ANNUAL REPORT

MIDDLE EAST REGIONAL TECHNICAL ASSISTANCE CENTER(METAC)

September 2013

I n t e r n a t i o n a l M o n e t a r y F u n d

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Statement by the Chairperson of the METAC Steering Committee

The Fiscal Year (FY) 2013 was another difficult year for many of the Middle East Regional Technical Assistance Center (METAC) countries, which continue to face challenging security situation and political turmoil. Despite these difficulties, I am happy to report that METAC delivered strongly on its program with an overall implementation rate of about 91 percent. This performance was achieved mainly through shifting resources to relatively more stable countries and readiness to respond to emerging needs and requests from member countries.

Since its establishment in 2004, METAC has been playing a key role in helping its members build their capacity for effective macroeconomic policy. As is highlighted in this year’s report and in previous reports, we continue to witness a number of success stories in METAC’s technical assistance (TA) delivery. METAC has also continued to focus on regional workshops, and seminars on issues that are common to the region. These events provide an excellent platform to strengthen relationships among officials from the region and to share experiences and exchange knowledge on the main challenges facing the countries of the region. It is expected that, once the security situation normalizes, METAC will play a very active role in helping its member countries, currently going through major political transition, strengthen their institutional and human capacities in order to improve the management of public finances, develop strong financial systems, and produce reliable macroeconomic statistics. For METAC to be able to carry-out its mandate and broaden its activities, we need to ensure that it has the needed resources. To that end, I am grateful to the German Agency for International Cooperation (GIZ) for making, on behalf the German Federal Ministry for Economic Cooperation and Development, a $2.4 million contribution to METAC. I also look forward to the finalization in the near future of all the paper work related to the $1.3 million grant from the United States Agency for International Development (USAID) to METAC.

I strongly encourage donors and member countries to contribute enough to METAC in the period ahead so that it can fulfill its mandate and be able to meet the TA and training needs of its member countries. I would like to assure you that we, in Lebanon, will make every effort to ensure that METAC achieves its objective and, as in previous years, we will continue to support it financially. Mohammad Safadi Minister of Finance of Lebanon

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Foreword by the METAC Coordinator

In FY2013, METAC’s work continued to be hampered by the security situation and political turmoil in most of its member countries. Nevertheless, the overall implementation rate of the work program reached around 91 percent. This was made possible by changes in the work plan to take into account slow or no delivery to countries affected by conflicts and readiness to respond to emerging needs of member countries. Reflecting the needs of our members, our capacity building

efforts were guided by three objectives: (1) building strong institutions to establish accountability and good governance and support well-functioning institutions needed for macroeconomic stability and to support long term growth; (2) strengthening statistics to help make informed policy decisions, support accountability, and deliver on transparency; and (3) helping put in place equitable fiscal policies to make economies more inclusive and to create an environment of fairness and shared responsibility.

With the shift of work towards relatively more stable countries, Sudan and Lebanon received the largest share of TA, 23 and 20 percent, respectively, followed by Jordan at 14 percent. Given the amount of TA Lebanon has received since the inception of METAC, a special section in this report is dedicated to taking a closer look at the delivery of TA from METAC and to evaluate progress made in these areas (Box 3). In total, in FY2013, 68 TA missions and 8 regional workshops took place in all METAC member countries, except Libya and Syria. TA delivery was largest in the areas of banking supervision and revenue administration at around 103 percent, followed by public financial management (PFM) at 91 percent, and statistics at 86 percent. Due mainly to relatively low demand, METAC work in the area of debt management was discontinued. METAC continued to strengthen its cooperation with donors and to broaden its outreach activities (Section II). METAC organized a number of regional workshops with USAID, the United Nations Economic and Social Commission for Western Asia (ESCWA) and the IMF Middle East Center for Economics and Finance in Kuwait (CEF). Also, in cooperation with the French tax administration, METAC organized a study mission in France to allow delegates from Yemen to benefit from the French experience in the Integrated Tax Administration System. In addition, METAC participated in a number of outreach activities focusing on its role and that of the International Monetary Fund (IMF) and how they are helping the countries of the region develop their institutions and achieve macroeconomic and financial stability. Regional activities accounted for about 13 percent of METAC’s work program.

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The work plan for FY2014 (Annex III) is based on the assessment of the TA and training needs of member countries, feedback from those countries, METAC advisors’ knowledge of the countries, and IMF TA priorities for the region. It is also guided by a rolling annual work plan within a results-based management framework. This approach ensures that activities are planned and implemented on the basis of beneficiary country needs, are complementary to other forms of IMF TA, and are an integral part of the overall IMF TA program. In the period ahead, demand for METAC TA is expected to increase significantly when the political transitions that began is some Arab countries in 2011 have played out and economic management moves to the fore. Supporting capacity development in these countries is a priority for the IMF. To that end, METAC will play a key role in providing TA and training to Arab countries in transition in the areas of banking supervision, PFM, revenue administration, and statistics. The METAC mid-term evaluation process has been launched, and we expect the final report to be discussed during the next steering committee (SC) meeting in May 2014. While this evaluation will focus on the third funding cycle (May 2010–April 2015), it will be informed by analysis of the previous two phases covering November 2004–April 2010. The focus of the evaluation is to assess the extent to which METAC is achieving its objectives efficiently and effectively and whether the TA delivered is sustainable. The evaluation will also look at the challenges and known risks that METAC has faced in conducting TA and training, and what has been done to address them. An Evaluation Sub-Committee (ESC) has been established to oversee the evaluation process, which will be chaired by the Minister of Finance of Lebanon, Chairperson of METAC SC, and will include representatives from member countries, donors, and IMF departments. Financing pressure for the remaining two years FY2014–15 of this funding cycle has eased considerably. With a generous $2.4 million contribution from GIZ, on behalf the German Federal Ministry for Economic Cooperation and Development, and the soon-to-be received $1.3 million grant from USAID, METAC will have enough resources to implement its work plans for the next two years. However, once the situation in member countries stabilizes, for METAC to be able to fulfill its mandate and meet the huge TA and training needs of its countries during this critical time in the region’s history, METAC’s financing will have to be put on a more solid foundation.

Mohamad Elhage METAC Coordinator

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SELECTED ACRONYMS AND ABBREVIATIONS

AFRITACs African Regional Technical Assistance Centers AITRS Arab Institute for Training and Research in Statistics ARD Afghanistan Revenue Department ATAIC Association of the Tax Authorities in the Islamic Countries BAC Business Activity Classifcation BCCL Banking Control Commission of Lebanon BDL Banque du Liban BIS Bank for International Settlements BOP Balance of Payments BPM6 Balance of Payments and International Investment Position Manual, sixth edition BSD Banking Supervision Department CARTAC The Caribbean Regional Technical Assistance Center CAS Central Administration of Statistics, Lebanon CBE Central Bank of Egypt CBJ Central Bank of Jordan CBOS Central Bank of Sudan CBSS Central Bureau of Statistics, Sudan CBY Central Bank of Yemen CCS Commitment Control System CDIS Coordinated Direct Investment Survey CEF Middle East Center for Economics and Finance, IMF CIASA Credit Information and Scoring Agency CMU Cash Management Unit COA Chart of Accounts COFOG Classification of Functions of Government CPI Consumer Price Index CPIS Coordinated Portfolio Investment Survey CSO Central Statistical Organization DAB Da Afghanistan Bank DGFA French Directorate General of Fiscal Affairs DGFiP Direction Générale des Finances Publiques DI Direct Investment DOS Department of Statistics, Jordan EBI Egyptian Banking Institute EC European Commission EIB European Investment Bank ESC Evaluation Sub-Committee ESCWA Economic and Social Commission for Western Asia, United Nations

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EU European Union EWS Early Warning System EXD External Debt FAD Fiscal Affairs Department, IMF FDI Foreign Direct Investment FMI Fonds Monétaire Internationale FSD Financial Supervision Department FY Fiscal Year GAFI General Authority for Investment GBD General Budget Department, Jordan GDB Gross Domestic Product GFSM Government Finance Statistics Manual GIFT Governance Institutes Forum for Training GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH HQ Headquarters IFMIS Integrated Financial Management Information System IFRS International Financial Reporting Standards IFSB Islamic Financial Services Board IIP International Investment Position IMF International Monetary Fund IPSAS International Public Sector Accounting Standards ISIC International Standard Industrial Classification IT Information Technology ITAS Integrated Tax Administration System ITRS International Transactions Reporting System LTO Large Taxpayers Office MCD Middle East and Central Asia Department, IMF MCM Monetary and Capital Markets Department, IMF MENA Middle East and North Africa METAC Middle East Regional Technical Assistance Center MFD Macro-Fiscal Department MOF Ministry of Finance MOPIC Ministry of Planning and International Cooperation, Jordan MOU Memorandum of Understanding MTBF Medium-Term Budgeting Framework MTDS Medium-Term Debt Management Strategy MTEF Medium-Term Expenditure Frameworks MTFs Medium-Term Frameworks MTFF Medium-Term Fiscal Forecasting Framework MTO Medium Taxpayers Office

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NA National Accounts NBFIs Non-Bank Financial Institutions NEPAD New Partnership for Africa’s Development PCBS Palestinian Central Bureau of Statistics PCBs Private Credit Bureaus PFM Public Financial Management PFTAC Pacific Financial Technical Assistance Center PMA Palestine Monetary Authority PPI Producer Price Index PRSP Poverty Reduction Strategy Paper RBM Results-Based Management RMU Risk Management Unit RSN Regional Strategy Note RTACs Regional Technical Assistance Centers SC Steering Committee SDDS Special Data Dissemination Standard STA Statistics Department, IMF SUT Supply and Use tables TA Technical Assistance TC Taxation Chamber, Sudan TIN Tax Identification Number TOR Terms of Reference TPC Tax Procedure Code TSA Treasury Single Account UN United Nations UNDP United Nations Development Program USAID United States Agency for International Development VAT Value Added Tax WB World Bank

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CONTENTS Section I: The IMF’s RTAC Initiative and METAC ................................................................................ 10 

Section II: METAC’s Technical Assistance Activities in FY2013 .......................................................... 15 

A.  Banking Supervision ..................................................................................................................... 15 B.  Debt Management and Money Markets Development ................................................................. 22 C.  Macroeconomic Statistics ............................................................................................................. 23 D.  Public Financial Management....................................................................................................... 28 E.  Revenue Administration ............................................................................................................... 31 F.  METAC’s Other Activities ........................................................................................................... 36 

Section III: Technical Assistance inputs in FY2013 ................................................................................. 41 

Section IV: Overview of the FY 2014 Work Plan .................................................................................... 49 

A.  Banking Supervision ..................................................................................................................... 49 B.  Macroeconomic Statistics ............................................................................................................. 51 C.  Public Financial Management....................................................................................................... 52 D.  Revenue Administration ............................................................................................................... 54 

Section V: Budget and Financing ............................................................................................................. 57 

Annexes 

Annex I: The IMF Regional Technical Assistance Centers (RTACs) ...................................................... 61 

Annex II: Log Frames ............................................................................................................................... 65 

Annex III: Work Plan for FY 2014 ........................................................................................................... 71 

Annex IV: Updated Work Plan for FY 2013 ............................................................................................ 97 

Annex V: List of Seminars/Workshops FY2013 .................................................................................... 141 

Annex VI: METAC Steering Committee Members ............................................................................... 142 

METAC Staff Profiles ............................................................................................................................ 145 

Boxes

Box 1. The Banking Control Commission of Lebanon (BCCL) adopts a new risk-focused manual for supervision of non-bank financial institutions (NBFIs)………….……………...……………… 21

Box 2. METAC’s Notable Achievements ……………………………………………………………35 Box 3. Lebanon and METAC: Taking Stock and Looking Forward….…………………………………43

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METAC COUNTRIES / CONTRIBUTORS

METAC DONORS

WBG

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SECTION I:

THE IMF’S RTAC INITIATIVE AND METAC

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SECTION I: THE IMF’S RTAC INITIATIVE AND METAC

Regional Technical Assistance Centers (RTACs) General Information on RTACs Eight Regional Technical Assistance Centers (RTACs) in the Pacific, the Caribbean, in Africa, the Middle East, and Central America help countries strengthen human and institutional capacity to design and implement sound macroeconomic policies that promote growth and reduce poverty. Work is progressing on establishing a new regional center for Western Africa. RTACs combine local expertise and on-the-ground capacity building with strategic advice from IMF headquarters. All TA is integrated into the IMF’s lending and surveillance operations, and coordinated

with other IMF TA as well as that of other providers. All TA is backstopped by IMF headquarters, ensuring quality and consistency of policy advice. RTACs’ Key Areas of Work and Delivery Modes

RTACs host a team of resident advisors who assist countries in implementing their reform programs. The composition of competencies is tailored to the specific needs of the region and may include: public finance management, medium-term expenditure frameworks (MTEF), tax and customs policy and administration, revenue administration, debt management, financial sector supervision and regulation, financial sector

development, capital market development, monetary policy and operations, economic and financial statistics, national accounts and price statistics, financial programming, and training in macroeconomics. The work of the resident advisors is supported by short-term experts, including in areas that require specialized knowledge. Other delivery modalities include workshops and seminars, courses on key macroeconomic issues in collaboration with the IMF Institute, as well as short-term professional attachments.

RTACs’ Regional Approach The IMF‘s regional approach to TA and training allows for better tailoring of assistance to the particular needs of a region, closer coordination with other assistance providers, and enhanced ability to respond quickly to emerging needs.

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RTACs develop a deep knowledge of their countries and region, including cross-cutting and regional integration issues. They are close to their clients, and RTAC resident advisors are in frequent contact and travel to recipient countries to provide step-by-step assistance with TA implementation. Given their physical proximity, they can respond promptly to urgent TA requests and follow-up, and are less costly in the delivery of TA. RTACs are using and building local expertise.

RTACs’ Governance Structure and Operational Arrangements

RTACs are governed by Steering Committees (SC) composed of representatives of recipient countries, donors and the IMF. This governance structure has proven highly successful as it builds stakeholder ownership of work programs, facilitates peer review and networking, and provides a platform for donor coordination.

TA needs are identified and prioritized by the country authorities in cooperation with area and TA departments at IMF headquarters and the Center, and the work plans are endorsed by the SC.

The day-to-day management of the Center falls into the responsibility of the center coordinator who is an IMF staff member. The Center’s professional staff (resident advisors and short-term experts) are recruited, supervised, and backstopped by the IMF, ensuring quality and consistency of policy advice.

Middle East Regional Technical Assistance Center (METAC)

METAC was established in Beirut, Lebanon, in 2004 to serve ten countries/territories in the Middle East, including Afghanistan, Egypt, Iraq, Jordan, Lebanon, Libya, Sudan, Syria, West Bank and Gaza, and Yemen. METAC’s main objective is to help strengthen capacity for effective macroeconomic and financial management in the region, and to support the region’s integration into the world economy. A particular focus is to help post-conflict countries in the region achieve macroeconomic stability and develop basic institutions for policymaking. METAC is designed to enhance coordination among development partners and to promote effective implementation of economic initiatives within the Middle East region. METAC’s current program cycle is financed by contributions from the European Investment Bank (EIB), the European Union (EU), France, Germany, the IMF, Kuwait, Oman, the host country Lebanon, and beneficiary countries.

Current Activities METAC’s current activities focus on the delivery of TA and training (regional and in-country) in the areas of banking supervision, PFM, revenue administration, and macroeconomic statistics. Until October 2012 METAC provided TA and training in the area of improving debt management and developing money markets for efficient financing of governments’ needs and for better conduct of monetary policy.

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METAC

Banking Supervision

Multi Sector Statistics

Public Financial Management

Revenue Administration

Debt Management & Money Market

Banking Supervision METAC assists member countries in creating a sound banking supervision environment to maintain public trust and confidence in the banking sector. This includes enhancing banking supervision procedures in accordance with international best practices; building the capacity of bank examiners through training, seminars, and workshops; strengthening the examination process through the development of new financial statements and early warning systems (EWS); and developing credit registry systems for better monitoring of credit risk. Public Financial Management METAC assists member countries in building capacity for reforms in budget preparation and execution, to improve expenditure control and revenue monitoring. This includes improving organization and providing capacity building at ministries of finance; improving financial accounting and reporting; strengthening internal and external control mechanisms; reforming budgeting and accounting classifications; and improving treasury systems. Revenue Administration METAC provides technical advice in planning and implementing revenue administration reforms by enhancing the organization and procedures of revenue administrations; implementing effective compliance control tools for tax collection; and developing legislative frameworks for tax administration.

Multisector Statistics

The main purpose of TA in the area of statistics is to improve the overall quality of macroeconomic statistics and to promote the use of internationally-accepted concepts and statistical methodologies. This encompasses the development of data compilation and dissemination procedures, the identification of emerging data sources, the preparation and verification of data, and the documentation of data sources and compilation methods.

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Debt Management and Money Markets Development TA in the area of debt management and money markets development aims to assist METAC countries in creating sound debt management practices based on clear debt management objectives and proper coordination between debt management and monetary and fiscal policy. Moreover developing money markets will improve the effectiveness of monetary policy. However, due mainly to relatively low demand and METAC’s tight financial condition during the first three years (May 2010-April 2013) of Phase III, a decision was made to discontinue the work in this area in October 2012. METAC Governance and Management METAC is guided by a SC comprising representatives of METAC beneficiary countries, multilateral and bilateral donor agencies, and the IMF. The SC provides strategic guidance and contributes to setting METAC’s priorities. The chairman of the SC is the Minister of Finance of Lebanon. The SC meets once a year or on an “as needed” basis to discuss and endorse the work plan and priorities for the coming period. METAC is managed by a coordinator, who ensures the proper management of the Center and its staff. The coordinator is the key interlocutor between the IMF and the SC. He has an important role in producing the work plan by drawing on the inputs of METAC beneficiary countries, resident advisors and IMF HQ; and in following up with country authorities on the implementation of METAC’s TA program. The coordinator reports to the Director of the Middle East and Central Asia Department (MCD) of the IMF in Washington, D.C. Resource Allocation TA is allocated to beneficiary countries according to needs as identified by national authorities and the IMF, and the pace of delivery is influenced by the strength of a country’s ownership of TA programs, as evidenced by progress in implementing previous METAC’s TA missions’ recommendations. METAC does not provide TA to its members in an equal amount, nor does it seek to provide TA commensurate with member countries’ financial contributions. Resources are pooled and used according to countries’ needs and priorities.

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SECTION II:

METAC’S TECHNICAL ASSISTANCE ACTIVITIES IN FY2013

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Section II: METAC’s Technical Assistance Activities in FY2013

Despite the postponement of some of METAC’s missions due to the tenuous security situation in number of member countries, the implementation ratio reached 91 percent of planned missions. TA delivery was the largest in the areas of banking supervision and revenue administration at around 103 percent followed by PFM at 91 percent and Statistics at 86 percent. Due to the relatively low demand for TA in the area of debt management this area was dropped from the program in October 2012.

A. Banking Supervision

Activities in the banking supervision area witnessed a substantial growth in FY2013 in Afghanistan and Lebanon; and the resumption of TA to Yemen. TA to Syria, Libya, and Egypt continues to be impacted by the security situation in these countries. While the region has been overwhelmed with the many conflicts over the last two years, the international standards on banking supervision continue to improve with the aim to foster higher level and quality of banks’ capital in line with the Basel III framework. The latter work requires banks to hold higher minimum levels of good quality capital in addition to some capital buffers to ensure their ability to absorb losses in case of negative market developments and / or deteriorating economic situation. The new standards also set two measures that intend to address the liquidity problems banks might face in the short-term either due to bank-specific problems or market-wide issues, and in the long term due to mismatches in the asset-liability mix. While some more developed banking systems in the region have already implemented Basel II and embarked on preparing for the implementation of Basel III, others are still adopting Basel I without appropriate consideration for the implementation of Basel II. The latter set of countries would need to set a very ambitious reform plan to bridge the gaps in their current regulatory and supervisory framework as compared to international standards. It is worth mentioning that the Basel III new capital ratios may not have a high impact on the banks in the region due to the existing high quality of banks’ capital and the more conservative capital minimum requirements adopted by many authorities across the region.

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Given the differing state of banking supervision and financial systems across the region, the nature of banking supervision activities during FY2013 was also widely dispersed. Most METAC’s activities focused on developing the supervisory frameworks in some countries to be more risk-focused and further aligned with best international practices. Some other activities were dedicated to develop the current regulatory framework to better embrace the most recent applicable international standards and best practices. Only few activities were dedicated to assisting the countries in the preparations for Basel II and Basel III implementation. In FY2013, METAC increased TA for Lebanon, while maintaining a substantial level of TA to other countries, namely Afghanistan, Sudan, and West Bank and Gaza. The work of METAC in FY2013 revolved around four main areas: (1) helping authorities strengthen their supervisory and enforcement frameworks; (2) improving the regulatory framework in line with Basel standards and best practices; (3) continuing the enhancement of credit registries and bureaus; and (4) building the capacity of supervisors through seminars and workshops. Technical Assistance Delivery Strengthening the Supervisory and Enforcement Framework

Most of the TA in banking supervision focused on this aspect as it represents an important leap in transforming supervision into a more risk-based exercise and in addressing the challenges and problems faced by weak banks.

In Afghanistan, METAC assisted the Financial Supervision Department (FSD) in enhancing the current enforcement framework through bringing some amendments to the enforcement regulation and instituting some changes to the techniques and approaches used for supervising and monitoring weak banks. This work is still ongoing with changes expected to be brought to the enforcement manual and more capacity building activities needed by the FSD staff in this regard. METAC is also assisting Da Afghanistan Bank (DAB) and FSD in developing a medium-term action plan for strengthening banking supervision that outlines the main objectives and milestones to be achieved in 3-5 years.

In Lebanon, METAC assisted the Banking Control Commission of Lebanon (BCCL) in developing a risk-based framework for the supervision of non-bank financial

During the last twelve months, the Banking Control Commission of Lebanon (BCCL) had the occasion to cooperate with the METAC in two areas, a “Training Program” on “Cross Border Supervision” with the IMF in April 2012 and assignment for the preparation of an “Operations Manual” for the supervision of “Non-Banks Financial Institutions” (NBFIs) in October 2012 to be delivered to the BCCL by the end of June 2013. We appreciate METAC’s assistance and cooperation and look forward to the continuation of this relationship.

Usama Mikdashi Chairman

Banking Control Commission of Lebanon

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institutions (NBFIs). This project entailed developing the current inspection techniques and procedures and enhancing the regulatory reporting framework currently in place. The project was completed in August 2014 (Box 1).

In Jordan, METAC is participating with the IMF Monetary and Capital Markets Department (MCM) in a project to assist the Central Bank of Jordan (CBJ) in enhancing its current Basel II pillar 2 framework and in preparing for the implementation of Basel III. The project will involve more capacity building activities to evaluate and review the internal capital adequacy assessment performed by banks. On another front, an action plan was proposed for enhancing the risk-based features of the supervisory framework and for implementing Basel III in Jordan. Additional work will be performed jointly with MCM in this respect.

In Yemen, METAC has performed an initial TA needs assessment to identify the main priorities and topics for the Central Bank of Yemen (CBY). During FY2013, some assistance was provided to CBY to strengthen its enforcement framework, including through developing a new regulation on prompt corrective action.

In Sudan, METAC started assisting the Central Bank of Sudan (CBOS) in enhancing its onsite inspection process. An initial mission was performed to assess the current onsite supervisory framework and to bring about recommendations to enhance it and make it more risk-based and better aligned with international best practices. More work is expected in this respect during FY2014 particularly in developing a new risk-focused onsite inspection manual and training the CBOS inspectors on its implementation.

In West Bank and Gaza, an ongoing project is taking place on transforming the supervisory framework at the Palestine Monetary Authority (PMA) into a more risk-oriented process through developing a new risk-based manual and changing the current procedures and practices accordingly. This work is being carried by the PMA through the help of peripatetic visits by METAC’s short-term expert to guide and assist the process. Some progress has been achieved during FY2013 and the project is expected to be completed by end FY2014.

Improving the Regulatory Framework As the supervisory framework is being further developed for many countries in the region, some parallel work should be performed to enhance the prudential regulations and align them further with best practices and international standards. To that end, METAC assisted some countries in enhancing some

The Central Bank of Jordan highly appreciates METAC efforts for providing us with technical assistance to develop and enhance our banking supervision practices and promoting financial stability and we look forward to continuing the work on the current projects with METAC.

Mohamad Amaireh Head of Financial Stability Department

Central Bank of Jordan

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of their regulations in line with international benchmarks while giving adequate consideration to the country-specific factors.

In Sudan, METAC assisted the CBOS in developing new draft regulations on liquidity measurement and liquidity risk management. The two proposed regulations were drafted in accordance with international standards and best practices and took into account the nature of banking activities that are entirely based on Islamic Shari’ah principles.

In Afghanistan and Yemen, METAC assisted in developing the regulation on enforcement / prompt corrective action.

In Yemen, METAC also assisted the CBY in improving its regulation on the management and control of foreign exchange risk. The proposed circular enhances the way the foreign exchange positions are computed and establishes new limits for those positions. The circular proposed some recommendations for the sound management of foreign exchange risk.

Enhancement of Credit Registries and Bureaus

To achieve a better financial intermediation, the credit adjudication process should be based on transparent and accurate credit risk information. To that end, there is a need to develop credit registries and bureaus that capture the credit activities and exposures in the country and disclose them to interested parties in order to better inform the credit granting process. In this context, METAC has been assisting some countries in developing the infrastructure for setting up credit bureaus and expanding their existing credit registry.

فقد حصلت سلطة النقد على دعم فني مقدم من 2006منذ العام METAC وساھم ذلك في انجاز العديد من جوانب خطة التحولواستمرت سلطة بالحصول على ھذا الدعم الفني . ستراتيجي التي أعدتھا سلطة النقد للتحول إلى بنك مركزي كامل الصالحياتاال

الذي ساھم في تطوير أعمالھا وتعزيز انجازاتھا الفنيوتثمن سلطة النقد وتقدر عاليا ھذا الدعم . خالل السنة الماضية وحتى تاريخهفي تطوير سياساتھا وأدواتھا الرقابية وخدم رؤيتھا في تعزيز سالمة ومتانة واستقرار الجھاز المصرفي مما كان له األثر االيجابي

.الفلسطيني وتطوير أعماله

Since 2006, METAC has provided technical assistance to the Palestine Monetary Authority (PMA), which has significantly contributed in achieving many aspects of the strategic transformation plan to turn the PMA into a full-fledged central bank. The PMA highly appreciates METAC TA as it had a positive impact in developing its activities and enhancing its achievements. This has helped the PMA develop its policies and supervisory tools and served well its mandate to foster the soundness and stability of the Palestinian banking system and to further develop its activities.

Riyad Mustafa Abu Shehadeh

Director Supervision & Inspection Department

Palestine Monetary Authority

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In Sudan, METAC continued assisting the CBOS in expanding and upgrading its credit registry. As a result, the credit registry has made substantial progress in covering a more comprehensive set of borrowers with more detailed financial and demographic data. A new agency, the Credit Information and Scoring Agency (CIASA) was established and housed the CBOS credit registry. METAC has provided continued support to the credit registry project during FY2013 and assisted the CBOS in developing draft regulations for the CIASA in accordance with best practices.

In Jordan, METAC continued its assistance in establishing a good regulatory framework for the licensing of new private credit bureaus (PCBs). Some assistance was delivered during the year in preparing guidelines on the establishment of PCBs and the related requirements. The CBJ has now a good infrastructure for the licensing of new PCBs.

Capacity Building Activities in Banking Supervision

METAC provided a number of seminars and workshops at both regional and country levels. These events covered the latest developments in the banking supervision practice as well as some issues that are relevant for the specific countries and for the region as a whole. Workshops Regional Workshops METAC delivered two regional workshops during FY2013, the first on Basel III and the second on Islamic banking:

Basel III and Implications for the Region - METAC organized, jointly with USAID, a regional workshop for banking supervisors on the main Basel III enhancements and the implications for the region, in October 2012, in Egypt. The workshop was attended by senior supervisors from the Middle East and North Africa (MENA) region, and discussed the main capital and liquidity enhancements that were established in the Basel III framework and the impact on the banking sector and banking supervisors in the region. The workshop touched on other topics associated with the latest enhancements like macro-prudential supervision and stress testing tools and techniques. The event provided a good

Workshop on “Basel III: Challenges and Implications for

the Region” in Cairo, Egypt, October 2012.

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platform for sharing experiences and exchanging knowledge on the main challenges facing the region’s supervisors in implementing the latest Basel III amendments.

The Regulation and Supervision of Islamic banks - METAC organized, jointly with the IMF CEF, a regional workshop on the regulation and supervision of Islamic banking, in March 2013, in Kuwait. The workshop was very timely since most supervisors in the region are preparing to foster Islamic banking further in their jurisdictions and are trying to develop the necessary regulatory and supervisory infrastructure to oversee these new activities. The workshop discussed mainly the key risks inherent in Islamic banking products, the risk management and stress testing techniques for Islamic banks and their capital adequacy requirements in line with the guidance issued by the Islamic Financial Services Board (IFSB) in this respect. Each country’s delegation also presented briefly the supervisory and regulatory framework they have for Islamic banks and the associated main challenges, which enriched the discussion and made it more relevant to the supervisors.

Country Workshops METAC also organized two workshops addressed to specific countries based on their needs.

In Afghanistan, a workshop was delivered to DAB supervisors on offsite supervision and analysis. The workshop touched on the analysis and monitoring of banks’ financial statements and their financial soundness indicators, the main offsite reports that can be prepared, the special tools and techniques for analyzing the position of weak banks and the coordination requirements with the onsite supervision function.

In Sudan, a workshop was delivered to the CBOS supervisors on the liquidity requirements for banks. The workshop discussed the liquidity measurement tools applicable for Islamic banks, the good practices on liquidity risk management, liquidity stress testing techniques and monitoring liquidity for weak banks.

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BOX 1. THE BANKING CONTROL COMMISSION OF LEBANON (BCCL) ADOPTS A NEW

RISK-FOCUSED MANUAL FOR SUPERVISION OF NON-BANK FINANCIAL INSTITUTIONS

(NBFIS)

During December 2012, METAC started a new project with the BCCL to review its regulations and supervisory practices for NBFIs and develop a new risk-focused approach and manual for supervising them. This project was performed with the assistance of a METAC short-term expert, with direct backstopping by METAC banking supervision advisor. BCCL also assigned an internal team to work under the expert’s mentorship throughout the project implementation. Since the start of the project, METAC expert performed ten peripatetic work-from-home and field missions. This involved getting a thorough understanding of the local regulations governing NBFIs in Lebanon and the supervisory practices applied by BCCL for NBFIs. Based on this, the expert developed a risk-focused manual for supervising NBFIs. The success of the project was due to the expert’s practical experience as well as the continued commitment and efforts of the BCCL board and team throughout the various implementation phases. Another factor that added to the success of this project is the practical nature of the TA that was delivered. This was mostly reflected in two final activities that involved a pilot inspection of a Lebanese NBFI according to the new approach and manual and a training event to explain the manual. The project was finalized in August 2013 with a workshop that was delivered to 23 BCCL supervisors explaining the new manual and risk-focused supervision procedures, presenting the process of the pilot inspection and the findings and conclusions from this exercise, and working on an illustrative case study that was solved based on group analysis and discussions.

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B. Debt Management and Money Markets Development This area was dropped from the program in October 2012. During May – September 2012 the focus was on: Technical Assistance Delivery

In Sudan, as a follow-up visit to a TA mission conducted in November 2011 on development of an Interbank Market, METAC resident advisor visited the CBOS in June 2012. The mission worked closely with the CBOS staff in the different departments and with the Shari’ah board to: (i) assess the progress made in the implementation of the action plan agreed on in November 2011; (ii) assist them in organizing the steps needed for implementing the recommendations; (iii) agree with the CBOS on the training needs in the various areas; and (iv) clarify the role of each department involved in the implementation of the action plan and assign a focal person or a committee to follow up on the implementation.

In Jordan, a training course on debt sustainability was delivered to the Ministry of Finance (MOF) and the CBJ staff. The mission developed a simple cost and risk model that could be used for analyzing different borrowing options and providing guidelines for a debt management strategy, and that could be used for debt sustainability analysis and for the analysis of various borrowing strategies.

Regional Workshops

Islamic Sukuk - METAC organized a regional workshop in Amman, Jordan, in September 2012. The purpose of the workshop was to provide the participants from ministries of finance and central banks from METAC and non-METAC countries through a series of presentations and case studies, with the knowledge and understanding on how best to issue Sukuk.

“Sukuk, Developing Government Securities under Islamic Finance” workshop in Amman, Jordan,

September 2012.

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C. Macroeconomic Statistics Macroeconomic statistics are the basis of economic analysis and are equally important for the conduct of economic policies by the authorities and informed decision-making by the private sector. METAC provides TA and training in the areas of external sector statistics: (i) balance of payments (BOP); (ii) international investment position (IIP); and (iii) external debt statistics (EXD). It also supports the development of national accounts (NA) and price statistics consumer price index (CPI) and producer price index (PPI). METAC’s work aims to improve the collection, compilation, and dissemination of data in keeping with internationally agreed statistical methodologies. In FY2013, METAC worked in cooperation with the United Nations Economic and Social Commission for Western Asia (ESCWA), the CBJ, and with the Banque du Liban (BDL) to organize a workshop on asymmetries in bilateral remittances data. Technical Assistance Delivery In FY2013, the implementation of the work plan in the area of macroeconomic statistics continued to be influenced by the unrest in several member countries, albeit to a lesser extent than in FY2012. Security concerns led to numerous rescheduling of missions, rather than outright cancellations; however, when the security concerns abated, not all missions could be rescheduled within FY2013 and some had to be postponed into FY2014. In FY2013, as in previous years, METAC provided TA in the areas of CPI, PPI, NA, BOP, IIP statistics (including Direct Investment (DI)), and EXD. METAC also provided ad hoc training on consistency between macroeconomic statistics at the request of the BDL. Over time, the most notable results can be observed in the area of price statistics, with all countries compiling a monthly CPI, and several compiling a quarterly PPI. Ongoing progress is also noted in the compilation and dissemination of external sector statistics, in particular regarding the IIP, but it is usually slow due to insufficient human and financial resources in most countries, which is an impediment to the timely production and dissemination of statistics. In several cases, for instance, the implementation of DI surveys, an

indispensable step for the collection of DI data of good quality, has not been possible for lack of resources. In addition, a more supportive legal framework would also be needed to facilitate the collection of source data, in particular in the area of international accounts, where central banks, which are generally in charge of the compilation of statistics, should be endowed with the authority to collect data directly from economic agents outside the banking sector, contrary to the current

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situation. In some of the METAC countries that have experienced unrest, progress achieved before the events may have been stalled or reversed and new assessments will be necessary. The main highlights of METAC’s activities in Statistics were as follows: Price Statistics

In Jordan, a short-term expert assisted the Department of Statistics (DOS) in improving the compilation of the CPI, regarding, in particular, the update of the CPI weighting structure and the outlet and item samples using the results of recent surveys, a household budget survey conducted in 2008 and an establishment census conducted in 2010. Currently, the DOS compiles and releases an urban-only CPI based on 12 geographic areas covering all Jordan. The DOS has fully tested and implemented handheld devices for price collection.

In Libya, METAC had, over the years provided substantial TA to update and expand the CPI and to initiate the compilation of a PPI. The first release of both indices took place in June 2010. A new METAC mission was scheduled at the end of FY2013 to assess the circumstances and evaluate further TA needs to resume the compilation of these two indices in the aftermath of the Revolution. The mission has been postponed until FY 2014.

In Sudan, with METAC guidance, which followed assistance provided by the Arab Institute for Training and Research in Statistics (AITRS), the Central Bureau of Statistics (CBSS) completed the compilation of a quarterly PPI for the industry sector, based on a 2009 Industrial Survey that was used to develop weights and select a sample of establishments. The PPI was first published in early January 2013.

In Yemen, the events that started in early 2011 prevented the finalization of the compilation of a PPI. A short-term expert visited Sana’a in December 2012 to assist the Central Statistical Organization (CSO) in resuming work on the compilation of the PPI. The mission provided advice on developing procedures for initiating and recruiting establishments into the PPI sample, and demonstrated the methodology for selecting and defining the representative products and their associated terms of transaction that will be priced within each establishment. The mission noted that development of price indices that reflect international standards and best practices is a critical priority for the authorities.

Central Bank of Sudan

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National Accounts

In Jordan, a short-term expert visited the DOS to review progress on the compilation of Supply and Use Tables (SUT) for 2006 and recommended to move on to a more recent period (2010); an action plan was prepared, in agreement with the authorities, for the finalization of the 2010 SUT, which would serve directly the estimation of quarterly NA for which assistance is being provided by ESCWA.

In Sudan, a short-term mission with the CBS reviewed the compilation of NA. The mission noted that the accounts were prepared on the basis of outdated information and that new surveys should be conducted (e.g. household survey, establishment survey, economic survey, agriculture survey). These surveys should be implemented in the framework of the National Strategy for the Development of Statistics launched in November 2011.

In Yemen, a mission was scheduled in April 2013 to assist the CSO in improving the accuracy and timeliness of Gross Domestic Product (GDP) estimates by the production and the expenditure approach at current and constant prices, as well as in extending estimations of the non-observed economy to additional activities to increase the coverage of GDP statistics. However, due to security concerns, the mission has been postponed.

External Sector Statistics

In Afghanistan, a mission found that the situation had improved significantly since the previous mission in October 2009, for the compilation of BOP statistics. An interagency Statistics Panel was created, to: (i) streamline the compilation of statistics of trade in goods; (ii), the development of new survey questionnaires or the update of existing ones to improve the scope of data on transactions in services; and (iii) the improvement of the rate of response to the questionnaires. With further guidance, DAB was able to submit to the IMF a full set of quarterly BOP data, covering the period 2nd quarter 2008–4th quarter 2011, that were published for the first time ever, in the March 2013 edition of International Financial Statistics. A preliminary IIP statement prepared with the mission is expected to be published in the course of FY2014.

In Egypt, METAC continued its engagement for the implementation of a DI survey and reviewed the results of a pilot survey conducted by the General Authority for Investment (GAFI) on a limited sample of companies, from its financial statements database, following the recommendation of a previous mission. An expert hired by USAID assisted in the review of the pilot survey. The mission and the USAID expert concluded that a full scale DI survey could be carried-out using GAFI’s balance sheet database, and recommended the creation of a dedicated unit in GAFI. Once the unit was created, training was provided by USAID and METAC, to the staff of the new unit on DI concepts and basic accounting principles to ensure a proper

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exploitation of the financial statements and a successful dialogue with companies’ accountants, as needed.

In Jordan, a mission provided guidance to the Public Debt Department of the MOF on the classification of domestic and external debt liabilities, based on the residence status of the creditors, regardless of the currency of denomination of the liabilities, and on the classification of the so-called own-budget agencies.

In Lebanon, several short visits to the BDL were devoted, in particular, to the preparation and the review of a preliminary IIP statement for Lebanon, calculated partially from real stock data (e.g. balance sheets of the monetary sector, surveys of portfolio investment assets, data published by the Bank for International Settlements (BIS), EXD of the government) and partially from the accumulation of BOP flows, in particular to estimate DI stocks. On this occasion, the mission also provided guidance on international standards for the reporting of EXD statistics, the same that are applied in the compilation of BOP and IIP statistics.

In Sudan, in addition to a multisector statistics mission from the IMF Statistics Department (STA), METAC fielded two missions to follow up on the implementation of a DI survey, the estimation of informal trade in goods, and the improvement of the coverage of current and capital transfers. Regarding the DI survey, cooperation between the Ministry of Investment, the CBOS and the CBSS at national and at regional levels should make it possible to conduct the survey without seeking external financing. Similarly, estimations of informal trade can be made jointly by the regional offices of the CBSS and the regional branches of the CBOS.

In West Bank and Gaza, METAC apprised the authorities of the forthcoming changes in the requirements for Special Data Dissemination Standard (SDDS) subscribers and provided guidance for the compilation of the IIP on a quarterly basis. The mission also discussed the requisites for participation in the IMF’s Coordinated Portfolio Investment Survey (CPIS). The Palestinian Central Bureau of Statistics (PCBS) presented an innovative method to implement the recommendation of a previous mission regarding the collection of information on investment in real estate by non-residents, to be included in DI: the estimations are based on the housing surveys, the 2007 population census, and estimated prices per square meters for rural and urban areas, by region.

Palestenian Monetary Authority, Ramallah

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Workshops Regional Workshops

Asymmetries in Bilateral Remittances Data - METAC, jointly with ESCWA organized a workshop on asymmetries in bilateral remittances data, hosted by the CBJ, in Amman, in April 2013, to follow up on the previous one at the BDL, in Beirut, in November 2011. The objective of this new workshop, enlarged to include Gulf Countries, was to exchange bilateral data between senders and receivers of remittances to identify causes of asymmetries between partner countries and to discuss possible concrete solutions to solve the issue. Ultimately, the goal is to establish a networking relationship among compiling institutions of the region, to possibly arrive at setting up a database of bilaterally reconciled remittances data. Both the CBJ and the BDL made essential contributions to the workshop.

Country Workshops

In Lebanon, a workshop on Consistency of Macroeconomic Statistics was organized by METAC at BDL at the request of the latter, as a previous mission had identified the need to raise the awareness of staff regarding the interconnectedness of macroeconomic datasets as a means to improve the skills of both compilers and users of statistics. In this respect, METAC underlined the STA’s efforts to actively promote cross-sector data consistency, including the establishment of a Cross-Sector Consistency Group to look into consistency of data that are reported to STA for different economic sectors, such as the real sector, external sector, government sector, and financial institutions sector. The workshop presented the macroeconomic framework of an economy to highlight the linkages between the macroeconomic sectors defined in statistical standards. The following sessions presented the macroeconomic framework for Lebanon over recent years, based on data provided by the authorities or on IMF’s staff estimates. In the last sessions, similar to projections made during financial programming courses at the IMF, the participants estimated a macroeconomic framework for Lebanon for the previous year and discussed the results of this exercise in a final session. This hands-on and interactive approach was very much appreciated. The workshop evidenced in concrete terms the need for consistency across the various macroeconomic statistics; and its corollary, the necessary cooperation between the agencies in charge of producing the statistics.

Joint Regional Workshop on “The Compilation of

Workers’ Remittances” between METAC, ESCWA and the Central Bank of Jordan, April 2013.

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D. Public Financial Management As in previous years, METAC continued to assist member countries to improve the management of public resources. TA missions were delivered to all member countries, except Libya and Syria. PFM activities focused on the following areas: (i) cash management, financial planning and banking arrangements in Afghanistan and Egypt; (ii) budget planning and expenditure analysis in Jordan; (iii) capacity building for the macro-fiscal unit in Lebanon; and (iv) assessment of recent developments in PFM in West Bank and Gaza. METAC participated in four IMF Fiscal Affairs Department (FAD) missions (Iraq, Jordan and Sudan), covering a broad spectrum of PFM. As part of its regional activities, METAC organized two workshops on International Public Sector Accounting Standards (IPSAS) Cash Accounting and on Medium-Term Frameworks for Fiscal Policy and Budgeting.

Technical Assistance Delivery

In Afghanistan, METAC reviewed the recent forecasting performed by the Cash Management Unit (CMU) in the Treasury Department; provided a template for cash flow forecast submissions and for presenting three-month forecast; and delivered a half-day workshop on cash management.

In Egypt, METAC conducted a comprehensive review of the budget execution function, highlighted key issues constituting pre-requisites required to have a functioning CMU and recommended a number of actions to address those issues.

In Jordan, METAC provided capacity building training to the General Budget Department (GBD) on methods and approaches for undertaking effective analysis of new and existing public expenditure policies and programs.

In Lebanon, METAC conducted a review of the structure, organization and output of the newly established Macro-Fiscal Department output and delivered a four-day training session comprising a consistent macro-fiscal framework, forecasting techniques for budget revenue, expenditure and deficit financing, and the use of medium-term budget projections in the design of alternative fiscal policy strategies, together with their associated impacts on debt sustainability.

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In Sudan, METAC provided TA and hands-on training on implementing the main necessary measures to adopt the Classification of Functions of Government (COFOG) functional classification; and improve the quality of the fiscal reporting.

In West Bank and Gaza, METAC prepared a revised PFM strategy framework in which recent developments and emerging needs were identified.

In Yemen, METAC conducted a brief review of recent development in PFM and identified with the authorities their TA needs.

METAC resident and short-term experts participated in FAD-led missions to Jordan, Iraq, and Sudanthat focused on:

Jordan: Reviewing progress in implementation of reforms in the budget execution area, identifying issues, and guiding on further work to be done.

Iraq:

- In cooperation with the World Bank (WB), developing a roadmap for the implementation of the Integrated Financial Management Information System (IFMIS), reviewing the implementation status of this system, and looking also at debt reporting and payments in kind.

- Organizing a workshop with the authorities to review the newly drafted PFM law and recommend improvements related to: the roles and responsibilities of key institutions and actors in PFM; macro-fiscal management; budget formulation; budget execution; accounting, fiscal reporting and audit.

Sudan: Identifying the main issues and providing recommendations in the following areas of budget management reform: Medium-term fiscal forecasting and analysis, Budget planning and preparation, Expenditure control, and Fiscal accounting and reporting.

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Workshops Regional Workshops METAC organized two regional workshops:

IPSAS Cash Accounting - In partnership with USAID, METAC has organized a workshop in Beirut, on the IPSAS Cash Accounting, in July 2012. The workshop assisted in creating sensitization and awareness of IPSAS but more importantly it helped countries to appreciate the need for adopting international standards, the requirements of IPSAS and pronouncements, the evaluation of the countries’ gaps in terms of meeting IPSAS requirements.

Medium-Term Frameworks for Fiscal Policy and Budgeting - Another METAC workshop on Medium-Term Frameworks (MTFs) for Fiscal Policy and Budgeting, was held in Beirut, in March 2013. During this workshop, participants were exposed to the key aspects of the strategic, top-down fiscal policy approach; and to how a multi-year plan permits fiscal strategies including expenditure plans for the entire interval to be set out and for plans for the upcoming year to be cast within this multiyear context.

These two workshops received excellent feedback from the participants, and provided an opportunity for peer-to-peer learning, sharing of experience and lessons learnt.

Workshop on “Medium-Term Frameworks (MTFs)”, Beirut, Lebanon, March 2013.

Workshop on “International Public Sector Accounting

Standards (IPSAS) Cash Accounting” in Beirut, Lebanon, July 2012.

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E. Revenue Administration In the area of revenue administration, METAC strongly supported the revenue reform strategies and modernization programs of member countries. A number of factors challenged the delivery of planned activities, primarily the unstable political regional environment and the difficult security conditions in several member countries. Nonetheless, flexibility in re-allocating resources and responding to supplemental needs led to an excess of delivered activities in respect of the initial work plan. An overall implementation ratio of around 103% was attained, reflecting 59 weeks of direct TA delivered by METAC’s revenue administration resident advisor and a number of regional and international short-term experts. Technical Assistance Delivery During FY2013, METAC was the main TA provider within the Fund to the revenue administrations in the region. TA focused on member revenue administrations’ priorities in both tax and customs areas,

and was synchronized with FAD’s priorities. Delivered activities were aligned with the RBM framework that METAC applied starting this FY, and reflected the needs identified in the corresponding METAC’s revenue administration log frame. In addition to the direct assistance provided by METAC’s resident advisor, regional and international short-term experts delivered focused TA and trainings to tax and customs administrations.

METAC’s assistance covered the following components: Embedding Risk-Based Compliance Management METAC activities in this field aim at raising tax compliance rates through the design and implementation of appropriate compliance and enforcement management. In the framework of self-assessment systems that are being implemented in METAC countries, there are growing needs to strengthen the compliance and enforcement management relying on risk analysis and modern audit techniques. In this regard, METAC assisted Jordan and Sudan to enhance their compliance and enforcement programs.

In Jordan, METAC assisted the authorities with strengthening the main components of the enforcement cycle (audit planning, audit cases’ selection and allocation, monitoring and evaluation of the audit results) with a particular focus on large and medium-sized taxpayers.

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In Sudan, a large group of tax auditors was trained on risk-based audit planning and risk analysis and modeling, and modern practices to design effective enforcement programs.

Strengthening Tax Arrears Management METAC assisted Jordan in developing strategies and programs to reduce the stock of debts. Focused TA was provided to identify the major contributors to the escalating arrears and to develop a comprehensive risk management approach to debt collection, including: analyzing and profiling the stock of arrears; prioritizing collections of debts by age and size; implementing stronger and more integrated procedures tailored to different debt categories and segments according to the risks they pose; imposing tight management scrutiny and control over the largest debtors; and establishing clear annual targets, measured quarterly, on operational units to reduce the debt. Building Integrated and Function-Based Headquarters (HQ) and Operational Offices Strengthening the organizational arrangements of tax administrations has been a key area of METAC’s support given its strategic importance in tax modernization programs. While a number of METAC countries have made good progress towards establishing function-based HQ and operational offices, substantial assistance is still needed to support modernization of structural and organizational arrangements of tax administrations.

ادلويل عىل الرمغ من التحدايت اليت متر هبا املنطقة ولبنان، مل يرتدد املركز االقلميي للمساعدة الفنية للرشق االوسط التابع لصندوق النقد(METAC) ت اسـتقدام اخلرباء، دورا(وقد اسـتفادت االدارة الرضيبية من مجيع اوجه ادلمع . يف تقدمي ادلمع الفين لوزارة املال اللبنانية

املامرسات العاملية، وسامه يف جناح االصالحات اذلي قدمه املركز يف تعزيز قدراهتا واعامتد افضل...) تدريبية، ورش معل، اراء استشاريةوهذه النتاجئ الضخمة مل تكن سـتظهر لوال هجود . اليت قامت هبا، ويف حتسني اداء االدارة الرضيبية اللبنانية عىل اكفة املسـتوايت

(METAC) وفرت هجدا ملساعدة ادارتنا الرضيبية واكفة االدارات الرضيبية عىل اليت ما وكفاءة وديناميكية واخالص السـيدة منال االسري .االرتقاء بقدراهتا وخدماهتا

يف تطوير االدارات وتتطلع وزارة املالية اىل مزيد من التعاون مع املركز وتامل ان يسـمتر بنشاطاته ودمعه الفين اذلي يؤدي دورا اساسـيا .الرضيبية وحتديهثا

Despite the challenges experienced by the region and Lebanon, METAC did not hesitate in providing technical support to the Lebanese Ministry of Finance. Tax administration has benefited from all aspects of support provided by METAC (bringing in experts, training courses, workshops, advice and recomendations ...) in strengthening its capacity and adoption of the best international practices. Technical Assistance provided has contributed to the success of the reforms and to the improvement of Lebanon’s tax administration performance. These results were not to be achieved without the efforts put by METAC and the efficiency and sincerity of Ms. Manal ElAssir. The Ministry of Finance looks forward to further cooperation with METAC, which plays a key role in the development and modernization of tax administrations.

Louay Hajj Chehade Head of the tax administration in Lebanon

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In Lebanon, METAC assisted the tax authorities with their efforts to integrate Value Added Tax (VAT) and income tax departments and consequently establish a unified tax administration. Detailed plans were developed proposing the organizational structure and staffing levels, and recommending adjustments to the draft law provisions.

In Jordan and Sudan, METAC provided assistance to strengthen the organizational structure and role of the central tax compliance division and the corresponding compliance units in tax offices.

Streamlining and Automating Tax Operations METAC continued to support member administrations in modernizing and streamlining tax operations, particularly with regard to taxpayers’ register and integrated automated information systems.

In cooperation with the French tax administration, METAC organized a study mission in France to allow delegates from Yemen to look at the key modules of the ITAS in France, and subsequently explore possibilities of cooperation to strengthen the information technology (IT) development efforts in Yemen TA.

METAC assisted the tax authorities in Lebanon with strengthening Business Activity Classification (BAC) in the central taxpayers’ database. TA was provided to implement BAC based on the latest release of the International Standard for Industrial Classification (ISIC - version 4).

Enhancing Tax Systems METAC supported the efforts of Afghanistan and Sudan in this area.

METAC organized a study mission in Lebanon for a delegation from the Afghanistan Revenue Department (ARD). The purpose of the study mission was to enable ARD representatives to benefit from Lebanon tax department’s experience and expertise in VAT administration pre, during and post implementation. It was designed to support ARD’s capacity building required for the preparation and introduction of VAT.

Focused TA was provided to the Taxation Chamber (TC) of Sudan to develop a Tax Procedures Code (TPC). As a result, a preliminary draft was developed and reviewed. Further METAC’s support will be needed to finalize the TPC and submit it to the MOF.

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Supporting Customs TA was delivered to the customs administration in Lebanon to strengthen the work of the central Risk Management Unit (RMU), design appropriate risk parameters and schemes that would improve targeting and selectivity, establish an effective monitoring and evaluation framework, and streamline the risk management procedures. Workshops Regional Workshops METAC organized two regional workshops in FY2013.

Workshop on “Effective Administration of VAT”, in cooperation with USAID, during November 27-29, 2012 in Rabat, Morocco. The workshop offered an excellent opportunity for sharing experiences, best practices and challenges in the design and management of an effective VAT system. It explored key issues and global trends in VAT administration and their impact for tax organizations, as well as effective approaches to strengthen compliance.

Workshop on “Risk Management of Tax Compliance” during April 28-30, 2013 in Amman, Jordan. The workshop shared experiences, best practices and challenges in the design and implementation of a modern risk-based compliance strategy. It discussed the principles and approaches under which the tax authorities can deliver tax compliance risk management to remain effective in identifying and analyzing risks, and building appropriate treatment strategies to raise the compliance rates and influence the behavior of the tax population.

In addition, METAC participated in the 9th annual conference of the Association of the Tax Authorities in the Islamic Countries (ATAIC) delivered in Amman, Jordan. The event discussed international and regional best practices to combat tax evasion and improve tax collection. It gathered senior tax officials from twenty countries – including most of METAC’s tax commissioners – and representatives of international organizations.

Workshop on “Effective Administration of the Value

Added Tax (VAT)” in Rabat, Morocco, November 2012

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BOX 2. METAC’S NOTABLE ACHIEVEMENTS Banking Supervision

Lebanon: Major progress achieved in establishing a risk-based approach, including a manual, for the supervision of Non-Bank Financial Institutions (NBFIs).

Afghanistan: The performance of a quick self-assessment with Basel Core Principles for effective banking supervision in order to develop a medium-term action plan for strengthening banking supervision.

Yemen: Major progress achieved in establishing a prompt corrective framework for

dealing with weak and problematic banks. Macroeconomic Statistics

Afghanistan: The IMF has published BOP data for Afghanistan for the first time ever, in March 2013.

Sudan: First publication of a full IIP statement. The CBSS released its first PPI in January 2013.

West Bank and Gaza: First publication of the gross EXD table prescribed by the SDDS.

Public Financial Management

Afghanistan: Progress achieved with the CMU and establishment of a template for cash flow forecast submissions and a template for presenting three month forecast.

Lebanon: Preparation of an action plan for PFM reform over the period 2012-2015, focusing on selected actions where the prospects of reform in the next few years seem relatively favorable.

Revenue Administration

Lebanon: Positive progress achieved in the integration process of Income Tax and VAT departments: draft law submitted to the MOF; one single head appointed for both administrations; integration of systems and procedures in progress.

Lebanon: Central Risk Management Unit (RMU) established at customs to strengthen risk management schemes and procedures, improve targeting and selectivity, and set up an effective monitoring and evaluation framework.

Sudan: Development of a draft TPC to streamline and harmonize tax procedures across all tax types.

Sudan: Central taxpayer register moved from customs to the TC. Similarly, commendable

progress achieved in cleansing and firming-up the taxpayer database.

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F. METAC’s Other Activities Cooperation with USAID Cooperation with USAID in FY2013 included three workshops, in Lebanon, Jordan and Morocco (see Annex V). Also, numerous discussions were held to explore the possibility of USAID becoming a donor to METAC. Regarding the latter, all legal issues have been addressed and an agreement is expected to be signed soon. Cooperation with ESCWA METAC organized a workshop jointly with ESCWA for BOP compilers of METAC and Gulf countries, specifically dedicated to the compilation of workers’ remittances in cooperation with the CBJ and BDL. Cooperation with the French Tax Administration In cooperation with the French tax administration, METAC organized a study mission in France to allow delegates from Yemen to look at the key modules of the ITAS in France, and subsequently explore possibilities of cooperation to strengthen the IT development efforts in Yemen TA. This cooperation is also highlighted by:

1) The protocol recently signed with the IMF (initiated by the willingness of METAC and Direction Générale des Finances Publiques (DGFIP) to establish a collaboration framework which resulted in a draft cooperation agreement);

2) The constructive participation of DGFIP delegates in the regional workshops on revenue administration and the key input they have been providing.

Collaboration with Member countries Jordan- The CBJ hosted a joint METAC-ESCWA regional workshop in April, 2013 on Statistics which was a follow-up to another workshop hosted by the BDL in Lebanon in November 2011. Collaboration with the IMF Center for Economics and Finance (CEF) METAC, jointly with the CEF organized a regional workshop on “Regulation and Supervision of Islamic banking”. The workshop included participants from 22

Workshop on “Regulation and Supervision of Islamic Banks”, Kuwait, March 2013.

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countries and was held in Kuwait. More joint workshops with the CEF are planned for FY2014. Outreach Activities Meetings of the Directors of Training Institutes and Annual Conference of the Governance Institutes Forum for Training (GIFT) MENA Network For its 2012 edition, the GIFT-MENA network of civil service school and institutes organized its annual conference entitled “Training and Cooperation for change in the MENA Region”. Mr. Saade Chami, METAC Coordinator participated in this conference, held in Tunis, Tunisia from October 8 to 12, 2012 in collaboration with the National School of Finance of Tunis. The GIFT-MENA Annual Conference offered a space for dialogue, experience-sharing and exchange of knowledge. The conference’s main objective was to initiate the debate around the issues of training and capacity development to foster change and instigate a soft transition towards a more “democratic” civil service in the MENA region. It addressed the needs of the region in a particular format, culminating in regional recommendations. The conference was designed as a mix of presentations by world-leading experts and practitioners and the analysis of regional country cases. Cooperation with the IMF Communications Department (COM) Mr. Mohamad Elhage, the newly appointed Center Coordinator, participated in a media and IMF training workshop that was held for Arab journalists in Beirut during April 2-4, 2013. Mr. Elhage delivered one lecture on the role of the IMF in which he gave a historical perspective why the IMF was established, how its role has changed over time, its governance structure, and how it is helping the countries in the MENA region achieve macroeconomic and financial stability and develop basic institutions for policymaking. In the second lecture, Mr. Elhage discussed the economic outlook for the World and the MENA region. Participants said that lectures delivered during the workshop corrected their misconceptions about the IMF, provided a wealth of information, and were a valuable introduction to the work of the Fund, as well as an excellent way to reach out to the people in the region. METAC Mid-Term Evaluation The terms and conditions governing the establishment and operation of the METAC multi-donor trust fund call for independent evaluation of the Center’s activities. The evaluation will cover the third funding cycle (May 2010-April 2015). Its objective is to assess the extent to which METAC is achieving its objectives efficiently and effectively and whether the TA delivered is sustainable. The evaluation will also assess Media and IMF training workshop for Arab

Journalists, Beirut, Lebanon, April 2013.

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whether the results of the previous two three-year cycles (November 2004-April 2010) were sustained in the current phase. The evaluation will assess the extent to which METAC is achieving the advantages typically associated with delivering TA through Regional Technical Assistance Centers (RTACs): sound identification of country TA needs, rapid and flexible TA delivery, closer interaction with beneficiary country authorities, stronger country ownership, and effective exchange of information with other TA providers and donors in the region. The evaluation will also look at the challenges and known risks that METAC has faced in conducting TA and training, and what has been done to address the challenges and mitigate the risks. An Evaluation Sub-Committee (ESC) has been established to guide the evaluation. The creation of ESCs is part of IMF evaluation practice and allows the SC to actively participate in the evaluation process. The role of the ESC is to provide strategic guidance for the evaluation and to ensure that it takes into account issues relevant to stakeholders. The ESC will (i) review, comment, and agree on the draft terms of reference (TOR); (ii) review and advise on the Inception Note prepared by evaluators; and (iii) review and comment on the draft evaluation report. The ESC has 12 members: 4 member countries, 3 donors, and 5 members representing different IMF departments. The ESC will be chaired by the Minister of Finance of Lebanon, Chairperson of the SC and the final report will be discussed during the next SC meeting in May 2014. METAC Annual Steering Committee Meeting METAC held its annual SC meeting on May 14, 2013 in Beirut. The meeting was opened by His Excellency Mohamad Safadi, Minister of Finance of Lebanon and Chairperson of the SC, Ms. Kristina Kostial, Assistant Director of the IMF MCD, and Mr. Mohamad Elhage, METAC Coordinator. In his speech, Minister Safadi highlighted the role of METAC since its launch in 2004, in providing TA and training to the countries of the region. He emphasized Lebanon’s positive experience with METAC, and stressed the importance of supporting METAC financially to enable it to meet the TA and training needs of its member countries, in particular those that are currently going through political transition.

Ms. Kristina Kostial stated that METAC has been doing an outstanding job in building capacity in the region and that the authorities always express their satisfaction with the TA and training METAC is providing. She highlighted the importance of ensuring sufficient funding for the next cycle, 2015-2020.

Annual Steering Committee (SC) Meeting, Beirut, Lebanon, May 2013.

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Mr. Saad Andari, Second Vice-Governor of BDL, and Mr. Alain Bifani, Director General, MOF of Lebanon, shared Lebanon’s experience with METAC since its inception highlighting METAC’s notable achievements in all four areas: (i) Banking Supervision;(ii) Public Financial Management; (iii) Revenue Administration; and ( iv) Statistics. They noted that the cooperation with METAC will continue and be further enhanced in the period ahead. Mr. Ulrich Jacoby discussed METAC’s Mid-Term Evaluation, noting that it is a regular feature for all RTACs and Topical Trust Funds. He noted that the purpose of the evaluation is to assess to what extent METAC is achieving the objective set in the 2009 Program Document and whether the TA and training delivered is sustainable. He pointed out that an ESC will be established to oversee and ensure that the process is transparent and inclusive. IMF Representatives and Donors expressed their appreciation of the work that METAC has been doing in the region, noting the flexibility of METAC in delivering TA. For the first time, GIZ on behalf of the German Federal Ministry for Economic Cooperation and Development, was represented in the SC as the newest donor of METAC.

40

SECTION III:

TECHNICAL ASSISTANCE INPUTS IN FY2013

41

SECTION III: TECHNICAL ASSISTANCE INPUTS IN FY2013

During FY2013, 68 TA missions and 8 regional workshops took place in all METAC member countries except Libya and Syria. As shown in the figure below, Sudan received the largest part of TA, followed by Lebanon and Jordan. Total delivery weeks for FY2013 reached 237 person weeks.

Figure 1: Distribution of METAC TA by Area and Country FY2012 and FY2013 (in person days)

0

10

20

30

40

50

60

Wee

ks

FY12

FY13

42

Figure 2: Allocation of METAC TA by Country

Table 1: METAC TA delivery by Area and Beneficiary Country FY2013 (in persons in week)

M ac ro ec onomic

Sta tistics

B anking Supe rvision

P ublic F ina ncial

M ana gem ent

R eve nue Ad ministr ation

De bt M anage m ent

Total

R egional Activitie s 1.5 8 8 10 3 30.5 Afghanista n 6 9.5 6 3 0 24.5 Egypt 6 0 5 2 0 13 Ir aq 0 0 3 0 0 3 Jord an 8 4 4.5 12 5 33.5

Lebanon 7.5 18.5 4.5 16.5 0 47 S udan 13.5 14.5 12 13 2 55 W est B ank & Ga za 3 7.5 3 0 2 15.5 Ye me n 4 6 2.5 2.5 0 15

Tota l 49.5 68 48.5 59 12 237

Ac tivity

Distribution as % of to ta l

20.9 28.7 20.45 24.9 5.05

100

43

BOX 3. LEBANON AND METAC: TAKING STOCK AND LOOKING FORWARD

INTRODUCTION

Since the inception of METAC, Lebanon has been one of the top users of TA. Over the years and due to the advanced supervisory framework in Lebanon, TA in the area of Banking Supervision was limited to capacity building activities. In the area of Statistics, TA provided by METAC was always welcomed by the authorities. However, more work is needed especially in the capacity building area. In PFM, the focus was on budget classification, cash management and micro fiscal forecasting; progress is not steady due to a complex economic and political situation. In the area of Revenue Administration, METAC supported the authorities in their efforts to design the reform strategies for modernization of revenue administration among other activities. Going forward, TA will focus on building up on progress made and new areas of emerging needs.

TECHNICAL ASSISTANCE KEY RESULTS AND FUTURE AGENDA

Banking Supervision The Lebanese financial sector and the supervisory framework in Lebanon is one of the most advanced among the METAC countries. The BDL plays a key oversight role in ensuring financial stability; at the same time the BCCL is the supervisory body for all banks and financial institutions operating in Lebanon. Due to the developed banking supervision framework, the TA needs for Lebanon in banking supervision were historically limited to some capacity building activities. These were reflected in workshops and seminars on various banking supervision topics, including: corporate governance, credit risk management, assessing banks’ strategies and business plans, stress testing, and consolidated supervision. In addition to the capacity building programs, METAC started assisting BDL and BCCL in developing a statistical-based Early Warning System (EWS) model. The BDL and BCCL have completed aggregating the data required and developing the EWS statistical model. METAC also started a new project with the BCCL to adopt a risk-based approach for the supervision of NBFIs including developing a manual for this purpose. This project was completed in August FY2014. It allows a more risk-oriented approach to the supervision of NBFIs and better coordination between offsite and onsite supervision functions.

44

METAC plans to continue to provide its assistance to BDL and BCCL in the areas of financial stability and banking supervision. One key TA area is to enhance the financial stability framework at both BDL and BCCL through better use of the early warning data, in order to be well integrated within the whole supervisory process and to better inform the policy making process at both BDL and BCCL. Another key TA area would be to assist the BCCL in enhancing its cross-border supervision of banks, in particular for domestic systemically important banks that have active presence in the region. METAC will also continue to deliver seminars and workshops to build the capacity of BCCL and BDL staff focusing on the latest international standards and Lebanon’s TA needs. This may include training on macro-prudential analysis and supervision, stress testing, Basel III enhancements, and cross-border supervision. Macroeconomic Statistics Since its inception, METAC has provided TA in macroeconomic statistics to Lebanon in the areas of price statistics, external sector statistics, and NA. TA was also provided towards the design of a Statistics Master Plan, and the improvement in the consistency of the macroeconomic framework used by the Research Department of the BDL. The beneficiary institutions were the Central Administration of Statistics (CAS) for price statistics and NA, and the BDL for external statistics. The authorities have always welcomed TA provided by METAC; however, with more stable resources there is room to improve implementation, in particular at the CAS. The most notable achievement was the update and improvement of the CPI and the initial steps towards the compilation of a PPI. However, because of slow administrative procedures, the CPI is occasionally not compiled, and progress on the PPI has come to a halt due to staff turnover at CAS. An official decision was made to transfer the compilation of NA from the Cabinet of the Prime Minister to CAS, which marks a positive development. However, some time will be necessary to build capacity among the staff newly recruited by CAS for the compilation of the NA. In-house expertise exists but is too limited. Following this transfer, METAC will be in a position to resume its assistance in the area of NA. The TA provided in BOP has resulted in the improvement in the quality of data, especially in the financial account. An improvement in the ITRS is forthcoming; it will help capture global transactions below the reporting threshold. The BDL should be ready to publish the first IIP for Lebanon by the end of FY2013 or in early FY2014. Improvements in the classification of public debt between domestic and nonresident creditors should also be made public within the same time frame. Going forward, METAC TA seems necessary on an ongoing basis to build up on progress made and consolidate any advances, in particular in the area of prices and NA, subject to the existence of

45

absorption capacity. In connection with NA and BOP, the coverage of travel services could be significantly improved by a better access to the General Security data on entries/exits at border stations. As in other countries of the region, a DI survey has become indispensable to improve this important item of the financial account. METAC can provide assistance in this respect. Public Financial Management During the past few years, Lebanon received significant TA from the IMF FAD and METAC, mainly on budget classification, cash management, treasury single account (TSA), and macro-fiscal forecasting. Progress in implementation of reforms recommended by previous FAD missions is mixed mainly due to a difficult and complex economic and political situation. The reform objectives were broadly designed to:

Make the budget an effective mechanism for aligning immediate expenditure and revenue decisions with medium-term fiscal priorities.

Streamline control systems, and improve the quality of fiscal reporting. Since 2006, FAD has concentrated its TA in Lebanon through METAC which also coordinated with other TA providers, notably the WB and the European Commission (EC). METAC provided support to the MOF with the implementation of the Paris Declaration agenda, in both the overall implementation of the plan, and more specifically with a focus on the following areas:

Cash management: METAC contributed to the implementation of a CMU at MOF and the development of a cash planning tool which encompasses most public funds.

TSA: TSA reform was fully worked out by a dedicated mission in November 2009 with a comprehensive action plan.

Budget Classification: comprehensive review of the budget classification and Classification and Charts of Account (COA) in order to operate its modernization in line with the Government Finance Statistiscal Manual 2001 (GFSM 2001) and COFOG standards (April 2010 mission).

PFM Reform strategy: METAC outlined a strategy and a draft action plan of PFM reforms (March 2012 mission).

Macro-Fiscal Department (MFD): METAC reviewed the structure organization, and output of the newly established MFD, proposed enhancements, and shared lessons from the experience of the establishment of the relatively successful Egyptian MFD (September 2012 mission).

Going forward, METAC plans to support the PFM reform plan and will provide TA and training to (i) the macro-fiscal department; and (ii) review the budget system, its fiscal institutions, and decision-making processes.

46

Revenue Administration Revenue mobilization through improved tax and customs systems remains a key priority, with the high level of government debt. Lebanon has embarked on a wide reform program to modernize the tax system and its administration and to improve tax collections. METAC has supported the efforts of the authorities in designing the reform strategies and developing a phased implementation plan to modernize the revenue administration. During the last three years, Lebanon has been one of the largest users of METAC resources in the area of revenue administration. Following the successful introduction of VAT in 2002, a number of structural measures were taken to modernize the tax administration towards a unified function-based structure, fully automated business processes, risk-based compliance programs, and improved legislations.

TA focused on the following main areas: (1) re-organizing the tax administration – including the network of field offices – along functional lines based around a strong HQ; (2) strengthening operations in the Large Taxpayers Office (LTO) that was established in 2005; (3) integrating the administration of the VAT and income tax using modern systems and processes under the framework of a new tax procedure code; (4) developing risk-based compliance strategies; and (5) strengthening collection enforcement. The authorities responded well to the TA provided by METAC despite the political uncertainty and unfolding crisis. Several key results were achieved, including:

Establishment of a LTO.

Development of risk-based auditing.

Re-structuring of tax offices on a function basis.

Establishment of new HQ units, serving as a basis for future HQ functions.

Ratification of a TPC. The Lebanese authorities have been successful in introducing significant reforms to the tax administration and in setting up a sound platform for building a modern administration on a full self-assessment basis. Nevertheless, several obstacles are still hindering the overall tax performance and preventing the tax administration from securing significant improvements in tax compliance, including: fragmented organizational arrangements (with VAT being administered separately), on-going amnesties on penalties and interest, unsatisfactory performance of the LTO, and collection enforcement embargoes. During the past two years, some progress was made in implementing FAD and METAC recommendations with regard to establishing a unified tax administration. In this respect the MOF has appointed one head for both VAT and Revenue directorates and has launched the integration process.

47

Preparations are underway to harmonize systems and procedures and finalize the draft law establishing the single tax administration. In addition to supporting the tax administration, METAC is deploying its assistance to another major revenue agency, the customs administration. Lebanon imports a sizable share of consumer goods, about 80 percent of total consumption. Taxes on international trade contribute significantly to the government revenues. In terms of VAT, the principal share of revenue (more than 70 percent) is collected by customs at the stage of importing. A first METAC activity was delivered in September 2011; it performed a high-level review of the current status of customs modernization, provided technical advice in relevant operational areas, and assessed needs going forward. A second visit was organized in July 2012 to address risk management; TA was provided to strengthen the work of the central RMU, design appropriate risk parameters and schemes that would improve targeting and selectivity, establish an effective monitoring framework, and streamline the risk management procedures. Going forward, METAC will continue to strongly support the modernization plans of Lebanon towards improving revenue performance. TA will focus on key components in tax and customs reforms that should strengthen operations’ delivery and increase compliance rates. In tax administration, priority in TA delivery will be directed to: (1) the establishment of a new unified tax administration across all types of taxes; (2) the strengthening of the operations at the LTO; (3) the development of segment-based compliance and enforcement strategies; (4) the strengthening of VAT operations; and (5) the revision of the tax code and the development of a simplified scheme for small taxpayers. In customs administration, TA will be needed in the following areas: (1) development of a structured modernization and change program; (2) review and redesign of the organizational structure; (3) design and implementation of a risk management system including a dynamic valuation database, offences database and the operation of a risk management unit; (4) business process re-engineering, including the ‘Single Window’ for sharing of information by businesses and other ministries; and (5) review of the valuations system.

48

SECTION IV:

OVERVIEW OF THE FY 2014 WORK PLAN

49

SECTION IV: OVERVIEW OF THE FY2014 WORK PLAN

A. Banking Supervision The FY2014 work plan on banking supervision will focus on achieving the four main outcomes as outlined in the RBM approach that was adopted by METAC in the beginning of FY2013. Since some long-term projects had started previously with the country authorities but are not completed yet, some of the activities represent a continuation of those projects until their completion in FY2014 or beyond. The following illustrates a summary of the main activities that are planned during FY2014 as classified under each of the four regional outcomes: Enhancement of Risk-Based Supervisory and Enforcement Frameworks

Continue the assistance to Lebanon in developing a risk-based supervision manual for NBFIs.

Continue the project started in West Bank and Gaza on developing a risk-based supervision manual for banks and launch the project with Sudan on developing a risk-based onsite inspection manual.

Continue the assistance provided to Afghanistan and Yemen in developing their enforcement framework for dealing with weak banks.

Continue the project launched with Jordan on developing a statistical-based EWS.

Assist Jordan and Lebanon in developing their financial stability frameworks to better address the risks emanating from systemic and sector-wide factors and to achieve better-informed and well-coordinated regulations and policies.

Complete the assistance provided to Afghanistan in developing a medium term action plan for strengthening banking supervision.

Banque du Liban.

50

Enhancements of the Regulatory Frameworks

Assist Libya and Yemen in developing new regulations for Islamic banking activities.

Continue the project started in Jordan to improve the current Basel II – pillar 2 framework and assist in drafting some regulations and template reports in preparation for Basel III, and assess the potential for launching a similar project with Egypt.

Developing some prudential regulations for Afghanistan, Libya, Sudan and Yemen.

Credit Registries and Bureaus

Continue the final phases of assistance provided to Sudan in expanding the functionalities of the credit registry. Capacity Building Activities

Workshops on financial stability, stress testing and macro-prudential supervision in Jordan and Lebanon.

Training to Afghanistan and Yemen, on the supervision of weak banks and the application of the enforcement powers and tools available to supervisors.

Workshops on Islamic banking activities in Yemen, Libya, and Afghanistan.

Training to West Bank and Gaza on various Basel principles and standards.

Regional workshops on financial stability (including macro-prudential supervision) and on Islamic banking.

Da Afghanistan Bank

51

B. Macroeconomic Statistics Consistent with the RBM framework, the work program in statistics, in line with STA and MCD strategies, also responds to member countries’ requests and benefits from METAC’s accumulated experience in the region. Activities in macroeconomic statistics in FY2014 will continue to focus on improving the quality of the external sector statistics, price statistics, and support the work on NA. In particular, METAC will assist:

Egypt, Lebanon, and Sudan in completing the DI surveys.

Lebanon and Afghanistan in achieving publication of their first IIP, and Libya in completing a preliminary IIP.

Afghanistan, Lebanon, Sudan, Syria and Yemen in improving the overall quality of the BOP and IIP.

Afghanistan, Libya, and Yemen in improving their CPI and in compiling a PPI (Afghanistan and Yemen) or resuming the PPI compilation (Libya);

Jordan, Lebanon, Sudan, and Yemen in improving their NA (annual and/or quarterly, as relevant).

METAC will organize two regional workshops on: (1) on the general economy of an International Transactions Reporting System (ITRS), postponed from FY2013; and (2) the International Reserves template.

52

C. Public Financial Management The FY2014 work plan remains in line with the core objectives of the Program Document. The focus will be on assisting member countries to further strengthen their PFM systems, including: improving legal frameworks; reforming planning and budget processes; enhancing budget and accounting classification systems; upgrading cash management systems; modernizing government banking arrangements; strengthening internal control environment; and reforming accounting and budget execution reporting systems. For Libya, METAC will resume TA missions on treasury reforms and will be ready to respond to any new TA needs as they emerge. METAC will continue to participate in FAD diagnostic missions to Afghanistan, Egypt, Jordan, Libya, Sudan and West Bank and Gaza, and will adjust its work program on the basis of the missions’ findings. METAC’s work plan for FY2014will focus on the following activities:

METAC will continue its support for the modernization of legal and regulatory frameworks in

Iraq and Lebanon by providing guidance on strengthening PFM legislation, and developing consistent financial regulations.

Macro-Fiscal and Medium-Term Budget Framework (MTBF): METAC will contribute to building the capacity of the staff of the macro-fiscal unit in Afghanistan, and will provide training on MTBF to Yemen.

METAC will provide guidance on reforms to cash management and banking arrangements. As a follow-up to support the implementation of recommendations from previous missions METAC will provide support to Sudan.

La contribution de la Direction Générale des Finances Publiques françaises aux actions conduites par le METAC et plus largement par le FMI s'est construite sur une relation de confiance durable, fondée sur l'expertise des personnels de la DGFiP. Désormais intégrée au sein d'un MoU entre la DGFiP et le Fonds, la collaboration avec le METAC, déjà ancienne, s'est intensifiée sur des sujets stratégiques d'intérêt commun, tels la conduite du changement, la lutte contre la fraude fiscale...Cette collaboration est très importante pour la DGFiP dans la mesure où elle lui permet de valoriser son savoir-faire et d'échanger au sein d'une zone géographique de coopération prioritaire.

*** The contribution of the French Directorate General of Fiscal Affairs (DGFA) to the operations conducted by METAC and, more widely by the IMF, has been built on a durable relationship of confidence, based on the expertise of the DGFA staff. Being already integrated in a Memorandum of Understanding (MOU) between the IMF and the DGFA, this long-standing collaboration with METAC has intensified on strategic issues of common interest, such as managing change, fighting tax fraud … In fact, a very important collaboration, since it allows us to increase our know-how and extend our reach to a priority geographic zone.

Josiane LANTERI

Administratrice Générale des Finances Publiques Direction Générale des Finances Publiques

53

Budget Classification and COA: METAC will provide assistance to Iraq and Libya in reviewing the budget classification and the COA in line with the GFSM 2001 and the COFOG standards.

Treasury reforms: METAC will (i) provide assistance in the area of commitment, cash and expenditure management to Jordan; (ii) follow up on the preventive and detective controls over payments in Egypt; and (iii) deliver training on treasury functions to Yemen.

Internal controls: METAC will assist Egypt in strengthening the internal controls within the line agencies, leading the overall systems of internal controls, accounting and reporting to be consistent with internationally accepted standards.

METAC plans to organize two regional workshops: one on the policy choices and operational techniques required for efficient treasury functions, and specifically (i) budget execution and control options, (ii) payment arrangements, (iii) banking arrangements and the TSA, and (iv) management of government cash balances including interaction with the central bank and banking sector; and the other on MTBF and specifically (i) the key aspect of the strategic, top-down fiscal policy approach; and (ii) how a multi-year plan permits fiscal strategies including expenditure plans for the entire interval to be set out and for plans for the upcoming year to be cast within a multiyear context.

54

D. Revenue Administration In the area of revenue administration, METAC’s work plan for FY2014 has been developed to respond to the modernization programs of member administrations towards improving revenue performance. TA will cover key components of tax and customs operations aiming at increasing compliance rates and improving revenue collection. Relevant support will be provided through on-site missions, regional and country-specific workshops, and focused trainings. TA activities will be delivered by the resident revenue administration advisor as well as regional and international experts, resulting in a total of 64 planned person weeks. The proposed work plan reflects several considerations pertaining to IMF’s and METAC’s approach to TA delivery, as well as member countries’ needs and priorities. In particular, the following factors have driven the development of the FY2014 work plan: The status of revenue reforms in METAC countries and priority actions needed to strengthen revenue performance, as identified by METAC’s resident revenue administration advisor, FAD, and METAC follow-up and TA missions:

FAD’s plans and programs for member countries, and the strategy notes prepared by the area department.

من خالل الزيارات والتقارير التي قدمھا ) METAC(العديد من األنشطة مع صندوق النقد الدولي 2012تضمنت السنة .الخبراء للدائرة

وذلك بھدف تعزيز اإلدارة الضريبية ، وقد تضمنت التقارير الوصفة العالجية في مجاالت األنشطة الرئيسية لعمل رات الضريبية ، تحسين سجل المكلفين ، رفع نسبة االلتزام الطوعي ورفع مستوى جودة الدائرة ، وكان أھمھا تخفيض المتأخ

عمليات التدقيق ، مما كان لذلك األثر على تحسين مستوى األداء للدائرة من خالل التعاون مع فريق متخصص من خبراء لدائرة وخاصة من خالل الزيارات المتكررة الدائرة في المجاالت المختلفة ، وما زال التعاون مستمرا لتحسين العمل في ا

واالتصاالت بكافة أشكالھا مع الخبيرة منال األسير والتي لم تترد في تقديم المعلومة والمشورة في جميع ما يطلب منھا بھدف .دعم الدائرة

The year 2012 included several activities with METAC where visits and reports were delivered by tax experts. These visits aimed to strengthen the tax administration, and the reports have stroke the main concerns of the department. The most important activities worked on where: reducing tax arrears; improving record holders; raising the proportion of voluntary compliance and quality of audits, which had an impact on improving the level of performance of the department through cooperation with a dedicated team of experts in different areas. Cooperation to improve work of the Tax department is ongoing with the assistance of METAC expert Manal Assir that did not hesitate to provide information, advice, and support to the department.

Riad Shreideh Director General of Income and Sales Tax Department

Jordan

55

TA requests of member countries.

The RBM framework for TA that METAC adopted starting in FY2013 and the corresponding revenue administration log frame that sets clear objectives, outcomes, verifiable indicators, and risks and assumptions.

Security conditions in some member countries that may restrain delivery of onsite visits.

The FY2014 proposed work plan covers the following activities:

Entrenching self-assessment and improving compliance management of large taxpayers, in preparation for introduction of VAT in Afghanistan.

Strengthening VAT operations and refunds management in Jordan and Lebanon.

Improving compliance management and risk-based audit in Egypt, Jordan, Lebanon, and Sudan.

Developing a TPC in Egypt.

Strengthening LTO operations in Jordan and Lebanon.

Strengthening the central taxpayer database and streamlining processes in Sudan and Yemen.

Developing an audit manual in Sudan.

Supporting the establishment of an integrated tax administration in Lebanon.

Supporting customs administration in Egypt and Lebanon.

Supporting tax reforms in Libya, Syria and Yemen.

In addition to direct TA, METAC will continue promoting regional cooperation on critical matters affecting operations’ delivery in member revenue administrations. In this context, METAC will organize two regional workshops that aim to strengthen information sharing, knowledge exchange and regional networking in the following topics: (1) audit trends of large taxpayers, and (2) information systems in tax administration.

56

SECTION V:

BUDGET AND FINANCING

57

SECTION V: BUDGET AND FINANCING

Project Status – Third Funding Cycle (Phase III) The program budget for Phase III, covering May 2010 through April 2015, was $33 million. The work program assumed that donors’ resources would support five resident advisors and the historical average of short-term experts to deliver specialized TA. In the December 2009 Program Document, the program would support salaries for experts, travel, seminars, backstopping, and project management. At the June 2010 meeting, the SC adopted the Program Document and the proposed budget for METAC Phase III. At the October 10, 2010 pledging session in Washington DC, donors and member countries pledged a total of $15 million. The total included contributions already made by the EC and the EIB under a separate framework agreement and a generous financial contribution from Lebanon. There were also pledges received from France, Kuwait, Oman, and METAC beneficiary countries Egypt, Jordan, Libya, Syria, Sudan, and Yemen. These pledges, together with about $6 million in contributions from the IMF and host country Lebanon for the Center’s operating cost, brought the total to about $21 million, or about two-thirds of Phase III requirements. The Budget for FY 2013 Given the uncertainty of full funding for METAC Phase III, the budget for the funding cycle was revised down in line with available resources beginning in 2011. The $2.97 million FY2013 budget was presented during the 2012 SC meeting (Table 1). The budget took into account reductions in demand and financing challenges arising from civil unrest throughout the region. METAC continued to collaborate on sponsoring workshops with other agencies operating in the region, such as the USAID, as well as with member countries. The FY2013 budget outturn was $2.3million. Contribution Roster – Phase III The total funding pledged for Phase III has reached about $17 million (Table 2) with GIZ contributing and disbursing $2.4 million in FY2013. The composition of the pledges continued to reflect a strong regional ownership, with METAC countries contributing more than half of total resources. The EC, an early contributor, has already paid 90% of the amount it pledged. Scheduled installments were also received during the last fiscal year from France, Egypt, Jordan, Lebanon, and Libya. Discussions are underway with the EIB under a separate framework agreement, to extend use of its resources through April 30, 2015, to support METAC as a flexible vehicle to respond to emerging TA needs for stabilizing monetary and capital market operations in the region. Documentation is nearly completed for the USAID’s $1.3 million contribution.

58

The FY2014 Budget The FY2014 budget for TA to member countries is scheduled to be $3.4 million (Table 3). Given the expectation that TA needs will intensify once the region stabilizes, the FY2014 work plan aims to optimize resource use. The mid-program entry of two new donors (GIZ and USAID) will make available resources to meet these increased TA demands. The FY2014 budget also includes the mid-term independent evaluation of METAC. Outcome of the evaluation will be presented at the next SC meeting in 2014.

Long-term experts 6.75 3.50 3.25 1.44 1.24 0.20

Short-term experts 3.76 2.06 1.70 0.60 0.51 0.10

Travel 0.72 0.48 0.24 0.14 0.14 0.01

Seminars 1.06 0.40 0.66 0.25 0.16 0.09

Staff TA delivery 0.00 0.00 0.00

Miscellaneous 0.08 0.04 0.04 0.02 0.018 0.00

Backstopping 0.99 0.29 0.70 0.23 0.05 0.16

Project management 0.46 0.20 0.26 0.10 0.04 0.06

Total TA Delivery 13.85 7.00 6.85 2.78 2.16 0.62

Evaluation 0.3 - 0.3 -

Trust fund management (7%) 0.99 0.49 0.50 0.19 0.15 0.04

GRAND TOTAL 15.14 7.48 7.65 2.97 2.31 0.66

ACTIVITY BUDGET EXPENSES

0.03 0.000

International Monetary Fund

Middle East Regional Technical Assistance Center

Third Funding Cycle (Phase III) May 2010 - April 2015

Table 1. Consolidated Financial Status

(US$ millions)

FY 2010– FY 2015 FY 2013

REMAINING BUDGET EXPENSES REMAINING

0.03

59

Pledge (US$ dollars)

LOU Status

Contributor Currency

Pledge (Contributor

Currency)

Contributions Received

(US$)

Future Installments

(US$)

Phase III - S igned Agreements:

(A) Under Multi-Donor SFA

European Commission 1,875,000 12/29/2009 Euros 1,500,000 1,647,000 228,000

Libya 1,500,000 5/24/2010 U.S. dollars 1,500,000 900,000 600,000

Syria 500,000 8/27/2010 U.S. dollars 500,000 100,000 400,000

Kuwait 250,000 10/27/2010 U.S. dollars 250,000 250,000 -

Egypt 1,000,000 12/1/2010 U.S. dollars 1,000,000 600,000 400,000

Jordan2500,000 12/9/2010 U.S. dollars 500,000 200,000 300,000

Sudan 500,000 12/1/2010 U.S. dollars 500,000 - 500,000

Lebanon15,000,000 01/31/2011 U.S. dollars 5,000,000 3,000,000 2,000,000

France 2,502,000 3/15/2011 Euros 1,800,000 1,473,156 1,028,844

Oman 500,000 8/9/2011 U.S. dollars 500,000 500,000 -

Germany-GIZ 2,434,036 11/12/2012 Euros 1,880,000 2,434,036 -

Subtotal 16,561,036 11,104,192 5,456,844

(B) UNDER FAA

European Investment Bank 578,552 4/3/2008 U.S. dollars 578,552 $578,552 -

Subtotal 17,139,588 $11,682,744

Phase III - Pledges - Pending

Syria 2 250,000 sent 4/2011 U.S. dollars 250,000 250,000

Yemen 500,000 sent 12/2010 U.S. dollars 500,000 500,000

USAID 1,300,000 U.S. dollars 1,300,000 1,300,000

Subtotal 2,050,000 2,050,000 2,050,000

GRAND TOTAL 19,189,588 $11,682,744 $7,506,8441 Lebanon contributes an additional $1.5 million for hosting the center, and has disbursed $0.9 million thereof as of March 2013.2 Contribution of $100,00 received on May 28, 2013 (FY14) is not included.

International Monetary Fund

Middle East Regional Technical Assistance Center

Third Funding Cycle (Phase III) May 2010 - April 2015

Table 2. Status of Financial Contributions

60

FY 2014 BUDGET

1.49

0.63

0.14

0.26

0.02

0.24

0.10

2.88

Evaluation 0.30

0.22

GRAND TOTAL 3.40

DESCRIPTION

Long-term experts

Short-term experts

Travel

Seminars

Trust fund management fee (7%)

Miscellaneous

Backstopping

Project Management

Total TA Delivery

International Monetary Fund

Middle East Regional Technical Assistance Center

Third Funding Cycle (Phase III) May 2010 - April 2015

Table 3. FY 2013 Budget May 2013 - April 2014

(US$ millions)

61

ANNEXES

62

ANNEX I: THE IMF REGIONAL TECHNICAL ASSISTANCE CENTERS

(RTACS)

Existing RTACs

The Pacific Financial Technical Assistance Center (PFTAC) was established in Suva, Fiji, in 1993, now serves 16 Pacific island countries and territories, including the Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Palau, Papua New Guinea, Samoa, Solomon Islands, Timor-Leste, Tokelau, Tonga, Tuvalu, and Vanuatu. Its current program cycle is funded by the Asian Development Bank, Australia, the EU, the IMF, Korea, New Zealand, and the host country Fiji. The Caribbean Regional Technical Assistance Center (CARTAC) was established in Bridgetown, Barbados in 2001. It serves 20 Caribbean island countries and territories, including Anguilla, Antigua and Barbuda, Bahamas, Barbados, Belize, Bermuda, British Virgin Islands, Cayman Islands, Dominica, Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad and Tobago, and Turks and Caicos. Its current program cycle is funded by Australia, Canada, the Caribbean Development Bank, the EU, the IMF, the United Kingdom, the host country Barbados, and beneficiary countries.

The African Regional Technical Assistance Centers (AFRITACs) are part of the IMF’s Africa Capacity-Building Initiative, launched in May 2002. Responding to calls from African leaders, including under the New Partnership for Africa’s Development (NEPAD), the Initiative promotes strengthening the capacity of African countries to design and implement their poverty-reducing strategies, as well as to improve the coordination of capacity-building technical assistance in the Poverty Reduction Strategy Paper (PRSP) process. As part of the Initiative, four African Regional Technical Assistance Centers have been established. East AFRITAC was opened in Dar es Salaam, Tanzania, in 2002, now serves seven countries in East Africa (Eritrea, Ethiopia, Kenya, Malawi, Rwanda, Tanzania, and Uganda). West AFRITAC was opened in Bamako, Mali, in 2003 and moved to Abidjan, Côte d’Ivoire, in mid-2012 to serve ten countries in West Africa (Benin, Burkina Faso, Côte d’Ivoire, Guinea, Guinea-Bissau, Mali, Mauritania, Niger, Senegal, and Togo). Central AFRITAC was opened in Libreville, Gabon, in 2007, to serve countries in the CEMAC group, plus Burundi, the Democratic Republic of the Congo, and São Tomé and Principe. AFRITAC South was opened in Port Louis, Mauritius, in June 2011, to serve 13 countries in Southern Africa (Angola, Botswana, Comoros, Lesotho, Madagascar, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Swaziland, Zambia, and Zimbabwe). Work is in progress to open one more AFRITAC in 2013, covering the non-francophone countries in West Africa (AFRITAC West 2). The AFRITACs are financed by contributions from a number of donors, the IMF, as well as host and beneficiary countries. Current donors include the African Development Bank, Australia, Brazil, Canada, the EIB, the EU, France, Germany, Italy, Kuwait, Luxembourg, the Netherlands, Switzerland, and the United Kingdom.

63

The Middle East Regional Technical Assistance Center (METAC) was established in Beirut, Lebanon, in 2004 to serve ten countries/territories in the Middle East, including Afghanistan, Egypt, Iraq, Jordan, Lebanon, Libya, Sudan, Syria, West Bank and Gaza, and Yemen. METAC’s main objective is to help strengthen capacity for effective macroeconomic and financial management in the region, and to support the region’s integration into the world economy. A particular focus is to help post-conflict countries in the region achieve macroeconomic stability and develop basic institutions for policymaking. METAC is designed to enhance coordination among development partners and to promote effective implementation of economic initiatives within the Middle East region. METAC’s current program cycle is financed by contributions from the EIB, the EU, France, Germany, the IMF, Kuwait, Oman, the host country Lebanon, and beneficiary countries. The Central America, Panama and the Dominican Republic Regional Technical Assistance Center (CAPTAC-DR) started operations in May 2009 in Guatemala. It serves Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and Panama. The Center’s TA is focused on financial sector supervision, tax and customs administration, medium-term expenditure frameworks and public financial management, money markets, and macroeconomic statistics. Improved institutions and increased regional integration are the objectives. The Center is funded by Canada, the Central American Bank for Economic Integration, the EU, Germany, the Inter-American Development Bank, the IMF, Mexico, Spain, the host country Guatemala, and beneficiary countries.

64

ANNEX II: LOG FRAMES

65

M

ET

AC

Reg

ion

al L

og F

ram

e F

Y20

13-1

5  

 

Stra

tegi

c O

bje

ctiv

eIm

prov

e in

stitu

tiona

l cap

acity

for e

ffect

ive

mac

roec

onom

ic m

anag

emen

t to

achi

eve

high

er a

nd s

usta

inab

le g

row

th.

1

. A

chie

ve a

mo

re r

isk-

ori

en

ted

ban

kin

g su

pe

rvis

ory

and

re

gula

tory

fra

me

wo

rk t

hat

en

han

ces

fin

anci

al s

tab

ility

in t

he

re

gio

n a

nd

alig

ns

it

furt

he

r w

ith

inte

rnat

ion

al s

tan

dar

ds

and

be

st

pra

ctic

es.

2.

Esta

blis

h a

n in

tegr

ate

d b

ud

get

pla

nn

ing

and

man

age

me

nt

pro

cess

th

at e

ffe

ctiv

ely

lin

ks

po

licie

s to

pu

blic

re

sou

rce

allo

cati

on

, an

d f

urt

he

r

de

velo

p t

reas

ury

sys

tem

s, in

clu

din

g go

vern

me

nt

ban

kin

g ar

ran

gem

en

ts, c

om

mit

me

nt

con

tro

ls,

cash

man

age

me

nt

and

fin

anci

al m

anag

em

en

t

info

rmat

ion

sys

tem

.

3. U

pgr

ade

re

ven

ue

ad

min

istr

atio

n t

o b

rin

g it

to

be

st

inte

rnat

ion

al s

tan

dar

ds,

fo

cusi

ng

on

en

han

ced

o

rgan

izat

ion

an

d p

roce

du

res

and

eff

ect

ive

co

mp

lian

ce

too

ls, t

o im

pro

ve r

eve

nu

e p

erf

orm

ance

an

d in

cre

ase

re

ven

ue

co

llect

ion

.

4. B

rin

g m

em

be

r co

un

trie

s cl

ose

r to

co

mp

lian

ce w

ith

inte

rnat

ion

al s

tan

dar

ds

for

the

co

mp

ilati

on

of

ext

ern

al

stat

isti

cs, N

A, a

nd

pri

ce s

tati

stic

s.

1

. R

est

ora

tio

n o

f p

olit

ical

an

d s

ecu

rity

sta

bili

ty in

a

nu

mb

er

of

MET

AC

co

un

trie

s th

at w

ou

ld a

llow

de

live

ry o

f TA

in a

tim

ely

man

ne

r

2

. Su

ffic

ien

t o

wn

ers

hip

of

refo

rm m

eas

ure

s b

y th

e

cou

ntr

y au

tho

riti

es

and

co

mm

itm

en

t to

pro

vid

e

reso

urc

es

to c

arry

-ou

t th

eir

du

tie

s an

d im

ple

me

nt

refo

rm m

eas

ure

s

3

. Mo

bili

zati

on

of

suff

icie

nt

fin

anci

ng

for

MET

AC

4. C

om

ple

me

nta

ry T

A b

y H

Q a

nd

oth

er

TA p

rovi

de

rs is

av

aila

ble

66

1. B

anki

ng

Sup

erv

isio

n

Ou

tco

me

s In

dic

ato

rs f

or

en

d F

Y2

01

5

AFG

Egypt

Iraq

Jordan

Lebanon

Libya

Sudan

Syria

WBG

Yemen

1. E

nh

ance

men

t o

f ri

sk-b

ased

su

per

viso

ry a

nd

en

forc

emen

t fr

amew

ork

s in

bo

th o

nsi

te a

nd

off

site

su

per

visi

on

fu

nct

ion

s.

1.1

Ris

k-b

ased

on

site

insp

ecti

on

an

d e

nfo

rcem

ent

man

ual

s ar

e d

evel

op

ed a

nd

en

han

ced

an

d a

re w

ell

inte

grat

ed w

ith

in t

he

ove

rall

sup

ervi

sory

fra

me

wo

rk.

1.2

Ear

ly W

arn

ing

Syst

em M

od

els

are

dev

elo

ped

an

d e

ffec

tive

ris

k as

sess

men

t is

bei

ng

pre

par

ed u

sin

g o

ffsi

te s

up

ervi

sory

to

ols

an

d

pru

den

tial

rep

ort

s.

1.3

Ne

w O

nsi

te a

nd

Off

site

man

ual

s ar

e ad

op

ted

fo

r su

per

visi

on

of

Isla

mic

ban

kin

g ac

tivi

ties

.

2. F

urt

her

alig

nm

ent

of

the

regu

lato

ry f

ram

ewo

rk w

ith

B

asel

pri

nci

ple

s an

d s

tan

dar

ds,

in p

arti

cula

r B

asel

II a

nd

III

fram

ew

ork

s.

2.1

New

reg

ula

tio

ns

are

issu

ed in

lin

e w

ith

Bas

el c

ore

pri

nci

ple

s.

2.2

Issu

ance

of

ne

w r

egu

lati

on

s an

d a

pp

licat

ion

of

new

su

per

viso

ry

too

ls a

nd

tec

hn

iqu

es t

hat

are

in f

urt

her

co

mp

lian

ce w

ith

Bas

el II

ac

cord

an

d B

ase

l III

ref

orm

s.

2.3

New

su

per

viso

ry r

egu

lati

on

s an

d g

uid

elin

es a

re is

sued

fo

r Is

lam

ic b

anki

ng

acti

viti

es.

3. E

nh

ance

men

t o

f th

e fu

nct

ion

of

pu

blic

cre

dit

reg

istr

ies

and

PC

Bs

to b

e in

lin

e w

ith

inte

rnat

ion

al b

est

pra

ctic

es.

3.1

Th

e p

ub

lic c

red

it r

egis

trie

s w

ill b

e fu

lly o

per

atio

nal

wit

h

exp

and

ed f

inan

cial

an

d d

emo

grap

hic

dat

abas

e al

on

g w

ith

an

ef

fect

ive

soft

war

e an

d c

om

pre

hen

sive

rep

ort

ing.

3.2

. A f

ram

ewo

rk f

or

licen

sin

g an

d s

up

ervi

sin

g P

CB

s is

dev

elo

ped

an

d e

ffec

tive

ly a

pp

lied

.

3.3

. In

crea

sed

acc

ess

to c

red

it a

nd

red

uct

ion

in t

he

leve

l of

pay

men

t d

elin

qu

enci

es a

nd

def

ault

rat

es.

4. B

anki

ng

sup

ervi

sors

in t

he

regi

on

hav

e a

bet

ter

un

der

stan

din

g o

f th

e la

test

pra

ctic

es a

nd

sta

nd

ard

s o

n

ban

kin

g su

per

visi

on

an

d d

eve

lop

th

eir

su

pe

rvis

ory

ski

lls

and

cap

abili

ties

acc

ord

ingl

y.

4.1

Off

site

an

d o

nsi

te s

up

ervi

sors

ap

ply

th

e d

evel

op

ed r

isk-

bas

ed

fram

ewo

rks

effe

ctiv

ely

and

sh

ow

a t

ho

rou

gh k

no

wle

dge

of

the

ne

w

regu

lati

on

s an

d a

pp

ly t

hem

eff

ect

ivel

y th

rou

gho

ut

thei

r w

ork

.

4.2

Wea

k an

d p

rob

lem

ban

ks a

re id

enti

fied

ear

ly a

nd

dea

lt w

ith

th

rou

gh p

rom

pt

corr

ecti

ve a

ctio

n p

lan

s th

at a

re r

igo

rou

sly

follo

wed

u

p.

Inp

uts

A

ssu

mp

tio

ns/

Ris

ks

Res

iden

t A

dvi

sor

in B

anki

ng

Sup

erv

isio

n.

1.

Po

litic

al s

tab

ility

an

d s

ecu

rity

co

nd

itio

ns

allo

w t

he

del

iver

y o

f M

ETA

C T

A a

nd

th

e im

ple

men

tati

on

of

nee

ded

re

form

s.

2.

Su

per

viso

ry a

uth

ori

ties

su

pp

ort

th

e im

ple

men

tati

on

of

pro

ject

s as

sist

ed b

y M

ETA

C, s

ho

w c

on

tin

ued

co

mm

itm

ent

to a

pp

ly t

he

new

m

anu

als

and

th

e d

raft

reg

ula

tio

ns,

an

d t

ake

all n

eces

sary

an

d t

imel

y ac

tio

ns

to p

ut

MET

AC

’s r

eco

mm

end

atio

ns

into

eff

ect.

3

. B

anki

ng

sup

erv

iso

rs m

ake

goo

d u

se o

f th

e kn

ow

led

ge a

nd

tec

hn

ical

ass

ista

nce

pro

vid

ed

by

MET

AC

an

d a

pp

ly t

hem

eff

ecti

vely

in t

he

co

urs

e o

f su

per

visi

ng

ban

kin

g an

d f

inan

cial

act

ivit

ies.

4

. Su

ffic

ien

t Fi

nan

cin

g fo

r M

ETA

C is

mo

bili

zed

.

Sho

rt-t

erm

exp

erts

.

Co

llab

ora

tio

n /

Par

tici

pat

ion

in H

Q m

issi

on

s.

Ou

tpu

ts

Dra

ft la

ws,

reg

ula

tio

ns,

rep

ort

s an

d m

anu

als.

W

ork

sho

ps,

sem

inar

s an

d o

n-t

he-

job

tra

inin

g.

67

2. M

acro

eco

no

mic

Sta

tist

ics

Ou

tco

me

s In

dic

ato

rs f

or

en

d-F

Y 2

01

5

AFG

Egypt

Iraq

Jordan

Lebanon

Libya

Sudan

Syria

WBG

Yemen

1. B

ett

er

com

plia

nce

wit

h in

tern

atio

nal

sta

nd

ard

s

for

the

co

mp

ilati

on

an

d d

isse

min

atio

n o

f e

xte

rnal

sect

or

stat

isti

cs (

BO

P, I

IP r

eser

ves

dat

a te

mp

late

,

and

EX

D s

tati

stic

s).

1.1

. Tim

ely

re

po

rtin

g o

f B

OP

dat

a fo

r IM

F p

ub

licat

ion

s.

1.2

. Tim

ely

re

po

rtin

g o

f II

P d

ata

for

IMF

pu

blic

atio

ns.

1.3

. Bal

ance

of

Pay

men

ts a

nd

Inte

rnat

ion

al In

vest

men

t

Po

siti

on

Man

ual

, six

th e

dit

ion

(B

PM

6)

met

ho

do

logy

imp

lem

ente

d.

1.4

. Rep

ort

ing

of

the

Res

erve

s D

ata

Tem

pla

te.

1.5

. Par

tici

pat

ion

in t

he

Qu

arte

rly

Exte

rnal

De

bt

(EX

D)

Stat

isti

cs d

atab

ase.

2. I

ncr

ease

d p

arti

cip

atio

n in

CD

IS a

nd

CP

IS t

o

enh

ance

reg

ion

al d

ata

on

fin

anci

al

inte

rco

nn

ecte

dn

ess.

2.1

. Par

tici

pat

ion

in t

he

CD

IS.

2.2

. Par

tici

pat

ion

in t

he

CP

IS (

incl

ud

ing

enh

ance

men

ts).

3. B

ett

er

com

plia

nce

wit

h in

tern

atio

nal

sta

nd

ard

s

for

the

com

pila

tio

n o

f an

nu

al, a

nd

fo

r so

me

cou

ntr

ies,

qu

arte

rly

NA

.

3.1

. Tim

ely

rep

ort

ing

of

ann

ual

NA

fo

r IM

F p

ub

licat

ion

s.

3.2

. Tim

ely

re

po

rtin

g o

f q

uar

terl

y N

A f

or

IMF

pu

blic

atio

ns.

4. B

ett

er

com

plia

nce

wit

h in

tern

atio

nal

sta

nd

ard

s

for

the

co

mp

ilati

on

of

mo

nth

ly p

rice

sta

tist

ics.

4.1

. Up

dat

ed C

PI.

4.2

. Dev

elo

ped

PP

I.

4.3

. Up

dat

ed P

PI

Inp

uts

A

ssu

mp

tio

ns/

Ris

ks

On

e R

esi

de

nt

Ad

viso

r in

Ext

ern

al S

tati

stic

s.

Sho

rt-t

erm

exp

erts

(R

eal S

ecto

r).

HQ

-bas

ed d

iagn

ost

ic m

issi

on

s an

d b

acks

top

pin

g.

1.

Suff

icie

nt

ow

ner

ship

of

refo

rms

by

the

cou

ntr

y au

tho

riti

es, i

ncl

ud

ing

imp

lem

en

tati

on

of

mis

sio

ns'

re

com

me

nd

atio

ns.

2.

Suff

icie

nt

fun

din

g b

y th

e co

un

try

auth

ori

ties

an

d o

ther

do

no

rs f

or

nee

ded

res

ou

rce

s.

3.

Suff

icie

nt

fun

din

g fo

r M

ETA

C T

A a

ctiv

itie

s.

4.

Co

mp

lem

enta

ry H

Q a

nd

oth

er d

on

ors

' TA

is a

vaila

ble

.

5.

Po

litic

al/s

ecu

rity

co

nd

itio

ns

in m

em

be

r co

un

trie

s al

low

fo

r TA

del

iver

y an

d r

efo

rms'

imp

lem

enta

tio

n.

Ou

tpu

ts

TA r

epo

rts.

Han

ds-

on

tra

inin

g.

Co

un

try

wo

rksh

op

s.

Reg

ion

al w

ork

sho

ps

and

se

min

ars.

68

3.

Pu

blic

Fin

anci

al M

anag

em

en

t

Ou

tco

me

s In

dic

ato

rs f

or

en

d-F

Y2

01

5

AFG

Egypt

Iraq

Jordan

Lebano

n

Libya

Sudan

Syria

WBG

Yemen

1. B

ud

get

pro

cess

bas

ed o

n s

pen

din

g p

rogr

ams

linke

d t

o a

med

ium

ter

m

bu

dge

t fr

amew

ork

an

d s

up

po

rted

by

app

rop

riat

e b

ud

get

cale

nd

ar a

nd

lega

l fr

amew

ork

1.1

. A m

ediu

m t

erm

bu

dge

t fr

amew

ork

, wit

h a

bu

dge

t d

ocu

men

t in

clu

din

g b

ud

get

esti

mat

es f

or

at le

ast

two

ou

t-ye

ars

in a

dd

itio

n t

o t

he

nex

t fi

scal

yea

r is

dev

elo

ped

.

2. C

om

pre

he

nsi

ve b

ud

get

inte

grat

ing

cap

ital

an

d r

ecu

rren

t ex

pen

dit

ure

s

2.1

. An

inte

grat

ed b

ud

get

pla

nn

ing

and

man

agem

ent

pro

cess

th

at e

ffec

tive

ly li

nks

p

olic

ies

to b

ud

geti

ng

is e

stab

lish

ed

.

2.2

. Est

imat

ed c

ost

of

exp

end

itu

re p

rogr

ams

and

inte

grat

ed b

ud

gets

fo

r ca

pit

al

and

rec

urr

ent

exp

end

itu

res

are

incl

ud

ed in

th

e b

ud

get

do

cum

ent.

3. F

urt

her

imp

rove

d g

ove

rnm

ent

cash

p

lan

nin

g an

d m

anag

eme

nt

and

co

nso

lidat

ed g

ove

rnm

ent

ban

kin

g ar

ran

gem

ents

th

rou

gh T

SA r

egim

e

3.1

. A c

ash

pla

nn

ing

fun

ctio

n is

dev

elo

pe

d le

adin

g to

a g

oo

d e

valu

atio

n o

f th

e fu

ture

pro

file

of

the

to

tal c

ash

re

sou

rce

s av

aila

ble

to

th

e go

vern

men

t to

mee

t it

s b

ud

get

exp

end

itu

re p

lan

s.

3.2

. A T

reas

ury

Sin

gle

Acc

ou

nt

(TSA

) re

gim

e is

imp

lem

en

ted

.

4. B

ud

get

exec

uti

on

an

d r

epo

rtin

g, a

nd

in

tern

al c

on

tro

l an

d a

ud

it b

road

ly

com

plia

nt

wit

h in

tern

atio

nal

sta

nd

ard

s

4.1

. Bu

dge

t C

lass

ific

atio

n c

om

plia

nt

wit

h G

FSM

20

01

on

a c

ash

bas

is is

intr

od

uce

d.

4.2

. Exp

end

itu

re c

on

tro

ls, a

cco

un

tin

g an

d f

inan

cial

re

po

rtin

g, a

s w

ell

as in

tern

al

con

tro

l an

d a

ud

it a

re c

om

plia

nt

wit

h r

ele

van

t in

tern

atio

nal

sta

nd

ard

s.

Inp

uts

A

ssu

mp

tio

ns/

Ris

ks

MET

AC

Pu

blic

Fin

anci

al M

anag

emen

t A

dvi

sor

1.

Ass

um

pti

on

s:

a. T

he

cou

ntr

y au

tho

riti

es r

emai

n c

om

mit

ted

to

th

e im

ple

men

tati

on

of

the

PFM

ref

orm

age

nd

a.

b. T

he

po

litic

al c

on

dit

ion

s in

mem

ber

co

un

trie

s al

low

th

e n

orm

al d

eliv

ery

of

TA.

c. H

Q’s

TA

, bac

ksto

pp

ing

and

gu

idan

ce a

vaila

ble

in p

arti

cula

r o

n d

iagn

ost

ic a

sse

ssm

ents

, in

stit

uti

on

al f

ram

ewo

rk, a

nd

PFM

ref

orm

st

rate

gies

.

2.

Ris

ks: t

he

au

tho

riti

es

face

maj

or

chal

len

ges

in t

he

fis

cal a

rea,

mai

nly

as

a re

sult

of

rece

nt

po

litic

al, e

con

om

ic, a

nd

se

curi

ty

dev

elo

pm

ents

in t

he

regi

on

. Th

ese

dev

elo

pm

ents

may

imp

ede

the

imp

lem

enta

tio

n o

f a

com

pre

hen

sive

PFM

ref

orm

age

nd

a b

ecau

se

the

au

tho

riti

es

wo

uld

ne

ed

to

fo

cus

on

urg

en

t p

olic

y is

sue

s ra

the

r th

an o

n m

ediu

m-t

erm

ori

en

ted

fis

cal s

tru

ctu

ral r

efo

rms.

Sho

rt-t

erm

exp

erts

HQ

-bas

ed d

iagn

ost

ic m

issi

on

s an

d

bac

ksto

pp

ing

Ou

tpu

ts

TA r

epo

rts

Dra

ft r

egu

lati

on

s an

d m

anu

als

Han

ds-

on

tra

inin

g C

ou

ntr

y w

ork

sho

ps

Reg

ion

al w

ork

sho

ps

and

sem

inar

s o

n

bu

dge

t p

rep

arat

ion

, acc

ou

nti

ng

and

in

tern

al c

on

tro

l an

d a

ud

it

69

4.

Re

ven

ue

Ad

min

istr

atio

n

Ou

tco

me

s In

dic

ato

rs f

or

en

d-F

Y2

01

5

AFG

Egypt

Iraq

Jordan

Lebanon

Libya

Sudan

Syria

WBG

Yemen

1. M

ore

eff

icie

nt

and

eff

ecti

ve o

rgan

izat

ion

al

stru

ctu

res.

1

.1 In

tegr

ated

fu

nct

ion

-bas

ed H

Q.

1

.2 E

stab

lish

ed la

rge

taxp

ayer

s' o

ffic

es (

LTO

.)

2. S

trea

mlin

ed a

nd

au

tom

ated

op

erat

ion

s.

2.1

En

han

ced

reg

istr

atio

n s

yste

m w

ith

un

iqu

e Ta

x Id

enti

fica

tio

n

Nu

mb

er (

TIN

).

2

.2 E

ffec

tive

co

mp

ute

rize

d IT

AS.

2

.3 S

tre

amlin

ed

fili

ng

and

pay

men

t p

roce

du

res

3. S

tren

gth

ened

sel

f-as

sess

men

t an

d r

isk-

bas

ed

com

plia

nce

. 3

.1 M

ove

fro

m a

dm

inis

trat

ive

to s

elf-

asse

ssm

ent

syst

ems.

3

.2 In

cre

ase

d c

om

plia

nce

rat

es.

3

.3 In

cre

ase

d c

olle

ctio

n r

ate

s.

4. E

nh

ance

d t

ax s

yste

ms.

4

.1 In

tro

du

ctio

n o

f V

AT.

4

.2 E

nac

tmen

t o

f a

tax

pro

ced

ure

s co

de

(TP

C).

4

.3 S

imp

lifie

d r

egi

me

fo

r sm

all t

axp

aye

rs.

5. M

ore

eff

ecti

ve c

ust

om

s ad

min

istr

atio

n.

5.1

Red

uce

d p

re-c

lear

ance

.

5

.2 In

crea

sed

ris

k-b

ased

po

st-c

lear

ance

.

Inp

uts

A

ssu

mp

tio

ns/

Ris

ks

Res

iden

t A

dvi

sor

in R

even

ue

Ad

min

istr

atio

n.

1.

Suff

icie

nt

ow

ne

rsh

ip o

f re

form

s b

y th

e c

ou

ntr

y au

tho

riti

es.

2

. Su

ffic

ien

t fu

nd

ing

by

MET

AC

fo

r TA

act

ivit

ies.

3

. C

om

ple

men

tary

HQ

an

d o

ther

do

no

rs' T

A is

ava

ilab

le.

4.

Po

litic

al/s

ecu

rity

co

nd

itio

ns

in m

em

be

r co

un

trie

s al

low

fo

r TA

del

iver

y an

d r

efo

rms'

imp

lem

enta

tio

n.

5.

Suff

icie

nt

fun

din

g b

y th

e co

un

try

auth

ori

tie

s an

d o

ther

do

no

rs f

or

nee

ded

res

ou

rce

s.

Sho

rt-t

erm

exp

erts

.

HQ

-bas

ed d

iagn

ost

ic m

issi

on

s.

Ou

tpu

ts

TA r

epo

rts.

Dra

ft la

ws,

re

gula

tio

ns,

man

ual

s.

Han

ds-

on

tra

inin

g.

Co

un

try

wo

rksh

op

s.

Reg

ion

al w

ork

sho

ps

and

se

min

ars.

70

ANNEX III: WORK PLAN FOR FY 2014

71

 

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Re

gio

nal

Act

ivit

ies

Ban

kin

g Su

per

visi

on

Ban

kin

g su

per

viso

rs in

th

e re

gio

n

hav

e a

bet

ter

un

der

stan

din

g o

f th

e la

test

pra

ctic

es a

nd

sta

nd

ard

s o

n b

anki

ng

sup

ervi

sio

n a

nd

d

evel

op

th

eir

sup

ervi

sory

ski

lls

and

cap

abili

ties

acc

ord

ingl

y

Mac

ro

pru

den

tial

Su

per

visi

on

an

d F

inan

cial

St

abili

ty

Trai

nin

g

Oct

.13

1

.5

0.5

0

.5

2.5

Is

lam

ic

Ban

kin

g Tr

ain

ing

M

ar.1

4

1.5

0

.5

0.5

2

.5

Pu

blic

Fin

anci

al

Man

agem

ent

Bet

ter

un

der

stan

din

g o

f b

ud

get

exec

uti

on

an

d r

epo

rtin

g in

co

mp

lian

ce w

ith

inte

rnat

ion

al

stan

dar

ds

W

ork

sho

p o

n

Trea

sury

R

efo

rms

Reg

ion

al

Wo

rksh

op

Ju

l.13

1

0

.5

1

2.5

Bet

ter

un

der

stan

din

g o

f m

ult

i-ye

ar s

pen

din

g p

rogr

ams

acro

ss

line

min

istr

ies

and

sp

end

ing

agen

cies

M

ediu

m T

erm

B

ud

get

Fram

ewo

rk

Reg

ion

al

Wo

rksh

op

Ja

n.1

4

1

0.5

1

2

.5

72

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Rev

enu

e A

dm

inis

trat

ion

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce

Man

agem

ent

  A

ud

it t

ren

ds

of

larg

e ta

xpay

ers

Reg

ion

al W

ork

sho

p

Sep

.13

2

0

.5

1

3.5

Stre

amlin

ed a

nd

au

tom

ated

o

per

atio

ns

Info

rmat

ion

Sy

stem

s:

chal

len

ges

&

op

po

rtu

nit

ies

for

tax

adm

inis

trat

ion

Reg

ion

al W

ork

sho

p

Feb

.14

2

0

.5

1

3.5

Stat

isti

cs

Imp

rove

d r

epo

rtin

g o

f th

e In

tern

atio

nal

Res

erve

s Te

mp

late

Reg

ion

al

wo

rksh

op

on

In

tern

atio

nal

R

eser

ves

Tem

pla

te

Trai

nin

g o

n

con

cep

ts o

f in

tern

atio

nal

re

serv

es a

nd

re

po

rtin

g o

f th

e te

mp

late

.

Jun

.13

1

1

-

2

Imp

rove

d c

om

pila

tio

n o

f B

OP

St

atis

tics

Reg

ion

al

wo

rksh

op

on

th

e o

per

atio

n

of

an IT

RS.

Trai

nin

g o

n t

he

gen

eral

eco

no

my

and

pra

ctic

al

op

erat

ion

of

an

ITR

S.

Oct

.13

1

0

.5

0.5

2

Re

gio

nal

Act

ivit

ies

Tota

l

11

4

.5

5.5

2

1

73

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

2

01

4

Ou

tpu

t(s)

Te

nta

tive

D

ate

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Afg

han

ista

n

Ban

kin

g Su

per

visi

on

DA

B h

as a

n e

nh

ance

d r

isk-

focu

sed

su

per

viso

ry f

ram

ewo

rk t

hat

ad

dre

sses

w

eak

and

pro

ble

m b

anks

in a

n

effe

ctiv

e m

ann

er

New

En

forc

emen

t Fr

amew

ork

im

ple

men

ted

by

end

FY2

01

4

Follo

w-u

p

and

tra

inin

g o

n N

ew

Enfo

rcem

ent

Fram

ewo

rk

revi

sed

dra

ft

Enfo

rcem

ent

Man

ual

Oct

.13

1

1

.5

- 2

.5

DA

B h

as a

n u

pd

ated

reg

ula

tory

fr

amew

ork

th

at e

stab

lish

es r

elev

ant

limit

s an

d a

deq

uat

e st

and

ard

s fo

r th

e co

nd

uct

of

ban

kin

g o

per

atio

ns

in li

ne

wit

h b

est

pra

ctic

es a

nd

wit

h B

asel

p

rin

cip

les

for

effe

ctiv

e b

anki

ng

sup

ervi

sio

n

New

act

ion

pla

n

for

Stre

ngt

hen

ing

Ban

kin

g Su

per

visi

on

ap

pro

ved

by

DA

B

by

Dec

emb

er 2

01

3

Fin

aliz

e A

ctio

n p

lan

fo

r St

ren

gth

enin

g B

anki

ng

Sup

ervi

sio

n

Act

ion

pla

n

for

Stre

ngt

hen

ing

ban

kin

g su

per

visi

on

Jun

.13

1

1

.5

- 2

.5

Pu

blic

Fin

anci

al

Man

agem

ent

A t

op

-do

wn

, mu

lti-

year

bu

dge

t p

rep

arat

ion

pro

cess

is a

do

pte

d.

Bu

dge

t ci

rcu

lar

incl

ud

es a

mac

ro-

fisc

al f

ram

ewo

rk

and

rev

enu

es

fore

cast

ing

pre

par

ed b

y th

e m

acro

-fis

cal u

nit

. (D

ecem

ber

20

13

)

Cap

acit

y b

uild

ing

of

the

mac

ro-

fisc

al u

nit

Set

of

cap

acit

y b

uild

ing

acti

viti

es

incl

ud

ing

sem

inar

s an

d

wo

rksh

op

s to

th

e m

acro

-fi

scal

un

it

Au

g.1

3

1

1.5

1

.5

4

Imp

rove

d P

FM s

yste

m (

mea

sure

d

thro

ugh

inte

rnat

ion

ally

rec

ogn

ized

d

iagn

ost

ic t

oo

ls, s

uch

as

PEF

A)

PFM

ref

orm

st

rate

gy a

nd

ac

tio

n p

lan

s u

pd

ated

. (M

ar

20

14

)

FAD

/ M

ETA

C

follo

w-u

p

mis

sio

n o

n

PFM

as

sess

men

t

Ass

essm

ent

of

pro

gres

s re

late

d t

o

PFM

ref

orm

Mar

.14

1

1

.5

- 2

.5

74

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

2

01

4

Ou

tpu

t(s)

Te

nta

tive

D

ate

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Rev

enu

e A

dm

inis

trat

ion

St

ren

gth

ened

sel

f-as

sess

men

t an

d r

isk-

bas

ed c

om

plia

nce

Man

agem

ent

Imp

rove

d

com

plia

nce

m

anag

emen

t o

f la

rge

taxp

ayer

s

Stre

ngt

hen

LT

O

op

erat

ion

s TA

Rep

ort

Ja

n.1

4

1

1

1.5

3

.5

Stat

isti

cs

Exte

rnal

sta

tist

ics

- B

ette

r es

tim

ates

of

DI f

low

s an

d

sto

cks

- Th

e q

ual

ity

of

dat

a co

llect

ed v

ia t

he

ITR

S h

as im

pro

ved

-

BO

P s

tati

stic

s ar

e o

f su

ffic

ien

t q

ual

ity

for

incl

usi

on

in I

MF

pu

blic

atio

ns

- P

ub

licat

ion

of

the

IIP (

end

FY2

01

4)

- Im

pro

ved

co

vera

ge o

f cu

rren

t an

d c

apit

al

tran

sfer

s (e

nd

FY

20

14

) -

Imp

lem

enta

tio

n

of

an F

DI s

urv

ey

(en

d F

Y20

14

Imp

rove

men

t o

f B

OP

st

atis

tics

an

d

dev

elo

pm

ent

of

an II

P

Mis

sio

n r

epo

rt

Jun

.13

1

1

-

2

Mis

sio

n r

epo

rt

Ap

r.1

4

1

2

_ 3

Pri

ce s

tati

stic

s •

Furt

her

imp

rove

th

e C

PI

• D

evel

op

a P

PI

• D

evel

op

imp

ort

an

d e

xpo

rt p

rice

in

dic

es

• D

etai

led

item

d

escr

ipti

on

s an

d

sam

ple

sel

ecti

on

ge

ogr

aph

ic a

reas

, o

utl

ets,

an

d it

ems

revi

ewed

. •

Pla

ns

pre

par

ed

for

dev

elo

pin

g a

PP

I an

d p

rice

in

dic

es f

or

exte

rnal

tra

de

• Im

pro

vin

g co

mp

ilati

on

o

f th

e C

PI

• P

rep

arin

g th

e co

mp

ilati

on

o

f a

PP

I an

d

of

exte

rnal

tr

ade

ind

ices

Mis

sio

n r

epo

rt

Oct

.13

1

0

2

3

Afg

han

ista

n T

ota

l

8

10

5

2

3

75

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Egyp

t

Ban

kin

g Su

per

visi

on

The

CB

E h

as a

str

on

g re

gula

tory

an

d

sup

ervi

sory

fra

mew

ork

th

at is

in li

ne

wit

h t

he

late

st B

asel

pri

nci

ple

s o

n

ban

kin

g su

per

visi

on

incl

ud

ing

Bas

el II

an

d B

asel

III.

SREP

Man

ual

ad

op

ted

by

CB

E b

y en

d F

Y20

14

Dev

elo

p a

m

anu

al f

or

Sup

ervi

sory

R

evie

w a

nd

Ev

alu

atio

n

Pro

cess

(S

REP

)

Dra

ft S

REP

M

anu

al

Se

p.1

3

0.5

1

1

2

.5

Pu

blic

Fin

anci

al

Man

agem

ent

Ove

rall

syst

ems

of

inte

rnal

co

ntr

ols

(i

ncl

ud

ing

inte

rnal

au

dit

) an

d a

cco

un

tin

g an

d r

epo

rtin

g ar

e co

nsi

sten

t w

ith

in

tern

atio

nal

ly a

ccep

ted

sta

nd

ard

s.

Act

ion

pla

ns,

d

evel

op

ed a

nd

ap

pro

ved

by

MO

F,

to s

up

po

rt t

he

imp

lem

enta

tio

n o

f P

FM r

efo

rms

on

in

tern

al c

on

tro

l. (F

eb 2

01

4)

TA m

issi

on

o

n

pre

ven

tive

an

d

det

ecti

ve

con

tro

ls o

ver

pay

men

ts

acro

ss

Acc

ou

nti

ng

Un

its

Car

ry-o

ut

a st

ud

y o

n h

ow

to

dev

elo

p

ow

n f

inan

cial

co

ntr

ol i

n li

ne

agen

cies

(re

f.

Law

No

. 12

7

of

19

81

)

Au

g.1

3

1

2

2

5

Cas

h m

anag

emen

t an

d c

om

mit

men

t co

ntr

ols

fu

nct

ion

s ar

e co

nsi

sten

t w

ith

in

tern

atio

nal

ly a

ccep

ted

sta

nd

ard

s

Act

ion

pla

n

dev

elo

ped

an

d

app

rove

d b

y M

OF

to s

up

po

rt

imp

lem

enta

tio

n o

f P

FM r

efo

rms

on

ca

sh m

anag

emen

t an

d c

om

mit

men

ts

con

tro

ls (

Dec

2

01

3)

FAD

/ M

ETA

C

follo

w-u

p

mis

sio

n o

n

PFM

as

sess

men

t

Ad

van

cin

g TS

A

and

cas

h

man

agem

ent

refo

rms

Oct

.13

1

2

-

3

76

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Rev

enu

e A

dm

inis

trat

ion

Enh

ance

d t

ax s

yste

ms

Dra

ft T

PC

d

evel

op

ed w

ith

in 6

m

on

ths

afte

r TA

Sup

po

rt

dev

elo

pm

ent

of

TPC

TA

Rep

ort

N

ov.

13

1

1

1

.5

3.5

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce M

anag

emen

t

Imp

rove

d a

ud

it

met

ho

ds

&

tech

niq

ues

Stre

ngt

hen

ri

sk-b

ased

au

dit

fo

r sp

ecif

ic

sect

ors

TA R

epo

rt

Feb

.14

1

1

1

.5

3.5

Mo

re e

ffec

tive

cu

sto

ms

adm

inis

trat

ion

D

epen

den

t u

po

n

reco

mm

end

atio

ns

mad

e

Sup

po

rt

cust

om

s TA

Rep

ort

M

ay 1

3

1

1

1.5

3

.5

Stat

isti

cs

Exte

rnal

Sta

tist

ics

- Th

e D

I su

rvey

has

bee

n c

on

du

cted

, an

d

the

resu

lts

hav

e b

een

pu

blis

hed

. Egy

pt

effe

ctiv

ely

par

tici

pat

es in

th

e C

DIS

-

The

qu

alit

y o

f m

erch

and

ise

trad

e st

atis

tics

an

d o

f fl

ow

s an

d s

tock

s o

f th

e p

riva

te s

ecto

r’s

EXD

has

imp

rove

d;

rem

itta

nce

s d

ata

are

colle

cted

by

cou

ntr

y o

f o

rigi

n

- S

tati

stic

s ar

e co

nsi

sten

t w

ith

NA

-

The

BO

P a

nd

th

e II

P a

re c

om

pile

d

acco

rdin

g to

BP

M6

met

ho

do

logy

- M

on

etar

y, II

P,

and

EX

D s

tati

stic

s ar

e co

nsi

sten

t.

(en

d-S

epte

mb

er

20

13

) -

The

resu

lts

of

the

DI s

urv

ey a

re

pu

blis

hed

(en

d-

20

13

)

Inte

rsec

tora

l co

nsi

sten

cy

of

exte

rnal

st

atis

tics

Mis

sio

n r

epo

rt

Jul.1

3

1

2

- 3

Rev

iew

ing

resu

lts

of

the

DI s

urv

ey

Mis

sio

n r

epo

rt

Sep

.13

1

2

-

3

Egyp

t To

tal

7

.5

12

7

.5

27

77

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Iraq

Ban

kin

g Su

per

visi

on

CB

I su

per

viso

rs h

ave

a th

oro

ugh

u

nd

erst

and

ing

of

the

ban

kin

g re

gula

tio

ns

and

po

sses

s th

e n

eces

sary

ski

lls t

o

per

form

an

eff

ecti

ve o

nsi

te a

nd

off

site

su

per

visi

on

of

ban

ks o

per

atin

g in

Iraq

.

Trai

nin

g o

n

Mis

cella

neo

us

Bas

el

Req

uir

emen

ts

Trai

nin

g

Jan

.14

0

.5

1

- 1

.5

Pu

blic

Fin

anci

al

Man

agem

ent

Bu

dge

t cl

assi

fica

tio

n is

imp

rove

d a

nd

p

erm

its

a b

ette

r tr

acki

ng

of

exp

end

itu

res

acco

rdin

g to

th

e C

OFO

G.

Bu

dge

t d

epar

tmen

t h

as p

rep

ared

a

guid

e ex

pla

inin

g h

ow

to

use

th

e fu

nct

ion

al

clas

sifi

cati

on

. (Ja

n

20

14

)

TA m

issi

on

on

fu

nct

ion

al

clas

sifi

cati

on

C

OFO

G

Ass

ista

nce

in

ado

pti

ng

a n

ew

fun

ctio

nal

cl

assi

fica

tio

n

com

plia

nt

wit

h C

OFO

G

Jun

.13

1

1

1

3

The

bu

dge

t cy

cle

is s

trea

mlin

ed in

lin

e w

ith

inte

rnat

ion

al g

oo

d p

ract

ice

wit

h t

he

intr

od

uct

ion

of

a so

un

d a

nd

pra

ctic

al

new

PFM

law

Fin

al P

FM d

raft

is

sub

mit

ted

to

ca

bin

et (

Dec

emb

er

20

13

)

Rev

iew

of

PFM

dra

ft

Law

Rev

ised

PFM

d

raft

Law

Ju

n.1

3

1

1

- 2

Iraq

To

tal

2

.5

3

1

6.5

78

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Jord

an

Ban

kin

g Su

per

visi

on

The

CB

J h

as a

ris

k-fo

cuse

d a

nd

eff

ecti

ve

off

site

su

per

viso

ry f

ram

ewo

rk, i

ncl

ud

ing

a go

od

an

d w

ell f

un

ctio

nin

g EW

S

Dev

elo

p a

h

isto

rica

l d

atab

ase

for

all

ban

ks g

oin

g b

ack

at le

ast

5 y

ears

on

a

qu

arte

rly

bas

is

by

end

Sep

. 13

Rev

iew

H

isto

rica

l D

atab

ase

for

EWS

TA R

epo

rt

Ju

l.13

0

.5

1

1

2.5

An

act

ion

pla

n f

or

dev

elo

pin

g th

e fi

nan

cial

sta

bili

ty

fram

ewo

rk

ado

pte

d b

y en

d

Dec

emb

er 2

01

3

Dev

elo

pin

g Fi

nan

cial

St

abili

ty

Fram

ewo

rk

TA R

epo

rt

Ju

n.1

3

0.5

1

1

2

.5

The

CB

J h

as a

reg

ula

tory

fra

mew

ork

th

at is

in li

ne

wit

h t

he

late

st s

tan

dar

ds

issu

ed b

y B

asel

co

mm

itte

e o

n c

apit

al,

leve

rage

an

d li

qu

idit

y.

- Q

uan

tita

tive

im

pac

t St

ud

y an

d

regu

lati

on

s o

n

Bas

el II

I are

issu

ed

by

Ap

r.1

4

Ass

ist

in

revi

sio

n o

f Q

IS

on

Bas

el II

I

TA R

epo

rt

N

ov.

13

1

1

-

2

79

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Pu

blic

Fin

anci

al

Man

agem

ent

The

mo

nit

ori

ng

of

the

sto

ck o

f ar

rear

s is

im

pro

ved

as

wel

l as

the

com

mit

men

t co

ntr

ol m

od

ule

in G

FMIS

.

Act

ion

pla

n

dev

elo

ped

an

d

app

rove

d b

y M

OF

to s

up

po

rt

imp

lem

enta

tio

n o

f P

FM r

efo

rms

on

ca

sh m

anag

emen

t an

d c

om

mit

men

ts

con

tro

ls (

July

2

01

3)

FAD

/ M

ETA

C

sto

ck t

akin

g m

issi

on

Full

FAD

/

MET

AC

m

issi

on

on

P

FM

asse

ssm

ent

May

13

1

2

-

3

A C

om

mit

men

t C

on

tro

l Sys

tem

(C

CS)

is

incl

ud

ed in

th

e G

FMIS

to

reg

iste

r, r

epo

rt

and

acc

ou

nt

for

exp

end

itu

re

com

mit

men

ts a

gain

st c

ash

allo

cati

on

s

Imp

lem

enta

tio

n

pla

n t

o in

tro

du

ce

a C

CS

is a

pp

rove

d

by

MO

F (M

arch

2

01

4)

TA m

issi

on

on

C

CS

Ass

ista

nce

in

esta

blis

hin

g a

rep

ort

ing

syst

em t

o

rep

ort

sto

cks

of

arre

ars

qu

arte

rly,

an

d

assi

stan

ce in

am

end

ing

the

com

mit

men

t co

ntr

ol

mo

du

le in

G

FMIS

to

cap

q

uar

terl

y ex

pen

dit

ure

co

mm

itm

ents

Au

g.1

3

1

1.5

1

.5

4

80

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Rev

enu

e A

dm

inis

trat

ion

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce M

anag

emen

t Im

pro

ved

Ta

xpay

er R

egis

ter

Stre

ngt

hen

B

usi

nes

s A

ctiv

ity

Cla

ssif

icat

ion

(B

AC

) in

Ta

xpay

er

Reg

iste

r

TA R

epo

rt

Jun

.13

1

1

1

.5

3.5

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce M

anag

emen

t

Imp

rove

d V

AT

com

plia

nce

rat

es

and

ref

un

ds

pra

ctic

es

Stre

ngt

hen

VA

T o

per

atio

ns

&

refu

nd

s TA

Rep

ort

Se

p.1

3

1

1

1.5

3

.5

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce M

anag

emen

t

Imp

rove

d a

ud

it

met

ho

ds

&

tech

niq

ues

Stre

ngt

hen

ris

k-b

ased

au

dit

fo

r sp

ecif

ic s

ecto

rs

TA R

epo

rt

Feb

.14

1

1

1

3

Stat

isti

cs

Nat

ion

al A

cco

un

ts

• Im

pro

ved

co

mp

ilati

on

of

ann

ual

NA

, b

ased

on

ass

um

pti

on

s co

nsi

sten

t w

ith

th

e cu

rren

t re

alit

y o

f th

e Jo

rdan

ian

ec

on

om

y •

As

a ca

scad

ing

effe

ct, i

mp

rove

men

ts

in t

he

qu

alit

y o

f q

uar

terl

y N

A

• R

egu

lar

pro

du

ctio

n o

f SU

Ts

• U

pd

atin

g th

e b

ase

year

usi

ng

20

11

su

rvey

dat

a b

y en

d-F

Y20

14

•

The

SUTs

fo

r 2

01

0 c

om

ple

ted

b

y en

d-F

Y20

14

Follo

w u

p o

n

the

imp

lem

enta

tio

n

of

a n

ew b

ase

year

an

d

fin

aliz

atio

n o

f 2

01

0 S

UTs

.

Mis

sio

n

rep

ort

Se

p.1

3

1

_ 2

3

81

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Exte

rnal

sta

tist

ics

• Im

pro

ved

co

vera

ge o

f th

e ex

tern

al

asse

ts o

f th

e p

riva

te, n

on

-ban

k se

cto

r •

The

com

pila

tio

n o

f re

mit

tan

ces

dat

a h

as b

een

fu

rth

er im

pro

ved

•

EXD

sta

tist

ics

are

fully

co

nsi

sten

t w

ith

in

tern

atio

nal

sta

nd

ard

s •

The

BO

P a

nd

IIP

co

mp

ilati

on

sys

tem

h

ave

bee

n u

pd

ated

to

imp

lem

ent

B

PM

6

Pu

blic

EX

D is

b

ased

on

th

e n

on

resi

den

t st

atu

s o

f th

e h

old

ers

rath

er t

han

on

cu

rren

cy o

f d

eno

min

atio

n o

f th

e lia

bili

ties

.

Imp

rovi

ng

BO

P,

IIP

an

d E

XD

st

atis

tics

.

Mis

sio

n

rep

ort

M

ar.1

4

1

2

- 3

Jord

an T

ota

l

9

11

.5

9.5

3

0

82

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Leb

ano

n

Ban

kin

g Su

per

visi

on

The

BD

L an

d t

he

BC

CL

hav

e an

u

pd

ated

EW

S th

at e

nh

ance

s th

e su

per

viso

ry a

nd

reg

ula

tory

fr

amew

ork

.

-A

fra

mew

ork

fo

r EW

S an

d f

or

Fin

anci

al

Stab

ility

is

agre

ed u

po

n

bet

wee

n B

DL

and

BC

CL

by

Ap

r.1

4

Ass

ist

in t

he

imp

lem

enta

tio

n

of

the

EWS

TA R

epo

rt

Se

p.1

3

0.5

1

1

2

.5

The

BC

CL

has

an

en

han

ced

re

gula

tory

an

d s

up

ervi

sory

fr

amew

ork

, in

clu

din

g im

pro

ved

loan

cl

assi

fica

tio

n a

nd

pro

visi

on

ing

rule

s,

man

ual

s to

su

per

vise

no

n-b

ank

fin

anci

al in

stit

uti

on

s, a

nd

in

tro

du

cin

g su

per

viso

ry c

olle

ges

to

ove

rsee

cro

ss-b

ord

er a

ctiv

itie

s o

f th

e la

rges

t b

anks

A s

up

ervi

sory

co

llege

fo

r su

per

visi

ng

acti

viti

es o

f la

rge

ban

ks is

es

tab

lish

ed b

y en

d F

Y20

14

Ass

ist

in c

ross

b

ord

er

sup

ervi

sio

n o

f la

rge

ban

ks

TA R

epo

rt

Ju

l.13

0

.5

1

1

2.5

The

BC

CL

has

an

en

han

ced

regu

lato

ry a

nd

su

per

viso

ry

fram

ewo

rk t

hat

co

mp

lies

to t

he

larg

est

exte

nt

po

ssib

le w

ith

th

e

Bas

el c

ore

pri

nci

ple

s fo

r ef

fect

ive

ban

kin

g su

per

visi

on

.

- M

anu

al f

or

sup

ervi

sio

n o

f n

on

-ban

k fi

nan

cial

in

stit

uti

on

s (N

BFI

s) is

ap

pro

ved

by

BC

CL

in J

un

.13

-M

anu

al is

im

ple

men

ted

by

end

FY2

01

4

Rev

iew

an

d

Fin

aliz

atio

n o

f M

anu

al f

or

NB

FIs

Man

ual

May

13

0

.5

1

1

2.5

Pilo

t Te

st t

he

new

Man

ual

O

n-t

he-

job

Tr

ain

ing

Jun

.13

0

.5

- 1

.5

2

Trai

nin

g o

n

Man

ual

Tr

ain

ing

Ju

l.13

0

.5

- 1

1

.5

83

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Pu

blic

Fin

anci

al

Man

agem

ent

The

bu

dge

t cy

cle

is s

trea

mlin

ed in

lin

e w

ith

inte

rnat

ion

al g

oo

d p

ract

ice

wit

h t

he

intr

od

uct

ion

of

a so

un

d a

nd

p

ract

ical

new

bu

dge

t sy

stem

law

(B

SL)

Fin

al B

SL d

raft

is

sub

mit

ted

to

ca

bin

et.

(Dec

emb

er

20

13

)

Cap

acit

y b

uild

ing

of

MO

F an

d

oth

er G

OL

agen

cies

on

law

an

d r

egu

lati

on

s

Set

of

cap

acit

y b

uild

ing

acti

viti

es

incl

ud

ing

sem

inar

s an

d

wo

rksh

op

s to

th

e d

iffe

ren

t st

akeh

old

ers

(MO

F, C

OA

, M

Ps,

Sta

te

Co

un

cil…

)

Jul.1

3

1

1.5

1

.5

4

The

bu

dge

t cy

cle

is s

trea

mlin

ed in

lin

e w

ith

inte

rnat

ion

al g

oo

d p

ract

ice

wit

h t

he

intr

od

uct

ion

of

a so

un

d a

nd

p

ract

ical

new

bu

dge

t sy

stem

law

(B

SL)

Fin

al B

SL d

raft

is

sub

mit

ted

to

ca

bin

et.

(Dec

emb

er

20

13

)

Rev

iew

dra

ft o

f th

e b

ud

get

syst

em la

w

Dia

gno

stic

re

view

of

the

bu

dge

t sy

stem

, it

s fi

scal

in

stit

uti

on

s,

and

dec

isio

n-

mak

ing

pro

cess

es

No

v.1

3

1

1

1

3

Rev

enu

e A

dm

inis

trat

ion

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ri

sk-b

ased

co

mp

lian

ce M

anag

emen

t

Imp

rove

d V

AT

refu

nd

s p

ract

ices

Stre

ngt

hen

VA

T re

fun

ds

TA R

epo

rt

Jul.1

3

1

1

1

3

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ri

sk-b

ased

co

mp

lian

ce M

anag

emen

t

Imp

rove

d L

TO

com

plia

nce

ra

tes

Stre

ngt

hen

LTO

o

per

atio

ns

TA R

epo

rt

Oct

.13

1

1

1

.5

3.5

84

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ri

sk-b

ased

co

mp

lian

ce M

anag

emen

t

Imp

rove

d a

ud

it

met

ho

ds

&

tech

niq

ues

Stre

ngt

hen

ris

k-b

ased

au

dit

fo

r sp

ecif

ic s

ecto

rs

TA R

epo

rt

Ap

r.1

4

1

1

1

3

Mo

re e

ffec

tive

cu

sto

ms

adm

inis

trat

ion

Im

pro

ved

ris

k-b

ased

cle

aran

ce

Stre

ngt

hen

va

luat

ion

sys

tem

an

d r

isk

man

agem

ent

at

cust

om

s

TA R

epo

rt

Jun

.13

1

1

1

.5

3.5

Mo

re e

ffic

ien

t an

d e

ffec

tive

o

rgan

izat

ion

al s

tru

ctu

res

Dev

elo

pm

ent

of

inte

grat

ed

syst

ems

&

pro

ced

ure

s

Follo

w-u

p v

isit

s to

su

pp

ort

in

tegr

atio

n

pro

cess

Tech

nic

al

Rep

ort

A

pr.

14

1

2

_

3

Stat

isti

cs

Exte

rnal

sta

tist

ics

- Th

e D

I su

rvey

is c

on

du

cted

on

a

regu

lar

bas

is (

at le

ast

ever

y o

ther

ye

ar).

-

Dat

a fr

om

th

e G

ener

al S

ecu

rity

are

av

aila

ble

fo

r es

tim

atin

g tr

avel

se

rvic

es.

- In

th

e IT

RS,

tr

ansa

ctio

ns

bel

ow

th

e th

resh

old

are

re

po

rted

as

glo

bal

fig

ure

s.

Imp

rovi

ng

BO

P

and

IIP

sta

tist

ics.

M

issi

on

rep

ort

Ju

l.13

1

1

_

2

85

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

- II

P s

tate

men

ts a

re c

om

pile

d a

nd

p

ub

lish

ed o

n a

reg

ula

r b

asis

(at

leas

t an

nu

ally

).

- B

OP

an

d II

P s

tati

stic

s ar

e co

mp

iled

in

acc

ord

ance

wit

h B

PM

6

met

ho

do

logy

.

- D

I su

rvey

of

fin

anci

al

inst

itu

tio

ns

com

ple

ted

. -

IIP

co

mp

iled

an

d p

ub

lish

ed.

Rev

iew

ing

resu

lts

of

the

DI

surv

ey o

f fi

nan

cial

in

stit

uti

on

s.

Mis

sio

n r

epo

rt

Dec

.13

0

.5

1

_ 1

.5

Nat

ion

al A

cco

un

ts

- Th

e su

rvey

s n

eed

ed f

or

the

com

pila

tio

n o

f N

A a

re c

on

du

cted

p

erio

dic

ally

. -

In li

ne

wit

h in

tern

atio

nal

sta

nd

ard

s,

sust

ain

able

co

mp

ilati

on

of

ann

ual

N

A a

t cu

rren

t an

d c

on

stan

t p

rice

s b

y p

rod

uct

ion

an

d e

xpen

dit

ure

has

b

een

dev

elo

ped

.

-CA

S is

off

icia

lly

in c

har

ge o

f th

e co

mp

ilati

on

of

NA

. -

Sust

ain

able

u

nit

est

ablis

hed

w

ith

in C

AS

for

com

pila

tio

n o

f N

A.

- C

AS

rece

ives

d

ata

nee

ded

fo

r th

e co

mp

ilati

on

o

f N

A f

rom

th

e M

OF

and

th

e M

inis

try

of

Mu

nic

ipal

itie

s an

d u

ses

the

dat

a in

co

mp

lian

ce w

ith

th

e d

etai

led

gu

idel

ines

p

rovi

ded

by

the

July

20

10

m

issi

on

.

Imp

rovi

ng

co

mp

ilati

on

of

NA

M

issi

on

rep

ort

N

ov.

13

1

_

2

3

Leb

ano

n T

ota

l

12

1

3.5

1

5

40

.5

86

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Lib

ya

Ban

kin

g Su

per

visi

on

The

CB

L h

as a

n a

deq

uat

e le

vel o

f su

per

viso

ry r

etu

rns

that

allo

w f

or

effe

ctiv

e su

per

visi

on

of

ban

ks’ a

ctiv

itie

s an

d m

on

ito

rin

g o

f th

eir

fin

anci

al

per

form

ance

-B

asic

su

per

viso

ry

retu

rns

are

revi

ewed

an

d

issu

ed b

y C

BL

by

Ap

r.1

4

Rev

iew

Bas

ic

Sup

ervi

sory

R

etu

rns

Dra

ft

tem

pla

tes

for

bas

ic

sup

ervi

sory

re

turn

s

Jun

.13

1

1

-

2

The

CB

L h

as a

go

od

reg

ula

tory

an

d

sup

ervi

sory

fra

mew

ork

fo

r su

per

visi

ng

the

Isla

mic

ban

kin

g ac

tivi

ties

in t

he

Lib

yan

fin

anci

al s

ecto

r.

- S

om

e n

ew

Isla

mic

Ban

kin

g C

ircu

lars

are

is

sued

by

Ap

r. 1

4

Dra

ft Is

lam

ic

Ban

kin

g R

egu

lati

on

s

Dra

ft

Reg

ula

tio

ns

Se

p.1

3

1

1

- 2

Pu

blic

Fin

anci

al

Man

agem

ent

An

imp

rove

d a

cco

un

tin

g fr

amew

ork

ca

pab

le o

f, a

mo

ng

oth

ers,

cla

ssif

yin

g an

d r

epo

rtin

g in

form

atio

n in

a m

ann

er

con

sist

ent

wit

h in

tern

atio

nal

ly a

ccep

ted

st

and

ard

s

Rev

ised

cl

assi

fica

tio

n

app

rove

d b

y M

OF.

(A

pri

l 20

14

)

TA o

n b

ud

get

clas

sifi

cati

on

Ass

ista

nce

in

dev

elo

pin

g an

d

imp

lem

enti

ng

a b

ud

get

clas

sifi

cati

on

an

d C

OA

b

ased

on

G

FSM

20

01

Sep

.13

1

1

.5

1.5

4

PFM

ref

orm

str

ateg

y an

d a

ctio

n p

lan

s d

evel

op

ed

Act

ion

pla

n

app

rove

d b

y M

OF.

(Fe

b 2

01

4)

Full

FAD

/

MET

AC

mis

sio

n

on

PFM

as

sess

men

t

Full

FAD

/

MET

AC

m

issi

on

on

P

FM

asse

ssm

ent

Feb

.14

1

1

.5

1.5

4

87

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Rev

enu

e A

dm

inis

trat

ion

St

ren

gth

ened

sel

f-as

sess

men

t an

d r

isk-

bas

ed c

om

plia

nce

Man

agem

ent

Dep

end

ent

up

on

re

com

men

dat

ion

s m

ade

Follo

w-u

p v

isit

to

su

pp

ort

im

ple

men

tati

on

o

f re

form

s

Tech

nic

al

Rep

ort

M

ar.1

4

1

1

_ 2

Stat

isti

cs

Exte

rnal

sta

tist

ics

- Th

e q

ual

ity

of

BO

P h

as im

pro

ved

gr

adu

ally

, in

par

ticu

lar

rega

rdin

g re

mit

tan

ces

- A

DI s

urv

ey h

as b

een

co

nd

uct

ed

- Li

bya

co

mp

iles

and

pu

blis

hes

an

IIP

- T

he

po

pu

lati

on

o

f co

mp

anie

s to

b

e in

clu

ded

in a

DI

surv

ey h

as b

een

id

enti

fied

(en

d-

FY2

01

4)

- F

irst

ele

men

ts

of

an II

P h

ave

bee

n a

ssem

ble

d

(en

d-F

Y20

14

)

Imp

rovi

ng

BO

P

stat

isti

cs a

nd

in

itia

tin

g co

mp

ilati

on

of

an II

P

(ass

essm

ent)

Mis

sio

n

rep

ort

. Han

ds-

on

tra

inin

g o

n

IIP

co

mp

ilati

on

(p

ost

po

ned

fr

om

FY2

01

3)

May

13

1

1

_

2

Imp

rovi

ng

BO

P

stat

isti

cs a

nd

in

itia

tin

g co

mp

ilati

on

of

an II

P (

follo

w-

up

)

Mis

sio

n r

epo

rt

No

v.1

3

1

0.5

2

3

.5

Pri

ce s

tati

stic

s -

The

CP

I wei

ghts

hav

e b

een

up

dat

ed

bas

ed o

n t

he

resu

lts

of

a n

ew

ho

use

ho

ld b

ud

get

surv

ey

- Ex

pan

ded

co

vera

ge o

f th

e P

PI t

o

incl

ud

e ag

ricu

ltu

re, c

on

stru

ctio

n,

serv

ices

, an

d o

ther

act

ivit

ies

to a

lign

w

ith

th

e p

rod

uct

ion

acc

ou

nts

co

mp

iled

b

y th

e N

A s

taff

- C

ove

rage

of

the

CP

I exp

and

ed.

- C

on

tin

uo

us

tim

e se

ries

of

dat

a fo

r Tr

ipo

li-o

nly

ind

ex

avai

lab

le.

Imp

rovi

ng

CP

I co

mp

ilati

on

an

d r

esta

rtin

g co

mp

ilati

on

of

the

PP

I

Mis

sio

n r

epo

rt

No

v.1

3

1

_ 2

3

Lib

ya T

ota

l

8

7.5

7

2

2.5

88

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Sud

an

Ban

kin

g Su

per

visi

on

The

CB

OS

has

a w

ell f

un

ctio

nin

g cr

edit

re

gist

ry t

hat

is in

lin

e w

ith

inte

rnat

ion

al

stan

dar

ds

and

bes

t p

ract

ices

.

-C

IASA

o

per

atio

nal

fr

amew

ork

is

revi

sed

by

end

FY

20

14

Rev

iew

of

the

CIA

SA s

tru

ctu

re

and

Fra

mew

ork

TA

Rep

ort

M

ay 1

3

1

- 1

.5

2.5

The

CB

OS

has

an

up

dat

ed r

egu

lato

ry

fram

ewo

rk t

hat

incl

ud

es

com

pre

hen

sive

inst

ruct

ion

s an

d

guid

elin

es a

bo

ut

the

sup

ervi

sio

n o

f Is

lam

ic b

anki

ng

serv

ices

an

d p

rod

uct

s in

clu

din

g re

gula

tio

ns

abo

ut

the

mea

sure

men

t an

d m

anag

emen

t o

f liq

uid

ity

risk

an

d a

bo

ut

stre

ss t

esti

ng

pri

nci

ple

s an

d p

ract

ices

.

- C

BO

S is

sues

new

re

gula

tio

ns

on

st

ress

tes

tin

g an

d

per

form

s so

me

stre

ss t

ests

by

Ap

r.1

4

Ass

ist

in s

tres

s te

stin

g

- D

raft

R

egu

lati

on

s -

Trai

nin

g

No

v.1

3

1

1

- 2

The

CB

OS

has

eff

ecti

ve o

per

atio

nal

fr

amew

ork

s in

clu

din

g m

anu

als

for

effe

ctiv

e su

per

visi

on

ove

r Is

lam

ic b

anks

an

d a

str

on

g en

forc

emen

t fr

amew

ork

.

- C

BO

S re

view

s it

s o

nsi

te in

spec

tio

n

Ap

pro

ach

by

Ap

r.1

4

Dra

ft O

nsi

te

Insp

ecti

on

M

anu

al

- P

art

of

Insp

ecti

on

M

anu

al

Jun

.13

1

1

1

3

Follo

w-u

p o

n

Dra

ftin

g O

nsi

te

Insp

ecti

on

M

anu

al

Par

t o

f In

spec

tio

n

Man

ual

Sep

.13

1

1

1

3

Follo

w-u

p o

n

Dra

ftin

g O

nsi

te

Insp

ecti

on

M

anu

al

Par

t o

f In

spec

tio

n

Man

ual

Jan

.14

1

1

1

3

89

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Pu

blic

Fin

anci

al

Man

agem

ent

An

act

ive

cash

man

agem

ent

fun

ctio

n is

dev

elo

ped

to

iden

tify

at

the

earl

iest

op

po

rtu

nit

y te

mp

ora

ry a

nd

per

man

ent

(or

stru

ctu

ral)

cas

h s

ho

rtfa

lls s

o t

hat

the

latt

er is

eff

ecti

vely

use

d f

or

exp

end

itu

re a

dju

stm

ents

Cas

h m

anag

emen

t p

lan

s ap

pro

ved

by

the

Cab

inet

. (A

pri

l 2

01

4)

Follo

w-u

p

assi

stan

ce o

n

cash

m

anag

emen

t

Follo

w u

p

assi

stan

ce in

d

evel

op

ing

a m

od

ern

cas

h

pla

nn

ing

and

m

anag

emen

t fu

nct

ion

No

v.1

3

1

1.5

1

.5

4

A m

ediu

m t

erm

pla

n c

on

sist

ent

wit

h

the

mac

ro-f

ram

ewo

rk a

nd

inte

grat

ed

wit

h a

nn

ual

bu

dge

t al

loca

tio

ns

is

dev

elo

ped

, to

geth

er w

ith

a

com

pre

hen

sive

fin

anci

ng

pla

n w

ith

bo

th c

ash

an

d n

on

cash

fin

anci

ng

Imp

lem

enta

tio

n o

f th

e Ju

ly 2

01

2 F

AD

m

issi

on

re

com

men

dat

ion

s.

(Ap

ril 2

01

4)

FAD

/ M

ETA

C

follo

w-u

p

mis

sio

n o

n P

FM

asse

ssm

ent

Ass

essm

ent

of

pro

gres

s re

late

d t

o

PFM

ref

orm

Ap

r.1

4

1

1.5

1

.5

4

Rev

enu

e A

dm

inis

trat

ion

Stre

amlin

ed a

nd

au

tom

ated

op

erat

ion

s

Bri

ng

regi

ster

up

to

dat

e &

sim

plif

y re

gist

rati

on

p

roce

du

re

Stre

ngt

hen

re

gist

rati

on

an

d

sup

po

rt

re-

engi

nee

rin

g o

f b

usi

nes

s p

roce

sses

in

LT

O/

Med

ium

Ta

xpay

ers

Off

ice

(MTO

)

TA R

epo

rt

Sep

.13

1

1

.5

1.5

4

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce M

anag

emen

t

Dra

ft A

ud

it

man

ual

dev

elo

ped

w

ith

in s

ix m

on

ths

afte

r TA

Sup

po

rt

dev

elo

pm

ent

of

aud

it m

anu

al

TA R

epo

rt

Jan

.14

1

1

1

3

90

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Stat

isti

cs

Exte

rnal

sta

tist

ics

- Th

e D

I su

rvey

is c

on

du

cted

, an

d t

he

resu

lts

are

pu

blis

hed

. Su

dan

eff

ecti

vely

par

tici

pat

es in

th

e C

DIS

.

- C

apit

al t

ran

sfer

s ar

e id

enti

fied

an

d

reco

rded

in t

he

BO

P.

- Th

e co

mp

ilati

on

sys

tem

is a

dap

ted

to

the

new

eco

no

mic

ter

rito

ry o

f th

e

cou

ntr

y (e

.g. r

esid

ence

sta

tus

of

ban

k

acco

un

t h

old

ers,

DI r

elat

ion

ship

s w

ith

Sou

th S

ud

an).

- B

OP

an

d II

P a

re c

om

pile

d a

cco

rdin

g to

BP

M6

met

ho

do

logy

.

- D

I su

rvey

con

du

cted

.

- D

I su

rvey

res

ult

s

anal

yzed

an

d

pu

blis

hed

.

- D

ata

on

cu

rren

t

and

cap

ital

tran

sfer

s ar

e

colle

cted

.

- Es

tim

ates

of

info

rmal

tra

de

are

mad

e re

gula

rly.

Imp

lem

enta

tio

n

of

a D

I su

rvey

, tr

ain

ing

of

ded

icat

ed s

taff

Mis

sio

n r

epo

rt

Jul.1

3

1

1

_ 2

DI s

urv

ey,

revi

ew o

f re

sult

s M

issi

on

rep

ort

O

ct.1

3

0.5

2

_

2.5

Nat

ion

al A

cco

un

ts

- A

new

bas

e ye

ar h

as b

een

im

ple

men

ted

. -

Sou

rce

dat

a h

ave

imp

rove

d.

- Es

tab

lish

men

t ce

nsu

s co

nd

uct

ed.

- C

lass

ific

atio

n o

f im

po

rts

revi

ewed

Imp

rovi

ng

com

pila

tio

n o

f N

A

Mis

sio

n r

epo

rt

Jan

.14

1

_

2

3

Sud

an T

ota

l

11

.5

12

.5

12

3

6

91

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Syri

a

Ban

kin

g Su

per

visi

on

The

CB

S h

as a

n e

ffec

tive

reg

ula

tory

fr

amew

ork

th

at a

dd

ress

es t

he

mai

n

risk

s fa

ced

by

ban

ks a

nd

th

e b

anki

ng

syst

em.

Act

ion

Pla

n f

or

stre

ngt

hen

ing

ban

kin

g su

per

visi

on

an

d

TA p

rio

riti

es

app

rove

d b

y au

tho

riti

es b

y en

d

of

FY2

01

4

TA n

eed

s as

sess

men

t TA

Rep

ort

Ap

r.1

4

1

1

- 2

Pu

blic

Fin

anci

al

Man

agem

ent

Imp

rove

d P

FM s

yste

m (

mea

sure

d

thro

ugh

inte

rnat

ion

ally

rec

ogn

ized

d

iagn

ost

ic t

oo

ls, s

uch

as

PEF

A)

PFM

act

ion

pla

n

app

rove

d b

y th

e M

inis

ter

of

Fin

ance

FAD

/ M

ETA

C

follo

w-u

p

mis

sio

n o

n P

FM

asse

ssm

ent

Full

FAD

/

MET

AC

m

issi

on

on

P

FM

asse

ssm

ent

Ap

r.1

4

1

1

_ 2

Rev

enu

e A

dm

inis

trat

ion

St

ren

gth

ened

sel

f-as

sess

men

t an

d r

isk-

bas

ed c

om

plia

nce

Man

agem

ent

Dep

end

ent

up

on

re

com

men

dat

ion

s m

ade

Follo

w-u

p v

isit

to

su

pp

ort

im

ple

men

tati

on

o

f re

form

s

Tech

nic

al

Rep

ort

A

pr.

14

1

1

_

2

Stat

isti

cs

Exte

rnal

sta

tist

ics

• Th

e q

ual

ity

of

bal

ance

of

pay

men

ts

and

IIP

has

imp

rove

d g

rad

ual

ly

• B

alan

ce o

f p

aym

ents

sta

tist

ics

are

com

pile

d a

t a

hig

her

fre

qu

ency

(q

uar

terl

y)

• Ex

tern

al d

ebt

stat

isti

cs a

re s

ub

mit

ted

q

uar

terl

y to

th

e Q

EDS

dat

abas

e

Sub

mis

sio

ns

of

BO

P a

nd

IIP

dat

a h

ave

resu

med

.

Imp

rovi

ng

bal

ance

of

pay

men

ts a

nd

II

P s

tati

stic

s

Mis

sio

n r

epo

rt

14

-Ap

r 1

2

_

3

Syri

a To

tal

4

5

0

9

92

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A(M

issi

on

) ST

Ex

pe

rt

Tota

l

We

st B

ank

and

Gaz

a

Ban

kin

g Su

per

visi

on

- T

he

PM

A h

as a

new

ris

k-fo

cuse

d

on

site

insp

ecti

on

man

ual

th

at is

tailo

red

to

Th

e ri

sk p

rofi

le o

f ea

ch

ban

kin

g in

stit

uti

on

an

d t

hat

tak

es

into

co

nsi

der

atio

n T

he

late

st

dev

elo

pm

ents

in b

anki

ng

sup

ervi

sio

n.

- T

he

PM

A h

as a

new

off

site

sup

ervi

sio

n s

yste

m t

hat

en

han

ces

The

wo

rk o

f th

eir

off

site

mo

nit

ori

ng

and

an

alys

is in

ord

er t

o

com

ple

men

t Th

e ac

tivi

ties

per

form

ed a

t Th

e le

vel o

f o

nsi

te

sup

ervi

sio

n

- N

ew R

isk-

Bas

ed

Sup

ervi

sory

Fram

ewo

rk is

ado

pte

d b

y

PM

A b

y En

d

FY2

01

4

Dra

ft

On

site

In

spec

tio

n

Man

ual

- Par

t o

f D

raft

Man

ual

- Tra

inin

g

Jul.1

3

0.5

-

1.5

2

Co

nti

nu

e D

raft

ing

Sup

ervi

sory

M

anu

al

- Par

t o

f D

raft

Man

ual

Trai

nin

g

No

v.1

3

0.5

-

1.5

2

Co

nti

nu

e D

raft

ing

Sup

ervi

sory

M

anu

al

- Par

t o

f D

raft

Man

ual

Trai

nin

g

Feb

.14

0

.5

- 1

.5

2

Pu

blic

Fin

anci

al

Man

agem

ent

Imp

rove

d P

FM s

yste

m (

mea

sure

d

thro

ugh

inte

rnat

ion

ally

rec

ogn

ized

dia

gno

stic

to

ols

, su

ch a

s P

EFA

)

PFM

ref

orm

stra

tegy

an

d

acti

on

pla

ns

up

dat

ed. (

Feb

20

14

)

FAD

/

MET

AC

follo

w-u

p

mis

sio

n o

n

PFM

asse

ssm

ent

Ass

essm

ent

of

pro

gres

s

rela

ted

to

PFM

ref

orm

Jan

.14

1

-

1.5

2

.5

93

Stat

isti

cs

Exte

rnal

sta

tist

ics

- A

id-r

elat

ed t

ran

sact

ion

s ar

e

app

rop

riat

ely

clas

sifi

ed

- C

on

sist

ency

bet

wee

n B

OP

flo

ws

(cu

rren

t an

d c

apit

al a

cco

un

ts)

and

IIP

sto

cks

has

bee

n a

scer

tain

ed

- Th

e B

OP

an

d t

he

IIP

are

co

mp

iled

acco

rdin

g to

BP

M6

met

ho

do

logy

- A

n IT

RS

is b

ein

g d

evel

op

ed,

sub

ject

to

a p

osi

tive

fea

sib

ility

stu

dy

-B

OP

an

d II

P

dat

a ar

e co

nsi

sten

t.

- B

oth

tim

e se

ries

are

co

nsi

sten

t o

ver

tim

e.

- EX

D d

ata

pu

blis

hed

in a

ti

mel

y m

ann

er, w

ith

th

e ap

pro

pri

ate

bre

akd

ow

ns.

Imp

rovi

ng

BO

P a

nd

IIP

st

atis

tics

Mis

sio

n r

epo

rt

Feb

.14

1

1

_ 2

We

st B

ank

and

Gaz

a To

tal

3

.5

1

6

10

.5

94

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

Ye

men

Ban

kin

g Su

per

visi

on

The

CB

Y h

as a

n u

pd

ated

re

gula

tory

fra

mew

ork

th

at is

in

line

wit

h B

asel

co

re p

rin

cip

les

for

effe

ctiv

e b

anki

ng

sup

ervi

sio

n

- R

egu

lati

on

on

Fr

amew

ork

fo

r C

orr

ecti

ve A

ctio

n

app

rove

d b

y C

BY

by

Dec

emb

er 2

01

3

Rev

iew

an

d

Trai

nin

g o

n

Enfo

rcem

ent

Fram

ewo

rk

- D

raft

R

egu

lati

on

-

Tra

inin

g

May

13

1

1

-

2

The

CB

Y h

as a

n u

pd

ated

re

gula

tory

fra

mew

ork

th

at is

in

line

wit

h B

asel

co

re p

rin

cip

les

for

effe

ctiv

e b

anki

ng

sup

ervi

sio

n

- B

asic

Reg

ula

tio

ns

and

Rep

ort

s o

n

Isla

mic

Ban

kin

g ac

tivi

ties

issu

ed b

y en

d F

Y20

14

Isla

mic

Ban

kin

g R

egu

lati

on

s an

d

Rep

ort

s

Dra

ft

Reg

ula

tio

ns

and

R

epo

rts

Dec

.13

1

1

-

2

Pu

blic

Fin

anci

al

Man

agem

ent

An

Med

ium

-Ter

m F

isca

l Fo

reca

stin

g Fr

amew

ork

(M

TFF)

is

dev

elo

ped

an

d is

use

d o

n a

ro

llin

g b

asis

fo

r b

ud

get

pre

par

atio

n

Bu

dge

t se

cto

r at

M

OF

has

a g

oo

d

un

der

stan

din

g o

f to

p-d

ow

n

bu

dge

tin

g te

chn

iqu

es, M

TFF,

M

TBF

and

MTE

F.

(Oct

ob

er 2

01

3)

Sem

inar

on

M

ediu

m T

erm

Fr

amew

ork

Sem

inar

s o

n

Med

ium

Ter

m

Fram

ewo

rk t

o

bu

ild t

he

cap

acit

y o

f th

e b

ud

get

sect

or

at

MO

F (a

nd

oth

er

rele

van

t se

cto

rs

at M

OF

and

M

inis

try

of

Pla

nn

ing

and

In

tern

atio

nal

C

oo

per

atio

n,

Mo

PIC

).

Oct

.13

1

1

1

3

95

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

CC

S is

co

nsi

sten

t w

ith

in

tern

atio

nal

ly a

ccep

ted

st

and

ard

s

Act

ion

pla

n

app

rove

d b

y M

OF.

(F

eb 2

01

4)

Wo

rksh

op

on

tr

easu

ry

fun

ctio

ns

Act

ion

pla

n f

or

the

imp

lem

enta

tio

n

of

a tr

easu

ry

syst

em

Dec

.13

1

1

1

3

Rev

enu

e A

dm

inis

trat

ion

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce

Man

agem

ent

Dep

end

ent

up

on

re

com

men

dat

ion

s m

ade

Follo

w-u

p v

isit

to

su

pp

ort

im

ple

men

tati

on

o

f re

form

s

Tech

nic

al

Rep

ort

D

ec.1

3

1

1

_ 2

Stre

amlin

ed a

nd

au

tom

ated

o

per

atio

ns

Bri

ng

regi

ster

up

to

d

ate

& s

imp

lify

regi

stra

tio

n

pro

ced

ure

Stre

ngt

hen

re

gist

rati

on

an

d

sup

po

rt r

e-en

gin

eeri

ng

of

bu

sin

ess

pro

cess

es in

LT

O/M

TOs

TA R

epo

rt

Mar

.14

1

1

.5

1.5

4

Stat

isti

cs

Pri

ce s

tati

stic

s -

The

CP

I is

com

pile

d o

n s

ou

nd

b

ases

, usi

ng

app

rop

riat

e it

em

clas

sifi

cati

on

s an

d s

pec

ific

atio

ns

- Th

e C

SO c

om

pile

s an

d

pu

blis

hes

reg

ula

rly

a P

PI

- Es

tab

lish

men

ts

recr

uit

ed

- W

eigh

ts a

vaila

ble

at

th

e 4

-dig

it le

vel

of

ISIC

Rev

4

Up

dat

ing

the

CP

I an

d c

om

pili

ng

a P

PI

Mis

sio

n r

epo

rt

Ap

r.1

4

1

_ 2

3

96

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

4

Act

ivit

y in

FY

20

14

O

utp

ut(

s)

Ten

tati

ve

Dat

e

Inp

uts

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

ST

Exp

ert

To

tal

NA

-

An

nu

al N

A a

t cu

rren

t an

d

con

stan

t p

rice

s ar

e co

mp

iled

on

so

un

d m

eth

od

olo

gica

l bas

es a

nd

u

se t

he

mo

st r

ecen

t ec

on

om

ic

surv

eys

resu

lts

-C

ove

rage

of

GD

P

esti

mat

es

imp

rove

d.

- G

DP

est

imat

es b

y p

rod

uct

ion

an

d

exp

end

itu

re

reco

nci

led

.

Imp

rovi

ng

com

pila

tio

n o

f N

A

Mis

sio

n r

epo

rt

Oct

.13

1

_

2

3

Exte

rnal

sta

tist

ics

- Im

pro

ved

co

vera

ge o

f re

mit

tan

ces

dat

a; b

ette

r es

tim

ates

of

Fore

ign

Dir

ect

Inve

stm

ent

(FD

I) f

low

s an

d

sto

cks

- Se

mi-

ann

ual

BO

P d

ata

are

avai

lab

le w

ith

in s

ix m

on

ths

of

the

refe

ren

ce p

erio

d

- N

ew IT

RS

form

s im

ple

men

ted

. -

BO

P U

nit

st

ruct

ure

d a

nd

re

spo

nsi

bili

ties

d

efin

ed.

Imp

rovi

ng

BO

P

stat

isti

cs a

nd

IIP

st

atis

tics

M

issi

on

rep

ort

M

ay 1

3

1

1

_ 2

Imp

rovi

ng

BO

P

stat

isti

cs a

nd

IIP

st

atis

tics

(fo

llow

-u

p)

Mis

sio

n r

epo

rt

Sep

.13

1

0

.5

2

3.5

Ye

men

To

tal

1

0

8

9.5

2

7.5

Tota

l pe

rso

n w

ee

ks

87

8

9

78

2

54

97

ANNEX IV: UPDATED WORK PLAN FOR FY 2013

98

 Are

a M

ed

ium

-Te

rm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Re

gio

nal

Act

ivit

ies

Ban

kin

g Su

per

visi

on

Ban

kin

g su

per

viso

rs in

th

e re

gio

n h

ave

a b

ette

r u

nd

erst

and

ing

of

the

late

st p

ract

ices

an

d s

tan

dar

ds

on

b

anki

ng

sup

ervi

sio

n

and

dev

elo

p t

hei

r su

per

viso

ry s

kills

an

d

cap

abili

ties

acc

ord

ingl

y

B

asel

III

Do

ne

Oct

-12

2

.5

0.5

1

4

Is

lam

ic

Ban

kin

g D

on

e M

ar-1

3

2.5

0

.5

1

4

Deb

t M

anag

emen

t an

d

Mo

ney

Mar

ket

Dev

elo

pm

ent

Shar

e ex

per

ien

ce a

nd

ex

per

tise

an

d a

dvi

ce.

Fost

er t

he

regi

on

al

exch

ange

of

exp

erie

nce

s an

d

exp

erti

se in

th

ese

area

s

Is

lam

ic S

uku

k D

on

e Se

p-1

2

1.5

0

.5

1

3

Faci

litat

e a

bro

ad

shar

ing

of

exp

erie

nce

s an

d t

ran

sfer

of

kno

wle

dge

acr

oss

th

e re

gio

n

Dev

elo

pin

g th

e G

ove

rnm

ent

secu

riti

es

mar

kets

Can

cele

d

_

_ _

-

Pu

blic

Fin

anci

al

Man

agem

ent

Co

nsi

sten

cy w

ith

in

tern

atio

nal

go

od

p

ract

ices

an

d

stan

dar

ds:

IPSA

S ca

sh

acco

un

tin

g

Wo

rksh

op

o

n IP

SAS

cash

ac

cou

nti

ng

Do

ne

Jun

-12

2

1

1

4

D

eliv

ered

99

Co

nsi

sten

cy w

ith

in

tern

atio

nal

go

od

p

ract

ices

an

d

stan

dar

ds:

MTB

F

W

ork

sho

p

on

MTB

F D

on

e M

ar-1

3

2

1

1

4

Del

iver

ed

Rev

enu

e A

dm

inis

trat

ion

Enh

ance

d t

ax s

yste

ms

W

ork

sho

p

on

VA

T D

on

e N

ov-

12

3

1

1

5

D

eliv

ered

in

Rab

at,

Mo

rocc

o

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce

Man

agem

ent

Wo

rksh

op

o

n R

isk

Man

agem

ent

of

Tax

Co

mp

lian

ce

Do

ne

Ap

r-1

3

3

1

1

5

Del

iver

ed in

A

mm

an,

Jord

an

Stat

isti

cs

Imp

rove

d r

emit

tan

ces

dat

a th

rou

gh r

egio

nal

co

op

erat

ion

Reg

ion

al

wo

rksh

op

on

as

ymm

etri

es

in b

ilate

ral

dat

a o

n

rem

itta

nce

s

Do

ne

Ap

r-1

3

1

0.5

_

1.5

Imp

rove

d B

OP

dat

a th

rou

gh a

bet

ter

un

der

stan

din

g an

d

op

erat

ion

of

ITR

S in

M

ETA

C c

ou

ntr

ies

Reg

ion

al

wo

rksh

op

on

th

e o

per

atio

n o

f an

ITR

S

Po

stp

on

ed

_

_ _

-

Pri

ori

ty

give

n t

o

rem

itta

nce

s w

ork

sho

p,

wh

ich

had

to

be

resc

hed

ule

d

seve

ral

tim

es.

Re

gio

nal

Act

ivit

ies

Tota

l

17

.5

6

7

30

.5

10

0

TA A

rea

Me

diu

m-T

erm

O

utc

om

e M

ilest

on

e(s

) fo

r FY

20

13

A

ctiv

ity

in

FY2

01

3

Act

ivit

y St

atu

s Ex

ecu

tio

n

Dat

e

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Afg

han

ista

n

Ban

kin

g Su

per

visi

on

DA

B h

as a

n e

nh

ance

d

risk

-fo

cuse

d s

up

ervi

sory

fr

amew

ork

th

at

add

ress

es w

eak

and

p

rob

lem

ban

ks in

an

ef

fect

ive

man

ner

Enfo

rcem

ent

Man

ual

ad

op

ted

by

DA

B -

Ju

ly 2

01

2En

forc

emen

t M

anu

al F

ully

Im

ple

men

ted

D

ecem

ber

20

12

Enh

ance

men

t o

f En

forc

emen

t M

anu

al

Do

ne

Jun

-12

1

1

_

2

- P

arti

al

com

ple

tio

n:

Enfo

rcem

ent

dra

ft

regu

lati

on

dis

cuss

ed

wit

h D

AB

. -

Reg

ula

tio

n

issu

ance

is p

end

ing

the

app

rova

l of

a n

ew b

anki

ng

law

Rev

iew

of

off

-si

te f

un

ctio

n

Do

ne

No

v-1

2

1

1.5

_

2.5

Follo

w-u

p o

n

Enfo

rcem

ent

Fram

ewo

rk

New

/Do

ne

Jan

-13

1

1

.5

_ 2

.5

DA

B h

as a

n e

nh

ance

d

risk

-fo

cuse

d s

up

ervi

sory

an

d r

egu

lato

ry

fram

ewo

rks

that

are

in

line

wit

h in

tern

atio

nal

b

est

pra

ctic

es a

nd

wit

h

Bas

el C

ore

Pri

nci

ple

s fo

r ef

fect

ive

ban

kin

g su

per

visi

on

.

Firs

t d

raft

of

acti

on

pla

n f

or

stre

ngt

hen

ing

ban

kin

g su

per

visi

on

d

iscu

ssed

an

d

agre

ed w

ith

Fi

nan

cial

Su

per

visi

on

D

epar

tmen

t A

pri

l 20

13

Dev

elo

p

acti

on

pla

n

for

stre

ngt

hen

ing

ban

kin

g su

per

visi

on

New

/Do

ne

Ap

r-1

3

1

1.5

_

2.5

- D

raft

co

re

pri

nci

ple

s se

lf

asse

ssm

ent

com

ple

ted

-

Firs

t d

raft

act

ion

p

lan

dis

cuss

ed w

ith

Fi

nan

cial

Su

per

visi

on

D

epar

tmen

t at

DA

B.

101

TA A

rea

Me

diu

m-T

erm

O

utc

om

e M

ilest

on

e(s

) fo

r FY

20

13

A

ctiv

ity

in

FY2

01

3

Act

ivit

y St

atu

s Ex

ecu

tio

n

Dat

e

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

DA

B h

as a

n u

pd

ated

re

gula

tory

fra

mew

ork

th

at e

stab

lish

es

rele

van

t lim

its

and

ad

equ

ate

stan

dar

ds

for

the

con

du

ct o

f b

anki

ng

op

erat

ion

s in

lin

e w

ith

b

est

pra

ctic

es a

nd

wit

h

Bas

el p

rin

cip

les

for

effe

ctiv

e b

anki

ng

sup

ervi

sio

n

Issu

ance

of

new

re

gula

tio

ns

on

Li

qu

idit

y,

Rel

ates

Par

ty

tran

sact

ion

s A

pri

l 20

13

Rev

iew

Li

qu

idit

y R

egu

lati

on

s C

ance

led

_ _

_ _

Reg

ula

tio

n w

ill b

e d

raft

ed w

ith

th

e as

sist

ance

of

the

resi

den

t b

anki

ng

sup

ervi

sio

n a

dvi

sor

in K

abu

l.

Deb

t M

anag

emen

t an

d

Mo

ney

Mar

ket

Dev

elo

pm

ent

Imp

rove

men

t in

lega

l fr

amew

ork

an

d r

isk

man

agem

ent

con

sist

ent

wit

h t

he

Med

ium

-Ter

m

Deb

t M

anag

emen

t St

rate

gy (

MTD

S)

fram

ewo

rk f

or

Deb

t M

anag

emen

t

A S

uku

k la

w is

p

rep

ared

an

d

pre

sen

ted

to

th

e p

arlia

men

t b

y Ja

nu

ary

20

13

Ass

ist

in t

he

pre

par

atio

n o

f th

e Su

kuk

Law

C

ance

led

_ _

_ -

The

area

of

Deb

t M

anag

emen

t ce

ased

Pu

blic

Fin

anci

al

Man

agem

ent

Fin

anci

al p

lan

nin

g fo

rmat

use

d b

y p

ilot

min

istr

ies

to e

xpla

in

thei

r ke

y ex

pen

dit

ure

p

rogr

ams

is c

on

sist

ent

wit

h in

tern

atio

nal

go

od

p

ract

ices

Fin

anci

al p

lan

s in

clu

ded

in

Bu

dge

t C

ircu

lar

(Mar

ch 2

01

3)

TA m

issi

on

on

fi

nan

cial

pla

ns

Do

ne

No

v-1

2

1

1

1

3

Par

tial

ly a

chie

ved

, th

e fi

nan

cial

pla

ns

are

no

t ye

t in

tegr

ated

in t

he

bu

dge

t ci

rcu

lar

10

2

Act

ive

cash

m

anag

emen

t te

chn

iqu

es a

re a

do

pte

d

by

the

Cas

h

Man

agem

ent

Un

it

(CM

U)

CM

U h

as a

go

od

u

nd

erst

and

ing

of

the

acti

ve

cash

m

anag

emen

t te

chn

iqu

es a

nd

is

ab

le t

o

pre

par

e w

hat

-if

scen

ario

on

Ex

cel (

Ap

ril

20

13

)

Ass

ist

wit

h

Cas

h

Man

agem

ent

1

1

1

3

Ach

ieve

d, C

MU

has

a

goo

d

un

der

stan

din

g o

f th

e ac

tive

cas

h

man

agem

ent

tech

niq

ues

Rev

enu

e A

dm

inis

trat

ion

En

han

ced

tax

sys

tem

s

Fin

e-tu

nin

g o

f V

AT

imp

lem

enta

tio

n

stra

tegy

Sup

po

rt V

AT

pre

par

atio

ns

D

on

e Se

p-1

2

2

1

_ 3

Stu

dy

visi

t o

f th

e V

AT

syst

em in

Le

ban

on

to

st

ren

gth

en

pre

par

atio

ns

to

intr

od

uce

VA

T in

A

fgh

anis

tan

Stat

isti

cs

• B

ette

r es

tim

ates

of

FDI f

low

s an

d s

tock

s •

The

qu

alit

y o

f d

ata

colle

cted

via

th

e IT

RS

has

imp

rove

d

• B

OP

sta

tist

ics

are

of

suff

icie

nt

qu

alit

y fo

r in

clu

sio

n in

IM

F p

ub

licat

ion

s

- A

stu

dy

of

FDI

bas

ed o

n

avai

lab

le d

ata

sou

rces

has

b

een

co

nd

uct

ed b

y en

d-F

Y20

13

-

Ava

ilab

le

elem

ents

of

an

IIP

hav

e b

een

co

llect

ed a

nd

p

ut

toge

ther

(e

nd

of

FY2

01

3)

Imp

rove

men

t o

f B

OP

st

atis

tics

an

d

dev

elo

pm

ent

of

an II

P

Do

ne

Jun

-12

2

1

_

3

- St

aff

turn

ove

r in

o

ne

agen

cy (

AIS

A)

pre

ven

ted

pro

gres

s in

th

is a

rea

- A

pre

limin

ary

IIP

w

as p

rep

ared

. IIP

lik

ely

to b

e p

ub

lish

ed b

y th

e en

d o

f FY

20

13

Imp

rove

men

t o

f B

OP

st

atis

tics

an

d

dev

elo

pm

ent

of

an II

P

New

/Do

ne

Feb

-13

2

1

_

3

Afg

han

ista

n T

ota

l

12

1

0.5

2

2

4.5

103

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Egyp

t

Ban

kin

g Su

per

visi

on

The

CB

E h

as a

str

on

g re

gula

tory

an

d

sup

ervi

sory

fra

mew

ork

th

at is

in li

ne

wit

h t

he

late

st B

asel

pri

nci

ple

s o

n b

anki

ng

sup

ervi

sio

n

incl

ud

ing

Bas

el II

an

d

Bas

el II

I

SREP

Man

ual

ad

op

ted

by

CB

E in

D

ecem

ber

20

12

Dev

elo

p a

man

ual

fo

r Su

per

viso

ry

Rev

iew

an

d

Eval

uat

ion

Pro

cess

(S

REP

)

Can

cele

d

_

_ _

-

No

res

po

nse

fr

om

Cen

tral

B

ank

of

Egyp

t (C

BE)

an

d

con

stra

inin

g se

curi

ty

con

dit

ion

s

Trai

nin

g o

n t

he

SREP

man

ual

C

ance

led

_ _

_ -

The

CB

E su

per

viso

rs a

re

wel

l tra

ined

an

d p

oss

ess

hig

h t

ech

nic

al

sup

ervi

sory

ski

lls

Wo

rksh

op

on

C

orp

ora

te

Go

vern

ance

(w

ith

EB

I)

Can

cele

d

_

_ _

-

No

res

po

nse

fr

om

Egy

pti

an

Ban

kin

g In

stit

ute

(EB

I)

and

co

nst

rain

ing

secu

rity

co

nd

itio

ns

Pu

blic

Fi

nan

cial

M

anag

emen

t

Ove

rall

syst

ems

of

inte

rnal

co

ntr

ols

(i

ncl

ud

ing

inte

rnal

au

dit

) an

d a

cco

un

tin

g an

d

rep

ort

ing

are

con

sist

ent

wit

h in

tern

atio

nal

ly

acce

pte

d s

tan

dar

ds

Act

ion

pla

ns,

d

evel

op

ed a

nd

ap

pro

ved

by

MO

F to

su

pp

ort

th

e im

ple

men

tati

on

o

f P

FM r

efo

rms

on

inte

rnal

co

ntr

ol (

Feb

ruar

y 2

01

3)

Ass

essm

ent

of

Fin

anci

al c

on

tro

l in

Lin

e A

gen

cies

P

ost

po

ned

_ _

_ -

No

t a

pri

ori

ty

du

rin

g FY

20

13

10

4

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

CM

U h

as a

go

od

co

mp

eten

ce in

cas

h

flo

w p

lan

nin

g an

d in

ac

tive

cas

h

man

agem

ent

tech

niq

ues

.

CM

U h

as a

go

od

u

nd

erst

and

ing

of

the

acti

ve c

ash

m

anag

emen

t te

chn

iqu

es a

nd

is

able

to

pre

par

e w

hat

-if

scen

ario

o

n E

xcel

Ass

ist

wit

h C

ash

M

anag

emen

t

Do

ne

Jan

-13

2

1

.5

1.5

5

No

t ac

hie

ved

, ad

dit

ion

al

effo

rts

on

th

e co

mm

itm

ent

pre

ven

tive

co

ntr

ols

is

nee

ded

as

a p

re-r

equ

isit

e to

h

ave

a re

liab

le

cash

pla

ns

fro

m li

ne

agen

cies

Rev

enu

e A

dm

inis

trat

ion

Enh

ance

d t

ax s

yste

ms

Dra

ft T

PC

d

evel

op

ed w

ith

in

6 m

on

ths

afte

r TA

Sup

po

rt

dev

elo

pm

ent

of

TPC

P

ost

po

ned

_ _

_ -

Res

um

ing

of

tax

TA

con

tin

gen

t u

po

n r

e-as

sess

men

t o

f p

rio

riti

es b

y FA

D in

ligh

t o

f th

e p

rep

arat

ion

s to

fi

nal

ize

the

pro

gram

wit

h

Egyp

t

Mo

re e

ffec

tive

cu

sto

ms

adm

inis

trat

ion

Dep

end

ent

up

on

re

com

men

dat

ion

s m

ade

Sup

po

rt c

ust

om

s P

ost

po

ned

_ _

_ -

Po

stp

on

ed d

ue

to s

ecu

rity

re

aso

ns

Enh

ance

d t

ax s

yste

ms

Fo

llow

-up

vis

it

New

/Do

ne

Oct

-12

1

1

2

Follo

w-u

p o

n

tax

and

cu

sto

ms

105

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Stat

isti

cs

• Th

e FD

I su

rvey

has

b

een

co

nd

uct

ed, a

nd

th

e re

sult

s h

ave

bee

n

pu

blis

hed

. Egy

pt

effe

ctiv

ely

par

tici

pat

es

in t

he

CD

IS

• Th

e q

ual

ity

of

mer

chan

dis

e tr

ade

stat

isti

cs a

nd

of

flo

ws

and

sto

cks

of

the

pri

vate

se

cto

r’s

EXD

has

im

pro

ved

; rem

itta

nce

s d

ata

are

colle

cted

by

cou

ntr

y o

f o

rigi

n

• S

tati

stic

s ar

e co

nsi

sten

t w

ith

NA

•

The

BO

P a

nd

th

e II

P

are

com

pile

d a

cco

rdin

g to

BP

M6

met

ho

do

logy

- A

pilo

t su

rvey

h

as b

een

co

nd

uct

ed f

rom

G

AFI

dat

abas

e b

y en

d-J

un

e 2

01

2

- Su

rvey

p

op

ula

tio

n h

as

bee

n u

pd

ated

by

end

-Sep

tem

ber

2

01

2

- Su

bje

ct t

o a

p

osi

tive

res

ult

of

the

pilo

t, a

fu

ll sc

ale

surv

ey h

as

bee

n c

arri

ed o

ut

by

end

-FY2

01

3

Rev

iew

ing

resu

lts

of

the

FDI p

ilot

surv

ey

Do

ne

Jul-

12

2

1

-

3

-P

ilot

con

du

cted

su

cces

sfu

lly o

n

sch

edu

le.

- Su

rvey

p

op

ula

tio

n

up

dat

ed o

n

sch

edu

le.

- Fo

llow

ing

po

siti

ve r

esu

lt

of

the

pilo

t,

trai

nin

g w

as

pro

vid

ed a

nd

fu

ll-sc

ale

surv

ey t

o b

e co

nd

uct

ed in

ea

rly

FY2

01

4

(in

itia

l dea

dlin

e w

as m

ean

t fo

r en

d-2

01

1 d

ata,

w

hile

th

e su

rvey

will

als

o

cove

r en

d-2

01

2

dat

a)

Follo

w u

p o

n t

he

FDI s

urv

ey

Do

ne

Mar

-13

2

1

-

3

Egyp

t To

tal

7

4

.5

1.5

1

3

10

6

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Iraq

Ban

kin

g Su

per

visi

on

CB

I su

per

viso

rs h

ave

a th

oro

ugh

un

der

stan

din

g o

f th

e b

anki

ng

regu

lati

on

s an

d p

oss

ess

the

nec

essa

ry s

kills

to

p

erfo

rm a

n e

ffec

tive

o

nsi

te a

nd

off

site

su

per

visi

on

of

ban

ks

op

erat

ing

in Ir

aq

Trai

nin

g o

n

Inte

rnat

ion

al

Fin

anci

al

Rep

ort

ing

Stan

dar

ds

(IFR

S)

Can

cele

d

_

_ _

- N

o r

esp

on

se F

rom

C

entr

al B

ank

of

Iraq

.

Pu

blic

Fi

nan

cial

M

anag

emen

t

Bu

dge

t cl

assi

fica

tio

n is

im

pro

ved

an

d p

erm

its

a b

ette

r tr

acki

ng

of

exp

end

itu

res

acco

rdin

g to

th

e C

OFO

G

Bu

dge

t d

epar

tmen

t h

as

pre

par

ed a

gu

ide

exp

lain

ing

ho

w t

o u

se t

he

fun

ctio

nal

cl

assi

fica

tio

n

(Sep

tem

ber

2

01

2)

TA m

issi

on

on

fu

nct

ion

al

clas

sifi

cati

on

C

OFO

G

Po

stp

on

ed

_

_ _

-

Po

stp

on

ed b

y th

e M

OF.

TA

mis

sio

ns

to b

e re

pri

ori

tize

d

wit

h t

he

new

M

inis

ter

of

Fin

ance

an

d t

o b

e d

iscu

ssed

wit

h t

he

IMF

du

rin

g Sp

rin

g M

eeti

ngs

A r

oad

map

for

IFM

IS

imp

lem

enta

tio

n

is d

evel

op

ed a

nd

ap

pro

ved

IFM

IS

Ro

adm

ap

New

/Do

ne

May

-12

_

1

_ 1

Ach

ieve

d, t

he

IFM

IS r

oad

map

w

as a

pp

rove

d b

y au

tho

riti

es

Fi

nal

PFM

dra

ft

is s

ub

mit

ted

to

ca

bin

et

Rev

iew

of

PFM

dra

ft

Law

N

ew/D

on

e D

ec-1

2

1

1

_ 2

Ach

ieve

d, f

ollo

w

up

mis

sio

n is

re

qu

ired

wit

h a

le

gal e

xper

t

Iraq

To

tal

1

2

0

3

107

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Jord

an

Ban

kin

g Su

per

visi

on

The

CB

J h

as a

ris

k-fo

cuse

d

and

eff

ecti

ve o

ffsi

te

sup

ervi

sory

fra

mew

ork

, in

clu

din

g a

goo

d a

nd

wel

l fu

nct

ion

ing

EWS

- D

evel

op

a

his

tori

cal

dat

abas

e fo

r al

l b

anks

go

ing

bac

k at

leas

t 5

ye

ars

on

a

qu

arte

rly

bas

is

in J

un

e 2

01

2

- F

inal

ize

dev

elo

pm

ent

of

his

tori

cal

dat

abas

e &

es

tim

atio

n o

f st

atis

tica

l EW

S in

D

ecem

ber

20

12

Rev

iew

H

isto

rica

l D

atab

ase

Po

stp

on

ed

_

_ _

-

CB

J is

sti

ll co

llect

ing

dat

a fo

r th

e EW

S.

Mis

sio

n li

kely

to

ta

ke p

lace

in J

uly

2

01

3.

The

CB

J h

as a

reg

ula

tory

fr

amew

ork

th

at is

in li

ne

wit

h t

he

late

st s

tan

dar

ds

issu

ed b

y B

asel

Co

mm

itte

e o

n C

apit

al, L

ever

age

and

Li

qu

idit

y

-A

n a

ctio

n p

lan

fo

r im

ple

men

tati

on

o

f B

asel

III i

s se

t b

y C

BJ

in

Sep

tem

ber

20

12

- R

egu

lati

on

s o

n

Bas

el II

I are

is

sued

by

Ap

ril

20

13

Ass

ist

in

Ass

essm

ent

of

QIS

on

B

asel

III

Do

ne

Jan

-13

1

1

_

2

- P

roje

ct is

bei

ng

per

form

ed jo

intl

y w

ith

MC

M.

- A

n a

ctio

n p

lan

w

as p

rop

ose

d

du

rin

g th

e m

issi

on

o

n h

ow

an

d w

hen

to

im

ple

men

t B

asel

III.

Dra

ft

Reg

ula

tio

ns

on

Bas

el II

I P

ost

po

ned

_ _

_ -

10

8

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Be

iru

t)

RA

(B

eir

ut)

R

A

(Be

iru

t)

The

CB

J h

as a

go

od

re

gula

tory

an

d

sup

ervi

sory

fra

mew

ork

fo

r lic

ensi

ng

new

PC

Bs

and

fo

r p

erfo

rmin

g ef

fect

ive

sup

ervi

sio

n o

ver

thei

r ac

tivi

ties

- L

icen

sin

g M

anu

al f

or

PC

Bs

Ap

pro

ved

b

y Ju

ne

20

12

Ass

ist

CB

J in

d

raft

ing

regu

lati

on

s o

n

Sup

ervi

sio

n

of

PC

Bs

Can

cele

d

_

_ _

-

CB

J is

get

tin

g TA

fr

om

oth

er d

on

ors

o

n s

up

ervi

sio

n o

f P

CB

s

The

CB

J h

as a

go

od

re

gula

tory

an

d

sup

ervi

sory

fra

mew

ork

fo

r lic

ensi

ng

new

PC

Bs

and

fo

r p

erfo

rmin

g ef

fect

ive

sup

ervi

sio

n o

ver

thei

r ac

tivi

ties

- N

ew L

icen

ses

for

PC

Bs

gran

ted

by

Dec

emb

er 2

01

2

Dra

ft

Gu

idel

ines

fo

r Es

tab

lish

men

t o

f P

CB

s

New

/Do

ne

Oct

-12

1

_

1

2

- L

icen

sin

g m

anu

al

and

gu

idel

ines

fo

r es

tab

lish

men

t o

f P

CB

s w

ere

app

rove

d b

y C

BJ

- N

o P

CB

s h

ave

bee

n li

cen

sed

yet

. Th

is is

exp

ecte

d in

FY

20

14

The

CB

J su

per

viso

rs a

re

wel

l tra

ined

an

d h

ave

a th

oro

ugh

un

der

stan

din

g o

f th

e la

test

inte

rnat

ion

al

ban

kin

g su

per

visi

on

st

and

ard

s, e

spec

ially

th

e ap

plic

atio

n o

f B

asel

III

- C

BJ

sup

ervi

sors

are

m

ore

cap

able

to

imp

lem

ent

Bas

el II

I by

Ap

ril

20

13

Wo

rksh

op

on

B

asel

III

Po

stp

on

ed

_

_ _

-

TA o

n B

asel

III w

as

per

form

ed la

ter

than

th

e o

rigi

nal

sc

hed

ule

. Th

is h

as

imp

acte

d t

he

Bas

el

III w

ork

sho

p w

hic

h

will

be

per

form

ed

in F

Y20

14

109

TA A

rea

Me

diu

m-T

erm

O

utc

om

e M

ilest

on

e(s

) fo

r FY

20

13

A

ctiv

ity

in

FY2

01

3

Act

ivit

y St

atu

s Ex

ecu

tio

n

Dat

e

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Deb

t M

anag

emen

t an

d

Mo

ney

Mar

ket

Dev

elo

pm

ent

Imp

rove

men

t in

lega

l fr

amew

ork

an

d r

isk

man

agem

ent

con

sist

ent

wit

h t

he

MTD

S fr

amew

ork

fo

r D

ebt

Man

agem

ent

Issu

ance

of

Deb

t St

rate

gy b

y Ja

nu

ary

20

13

Cap

acit

y B

uild

ing

in

Ris

k A

nal

ysis

ac

cord

ing

to

the

MTD

S fr

amew

ork

an

d D

ebt

Sust

ain

abili

ty

An

alys

is

Do

ne

Sep

-12

1

2

2

5

Dev

elo

pm

ent

of

pri

mar

y an

d s

eco

nd

ary

mar

kets

fo

r go

vern

men

t se

curi

ties

New

au

ctio

n

pro

ced

ure

s ar

e in

tro

du

ced

to

th

e m

arke

t an

d a

n

auct

ion

cal

end

ar

is is

sued

by

Feb

ruar

y 2

01

3

Ass

ist

in

pri

mar

y m

arke

t is

sues

Can

cele

d

_

_ _

-

Pu

blic

Fin

anci

al M

anag

emen

t

The

Gen

eral

D

epar

tmen

t (G

BD

) w

ill

hav

e im

pro

ved

ex

pen

dit

ure

po

licie

s so

as

to

incr

ease

th

eir

eco

no

mic

an

d s

oci

al

imp

act

Po

licy

reco

mm

end

atio

ns

are

incl

ud

ed

in

bu

dge

t 2

01

3 in

Jo

rdan

(A

pri

l 2

01

3)

Exp

end

itu

re

revi

ew o

n

cap

abili

ties

an

d m

eth

od

s

Do

ne

Jan

-13

1

0

.5

1

2.5

Syst

ems

to p

reve

nt

and

m

on

ito

r o

ver

com

mit

men

t an

d

arre

ars

are

im

ple

men

ted

PFM

str

uct

ura

l b

en

chm

arks

are

id

en

tifi

ed

PFM

as

sess

men

t N

ew/D

on

e D

ec-1

2

1

_ 1

2

11

0

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Rev

enu

e A

dm

inis

trat

ion

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce M

anag

emen

t

An

alys

is o

f st

ock

o

f d

ebt

(as

per

FA

D m

issi

on

re

com

men

dat

ion

s)

Sup

po

rt

colle

ctio

n

enfo

rcem

ent

and

arr

ears

m

anag

emen

t

Do

ne

No

v-1

2

1.5

_

2

3.5

Po

siti

ve p

rogr

ess

mad

e an

d w

ork

ing

gro

up

est

ablis

hed

to

dev

elo

p a

nd

o

vers

ee

imp

lem

enta

tio

n o

f an

act

ion

pla

n.

Furt

her

wo

rk is

n

eed

ed t

o

stre

ngt

hen

m

anag

emen

t o

f ta

x ar

rear

s

Dep

end

ent

up

on

re

com

men

dat

ion

s m

ade

Follo

w-u

p

visi

t D

on

e A

ug-

12

1

1

_

2

Pro

gres

s m

ade

in

add

ress

ing

FAD

's

reco

mm

end

atio

ns.

C

om

mit

tees

es

tab

lish

ed t

o

pre

par

e ac

tio

n

pla

ns,

bu

t fu

rth

er

com

mit

men

t is

n

eed

ed t

o e

xped

ite

imp

lem

enta

tio

n

Imp

rove

d a

ud

it

met

ho

ds

in L

TO &

M

TOs

(as

per

FA

D

mis

sio

n

reco

mm

end

atio

ns)

Stre

ngt

hen

ri

sk-b

ased

au

dit

D

on

e A

pr-

13

1

2

2

5

Mo

nit

or

pro

gres

s d

uri

ng

FY2

01

4 a

nd

as

sess

nee

d f

or

furt

her

TA

111

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce M

anag

emen

t

Follo

w-u

p

visi

t D

on

e M

ar-1

3

0.5

1

_

1.5

Stat

isti

cs

- Im

pro

ved

co

mp

ilati

on

of

ann

ual

NA

, bas

ed o

n

assu

mp

tio

ns

con

sist

ent

wit

h t

he

curr

ent

real

ity

of

the

Jord

ania

n e

con

om

y -

As

a ca

scad

ing

effe

ct,

imp

rove

men

ts in

th

e q

ual

ity

of

qu

arte

rly

NA

-

Reg

ula

r p

rod

uct

ion

of

SUTs

- Th

e b

ase

year

h

as b

een

ch

ange

d (

20

11

su

rvey

) b

y en

d-

FY2

01

3

- Th

e SU

Ts f

or

20

10

hav

e b

een

co

mp

lete

d b

y en

d-F

Y20

13

Follo

win

g u

p

on

pre

vio

us

SUT

mis

sio

ns

and

im

ple

men

tin

g a

new

bas

e ye

ar f

or

NA

. (p

ost

po

ned

fr

om

FY2

01

2)

Do

ne

May

-12

1

_

2

3

Wo

rk is

sti

ll o

ngo

ing

at e

nd

-FY2

01

3

- Im

pro

ved

co

vera

ge o

f th

e C

PI

- Im

pro

ved

co

mp

ilati

on

p

ract

ices

-Es

tab

lish

men

t lis

t h

as b

een

u

pd

ated

by

end

-FY

20

13

-

Han

dh

eld

d

evic

es a

re in

u

se b

y en

d-

FY2

01

3

Up

dat

ing

the

CP

I D

on

e Ja

n-1

3

1

_ 2

3

- W

ork

is s

till

on

goin

g at

en

d-

FY2

01

3

- H

and

hel

d d

evic

es

are

in u

se

11

2

TA

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

- Im

pro

ved

co

vera

ge o

f th

e ex

tern

al a

sset

s o

f th

e p

riva

te, n

on

-ban

k se

cto

r -

The

com

pila

tio

n o

f re

mit

tan

ces

dat

a h

as b

een

fu

rth

er im

pro

ved

-

EXD

sta

tist

ics

are

fully

co

nsi

sten

t w

ith

in

tern

atio

nal

sta

nd

ard

s -

The

BO

P a

nd

IIP

co

mp

ilati

on

sys

tem

hav

e b

een

up

dat

ed t

o

imp

lem

ent

BP

M6

- E

xter

nal

an

d

do

mes

tic

deb

ts

are

app

rop

riat

ely

clas

sifi

ed (

end

of

Dec

emb

er 2

01

2)

- Ex

tern

al a

sset

s o

f th

e p

riva

te

no

n-b

ank

sect

or

are

esti

mat

ed

bas

ed o

n B

IS

stat

isti

cs b

y en

d-

FY2

01

3

Imp

rovi

ng

BO

P s

tati

stic

s an

d II

P

stat

isti

cs

Do

ne

Sep

-12

1

1

_

2

- C

lass

ific

atio

n n

ot

amen

ded

yet

-

The

Cen

tral

Ban

k is

n

ot

fully

co

nfi

den

t in

BIS

sta

tist

ics

Jord

an T

ota

l

12

8

.5

13

3

3.5

113

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY 1

3

Act

ivit

y in

FY

1

3

Act

ivit

y St

atu

s Ex

ecu

tio

n

Dat

e

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Leb

ano

n

Ban

kin

g Su

per

visi

on

The

BD

L an

d t

he

BC

CL

hav

e an

up

dat

ed E

WS

that

en

han

ces

the

sup

ervi

sory

an

d r

egu

lato

ry f

ram

ewo

rk

A f

ram

ewo

rk f

or

EWS

and

fo

r Fi

nan

cial

St

abili

ty is

ag

reed

up

on

b

etw

een

BD

L an

d B

CC

L b

y D

ecem

ber

20

12

Ass

ist

in t

he

imp

lem

enta

tio

n

of

the

EWS

Po

stp

on

ed

_

_ _

-

-EW

S m

od

el h

as

bee

n e

stab

lish

ed

by

BD

L.

- Se

arch

sti

ll o

ngo

ing

for

a sh

ort

-ter

m

exp

ert

on

Fi

nan

cial

Sta

bili

ty

/ EW

S

The

BD

L st

aff

and

th

e B

CC

L su

per

viso

rs d

evel

op

a

tho

rou

gh u

nd

erst

and

ing

of

the

com

po

nen

ts o

f th

e EW

S m

od

el a

nd

of

its

vari

ou

s u

ses

thro

ugh

ou

t th

e b

anki

ng

sup

ervi

sio

n

pro

cess

Trai

nin

g o

n

Earl

y W

arn

ing

Ind

icat

ors

an

d

EWS

Po

stp

on

ed

_

_ _

-

This

was

del

ayed

as

a r

esu

lt o

f th

e d

elay

in t

he

pre

vio

us

acti

vity

.

The

BC

CL

has

an

en

han

ced

re

gula

tory

an

d s

up

ervi

sory

fr

amew

ork

th

at c

om

plie

s to

th

e la

rges

t ex

ten

t p

oss

ible

wit

h t

he

Bas

el

core

pri

nci

ple

s fo

r ef

fect

ive

ban

kin

g su

per

visi

on

- M

anu

al f

or

sup

ervi

sio

n o

f n

on

-ban

k fi

nan

cial

in

stit

uti

on

s (N

BFI

s) is

ap

pro

ved

by

BC

CL

in

Sep

tem

ber

20

12

-M

anu

al is

im

ple

men

ted

by

Ap

ril 2

01

3

Pre

par

e fo

r d

raft

ing

Sup

ervi

sio

n

Man

ual

fo

r N

BFI

s

Do

ne

Dec

-12

1

1

1

3

- T

her

e w

ere

som

e d

elay

s in

fi

nd

ing

suit

able

sh

ort

-ter

m

exp

ert.

-

Su

bst

anti

al

pro

gres

s h

as

bee

n m

ade

up

till

n

ow

an

d s

om

e m

ain

par

ts o

f th

e m

anu

al h

ave

bee

n c

om

ple

ted

Dra

ftin

g M

anu

al f

or

Sup

ervi

sio

n o

f N

BFI

s

Do

ne

Jan

-13

1

_

2.5

3

.5

11

4

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY 1

3

Act

ivit

y in

FY

1

3

Act

ivit

y St

atu

s Ex

ecu

tio

n

Dat

e

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Follo

w-u

p o

n

Dra

ftin

g M

anu

al f

or

NB

FIs

New

/Do

ne

Feb

-13

1

1

1

3

and

dis

cuss

ed

wit

h B

CC

L -

Th

e m

anu

al is

ex

pec

ted

to

be

fin

aliz

ed d

uri

ng

the

firs

t tw

o

mo

nth

s o

f FY

14

.

The

BC

CL

has

an

en

han

ced

re

gula

tory

an

d s

up

ervi

sory

fr

amew

ork

th

at c

om

plie

s to

th

e la

rges

t ex

ten

t p

oss

ible

wit

h t

he

Bas

el

core

pri

nci

ple

s fo

r ef

fect

ive

ban

kin

g su

per

visi

on

Co

nti

nu

e D

raft

ing

Man

ual

fo

r N

BFI

s

New

/Do

ne

Mar

-13

1

_

2

3

Follo

w-u

p o

n

Dra

ftin

g M

anu

al f

or

NB

FIs

New

/Do

ne

Mar

-13

1

1

1

3

Dra

ft

rem

ain

ing

of

man

ual

fo

r N

BFI

s

New

/Do

ne

Ap

r-1

3

1

_ 2

3

Rev

iew

an

d

Fin

aliz

atio

n o

f M

anu

al f

or

NB

FIs

Po

stp

on

ed

_

_ _

0

The

sup

ervi

sors

at

BC

CL

hav

e a

tho

rou

gh a

nd

en

han

ced

kn

ow

led

ge o

f th

e la

test

ban

kin

g su

per

visi

on

sta

nd

ard

s an

d

pri

nci

ple

s

- M

ore

re

gula

tio

ns

are

issu

ed o

n

Fin

anci

al

con

sum

er

pro

tect

ion

an

d

Sem

inar

on

Fi

nan

cial

C

on

sum

er

Pro

tect

ion

Can

cele

d

_

_ _

-

-Se

min

ar a

nd

Fr

amew

ork

on

fi

nan

cial

co

nsu

mer

p

rote

ctio

n is

cu

rren

tly

no

t a

very

hig

h p

rio

rity

115

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY 1

3

Act

ivit

y in

FY

1

3

Act

ivit

y St

atu

s Ex

ecu

tio

n

Dat

e

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

incr

ease

d

com

plia

nce

by

ban

ks -

Ju

ne

20

13

-

Mo

re s

tres

s te

sts

are

con

du

cted

by

BC

CL

by

Sep

tem

ber

2

01

3

Wo

rksh

op

on

St

ress

Tes

tin

g To

ols

an

d

Tech

niq

ues

Po

stp

on

ed

_

_ _

_

give

n t

he

dem

and

s fo

r o

ther

to

pic

s -

Th

e B

CC

L is

co

nd

uct

ing

regu

lar

stre

ss

test

s fo

r th

e b

anki

ng

sect

or.

Th

e W

ork

sho

p

has

bee

n

po

stp

on

ed t

ill

FY1

4 t

o e

n a

ble

fi

nal

izat

ion

of

the

man

ual

fo

r N

BFI

s as

a f

irst

p

rio

rity

.

Pu

blic

Fin

anci

al

Man

agem

ent

A t

op

-do

wn

, mu

lti-

year

b

ud

get

pre

par

atio

n

pro

cess

is a

do

pte

d

Bu

dge

t ci

rcu

lar

incl

ud

es a

m

acro

-fis

cal

fram

ewo

rk a

nd

re

ven

ues

fo

reca

stin

g p

rep

ared

by

the

mac

ro-f

isca

l u

nit

(A

pri

l 20

13

)

Cap

acit

y b

uild

ing

of

the

mac

ro-f

isca

l u

nit

Do

ne

Sep

-12

1

.5

1.5

1

.5

4.5

Par

tial

ly

ach

ieve

d,

bu

dge

t ci

rcu

lar

for

bu

dge

t 2

01

4

sho

uld

be

enh

ance

d

acco

rdin

gly.

11

6

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY

13

A

ctiv

ity

in F

Y

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

The

bu

dge

t cy

cle

is

stre

amlin

ed in

lin

e w

ith

in

tern

atio

nal

go

od

p

ract

ice

wit

h t

he

intr

od

uct

ion

of

a so

un

d

and

pra

ctic

al n

ew b

ud

get

syst

em la

w (

BSL

)

Fin

al B

SL d

raft

is

sub

mit

ted

to

cab

inet

(D

ecem

ber

20

12

)

Cap

acit

y b

uild

ing

of

Mo

F an

d o

ther

G

OL

agen

cies

o

n la

w a

nd

re

gula

tio

ns

Po

stp

on

ed

_

_ _

-

This

act

ivit

y is

p

end

ing

the

fin

aliz

atio

n o

f th

e d

raft

B

ud

get

Syst

em

Law

by

the

MO

F

The

bu

dge

t cy

cle

is

stre

amlin

ed in

lin

e w

ith

in

tern

atio

nal

go

od

p

ract

ice

wit

h t

he

intr

od

uct

ion

of

a so

un

d

and

pra

ctic

al n

ew b

ud

get

syst

em la

w (

BSL

)

Fin

al B

SL d

raft

is

sub

mit

ted

to

cab

inet

(D

ecem

ber

20

12

)

Rev

iew

dra

ft

of

the

bu

dge

t sy

stem

law

P

ost

po

ned

_ _

_ -

The

MO

F d

id

no

t fi

nal

ize

the

dra

ft b

ud

get

syst

em la

w

Rev

enu

e A

dm

inis

trat

ion

Mo

re e

ffic

ien

t an

d

effe

ctiv

e o

rgan

izat

ion

al

stru

ctu

res

Dra

ft la

w

esta

blis

hin

g u

nif

ied

ta

x ad

min

istr

atio

n

wit

hin

6 m

on

ths

afte

r TA

Sup

po

rt

esta

blis

hm

ent

of

inte

grat

ed

tax

adm

inis

trat

ion

Do

ne

May

-12

1

1

1

.5

3.5

Po

siti

ve

pro

gres

s m

ade

and

dra

ft la

w

sub

mit

ted

to

th

e M

OF.

Fin

al

dec

isio

ns

to b

e ta

ken

on

cri

tica

l is

sues

su

ch a

s V

AT

op

erat

ion

s d

e-ce

ntr

aliz

atio

n

117

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY

13

A

ctiv

ity

in F

Y

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Mo

re e

ffec

tive

cu

sto

ms

adm

inis

trat

ion

Rev

ised

o

rgan

izat

ion

al

fram

ewo

rk f

or

cust

om

s

Stre

ngt

hen

o

rgan

izat

ion

al

arra

nge

men

ts

at c

ust

om

s

Po

stp

on

ed

_

_ _

- R

epla

ced

by

TA

on

ris

k m

anag

emen

t

Imp

rove

d r

isk

man

agem

ent

and

co

ntr

ol s

chem

es

Esta

blis

h a

nd

m

and

ate

the

cen

tral

Ris

k M

anag

emen

t U

nit

(R

MU

)

New

/Do

ne

Jul-

12

1

.5

1.5

2

5

RM

U

esta

blis

hed

, bu

t st

ron

ger

com

mit

men

t is

n

eed

ed t

o

stre

ngt

hen

its

man

dat

e an

d

op

erat

ion

s

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce

Man

agem

ent

Imp

rove

d a

ud

it

met

ho

ds

&

tech

niq

ues

Stre

ngt

hen

ri

sk-b

ased

au

dit

fo

r sp

ecif

ic s

ecto

rs

Po

stp

on

ed

_

_ _

0

Rep

lace

d b

y TA

o

n B

usi

nes

s A

ctiv

ity

Cla

ssif

icat

ion

(B

AC

) in

ta

xpay

er

regi

ster

Enh

ance

d t

ax s

yste

ms

Imp

rove

d t

axp

ayer

re

gist

er

Stre

ngt

hen

B

usi

nes

s A

ctiv

ity

Cla

ssif

icat

ion

(B

AC

) in

Ta

xpay

er

Reg

iste

r

New

/Do

ne

Feb

-13

1

2

2

5

Fin

al

imp

lem

enta

tio

n

of

BA

C b

ased

o

n IS

IC v

ersi

on

4

exp

ecte

d b

y A

ugu

st 2

01

3

11

8

TA A

rea

Me

diu

m-T

erm

O

utc

om

e M

ilest

on

e(s

) fo

r FY

13

A

ctiv

ity

in F

Y

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Mo

re e

ffic

ien

t an

d

effe

ctiv

e o

rgan

izat

ion

al

stru

ctu

res

Dev

elo

pm

ent

of

inte

grat

ed s

yste

ms

& p

roce

du

res

Follo

w-u

p

visi

ts t

o

sup

po

rt

inte

grat

ion

p

roce

ss

Do

ne

1

2

_

3

Wo

rk p

lan

fo

r sy

stem

s' in

tegr

atio

n

sub

mit

ted

Stat

isti

cs

- Th

e FD

I su

rvey

is

con

du

cted

on

a

regu

lar

bas

is (

at

leas

t ev

ery

oth

er

year

) -

Dat

a fr

om

th

e G

ener

al S

ecu

rity

are

av

aila

ble

fo

r es

tim

atin

g tr

avel

se

rvic

es

- II

P s

tate

men

ts a

re

com

pile

d a

nd

p

ub

lish

ed o

n a

re

gula

r b

asis

(at

le

ast

ann

ual

ly)

- B

OP

an

d II

P

stat

isti

cs a

re

com

pile

d in

ac

cord

ance

wit

h

BP

M6

met

ho

do

logy

- C

oo

per

atio

n

bet

wee

n B

DL,

CA

S,

and

Gen

eral

Se

curi

ty o

n

arri

vals

/dep

artu

res

dat

a is

eff

ecti

ve b

y en

d-F

Y13

-

Exte

rnal

an

d

do

mes

tic

deb

ts a

re

app

rop

riat

ely

clas

sifi

ed (

end

-D

ecem

ber

20

12

)

- A

n F

DI s

urv

ey o

f fi

nan

cial

in

stit

uti

on

s h

as

bee

n c

on

du

cted

by

end

-FY1

3

Sem

inar

on

co

nsi

sten

cy o

f m

acro

-ec

on

om

ic

stat

isti

cs

Do

ne

May

-12

1

1

1

3

-

Co

op

erat

ion

no

t ef

fect

ive

yet.

Ex

tern

al f

un

din

g m

ay b

e n

eces

sary

to

eq

uip

Gen

eral

Se

curi

ty w

ith

ap

pro

pri

ate

serv

er.

- R

evis

ion

of

clas

sifi

cati

on

in

pro

cess

. -

The

FDI s

urv

ey o

f fi

nan

cial

inst

itu

tio

ns

was

del

ayed

by

a fe

w m

on

ths

du

e to

ad

min

istr

ativ

e p

roce

du

res

and

lack

o

f re

sou

rces

.

Imp

rovi

ng

EXD

an

d II

P

stat

isti

cs

Do

ne

No

v-1

2

1

1

_ 2

Rev

iew

ing

resu

lts

of

the

FDI

surv

ey o

f fi

nan

cial

in

stit

uti

on

s

Po

stp

on

ed

_

_ _

-

Imp

rovi

ng

BO

P

stat

isti

cs a

nd

II

P s

tati

stic

s D

on

e Ju

n-1

2

1

0.5

_

1.5

Imp

rovi

ng

BO

P

stat

isti

cs a

nd

II

P s

tati

stic

s N

ew/D

on

e M

ar-1

3

0.5

0

.5

_ 1

Leb

ano

n T

ota

l

15

.5

14

1

7.5

4

7

119

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Lib

ya

Ban

kin

g Su

per

visi

on

The

CB

L h

as a

n

adeq

uat

e le

vel o

f su

per

viso

ry r

etu

rns

that

allo

w f

or

effe

ctiv

e su

per

visi

on

of

ban

ks’

acti

viti

es a

nd

m

on

ito

rin

g o

f th

eir

fin

anci

al p

erfo

rman

ce

Bas

ic

Sup

ervi

sory

R

etu

rns

are

revi

ewed

an

d

issu

ed b

y C

BL

by

Ap

ril 2

01

3

Rev

iew

Bas

ic

Sup

ervi

sory

R

etu

rns

Po

stp

on

ed

_

_ _

-

TA h

as n

ot

fully

re

sum

ed y

et d

ue

to

secu

rity

co

nd

itio

ns

and

pen

din

g a

TA

nee

ds

asse

ssm

ent

that

was

per

form

ed

by

MC

M d

uri

ng

Mar

ch 2

01

3.

The

CB

L h

as a

go

od

re

gula

tory

an

d

sup

ervi

sory

fra

mew

ork

fo

r su

per

visi

ng

the

Isla

mic

ban

kin

g ac

tivi

ties

in t

he

Lib

yan

fi

nan

cial

sec

tor.

Som

e n

ew

Isla

mic

B

anki

ng

Cir

cula

rs a

re

issu

ed b

y A

pri

l 2

01

3

Dra

ft Is

lam

ic

Ban

kin

g R

egu

lati

on

s P

ost

po

ned

_ _

_ -

TA h

as n

ot

fully

re

sum

ed y

et d

ue

to

secu

rity

co

nd

itio

ns

and

pen

din

g a

TA

nee

ds

asse

ssm

ent

that

was

per

form

ed

by

MC

M d

uri

ng

Mar

ch 2

01

3.

Deb

t M

anag

emen

t an

d M

on

ey

Mar

ket

Dev

elo

pm

ent

Au

ctio

ns

Syst

em f

or

Man

agin

g liq

uid

ity

is in

p

lace

An

au

ctio

n

syst

em is

im

ple

men

ted

an

d u

sed

fo

r is

suan

ce o

f m

on

ey m

arke

t in

stru

men

ts

by

Oct

. 20

12

Trai

nin

g fo

r C

BL

staf

f an

d

mar

ket

par

tici

pan

ts f

or

the

fin

al

imp

lem

enta

tio

n

of

the

auct

ion

sy

stem

.

Can

cele

d

_

_ _

-

12

0

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Au

ctio

n s

yste

m f

or

Man

agin

g Li

qu

idit

y is

in

pla

ce

Exce

ss li

qu

idit

y is

an

no

un

ced

re

gula

rly

star

tin

g O

cto

ber

20

12

Han

ds-

on

tr

ain

ing

for

calc

ula

tio

n o

f ex

cess

liq

uid

ity.

Can

cele

d

_

_ _

-

Pu

blic

Fin

anci

al

Man

agem

ent

Fin

anci

al c

om

plia

nce

is

stre

ngt

hen

ed t

hro

ugh

an

eff

ecti

ve C

CS

as a

n

inte

gral

co

mp

on

ent

of

the

acco

un

tin

g fr

amew

ork

, alo

ng

wit

h

mo

re s

trin

gen

t re

po

rtin

g re

qu

irem

ents

, an

d

bet

ter

def

ined

inte

rnal

au

dit

fu

nct

ion

s

Act

ion

pla

n

app

rove

d b

y M

OF

(Feb

ruar

y 2

01

3)

TA o

n F

inan

cial

co

ntr

ol a

nd

CC

S P

ost

po

ned

_ _

_ -

Po

stp

on

ed b

y FA

D

An

imp

rove

d a

cco

un

tin

g fr

amew

ork

cap

able

of,

am

on

g o

ther

s,

clas

sify

ing

and

rep

ort

ing

info

rmat

ion

in a

man

ner

co

nsi

sten

t w

ith

in

tern

atio

nal

ly a

ccep

ted

st

and

ard

s

Rev

ised

cl

assi

fica

tio

n

app

rove

d b

y M

OF

(Ap

ril 2

01

3)

TA o

n b

ud

get

clas

sifi

cati

on

P

ost

po

ned

_ _

_ -

On

-ho

ld, t

he

pre

-req

uis

ite

was

th

e m

issi

on

wit

h

FAD

Rev

enu

e A

dm

inis

trat

ion

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce

Man

agem

ent

Dep

end

ent

up

on

re

com

men

dat

ion

s m

ade

Follo

w-u

p v

isit

to

su

pp

ort

im

ple

men

tati

on

o

f re

form

s

Po

stp

on

ed

_

_ _

- P

ost

po

ned

du

e to

sec

uri

ty

con

dit

ion

s

121

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Stat

isti

cs

- Th

e q

ual

ity

of

BO

P h

as

imp

rove

d g

rad

ual

ly, i

n

par

ticu

lar

rega

rdin

g re

mit

tan

ces

- A

n F

DI s

urv

ey h

as b

een

co

nd

uct

ed

- Li

bya

co

mp

iles

and

p

ub

lish

es a

n II

P

- T

he

po

pu

lati

on

of

com

pan

ies

to

be

incl

ud

ed in

an

FD

I su

rvey

h

as b

een

id

enti

fied

(e

nd

-FY2

01

3)

- F

irst

el

emen

ts o

f an

II

P h

ave

bee

n

asse

mb

led

(e

nd

-FY2

01

3)

Imp

rovi

ng

BO

P s

tati

stic

s an

d in

itia

tin

g co

mp

ilati

on

of

an II

P

Can

cele

d

_

_ _

-

Imp

rovi

ng

BO

P s

tati

stic

s an

d in

itia

tin

g co

mp

ilati

on

of

an II

P (

follo

w-

up

)

Po

stp

on

ed

_

_ _

-

12

2

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

- Th

e C

PI w

eigh

ts h

ave

bee

n u

pd

ated

bas

ed o

n t

he

resu

lts

of

a n

ew h

ou

seh

old

b

ud

get

surv

ey

- Ex

pan

ded

co

vera

ge o

f th

e P

PI t

o in

clu

de

agri

cult

ure

, co

nst

ruct

ion

, ser

vice

s, a

nd

o

ther

act

ivit

ies

to a

lign

w

ith

th

e p

rod

uct

ion

ac

cou

nts

co

mp

iled

by

the

NA

sta

ff

-Th

e C

PI i

s p

ub

lish

ed

regu

larl

y u

sin

g 2

00

8 w

eigh

ts

and

th

e C

OIC

OP

ap

pro

ach

(e

nd

-FY2

01

3)

- Th

e P

PI i

s p

ub

lish

ed

regu

larl

y (e

nd

-FY

20

13

) af

ter

mis

sin

g d

ata

for

20

10

an

d

20

11

hav

e b

een

es

tim

ated

(e

nd

-FY2

01

3)

- IS

IC R

ev. 4

h

as b

een

im

ple

men

ted

(e

nd

-FY2

01

3)

Imp

rovi

ng

colle

ctio

n a

nd

co

mp

ilati

on

p

ract

ices

fo

r th

e C

PI

Po

stp

on

ed

_

_ _

-

The

mis

sio

n

was

p

ost

po

ned

to

ear

ly

FY2

01

4

bec

ause

of

visa

is

sues

.

Lib

ya T

ota

l

0

_0

0

123

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Sud

an

Ban

kin

g Su

per

visi

on

The

CB

OS

has

a w

ell

fun

ctio

nin

g cr

edit

reg

istr

y th

at is

in li

ne

wit

h

inte

rnat

ion

al s

tan

dar

ds

and

bes

t p

ract

ices

Cre

dit

Reg

istr

y is

in f

ull

op

erat

ion

by

Dec

emb

er

20

12

Follo

w-u

p o

n

Cre

dit

R

egis

try

Do

ne

Sep

-12

2

_

2

4

Cre

dit

Reg

istr

y is

in

full

op

erat

ion

an

d

cred

it r

egis

try

soft

war

e w

ent

into

liv

e p

rod

uct

ion

by

end

20

12

. So

me

min

or

def

icie

nci

es

rem

ain

to

be

add

ress

ed.

Dra

ft c

red

it

bu

reau

re

gula

tio

ns

New

/

Do

ne

Dec

-12

1

-

1

2

The

CB

OS

has

an

up

dat

ed

regu

lato

ry f

ram

ewo

rk t

hat

in

clu

des

co

mp

reh

ensi

ve

inst

ruct

ion

s an

d g

uid

elin

es

abo

ut

the

sup

ervi

sio

n o

f Is

lam

ic b

anki

ng

serv

ices

an

d p

rod

uct

s in

clu

din

g re

gula

tio

ns

abo

ut

the

mea

sure

men

t an

d

man

agem

ent

of

liqu

idit

y ri

sk a

nd

ab

ou

t st

ress

te

stin

g p

rin

cip

les

and

p

ract

ices

- C

BO

S is

sues

n

ew

Reg

ula

tio

ns

on

Li

qu

idit

y m

easu

rem

ent

and

ris

k m

anag

emen

t b

y Ju

ly 2

01

2

- C

BO

S is

sues

n

ew

regu

lati

on

s o

n

stre

ss t

esti

ng

by

Ap

ril 2

01

3

Rev

iew

of

regu

lati

on

s o

n L

iqu

idit

y M

easu

rem

ent

and

Ris

k M

anag

emen

t

Do

ne

May

-12

2

1

_

3

- L

iqu

idit

y m

easu

rem

ent

and

ri

sk m

anag

emen

t re

gula

tio

ns

hav

e b

een

co

mp

lete

d

and

dis

cuss

ed w

ith

th

e B

anki

ng

Sup

ervi

sio

n

Dep

artm

ent

(BSD

) at

CB

OS.

Th

ese

regu

lati

on

s ar

e st

ill

bei

ng

dis

cuss

ed a

t th

e h

igh

er le

vel o

f C

BO

S m

anag

emen

t fo

r is

suan

ce a

t a

late

r st

age.

Dra

ft n

ew

regu

lati

on

s o

n s

tres

s te

stin

g

Po

stp

on

ed

_

_ _

_

Dra

ft O

nsi

te

Insp

ecti

on

M

anu

al

Po

stp

on

ed

_

_ _

_

12

4

TA A

rea

Me

diu

m-T

erm

O

utc

om

e M

ilest

on

e(s

) fo

r FY

20

13

A

ctiv

ity

in

FY2

01

3

Act

ivit

y St

atu

s Ex

ecu

tio

n D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

The

CB

OS

has

eff

ecti

ve

op

erat

ion

al

fram

ewo

rks

incl

ud

ing

man

ual

s fo

r ef

fect

ive

sup

ervi

sio

n o

ver

Isla

mic

ban

ks a

nd

a

stro

ng

enfo

rcem

ent

fram

ewo

rk.

CB

OS

ado

pts

th

e n

ew o

nsi

te

met

ho

do

logy

an

d m

anu

al b

y A

pr.

20

13

Ass

essm

ent

of

On

site

Su

per

visi

on

P

ract

ices

Do

ne

No

v-1

2

2.5

1

.5

1.5

5

.5

-A

sses

smen

t o

f o

nsi

te

sup

ervi

sio

n

pra

ctic

es w

as

com

ple

ted

an

d

dis

cuss

ed w

ith

C

BO

S.

- N

o r

esp

on

se

fro

m C

BO

S ye

t o

n t

he

dra

ftin

g o

f th

e n

ew

insp

ecti

on

m

anu

al.

Dra

ft O

nsi

te

Insp

ecti

on

M

anu

al

Po

stp

on

ed

_

_ _

_

Deb

t M

anag

emen

t an

d M

on

ey

Mar

ket

Dev

elo

pm

ent

Reo

rgan

izat

ion

of

Deb

t M

anag

emen

t o

ffic

e ac

cord

ing

to

inte

rnat

ion

al

stan

dar

ds

New

o

rgan

izat

ion

al

stru

ctu

re f

or

deb

t o

ffic

e is

im

ple

men

ted

b

y Se

pte

mb

er

20

12

Trai

nin

g an

d

cap

acit

y b

uild

ing

for

new

fu

nct

ion

s o

f d

ebt

man

agem

ent

off

ice

Can

cele

d

_

_ _

_

Au

ctio

ns

Syst

em f

or

Man

agin

g liq

uid

ity

is in

p

lace

Ru

les

for

auct

ion

sys

tem

is

sued

to

ban

ks

by

Oct

ob

er

20

12

Ru

les

for

auct

ion

sy

stem

p

rep

ared

Can

cele

d

_

_ _

_

125

TA A

rea

Me

diu

m-T

erm

O

utc

om

e M

ilest

on

e(s

) fo

r FY

20

13

A

ctiv

ity

in

FY2

01

3

Act

ivit

y St

atu

s Ex

ecu

tio

n

Dat

e

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Ex

iste

nce

of

an

inte

rban

k m

arke

t

Ru

les

for

in

terb

ank

mar

ket

issu

ed

by

Ap

ril 2

01

3

Stre

ngt

hen

CB

OS

cap

acit

y fo

r th

e d

evel

op

men

t o

f an

inte

rban

k m

arke

t

Do

ne

Jun

-12

1

1

_

2

Pu

blic

Fi

nan

cial

M

anag

emen

t

An

MTF

F is

dev

elo

ped

an

d is

use

d o

n a

ro

llin

g b

asis

fo

r b

ud

get

pre

par

atio

n

MTF

F gu

idel

ines

su

bm

itte

d t

o

cab

inet

(A

pri

l 2

01

3)

Ass

ist

wit

h M

TFF

Do

ne

Jul-

12

2

2

2

6

Par

tial

ly

ach

ieve

d,

pri

ori

ty

mea

sure

s in

th

e ar

eas

of

med

ium

-ter

m

fisc

al

fore

cast

ing

and

an

alys

is, b

ud

get

pla

nn

ing

and

p

rep

arat

ion

, ex

pen

dit

ure

co

ntr

ol,

and

fi

scal

ac

cou

nti

ng

and

re

po

rtin

g w

ere

iden

tifi

ed.

Furt

her

su

pp

ort

b

y th

e au

tho

riti

es is

n

eed

ed.

12

6

TA A

rea

Me

diu

m-T

erm

O

utc

om

e M

ilest

on

e(s

) fo

r FY

20

13

A

ctiv

ity

in

FY2

01

3

Act

ivit

y St

atu

s Ex

ecu

tio

n

Dat

e

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Deb

t M

anag

emen

t an

d M

on

ey

Mar

ket

Dev

elo

pm

ent

Reo

rgan

izat

ion

of

Deb

t M

anag

emen

t o

ffic

e ac

cord

ing

to

inte

rnat

ion

al s

tan

dar

ds

New

o

rgan

izat

ion

al

stru

ctu

re f

or

deb

t o

ffic

e is

im

ple

men

ted

b

y Se

pte

mb

er

20

12

Trai

nin

g an

d

cap

acit

y b

uild

ing

for

new

fu

nct

ion

s o

f d

ebt

man

agem

ent

off

ice

Can

cele

d

_

_ _

-

Au

ctio

ns

Syst

em f

or

Man

agin

g liq

uid

ity

is in

p

lace

Ru

les

for

auct

ion

sy

stem

issu

ed

to b

anks

by

Oct

ob

er 2

01

2

Ru

les

for

auct

ion

sy

stem

pre

par

ed

Can

cele

d

_

_ _

-

Exis

ten

ce o

f an

in

terb

ank

mar

ket

Ru

les

for

in

terb

ank

mar

ket

issu

ed

by

Ap

ril 2

01

3

Stre

ngt

hen

CB

OS

cap

acit

y fo

r th

e d

evel

op

men

t o

f an

inte

rban

k m

arke

t

Do

ne

Jun

-12

1

1

_

2

127

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Pu

blic

Fin

anci

al

Man

agem

ent

An

MTF

F is

dev

elo

ped

an

d

is u

sed

on

a r

olli

ng

bas

is

for

bu

dge

t p

rep

arat

ion

MTF

F gu

idel

ines

su

bm

itte

d t

o

cab

inet

(A

pri

l 20

13

)

Ass

ist

wit

h

MTF

F D

on

e Ju

l-1

2

2

2

2

6

Par

tial

ly a

chie

ved

, p

rio

rity

mea

sure

s in

th

e ar

eas

of

med

ium

-ter

m

fisc

al f

ore

cast

ing

and

an

alys

is,

bu

dge

t p

lan

nin

g an

d p

rep

arat

ion

, ex

pen

dit

ure

co

ntr

ol,

and

fis

cal

acco

un

tin

g an

d

rep

ort

ing

wer

e id

enti

fied

. Fu

rth

er

sup

po

rt b

y th

e au

tho

riti

es is

n

eed

ed.

An

act

ive

cash

m

anag

emen

t fu

nct

ion

is

dev

elo

ped

to

iden

tify

at

the

earl

iest

op

po

rtu

nit

y te

mp

ora

ry a

nd

per

man

ent

(or

stru

ctu

ral)

cas

h

sho

rtfa

lls s

o t

hat

th

e la

tter

is

eff

ecti

vely

use

d f

or

exp

end

itu

re a

dju

stm

ents

Cas

h

man

agem

ent

pla

ns

app

rove

d b

y th

e C

abin

et

(Ap

ril 2

01

3)

Follo

w-u

p

assi

stan

ce o

n

cash

m

anag

emen

t

Po

stp

on

ed

_

_ _

- P

ost

po

ned

by

the

auth

ori

ties

Bu

dge

t cl

assi

fica

tio

n is

im

pro

ved

an

d p

erm

its

a b

ette

r tr

acki

ng

of

exp

end

itu

res

acco

rdin

g to

th

e C

OFO

G

Bu

dge

t d

epar

tmen

t h

as p

rep

ared

a

guid

e ex

pla

inin

g h

ow

to

use

th

e

TA m

issi

on

on

fu

nct

ion

al

clas

sifi

cati

on

C

OFO

G

Do

ne

Ap

r-1

3

2

2

2

6

Par

tial

ly a

chie

ved

, a

guid

e sh

ou

ld b

e p

rep

ared

du

rin

g FY

20

14

12

8

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

fun

ctio

nal

cl

assi

fica

tio

n

(Mar

ch

20

13

)

Rev

enu

e A

dm

inis

trat

ion

Enh

ance

d t

ax s

yste

ms

Dra

ft T

PC

d

evel

op

ed

wit

hin

6

mo

nth

s af

ter

TA

Sup

po

rt

dev

elo

pm

ent

of

TPC

D

on

e Ju

n-1

2

1

1

2

4

Pre

limin

ary

dra

ft

sub

mit

ted

in

Mar

ch 2

01

3

Stre

amlin

ed a

nd

au

tom

ated

op

erat

ion

s

Bri

ng

regi

ster

up

to

dat

e &

si

mp

lify

regi

stra

tio

n

pro

ced

ure

Stre

ngt

hen

re

gist

rati

on

an

d s

up

po

rt

re-e

ngi

nee

rin

g o

f b

usi

nes

s p

roce

sses

in

LTO

/MTO

s

Po

stp

on

ed

_

_ _

- R

epla

ced

by

TA o

n

TPC

fin

aliz

atio

n

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce M

anag

emen

t

Imp

rove

d

aud

it

cap

acit

y

Stre

ngt

hen

ri

sk-b

ased

au

dit

an

d

dev

elo

p a

ud

it

man

ual

Do

ne

Jan

-13

1

1

.5

2.5

5

Rec

om

men

dat

ion

s m

ade

on

st

ren

gth

enin

g th

e m

and

ate

and

o

per

atio

nal

ro

le o

f th

e ce

ntr

al

com

plia

nce

d

ivis

ion

. Fu

rth

er

com

mit

men

t is

n

eed

ed t

o f

ost

er

imp

lem

enta

tio

n.

129

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

En

han

ced

tax

sys

tem

s

Dra

ft T

PC

fi

nal

ized

wit

hin

3

mo

nth

s af

ter

TA

Sup

po

rt

dev

elo

pm

ent

of

TPC

N

ew/D

on

e M

ar-1

3

1

1

2

4

Mo

nit

or

pro

gres

s d

uri

ng

FY1

4 a

nd

as

sess

nee

d f

or

furt

her

TA

Stat

isti

cs

• Th

e FD

I su

rvey

is

con

du

cted

, an

d t

he

resu

lts

are

pu

blis

hed

. Su

dan

eff

ecti

vely

p

arti

cip

ates

in t

he

CD

IS

• C

apit

al t

ran

sfer

s ar

e id

enti

fied

an

d r

eco

rded

in

th

e B

OP

•

The

com

pila

tio

n

syst

em is

ad

apte

d t

o t

he

new

eco

no

mic

ter

rito

ry

of

the

cou

ntr

y (e

.g.

resi

den

ce s

tatu

s o

f b

ank

acco

un

t h

old

ers,

FD

I re

lati

on

ship

s w

ith

So

uth

Su

dan

) •

BO

P a

nd

IIP

are

co

mp

iled

acc

ord

ing

to

BP

M6

met

ho

do

logy

• Th

e FD

I su

rvey

p

op

ula

tio

n h

as

bee

n id

enti

fied

(e

nd

-Ju

ne

20

12

)•

The

Cen

tral

B

ure

au o

f St

atis

tics

has

p

rovi

ded

an

es

tim

ate

of

the

cost

of

the

surv

ey (

end

-Se

pte

mb

er

20

12

) •

If n

eces

sary

, ex

tern

al f

un

din

g h

as b

een

se

cure

d b

y th

e au

tho

riti

es

(en

d-F

Y20

13

)

Imp

lem

enta

tio

n

of

an F

DI s

urv

ey

Do

ne

Jul-

12

1

1

_

2

The

surv

ey

po

pu

lati

on

has

b

een

iden

tifi

ed.

- Th

e re

com

men

dat

ion

is

to

co

nd

uct

th

e su

rvey

as

a jo

int

un

der

taki

ng

bet

wee

n C

BO

S,

Min

istr

y o

f In

vest

men

t an

d

CB

S to

min

imiz

e co

sts

Follo

w-u

p o

n

Ap

ril-

May

20

12

m

ult

i-se

cto

r st

atis

tics

m

issi

on

an

d o

n

imp

lem

enta

tio

n

of

FDI s

urv

ey.

Do

ne

Jan

-13

2

1

_

3

• A

new

bas

e ye

ar h

as

bee

n im

ple

men

ted

•

Sou

rce

dat

a h

ave

imp

rove

d

• Su

bje

ct t

o

fin

din

gs o

f th

e m

ult

i-se

cto

r st

atis

tics

m

issi

on

of

Ap

ril/

May

20

12

Follo

w u

p o

n

mu

lti-

sect

or

stat

isti

cs

mis

sio

n o

f A

pri

l/M

ay 2

01

2

Do

ne

Jan

-13

2

.5

_ 2

4

.5

Mis

sio

n s

etu

p in

FY

13

to

fo

llow

up

o

n t

he

mu

lti-

sect

or

mis

sio

n.

No

mile

sto

nes

h

ad b

een

d

efin

ed.

13

0

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Bet

ter

com

plia

nce

wit

h

inte

rnat

ion

al s

tan

dar

ds

for

the

com

pila

tio

n o

f p

rice

sta

tist

ics

Follo

w u

p o

n

mu

lti-

sect

or

stat

isti

cs

mis

sio

n o

f A

pri

l/M

ay 2

01

2

for

PP

I co

mp

ilati

on

New

/Do

ne

Sep

-12

2

_

2

4

Mis

sio

n s

etu

p in

FY1

3 t

o f

ollo

w u

p

on

th

e m

ult

i-se

cto

r m

issi

on

. N

o m

ilest

on

es

had

bee

n

def

ined

.

Sud

an T

ota

l

23

1

3

19

5

5

131

TA

Are

a M

ilest

on

e(s

) fo

r FY

20

13

A

ctiv

ity

in

FY2

01

3

Act

ivit

y St

atu

s Ex

ecu

tio

n

Dat

e

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Syri

a

Ban

kin

g Su

per

visi

on

The

CB

S h

as a

wel

l fu

nct

ion

ing

cred

it

regi

stry

Cre

dit

Reg

istr

y h

as a

rev

iew

ed

acti

on

pla

n f

or

imp

lem

enta

tio

n

of

enh

ance

men

ts

Follo

w-u

p o

n

Cre

dit

Reg

istr

y P

ost

po

ned

_ _

_ -

Po

stp

on

emen

t d

ue

to s

ecu

rity

si

tuat

ion

.

Deb

t M

anag

emen

t an

d M

on

ey

Mar

ket

Dev

elo

pm

ent

Imp

rove

Mar

ket

infr

astr

uct

ure

Issu

ance

of

gove

rnm

ent

secu

riti

es

acco

rdin

g to

bes

t m

arke

t p

ract

ices

b

y M

ay o

f 2

01

3

Rev

iew

of

gove

rnm

ent

secu

riti

es

issu

ed

Can

cele

d

_

_ _

-

Exis

ten

ce o

f an

in

terb

ank

mar

ket

Ru

les

for

inte

rban

k m

arke

t ar

e is

sued

by

Au

gust

20

13

Issu

ance

of

mo

ney

mar

ket

inst

rum

ents

or

the

use

of

deb

t in

stru

men

ts f

or

inte

rban

k m

arke

t an

d

trad

ing

Can

cele

d

_

_ _

-

Pu

blic

Fi

nan

cial

M

anag

emen

t

Imp

rove

d P

FM s

yste

m

(mea

sure

d t

hro

ugh

in

tern

atio

nal

ly

reco

gniz

ed d

iagn

ost

ic

too

ls, s

uch

as

PEF

A)

PFM

act

ion

pla

n

app

rove

d b

y th

e M

inis

ter

of

Fin

ance

(A

pri

l 2

01

3)

FAD

/ M

ETA

C

follo

w-u

p

mis

sio

n o

n P

FM

asse

ssm

ent

Po

stp

on

ed

_

_ _

- O

n-h

old

, fo

r se

curi

ty r

easo

ns

13

2

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Rev

enu

e A

dm

inis

trat

ion

Stre

ngt

hen

ed s

elf-

asse

ssm

ent

and

ris

k-b

ased

co

mp

lian

ce

Man

agem

ent

Dep

end

ent

up

on

re

com

men

dat

ion

s m

ade

Follo

w-u

p v

isit

to

su

pp

ort

im

ple

men

tati

on

o

f re

form

s

Po

stp

on

ed

_

_ _

- d

ue

to o

n-g

oin

g u

nre

st

Stat

isti

cs

- Th

e q

ual

ity

of

BO

P a

nd

II

P h

as im

pro

ved

gr

adu

ally

-

BO

P s

tati

stic

s ar

e co

mp

iled

at

a h

igh

er

freq

uen

cy (

qu

arte

rly)

-

EXD

sta

tist

ics

are

sub

mit

ted

qu

arte

rly

to

the

QED

S d

atab

ase

- A

nn

ual

BO

P a

nd

II

P d

ata

for

20

10

an

d 2

01

1 a

re

read

y fo

r M

ETA

C

revi

ew b

y en

d-

FY2

01

3

- Se

mi-

ann

ual

d

ata

are

also

av

aila

ble

(en

d o

f FY

20

13

)

Imp

rovi

ng

BO

P

and

IIP

st

atis

tics

P

ost

po

ned

_ _

_ -

Po

stp

on

emen

t d

ue

to s

ecu

rity

si

tuat

ion

Syri

a To

tal

-

- -

0

133

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

We

st B

ank

and

Gaz

a

Ban

kin

g Su

per

visi

on

The

PM

A h

as a

new

ris

k-fo

cuse

d o

nsi

te in

spec

tio

n

man

ual

th

at is

tai

lore

d t

o

the

risk

pro

file

of

each

b

anki

ng

inst

itu

tio

n a

nd

th

at t

akes

into

co

nsi

der

atio

n t

he

late

st

dev

elo

pm

ents

in b

anki

ng

sup

ervi

sio

n

- N

ew o

nsi

te

insp

ecti

on

M

anu

al is

ad

op

ted

by

PM

A

by

Oct

ob

er 2

01

2 -

On

site

man

ual

is

in p

roce

ss o

f im

ple

men

tati

on

b

y A

pri

l 20

13

Dra

ft O

nsi

te

Insp

ecti

on

M

anu

al

Do

ne

Oct

-12

2

_

1.5

3

.5

-N

ew e

xper

t w

as

app

oin

ted

fo

r th

e as

sign

men

t -

th

e p

roje

ct w

ill

be

taki

ng

mo

re

tim

e to

ad

dre

ss

the

risk

-fo

cuse

d

asp

ect

of

ove

rall

sup

ervi

sio

n a

nd

n

ot

on

ly

insp

ecti

on

. -

So

me

pro

gres

s h

as b

een

mad

e to

war

ds

the

dra

ftin

g o

f th

e n

ew m

anu

al w

hic

h

is e

xpec

ted

to

be

com

ple

ted

by

end

o

f FY

20

14

.

Follo

w-u

p o

n

Ris

k-Fo

cuse

d

Sup

ervi

sio

n

Man

ual

Do

ne

Ap

r-1

3

2

_ 2

4

Trai

nin

g o

n

On

site

In

spec

tio

n

Man

ual

Po

stp

on

ed

_

_ _

-

The

PM

A h

as a

new

o

ffsi

te s

up

ervi

sio

n

syst

em t

hat

en

han

ces

the

wo

rk o

f th

eir

off

site

m

on

ito

rin

g an

d a

nal

ysis

in

ord

er t

o c

om

ple

men

t th

e ac

tivi

ties

per

form

ed

at t

he

leve

l of

on

site

su

per

visi

on

- N

ew o

ffsi

te

sup

ervi

sio

n

man

ual

is

ado

pte

d b

y P

MA

b

y A

pri

l 20

13

Ass

essm

ent

of

off

site

su

per

visi

on

C

ance

led

_ _

_ -

This

is b

ein

g d

on

e as

par

t o

f th

e ab

ove

pro

ject

.

13

4

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Deb

t M

anag

emen

t an

d M

on

ey

Mar

ket

Dev

elo

pm

ent

Reo

rgan

izat

ion

of

Deb

t M

anag

emen

t o

ffic

e ac

cord

ing

to

inte

rnat

ion

al s

tan

dar

ds

Op

erat

ion

al

Gu

idel

ines

an

d

Man

ual

s ar

e p

rep

ared

by

Ap

ril 2

01

3

Cap

acit

y b

uild

ing

in

deb

t m

anag

emen

t fu

nct

ion

s

Can

cele

d

_

_ _

-

Dev

elo

pm

ent

of

pri

mar

y an

d s

eco

nd

ary

mar

kets

fo

r go

vern

men

t se

curi

ties

A s

pec

ial

dep

artm

ent

at

PM

A, i

s es

tab

lish

ed t

o

faci

litat

e is

suan

ce o

f go

vern

men

t T

Bill

s b

y Ja

nu

ary

20

13

Ass

ist

in

inst

itu

tio

nal

se

t u

p a

t P

MA

fo

r au

ctio

ns

of

Go

vern

men

t se

curi

ties

Can

cele

d

_

_ _

-

Dev

elo

pm

ent

of

pri

mar

y an

d s

eco

nd

ary

mar

kets

fo

r go

vern

men

t se

curi

ties

Issu

ance

of

gove

rnm

ent

T

bill

s b

y Ja

nu

ary

20

13

Cap

acit

y b

uild

ing

for

staf

f at

PM

A

and

MO

F an

d

trai

nin

g fo

r m

arke

t p

arti

cip

ants

Do

ne

Dec

-12

_

_ 2

2

Pu

blic

Fi

nan

cial

M

anag

emen

t

Imp

rove

d P

FM s

yste

m

(mea

sure

d t

hro

ugh

in

tern

atio

nal

ly

reco

gniz

ed d

iagn

ost

ic

too

ls, s

uch

as

PEF

A)

PFM

ref

orm

st

rate

gy a

nd

ac

tio

n p

lan

s u

pd

ated

(F

ebru

ary

20

13

)

Follo

w-u

p

mis

sio

n o

n

the

Dec

emb

er

20

11

FA

D

mis

sio

n

Do

ne

Jan

-13

1

.5

_ 1

.5

3

Ach

ieve

d

135

TA A

rea

Me

diu

m-T

erm

Ou

tco

me

Mile

sto

ne

(s)

for

FY2

01

3

Act

ivit

y in

FY

20

13

A

ctiv

ity

Stat

us

Exe

cuti

on

D

ate

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Stat

isti

cs

- A

id-r

elat

ed t

ran

sact

ion

s ar

e ap

pro

pri

atel

y cl

assi

fied

-

Co

nsi

sten

cy b

etw

een

B

OP

flo

ws

(cu

rren

t an

d

cap

ital

acc

ou

nts

) an

d II

P

sto

cks

has

bee

n

asce

rtai

ned

-

The

BO

P a

nd

th

e II

P a

re

com

pile

d a

cco

rdin

g to

B

PM

6 m

eth

od

olo

gy

- A

n IT

RS

is b

ein

g d

evel

op

ed, s

ub

ject

to

a

po

siti

ve f

easi

bili

ty s

tud

y

- Th

e P

CB

S h

as

colle

cted

dat

a o

n r

eal e

stat

e in

vest

men

t b

y n

on

-res

iden

ts

fro

m

Mu

nic

ipal

itie

s (e

nd

-FY2

01

3)

- R

evis

ed II

P

dat

a w

ith

ap

pro

pri

ate

com

po

siti

on

of

rese

rve

asse

ts

hav

e b

een

su

bm

itte

d t

o

STA

fo

r p

ub

licat

ion

(e

nd

-Ju

ne

20

12

)

Imp

rovi

ng

BO

P a

nd

IIP

st

atis

tics

D

on

e Ja

n-1

3

2

1

_ 3

-Th

e P

CB

S h

as

imp

lem

ente

d

esti

mat

ion

s o

f re

al

esta

te in

vest

men

t b

y n

on

-res

iden

ts

by

com

bin

ing

seve

ral s

ou

rces

(e

.g. h

ou

sin

g su

rvey

s,

geo

grap

hic

al

dis

trib

uti

on

of

real

es

tate

pri

ces)

. -

Lack

of

reso

urc

es

has

pre

ven

ted

ti

mel

y ex

ecu

tio

n

of

the

mile

sto

ne;

sh

ou

ld b

e co

mp

lete

d b

y en

d-

FY2

01

3.

Imp

rovi

ng

BO

P a

nd

IIP

st

atis

tics

(f

ollo

w-u

p)

Po

stp

on

ed

_

_ _

0

A s

et o

f le

adin

g an

d h

igh

fr

equ

ency

ind

icat

ors

u

sefu

l fo

r ea

rly

det

ecti

on

o

f ec

on

om

ic t

ren

ds

and

ri

sks

has

bee

n d

evel

op

ed

Dev

elo

pin

g a

set

of

lead

ing

& h

igh

fr

equ

ency

in

dic

ato

rs

Po

stp

on

ed

_

_ _

0

The

mis

sio

n w

as

sup

po

sed

to

be

carr

ied

ou

t in

co

op

erat

ion

wit

h

IMF

STA

. It

was

p

ost

po

ned

b

ecau

se o

f d

iffi

cult

ies

in

iden

tify

ing

a su

itab

le e

xper

t.

We

st B

ank

and

Gaz

a To

tal

7.5

1

7

1

5.5

13

6

TA A

rea

Me

diu

m-T

erm

O

utc

om

e M

ilest

on

e(s

) fo

r FY

20

13

A

ctiv

ity

in

FY2

01

3

Act

ivit

y St

atu

s Ex

ecu

tio

n

Dat

e

Inp

uts

No

tes

MET

AC

Fu

nd

ed

RA

(B

eir

ut)

R

A

(Mis

sio

n)

STX

To

tal

Ye

men

Ban

kin

g Su

per

visi

on

The

CB

Y h

as a

n u

pd

ated

re

gula

tory

fra

mew

ork

th

at is

in li

ne

wit

h B

asel

co

re p

rin

cip

les

for

effe

ctiv

e b

anki

ng

sup

ervi

sio

n

- R

egu

lato

ry f

ram

ewo

rk

in Y

emen

is a

sses

sed

by

July

20

12

Dra

ftin

g n

ew

regu

lati

on

s C

ance

led

_ _

_ -

Dif

fere

nt

pri

ori

ties

fo

r au

tho

riti

es

CB

Y su

per

viso

rs p

oss

ess

the

nec

essa

ry s

kills

to

p

erfo

rm a

n e

ffec

tive

an

d p

rud

enti

al

sup

ervi

sio

n o

f b

anks

’ ac

tivi

ties

.

Tr

ain

ing

on

B

asel

R

equ

irem

ents

C

ance

led

_ _

_ -

Dif

fere

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d

sto

cks

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mi-

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ual

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OP

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ths

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sub

mit

ted

to

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by

end

-FY

13

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stat

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tati

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ance

led

_ _

_ -

Imp

rovi

ng

BO

P

stat

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cs a

nd

II

P s

tati

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s (f

ollo

w-u

p)

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stp

on

ed

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Po

stp

on

emen

t d

ue

to

secu

rity

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men

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4.5

2

1

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l pe

rso

n w

ee

ks

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4

64

6

9

23

7

141

-ANNEX V: LIST OF SEMINARS/WORKSHOPS FY2013

Title of Seminar/ Workshop Location Collaborating

Institution No. of

Participants

Workshop on IPSAS Cash Accounting Lebanon USAID 20

Workshop on Islamic Sukuk Jordan 27

Workshop on Basel III: Challenges and Implications for the region

Egypt USAID 26

Effective Administration of the VAT Morocco USAID 38

Workshop on Regulation and Supervision of Islamic banks

Kuwait CEF 29

Workshop on Medium-Term Frameworks for Fiscal Policy and Budgeting

Lebanon 27

Workshop on Asymmetries in Bilateral Remittances Data

Jordan ESCWA / CBJ /

BDL 35

Effective Risk Management of Tax Compliance

Jordan 35

Total 237

142

ANNEX VI: METAC STEERING COMMITTEE MEMBERS

METAC Country Representatives Afghanistan Mr. Khan Afzal Hadawal First Deputy Governor Central Bank of Afghanistan E-mail: khan.afzal@centralbank.gov.af Egypt Ms. Azza El-Sayed Director General of International Institutions Department Ministry of Finance E-mail: aelsayed@mof.gov.eg Iraq Mr. Ali Yousef Al Shukri Acting Minister of Finance / Minister of Planning Ministry of Finance E-mail: Iraqmof2008@yahoo.com Jordan Dr. Omar Al Zoubi Economic Advisor to the Minister Ministry of Finance E-mail: omar.zo@mof.gov.jo Lebanon H.E. Minister Mohammad Safadi Minister of Finance Ministry of Finance Email: minister@finance.gov.lb Libya Mr. Ali Ramadan Shnebesh Director Research and Statistics Department Central Bank of Libya E-mail: ecorestat@cbl.gov.ly; arsh1950@yahoo.com

143

Sudan Ms. Amal Ahmed Elhassan Elkabeir Deputy Director for the Budget Control Unit Ministry of Finance and National Economy E-mail: amalekabeir@gmail.com Syria Mr. Mohammad Issa Director of International Co-operation Department Ministry of Finance E-mail: mofissa@mail.sy West Bank and Gaza Mr. Ragheb Budeiri Development Projects Management Unit / Governor’s Office Palestine Monetary Authority E-mail: rbudeiri@pma.ps Yemen Mr. Tarek A. Al Sharafi Director General of External Financial Relations Department Ministry of Finance E-mail: sharafi73@yahoo.com Donor Representatives European Commission Ms. Raffaella Iodice Head of Unit Geographical Coordination Neighbourhood South Europe Aid Co-operation Office Brussels, Belgium E-mail: Raffaella.IODICE@ec.europa.eu European Investment Bank Mr. Pedro José Frias de Lima Economic Advisor/Head of the Development Economics Unit Luxembourg E-mail: p.delima@eib.org; delima@eib.org

144

France Mr. Jacques de Lajugie Head of Economic Mission for the Near East Embassy of France Beirut, Lebanon E-mail: jacques.delajugie@dgtresor.gouv.fr Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Mr. David Nguyen-Thanh Head of Section - Public Finance and Administrative Reform Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH E-mail: david.nguyen-thanh@giz.de Kuwait Mr. Ishaq Abdulkarim Director of International Economic Co-operation Dept. Economic Affairs Ministry of Finance E-mail: iabdulkarim@mof.gov.kw Oman Mr. Rashid Ali Al Khaify Director of Treasury Ministry of Finance E-mail: rashid.khaifi@mof.gov.om

145

METAC STAFF PROFILES

The Center is staffed with a Center Coordinator, four resident advisors, and four support staff. The Center Coordinator has responsibility for leadership and management of the Center’s activities and staff. The resident advisors deliver training and advice in their respective areas of competence, and coordinate with other technical assistance providers. The Center also makes significant use of short-term experts.

Center Coordinator Mr. Mohamad Elhage E-mail: melhage@imf.org

Prior to METAC, Mr. Elhage was an Advisor and Senior Budget Manager in the Institute for Capacity Development in the International Monetary Fund (IMF). Mr. Elhage has more than 20 years experience at the IMF. He served on the Executive Board and as a Senior Economic Advisor at the Central Bank of Libya. His Fund experience includes dealing with all aspects of

training, managing technical assistance programs, and leading surveillance and program missions to countries in the Middle East and Central Asia region. He was the IMF mission chief for Afghanistan, Libya, and United Arab Emirates. Before joining the IMF in 1992, Mr. Elhage worked as an economist in the United States Department of Commerce.

Banking Supervision Advisor Mr. Rachid Awad E-mail: rawad@imf.org

Before joining METAC in May 2011, Mr. Awad served for more than two years as the IMF resident advisor for banking supervision at the Central Bank of Libya (CBL). He assisted the CBL in implementing the Bank Restructuring program that started in 2005 and in developing and implementing an action plan to align Banking Supervision in Libya with international standards and best practices. Prior to that, Mr. Awad worked for more than 11 years at the Banking Control Commission of Lebanon (BCCL) as a senior examiner in the Off-Site supervision function. During his career at the BCCL, Mr. Awad played an active role in drafting many regulations and developing supervision practices, in particular those related to implementing IFRS and Basel standards in the Lebanese Banking Sector.

146

Multisector Statistics Advisor Mr. Jean Galand E-mail: jgaland@imf.org

Mr. Galand joined METAC in August 2010, after five years as a Senior Economist in the Balance of Payments Division of the IMF Statistics Department, dealing in particular with external debt statistics methodology and development. Earlier in his career, he worked for over 10 years in various positions in the Balance of Payments Directorate of the Banque de France, before taking up a three-year assignment for the IMF as a resident expert at the Central Bank of West African States in Dakar, to oversee the overhaul of the regional balance of payments statistics compilation system. Mr. Galand then joined the External Statistics Division of the European Central Bank in Frankfurt where his main responsibility was to help Accession Countries meet the external statistics requirements prior to their joining the European Union.

Revenue Administration Advisor Ms. Manal Assir E-mail: massir@imf.org

Ms. Assir has more than 16 years of experience in tax administration and tax system reforms. Before joining METAC in December 2009, she was the Director of the United Nations Development Program (UNDP) Tax Reform Program in Lebanon. Since 2005, she has been a member of the IMF Fiscal Affairs Department panel of experts. From 2001 until 2005, she directed a World Bank project aiming at the modernization of the Cadastre / Land Registry operations in Lebanon. She has been a panel expert of a number of international organizations and conducted several evaluation and TA missions. She had also worked as a senior management consultant in modeling and developing financial and tax information systems in Canada and the Middle East. Ms. Assir had held a part-time instructor position at the Saint-Joseph University where she taught project management modules.

Public Financial Management Advisor Mr. Jacques Charaoui E-mail: jcharaoui@imf.org

Before joining METAC in September 2011, Mr. Jacques Charaoui served as a Project Manager for a World Bank reform project at the Ministry of Finance of Lebanon. The project aims at improving efficiency of public financial resources through the implementation of a number of core inter-linked reforms in budget preparation and execution and in debt and aid management. He provided technical guidance on various project components, focusing mainly on Budget Classification and Chart of Account in line with Government Finance Statistics Manual 2001 (GFSM2001), and on a new modern budget system law. Earlier in his career, Mr. Charaoui worked for over 10 years in consulting in Europe where he conducted several evaluation and technical assistance missions.

147

METAC operations are also supported by four local staff:

Mrs. Sawsan Saidi Mrs. Mona Demian Mrs. Nathalie Tawil Mr. Fadi Mehrez Office Manager Administrative Assistant Administrative Assistant Driver / Messenger

      ____________________________________________________________________________________________

Middle East Regional Technical Assistance Center Bourie House 119 Abdallah Beyhum Street Marffaa - Solidere Beirut 2012-6903, Lebanon Tel: +961 (0) 1 972480 | Fax: +961 (0) 1 972429 E-mail: info@imfmetac.org| Website: www.metacimf.org 

Institute for Capacity Development Global Partnerships Division

700 19th Street NWWashington, DC 20431USATel.: 1-202-623-7646Fax: 1-202-623-7106Email: GlobalPartnerships@imf.org