijan — AASFA: Training: GDDS Workshop
- 11/16/2010 — Ghana — DFID III: Training: GDDS Workshop

- During September and October 2011, five regional outreach seminars were held to get feedback from SDDS subscribers and certain GDDS participants on detailed proposals regarding the future of the SDDS and on the SDDS Plus.
  - These seminars were held in Indonesia (11 countries and SESRIC), Czech Republic (16 countries), Kuwait (6 countries), Peru (5 countries), and Switzerland (10 countries).
- Staff also conducted outreach visits and meetings with capital market participants and multilateral organizations to understand data needs and ensure relevance of data standards; feedback was incorporated into the proposals outlined in the Eighth Review.
  - Outreach meetings included meetings with major banks, rating agencies, and multilateral institutions in Asia, Europe, and North America.

*Source: IMF content unit _013112 - 9.      The SDDS legal text was updated to reflect the Executive Board’s decisions*

### Box 1. Donor Funded GDDS Projects

### Box 1. Donor Funded GDDS Projects

### United Kingdom’s DFID financed GDDS project for Anglophone Africa — Strengthening the Data Framework and Dissemination Modules

- One of the six GDDS workshops conducted since the Seventh Review was financed under Phase II of the DFID GDDS Project for Anglophone Africa, entitled “Modules for Strengthening Statistics” (2006-2009).
- DFID financed another three GDDS workshops under the “Strengthening the Data Framework and Dissemination Modules” through the Enhanced Data Dissemination Initiative (EDDI), a follow-up project launched to further improve macroeconomic statistics in 23 African countries.
- Workshop contributions and staff actions:
  - Contributed to efforts to strengthen statistical systems and improve data dissemination.
  - Worked with participants to develop NSDPs, ARCs, and plans for improvement.
  - Provided electronic draft NSDPs specially prepared for each participating country.
  - Demonstrated effective ARC design while emphasizing their role in enhancing data utility to users.
  - Urged countries to update their plans for improvement and emphasized the importance of updating metadata on a regular basis.
- Results and timelines:
  - After three regional GDDS workshops in the first year focusing on training to develop NSDPs, ARCs, and updating plans for improvement, five additional GDDS countries have completed and began publishing NSDPs and four additional countries have completed and began publishing ARCs.
  - These accomplishments are both ahead of schedule with respect to the logical framework milestones for 2012.
  - In August 2011, Burundi began participating in the GDDS after a mission assisted authorities to develop metadata and plans for improvement; this is in advance of the logical framework 2012 milestone.

### GDDS project funded through Japan’s AASFA (formerly JSA)

- In 2011, STA received external financial support from the Japan Administered Account for Selected IMF Activities (AASFA) for a project to substantially increase GDDS participation among countries in the Asia/Pacific region and targeted member countries in the Middle East/Central Asia region.
- Target countries:
  - Six Pacific Island countries: Marshall Islands, Federated States of Micronesia, Palau, Papua New Guinea, Samoa, and Tuvalu.
  - Lao PDR and Timor Leste.
  - Iran, Turkmenistan, and Uzbekistan.
- Project focus and outputs:
  - Perform diagnostics of each target country’s macroeconomic statistical systems.
  - Develop plans for statistical improvements designed to serve as the basis for future statistical development.
  - Post metadata and links on the IMF’s website, including information on participants’ data compilation and dissemination practices.
  - Develop NSDPs and ARCs.

### Proposals to Enhance the SDDS — key proposals, timelines, and rationale

- Context:
  - The SDDS was established after the financial crises of the 1990s to promote transparency; recent global financial crisis highlighted the need for high quality, comparable, and timely data for early detection of risks and vulnerabilities.
  - The Executive Board, in the Interim Report on February 28, 2011, endorsed the proposal to enhance the SDDS.
  - Five regional seminars were held with 45 SDDS subscribers and 3 GDDS participants to gather feedback; participants were overall supportive of staff’s proposed modifications.

#### A. Clarifying the SDDS Nonobservance Procedures — time-based process and definitions

- Rationale:
  - Current nonobservance procedures lack a strict timeline and allow latitude in interpretation, undermining SDDS credibility.
  - A clearly defined timeline would help reduce reputational risk for the SDDS and the Fund.
- Proposed time-based nonobservance procedure (maximum time lags and steps):
  - Technical discussions between staff and the SDDS coordinator start immediately after a deviation is detected.
    - Experience indicates most issues are resolved at this stage within a short time period.
  - If an issue considered serious and not resolved through technical discussions within 3 months for monthly data or 6 months for quarterly and annual data, the SDDS Coordinator would be notified by staff of the initiation of the nonobservance procedures.
  - Communication with the subscriber’s Executive Director by staff will start within 3 months after the notification of the SDDS coordinator; if unresolved,
  - A letter to the subscriber’s Governor of the Fund will be sent, by Management, within 3 months after the communication with the Executive Director, if still unresolved,
  - A note on the DSBB will be posted within 3 months after the letter to the Governor of the Fund indicating the Fund staff’s decision that the subscriber is not in observance and authorities’ reactions and plans, if any.
  - Board discussion will take place up to 12 months after posting the note on the DSBB; a Board paper will propose deleting the metadata of the subscriber from the DSBB, and effectively terminating the subscription.
  - Re-subscription: country can re-subscribe by informing the Director of STA in writing; once staff is satisfied requirements are met, staff will inform the country it may proceed to inform the Secretary of the IMF of its subscription.
- Trigger and special cases:
  - A “serious deviation” involves data not publicly disseminated, incomplete data publicly disseminated, or frequent delays in public dissemination of SDDS required data.
  - Serious deviations could also arise when other issues are not resolved through technical discussions within six months.
  - Stronger requirements apply for timeliness of the Reserves Template and External Debt categories with limited flexibility.
- Overall timing:
  - The revised rules would limit the maximum time lags of the nonobservance procedures to 21 months from SDDS coordinator notification to bringing the matter to the Executive Board.

#### B. Hyperlinks to time series on NSDPs — improving access to longer time series

- Proposal:
  - NSDPs should contain hyperlinks to longer time series and more detailed data via the NSDPs by end-2012.
  - Rationale: NSDPs currently contain only the two most recent observations (time “t” and “t-1”) for each variable; hyperlinks would provide quick access to more detailed and longer time series.
- Transition and current progress:
  - Proposal for the new requirement is to provide time series for all data categories after a transition period with hyperlinks implemented by end-2012.
  - Staff review and actions:
    - Staff reviewed time series currently hyperlinked through NSDPs and searched countries’ statistical websites for relevant time series databases.
    - When appropriate hyperlinks were discovered, staff forwarded these hyperlinks and recommended their inclusion on NSDPs.
  - Result:
    - Time series data hyperlinks for more than 75 percent of SDDS data categories already appear on subscribers’ NSDPs.

#### C. Streamlining the SDDS — FLIs and ARC flexibility options

- Two aspects identified as not widely applied or used: Forward Looking Indicators (FLIs) data category and ARC flexibility options.
- Structuring Forward Looking Indicators:
  - Current status: Only 13 subscribers provide data on FLIs through their NSDPs.
  - Proposal: Add more structure and focus to the encouraged FLIs category with emphasis on specific FLIs:
    - Industrial production or investment (such as the Purchasing Managers’ Index—PMI).
    - Retail sales.
    - Inflationary expectations.
- Deleting ARC Flexibility options:
  - Current feature: ARC flexibility allows “flexibility for the distribution of the release dates” for up to two data categories; NLT or range of dates can be indicated in ARCs and up to two ARC flexibility options invoked in advance.
  - Proposal: Delete the ARC flexibility options from the SDDS after a transition period, by end-2017.
  - Rationale:
    - ARC flexibility options deprive users of an exact release date and dilute usefulness of an ARC.
    - Only 14 SDDS subscribers have ever invoked these options; only ten subscribers currently use ARC flexibility options covering 13 different variables.
  - Clarifications:
    - Proposal does not change other flexibility options on periodicity and/or timeliness; SDDS will continue to allow up to two periodicity/timeliness flexibility options per subscriber.
    - Proposal does not affect the targeted flexibility option on general government operations (GGO) for subscribers using GFSM 2001 methodology.

#### D. Reference to International Statistical Methodologies in the SDDS Legal Text

- Proposal:
  - Update the SDDS legal text to further encourage subscribers to adopt the latest internationally accepted statistical methodologies in their compilation and dissemination practices.
- Implications:
  - Adoption of updated methodologies results in:
    - Changes in definitions for key data items (example: gross assets and gross liabilities in the IIP differ between BPM6 and BPM5 due to treatment of direct investment).
    - Changes in account titles (example: “income” and “current transfers” in BPM5 renamed as “primary income” and “secondary income” in BPM6).
  - These changes will affect data disseminated under the GDDS and SDDS—including IIP and external debt data categories—and reserves data for economies in currency unions.
  - Comprehensive information on changes arising from adoption of updated methodologies will be presented with other legal text changes to the Board for approval during the second half of 2012.

#### E. Termination of SDDS Quarterly Update

- Proposal:
  - Terminate the posting of the SDDS quarterly update on the DSBB.
- Rationale:
  - The quarterly update (started in 2001) reported observance status and punctuality of data releases but, since 2007, annual observance reports provide more detailed and comprehensive information on observance by each subscriber.
  - Therefore staff proposes to terminate preparation and posting of the SDDS quarterly update.

*Source: Box 1. Donor Funded GDDS Projects, _013112 - Box 1. Donor Funded GDDS Projects*

### 45.      Enhancements to the SDDS if the proposed SDDS Plus data categories are

### _013112 - 45.      Enhancements to the SDDS if the proposed SDDS Plus data categories are

### Enhancements to the SDDS if SDDS Plus categories are approved
- Staff proposes that two SDDS Plus data categories be included in the SDDS as “encouraged” data categories:
  - Sectoral balance sheets (see paragraph 54).
  - General government gross debt at nominal value (see paragraph 56).

### Following up on enhancements to the GDDS (paras 46–47)
- No further enhancements are proposed for the GDDS at this time.
- Staff objectives to serve broad GDDS membership:
  - (i) Further increasing GDDS participation, especially in the Asia/Pacific and Middle East/Central Asia regions.
  - (ii) Encouraging GDDS participants to update their plans for improvement at least annually.
  - (iii) Encouraging GDDS participants to update their metadata on a best effort basis.
  - (iv) Assisting in the implementation of NSDPs and ARCs, on an encouraged basis.
- Staff view on GDDS plans for improvement:
  - Annually updated GDDS plans could be leveraged better to focus and prioritize technical assistance in statistics (from the Fund and donors) and to strengthen surveillance of GDDS member countries.
  - Staff will raise incorporation of these issues and plans into Article IV staff reports at the time of the Eighth Review of Data Provision to the Fund for Surveillance Purposes scheduled for September 2012.

### The SDDS Plus: objectives and rationale (paras 48–50)
- Purpose and focus:
  - SDDS Plus would be a new tier of the Fund’s Data Standards Initiatives emphasizing countries with systemically important financial sectors and integral roles in international financial markets.
  - Primary focus on a target group of countries that play a leading role in international capital markets and have institutions interconnected through cross-border operations, interbank operations, security lending, repurchase agreements, and derivatives contracts.
  - Aim: improve data transparency for a narrower range of target economies to help strengthen the international financial system.
- Background and links to G-20 Data Gaps Initiative:
  - Ongoing IMF/IAG work and FSB Secretariat support to address data gaps identified in the G-20 Data Gaps Initiative informed SDDS Plus development.
  - Data gaps identified in three main areas:
    - Build-up of risk in the financial sector (both bank and nonbank);
    - Cross-border financial linkages: investment positions and exposures;
    - Monitoring of vulnerabilities of domestic economies to shocks.

### Developments since the Interim Report (paras 51–52)
- Outreach and feedback:
  - Five outreach seminars were conducted with SDDS subscribers (and certain GDDS participants) and meetings with international organizations and capital market participants.
  - Participants overwhelmingly supported addressing G-20/IMFC Data Gaps Initiative data gaps and creation of SDDS Plus.
  - Data categories discussed with respect to coverage, periodicity, and timeliness; most outreach participants supported inclusion in SDDS Plus.
  - Summary results of consultative process are referenced in Annex I (not reproduced here).

### SDDS Plus design and transition provisions (para 53)
- SDDS Plus composition:
  - Includes all SDDS prescribed data categories plus nine additional proposed data categories (see Annex II).
- Transition arrangements:
  - Initially allow transition plans for up to four of the data categories through the end of 2017 if an interested country does not fully meet all requirements but commits to comply by end-2017.*
  - No flexibility options proposed for SDDS Plus adherents regarding required coverage, timeliness, and periodicity (i.e., limited to required standards).
  - SDDS Plus adherents expected to keep pace with developments and best statistical practices in each data category.
- Scope of proposed data categories: cover four macroeconomic sectors — real sector, fiscal sector, financial sector, external sector.

*Note: Executive Board endorsed a modified staff proposal by deciding to extend the transition period until end-2019 to address several Directors’ concerns about countries’ ability to fully adhere to all the requirements by 2017.

### Real sector — Sectoral Balance Sheets (para 54)
- Rationale:
  - Sectoral balance sheet data for financial assets and liabilities enhance information about the non-depository financial corporations sub-sector and general government debt liabilities, and financial linkages across sectors.
  - Many economies already produce sectoral balance sheets covering financial and nonfinancial assets, but coverage varies in sector detail and breakdowns of nonfinancial assets and financial instruments.
  - Transition to the 2008 SNA presents opportunity to improve and standardize dissemination.
  - A majority of targeted countries have work programs to transition to the 2008 SNA by the end of 2014 (consistent with Annex III).
  - At the beginning countries will provide the data according to instrument on a best effort basis.*
- Requirements:
  - Coverage: Minimum set of internationally comparable sectoral balance sheets for financial assets and liabilities with a focus on sub-sector details of financial corporations, and standard 2008 SNA instrument classification.
  - Periodicity: Quarterly data.
  - Timeliness: Data dissemination within 1 quarter after the end of the reference period.

*Note: The Executive Board endorsed a modified staff proposal removing the words “at the beginning” to address some Directors’ concerns.

### Fiscal sector — General Government Operations (GGO) (para 55)
- Rationale:
  - GFSM 2001 methodology widely used; 96 per cent of SDDS subscribers report GGO data in GFSM 2001 presentational format (published in the GFS Yearbook).
  - SDDS Plus proposes dissemination of GGO data in GFSM 2001 presentational format.
  - Quarterly GGO could be strengthened in periodicity and timeliness, in line with quarterly national accounts; financial balance sheets for general government also required (as part of sectoral balance sheets).
  - Quarterly data may use different methods from annual data, may be less detailed and more subject to revisions.
  - Fund staff plans to release a draft guide to quarterly compilation techniques later this year to assist countries (timing per source).
- Requirements:
  - Coverage: GGO data presented in the GFSM 2001 format. Recording basis could be cash, modified accrual, or accrual (full adoption of GFSM 2001 methodology will not be required).
  - Periodicity: Quarterly data.
  - Timeliness: Data dissemination within 4 months after the end of the reference period.*

*Note: The Executive Board endorsed a modified staff proposal extending the deadline to 12 months to address some Directors’ concerns about the quality of the data within 4 months after the reference period.

### Fiscal sector — General Government Gross Debt (para 56)
- Rationale:
  - The international financial crisis highlighted importance of reliable and timely statistics on general government (and public sector) debt for fiscal and external sustainability analysis.
  - Proposal: separate SDDS Plus category for general government total gross debt, at nominal value, classified by debt instrument, currency of denomination, and residence of the creditor.
  - Proposed memorandum items:
    - Total debt securities at market value (also in sectoral balance sheets).
    - Classification by remaining maturity of general government debt securities and loans.
  - These items are a subset of the public sector debt statistics template adopted by the Task Force on Finance Statistics (TFFS) and the World Bank-IMF-OECD public sector debt statistics database; they overlap with sectoral balance sheets and external debt.
- Requirements:
  - Coverage: General government total gross debt at nominal value, classified by debt instrument, currency of denomination, and residence of the creditor; memorandum items — general government debt securities and loans classified by remaining maturity, and total debt securities at market value (see Annex IV).
  - Periodicity: Quarterly data.
  - Timeliness: Data dissemination within 4 months after the end of the reference period.*

*Notes:
- Sometimes, face value is used as a proxy for nominal value.
- The Executive Board endorsed a modified staff proposal by indicating that the memorandum items should be provided on a best effort basis to address some Directors’ concerns about the availability of the data.

### Financial sector — Other Financial Corporations (OFCs) survey (para 57)
- Rationale:
  - OFCs data important for analyzing capital flows and assessing financial stability; inclusion allows integrated monetary and financial data covering entire financial sector.
  - Coverage follows the Monetary and Financial Statistics Manual 2000 (MFSM 2000) and successors.
- Requirements:
  - Coverage: OFCs survey covering a minimum set of assets and liabilities compatible with the MFSM (see Annex V).
  - Periodicity: Quarterly data.
  - Timeliness: Data within 1 quarter after the end of the reference period.

### Financial sector — Financial Soundness Indicators (FSIs) (para 58)
- Rationale:
  - Strong data category for SDDS Plus. Proposed inclusion:
    - Six of the seven FSIs currently encouraged in the SDDS (exception: “net open position in foreign exchange to capital”).
    - One additional indicator related to residential real estate prices.
  - Many target countries already voluntarily disseminate six or seven FSIs with at least quarterly periodicity and one quarter timeliness (excluding net open position in foreign exchange to capital).
  - Real estate pressures in the global financial crisis motivate inclusion of a residential real estate price indicator.
  - Countries must explain residential real estate price methodology in publicly available metadata; comparability may be limited.
- Requirements:
  - Coverage: All FSIs encouraged under the SDDS would be required except the “net open position in foreign exchange to capital.” In addition, the FSI on residential real estate prices would be required.
  - Periodicity: Quarterly data.
  - Timeliness: Data within 1 quarter after the end of the reference period.

### Financial sector — Debt Securities (para 59)
- Rationale:
  - Handbook on Securities Statistics (BIS, ECB, IMF) provides guidance on compilation and dissemination of securities data (issuance and holdings).
  - From-whom-to-whom data by issuer and holder permit analysis of relationships between institutional sectors/sub-sectors and non-residents, shedding light on sectoral asset/liability compositions and vulnerabilities.
  - As a new data category, SDDS Plus would require countries to provide stocks only.
  - Many targeted countries indicated they already compile most required data.
- Requirements:
  - Coverage: Handbook on Securities Statistics coverage by issuer and holder on a from-whom-to-whom basis, as outlined in Part 2 (Section 5, especially the time series presentation in Table 5.2 (see Annex VII)).*
  - Periodicity: Quarterly data.
  - Timeliness: Data within one quarter after the end of the reference period.

*Note: References to specific annexes and external handbook sections are as cited in the source text.

*End of provided content unit.*

*Italicized source attribution: IMF staff paper — sections on SDDS enhancements, GDDS follow-up, and SDDS Plus proposal (paras 45–59 of the chapter).*

### 60.      Given the importance of monitoring cross-border interconnectedness, it is

### _013112 - 60.      Given the importance of monitoring cross-border interconnectedness, it is

### Coordinated Portfolio Investment Survey (CPIS)
- Purpose: Collect information on the stock of cross-border holdings of securities—equity securities and long- and short-term debt securities valued at market prices prevailing at the end of June and December, broken down by the economy of residence of the issuer.
- IMF action: Will start conducting the CPIS on a semi-annual periodicity beginning in June 2013 (annual data are presently collected).
- Core vs supplementary: In addition to the core (required) set of data, the CPIS encourages reporting of supplementary information; results form a global database with capacity for showing bilateral and partner economy data from creditor or debtor perspective.
- Coverage requirement for SDDS Plus: Participation in the CPIS by providing at least the core (required) set of data (see the CPIS Data Template).
- Periodicity requirement for SDDS Plus: Semi-annual data, as of end of June and December each year, beginning in 2015.
- Timeliness requirement for SDDS Plus:
  - Data to be reported to the IMF within 7 months after the end of the reference period (with a view to IMF dissemination well within 12 months from the reference period).
  - Countries should disseminate these data on their NSDPs once disseminated by the IMF or provide a hyperlink on their NSDPs to the data.
- Executive Board modification: Added sentence—“Debt securities should be presented at market value, but can be presented at nominal value or both. Countries are required to indicate the valuation method in the metadata.”

### Coordinated Direct Investment Survey (CDIS)
- Purpose: Improve the quality of overall direct investment position statistics in the IIP and by immediate counterpart economy; data broken down between equity and debt, and for debt further broken down between claims and liabilities; additional encouraged breakdowns include fellow enterprises vs direct investors/direct investment enterprises and resident financial intermediaries separately; metadata provided.
- Data storage and releases: Cross-country data stored in groups of tables showing inward direct investment, outward direct investment, and metadata; inter- and intra-regional inward and outward direct investment included from June 2011 release.
- Coverage requirement for SDDS Plus: Participation in the CDIS by providing for inward direct investment, the value of outstanding end-year positions by immediate (first) direct investor, by counterpart economy, for both equity and debt.
- Periodicity requirement for SDDS Plus: Annual data, as of end-December each year.
- Timeliness requirement for SDDS Plus:
  - Preliminary data to be reported to the IMF within nine months after the end of the reference year and revised data within 15 months after the end of the reference year (with a view to have the IMF disseminate the preliminary data within 12 months of the reference year and 18 months for revised data).
  - Countries should disseminate these data on their NSDPs once it is disseminated by the IMF or provide a hyperlink on their NSDPs to the data.
- Executive Board modification: Removed the requirement to report revised data within 15 months.

### Currency Composition of Foreign Exchange Reserves (COFER)
- Proposal: Participation in the COFER database included in SDDS Plus; a country supplies the required data to the IMF quarterly. Proposal does not require public dissemination of the currency-level data; adherence would make public the country's participation in COFER.
- Periodicity requirement for SDDS Plus: Quarterly data.
- Timeliness requirement for SDDS Plus: Quarterly data to be reported to the IMF within one quarter after the end of the reference period.

### Transition periods
- Intended use: Allow countries to adhere to SDDS Plus through 2017 even though they do not meet all requirements at present.
- Conditions:
  - Countries could adhere if they meet all SDDS Plus requirements, or, until end-2017, be allowed to adhere if they meet requirements for fewer than all nine data categories and apply transition periods for up to four data categories.
  - No transition period would extend beyond 2017.
  - Use of a transition period must include a description of plans to meet SDDS Plus requirements by no later than end-2017 in the adherent’s metadata for the respective category or categories.
  - Thus, by end-2017, all SDDS Plus adherents should meet requirements for all data categories.
- Executive Board modification: Endorsed extension of the transition period until end-2019 to address directors’ concerns about ability to fully adhere by 2017.

### Governance elements and modalities of SDDS Plus
- Adherents:
  - To adhere to SDDS Plus, a country would need to be a subscriber in observance of the SDDS.
  - Adherence is voluntary; once a country adheres it undertakes to meet the most rigorous data dissemination and data quality standards within the Fund’s Data Standards Initiatives.
  - Open to all SDDS subscribers; primarily targets subscribers with systemically important financial sectors.
  - Adherence process: country informs Director of STA in writing; staff verifies requirements; staff informs authorities they may inform Secretary of IMF of adherence; public notice posted on IMF’s DSBB.
  - Legal text: If Board approves SDDS Plus, legal text to be prepared and submitted to Board for approval in second half of 2012; following staff visits, consultations, and IT development, countries may indicate intention to adhere immediately after legal text approval; official launch thereafter.
- Modalities:
  - Monitoring and nonobservance procedures similar to SDDS; SDDS Plus would use NSDP and ARC mechanisms from SDDS.
  - SDDS Plus requires hyperlinks on NSDPs that provide users with access to time series with a minimum length: five years of data for well established categories; newly developed categories require hyperlinks to data since series creation.
  - Data categories have specified periodicity and timeliness requirements.
- Required data categories: SDDS Plus contains only required data categories; includes all existing SDDS requirements; none categorized as “encouraged.”
- Metadata: Associated metadata required for each data category; metadata report formats and certification follow SDDS modalities.
- Modification process: Changes to SDDS Plus data categories follow same process as SDDS—IMF Executive Board decision simultaneous with normal periodic reviews.

### Proposals not included (dropped for now)
- Rationale: Significant challenges to compile or monitor dissemination in foreseeable future; feedback from subscribers, agencies, and stakeholders.
- Dropped proposals:
  - Adopting the five internationally accepted statistical methodologies (2008 SNA, CPIM 2004, GFSM 2001, MFSM 2000, and BPM 6). Rationale: subscribers’ reservations; several methodologies recently revised or being updated; difficult to commit to full implementation now. Staff will monitor adoption and subscribers provide explicit references and deviations in metadata.
  - Sectoral balance sheets—nonfinancial assets. Rationale: participants reported difficulty and high cost to collect data on all nonfinancial assets on a sectoral basis. Staff may revisit later once more countries implement full sectoral balance sheet.
  - International banking statistics as reported to the BIS. Rationale: BIS not supportive of including BIS-collected data in SDDS Plus due to monitoring challenges across international agencies and voluntary nature of BIS exercise. STA continues cooperation with BIS to close data gaps.
  - Data on systemically important global financial institutions. Rationale: unresolved issues on detail, reporting, access, and data-sharing arrangements; FSB to finalize common template, data-sharing among supervisory authorities and central data hub in 2012 with phased collection (phase 1 late 2012; fully operational by end-2014). Staff decided not to proceed with inclusion at this time but will return with a specific proposal by next review.

### Resource implications
- General: Enhancements to SDDS will require additional resources, at least initially; staff cognizant of resource costs incurred by countries and the Fund.
- Specific resource needs:
  - Adding hyperlinks to available time series on NSDPs for all data categories would need implementation by subscribers and checking by Fund staff, at least initially.
  - Implementation of a required timeline for nonobservance procedures would require staff time and IT budget to develop automated mechanisms.
  - Proposal to remove ARC flexibility option in SDDS would involve minimal resource costs.
- G-20 and methodology implementation: As part of G-20 Data Gaps Initiative and implementation of 2008 SNA and BPM6, many countries have already incurred or are incurring fixed costs associated with SDDS Plus adherence.
- Potential adherents: Most of the G-20/IMFC economies and other countries with strong linkages to systemically important global financial institutions acknowledge need for greater information on financial interconnectedness and consider reporting costs outweighed by benefits.
- Technical assistance: Support to assist some subscribers with implementation would increase demand for STA technical assistance.
- Monitoring/implementation cost: Adherence, implementation, and monitoring of a new SDDS Plus standard (with all data categories prescribed) likely to require additional financial and staff resources, especially initially.
- STA budget projection for FY2013: Requirements for the SDDS Plus equivalent to 1 full time equivalent staff position and 0.5 full time equivalent contractual position.
- Review timing proposal: Ninth Review of the Data Standards Initiatives proposed to be held within five years.
- Executive Board modification: Endorsed modified staff proposal to hold next review in two rather than five years.

### Issues for discussion (questions posed to Directors)
- Do Directors agree with implementation of a time-based SDDS nonobservance procedure (paragraph 31)?
- Do Directors agree that NSDPs should contain hyperlinks to time series for all data categories by end-2012 (paragraph 34)?
- Do Directors agree that the encouraged data category forward looking indicators be structured and focused to provide useful insights into the developments of an economy (paragraph 37)?
- Do Directors agree that the flexibility option for the distribution of advance release dates be deleted from the SDDS by end-2017 (paragraph 40)?
- Do Directors agree with proposal to terminate posting of the SDDS quarterly update on the DSBB (paragraph 44)?
- Do Directors agree with proposal to add sectoral balance sheets and general government gross debt at nominal value to the SDDS data categories on an encouraged basis (paragraph 45)?
- Do Directors agree that SDDS Plus include the nine proposed data categories and related coverage, periodicity, and timeliness (paragraphs 53–62)?
- Do Directors agree with allowing countries to apply transition periods for up to four out of the nine proposed data categories until end-2017 (paragraph 63)?  
  - Note: Executive Board endorsed extension of transition period until end-2019.
- Do Directors agree with the proposed governance elements and modalities of the SDDS Plus (paragraphs 64–66)?
- Do Directors agree with timing of the next review of the Fund’s Data Standards Initiatives (paragraph 70)?
- Legal documents: Depending on Directors’ discussion outcomes, amendments to the SDDS Annex and new legal text for SDDS Plus will be prepared and circulated to the Board for approval.

### Outreach feedback (summary tables in annex)
- Feedback from Target Countries (total number of target countries is 24):
  - Sectoral Balance Sheets: Number approving 13 of 16 respondents; Percent Approval of Total Respondents 81
  - General Government Operations: 10 of 16; Percent Approval 63
  - General Government Debt: 9 of 17; Percent Approval 53
  - Other Financial Corporations: 10 of 16; Percent Approval 63
  - Debt Securities: 11 of 16; Percent Approval 69
  - Financial Soundness Indicators: 11 of 16; Percent Approval 69
  - Coordinated Portfolio Investment Survey: 15 of 16; Percent Approval 94
  - Coordinated Direct Investment Survey: 15 of 16; Percent Approval 94
  - Currency Composition of Foreign Exchange Reserves: 13 of 16; Percent Approval 81
- Feedback from Outreach Seminar Participants (48 countries participated):
  - Sectoral Balance Sheets: 29 of 45; Percent Approval 64
  - General Government Operations: 24 of 43; Percent Approval 56
  - General Government Debt: 9 of 17; Percent Approval 53
  - Other Financial Corporations: 27 of 46; Percent Approval 59
  - Debt Securities: 33 of 46; Percent Approval 72
  - Financial Soundness Indicators: 37 of 47; Percent Approval 79
  - Coordinated Portfolio Investment Survey: 38 of 47; Percent Approval 81
  - Coordinated Direct Investment Survey: 40 of 47; Percent Approval 85
  - Currency Composition of Foreign Exchange Reserves: 28 of 47; Percent Approval 60

*Source: IMF staff paper content provided in the supplied PDF excerpt.*

### Annex II. SDDS Plus Data Cover

### Annex II. SDDS Plus Data Coverage, Periodicity, and Timeliness

### Real Sector
- GDP
  - Coverage (Prescribed): 
    - GDP in current prices and GDP volume by production approach, with disaggregated components; or
    - GDP in current prices and GDP volume by expenditure category, with disaggregated components
  - Periodicity: Q
  - Timeliness: Q
- Production index/indices
  - Coverage (Prescribed): Industrial, primary commodity, or sector, coverage as relevant
  - Periodicity: M (as relevant)
  - Timeliness: 6W (as relevant) (M encouraged)
- Sectoral Balance Sheets
  - Coverage (Prescribed): Sectoral stocks of financial assets and liabilities
  - Periodicity: Q
  - Timeliness: Q
- Labor market
  - Coverage (Prescribed): Employment, as relevant; Unemployment, as relevant; Wages/earnings, as relevant
  - Periodicity: Q (as relevant)
  - Timeliness: Q (as relevant)
- Price indices
  - Coverage (Prescribed): Consumer prices; Producer or wholesale prices
  - Periodicity: M
  - Timeliness: M

### Fiscal Sector
- General government operations (or public sector operations, as relevant)
  - Coverage (Prescribed): Statement of Government Operations in the Government Statistics Manual 2001 (GFSM 2001) (see Table 4.1)
  - Periodicity: Q
  - Timeliness: 4M*
  - Note: * The Executive Board endorsed a modified staff proposal extending the deadline to 12 months to address some Directors’ concerns about the quality of the data within 4 months after the reference period.
- General government gross debt
  - Coverage (Prescribed): Annex IV
  - Periodicity: Q
  - Timeliness: 4M
- Central government operations (GFSM 1986 framework) — for subscribers using the GFSM 1986 framework:
  - Coverage (Prescribed): revenue; expenditure; balance (deficit/surplus); aggregate financing, disaggregated by:
    - domestic financing (bank, nonbank),
    - foreign financing;
    - If disaggregation by domestic (bank, nonbank) and foreign financing is not feasible, disaggregated by:
      - maturity, and either instrument, or currency of issue
  - Periodicity: M
  - Timeliness: M
- Central government debt
  - Coverage (Prescribed): Total, with disaggregated components by maturity; by residency (domestic, foreign); or by instrument; or by currency of issue. Non-central-government debt guaranteed by central government, as relevant. For GFSM 2001 framework, see Tables 4.1a and 4.1d of the SDDS Guide.
  - Periodicity: Q
  - Timeliness: Q

### Financial Sector
- Depository corporations survey (formerly Analytical accounts of banking sector)
  - Coverage (Prescribed): Broad money (for example, M3); Domestic claims, disaggregated into:
    - (1a) net claims on general government (covering central, state, and local governments); or
    - (1b) claims on nonfinancial public sector (if public sector operations represent the comprehensive framework for the fiscal sector); and
    - (2) claims on other resident sectors; and Net foreign assets or Total foreign assets; Total foreign liabilities
  - Periodicity: M
  - Timeliness: M
- Central bank survey (formerly analytical accounts of the central bank)
  - Coverage (Prescribed): Monetary base; Domestic claims, disaggregated into: (1a) net claims on general government (covering central, state, and local governments), or (1b) claims on nonfinancial public sector (if public sector operations represent the comprehensive framework for the fiscal sector); and (2) claims on all other resident sectors; and Net foreign assets or Total foreign assets; Total foreign liabilities
  - Periodicity: M (W encouraged)
  - Timeliness: 2W (W encouraged)
- Other financial corporations survey
  - Coverage (Prescribed): Net foreign assets; Claims on nonresidents less: Liabilities to nonresidents; Domestic claims; Net claims on central/general government (Claims on central/general government less: Liabilities to central/general government); Claims on depository corporations; Claims on other sectors; Liabilities to depository corporations; Other domestic liabilities (except those included in Other Items Net); Shares and other equity; Other Items (Net)
  - Periodicity: Q
  - Timeliness: Q
- Interest rates
  - Coverage (Prescribed): Short-term and long-term government security rates; Policy-oriented rate (for example, central bank lending rate)
  - Periodicity: D
  - Timeliness: 3/
- Financial soundness indicators (FSIs)
  - Coverage (Prescribed): 
    - Regulatory Tier 1 capital to risk-weighted assets
    - Regulatory Tier 1 capital to assets
    - Nonperforming loans net of provisions to capital
    - Nonperforming loans to total gross loans
    - Return on assets
    - Liquid assets to short-term liabilities
    - Residential real estate prices
  - Periodicity: Q
  - Timeliness: Q
- Debt Securities
  - Coverage (Prescribed): Table 5.2—See Handbook on Securities
  - Periodicity: Q
  - Timeliness: Q
- Stock market
  - Coverage (Prescribed): Share price index, as relevant
  - Periodicity: D

### External Sector
- Currency Composition of Foreign Exchange Reserves (COFER)
  - Coverage (Prescribed): Participation in COFER—IMF certification
  - Periodicity: Q
  - Timeliness: Q
- Balance of payments
  - Coverage (Prescribed): Current account, disaggregated by: (1) Goods: exports; (2) Goods: imports; (3) Services: credit; (4) Services: debit; (5) Income: credit; (6) Income: debit; (7) Current transfers: credit; (8) Current transfers: debit. Capital account, disaggregated by: (1) capital account: credit; (2) capital account: debit. Financial account, disaggregated by: (1) direct investment abroad; (2) direct investment in reporting economy; (3) portfolio investment, assets; (4) portfolio investment, liabilities; (5) other investment, assets; (8) other investment, liabilities; and (9) reserve assets. Net errors and omissions.
  - Periodicity: Q
  - Timeliness: Q
- Official reserve assets
  - Coverage (Prescribed): Total amount of official reserve assets, disaggregated into: (1) foreign currency reserves; (2) IMF reserve position; (3) SDRs; (4) gold; (5) other reserve assets. Template on International Reserves and Foreign Currency Liquidity (See Table 6.1 of the SDDS Guide).
  - Periodicity: M (W encouraged)
  - Timeliness: 1W; M (W encouraged); 1M (1W encouraged)
- Merchandise trade
  - Coverage (Prescribed): Trade balance, disaggregated into: (1) merchandise imports; (2) merchandise exports
  - Periodicity: M
  - Timeliness: 8W (4-6W encouraged)
- International investment position (IIP)
  - Coverage (Prescribed): Assets, disaggregated by: direct investment abroad; portfolio investment, disaggregated by: (1) equity securities; (2) debt securities; other investment; reserve assets. Liabilities, disaggregated by: direct investment in reporting economy; portfolio investment, disaggregated by: (1) equity securities; (2) debt securities; other investment.
  - Periodicity: A (Q encouraged)
  - Timeliness: Q (from September 2014); 3Q (Q encouraged); 1Q (from September 2014)
- Coordinated Portfolio Investment Survey (CPIS)
  - Coverage (Prescribed): Participation in CPIS—IMF certification
  - Periodicity: SA (beginning June 2015)
  - Timeliness: 7M
- Coordinated Direct Investment Survey (CDIS)
  - Coverage (Prescribed): Participation in CDIS—IMF certification
  - Periodicity: A
  - Timeliness: 9M
- External debt
  - Coverage (Prescribed): See Table 6.2a of the SDDS Guide.
  - Periodicity: Q
  - Timeliness: Q
- Exchange rates
  - Coverage (Prescribed): Spot rates; and three- and six-month forward market rates, as relevant
  - Periodicity: D
  - Timeliness: 3/

### Addendum: Population
- Periodicity: A
- Other details: 5/

### Annex IV — General Government Gross Debt (at nominal value)
- Reporting instruction: To be reported consistent with coverage in the sectoral balance sheets. 1/
- Total gross debt — disaggregation:
  - By type of instrument:
    - Special Drawing Rights (SDRs)
    - Currency and deposits
    - Debt securities
    - Loans
    - Insurance, pensions, and standardized guarantee schemes 1/
    - Other accounts payable
  - By currency of denomination:
    - Domestic currency
    - Foreign currency
  - By residence of the creditor:
    - Domestic creditors
    - External creditors
  - Memorandum items:*
    - Debt securities at market value
    - Payable within one year or less: Debt securities; Loans
    - Payable in more than one year: Debt securities; Loans
  - Note: * The Executive Board endorsed a modified staff proposal by indicating that the memorandum items should be provided on a best effort basis to address some Directors’ concerns about the availability of the data.

### Annex V — Other Financial Corporations Survey (structure)
- Net foreign assets:
  - Claims on nonresidents less: Liabilities to nonresidents
- Domestic claims:
  - Net claims on central/general government:
    - Claims on central/general government less: Liabilities to central/general government
  - Claims on depository corporations
  - Claims on other sectors
- Liabilities to depository corporations
- Other domestic liabilities (except those included in Other Items Net)
- Shares and other equity
- Other Items (Net)

### Annex VI — Financial Soundness Indicators (listed)
- Regulatory Tier 1 capital to risk-weighted assets
- Regulatory Tier 1 capital to assets
- Nonperforming loans net of provisions to capital
- Nonperforming loans to total gross loans
- Return on assets
- Liquid assets to short-term liabilities
- Residential real estate prices

### Annex VII — Debt Securities (from-whom-to-whom holdings matrix)
- Time series format: t, t+1...t+n
- Debt securities holdings by sector and issuer:
  - Non-financial corporations (issued by Non-financial corporations; Financial corporations; General government; Households and non-profit institutions serving households; All residents; Non-residents; All issuers)
  - Financial corporations (issued by Non-financial corporations; Financial corporations; General government; Households and non-profit institutions serving households; All residents; Non-residents; All issuers)
  - General government (issued by Non-financial corporations; Financial corporations; General government; Households and non-profit institutions serving households; All residents; Non-residents; All issuers)
  - Households and non-profit institutions serving households (issued by Non-financial corporations; Financial corporations; General government; Households and non-profit institutions serving households; All residents; Non-residents; All issuers)
  - All residents (issued by Non-financial corporations; Financial corporations; General government; Households and non-profit institutions serving households; All residents; Non-residents; All issuers)
  - Non-residents (issued by Non-financial corporations; Financial corporations; General government; Households and non-profit institutions serving households; All residents (= all issuers))
  - All holders (issued by Non-financial corporations; Financial corporations; General government; Households and non-profit institutions serving households; All residents)

*Italic source attribution: Annex II. SDDS Plus Data Cover (from the provided IMF content)

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2012/_013112.pdf_