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São Tomé and Príncipe: Recent Economic Developments and Selected Issues

Author(s):
International Monetary Fund
Published Date:
June 2000
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IV. Debt Sustainability Analysis3637

93. This chapter provides an analysis of São Tomé and Príncipe’s prospects for attaining external debt sustainability in the context of 20-year macroeconomic and balance of payments projections. São Tomé and Príncipe’s level of debt-relative to its poor resource endowment and narrow productive base-constitutes a very heavy burden, compared with other heavily indebted poor countries (HIPCs). The projections indicate that, even with the pursuit of sound macroeconomic and structural adjustment policies, together with the support of the donor community and full exploitation of traditional mechanisms for bilateral debt relief, São Tomé and Príncipe’s debt burden will not be brought to a sustainable level through the end of the projection period. However, São Tomé and Príncipe could qualify for the enhanced HIPC Initiative and reach the decision point in early 2003, and thus benefit from more extensive debt-relief operations from bilateral and multilateral creditors. The projections show that the impact of debt relief under the HIPC Initiative from bilateral creditors only would not suffice to achieve external sustainability, because about 60 percent of São Tomé and Príncipe’s debt is due to multilateral creditors. Alternative projections illustrate the dramatic impact of oil production on debt sustainability. Qualification for assistance under the enhanced HIPC Initiative would be justified under the assumptions but would critically depend on the timing of oil extraction and the weight given to medium-term projections of external indebtedness indicators.

A. Structure of External Debt

94. At end-1998, the stock of São Tomé and Príncipe’s external debt totaled an estimated US$293 million, or about 721.3 percent of GDP. Of this amount, US$80.3 million was principal and interest in arrears, including some US$47.7 million in short-term debt arrears and US$7.1 million owed to BADEA, a multilateral lender38. The present value of total external debt amounted to about US$191.4 million, implying an average grant element of 34.6 percent39. The structure and degree of concessionality of São Tomé and Príncipe’s debt are presented in the table below. Fifty-seven percent of medium- and long-term debt was owed to multilateral creditors (including the Fund), with the bulk of the loans coming from the African Development Fund (AfDF) and IDA. The present value of multilateral debt amounted to 698.3 percent of exports of goods and nonfactor services, well above the sustainability thresholds for total external debt. One-third of the bilateral medium- and long-term debt was in arrears. São Tomé and Príncipe has never availed itself of Paris Club debt relief and does not have an agreed cutoff date.

95. São Tomé and Príncipe continues to rely heavily on external assistance and its already high external debt continues to increase. New disbursements, mostly from the AfDF on highly concessional terms, amounted to US$5 million in 1998 and are estimated to have reached about US$9 million in 1999. The authorities’ debt-management strategy has suffered from a weak capacity to select projects based on (socio) economic return and from poor policy coordination among planning directorates in various ministries.

Structure of External Debt, End-1998(in millions of U.S. dollars, unless otherwise specified)
Total DebtPercentArrearsGrant Element 1/
(including arrears)of Total
Total outstanding debt292.6100.080.334.6
Medium- and long-tem debt244.983.732.641.3
Multilateral167.457.27.151.2
Of which: IDA61.921.20.054.4
AfDF86.929.70.054.9
BADEA8.42.97.10.8
IMF0.10.00.04.8
Official bilateral77.526.525.620.1
Paris Club60,020.520.516.0
Of which: Portugal30.210.31.723.1
France8.32.80.024.7
Germany13.04.413.00.0
Non-Paris Club17.56.05.034.4
Of which: China11.84.00.050.3
Of which: Russia3.81.33.80.0
Short-tern debt 2/47.716.347.70.0

In percent of face value, including arrears.

All short-term debt is official bilateral. It includes arrears worth USS 19 million in dispute with Italy.

In percent of face value, including arrears.

All short-term debt is official bilateral. It includes arrears worth USS 19 million in dispute with Italy.

B. Medium-Term Projections

Baseline assumptions

96. The baseline adjustment scenario is predicated on diversifying the good and service export base and attaining fiscal consolidation, thus gradually reducing domestic absorption to a level more consistent with the country’s income. It assumes annual real GDP growth of 4 percent, implying a per capita growth of 1.7 percent. This growth rate is sustainable if further public investment and structural reforms are made to support the sectors that have started reinvigorating the economy in 1998-99, namely, the emerging food crop, construction, and tourism sectors. Critical conditions for strengthening these sectors are coordinated rural infrastructure and agricultural policies and an administrative and legal environment that promotes private investment, including foreign direct investment. The primary fiscal surplus is projected to rise from 2 percent of GDP in 1999 to 5 percent of GDP in 2002. The international reserves position of the central bank is expected to strengthen in 2000, as most of the exceptional transfers coming from oil exploration contracts should be sterilized.

97. The sharp drop in world cocoa prices in 1999 has been particularly damaging for São Tomé and Príncipe, However, the shock is expected to be temporary, and the sharp drop of the estimated volume of exports for 1999 (14 percent) reflects inventory buildup. As a result, exports are expected to grow by 16.5 percent in 2000 and 4.4 percent per annum on average in 2001 and 2002. Although substantial investment is not expected in that sector in the 2003-10 period, the productivity of plantations coming to full maturity should improve, and growth of cocoa exports is projected at 2.9 percent. Beyond 2010, growth is projected to temper because of increases in fallow land and aging cocoa trees. Other agricultural exports are expected to grow above the GDP rate during the 1998-2002 period (6.6 percent). Because of the rapid diversification in agriculture and enhanced rural infrastructure policies, nontraditional exports of goods are projected to increase by 4,3 percent during 2000-02 and 4.2 percent during 2003-10. External receipts from tourism are estimated to have doubled to US$9 million in 1999 and are projected to keep rising at a 5 percent rate until 2002 on the basis of the expected stepped-up foreign investment in tourism.

98. Total imports are projected to increase from US$39.3 million in 1999 to US$57.0 million in 2002, reflecting the import content of public investment projects and foreign direct investments, as well as the additional investment goods that are expected to be imported for oil-exploration purposes. Beyond 2002, the baseline scenario assumes that no commercial oil field is discovered. Imports would fall to US$49.8 million in 2003 and then increase in U.S. dollar terms at an average assumed rate of 0.5 percent in 2003-10.

99. The current account deficit (excluding official transfers) is projected to widen from 57 percent of GDP in 1999 to 66 percent of GDP in 2002, and then, to progressively narrow to 27 percent of GDP in 2018. Official transfers would increase through 2002, mainly because of disbursements on the special grants from Taiwan Province of China and transfers related to oil concession rights, and to stabilize (in dollar terms) thereafter. The capital account surplus is expected to increase until 2002 because of oil exploration and then promptly fall; it will continue to slowly decline as amortization on the rescheduled debt increases. Given São Tomé and Príncipe’s heavy debt burden and the international context of enhanced debt forgiveness, new borrowing is assumed to be highly concessional: 60 percent of new borrowing is expected to be extended by multilateral creditors, with a grant element of 67 percent, and the remaining 40 percent by official bilateral creditors, with a grant element of 62 percent.

Debt Sustainability Baseline Assumptions, 2000-18
2000-20022003-20102011-2018
(Average annual growth rates, in percent)
Real GDP3.74.04.0
Cocoa export volume8.32.71.1
Nontraditional exports (real)4.34.23.4
Non-cocoa goods4.04.04.0
Tourism5.04.23.0
Other services3.04.04.0
Imports of goods and services (US dollar)13.10.62.6
(In percent of GDP)
Domestic absorption160.8136.3125.6
Government revenue21.023.023.0
Domestically financed primary expenditure17.418.018,0

HIFC eligibility and impact of expected reschedulings

100. The baseline scenario assumes a three-year flow rescheduling on Naples terms (67 percent of net present value (NPV) reduction) from official bilateral creditors on arrears and maturities falling due during 2000-02. For illustrative purposes, a stock-of-debt operations on Naples terms has been assumed in January 2003,40 in order to assess medium-and long-term debt sustainability after full use of traditional mechanisms. The impact of the debt relief in the baseline scenario would amount to a regularization of arrears in 2000, a reduction in scheduled obligations during 2000-02, and progressive improvements in the key indicators of external indebtedness (Table 13). Importantly, however, this scenario calls for cash payments throughout the projection period significantly higher than those that São Tomé and Príncipe has made in recent years, substantially raising the country’s financing requirements. This increase stems from the stream of moratorium interest generated by the regularization of arrears and the amortization profile of the existing stock of multilateral debt. Under the baseline scenario, the ratio of the net present value of public debt to exports would decline from 1,450 percent in 1999 to 794 percent in 2002, 543 percent in 200541, and 330 percent in 2018. Assessed against the sustainability indicator used under the enhanced HIPC Initiative—a ratio of net present value of debt to exports of goods and services of 150 percent—the full use of traditional mechanisms would not be enough to bring the debt burden of São Tomé and Príncipe to a sustainable level.

Table 9.Long-Term Balance of Payments Projections-Baseline Scenario and Enhanced HIPC Initiative Debt-Relief Operations, 2002-18(In millions of U.S. dollars, unless otherwise specified)
20022003200420052006200720082009201020112012201320142015201620172018
Trade balance-29.8-24.8-24.7-25.0-23.3-24.0-24.7-25.2-25.5-25.8-26.2-26.6-27.2-27.8-28.4-29.029.6
Export, f.o.b.7.01.78.59.29.710.210.711.211.812.312.813.113.814.314.915.316.1
Cocoa5.86.47.17.13.28.69.09.49.810.210.610.911.311.717.012.412.9
Other1.21.31.41.41.51.61.71.92.01.12.22.42.52.72.93.03.2
Import, f.o.b.-36.8-32.5-33.2-34.2-33.1-34.2-35.4-36.5-37.338.1-39.0-39.941.0-42.2-43.3-44.5-45.7
Food-4.9-4.9-5.0-5.2-5.4-5.6-5.8-6.0-6.3-6.5-6.8-7.0-7.3-7.6-7.8-8.1-8.5
Investment goods--18.5-20.8-21.2-21.8-10.2-20.8-21.4-21.8-21.9-22.0-22.1-22.2-22.3-22.7-22.9-23.1-23.5
Petroleum Products3.6-3.8-4.0-4.2-4.5-4.8-5.0-5.3-5.7-6.0-6.46.1-7.2-7.6-8.1-8.6-9.1
Petroleum-related investment-6.60.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Other-3.1-3.1-3.0-3.0-3.0-3.0-3.2-3.3-3.4-3.6-3.8-3.9-4.1-4.3-4.4-4.6-4.8
Services and income (net)-9.6-6.4-5.7-5.0-5.2-4.4-3.6-2.9-2.0-1.3-0.50.41.42.53.75.05.8
Export and Services15.416.517.718.920.121.422.724.225.727.228.730.332.033.835.737.739.3
Travel and tourism11.412.313.214.014.915.916.918.019.120.221.222.423.624.926.227.629.1
Other Services4.04.34.54.85.15.55.86.26.67.07.47.98.49.09.510.110.2
Import of nonfactor services-20.2-19.1-19.5-19.7-20.7-21.1-21.5-22.0-22.6-23.2-23.8-24.5-25.1-25.8-26.5-27.3-28.1
Freight and insurance-8.1-7.2-7.3-7.5-7.3-7.5-7.8-8.0-8.2-8.4-8.6-8.8-9.0-9.3-9.5-9.8-10.1
Technical assistance-5.8-5.4-5.4-5.1-6.0-5.7-5.6-5.5-5.5-5.5-5.6-5.6-5.6-5.6-5.6-5.6-5.6
Other-6.3-6.6-6.8-7.1-7.5-7.8-8.1-8.5-8.8-9.2-9.6-10.0-10.5-10.9-11.4-11.9-12.4
Interest due-4.9-3.8-3.9-4.1-4.6-4.7-4.6-5.0-5.2-5.3-5.4-5.5-5.5-5.5-5.5-5.5-5.5
Scheduled-2.5-2.0-1.9-1.8-1.7-1.6-1.5-1.4-1.3-131.2-1.1-1.00,9-0.1-0.7-0.6
New debt-0.6-0.5-0.6-0.6-0.7-0.8-0.9-1.0-1.1-1.2-1.2-1.3-1.4-1.5-1.6-1.6-1.7
rescheduling-1.1-0.9-0.9-0.9-1.2-1.2-1.2-1.2-1.2-1.2-1.1-1.1-1.1-4.0-1.0-0.9-0.9
Late interest (arrears and residual gap)-0.5-0.4-0.6-0.7-0.9-1.0-1.2-1.4-1.6-1.8-1.9-2.0-2.1-2.2-2.2-2.2-2.2
Private transfer (net)0.61.51.51.51.61.61.61.71.71.8l.8l.81.91.92.02.02.1
Current account, excluding official transfer-38.8-29.7-29.0-28.4-27.0-26.8-26.7-26.4-25.8-25.4-24.9-24.4-23.9-23.4-22.7-22.0-21.1
Offer transfer (net)14.114.314.313.913.311.613.813.913.913.914.014.014.114.114.214.214.3
Public investment projects13.012.512.512.011.411.611.811.111.111.111.111.711.111.811.811.811.8
Aid in kind1.81.81.81.91.92.02.02.12.12.22.22.32.32.42.42.52.5
Stabilization System for Export Earning grants0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Other0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Current account, including official transfer-24.1-15.4-14.6-14.5-13.6-13.2-12.9-12.5-11.9-11.5-11.0-10.4-9.9-9.3-8.5-7.8-7.5
Medium - and long - term capital (net)13.16.96.96.75.35.25.04.94.74.73.17.62.43.74.25.55.3
Project loans9.19.69.510.09.59.19.89.99.89.19.89.89.89.89.89.89.8
Nonproject loans0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Direct foreign Investment4.13.53.43.53.53.63.73.83.94.04.14.24.34.34.44.64.7
Petroleum related investment1.90.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Amortization (corrected for IMF-SAF and Cape Verde)-3.9-6.0-6.0-6.7-7.6-9.1-8.5-1.8-9.0-9.1-10.1-10.3-10.6-10.5-10.0-4.9-9.1
Of which: rescheduling-0.1-0.1-0.1-0.1-0.2-0.3-0.4-0.5-0.7-0.8-1.0-1.2-1.4-1.7-2.0-2.3-2.6
Short-term capital and arrears and organization0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Overall balance-9.0-8.5-7.7-7.8-8.2-1.0-7.9-7.6-7.2-6.8-7.2-6.1-6.5-5.6-4.3-2.3-2.1
Financing2.03.93.94.14.93.32.72.73.03.64.14.74.84.33.62.12.2
Net change in reserves (increase -)-4.1-1.8-0.5-0.6-0.l-0.1-0.5-0.8-0.7-0.7-0.7-4.l-0.9-0.9-0.9-1.0-1.0
Medium- and king-term arrears, (net decrease -)0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Show-term arrears (net; decrease -)0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Net of Fund resources2.61.30.0-0.2-0.7-1.2-1.1-1.9-1.8-1.2-0.7-0.l0.00.00.00.00.0
Other0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Debt relief on interest and principal payments3.54.54.44.95.51.53.45.45.45.55.65.65.75.24.53.11.1
Financing gap7.04.61.93.73.34.55.24.94.23.23.02.11.71.20.70.10.1
Memorandum items:
GDP (in millions of dobras)441,196466.088534,694588,164646,980711,678782,846861,732947,2441,041,9611,146,1651,240,7811,386,5591,525,5451,678,1001,845,9102,030,501
Debt-service ratio(before debt relief) 1/29.134.334.135.431.139.440.139.337.114.633.131.329.927.624.820.520.1
Debt-service ratio (after debt relief) 2/27.121.720.120.419.919.111.611.115.719.622.315.122.922.321.821.120.7
Debt service actually paid26.320.118.617.816.915.915.014.414.513.117.118.518.317.818.516.916.7
Current account, excluding official transfer (in percent of GDP)62.6-46.3-41.3-31.3-35.5-14.5-33.6-33.5-31.1-29.9-28.6-27.4-26.3-25.1-23.9-22.6-21.5
Current account, including official transfer (in percent of GDP)-37.4-24.0-20.9-19.6-17.9-17.0-16.2-45.4-14.3-13.5-12.6-11.7-10.9-9.9-9.0-1.0-7.5
Sources: São Tomé and Príncipe authorities, and staff estimates and projection.

Includes amortization to the IMF excludes arrcars

Includes amortization tot the IMF and cash seutement of arrears.

Sources: São Tomé and Príncipe authorities, and staff estimates and projection.

Includes amortization to the IMF excludes arrcars

Includes amortization tot the IMF and cash seutement of arrears.

Table 10Long-Term Debt-Service Projections-Enhanced HIPC Initiative Debt-Relief Operations, 1999-2018(ln millions of U.S. dollars)
Average
199920002001200220032004200520062007200820092010201120122013201420152016201720181999-20082009-2018
1. Debt service on outstanding debt (IP + II)5.35.95.98.28.07.88.49.19.49.69.59.49.19.79.59.48.11.76.15.81.88.5
IP Principal3.03.63.76.05.95.96.67.47.88.18.18.17.98.58.47.97.03.45.25.03.44.8
Multilateral2.12.73.13.53.33.23.43.74.14.64.64.64.45.05.05.05.05.05.03.44.8
IDA0.40.60.71.1l.11.01.11.11.31.51.51.61.72.22.22.22.22.22.22.21.02.0
AFDS0.50.81.01.11.11.11.21.41.72.02.02.02.42.52.62.62.62.62.62.61.22.4
IMF0.10.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
BADEA0.30.80.70.70.70.70.70.70.70.70.70.70.00.00.00.00.00.00.00.00.70.1
Other0.50.50.60.50.40.40.40.40.40.40.30.30.30.30.20.20.20.20.20.20.40.2
Official Bilateral0.90.90.72.62.62.63.23.73.73.53.53.53.53.53.53.52.92.00.40.22.42.7
Paris Club0.60.60.62.52.52.52.52.52.52.32.32.32.32.32.32.32.32.00.40.2
ODA0.40.50.52.42.42.42.42.32.32.32.32.32.32.32.32.32.32.00.40.21.81.9
Non-ODA0.20.20.20.20.20.20.20.20.20.00.00.00.00.00.00.00.00.00.00.00.20.0
Other Official bilateral0.30.30.00.00.00.10.61.21.21.21.21.21.21.21.11.10.60.00.00.00.50.8
Of which pre-cutoff date0.30.30.00.00.00.10.61.21.21.21.21.21.21.21.11.10.60.00.00.00.50.8
Commercial0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
II Interest2.32.22.22.12.01.9l.81.71.61.51.41.31.31.21.11.00.90.80.70.62.00.1
Multilateral1.21.21.1l.11.11.11.11.01.01.00.90.90.90.80.80.80.70.70.70.61.10.8
IDA0.50.50.40.40.40.40.40.40.40.40.40.40.40.30.30.30.30.30.30.20.40.3
AIDS0.60.60.60.60.60.60.60.60.60.50.50.50.50.50.50.40.40.40.40.40.60.5
IMF0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
BADEA0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Other0.10.10.10.10.10.10.10.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Official bilateral1.11.11.01.00.90.90.80.70.60.60.50.40.40.30.20.20.10.10.00.00.90.2
Paris Club1.11.11.01.00.90.90.80.70.60.60.50.40.40.30.20.20.10.10.00.00.90.2
ODA1.01.01.01.00.90.80.80.70.60.60.50.40.40.30.20.20.10.10.00.00.80.2
Non-ODA0.10.10.10.10.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Other official bilateral0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Commercial0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
1. Debt service on outstanding debt (IP+II)5.35.95.98.28.07.88.49.19.49.69.59.49.19.79.59.48.77.76.15.87.88.5
IP Principle3.09.63.76.05.95.96.67.47.48.18.18.17.98.58.48.47.97.05.45.25.87.5
II Interest2.32.22.22.12.01.91.81.71.61.51.41.31.31.21.11.00.90.80.70.62.01.0
2 Debt service on new borrowing (2P+2I)0.10.20.30.40.50.60.81.42.02.63.03.12.82.52.12.22.42.62.83.00.92.7
2P Principle0.00.00.00.00.00.00.10.71.21.72.02.01.61.20.80.80.91.11.21.30.41.3
2I Interest0.10.20.30.40.50.60.70.80.90.91.01.11.21.21.31.41.51.61.61.70.51.4
3. Debt service on rescheduling (3P+3I)0.00.90.90.91.01.01.01.41.51.61.71.82.02.12.32.52.73.03.23.51.02.5
3P Principal0.00.10.10.10.10.10.10.20.30.40.50.70.81.01.21.41.72.02.32.60.21.6
Paris Club0.00.00.00.00.00.00.00.10.10.10.20.20.30.40.50.60.70.80.91.10.00.6
Non-Paris Club0.00.10.10.10.10.30.10.20.20.30.40.40.50.60.70.91.01.21.31.50.10.8
3I Interest0.00.80.80.80.90.90.91.21.21.21.21.21.21.11.11.11.01.00.90.90.91.1
Paris Club0.00.30.30.30.30.40.40.50.50.50.50.50.50.50.50.50.40.40.40.40.40.5
Non-Paris Club0.00.50.50.50.50.50.50.70.70.70.70.70.70.70.60.60.60.60.60.50.50.6
4. Debt service relief (flow operations)1.11.71.73.64.54.44.90.00.00.00.00.00.00.00.00.00.00.00.00.02.20.0
4P Principal0.20.70.72.62.72.73.30.00.00.00.00.00.00.00.00.00.00.00.00.01.30.0
4I Interest0.91.11.01.01.81.71.60.00.00.00.00.00.00.00.00.00.00.00.00.00.90.0
4b Debt service relief (stock operations)0.00.00.00.00.00.00.05.55.55.45.45.45.55.65.65.75.24.53.13.21.64.9
4P Principal0.00.00.00.00.00.00.03.94.03.94.04.14.34.44.64.84.43.82.52.61.23.9
4I Interest0.00.00.00.00.00.00.01.61.51.41.41.31.21.11.00.90.80.70.60.60.51.0
5. Net change in arrears (5P+5I)0.078.281.384.487.791.298.4102.2106.2110.3110.3114.6119.0123.6128.4133.4138.5143.9149.4155.282.4131.6
5P Principal0.061.461.461.461.461.461.461.461.461.461.461.461.461.461.461.461.461.461.461.455.361.4
5I Interest, including late interest0.016.819.923.026.329.833.337.040.844.848.953.257.662.267.071.977.182.588.093.827.270.2
6. Debt relief on arrears (6P+6I)0.038.139.541.142.744.346.147.949.751.653.655.757.860.062.364.767.269.872.475.240.163.9
6P Principal0.031.131.131.131.131.131.131.131.131.131.131.131.131.131.131.131.131.131.131.128.031.1
6I Interest, including late interest0.06.98.49.911.513.214.916.718.620.522.524.526.728.931.233.636.038.641.544.112.132.7
Memorandum items:
7. Total debt service before debt relief5.46.16.28.68.50.49.310.511.512.312.512.511.912.111.611.611.110.48.98.98.711.2
7P Principal (1P+2P)3.03.63.76.05.95.96.78.09.09.810.110.19.59.79.39.28.88.06.06.55.88.2
Principal excluding IMF2.93.63.76.05.95.96.67.47.88.18.28.38.39.19.19.28.88.06.66.55.88.2
7I Interest (1I+2I)2.42.52.52.62.62.52.52.52.52.52.52.42.42.42.42.42.32.32.32.32.32.4
8. Total debt service after debt relief4.25.25.46.05.05.05.46.57.58.58.98.98.48.78.38.48.68.89.09.25.98.7
8P Principal (7P+3P+4P)2.83.03.23.63.33.33.64.35.36.36.66.66.06.35.95.96.16.26.46.63.96.2
Mutilateral2.12.73.13.53.33.23.64.35.36.36.56.45.85.95.45.45.45.55.65.63.73.7
Official bilateral0.70.30.10.10.00.00.00.00.00.00.00.00.00.10.10.10.10.20.20.30.10.1
Paris Club0.40.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.10.10.10.10.00.1
Other official bilateral0.30.30.10.10.00.00.00.00.00.00.00.00.00.00.00.10.10.10.10.10.10.1
8I Interest (7I+3I+4I)1.32.22.32.41.61.71.82.12.22.22.32.32.42.42.52.52.52.62.62.62.02.5
Multilateral1.31.31.31.41.41.41.41.51.51.51.51.51.51.51.51.51.51.51.51.61.41.5
Official bilateral0.10.80.80.80.00.00.00.30.30.30.30.30.30.30.30.30.30.30.30.30.40.3
Paris Club0.10.30.30.30.00.00.00.10.10.10.10.10.10.10.10.10.10.10.10.10.20.1
Other official bilateral0.00.50.50.50.00.00.00.20.20.20.20.20.20.20.20.20.20.20.20.20.20.2
Sources: São Tomé and Príncipe authorities, and staff estimates and projections.
Table 11Long-Term Debt-Service Projections—Traditional Debt-Relief Operations, 1999-2018(In millions of U.S.dollors)
Average
199920002001200220032004200520062007300120092010201120122013201420152016201120121999-20082009-2018
1. Debt service on outstanding debt(1p+11)5.35.85.98.27.97.19.49.19.49.69.59.49.19.69.59.38.77.76.15.87.78.5
IP Principal3.03.63.76.06.05.95.96.67.37.98.18.18.07.98.59.46.47.57.05.25.37.5
Multilateral2.11.73.13.53.33.13.43.74.14.64.54.34.35.04.94.95.05.05.05.03.44.1
IDA0.40.90.71.11.11.01.11.11.31.41.51.61.72.22.22.71.25.31.22.21.02.0
AIDB0.80.91 01.11.11.21.41.21.22.02.02.02.41.52.62.61.62.62.62.51.72.4
IMF0 10.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
BADEA0.30.80.70.70.70.70.70.70.70.70.70.70.0O.00.00.00.00.00.00.00.70.1
Others0.10.50.60.50.40.40.40.40.40.40.30.30.10.30.20.20.30.20.20.70.40.7
Official bilateral0 90.9O.72.62.62.63.23.73.73.53.53.53.53.53.53.52.92.00.40.23.41.7
Paris club0.60.40.02.52.52.52.52.52.52.13.33.32.32.32.31.32.32.00.40.71.91.9
ODA0.40.50.52.42.42.42.42.32.32.32.33.32.12.32.32.32.32.00.40.2l.81.9
Non ODA0.10.20.20.20.20.20.20.20.20.00.00.00.00.00.00.00.00.00.00.00.70.0
Other official bilateral0.10.30.00.00.00 10.61.21.21.21.21.21.71.21.11.10.60.00.00.00.50.8
Commercial0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
IP Interest1.12.12.21.12.01.9l.81.71.61.51.41.31.31.21.10.90.80.70.70.62.01.0
Multilateral1.21.21.11.11.11.01.01.01.00.90.90.90.80.80.80.70.70.70.70.61.l0.8
IDA0.50.50.40.40.40.40.40.40.40.40.40.40.40.30.30.30.30.30.30.30.40.3
AIDB0.60.60.60.60.60.60.60.60.60.50.50.50.50.50.50.40.40.40.40.40.60.4
IMF0.00.00.00.00.00.00.00.00.00.00.0000.00.00.00.00.00.00.00.00.00.0
EADEA0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
OthersO.10.10.10.10.10.10.10.10.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Official Club1.11.11.01.00.90.90.80.70.60.60.50.40.40.30.20.20.10.10.00.00.90.2
Paris Club1.11.11.01.00.90.90.80.71.11.11.01.00.90.90.80.70.60.60.50.40.40.3
NPRD1.11.11.01.01.00.90.80.70.60.60.50.40.40.30.20.20.10.10.00.00.90.2
ODA1.01.01.01.00.90.80.80.70.60.60.50.40.40.30.20.10.10.10.00.00.80.2
Non-ODA0.10.10.10.10.00.00.00.00.00.00.00.00.09.00.00.00.00.00.00.00.00.0
Other official bilateral0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Commercial0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
1. Debt service on outstanding debt(IP+11)5.35.85.98.27.97.88.49.19.49.69.59.49.19.69.59.38.77.76.15.87.78.5
IP Principle3.03.63.76.05.95.96.67.37.48.16.18.07.88.58-48.47.17.05.45.25.87.5
11 Interest2.32.22.22.12.01.91.81.71.61.51.41.31.31.21.10.90.80.70.70.62.01.0
2. Debt service on new borrowing(2P+21)0.10.30.30.40.50.60.81.42.02.63.03.12.52.52.12.22.42.62.13.00.92.7
2P Principle0.00.00.00.00.00.00.10.71.21.72.02.01.61.20.80.80.91.11.31.30.41.3
2I Interest0.10.20.30.4o.50.60.70.80.90.91.01.11.11.21.31.41.51.61.61.70.51.4
3. Debt service on rescheduling(3P+31)0.00.90.90.91.91.81.81.91.02.12.31.51.72.93.23.53.84.14.54.91.43.5
3P Principle0.00.10.10.10.20.30.30.40.50.60.81.01.1l.5l.82.12.52.93.43.90.22.1
Paris Club0.00.00.00.00.00.10.10.10.10.20.30.4o.50.6o.80.91.11.31.6l.80.10.9
Non-paris Club0.00.10.10.10.20.20.30.30.40.40.50.60.10.91.01.11.41.61.12.00.21.2
3I Interest0.00.80.80.81.51.51.51.51.51.51.51.51.51.41.41.41.31.31.3l.l1.21.3
Paris Club0.00.30.30.3o.80.80.80.80.80.10.80.80.70.70.70.70.70.60.60.50.60.7
Non-paris Club0.00.50.50.50.8o.80.90.80.80.80.70.70.70.70.70.60.60.60.60.60.60.7
4b Debt service relief(flow operations)1.11.71.73.60.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.80.0
4P Principle0.20.70.71.60.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.40.0
4I Interest0.91.11.01.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.40.0
4b Debt service relief (stock operations)0.00.00.00.04.54.44.95.55.55.35.35.45.45.35.55.65.24.43.03.13.04.8
4P Principle0.00.00.00.02.72.73.33.94.03.94.04.14.34.44.6474.43.72.41.52.11.9
4I Interest0.00.00.00.01.81.71.61.51.51.41.31.11.21.11.00.90.80.70.60.51.00.9
5. Net change in arrears(5P+51)0.078.21 1.314.417.791.294.796.4102.2106.2110.3114.6119.0123.6128.41334138.5143.9149.4155.212.4131.6
5P Principle0.061.461.461.461.461.461.461.461.461.461.461.461.461.461.461.461.461.461.461.455.361.4
5I Interest, including rate interest0.016.819.923.026.329.833.337.040.844.148.953.357.661.747.071.977.182.588.093. 827.270.2
6. Debt relief on arrears(6P+61)0.038.1.39.341.142.744.346.147.949.751.653.655.757.860.061.364.767.369.133.475.240.163.9
6P Principle0.031.131.131.131.131.131.131.131.131.131.131.131.131.131.131.131.131.131.131.128.031. 1
6I Interest, including rate interest0.06.91.49.911.513.214.016.718.630.532.524.526.721.931.233.636.038.641.344.112.132.7
Memorandum item:
7. Total debt service before debt relief5.46.16.28.68.58.49.210.511.412.212.512.311.912.111.611.611.110.38.98.88.711.1
7P Principle(1P+2p)3.03.63.76.05.95.96.78.o9.09.810.010.09.49.79.29.18.88.06.66.36.28.8
Principle excluding IMF2.93.63.76.05.95.96.67.37.88.18.2138.39.19.19.18.88.06.66.55.81.2
7I Interest(11+21)1.42.52.57.61.62.52.52.52.53.51.52.42.43.42.42.32.31.33.32.31.52.4
8. Total debt service after debt relief4.25.75.45.95.85.76.17.08.09.19.59.69.19.59.39.49.710.010.410.76.29.7
8P Principle(7p+3P-4P)2.83.03.13.63.43.43.74.55.46.56.86.96.46.86.56.66.97.27.57.83.96.9
Multilateral2.12.73.13.53.33.23.64.35.36.36.46.45.75.95.45.35.15.55.55.63.75.7
Official bilateral0.70.30.10.10.10.10.10.20.10.20.30.40.50.60.70.81.01.21.41.60.20.8
Paris Club0.40.00.00.00.00.00.00.00.00.00.10.10.20.30.40.40.50.7o.80.90.10.4
Other official bilateral0.30.30.10.10.10.10.10.10.10.20.20.30.30.30.40.40.50.5060.70.20.4
8I Interest(7I+31-41)1.52.22.32.41.32.42.42.5261.62.61.72.72.82.82.82.82.92.92.92.32.5
Multiateral1.31.31.31.41.41.41.41.51.51.51.51.51.31.51.51.51.51.51.51.51.41.5
Paris Club0.10.30.30.30.40.40.40.40.40.40.40.40.40.40.40.40.40.40.40.30.40.4
Other official bilateral0.00.50.50.50.30.30.30.30.30.30.30.30.30.30.20.20.30.20.30.20.30.2
Source: São Tomé and Príncipe auxiliaries; and staff estimates and projections.
Table 12São Tomé and Príncipe: Key Indicators of External lndebtness - Baseline Scenario and Enhanced HIPC Initiative Debt-Relief Operations, 1996-2018 /1
199819992000200120022003200420052006200720082009201020112012201320142015201620172018
(In millions of(U.S. dolars)
1. Nominal debt stock292.6295.6275.2285.3291.9297.8301.7304.6257.4261.6264.9267.7270.4273.7276.8280.4283.9237.3290.5293.4296.2
Multilateral167.4170.3177.9184.4190.5193.1195.8198.1200.0201.0201.0200.8200.5200.9201.1201.9202.7203.4204.1204.7205.3
Official bilateral125.2125 297.3100.9103.4104.6105.9106.657.360.563.866.969.972.975.878.681.383.986.388.791.0
Of which Paris club65.165.749.249.345.246.244.342.39.19.19.19.19.19.19.19.09.08.98.88.78.6
Of which post-cutoff date0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Of which ODA0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Commercial0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Nominal debt before rescheduling /2292.6298.5311.4323.8334.3340.7347.2353.1358.2362.5366.2369.8373.3377.6381.8386.8391.9397.7404.4412.7421.3
2. NOV of dept191.4198.0150.9158.3162.8165.7169.4172.2155.8136.4138.5140.3142.2144.7147.0149.9152.8155.8159.6161.4164.2
Multilateral31.882.788.092.597.099.4102.1104.6106.4107.4107.4107.2107.0107.4107.7108.5109.4110.3111.1111.9112.7
Official bilateral109.6115.462.963.861.966.267.367.629.329.031.033.135.237.239.341.443.445.547.549.551.5
Of which Paris Club55.557.835.436.131.932.531.330.15.54.14.24.34.54.64.74.84.95.05.15.25.2
of which post-cutoff date0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
of which ODA0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Commercial0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
NPV ofdebt before rescheduling /2191.4196.9206.7216.3224.1230.0236.1241.6246.3250.2253.4256.4259.4263.2266.9271.2275.6280.7286.5294.5302.6
(In percent of exports of goods and service) /3
NPV of debt /41,634.61,450.1963.0855.7793.5736.3693.0653.5481.4454.5435.2416.4398.4353.8369.9358.6347.8337.2326.7316.3305.9
Of which multilateral698.3605.3561.4500.2472.5442.0417.6396.8377.4358.0337.7318.2299.9285.0271.0259.6249.0238.7228.8219.2209.9
Debt service /545.328.226.526.420.316.818.921.623.625.424.923.621.120.819.018.217.717.316.816.4
Of which multilateral20.221.621.521.519.417.717.719.321.323.122.421.018.317.915.814.914.413.613.311.7
(In percent Of government revenue) /6
NPV ofdebt /42,432.32,173.91,481.81,383.81,286.21,122.61,049.91,009.3777.9764.0758.2751.1743.8739.9734.9732.4730.1727.3724.0720.2716.0
Of which multilateral1,039.1907.4663.8808.8765.9673.9632.7612.8609.9601.7588.3573.9559.9549.5538.4530.2522.6514.9507.1499.2491.3
Debt service /582.151.247.547.133.630.731.437.042.046.847.546.642.843.540.740.140.140.240.240.3
Of which multilateral36.639.238.538.332.024.929.433.137.842.542.741.437.237.334.032.932.532.131.731.3
(In percent of GDP, unless otherwise specified)
Nominal debt stock721.3636.0550.5523.8501.4464.1430.0410.9339.2337.0333.5329.5325.4322.0318.1315.2312.0301.5304.9301.1297.2
Of which multilateral412.6361.5355.9338.5325.1301.0279.0267.1263.6259.0253.1247.2241.2236.3231.2226.9222.7218.5214.3210.1205.9
NPV of debt471.8420.4301.9290.6277.8258.2241.5232.1178.9175.7174.4172.7171.1170.1169.0168.5167.9167.3166.5165.6164.7
Of which multilateral201.5175.5176.0169.9165.4155.0145.5141.0140.3138.4135.3132.0128.8126.4123.8122.0120.2113.4116.6114.1113.0
Memorandum items:
Grant element in total stock of debt/734.633.945.244.544.644.443.843.547.247.847.747.647.447.246.946.646.245.845.445.044.6
Projected cash payments (in millions of U.S. dollars)5.63.95.25.45.94.94.95.05.05.05.05.15.46.07.48.18.48.68.89.09.2
Sources: São Tomé and Príncipe authorities: and staiewinates and projections.Footnotes:

All debt indicators refer to public and publicly guaranteed (PPG) debt and we definod after rescheduling, unless otherwise indicated

For countries fiat have already received a stock-of-debt operation, the figures before and after rescheduling we the same

As defined in IMF Balance of Payment Manual, (5th ed),1993

Based on a three-year average of exports an the previous year (e.g. export average over 1997-99 for NPV of debt-to-export ratio in 1999).

After debt relief, excludes changes in arrears.

Revenues are defined as central government revenues, excluding grants

in percent of face value.

Sources: São Tomé and Príncipe authorities: and staiewinates and projections.Footnotes:

All debt indicators refer to public and publicly guaranteed (PPG) debt and we definod after rescheduling, unless otherwise indicated

For countries fiat have already received a stock-of-debt operation, the figures before and after rescheduling we the same

As defined in IMF Balance of Payment Manual, (5th ed),1993

Based on a three-year average of exports an the previous year (e.g. export average over 1997-99 for NPV of debt-to-export ratio in 1999).

After debt relief, excludes changes in arrears.

Revenues are defined as central government revenues, excluding grants

in percent of face value.

Table 13.São Tomé and Príncipe: Key Indicators of External Indebtedness - Baseline Scenario and Traditional Debt-Relief Operations, 1998-2018 /1
199819992000200120022003200420052006200720082009201020112012201320142015201620172018
(In millions of U.S. dollars)
1. Nominal debt stock292.6295.6275.2285.3293.9264.0269.6274.9279.1283.9286.9289.3291.9294.8297.3300.3303.0305.5107.7309.5311.1
Multilateral167.4170.3177.9184.4190.5192.2194.9197.2199.1200.0200.0199.8199.3199.9200.1200.8201.7202.4203.1203.7204.2
Official bilateral125.2125.297.3100.9103.471.174.777.780.883.886.989.792.494.997.299.4101.4103.1104.6103.8106.8
Of which Paris club65.165.749.249.348.220.420.420.420.320.330.220.120.019.819.519.118.718.217.516.715.8
Of which post-cut of date0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Of which ODA0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Commercial0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Nominal debt before rescheduling /2292.6298.5311.4323.1334.3339.8346.3352.1357.2361.6365.3368.8372.3376.6380.8385.8390.9396.6’403.1411.6420.3
2. NPV of dept191.4198.0150.9158.3162.8135.9138.6143.1147.2150.4152.7154.8156.7159.2161.5164.2167.0169.5171.9174.1176.0
Multilateral81.183.788.092.397.099.4102.1104.6106.4107.4107.4107.2107.0107.4107.7108.5109.4110.3111.1111.9117.7
Official bilateral109.6115.462.965.163.934.336.331.640.743.045.347.549.731.453.131.757.659.360.162.263.4
Of which Paris Club55.557.135.416.133.911.411.812.112.312.612.913.113.113.313.513.613.613.513.312.912.4
Of which port-cutoff date0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Of which ODA0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Commercial0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
NPV of debt before rescheduling /2191.4196.9206.7216.3224.1230.0236.1241.6246.3210.2253.4256.4259.4363.2266.9271.2275.6280.7286.1294.5309.6
(In percent of exports of goods and services)/3
NPV of debt /41,634.61,450.1963.0855.7793.5607.1570.0543.5525.2504.4483.1462.2442.0425.2409.2595.6382.6367.5356.6343.5330.4
Of which Multilateral698.3603.1561.4500.2472.5444.0420.4399.4379.1360.3339.9320.2301.8286.9272.8261.4250.7240.4230.4220.8211.4
Debt services /545.328.276.526.423.721.921.923.425.327.126.725.623.223.021.220.620.219.819.519.2
Of which multilateral20.221.621.521.519.417.817.819.321.323.122.421.018.317.915.915.014.413.813.312.8
(In percent of government revenue) /6
NPV Of debt /42,432.32,173.91,451.11,303.01,286.2921.3159.1839.0143.3842.5636.3028.3819.9814.3807.4802.6797.5791.6784.6776,6767.7
of which multilateral1,039.1907.4863.8808.8765.9673.9632.7612.8609.9601.7588.3573.9559.9549.9338.4530.2522.6514.9507.1499.2491.3
Debt services/383.151.247.547.139.035.436.039.944.149.450.730.246.147.845.345.045.445.946.346.6
Of which multilateral36.639.231.538.331.921.829.233.037.742.442.341.237.037.133.832.832.432.031.633.1
(In percent of GDP, unless otherwise specified)
Nominal debt stock721.7636.0550.5523.8501.4411.5384.2370.6368.8365.7361.1356.0351.2346.7341.9337.5332.9323.1323.0317.6312.0
Of which multilateral412.6361.5355.9338.5325.1299.6277.7265.9262.4257.7251.9245.9240.0235.1230.1225.7221.6217.4213.2209.0204.1
NPV of debt471.9420.4301.9290.6277.6211.9197.6193.0194.0193.9192.3196.5180.6187.3185.7184.6183.4182.1100.5178.6176.6
Of which multilateral201.5175.5176.0169.9165.4155.0145.5143.0140.3138.4135.3132.0128.0126.4121.8522.0120.2118.4116.6114.8113.0
Memorandum items:
Grant elements in total stock of debt /734.633.945.244.544.648.548.647.947.447.046.846.546.346.945.145.344.944.544.143.043.4
Projected cash payments(in millions of U.S. dollars)5.63.95.25.45.95.75.75.65.65.55.55.76.16.78.29.09.49.710.010.410.7
Sources: São Tomé and Príncipe authorities: and staff estimates projections.Footnotes:

All debt indicator refers to public and publicly guaranteed (PPG) debt and are defined. after rescheduling unless otherwise are the same.

For countries that have already received a stock-of-debt operation the figures before and after rescheduling are the same.

As defined is IMF Balance of Payments Manual, (5th ed.), 1993.

Based on a three-year average of export on the previous year (e.g., export average over 1997-99 for NPV of debt-to-exports ratio in 1999).

After debt relief, excludes changes in arrears.

Revenue are defined as central government revenues, excluding grants.

in percent of face value.

Sources: São Tomé and Príncipe authorities: and staff estimates projections.Footnotes:

All debt indicator refers to public and publicly guaranteed (PPG) debt and are defined. after rescheduling unless otherwise are the same.

For countries that have already received a stock-of-debt operation the figures before and after rescheduling are the same.

As defined is IMF Balance of Payments Manual, (5th ed.), 1993.

Based on a three-year average of export on the previous year (e.g., export average over 1997-99 for NPV of debt-to-exports ratio in 1999).

After debt relief, excludes changes in arrears.

Revenue are defined as central government revenues, excluding grants.

in percent of face value.

101. Assuming two successive three-year flow reschedulings from bilateral creditors—the first on Naples terms for maturities falling due in 2000-02 and the second on Cologne terms (up to 90 percent NPV reduction) for maturities falling due in 2003-05, followed by a stock- of-debt operation on Cologne terms at the beginning of 2006—the ratio of the net present value of debt to exports would decline to 653.5 percent in 2005 and 306 percent in 2018. The debt-service ratio (after debt relief) is projected to decline from 45.3 percent in 1999 to 18.9 percent in 2005 and 16.4 percent by 2018. Relative to government revenue, the net present value of debt is expected to decrease from 2,174 percent in 1999 to 1,286 percent in 2002, 1, 010 percent in 2005, and 716 percent by 2018; meanwhile, debt service, as a ratio of government revenue, would decrease from 82 percent in 1999 to 47 percent in 2002 and 31.5 percent in 2005, and would stabilize around 40 percent after 2013. Even successive flow and stock-of-debt operations by official bilateral creditors are not sufficient to reduce the debt burden of São Tomé and Príncipe to a sustainable level. This situation reflects both the concessional rescheduling of outstanding arrears and the small share of future bilateral maturities in total debt. In comparison with 1999, projected cash payments are expected to increase significantly, reaching US$5.5 million in 2010 and US$9.2 million in 2018. Significant residual financing gaps, after debt relief, are projected to remain throughout the projection period, culminating at a level equivalent to 6.5 percent of GDP in 2008.

C. Potential Impact of Oil Production on the Ability of São Tomé and Príncipe to Repay Its Debt

102. Under the alternative scenario, it is assumed that an oil field will come onstream in 2005, with crude output increasing from 10,000 barrels per day in 2005 to 120,000 barrels per day in 2009. Reflecting oil development investments, imports would continue to increase through 2007, and the external current account deficit to widen through 2004. However, the projected foreign exchange revenue is high in relation to the size of the economy and the external debt. The external current account would be in balance in 2008 and would shift to sizable surpluses thereafter.

Debt Sustainability Alternative Assumptions, 2000-18
2000-20022003-20102011-2018
Real GDP growth3.735.6-6.3
Oil export volume (in thousands of barrels per day)0.0213.6200.8
(Average annual growth rates, in percent)
Real non-oil GDP3.74.04.0
Cocoa export volume8.32.71.1
Nontraditional exports (real)4.34.23.4
Noncocoa goods4.04.04.0
Tourism5.04.23.0
Other servíces3.04.04.0
Imports of goods and services (US dollar)13.114.0-5.0
(In percent of GDP)
Domestic absorption160.8109.948.7
Government revenue21.015.631.7
Domestically financed primary expenditure17.44.64.6

103. HIPC eligibility for São Tomé and Príncipe and the ability to repay its debt are assessed through two different debt-to-export ratios. First, the ratio of the present value of debt to gross exports is computed. This ratio better captures debt sustainability if the oil sector is connected to domestic economic activity. Alternatively, the ratio of the present value of debt to the sum of non-oil exports and oil-related government revenue is computed. This ratio better captures the ability of São Tomé and Príncipe to repay its debt if the oil sector develops as an enclave.

104. Under the alternative scenario, assuming a three-year flow rescheduling during 2000-02 on Naples terms from bilateral creditors, followed by a stock-of-debt operation on Naples terms at the beginning of 2003, the ratio of the net present value of debt to export would decline to 278 percent in 2005 and to 72 percent in 2018. Because the decision point (early 2003) comes before oil production begins, São Tomé and Príncipe would qualify for the HIPC Initiative with the same ratio as in the baseline scenario. The timing of oil production and the time horizon used to assess debt sustainability are critical to establish eligibility. The present value of debt-to-gross export ratio would fall to 86 percent as early as end-2006. Debt would become sustainable later in 2010 if the oil sector is considered as an enclave (the associated ratio is 135 percent).

105. Regarding the balance of payments, there are no more financing gaps starting in 2004, and foreign assets are expected to accumulate with the creation of a special reserve fund for future generations. A 6 percent rate of return is assumed on these assets. The annual surpluses directed toward the special reserve fund would become massive with respect to debt-service cash payments, beginning at US$1.2 million in 2004 and culminating at US$154 million in 2012.

106. Oil production would have a dramatic impact on the assessment of debt sustainability for São Tomé and Príncipe if the decision point (currently expected for early 2003) were to be significantly delayed. However, even under the alternative scenario of a successful oil discovery, São Tomé and Príncipe’s external debt burden would continue to be unsustainable through 2005; the country should therefore qualify under the enhanced HIPC Initiative.

Table 14.Long-Term Balance of Payments Projections—Oil Scenario and Enhanced HIPC Initiative Debt-Relief Operations, 2002-2018(In million of U.S. dollars, unless otherwise specified)
20022003200420052006200720082009201020112012201320142015201620172018
Trade balance-29.8-47.3-102.7-209.5-59.1-186.0121.2414.1480.2472.0477.7415.5318.5197.5153.1125.996.4
Export, f.o.b.7.07.78.585.1360.7368.3450.9615.7625.0617.6624.3492.9397.1277.1233.9207.8179.6
Cocoa5.86.47.17.88.28.69.09.49.810.210.610.911.311.712.012.412.9
Oil0.00.00.075.9351.0358.1440.2604.4613.2605.3614.4479.6383.3262.8219.0192.4163.5
Other1.21.31.41.41.51.61.71.92.02.12.22.42.52.72.93.03.2
Import, f.o.b.-36.8-55.0-111.2-294.6-419.0-554.3-329.7-201.5-144.8-145.6-146.5-77.4-78.5-70.7-80.8-82.0-83.2
Food-4.9-4.9-5.0-5.2-5.4-5.6-5.8-6.0-6.3-6.5-6.8-7.0-7.3-7.6-7.8-8.1-8.5
Investment goods-18.5-20.8-21.2-21.8-20.2-20.8-21.4-21.8-21.9-22.0-22.1-22.2-22.5-22.7-22.9-23.1-23.3
Petroleum products-3.6-3.8-4.0-4.2-4.5-4.8-5.0-5.5-5.7-6.0-6.4-6.8-7.2-7.6-8.1-8.6-9.1
Petroleum related investment-6.6-22.5-78.0-260.5-386.8-520.1-294.3-165.1-107.5-107.5-107.5-37.5-37.5-37.5-37.5-37.5-37.5
Other-3.1-3.1-3.0-3.0-3.0-3.0-3.2-3.4-3.6-3.8-3.9-4.1-4.1-6.4-4.6-4.8
Service and Income (net)-9.6-10.9-40.7-80.2-121.0-146.4-121.7-131.6-73.0-72.1-71.1-45.1-44.0-42.8-41.0-40.3-40.3
Export of services15.616.317.718.920.121.422.724.223.727.228.730.332.033.835.737.739.3
Travel and tourism11.412.313.214.014.915.916.918.019.120.221.222.423.624.926.227.629.1
Other services4.04.34.34.85.15.55.86.26.67.07.47.98.49.09.510.110.2
Import of nonfactor services-20.2-23.6-47.5-60.2-77.0-124.1-115.8-137.1-80.1-80.7-81.3-62.0-62.6-63.3-64.0-64.8-65.6
Freight and insurance-8.1-11.7-7.3-7.5-7.3-7.5-7.8-8.0-8.2-8.4-8.6-8.8-9.0-9.3-9.5-9.8-10.1
Petroleum-related services0.00.028.0-40.5-56.3-103.1-94.3-115.1-37.5-37.5-37.5-37.5-37.5-37.5-37.5-37.5-37.5
Other-6.3-6.6-6.8-7.1-7.5-7.1-8.1-8.5-8.8-9.2-9.6-10.0-10.5-10.9-11.4-11.9-12.4
Interest due-4.9-3.8-10.9-38.9-64.1-43.7-28.6-18.6-18.6-18.6-11.5-13.5-13.4-13.4-13.3-13.2-13.2
Scheduled-2.5-2.0-1.9-1.8-1.7-1.6-1.5-1.4-1.3-1.2-1.2-1.1-1.0-0.9-0.8-0.7-0.6
New debt-0.6-0.5-0.6-0.6-0.7-0.8-0.9-1.0-1.1-1.2-1.2-1.3-1.4-1.5-1.6-1.6-1.7
Rescheduling-1.1-0.9-0.9-0.9-1.2-1.2-1.2-1.2-1.2-1.2-1.1-1.1-1.1-1.0-1.0-0.9-0.9
Late interest (arrears and residual gap)-0.5-0.4-0.6-0.5-0.40.00.00.00.00.00.00.00.00.00.00.00.0
Petroleum-related investment payments0.00.0-7.0-35.0-60.0-40.0-25.0-15.0-15.0-15.0-15.0-10.0-10.0-10.0-10.0-10.0-10.0
Return on the Special Reserve Fund0.00.00.00.00.00.72.85.310.216.225.034.241.647.450.553.055.2
Private transfer (net)0.61.51.51.51.61.61.61.71.71.81.81.81.91.92.02.02.1
Current account, excluding official transfer-38.8-56.7-142.0-288.2-178.5-330.81.1234.3408.9401.7408.4372.2276.4156.6113.587.659.0
Official transfer (net)14.114.314.313.913.313.613.813.913.913.914.014.014.114.114.214.214.3
Public investment projects13.012.512.512.011.411.611.811.811.811.811.811.711.811.811.811.811.8
Aid in kind1.81.81.81.91.92.02.02.12.12.22.22.32.32.42.42.52.5
Stabilization System for Export Earning grants0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Other0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Current account, including official transfer-24.1-42.4-127.6-274.3-165.2-317.214.0298.2422.9415.6422.4386.2299.5170.7127.7101.873.2
Medium and long-term capital (net)15.133.9125.0273.1182.2348.025.2-220.6-317.4-279.7-272.9-268.5-199.8-122.5-90.0-68.1-46.2
Project loans9.19.69.510.09.59.79.89.99.89.89.89.89.89.89.89.89.8
Nonproject loans0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Direct foreign investment4.13.33.43.53.53.63.73.83.94.04.14.24.34.34.44.64.7
Petroleum-related investment (net)7.927.0118.1266.4176.8342.920.2-225.5-322.1-284.4-276.7-272.1-202.2-126.2-94.2-73.6-51.5
Amortization (corrected for IMF-SAF and Cape Verdo)-0.1-0.1-0.1-0.1-0.2-0.3-0.4-0.5-0.7-0.8-1.0-1.2-1.4-1.7-2.0-2.3-2.6
Of which: rescheduling
Short-term capital and arrear and organization0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Overall balance-9.0-8.5-2.6-1.217.130.840.177.6105.5135.9149.5117.791.748.237.733.727.1
Financing2.03.93.94.11.93.12.11.73.03.64.14.74.84.13.61.12.1
Net change in reserves (increases -)-1.1-1.1-0.5-0.60.1-0.8-0.8-0.8-0.7-0.7-0.1-0.1-0.9-0.9-0.9-1.0-1.0
Medium- and long term arrears (net decreases -)0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Short-term arrears (net, decreases -)0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Net use of Fund resources2.61.30.0-0.2-0.7-1.2-1.8-1.9-1.8-1.2-0.7-0.l0.00.00.00.00.0
Other0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Debt relief on interest and principal payments3.54.54.95.55.55.45.45.45.1>5.65.61.65.11.24.53.13.2
Special revenue Fund0.00.0-1.2-2.9-21.9-31.3-42.8-40.1-108.1-119.4-115.6-111.1-96.5-12.1-41.1-35.9-29.2
Financing gap(- in a surplus)7.04.50.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Memorandum items:
GDP (in millions of dobras)461,186486,016334,6911,189,9323,639,375l,994,4673,122,3327,208,3323,936,5558,460,7509,204,1398,067,0677,226,4535,831,2365,536,7465,489,7155,361,232
Debt service rates(balance debt relief) 1/39.036.314.19.43.92.92.62.01.91.41.92.22.71.63.83.64.1
Debt service relief(after debt relief) 2/23.121.747.519.013.211.66.33.31.17.13.43.54.36.07.07.78.3
Debt service actually paid26.320.145.737.516.411.46.31.13.13.13.43.34.36.07.07.75.5
Current account, excluding official transfers(in percent of GDP)-52.6-88.4-202.3-192. 1-41.1-75.90.141.558.759.258.585.558.344.036.130.221.4
Current account, including official transfers(in percent of GDP)-37.4-66.1-281.9-182.1-38.7-72.82.943.560.760.560.567.461.248.060.635.127.8
Sources: São Tomé and Príncipe authorities: and staff estimates and projection.

Includes amortization to the IMF, excludes arrears, includes oil-related private debt services.

Includes amortization to the IMF, cash settlement of arrears, and oil-related private debt services.

Sources: São Tomé and Príncipe authorities: and staff estimates and projection.

Includes amortization to the IMF, excludes arrears, includes oil-related private debt services.

Includes amortization to the IMF, cash settlement of arrears, and oil-related private debt services.

Table 15.São Tomé and Príncipe; Key Indicators of External Indebtedness - Oil Scenario and Enhanced HIPC Initiative Debt-Relief Operations, 1998-2018 /1
199819992000200120042003200420052006200720082009201020112012201320142015201620172018
on millions of U.S. dollars)
1. Nominal debt stock292.6295.6275.2285.3293.9297.8301.7304.8257.4261.6264.8267.7270.4273.7176.8280.4283.9287.3290.5293.4296.2
Multilateral161.4170.3177.9184.4190.5193.1195.8198.1200.0201.0201.0200.8200.5200.9201.1201.9202.7203.4204.1204.7205.3
Official bilateral125.2125.297.1100.9103.4104.6105.9106.657.360.563.866.969.972.975.878.681.383.986.388.791.0
Of which Paris Club65.165.749.249.348.246.244.342.39.19.19.19.19.19.19.19.09.08.98.88.78.6
Of which post-cutoff date0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Of which ODA0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Commercial0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Nominal debt before rescheduling /1292.6298.5111.4323.8334.3340.7347.2353.1358.2362.5366.2369.8373.3377.6381.8386.8391.9397.7404.4412.7421.3
2. NPV of debt191.4198.0150.9158.3162.8165.7169.4172.2135.8136.4138.5140.3142.2144.7147.0149.9151.8155.8158.6161.4164.2
Multilateral81.881.788.092.597.099.4101.1104.6106.4107.4107.4107.2107.0107.4107.7108.5109.4110.3111.1111.9112.7
Official bilateral109.6115.462.965.865.966.267.367.629.329.031.033.135.237.239.341.443.445.547.349.551.5
Of which Paris Club55.557.835.436.133.932.531.330.15.54.14.24.34.54.64.74.84.95.05.13.25.2
Of which post-cutoff date0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Of which ODA0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Commercial0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
NPV of debt before rescheduling /2191.4196.9206.7216.3224.1230.0236.1241.6246.3250.2253.4256.4259.4263.2266.9271.2275.6280.7286.8294.5302.6
(In percent of exports of goods and services) /3
Oil sector as an ancave
NPV of debt /41,634.61,450.1963.0355.7793.5736.3648.0570.5337.0257.4202.1156.2122.396.781.882.790.8114.3142.6174.0188.3
Of which multibilateral698.3605.3561.4500.2472.5442.0390.5346.4264.2202.7157.4119.392.071.861.459.965.080.9100.0120.6129.2
Debt services /545.328.226.526.420.315.615.411.810.810.67.46.04.64.45.05.98.69.710.311.1
Of which multilateral20.221.621.521.519.414.814.410.69.79.76.75.34.03.84.24.87.07.68.18.6
(In percent of government revenue) /6
NPV of debt /42,431.32,173.91,491.81,383.81,286.21,122.61,049.91,009.3777.9764.0751.2751.1743.8739.9734.9732.4730.1727.3724.0720.2716.0
Of which multilateral1,039.1907.4863.8808.8765.9673.9632.7612.6609.9601.7568.3573.9559.9549.5539.4530.2522.6514.9507.1499.2491.3
Debt services /582.151.247.547.133.630.731.437.042.046.847.546.642.843.540.740.140.140.240.240.3
Of which multilateral36.639.238.5381.331.029.929.433.117.842.542.741.437.237.334.032.932.532.131.731.3
(In percentt of GDP, unless Otherwise specified)
Nominal debt stock721.3636.0550.5523.8501.4464.1430.0203.160.360.051.039.038.339.739.649.359.980.792.4101.3112.6
Of which multilateral412.6361.5355.1338.5325.1301.0279.0132.046.946.138.729.328.929.128.835.542.757.265.070.678.0
NPV of debt471.8420.4301.9290.6277.8253.2241.5114.731.831.326.720.520.421.021.026.437.243.850.555.762.4
Of which multilateral201.5175.5176.0169.9165.4155.0145.569.724.924.720.715.615.415.615.419.123.131.035.438.642.8
Memorandum items:
GDP per capitals.289.6328.2339.8361.1379.1404.9432.0901.42,501.62,491.12,898.43,731.53,696.93,575.83,529.42,803.22,281.21,670.21,438.71,294.41,146.9
Grant elements in tota1 stock of debt /734.633.945.244.544.644.443.843.347.247.847.747.647.447.246.946.646.245.945.445.044.6
Projected cash payments (in millions of U.S. dollars)5.63.95.25.45.94.94.95.05.05.05.05.15.46.07.48.18.48.68.89.09.2
Sources: São Tomé and Príncipe authorities: and staff m6maaa and projections.Footnotes:

AU debt indicators refer 10 public and publicly guaranteed (PPG) debt and ate defined after rescheduling, unless otherwise indicated.

For countries that have already received a stack-of-debt operation, the figures before and after rescheduling are 1110 same.

As defined in IMF Balance of Paym&w Moyual, (51h ed). 1993

Based an a three-year average of exports on the previews Year (e.g. export average over 1997-99 for NPV of debt to-exports ratio in 1999)

After debt relief; excludes charges in arrears

Revenues ate defined as central government revenues, excluding grants.

in percent of face value.

Sources: São Tomé and Príncipe authorities: and staff m6maaa and projections.Footnotes:

AU debt indicators refer 10 public and publicly guaranteed (PPG) debt and ate defined after rescheduling, unless otherwise indicated.

For countries that have already received a stack-of-debt operation, the figures before and after rescheduling are 1110 same.

As defined in IMF Balance of Paym&w Moyual, (51h ed). 1993

Based an a three-year average of exports on the previews Year (e.g. export average over 1997-99 for NPV of debt to-exports ratio in 1999)

After debt relief; excludes charges in arrears

Revenues ate defined as central government revenues, excluding grants.

in percent of face value.

Table 16São Tomé and Príncipe: Key Indicators of External Indebtedness - Oil Scenario and Traditional Debt-Relief Operations, 1998-2018 /1
199819992000200120022003200420052006200720082009201020112012201320142015201620172018
(In millions of U.S. dollars)
1. Nominal debt stock292.6295.6275.2265.3293.9264.0269.6274.9279.8283.9286.9289.5291.9294.8297.3300.3303.0305.5307.7309.5311.1
Multilateral167.4170.3177.9114.4190.3192.2194.5197.2199.1200.0200.0199.8199.5199.9200.1200.8201.7201.4203.1203.7204.2
Official bilateral125.2125.297.3100.9103.471.874.777.710.113.186.919.792.494.997.299.4101.4103.1104.6105.8106.8
Of which Paris Club65.165.749.249.341.220.420.420.420.320.320.220.120.019.819.519.118.718.217.316.715.1
Of which post-cutoff date0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Of which ODA0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Commercial0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Nominal debt before mehcdiuag /2292.6298.5311.4323.1334.3339.8346.3352.1357.2361.6365.3361.1372.1376.6380.8385.8390.9396.6403.3411.6420.3
2. NPV of debt191.4198.0150.9158.3162.1135.9131.6141.1147.2150.4152.7154.1156.7139.2161.5164.7167.0169.1171.9174.1176.0
Multilateral81.882.788.092.597.099.4102.1104.6106.4107.4107.4107.2107.0107.4107.7108.3109.4110.3111.1111.9111.7
Official bilateral106.9115.462.965.163.936.336.531.640.743.045.147.549.751.833.155.757.659.360.162.261.4
Of which Paris Club51.357.631.436.111.913.411.812.113.312.611.911.113.313.513.613.613.613.513.312.912.4
Of which post-cutoff date0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Of which ODA0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
Commercial0.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.00.0
NPV of debt before rescheduling /2191.4196.9206.7216.3224.1230.0236.1241.6246.3250.2253.4256.4259.4263.2266.9271.2273.4280.7216.1294.5302.6
(In percent of export of goods and services) /3
Oil sector connected to the economy
NPV of dept /41,63411,430.1963.0155.7793.1607.1570.1278.186.431.636.830.926.624.724.927.131.240.35l.l63.271.9
Of which Multilateral698.3605.1361.4300.2472.5444.0420.4201.162.516.925.921.411.116.716.417.910.426.211.040.646.0
Debt service43.328.226.326.421.721.95.91.82.11.91.51.51.41.11.11.21.11.74.24.9
Of which Multilateral20.221.621.511.319.417.84.11.51.71.61.21.21.11.11.31.42.21.42.93.3
Oil sector as an enclave
NPV of debt /41,634.61,450.1963.0135.7793.5607.1313.3477.0167.0214.1224.4172.7135.1106.692.390.899.3124.7155.3188.4202.7
Of which Multilateral698.3605.3561.4500.2472.3444.0392.9341.4264.4201.4137.1115.692.271.961.560.065.181.1100.3121.1129.1
Debt services /545.321.226.326.423.718.417.812.811.511.37.96.53.14.95.66.69.811.111.912.9
Of which Multilateral20.221.421.321.319.414.914.510.69.19.66.75.34.03.84.24.87.07.71.11.6
(In percent of government revenue) /6
NPV of debt /42,432.32,173.91,481.81,363.81,286.2921.3859.1839.0643.3642.5636.3826.3819.9814.3807.4602.6797.5791.6764.6774.6767.7
Of which Multilateral1,039.1907.4863.8808.8765.9673.9632.7612.8609.9601.7566.3573.9559.9549.5536.4530.2522.6514.9507.1499.249.0
Debt services82.151.247.547.139.035.636.039.944.149.650.750.750.246.847.645.345.045.445.946.346.9
Of which Multilateral36.639.230.530.538.331.928.829.233.037.742.442.541.277.037.133.832.832.432.031.631.1
(In percent of GPD, unless otherwise specified)
Nominal debt stock721.3636.0550.5523.8501.4411.5384.2183.265.665.355.242.241.941.742.652.663.985.897.9606.8119.2
Of which multilateral412.6361.5355.9338.5325.1299.6277.7131.446.645.938.529.128.629.028.635.342.556.964.670.377.6
NPV Of debt471.8420.4301.9290.6277.8211.9197.693.434.534.529.422.622.523.123.121.935.247.654.760.166.9
Of which multilateral201.5175.5176.0169.9165.4153.0145.569.724.924.720.715.665.415.615.419.123.131.035.438.642.8
Memorundam items:
GDp Per capita289.6326.2339.6361.1379.1404.9432.0901.42,501.62,401.12,698.43,731.53,696.93,575.83,529.42,803.12,281.21,670.21,438.71,294.41,146.9
Grant elements in total stock of debt /734.633.945.244.544.648.548.647.947.447.046.846.546.146.045.7451.344.944.544.145.643.4
Projected cash payments (in millions of U.S. dollars)5.63.95.25.45.95.75.75.85.65.55.55.76.16.78.29.09.49.710.010.410.7
Residual financing gap(- is a surplus)0.00.01.43.35.05.3-0.4-2.1-21.3-33.8-42.3-79.7-107.8-116.6-152.8121.5-95.4-51.4-0.0-34.3-27.7
Sources: São Tomé and Príncipe authorities and staff estimates and projections.Footnotes:

All debt indicators refer to public and publicly guaranteed (PPG) debt and are defined alter rescheduling, unless otherwise indicated.

For countries that have already received a sock-of-debt operation, the figure before and after rescheduling are the same

As defined in IMP Balance of Payments Manual. (5th ed.), 1993.

Based on a three-Year average of export on the previous year(e.g. export average over 1997-99 for NPV of debt-to-export ratio in 1999).

After debt relief, changes in arrears.

Revenue are defined as central government revenues, excluding grants.

in part of face value

Sources: São Tomé and Príncipe authorities and staff estimates and projections.Footnotes:

All debt indicators refer to public and publicly guaranteed (PPG) debt and are defined alter rescheduling, unless otherwise indicated.

For countries that have already received a sock-of-debt operation, the figure before and after rescheduling are the same

As defined in IMP Balance of Payments Manual. (5th ed.), 1993.

Based on a three-Year average of export on the previous year(e.g. export average over 1997-99 for NPV of debt-to-export ratio in 1999).

After debt relief, changes in arrears.

Revenue are defined as central government revenues, excluding grants.

in part of face value

APPENDIX I
São Tomé and Príncipe: Summary of Tax System, December 1999
TaxNature of TaxExemptions or DeductionsRates
1. Taxes on income, profit, and capital gains
1.1 Individual
1.1.1 Income tax (Imposto sobresaldrios)(Decree-Law 64/97).Levied on all domestically earned income, in cash and in kind. The tax is withheld at source and payable within the first eight days of the month after the income was paid. It is levied on all individuals, including nonresidents who earn income in the country.Earned annual income up to Db 480,000.Flat 13 percent tax; Db 5,000 monthly deductible.
Salary supplements, up to 10 percent of the fixed monthly salary.
Expense allowances and per diem and representation allowances, up to the limits set for government employees. Income of clergy from exercise of their spiritual functions.
Personnel of diplomatic and consular missions or in the service of international or foreign organizations.
1.2 Corporate
1.2.1 Profit tax (Imposto sobreo rendimento)(Decree-Law 9/93 of March 5, 1993; Decree-Law 84/93 of December 31, 1993; Decree-Law 46/93 of August 10, 1993; Decree-Law 58/95 of December31, 1995; Decree-Law 40/96 of October 29, 1996).Levied on all domestic income from any commercial, industrial, or agricultural business or independent profession, even if occasional or temporary.Profits from investment of dividends from mutual aid societies and nonprofit cooperatives.For commercial, industrial, and service businesses, flat 30 percent rate on taxable profit; an additional 15 percent rate on taxable profits in excess of Db 3 million.
Fifty percent of profits from agricultural activities.
Special exemptions granted in the context of the investment code.For independent professionals, five-bracket schedule applicable to taxable profit, with
  • progressive rates from 5 percent to 30 percent for taxable profit from Db 60,001 to Db 3,000,000; and
  • flat rate of 30 percent for taxable profit above Db 3,000,000, plus 15 percent surcharge on portion of taxable profit in excess of Db 3,000,000.
Revenue obtained from rental of urban property is taxed at a rate of 20 percent.
Six progressive taxes ranging from Db 3,000 to Db 150,000.
1.2.2 Minimum tax (Valor minimo) (Decree-Law 58/95 of December 31,1995).This presumptive tax on profits, which replaces the contribuigao industrial fixa. must be paid during the first half of the year by all commercial, industrial, and artisanal businesses, as well as by self-employed professionals.None.
The minimum tax is deductible from the profit tax when the latter is positive.
2. Taxes on property
2.1 Urban property tax (Contribuição predial urbana)(Legislative Act 450 of September8,1954; Decree-Law 57/81 of November 28,1981; Decree-Law 16/93 of March 5, 1993; Decree-Law 45/93 of August 10, 1993; Decree-Law 84/93 of December31, 1993; Decree-Law 40/96 of October 29, 1996).Levied on all urban property, including
  • permanent buildings intended for housing, commercial, or industrial purposes other than exploitation of land, and the land on which the buildings are located; and
  • land for construction when declared as such by the owner or by law.
Central government properties.Fifteen percent on registered value corrected according to the following factors:
  • Factor of 8 for property registered before Dec. 31, 1970;
  • Factor of 4 for property registered between Jan. 1, 1971 and Dec. 31, 1980;
  • Factor of 2 for property registered between Jan. 1, 1981 and Dec. 31, 1990;
  • Factor of 1.5 for property registered between Jan. 1,1991 and Apr. 30, 1993; and
  • Factor of 1 for property registered after May 1, 1993.
For two years, permanent buildings for use as dwellings by owners or their families, including buildings replacing demolished buildings, provided the construction period does not exceed 24 months.
Owners of property whose total income does not exceed Db 2,000.
All property owned by religious entities pursuant to their purposes.
2.2 Motor vehicle tax (Imposto sobre veícutos)(Decree-Law 13/93 of March 5, 1993; Decree-Law of December31,1993).Levied on motor vehicles equipped with engines larger than 50cc, either registered in the country or starting 180 days within entry into the country, that circulate or are parked in public thoroughfares or places.The central government and any of its agencies, organizations, or services, except state-owned and mixed enterprises.The taxes are reviewed annually, and vary according to the size and the age of the vehicle:
  • Vehicles over 50cc up to 500cc are taxed Db 500 if less than 6 years old, and Db 1,000 if more than6 years old.
  • Vehicles over 500cc up to 1,30-Occ are taxed Db 2,500 if less than6 years old, and Db 4,000 if more than 6 years old.
  • Vehicles over l,300cc up to l,900cc are taxed Db 4,000 if less than 6 years old, and Db 6,000 if more than 6 years old.
  • Vehicles over l,900cc are taxed Db 6,000 if less than 6 years old, and Db 10,000 if more than 6 years old.
Citizens of countries giving reciprocal treatment.
Personnel of diplomatic and consular missions, pursuant to agreements.
International or foreign organizations, pursuant to agreements.
Driver-training vehicles.
Duly registered rental vehicles.
Duly registered boats used in artisanal fishing.
New vehicles purchased after October 31,1997.For recreational boats, tariffs are as follows:
  • For recreational boats up to 25hp, tariffs are Db 500 if up to 6 years old, and Db 1,000 if more than 6 years old.
  • For each 10 hp or fraction over 25hp, there are additional tariffs of Db 500 for boats up to 6 years old, and Db 1,000 for boats more than 6 years old.
Farm tractors.
Motorcycles used for transporting freight.
3. Domestic taxes on goods and services
3.1 Excise tax (Jmposlo sobre o consumo)(Decree-Law 20/76 of June 30, 1976; Decree-Law 47/91 of October 17, 1991; Decree-Law 14/93 of March 5, 1993; Decree-Law 41/93 of July 27, 1993; Decree-Law 53/95 of November 17, 1995).Levied on the value of goods listed in the schedules annexed to Decree-Laws 14/93 and 41/93, with the following valuation methods:
  • The factory gate selling price is applied to locally produced goods not distributed by an associated or subsidiary enterprise.
  • The distributor’s selling price less 20 percent is used if the producer is associated with the distributor or the subsidiary enterprise.
  • The domestic value, import taxes included, is applied in the case of imports.
  • If the producer sells his goods directly to consumers, the factory gate price cannot, for purposes of the excise tax, be less than the price charged to the consumer less 20 percent.
Locally produced goods exported or re-exported directly from the industrial establishment.General tax of 15 percent, with the following exceptions, as listed in the schedules annexed to Decree-Laws 14/93: and 41/93:
Raw materials, equipment, and finished or semifinished products, whether locally produced or imported, for use in industrial, agricultural, or fishing activities, including artisanal fishing, or for incorporation into locally produced items.Products (percent)Rates
Petroleum goods15-130
Motor vehicles15-50
Soft drinks10-15
Alcoholic drinks60-130
Tobacco100-250
Books, basic food, construction material, pharmaceuticals0
Imported or locally produced materials for packaging of agricultural exports.
Alcohol needed in industrial processes. Gasoline for vehicles of diplomats, subject to reciprocity, and of officials of international organizations.
Gasoline for aviation equipment for public use.
The tax is chargeable to
  • the producer, in the case of locally produced goods; and
  • the importer, in the case of imports.
4. Taxes on international trade and transactions
4.1 Transaction tax [Contribuição industrial variavel)(Legislative Act 2 of January 20,1925; Legislative Act 551 of July 30, 1949; Decree-Law 47/91 of October 17, 1991; Decree-Law 6/95 of May 26,1995; Decree-Law 40/96 of October 29, 1996.Charged to entities and individuals covered by Schedule A annexed to the decree.Goods exempted from import duties.Single rate of 8 percent.
4.2 Import duty (Direitos de importação)(Legislative Act 739 of December 5, 1966; Legislative Act 745 of December 24, 1966; Decision 10/85 of April 22, 1985; Decree-Law 6/95 of May 26, 1995; Decree-Law 53/95 of November 17, 1995).Levied on the customs value of imports determined on the assumption that
  • the goods are delivered to the buyer at the port of entry;
  • the seller’s price is the c.i.f. price, that is, it includes all costs related to the sale of the good and its delivery at the port of entry;
  • the buyer pays the applicable duty and any other taxes that are excluded from the base price;
  • if the goods being valued are manufactured under a patented process of registered design or mark, or bear a foreign trademark or brand name, or are imported to be sold under the same trademark even after additional finishing, the base price includes the royalty for use of the patent, registered design, trademark, or brand name; and
Goods imported by official agencies as specified in Decree 41024 of March 23, 1957 are exempt. Examples are as follows:
  • aircraft and aircraft engines for in civil aviation;
  • equipment, machinery, and accessories for use in any public service;
  • fixed plant and rolling stock for railroads, hoists, and floating docks and cranes imported by the port and railroad agencies;
  • electrical equipment for postal, telegraph, and telephone stations;
  • construction materials and electrical equipment, and machinery and apparatus imported by the government for use in water and electricity distribution system or sewer systems or by
A mix of ad valorem and specific rates, depending on the nature of the product. Examples are as follows:
  • wheat, rice, and flour (exempt);
  • meat (8.85 percent);
  • live animals (7.35 percent);
  • butter (10 percent);
  • milk (exempt);
  • oil (3 percent);
  • salt and sugar (1 percent);
  • fresh fruits (! percent);
  • coffee (10 percent);
  • tea (5 percent);
  • wine (6 percent);
  • other alcoholic beverages (35-50 percent);
  • tobacco (Db 564.22 per kilogram);
  • pharmaceuticals (exempt);
  • most mineral andchemical products (5-6 percent);
  • specific duties levied on the weight of goods are calculated on the basis of their gross, net, or actual weight, as stated in the tariff and its instructions.
  • public works agencies for carrying out work on such systems or any other work required for the country’s development and the equipping of ports; and
  • fertilizers and seeds imported by agricultural agencies.
  • gasoline (86 percent), diesel (34 percent), and kerosene(14 percent);
  • perfumes (45 percent);
  • most textile products (5-30 percent);
  • most metals (8-50 percent);
  • electric equipment (3-20 percent);
  • cars and buses (10-12 percent);
  • tractors (2 percent); and
  • motorcycles and trucks (5-10 percent).
Enterprises engaged in the production of items included in the preceding list are exempt from duty as well. Also exempt are products for use by new industries of strategic economic interest.
The government may exempt goods under temporary import or reimport arrangements. Many exemptions are negotiated bilaterally in the context of the investment code.
Imports of immigrants may also be exempted.
4.3 Customs duty (Emolumentos gerais aduaneiros)(Decree 31 883 of April 18, 1942; Decree-Law 7/72 of June 22, 1972; Decree-Law 6/95 of May 26, 1995).Levied on imports.The government may exempt certain imports, such as capital goods and certain basic foodstuffs,Flat tax of 3.5 percent.
4.4 Export tax (Imposto geral de exportação)(Decree-Law 17/93 of March 5,1993; Decree-Law 6/95 of May 26, 1995).Levied on agricultural exports.Exports whose customs value does not exceed Db 20,000.Ad valorem rates:
  • cocoa, 10 percent;
  • coffee, 8 percent;
  • copra, 9 percent;
  • palm kernels, 8 percent; and
  • other, 15 percent.
4.5 Lighthouse tax (Imposto de farolagem)(Legislative Act 25 of December 24, 1933).Levied on all ships entering domestic harbors and used to defray the costs of lighthouses, lighted beacons, and light buoys.None.Rates range from Db 150 to Db 650 per ship, depending on nationality of ship and time of day.
The tax is administered by the National Port Enterprise (ENAPORT); its budgetary significance is virtually nil.
4.6 Harbor tax (Taxas de porto) (Decree-Law 22/89 of December 19,1989).Levied for use of port facilities, and on material procured by the port authorities.Scientific missions, domestic ships, and fishing boats pay only 50 percent of the tax.Mostly specific tariffs, which vary with the weight, volume, and quantity of merchandise, the type of service, and time of utilization of service.
The following equipment is exempted:
  • government and military boats;
  • merchandise in transit;
  • merchandise shipped between domestic harbors;
  • passengers’ luggage; and•mail.
For materials procured by the port authorities, a lax of 1 percent of the c.i.f. value, and an additional tax of 30 percentExemptions are also granted by ENAPORT on a case-by-case basis.
5. Other taxes
5.1 Inheritance and gift tax (Imposto sobre as sucessães e doaçães)(Decree 22 of June 22, 1988; Decree-Law 42/93 of August 10, 1993).Levied on all conveyance of movable property, real estate property, value, or title. Chargeable to the recipientTransfers of less than Db 5,000. Also exempt is the gratuitous conveyance of movable or real estate property to descendants or to nonprofit organizations.Progressive rates between 7 percent ar 25 percent, based on the value of the goods or property conveyed and the degree of kinship between the descend and the heirs.
The tax base is determined by the value of the conveyed goods or property, after deduction of the transferor’s debts and other costs set forth in the regulations.
5.2 Real estate transfer tax (Sisa sobre a transmissão de imobiliarios por titulo oneroso) (Decree 22 of June 22,1988; Decree-Law 42/93 of August 10, 1993).Levied on all onerous conveyances of real estate and chargeable to the purchaser.The state.PropertyRate
Nonprofit organizations.Rural property10 percent
Urban property10 percent
Taxable transactions include specifically
  • sales or bartering of real property, subject to prior authorization of the Planning Minister under Article 1 of Decree-Law 48/75 of June 19, 1975;
  • acquisitions of shares in companies other than business corporations that own real property, if through such acqui-sition one partner becomes the holder of at least 75 percent of the company’s capital or the number of partners is reduced to two and the two are husband and wife married with community property; and
Recipients of real estate who are descendants, ascendants, husbands, wives, brothers or sisters, for property valued at less than Db 30,000.Barter deeds5 percent
  • purchases of freehold of leaseholders and redemptions of property seized in tax enforcement proceedings. The tax base is the value of the conveyance or the assessed income from the property as shown in the real property register, whichever is higher, or determined through direct assessment.
5.3 Stamp tax (Imposto de selo) (Decree-Law 12/76 of April 19, 1976 and annexed schedule; Decree-Law 40/88 of December 20, 1988; Decree-Law 15/93 of March 5, 1993; Decree-Law 81/93 of December31, 1993; Decree-Law 12/96 of April 19, 1996).Levied through
  • revenue stamps (selos fiscais);
  • stamped forms (papel selado);
  • stamped bills (letras seladas);
  • revenue stamps (selos de verba);
  • collection advice stamps;
  • customs stamps;
  • check stamps;
  • pharmaceutical stamps; and
  • miscellaneous stamps.
The state.Examples:
  • stamped forms, Db 50;
  • revenue stamps, Db 1 to Db 1,500;
  • stamped bills, Db 1 to Db 500; and
  • check stamps, Db 3 for local payment and Db 15 for payment abroad.
Religious institutions.
Some items in the schedule annexed to the regulations.
The state has a claim on the stamp tax upon assessment and payment, when it is due on acts and contracts subject to it, and when products subject to it are exhibited or sold.
5.4 Special tax (Imposto especial) (Decree-Law 22793 of June 30,1993).Surtax on the total amount of the following taxes, fees, and other government revenues:
  • import tax;
  • rural property tax;
  • justice, port, and customs duties;
  • enforced collection proceeds; and
  • tax violation proceeds.
None.Single rate of 20 percent.’
5.5 Stamp tax (Imposto do selo de assistência) (Decree-Law 44/T/75 of June 6, 1975; Decree-Law 11/86 of March 31,1986).Tax on customs clearance and receipts, licenses, and certificates.Same as stamp tax.For customs clearance and receipts, specific tax for low values, from Db 2 lo Db 10; and ad valorem rate of 0.15 percent for values above Db 10,000. Specific tax of Db 15 for licenses and Db 10 for certificates.
5.6 Military tax (Decree 17 695 of December 21,1929; Decree 29 115 of November 12, 1938; Decree 32 745 of April 10, 1943; Decree-Law 86/93 of December31, 1993).Due by all nationals who are not doing military service.Disabled nationals.Db 750 or Db 1,000, depending on income levels.
Students, until the end of their studies.
Anyone who is currently part of military or paramilitary services, or who served in the army for at least five years.
5.7 Justice tax(Decree-Law 18/87 of August31, 1987).Due on the value of settlement for fiscal cases.Flat rate of 10 percent.
Source: São Tomé and Príncipe authorities.
APPENDIX II Exchange and Payments System

(As of June 30, 1999)

Exchange arrangement

1. The currency of São Tomé and Príncipe is the São Tomé and Príncipe dobra. Since 1998, the official exchange rate has been determined as a daily average of exchange rates in the bureaux de change, parallel market, and commercial banks.42 On June 30, 1999, the exchange rate (middle rate) for the U.S. dollar, the intervention currency, was Db 7,200 per US$1. Rates for certain other currencies are determined on the basis of the exchange rates of the U.S. dollar for the currencies concerned.

2. Foreign exchange transactions are divided into three categories for the purpose of assessing charges on purchases and sales of foreign exchange: import payments, transactions in foreign checks, and collection of export proceeds.

3. On import-related exchange transactions, the arrangements are as follows: when a letter of credit is opened, a stamp duty of 0.25 percent of the import value and a postage levy of US$2 are levied.43

4. On foreign checks for collection, the commercial banks charge a postage levy of US$2 for each transaction. For collection of export proceeds, a commission of 0.125 percent is charged—with a minimum of US$25 and a maximum of US$300—when the letter of credit is opened, and a fee of 0.125 percent is charged when the funds are received. A postage levy of Db 39,000 is also charged.

5. There are no arrangements for forward cover against exchange rate risk operating in the official or the commercial banking sector.

Administration of control

6. Current account transactions are free of restrictions, following the promulgation of a new law on foreign exchange transactions in August 1999. Previous restrictions were eliminated as follows:

  • allocations of foreign exchange for imports of certain essential goods were eliminated in February 1999;
  • limits on payments for certain invisibles were eliminated in February 1999; and
  • multiple currency practices were eliminated through 1998 and 1999, and the spread between the official and parallel market exchange rates has been kept at less than 1.5 percent.

Export surrender requirements were also eliminated in September 1998.

7. Import and export licenses are recorded, strictly for statistical purposes, by the Directorate of External Commerce.

8. Arrears are maintained with respect to public external debt-service-obligations.

Bilateral agreements

9. The bilateral payment agreement with Cape Verde was terminated, and the corresponding debt to Cape Verde, which amounted to US$1.65 million, was rescheduled on July 21,1995 through an agreement between the Central Bank of Cape Verde and the BCSTP. The debt is being reimbursed in equal quarterly installments, the last installments falling due in March 2000. A bilateral payment arrangement with the Central Bank of Angola is partially operative.

Imports and import payments

10. All registered importers (including productive entities) are permitted to engage in import activity. Import licenses are automatically granted by the Directorate of External Commerce. When importers open letters of credit, the commercial bank (BISTP) requires them to lodge a deposit44 in domestic currency equivalent to 0 percent to 100 percent of the value of the letters of credit, depending on the creditworthiness of the operator.

Payments for invisibles

11. All payments related to invisibles are subject to a stamp tax of 0.5 percent. In addition, commercial banks charge a commission of US$2 for clients (and US$4 for nonclients).

Exports and export proceeds

12. For the purpose of collecting information, all exports require the completion of registration forms, as set out in Advance Export Registration Bulletins, which specify the quantity and c.i.f. or f.o.b. value of the export shipment. The previous mandatory surrender requirements were eliminated in September 1998.

Proceeds from invisibles

13. Travelers may bring in any amount of foreign exchange.

Capital

14. Inward foreign investments are governed by the investment code, which was implemented on October 15,1992. Foreign capital investments, excluding the extraction of hydrocarbons and other mining industries, are permitted on the same basis as domestic investment. Repatriation of profits is permitted for up to 15 percent of the value of the investment a year. Transfers are permitted for repayment of financing under agreements with the government and for the amortization of private sector investments in activities considered to be in the national interest. Nonresidents holding foreign currency accounts can freely transfer funds abroad. Personnel under technical assistance programs are allowed to transfer their savings in accordance with the terms of their contracts.

STATISTICAL APPENDIX
Table 17.São Tomé and Príncipe: Gross Domestic Product and Expenditure at Current Prices, 1994-99(In millions of dobras, unless otherwise specified)
199419951996199719981999
Est.
Primary sector9,24917,07024,58349,53759,88469,260
Agriculture8,22315,21021,68843,53751,27057,106
Fisheries1,0261,8602,8956,0008,61412,155
Secondary sector7,29012,68918,67132,96146,83856,658
Manufacturing and energy1,9432,6485,24910,89015,63018,459
Construction5,0049,43112,48722,07131,20838,199
Tertiary sector19,75634,85455,647117,502174,278208,190
Commerce and transport7,85014,48222,71148,39669,26178,638
Public administration8,08813,21121,78846,00065,68876,901
Financial institutions2,0414,5918,67217,53625,04129,373
Other services1,7772,5702,4765,57014,28723,278
Gross domestic product36,29564,61398,900200,000281,000334,109
Consumption42,63571,958112,496232,962300,689362,599
Private31,04454,13185,618169,100228,613263,184
Public 1/11,59117,82726,87963,86272,07699,415
Consumption42,63571,958112,496232,962300,689362,599
Private31,04454,13185,618169,100228,613263,184
Public 1/11,59117,82726,87963,86272,07699,415
Gross fixed capital formation15,09644,00455,54098,296100,587133,574
Private5,44422,61526,70354,00044,96046,775
Public 1/9,65221,39028,837443655,62786,799
Change in inventory000000
Gross domestic expenditure57,731115,963168,037331,257401,276496,173
Resource balance-21,436-51,350-69,137-131,257-120,276-162,064
Exports of goods and nonfactor services8,60113,32223,44956,64783,365116,954
Imports of goods and nonfactor services 1/30,03764,67292,585187,905203,641279,018
Memorandum items:
Gross domestic savings-6,340-7,345-13,596-32,962-19,689-28,490
Private domestic savings8494635361,7131,97011,163
Public domestic savings-7,189-7,808-14,133-34,675-21,659-39,653
Gross national savings2,89917,83424,70091,09541,39848,809
Private national savings-4,693-14,338-18,932-38,745-63,587-51,140
Public national savings7,59232,17143,632129,839104,98599,948
GDP deflator (annual percentage change)73.574.550.8100.237.116.0
Nominal GDP (annual percentage change)77.378.053.1102.240.518.9
Real GDP (annual percentage change)2.22.01.51.02.52.5
Sources: São Tomé and Príncipe authorities; and staff estimates.

Starting in 1995, public consumption, public investment, and imports include technical assistance and other expenditure for projects managed directly by foreign donors. These data are not available for previous years.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Starting in 1995, public consumption, public investment, and imports include technical assistance and other expenditure for projects managed directly by foreign donors. These data are not available for previous years.

Table 18.São Tomé and Príncipe: Gross Domestic Product and Expenditure at Current Prices, 1994-99(In percent of GDP)
199419951996199719981999
Est.
Primary sector25.526.424.924.821.320.7
Agriculture22.723.521.921.818.217.1
Fisheries2.82.92.93.03.13.6
Secondary sector20.119.618.916.516.717.0
Manufacturing and energy6.35.06.25.45.65.5
Construction13.814.612.611.011.111.4
Tertiary sector55.453.956.358.862.062.3
Commerce and transport21.622.423.024.224.623.5
Public administration22.320.422.023.023.423.0
Financial institutions5.67.18.88.88.98.8
Other services5.94.02.52.85.17.0
Gross domestic product100.0100.0100.0100.0100.0100.0
Consumption117.5111.4113.7116.5107.0108.5
Private85.583.886.684.581.478.8
Public 1/31.927.627.231.925.629.8
Gross fixed capital formation41.668.156.249.135.840.0
Private15.035.027.027.016.014.0
Public 1/26.633.129.222.119.826.0
Change in inventory0.00.00.00.00.00.0
Gross domestic expenditure159.1179.5169.9165.6142.8148.5
Resource balance-59.1-79.5-69.9-65.6-42.8-48.5
Exports of goods and nonfactor services23.720.623.728.329.735.0
Imports of goods and nonfactor services 1/82.8100.193.694.072.583.5
Memorandum items:
Gross domestic savings-17.5-11.4-13.7-16.5-7.0-8.5
Private domestic savings2.30.70.50.90.73.3
Public domestic savings-19.8-12.1-14.3-17.3-7.7-11.9
Gross national savings8.027.625.045.514.714.6
Private national savings-12.9-22.2-19.1-19.4-22.6-15.3
Public national savings20.949.844.164.937.429.9
Sources: São Tomé and Príncipe authorities; and staff estimates.

Starting in 1995, public consumption, public investment, and imports include technical assistance and other expenditure for projects managed directly by foreign donors. These data are not available for previous years.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Starting in 1995, public consumption, public investment, and imports include technical assistance and other expenditure for projects managed directly by foreign donors. These data are not available for previous years.

Table 19.São Tomé and Príncipe: Gross Domestic Product and Expenditure at Constant Prices, 1994-99
199419951996199719981999
Est.
(In millions of 1991 dobras)
Gross domestic product11,94712,18612,36812,49212,80413,124
Consumption14,64714,06914,37215,11214,91115,124
Private10,07010,2849,8889,63110,0959,423
Public 1/4,5773,7854,4855,4804,8165,700
Gross fixed capital formation4,1305,6314,7274,3662,9133,726
Change in inventory000000
Gross domestic expenditure18,77719,70019,09919,47817,82318,850
Resource balance-6,830-7,514-6,731-6,986-5,020-5,726
Exports of goods and nonfactor services1,6891,2301,3031,4041,6092,204
Imports of goods and nonfactor services 1/8,5198,7448,0348,3906,6287,929
(Annual percentage change)
Gross domestic product2.22.01.51.02.52.5
Consumption-2.2-3.92.25.1-1.31.4
Private-8.72.1-3.8-2.64.8-6.7
Public 1/15.9-17.318.522.2-12.118.4
Gross fixed capital formation18.936.4-16.0-7.6-33.327.9
Gross domestic expenditure1.84.9-3.02.0-8.55.8
Resource balance-1.1-10.010.43.8-28.214.1
Exports of goods and nonfactor services-26.7-27.25.97.814.637.0
Imports of goods and nonfactor services 1/-6.02.6-8.14.4-21.019.6
Sources: São Tomé and Príncipe authorities; and staff estimates.

Starting in 1995, public consumption, public investment, and imports include technical assistance and other expenditure for projects managed directly by foreign donors. These data are not available for previous years.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Starting in 1995, public consumption, public investment, and imports include technical assistance and other expenditure for projects managed directly by foreign donors. These data are not available for previous years.

Table 20.São Tomé and Príncipe: Land Distribution, 1993-99
1993199419951996199719981999
(In hectares)
Total area redimensioned 1/4,361-68,553.66,743.95,662.46,342.93,013.31,394.7
Small farms (3-10 hectares)1,591.53,083.02,571.02,657.22,472.31,158.8278.0
Medium-sized farms (10-50 hectares)1,287.0792.92,233.0387.01,691.6294.5119.0
Forest and other noncultivable areas1,483.14,677.71,939.92,618.22,178.91,560.0997.7
(In percent of total area redimensioned, unless otherwise indicated)
Total area redimensioned100100100100100100100
Small farms (3-10 hectares)36363847393820
Medium-sized farms (10-50 hectares)30933727109
Forest and other noncultivable areas34552946345272
Memorandum item:
Number of beneficiary families8438599177301,151665213
Source: São Tomé and Príncipe

The land distribution project was initiated in 1993 with the objective of distributing 20,000 hectares from government agricultural estates to small and medium-sized farms. At end-1992, the government estates covered approximately 65,367 hectares, of which 33,821 hectares were cultivated.

Source: São Tomé and Príncipe

The land distribution project was initiated in 1993 with the objective of distributing 20,000 hectares from government agricultural estates to small and medium-sized farms. At end-1992, the government estates covered approximately 65,367 hectares, of which 33,821 hectares were cultivated.

Table 21.São Tomé and Príncipe: Production of Principal Agricultural Crops, 1992-98(In metric tons)
1992199319941995199619971998
Est
Export crops
Cocoa3,6884,3053,3923,8453,5003,1383,928
Copra679678572501507433162
Coffee14202229204536
Food crops
Ananas1,507
Cane20,085
Bananas12,00013,00013,65012,68513,50025,00034,596
Breadfruit1,4701,8001,5001,6001,8002,0002,500
Palm oil1,5008757317201,1791,183980
faro6,0007,0008,5008,24510,00015,00020,964
Maize4,0004,0004,3004,0004,5004,0001,352
Source: São Tomé and Príncipe
Table 22.São Tomé and Príncipe: Energy Production and Consumption, 1992-98
1992199319941995199619971998
(In thousands of kilowatt-hours)
Electricity production 1/19,55120,18120,56418,66420,32822,79427,154
Hydroelectricity6,2866,7684,8943,2635,0566,1577,409
Thermoelectricity13,26513,41315,67015,40115,27216,63719,745
Electricity consumption12,45214,13511,93113,58014,44415,16616,083
Residential6,2266,7966,7496,9397,3807,7508,217
Industrial and other 2/6,2267,3395,1826,6417,0647,4177,866
(In millions of dobras)
Electricity production 1/619.8925.61,029.3
Hydroelectricity225.1
Thermoelectricity394.7
Electricity consumption544.9571.11,463.22,397.84,967.810,553.918,500.0
Residential193.4217.0619.8994.82,030.34,313.27560.0
Industrial and other 2/351.5354.1843.51,402.92,937.56,240.710,937.8
(Dobras per kilowatt-hour)
Electricity production 1/31.745.950.1
Hydroelectricity35.8
Thermoelectricity29.8
Electricity consumption46.945.9103.5201.0365.8730.71,150.1
Residential34.734.991.2147.4292.6584.4920.0
Industrial and other 2/58.256.9114.9270.8442.3883.61,390.6
Sources: São Tomé and Príncipe authorities; and staff

Production exceeds consumption owing to losses in distribution.

Including the government

Sources: São Tomé and Príncipe authorities; and staff

Production exceeds consumption owing to losses in distribution.

Including the government

Table 23.São Tomé and Príncipe: Imports of Petroleum Products, 1992-98
1992199319941995199619971998
Est.
(In thousands of liters)
Volume of imports
Gasoline4,0193,2983,4144,5424,6104,5714,827
Diesel7,9207,2378,41010,2119,6839,54610,816
Kerosene 1/4,0343,7532,2173,0474,6091,8381,771
Jet A-12,9032,549
(In millions of U.S. dollars)
Value of imports, c.i.f.2.72.32.22.63.84.12.0
Gasoline0.60.50.60.70.91.20.5
Diesel1.51.21.31.41.92.41.0
Kerosene0.60.60.40.51.00.50.5
(Dobras per Hter)
Average retail price
Gasoline3003704347531,0352,0173,000
Diesel1682302864837341,2752,300
Kerosene971001092674028331,600
Jet A-11432402002524028331,455
(U.S. dollars per liter)
Average retail price
Gasoline0.940.860.590.530.470.440.44
Diesel0.520.540.390.340.330.280.34
Kerosene0.300.230.150.190.180.180.21
Jet A-l0.450.560.270.180.180.180.21
World price, c.i.f
Gasoline0.140.150.200.220.260.250.17
Diesel0.170.170.190.210.240.230.16
Kerosene0.180.180.200.220.260.250.17
Import price, c.i.f
Gasoline0.150.150.160.150.200.270.12
Diesel0.190.160.160.140.190.250.11
Kerosene0.150.160.160.160.220.270.11
Sources: São Tomé and Príncipe authorities; and staff estimates.

Kerosene and Jet A-1 imports are reported together before 1997.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Kerosene and Jet A-1 imports are reported together before 1997.

Table 24.São Tomé and Príncipe: Cost Structure of Petroleum
GasolineDieselKeroiseneJet A-l
In percentDobrasIn percentDobrasIn percentDobrasIn percentDobras
of c.i.f costper literof c.i.f costper literof c.i.f cost’per titerof c.i.f costper liter
Average import cost, c.i.f.1.008311.007621.007621.00954.00
Import duty0.665490.544110.10760.0657.00
Sales tax0.534410.09690.04300.000.00
Road maintenance tax0.04320.04290.0000.000.00
ENCO’s handling and distribution costs 1/0.484020.473600.342560.18172.00
ENCO’s wholesale margin0.10830.09690.05420.000.00
Retail margin0.10830.09690.07550.000.00
Contribution to operating expenses0.705800.705300.503780.29272
Average retail price3.613,0003.022,3002.101,6001.531,455
Memorandum items:
Total imports (in thousands of liters; excluding EMAE) 2/4,82753791,7712,549
(in millions of dobras)
EMAE’s consumption value04,25000
Contribution to operating expenses2,7992,853670693
Import duty due2,6482,213135145
Sales tax due2,126369540
Sources: São Tomé and Príncipe authorities; and staff

ENCO, the fuel importing company.

EMAE, the water and electricity company.

Sources: São Tomé and Príncipe authorities; and staff

ENCO, the fuel importing company.

EMAE, the water and electricity company.

Table 25.São Tomé and Príncipe: Components of the Official Consumer Price Index, 1995-98 1/(1996=100; end of period)
Weights1995199619971998
(in percent)
Food, beverages, and tobacco71.8780.43124.90219.62261.94
Clothing5.2583.03111.96185.90286.43
Housing and energy10.1680.59125.39267.10312.36
Furniture, electrical equipment, and2.7583.03122.23252.20328.46
other housing equipment
Health services1.2986.38107.60241.90359.51
Transport and cornmunications6.4293.23126.35233.50245.66
Entertainment and cultural activities0.7382.69120.10140.14208.46
Education0.4278.46119.30211.23279.62
Hotels and restaurants0.6583.55105.60146.70239.40
Other0.4684.26108.90169.50277.66
General index100.0081.60123.81223.43270.00
Source: São Tomé and Príncipe authorities.

Until 1996, data for the official consumer price index were subject to serious deficiencies in measurement and coverage and therefore should be interpreted with caution.

Source: São Tomé and Príncipe authorities.

Until 1996, data for the official consumer price index were subject to serious deficiencies in measurement and coverage and therefore should be interpreted with caution.

Table 26.São Tomé and Príncipe: Monthly Movements in the Official Consumer Price Index, January 1993-December 1998 1/
199319941995199619971998
(1996 = 100)
January38.446.665.386.8127.2229.8
February39.047.467.089.2129.2241.2
March39.648.168.390.2132.2244.3
April40.448.669.790.9137.4247.0
May40.950.271.693,2156.5250.8
June41.351.172.694.7162.4253.7
July42.152.073.095.6171.3256.0
August42.454.274.396.8177.5257.3
September43.356.175.7105.4182.0259.4
October44.058.476.3114.9198.3261.8
November44.860.177.2118.5215.5265.2
December45.763.081.6123.8223.4270.0
Annual average41.853.072.7100.0168.2253.1
(Annual percentage change)
Rate of inflation
End of period21.837.729.551.780.520.9
Annual average25.526.637.337.567.750.9
Source: São Tomé and Príncipe authorities

Until 1996, data for the official consumer price index were subject to serious deficiencies in measurement and coverage and therefore should be interpreted with caution.

Source: São Tomé and Príncipe authorities

Until 1996, data for the official consumer price index were subject to serious deficiencies in measurement and coverage and therefore should be interpreted with caution.

Table 27.São Tomé and Príncipe: Monthly Movements in Components of the Official Consumer Price Index, December 1998
Weight199619971998
(in percent)Dec.Dec.Jan.Feb.MarchAprilMayJuneJulyAug.Sep.Oct.Nov.Dec.
(1996=100)
Food, beverages, and tobacco71.9124.9219.6225.3240.2243.3242.6245.0246-4250.0249.9251.5254.7259.9261.9
Clothing5.3112.0185.9188.4188.6193.2202.3210.3213.2218.3233.4246.9241.4246.4286.4
Housing and energy10.2125.4267.1287.6290.0293.8297.7298.1303.9302.0305.5306.1312.2306.3312.4
Furniture, electrical equipment, and
other housing equipment2.8122.2252.2261.3276.4284.4316.8311.5329.8334.7341.4325.3319.8334.5328.5
Health services1.3107.6241.9243.9234.9251.4286.5292.0282.9292.9292.9323.8321.3329.7359.5
Transport and communications6.4126.4233.5229.9229.9229.1234.8260.4271.0257.2257.4258.8258.0245.7245.7
Entertainment and cultural activities0.7120.1140.1142.5142.5143.3166.0169.2171.6182.5179.7181.0186.6186.5208.5
Education0.4119.3211.2211.2211.2211.2219.9210.6214.2209.2209.2233.6243.4281.5279.6
Hotels and restaurants0.7105.6146.7148.3153.3157.0169.1169.1173.0198.6198.6195.8199.4216.9239.4
Other0.5108.9169.5173.5180.1172.7231.2251.3253.3263.4264.6262.1259.9259.8277.7
General index100.0123.8223.4229.8241.2244.3247.0250.8253.7256.0257.3259.4261.8265.2270.0
(Percentage change)
Cumulative rate of inflation51.780.52.87.99.410.612.313.614.615.216.117.218.720.8
Average annual inflation37.567.750.9
Source: São Tomé and Príncipe authorities
Table 28.São Tomé and Príncipe: Financial Transactions of the Central Government, 1993-98(In millions of dobras)
199319941995199619971998
Total revenue and grants7,10211,18625,77736,54786,77381,747
Tax revenue2,6693,6266,3298,91221,23636,635
Consumption taxes1,0601,2721,8392,1794,1869,280
Import taxes9751,2751,9542,5684,70110,114
Export taxes662076168161,8742,956
Other taxes5688724977741,57514,285
Nontax revenue1,0251,1914,3574,36810,00917,867
Of which: transfers from enterprises5964156685342,0584,085
Grants3,4086,36915,09123,26855,52827,245
Total expenditure and net lending13,98226,78749,97268,387140,174167,518
Current expenditure6,67311,28515,48026,79655,67580,709
Personnel costs1,0931,8792,1634,14011,70918,930
Of which: wages and salaries6808679271,2958,15112,885
Goods and services5231,3342,3223,4437,0049,240
Interest on external debt due2,3473,9827,7829,74722,35633,667
Interest on internal debt due0001201631,143
Transfers4938541,0156,0188,8928,441
Defense04137171,2251,630655
Other current expenditures 1/2,1772,7451,2761,4993,3207,783
Redeployment fund4179206604596850
Capital expenditure 2/7,30915,50234,56341,59184,49987,328
Financed by the treasury5641,0993,0398932,4717,177
Recorded by extraordinary funds0000015,557
Foreign-financed6,74514,40331,52440,69882,02864,594
Net lending00-7200-519
Overall fiscal balance-6,881-15,601-24,195-31,839-53,401-85,771
Change in arrears (net; reduction -)2,0623,9555,4334,89920,97921,110
External arrears (net; reduction -)2,0083,0044,8006,98117,56624,523
Domestic arrears (net; reduction -)54951633-2,0833,413-3,413
Overall fiscal balance (cash basis)-4,819-11,646-18,763-26,941-32,423-64,661
Financing4,81911,64618,76326,94132,42364,661
External (net)4,2678,01618,61615,97253,35814,873
Disbursements (projects)4,3858,34518,90018,86228,54437,349
Amortization (net)-715-9,040-39,348-2,890-5,156-22,476
Scheduled-3,263-4,586-6,915-6,948-17,794-27,432
Net change in arrears (reduction -)2,547-4,453-32,4334,05812,6384,956
Debt relief5978,71139,064000
Domestic (net)5523,63014610,968-20,93549,788
Banking credit5523,5865742,8966,5976,270
Use of counterpart funds044-4288,072-1,7510
Privatization proceeds0000015,809
Oil concession rights proceeds000013,93927,709
Sources: São Tomé and Príncipe authorities; and staff estimates.

Includes payments to embassies, as well as recurrent costs of projects in agriculture and social sectors.

Includes outlays for technical assistance and other expenditures on social projects not associated with capital formation.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Includes payments to embassies, as well as recurrent costs of projects in agriculture and social sectors.

Includes outlays for technical assistance and other expenditures on social projects not associated with capital formation.

Table 29.São Tomé and Príncipe: Central Government Revenue, 1993-98(In millions of dobras)
199319941995199619971998
Total revenue and grants7,10211,18625,77736,54786,77381,747
Tax revenue2,6693,6266,3298,91221,23636,635
Direct taxes3285171,5052,8099,17011,995
Profit taxes1191488291,0844,8106,074
Income taxes1283245941,4904,0905,468
Other814582235270453
Indirect taxes2,3413,1094,8236,10212,06624,640
Import taxes9751,2751,9542,5684,70110,114
Export taxes662076168161,8742,956
Consumption taxes1,0601,2721,8392,1794,1869,280
On imported goods7151,1231,5692,1784,1689,219
On domestic goods34514927011861
Other2403554145391,3052,290
Nontax revenue1,0251,1914,3574,36810,00917,867
Transfers from enterprises5964156685342,0584,085
Fishing royalties3385359742,1213,4715,204
Other912412,7161,7134,4808,578
Grants3,4086,36915,09123,26855,52827,245
Sources: São Tomé and Príncipe authorities; and staff estimates.
Table 30.São Tomé and Príncipe- Central Government Expenditure, 1993-98(In millions of dobras)
199319941995199619971998
Total expenditure and net lending13,98226,78749,97168387140,174167,518
Current expenditure6,67311,28515,48026,79655,67580,709
Personnel costs1,0931,8792,1634,14011,70918,930
Wages and salaries6808679271,2958,15112,885
Local5286958851,2957,26210,786
Embassies3S374108892,099
Bonuses and allowances 1/1341350000
Travel2735195831,5442,7794,373
Family allowances211300
Other personnel expenditures 1/94443590U072901,023
Social security payments40496391489649
Goods and services5231,3342,3223,4437,0049,240
Durable goods1835581,495429361
Nondurable goods2273895759055441,378
Petroleum products63104157219282432
Other158285417686262946
Services2789101,6891,0436,0317,501
Of which: electricity49600541392,9704,555
transport and communications1491412211901,9672,154
Interest on external debt due2,3473,9827,7829,74722,35633,667
Interest on internal debt due0001201681,143
Transfers4938541,0156,0188,8928,441
Public entities1722695361,3095,8131,749
Public enterprises13025503,0709132,217
Private sector521123295291,5252,600
Private institutions657171851
Individuals471073225121,5072,549
External1382171501,1096411,875
Other current expenditures2,1773,1581,9942,8444,9508,438
Embassies1452282403871,629
Defense04137171,2251,630655
Extraordinary expenditures1,4501,72500351540
Other 2/5827921,0361,2322,9695,614
Redeployment fund4179206604596850
Capital expenditure 3/7,30915,50234,56341,59184,49987,328
Financed by the treasury5641,0993,0398932,4717,177
Financed by extraordinary funds0000015,557
Financed by external sources6,74514,40331,52440,69882,02864,594
Net lending00-7200-519
Memorandum item:
Total expenditure and net lending, excluding
foreign-financed capital expenditure7,23712,38418,44827,68958,14687,367
Sources: São Tomé and Príncipe authorities; and staff estimates.

Includes bonuses and allowances, except in 1993 and 1994, where they were recorded in wages and salaries.

Includes recurrent costs of projects in agriculture and social sectors, as well as defense expenditures for 1993.

Includes outlays for technical assistance and other expenditures on social projects not associated with capital formation.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Includes bonuses and allowances, except in 1993 and 1994, where they were recorded in wages and salaries.

Includes recurrent costs of projects in agriculture and social sectors, as well as defense expenditures for 1993.

Includes outlays for technical assistance and other expenditures on social projects not associated with capital formation.

Table 31.São Tomé and Príncipe: Fiscal Indicators, 1993-98
199319941995199619971998
(Annual percentage change)
Total revenue and grants66.557.5130.441.8137.4-5.8
Tax revenue37.235.974.540.8138.372.5
Direct taxes66.258.0190.986.6226.430.8
Indirect (axes33.932.855.126.597.7104.2
Of which: import taxes29.330.753.331.483.1115.1
export taxes-35.0215.8197.832.4129.657.7
Nontax revenue2.416.1266.00.3129.178.5
Of which: transfers from enterprises4.0-30.460.9-20.0285.298.5
Grants158.786.9136.954.2138.6-50.9
Total expenditure35.191.686.636.9105.019.5
Current expenditure51.469.137.273.1107.845.0
Of which: personnel costs4.471.915.191.4182.861.7
goods and services7.2155.274.148.3103.431.9
interest on external debt due46.669.695.425.3129.450.6
Capital expenditure23.0112.1123.020.3103.23.3
(In percent of total revenue and grants)
Total revenue and grants100.0100.0100.0100.0100.0100.0
Tax revenue37.632.424.624.424.544.8
Direct taxes4.64.65.87.710.614.7
Indirect taxes33.027.818.716.713.930.1
Of which: import taxes13.711.47.67.05.412.4
export taxes0.91.92.42.22.23.6
Nontax revenue14.410.616.912.011.521.9
Of which: transfers from enterprises8.4? 3.72.61.52.45.0
Grants48.056.958.563.764.033.3
(In percent of total expenditure and net lending)
Total expenditure and net lending100.0100.0100.0100.0100.0100.0
Current expenditure47.742.131.039.239.748.2
Of which: personnel costs7.87.04.36.18.411.3
goods and services3.75.04.65.05.05.5
interest on external debt due16.S14.915.614.315.920.1
Capital expenditure52.357.969.260.860.352.1
Financed by the Treasury4.04.16.11.31.84.3
Financed by extraordinary funds0.00.00.00.00.09.3
Financed by external sources48.253.863.159.558.538.6
(In percent of GDP)
Total revenue and grants34.730.839.937.043.429.1
Of which: tax revenue13.010.09.89.010.613.0
Total expenditure and net lending68373.877.369.170.159.6
Current expenditure32.631.124.027.127.828.7
Capital expenditure35.742.753.542.142.231.1
Primary current balance 1/-22.1-32.0-25.4-22.5-15.4-18.1
Primary overall balance 2/-5.8-9.90.0-4.7-2.20.7
Overall balance (commitment basis)-33.6-43.0-37.4-32.2-26.7-30.5
Sources: São Tomé and Príncipe authorities; and staff estimates.

Excluding interest obligations, including grants.

Excluding interest obligations, grants, and foreign-financed capital expenditures.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Excluding interest obligations, including grants.

Excluding interest obligations, grants, and foreign-financed capital expenditures.

Table 32.São Tomé and Príncipe: Public Investment Program, 1992-98
1992199319941995199619971998
(In millions of U.S. dollars)
Total investment18.117.321.224.418.918.713.2
Public administration0.60.20.71.10.50.61.0
Agriculture8.39.28.57.86.97.23.5
Water and sewage 1/0.20.91.31.10.80.30.2
Education0.81.64.15.62.32.51.0
Energy 1/0.32.21.34.13.50.81.3
Housing0.30.20.20.10.40.40.1
Fisheries0.20.20.30.50.60.60.2
Health0.40.60.62.33.04.22.4
Transport and telecommunications7.12.34.01.71.01.63.4
Other0.00.0O.O0.00.00.50.1
Financing18.117.321.224.418.918.713.2
Foreign16.315.719.722.218.518.210.2
Grants3.95.58.38.99.912.04.6
Loans12.410.211.413.38.66.25.6
Domestic1.81.61.52.20.40.53.0
Counterpart funds0.10.00.00.30.20.12.1
Budget1.71.61.51.90.20.40.9
(In percent of total investment)
Total investment100.0100.0100.0100.0100.0100.0100.0
Public administration3.11.03.54.72.43.15.5
Agriculture45.852.940.232.036.438.718.8
Water and sewage 1/0.85.26.34.54.21.41.1
Education4.39.319.423.012.413.65.4
Energy 1/1.412.76.117.018.34.37.0
Housing1.51.11.00.42.22.00.4
Fisheries1.01,31.52.13.13.31.1
Health2.33.43.09.416.022.512.9
Transport and telecommunications39.113.119.07.05.08.518.3
Financing100.0100.0100.0100.0100.0100.0100.0
Foreign90.090.592.991.297.997.377.1
Grants21.631.739.136.552.464.124,7
Loans68.458.953.854.745.433.229,9
Domestic10.09.57.18.82.12.722.9
Counterpart funds0.60.20.01.21.20.615.9
Budget9.49.27.17.61.12.17.0
Sources: São Tomé and Príncipe authorities; and staff estimates.

Until 1992, the energy sector was included in the water and sewage sector.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Until 1992, the energy sector was included in the water and sewage sector.

Table 33.São Tomé and Príncipe: Status of Public Enterprises, November 1999(In billions of dobras, unless otherwise specified)
Government Ownership - (In percent of total)Total AssetsNumber of EmployeesNet ProfitsStatus
Nonagriciutural enterprises
Africa Fishing, SA49Decision pending
Agua Grande (textiles)Privatized in 1998
Air São Tomé (national airline) 1/2/358.970-0.80Cabinet decision pending Divestiture planned for 2000
Compensadora (insurance)Liquidated
Correios (postal services) 3/1000.63600.04Strategic public enterprise
CST (telecommunications) 1/49571234.0051% Radio Marconi S.A. (Portugal Telecom)
Cunha Gomes, SA 1/4/302.28LossCabinet decision pending Divestiture planned in 2000
EMAE (water and electricity) 3/10048.52871.30Strategic public enterprise
EMOLVE (edible oil)100Cabinet decision pending To be privatized in 2000
ENAMED (pharmaceuticals)10010Liquidated in April 1999
ENAPORT (ports) 1/1003.61310.10Strategic public enterprise
ENASA (air traffic security) 1/10018.51200.10Strategic public enterprise
ENCAR (meat distribution)100Subdivided and privatized
ENCO (petroleum products) 1/5/5143322.60Since April 98: 40% Sonangol 9% local shareholders
OpticaNacional (eyeglasses) 6/Deactivated
Pousada Boa Vista (hotel) 3/1004.338To be privatized in 2000
Agricultural enterprises
Bela Vista100Leasing contract
Agostinho Neto100Leasing contract
Diogo Vaz100Leasing contract
Monte Cafe100200To be privatized in 2000
Porto Alegre100Leasing contract
Porto Real100Free trade zone
Santa Margarida100Under lease contract
Sundi100Free trade zone
Uba Budo100Underlease
Source: São Tomé and Príncipe authorities; and financial information supplied by enterprises.

Latest financial statements available: 12/31/98.

Other shareholders: TAP Air Portugal 40 percent, Golfo Lntemacional Air Services 24 percent, Mistral Voyages 1 percent.

Figures as of 1997.

Other shareholders: Cunha Gomes S.A. 40 percent, Paulo Henriques Batista Patricio 10 percent, Coiquimica S.A. 10 percent, Aureliano Veloso 10 percent.

Net profit includes nine months only.

Part of ENAMED.

Source: São Tomé and Príncipe authorities; and financial information supplied by enterprises.

Latest financial statements available: 12/31/98.

Other shareholders: TAP Air Portugal 40 percent, Golfo Lntemacional Air Services 24 percent, Mistral Voyages 1 percent.

Figures as of 1997.

Other shareholders: Cunha Gomes S.A. 40 percent, Paulo Henriques Batista Patricio 10 percent, Coiquimica S.A. 10 percent, Aureliano Veloso 10 percent.

Net profit includes nine months only.

Part of ENAMED.

Table 34.São Tomé and Príncipe: Monetary Survey, 1994-98 1/
199419951996199719971998
Adj. 2/Est.
(In millions of dobras; end of period)
Net foreign assets5,57512,86723,453109,021108,185113,062
Central bank-1,76037757353,08653,09366,677
Commercial banks7,33512,49122,88055,93555,09246,385
Net domestic assets9,16410,09415,763-34,652-36,134-23,348
Net domestic credit12,27411,41817,699-23,309-25,725-3,089
Net credit to government-2,312-3,1138,896-35,256-33,123-19,998
Net credit to government, excluding counterpart funds6,7557,82918,562-14,656-12,5234,272
Claims8,55110,29028,74328,93929,46235,266
Budgetary deposits-1,796-2,462-10,182-43,595-41,985-30,994
In domestic currency-2,462-8,752-2,351-835-3,137
In foreign currency0-1,430-41,244-41,150-27,857
Counterpart funds-9,067-10,942-9,666-20,600-20,600-24,271
Net claims on other public institutions-1,200
Credit to the economy14,58714,5318,80311,9477,39818,309
Other items (net)-3,110-1,324-1,936-11,343-10,409-20,259
Revaluation accounts-2,7922,0184,82521,84121,8412,111
Other-318-3,342-6,760-33,184-32,250-22,370
Broad money14,73922,96139,21674,36972,05189,714
Money8,91614,25123,26740,86038,99745,257
Currency in circulation3,7604,7946,84514,82314,82318,677
Demand deposits5,1569,45716,42226,03724,17426,580
Quasi money5,8238,71015,94933,50933,05444,457
Time deposits (local currency)90997453891913,001
Time deposits in foreign exchange5,7338,61115,20433,12032,86341,456
(Changes from the beginning of the year in millions of dobras)
Net foreign assets7,29210,58685,56884,7324,877
Net domestic assets9295,669-50,415-51,89712,786
Net domestic credit-8576,281-11,008-43,42422,636
Net credit to government-80112,009-44,152-42,01913,125
Net credit to government excluding counterpart funds1,07410,733-33,218-31,08516,795
Credit to the economy-56-5,7283,144-1,40510,711
Broad money (M2)8,22216,25535,15332,83517,663
Domestic M25,3449,66217,23715,1769,070
Currency in circulation1,0342,0517,9787,9783,854
Deposits in local currency4,3107,6119,2597,1985,216
Deposits in foreign currency2,8786,59317,91617,6598,593
(Changes in percent of beginning of period money stock, unless otherwise specified)
Net foreign assets 2/49.546.1218.2216.16.8
Net domestic assets6.324.7-128.6-132.317.7
Net domestic credit-5.827.4-104.6-110.731.4
Net credit to government-5.452.3-112.6-107.118.2
Net credit to government, excluding counterpart funds7.346.7-84.7-79.323.3
Credit to the economy-0.4-24.98.0-3.614.9
Credit to the economy (annual increase)-0.4-39.435.7-38.1144.8
Broad money (M2)55.870.889.683.724.5
Domestic M236.342.144.038.712.6
Currency in circulation7.08.920.320.35.3
Deposits in local currency29.233.123.618.47.2
Deposits in foreign currency19.528.745.745.011.9
(Annual percentage change)
Net credit to government34.6-385.7-496.3-6.0-39.6
Budgetary deposits37.1313.6328.2-3.7-26.2
Credit to the economy-0.4-39.435.7-38.1144.8
Domestic M259.3467.3371.79-5.0023.14
Currency in circulation27.542.8116.60.026.0
Deposits in local currency82.279.653.9-7.821.4
Deposits in foreign currency50.276.6117.8-0.826.1
Sources: São Tomé and Príncipe authorities; and staff estimates.

As of December 1995, central bank stock data reflect regularization and liquidation of the outstanding operations of the former National Bank (BNSTP), as well as more accurate estimates of foreign assets and liabilities.

Beginning in I997(Adj.), the obligations of the liquidated bank CNPC vis-à-vis the central bank have been taken over by the government.

Sources: São Tomé and Príncipe authorities; and staff estimates.

As of December 1995, central bank stock data reflect regularization and liquidation of the outstanding operations of the former National Bank (BNSTP), as well as more accurate estimates of foreign assets and liabilities.

Beginning in I997(Adj.), the obligations of the liquidated bank CNPC vis-à-vis the central bank have been taken over by the government.

Table 35.São Tomé and Príncipe: Summary Accounts of the Central Bank, 1994-98(In millions of dobras; end of period)
199419951996199719971998
Adj. 1/Est
Net foreign assets-1,76037757353,08653,09366,677
Foreign assets5,7198,95014,20486,60386,61066,687
Foreign liabilities-7,479-8,573-13,631-33,517-33,517-10
Net domestic assets11,15010,08518,372-7,617-8,010-18,305
Net domestic credit17,37410,25014,745-22,354-23,681-18,993
Net credit to government-382-4212,783-24,243-23,731-17,837
Claims8,55110,29028,74328,93930,77838,941
Deposits-8,933-10,333-15,960-53,182-54,509-56,778
Of which: counterpart funds-8,933-10,333-10,52120,600-20,600-24,271
Net claims on norriinancial public enterprises7,8377,837000-1,200
Claims on private sector080204505044
Claims on financial institutions9,9192,3751,7571,83900
Other items (net)-6,224-1653,62614,73715,671688
Revaluation accounts1,5942,0185,43221,84121,8412,111
Other-7,817-2,183-1,806-7,104-6,170-1,423
Base money9,39110,46218,94445,46945,08348,372
Currency outside banks3,7604,7946,84514,82314,82318,677
Reserve deposits (including cash holdings)5,6315,66812,09930,64630,26029,695
Sources: São Tomé and Príncipe authorities; and staff estimates.

Beginning in 1997(Adj.), the obligations of the liquidated bank CNPC vis-à-vis the central bank have been taken over by the government.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Beginning in 1997(Adj.), the obligations of the liquidated bank CNPC vis-à-vis the central bank have been taken over by the government.

Table 36.São Tomé and Príncipe: Summary Accounts of Banking Institutions, 1994-98(In millions of dobras; end of period)
19941995199619971997/1998
Adj. 1/Est
Net foreign assets7,33512,49122,88055,93555,09246,385
Foreign assets7,33512,49122,88055,93555,09246,385
Foreign liabilities 2/000000
Net domestic assets3,6445,6769,4903,611 ?2,13624,652
Reserves4,7635,48812,73030,64630,59630,127
Cash on hand4962217161,5401,5352,249
Local currency deposits at the central bank7571,1986,62326,42126,38125,549
Foreign currency deposits at the central bank3,0444,0695,3902,6852,6802,329
Deposits in other domestic financial institutions46600000
Credit from the central bank0-250-1,150-1,20000
Net domestic credit4,8203,5434,711-1,616-2,04417,743
Net credit to government 3/-1,930-3,071-3,888-13,513-9,392-322
Credit to the economy6,7506,6148,59911,8977,34818,065
Other items (net)-5,939-3,105-6,801-24,219-26,416-23,218
Money10,97918,16732,37159,54657,22871,037
Demand deposits in local currency5,1569,45716,42226,03724,17426,580
Deposits in foreign exchange5,7338,61115,20433,12032,86341,456
Time deposits in local currency90997453891913,001
Sources: São Tomé and Príncipe authorities; and staff estimates.

Excluding CNPC, which was liquidated in 1997.

Deposits by nonresidents, previously treated as foreign liabilities, are now included in deposits.

Beginning in l997(Adj.), includes nonbudgetary counterpart funds.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Excluding CNPC, which was liquidated in 1997.

Deposits by nonresidents, previously treated as foreign liabilities, are now included in deposits.

Beginning in l997(Adj.), includes nonbudgetary counterpart funds.

Table 37.São Tomé and Príncipe: Structure of Interest Rates, 1992-98 1/(In percent per annum; end of period)
1992199319941995199619971998
Deposits
Sight deposits0.00.00.00.00.00.00.0
Term deposits
30-90 days30.030.040.530.0
90-180 days35.031.041.531.0
180-365 days39.033.043.532.0
Over one year36.046.534.0
Credits
Commercial and industrial credits
30-90 days37.037.030.052.038.0
90-180 days37.037.030.052.038.056.043.0
180-365 days40.040.030.052.040.057.645.0
Over one year44.044.030.052.042.059.648.0
Short-term crop credit36.036.036.030.055.541.5
Housing loans40.040.025.052.0
Medium-term investment credit
and other
Discount/reference rate45.030.032.050.035.055.029.5
Memorandum items:
Deposits of 180-365 days’ maturity
(in real terms) 2/9.2-12.3-20.59.2
Commercial and industrial credits
of 180-365 days’ maturity
(in real terms) 2/10.05.5-25.911.0-7.7-12.720.0
Sources: São Tomé and Príncipe authorities; and staff estimates.

Between November 12,1993 and May 1, 1996, commercial banks were free to set their lending rates, subject to a 22 percent maximum. The lending and deposit rates indicated for 1996 are maximum and minimum rates, respectively.

Real interest rates calculated on the basis of end-of-period rates of inflation, as estimated by staff.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Between November 12,1993 and May 1, 1996, commercial banks were free to set their lending rates, subject to a 22 percent maximum. The lending and deposit rates indicated for 1996 are maximum and minimum rates, respectively.

Real interest rates calculated on the basis of end-of-period rates of inflation, as estimated by staff.

Table 38.São Tomé and Príncipe: Balance of Payments, 1992-98(In millions of U.S. dollars, unless otherwise)
1992199319941995199619971998 Est.
Trade balance-17.2-20.4-18.5-18.3-14.9-13.9-12.1
Exports, f.o.b.5.25.25.95.14.95.34.7
Cocoa4.24.25.04.74.84.64.6
Other1.01.00.90.40.20.80.2
Imports, f.o.b.-22.5-25.6-24.3-23.4-19.8-19.2-16.8
Food-4.6-5.6-5.2-5.9-4.7-3.8-4.3
Investment goods-7.5-9.1-9.8-9.9-5.9-5.6-8.2
Petroleum products-2.2-1.8-1.8-2.1-3.0-3.8-1.9
Other-8.1-9.1-7.5-5.6-6.2-6.0-2.5
Services and income (net)-18.1-16.9-16.3-23.3-21.2-19.8-10.3
Exports of services5.05.45.94.35.77.17.3
Travel and tourism2.22.72.83.04.04.1
Other services3.13.21.52.73.13.2
Imports of nonfaclor services-18,1-16.8-16.7-22.1-22.2-22.1-12.6
Freight and insurance-5.6-6.4-6.1-5.9-5.0-5.1-4.2
Technical assistance-5.5-3.8-4.6-10.2-9.5-10.0-2.8
Other-6.9-6.6-6.0-6.1-7.7-7.0-5.5
Interest due-4.9-5.5-5.5-5.5-4.7-4.8-5.0
Private transfers (net)1.11.53.40.60.50.80.5
Current account (net) before official transfers-34.2-35.9-31.3-41.1-35.6-32.9-21.8
Official transfers (net)10.911.514.722.721.631.313.3
Public investment projects3.95.58.38.99.912.03.9
Aid in kind3.73.54.03.70.52.81.5
Stabilization system for export earnings0.00.00.02.00.80.20.1
Other3.32.42.58.110.316.37.8
Current account (net) after official transfers-23.3-24.4-16.6-18.4-14.0-1.6-8.5
Medium- and long-term capital (net)13.18.87.010.811.82.75.5
Project loans12.410.211.413.38.66.25.4
Nonproject loans6.42.20.10.23.70.00.0
Direct foreign investment1.34.01.81.92.40.44.2
Amortization-7.0-7.6-6.3-4.6-2.9-3.9-4.1
Short-term capital and errors and omissions-1.00.21.90.2-2.60.0-3.2
Overall balance-11.2-15.3-7.7-7.4-4.81.1-6.3
Financing8.113.9-4.2-22.64.8-1.16.2
Net change in reserves (increase -)2.04.7-2.1-0.40.1-7.42.7
Medium- and long-term arrears (net; decrease -)4.17.26.6-21.95.06.53.7
Short-term arrears (net; decrease -)2.02.0-8.50.00.00.00.0
Structural Adjustment Facility (net)0.00.0-0.1-0.2-0.2-0.2-0.2
Financing gap3.11.411.929.90.00.00.0
Debt relief3.11.411.929.90.00.00.0
Memorandum items:
Debt-service ratio (before debt relief) 1/2/116,5124.7101.0110.373.571.877.7
Debt service actually paid 1/3/26.923.8IS.621.824.418.039.4
Current account (in percent of ODP) 4/-75.1-75.3-63.3-90.3-79.3-74.8-53.9
Current account (in percent of GDP) 5/-51.2-51.2-33.6-40.5-30.8-3.6-21.1
Sources: São Tomé and Príncipe authorities; and staff estimates.

In percent of exports of goods and services.

Includes amortization to the IMF; excludes arrears.

Includes obligations to the IMF and cash settlement of arrears.

Before grants.

After grants.

Sources: São Tomé and Príncipe authorities; and staff estimates.

In percent of exports of goods and services.

Includes amortization to the IMF; excludes arrears.

Includes obligations to the IMF and cash settlement of arrears.

Before grants.

After grants.

Table 39.São Tomé and Príncipe: Composition of Exports, 1992-98
1992199319941995199619971998
(In millions of U.S. dollars)
Value5.235.155.865.104.945.344.75
Cocoa4.234.154.974.714.764.594.58
Copra0.330.000.000.000.000.000.00
Coffee0.050.050.050.040.000.040.00
Other0.620.950.840.360.180.710.17
(In metric tons)
Cocoa4,3633,7253,7163,4003,1702,8403,800
Copra1,35001400010
Coffee22
Other785
(U.S. dollars per kilogram)
Cocoa0.971.121.341.401.501.611.25
Copra0.240.04
Coffee2.27
Other1.04
Sources: São Tomé and Príncipe authorities; and staff estimates.
Table 40.São Tomé and Príncipe: Composition of Imports, 1992-98
1992199319941995199619971998
(In millions of U.S. dollars)
Total imports, c.i.f.28.132.030.429.324.824.024.4
Foodstuffs5.87.16.57.45.94.77.1
Of which: grants3.73.54.03.70.51.5
Petroleum products2.82.22.22.63.84.82.6
Investment goods9.411.412.212.47.47.07.5
Other10.111.39.47.07.67.57.2
(In percent of total)
Total imports, c.i.f.100.0100.0100.0100.0100.0100.0100.0
Foodstuffs20.622.121.525.123.819.627.4
Of which: grants13.111.113.113.12.05.8
Petroleum products10.06.87.28.715.420.010.0
Investment goods 1/33.535.740.242.229.829.229.0
Other36.035.431.023.930.731.227.8
Sources: São Tomé and Príncipe authorities; and staff estimates.

Owing to improved data classification between investment and “other” goods for 1996 and 1997, these two categories are not comparable to previous years.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Owing to improved data classification between investment and “other” goods for 1996 and 1997, these two categories are not comparable to previous years.

Table 41.São Tomé and Príncipe: Destination of Exports, 1992-98
1992199319941995199619971998
(In millions of U.S. dollars)
Total exports, f.o.b.5.25.25.95.14.95.34.7
China, People’s Republic of0.20.00.00.00.00.00.0
Germany0.80.00.00.01.00.30.6
Netherlands1.84.35.13.63.22.72.9
Portugal0.10.00.00.10.10.31.3
Other2.30.90.81.40.62.00.0
(In percent of total)
Total exports, f.o.b.100.0100.0100.0100.0100.0100.0100.0
China, People’s Republic of3.90.00.00.00.00.00.0
Germany15.40.00.00.020.95.712.5
Netherlands34.682.786.470.563.950.960.9
Portugal1.90.70.61.92.05.726.6
Other44.216.613.027.613.237.70.0
Sources: São Tomé and Príncipe authorities; and staff estimates.
Table 42.São Tomé and Príncipe: Origin of Imports, 1992-98(In millions of U.S. dollars)
1992199319941995199619971998
Total imports, c.i.f.28.132.030.429.324.824.024.4
Angola1.32.31.51.33.31.62.8
Belgium1.22.12.31.92.51.41.8
China, People’s Republic of0.50.50.30.00.30.00.3
France1.92.03.14.92.04.30.0
Gabon0.92.00.60.20.10.20.6
Germany0.10.40.80.60.30.40.5
Italy0.11.70.52.10.70.10.4
Japan2.03.11.64.22.50.82.2
Netherlands1.00.30.70.80.20.01.0
Portugal10.911.38.611.27.26.310.1
Spain1.90.20.10.10.50.01.2
United Kingdom0.00.10.30.21.10.01.0
Russian Federation0.00.00.00.00.00.00.0
Other6.45.910.02.04.18.92.5
Sources: São Tomé and Príncipe authorities; and staff estimates.
Table 43.São Tomé and Príncipe: Export, Import, and Terms of Trade Indices, 1992-98 1/
19921993199419951996199719981999
Est.
(1987=100)
Export unit value index63.072.586.991.097.7105.2108.958.5
Import unit value index /288.191.392.983.681.378.670.979.3
Terms of trade71.679.493.5108.8120.2133.8153.773.8
(Annual percentage change)
Terms of trade-7.211.017.816.310.411.414.8-52.0
Sources: São Tomé and Príncipe authorities; and staff estimates.

In U.S. dollar terms.

Calculated using export unit value indices of partner countries.

Sources: São Tomé and Príncipe authorities; and staff estimates.

In U.S. dollar terms.

Calculated using export unit value indices of partner countries.

Table 44.São Tomé and Príncipe: Indicators of External Public Debt, 1992-98 1/
19921993199419951996199719981999
Est. 2/Est.
(In millions of U.S. dollars; end of period)
Disbursed medium- and long-term debt outstanding178.5197.4214.1226.8234.0235.5244.9248.0
Of which: arrears37.444.651.223.629.329.632.727.7
Short-term debt outstanding37.839.831.326.831.831.847.747.5
Of which: arrears37.839.831.326.831.831.847.747.5
Of which: Italy19.318.0
Total external debt outstanding216.3237.2245.4253.6265.8267.3292.6295.6
Of which: arrears75.284.482.550.361.161.480.375.2
Debt service due on medium- and long-term debt11.913.111.810.47.98.910.08.3
Interest4.95.55.55.54.74.85.04.8
Amortization7.07.66.34.93.24,15.03.5
Debt relief 3/3.11.411.929.90.00.00.07.8
(In percent of exports of goods and services)
xtemal debt service
Before rescheduling116.1124.7101.0110.373.571.883.149.7
After rescheduling86.2111.498.599.373.571.883.145.3
Cash settlements 4/26.823.816.624.426.619.746.823.6
Present value of external debt1,595.01,459.01,422.01,616.01,446.01,441.91,634.61,430.1
(In percent of GDP)
Total external debt outstanding (end of period,
including arrears)475.8498.1495.2557.4592.1608.5721.3636.0
Sources: São Tomé and Príncipe authorities; and staff estimates.

Includes IMF.

Beginning in 1998, all arrears on debt to Germany are classified as mediumand long-term debt. Beginning in 1998, includes arrears to Italy, a loan which remains in dispute.

Current maturities and arrears rescheduled, refinanced, or forgiven.

Includes changes in arrears.

Sources: São Tomé and Príncipe authorities; and staff estimates.

Includes IMF.

Beginning in 1998, all arrears on debt to Germany are classified as mediumand long-term debt. Beginning in 1998, includes arrears to Italy, a loan which remains in dispute.

Current maturities and arrears rescheduled, refinanced, or forgiven.

Includes changes in arrears.

Table 45.São Tomé and Príncipe: Outstanding External Medium- and Long-Term Public Debt, 1992-99(In millions of U.S. dollars)
19921993199419951996199719981999
Est.Est.
Total 1/178.5197.4214.1226.8234.0