Result Based Management Framework - METAC

G L 

BAL 

PARTNERSHIPS 

Shared Objectives * Joint Action * Real Impact 

September 2013

ACKNOWLEDGMENTS 

The primary contributors to this report are Rachid Awad, Banking 

Supervision Advisor; Jacques Charaoui, Public Financial 

Management Advisor; Manal Assir, Revenue Administration 

Advisor; and Jean Galand, Statistics Advisor. 

Sawsan Saidi, Office Manager; Mona Demian and Nathalie Tawil, 

Administrative Assistants; and Rita Faddoul, former 

Administrative Assistant were responsible for word processing and 

document management. 

Saade Chami, former Coordinator of the Middle East Regional 

Technical Assistance Center (METAC), supervised the overall 

preparation and production of the first edition of this document that 

was issued in April 2012. Mohamad Elhage, METAC Coordinator 

supervised the overall production of this revised and updated 

version of this publication.

1 

Contents 

Acronyms and Abbreviations .............................................................................................. 5 

Preface .................................................................................................................................. 8 

I. Afghanistan ..................................................................................................................... 11 

A. Banking Supervision ................................................................................................. 11 

Past Activities ............................................................................................................ 11 

Work Program ............................................................................................................ 11 

B. Macroeconomic Statistics ......................................................................................... 13 


Work Program ............................................................................................................ 14 

C. Public Financial Management ................................................................................... 15 


Work Program ............................................................................................................ 16 

D. Revenue Administration ........................................................................................... 17 


Work Program ............................................................................................................ 18 

II. Egypt ............................................................................................................................. 20 



Work Program ............................................................................................................ 20 



Work Program ............................................................................................................ 22 



Work Program ............................................................................................................ 24 



Work Program ............................................................................................................ 27 

III. Iraq ............................................................................................................................... 29 



Work Program ............................................................................................................ 29 

B. Macroeconomics Statistics ........................................................................................ 31 


Work Plan .................................................................................................................. 31 



Work Program ............................................................................................................ 32 

IV. Jordan ........................................................................................................................... 34 

A. Banking Supervision ................................................................................................. 34

2 


Work Program ............................................................................................................ 34 



Work Plan .................................................................................................................. 36 



Work Program ............................................................................................................ 39 



Work Program ............................................................................................................ 41 

V. Lebanon ......................................................................................................................... 43 



Work Program ............................................................................................................ 43 



Work Program ............................................................................................................ 45 



Work Program ............................................................................................................ 48 



Work Program ............................................................................................................ 50 

VI. Libya ............................................................................................................................ 53 



Work Program ............................................................................................................ 53 



Work Program ............................................................................................................ 56 



Work Program ............................................................................................................ 58 



VII. Sudan .......................................................................................................................... 62 



Work Program ............................................................................................................ 62 



Work Program ............................................................................................................ 64 

C. Public Financial Management ................................................................................... 66

3 


Work Program ............................................................................................................ 66 



Work Program ............................................................................................................ 69 

VIII. Syria .......................................................................................................................... 71 



Work Program ............................................................................................................ 71 



Work Program ............................................................................................................ 74 



Work Program ............................................................................................................ 76 



Work Program ............................................................................................................ 79 

IX. West Bank and Gaza .................................................................................................... 82 

A. Banking Supervision .............................................................................................. 82 


Work Program ............................................................................................................ 82 

B. Macroeconomic Statistics ...................................................................................... 84 


Work Program ............................................................................................................ 84 

C. Public Financial Management................................................................................ 86 


Work Program ............................................................................................................ 86 

D. Revenue Administration ........................................................................................ 87 


Work Program ............................................................................................................ 88 

X. Yemen ........................................................................................................................... 90 



Work Program ............................................................................................................ 90 



Work Program ............................................................................................................ 92 



Work Program ............................................................................................................ 95 



Work Program ............................................................................................................ 97

4 

Appendix I. Debt Management and Money Markets Developments - Past Activities ...... 99 

Afghanistan ........................................................................................................................ 99 

Jordan ................................................................................................................................. 99 

Lebanon.............................................................................................................................. 99 

Libya ................................................................................................................................ 100 

Sudan................................................................................................................................ 100 

Syria ................................................................................................................................. 101 

West Bank and Gaza ........................................................................................................ 101 

Yemen .............................................................................................................................. 102 

Appendix II. METAC Regional Log Frame FY 2013-2015............................................ 104

5 

ACRONYMS AND ABBREVIATIONS 

ACD 

ARD 

ASYCUDA 

BAC 

BCCL 

BDL 

BOP 

BPM6 

BSD 

BSL 

CAMELS 

CAPMAS 

CAS 

CBE 

CBI 

CBJ 

CBL 

CBOS 

CBS 

CBSS 

CBStat 

CBY 

CDIS 

CDs 

CIASA 

CMA 

CMU 

COA 

COFOG 

COICOP 

COSIT 

CPI 

CPIS 

CSD 

CSO 

DAB 

DI 

DFID 

DOS 

DSA 

EC 

EGGI 

Afghanistan Customs Department 

Afghanistan Revenue Department 

Automated System for Customs Data Management 

Business Activity Code 

Banking Control Commission of Lebanon 

Banque Du Liban 

Balance of Payments 

Balance of Payments and International Investment Position Manual- 

Sixth Edition 

Banking Supervision Department 

Budget System Law 

Acronym for prudential ratios: Capital adequacy, Asset quality, 

Management, Earnings, Liquidity, and market Sensitivity 

Central Agency for Public Mobilization, Egypt 

Central Administration of Statistics, Lebanon 

Central Bank of Egypt 

Central Bank of Iraq 

Central Bank of Jordan 

Central Bank of Libya 

Central Bank of Sudan 

Central Bank of Syria 

Central Bureau of Statistics, Sudan 

Central Bureau of Statistics, Syria 

Central Bank of Yemen 

IMF’s Coordinated Direct Investment Survey 

Certificates of Deposits 

Credit Information and Scoring Agency 

Palestine Capital Market Authority 

Cash Management Unit 

Chart of Accounts 

Classification of the Functions of Government 

Classification of Individual Consumption by Purpose 

Central Office for Statistics and Information Technology, Iraq 

Consumer Price Index 

Coordinated Portfolio Investment Survey 

Census and Statistical Department, Libya 

Central Statistical Organization, Afghanistan and Yemen 

Da Afghanistan Bank 

Direct Investment 

Department for International Development, United Kingdom 

Department of Statistics, Jordan 

Debt Sustainability Analysis 

European Commission 

Economic Growth and Governance Initiative

6 

ETA 

EU 

EWS 

EXD 

FAD 

FMIS 

FSD 

FY 

GAFI 

GBD 

GCTF 

GDDS 

GDP 

GFMIS 2001 

GFS 

GFSM 

GIZ 

GST 

HBS 

HQ 

ICAAP 

IFC 

IFMIS 

IFRS 

IFSB 

IIP 

IMF 

IPSAS 

ISIC 

ISTD 

IT 

ITAS 

ITRS 

KSE 

LTO 

MCD 

MCM 

METAC 

MFD 

MFIs 

MOF 

MoFNE 

MOI 

MoP 

MoPDC 

Egyptian Tax Authority 

European Union 

Early Warning System 

External Debt 

Fiscal Affairs Department, IMF 

Financial Management Information System 

Financial Supervision Department 

Fiscal Year 

General Authority for Information, Egypt and Libya 

General Budget Department 

General Commission for Taxes and Fees 

General Data Dissemination System 

Gross Domestic Product 

Government Financial Management Information System 

Government Finance Statistics 

Government Finance Statistics Manual 

German Development Agency 

Goods and Sales Tax 

Household Budget Survey 

Headquarters 

Internal Capital Adequacy Assessment Process 

International Finance Corporation 

Integrated Financial Management System 

International Financial Reporting Standards 

Islamic Financial Services Board 

International Investment Position 

International Monetary Fund 

International Public Sector Accounting Standards 

International Standard Industrial Classification for all economic activities 

Income and Sales Tax Department, Jordan 

Information Technology 

Integrated Tax Administration System 

International Transactions Reporting System 

Khartoum Stock Exchange 

Large Taxpayer Office 

Middle East and Central Asia Department, IMF 

Monetary and Capital Markets Department, IMF 

Middle East Regional Technical Assistance Center 

Macro Fiscal Department 

Micro-Finance Institutions 

Ministry of Finance 

Ministry of Finance and National Economy 

Ministry of Investment 

General People’s Committee for Planning and National Development, 

Libya 

Ministry of Planning and Developmental Cooperation, Iraq

7 

MoPF 

MTEF 

MTFF 

MTO 

NA 

NBFIs 

NICO 

NIDA 

OMO 

PCBS 

PFM 

PMA 

PNP 

PPI 

QEDS 

QIS 

RBM 

RMU 

RR 

RSN 

RTACs 

SDDS 

SECO 

SNA 

SREP 

STA 

SUTs 

TA 

TIN 

TPC 

TSA 

USAID 

VAT 

WB 

Ministry of Planning and Finance 

Medium-Term Expenditure Framework 

Medium-Term Fiscal Framework 

Medium-Size Taxpayer Office 

National Accounts 

Non-Bank Financial Institutions 

Northern Ireland Cooperation Overseas 

National Information and Documentation Authority, Libya 

Open Market Operations 

Palestinian Central Bureau of Statistics 

Public Financial Management 

Palestine Monetary Authority 

Palestinian National Plan 

Producer Price Index 

Quarterly External Debt Statistics 

Quantitative Impact Study 

Results-Based Management 

Risk Management Unit 

Reserve Requirement 

Regional Strategy Note 

Regional Technical Assistance Centers 

Special Data Dissemination Standard 

State Secretariat for Economic Affairs 

System of National Accounts 

Supervisory Review and Evaluation Process 

Statistics Department, IMF 

Supply and Use Tables 

Technical Assistance 

Tax Identification Number 

Tax Procedure Code 

Treasury Single Account 

United States Agency for International Development 

Value-Added Tax 

World Bank

8 

PREFACE 

The Fund recently decided to adopt a results-based management (RBM) framework 

for technical assistance (TA). This approach has proven to be very helpful in the 

planning, monitoring, and delivery of TA at the regional and country levels. This will also 

respond to a long-standing donors’ request for linking TA delivery to results on the 

ground to better assess the impact and effectiveness of TA. 

As a first step in preparing the RBM, regional technical assistance centers (RTACs) 

were required to produce a regional log frame setting a strategic objective for their centers 

along with a log frame for each area where outcomes, verifiable indicators, and risks and 

assumptions are specified. 

To guide the preparation of the regional log frame, in April 2012, we reviewed the 

Middle East Regional Technical Assistance Center’s (METAC) past activities and 

prepared medium-term country work programs. This allowed us to step back and take 

a closer look at what has been done and what needs to be done over the next three years, 

until the end of Phase III by 2015. Such analysis has proven to be very valuable in 

preparing the Center’s annual work plans. While in principle the regional log frame, 

which is based on the countries’ needs, should draw on the regional strategy note (RSN) 

prepared by the area department, the work programs laid out in this document could be 

used by country teams in preparing the RSN, making the process more iterative. 

Therefore, the work programs will be updated along with the RSN and according to 

countries’ evolving needs. 

The work programs outlined in this document are consistent with the RBM 

methodology and can be easily turned into full- fledged log frames. For each country, 

specific outcomes, outputs and country risks and assumptions are specified. These 

medium-term work programs could be translated easily into log frames by adding a set of 

verifiable indicators and the resources needed to reach the outcomes. They can also be 

used in preparing annual work plans by specifying a number of milestones that would be 

used to monitor progress toward the ultimate objectives. 

The work programs are based on a set of common assumptions and are subject to 

some inherent regional risks. While the document highlights some of the specific risks 

in each country, there are several risks and assumptions that are common to the region. 

The Middle East is undergoing a fundamental transformation and the future is highly 

uncertain. Nonetheless, it is assumed that: (i) the political and security situation in a 

number of member countries will normalize in the short-term in a way that will permit the 

delivery of TA in a timely manner; (ii) the authorities are committed to reforms and are 

serious in implementing the TA recommendations; (iii) METAC TA is being 

supplemented by other donors’ and headquarters (HQ) TA; and (iv) METAC has 

sufficient resources to carry out the TA needed.

9 

METAC’s overall strategic objective is to improve the conduct of macroeconomic 

policy through institutional and capacity building. In the remaining period of Phase 

III, the program will focus on four areas with the following objectives: (i) achieving a 

more risk-oriented banking supervisory and a regulatory framework that enhances 

financial stability; (ii) establishing an integrated public financial management (PFM) 

framework that effectively links policies to public resource allocation and improves 

transparency in, and accountability for, managing public finances; (iii) upgrading revenue 

administration to bring it closer to best international standards to improve revenue 

performance; and (iv) bringing member countries closer to compliance with international 

standards for the compilation of external statistics, national accounts (NA), and price 

statistics. 

During Phase III, in addition to the four areas currently covered by METAC, 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. 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. The 

work that was done by METAC in this area in member countries is summarized in 

Appendix I. 

METAC will continue to be engaged with all member countries but to varying 

degrees and TA will be tailored to countries’ specific needs. TA needs in countries that 

have experienced uprisings and in fragile states will be substantial. This is the case of 

Egypt, Libya, Sudan, Syria, West Bank and Gaza, and Yemen, and to a lesser extent 

Afghanistan. TA in these countries will be directed mainly to building institutions capable 

of conducting macroeconomic policy to achieve sustained growth while protecting social 

sectors and reducing poverty. However, in case METAC’s involvement in some of these 

countries continues to be hampered by the security situation and political turmoil, 

resources will be shifted to the relatively more stable countries. 

Regional workshops will continue to provide hands-on training and a platform for 

sharing knowledge and exchanging experiences. Training will be focused on those 

areas identified in need of improvement in TA reports, to exploit the synergies between 

TA and training and to respond to country priorities. In this context, METAC will 

continue to enhance its partnership with donors and other TA providers to increase the 

efficiency and effectiveness of its capacity-building activities. 

This document is organized as follows. For each country, we reviewed briefly the work 

that has been done until July 2013 and then outlined in some details the objectives in each 

of the four areas that METAC is focusing on: banking supervision, macroeconomic 

statistics, public financial management, and revenue administration. For each area, we 

specified the objectives to be met along with outcomes, expected outputs, and the

10 

risks/assumptions relevant to each country by end FY 2015. For few countries, where we 

have not been able to provide TA due to the fragile security situation, the program and the 

timeframe for its implementation have been revised. METAC’s regional log frame is in 

Appendix II.

11 

I. AFGHANISTAN 

A. Banking Supervision 

Past Activities 

Historically, the TA provided by METAC to Da Afghanistan Bank (DAB) focused on 

delivering training (seminars and workshops) mainly on bank management, internal 

control and internal audit, risk-based supervision, bank licensing, offsite supervision 

techniques and methodologies, and bank-wide risk management. DAB has also benefited 

from substantial TA in banking supervision from other providers including the United 

States Agency for International Development (USAID). 

Over the last few years, and following the failure of Kabul bank, METAC assisted the 

Financial Supervision Department (FSD) at DAB in strengthening their enforcement 

framework for dealing with weak banks and the development of some banking 

regulations in line with the new draft banking law. METAC has also assisted FSD in 

preparing a medium-term strategic action plan to strengthen supervision and oversight of 

the Afghan banking and financial sector. This was done in coordination with International 

Monetary Fund (IMF) resident Monetary and Capital Markets Department (MCM) 

experts at DAB. It also built on a recent restructuring of the FSD that was performed with 

the assistance of the IMF experts. 

Objectives 

Work Program 

The main objectives of METAC TA to DAB are to help in the implementation of the FSD 

medium-term strategic plan. This involves capacity building for supervisors, enhancing 

the offsite and onsite banking supervision methodologies, including establishing effective 

techniques for dealing with weak banks, and streamlining the regulatory framework in 

line with the new draft banking law and the latest Basel standards. 

Outcomes 

The main outcomes that are expected to be achieved are the following: 

 

DAB has an enhanced risk-focused supervisory framework that addresses weak 

and problem banks in an effective manner.

12 

 

 

 

DAB has an updated regulatory framework that establishes relevant limits and 

adequate standards for the conduct of banking operations in line with best 

practices and Basel principles for effective banking supervision. 

The FSD staff have a good understanding of banking regulations, and possesses 

the required skills to perform their functions effectively and efficiently according 

to the new supervisory framework. 

DAB has adequate supervisory and regulatory frameworks for the supervision of 

Islamic banking activities in Afghanistan. 

Outputs 

The main outputs of the TA to enhance the banking supervision framework at DAB are as 

follows: 

 

 

 

Preparing a new risk-focused onsite inspection manual, and training onsite 

supervisors on implementing the new manual. 

Further enhancing the enforcement framework for dealing with weak and 

problematic banks. 

Preparing a manual for offsite supervision with a complete set of prudential 

reports to monitor the financial performance of banks and the banking system and 

train the supervisors on applying the new manual. 

The main outputs that will be produced in the course of updating the regulatory 

framework applied by DAB would be as follows: 

 

 

 

Revising the capital adequacy regulation. 

Reviewing the regulations on internal audit, internal control system, compliance, 

and external audit function. 

Developing regulations on risk management (credit, operational, liquidity, and 

market) and updating the regulation on credit concentration limits. 

One of the main TA outputs would be to deliver workshops and seminars for the staff of 

FSD to build their capacity and enhance their knowledge in: risk focused supervision in 

both onsite and offsite functions, dealing with weak and problem banks, risk 

management, and Islamic banking. 

The TA on Islamic banking would provide the DAB with the following: 

 

Prudential regulations for operating and supervising Islamic banking products.

13 

 

 

Call reports covering the financial statements of Islamic banks and/or units 

offering Islamic banking services and main Islamic banking products. 

Preparing manuals for onsite and offsite supervision of Islamic banking activities. 

Risks/Assumptions 

The political and security situation in Afghanistan permits the delivery and 

implementation of TA in a timely manner. 

The DAB provides all the necessary support to the FSD in order to allow it to perform its 

functions effectively by ensuring that the FSD has an adequate number of staff with good 

qualifications, and that the FSD is granted sufficient powers and relevant legal protection 

that enable it to perform its duties with independence and integrity. 

The DAB staff makes good use of the knowledge acquired during the capacity building 

sessions and applies it effectively and objectively in the course of supervising banks. 

The DAB senior management shows continued commitment to implement the new 

manuals, enhancements, and policy recommendations supplied by METAC. 

B. Macroeconomic Statistics 


Since its inception, METAC has provided TA in statistics to Afghanistan essentially in 

complement to significant TA directly provided by the IMF Statistics Department (STA). 

METAC assistance was provided in the areas of price statistics and of balance of 

payments (BOP) statistics. The beneficiary institutions were the Central Statistical 

Organization (CSO) and DAB. 

Regarding price statistics, in the 2010 IMF staff report it was noted that the CSO 

compiles and publishes monthly consumer price indices (CPI) for the capital city, Kabul, 

and five other major cities and that, despite some shortcomings this is a remarkable 

achievement given insecurity and the scarce resources devoted to the CPI unit. Since 

then, with METAC assistance, the CSO has undertaken and achieved a major overhaul of 

the CPI, namely (i) implementation of full, five-digit Classification of Individual 

Consumption by Purpose (COICOP); (ii) update of consumer basket weights using data 

from a recent household survey; and (iii) expansion of coverage from six to ten 

cities/provinces. 

BOP statistics are compiled according to the fifth edition of the Balance of Payments 

Manual. The compilation of external statistics has improved significantly in terms of 

coverage and soundness of methodology. BOP data were published by the IMF, for the

14 

first time ever, in 2012. International Investment Position (IIP) statistics are expected to 

be published before the end of 2013. However, the compilation process still suffers from 

incomplete source data and limited resources. 

Objectives 

Work Program 

Assistance is requested by the CSO to continue the development of a producer price index 

(PPI) initiated earlier, and further improve the compilation of the CPI. 

Regarding external statistics, assistance would be needed to improve the institutional 

environment (i.e. enable DAB to collect data beyond the financial sector update the 

international transactions reporting system (ITRS), and compile external debt on an 

accrual basis. Guidance will also be useful to develop source data for direct investment 

(DI), in particular through the implementation of a DI survey. 

Outcomes 

The main outcomes of TA on price statistics are: 

 

 

 

The CPI is compiled on sound bases, using appropriate item classifications and 

specifications. 

CPI time-series are consistent. 

A PPI is compiled on a regular basis. 

The main outcomes of TA on external statistics are: 

 

 

 

 

 

The legal framework enables DAB to conduct surveys of non-financial 

companies. 

Better estimates of FDI flows and stocks. 

The quality of data collected via the ITRS has improved. 

BOP statistics are reported on a timely basis for inclusion in the IMF publications. 

DAB compiles and reports IIP statements on a regular basis. 

Outputs 

The main outputs of TA on price statistics are:

15 

 

 

 

Mission reports. 

Plans for developing price statistics beyond the PPI, import and export price 

index. 

Hands-on training. 

The main outputs of TA on external statistics are: 

 

 

 

 


FDI survey forms. 

Updated ITRS forms. 

Regional workshops on external statistics methodologies (Balance of Payments 

and International Investment Position Manual Sixth Edition (BPM6), forthcoming 

updated External Debt Guide). 


The security situation allows delivery of TA in normal conditions. Sufficient staff and 

financial resources are available for the CSO and DAB to perform their respective duties 

in the production of macroeconomic statistics. Institutional knowledge needs to be 

maintained through a low turnover of staff. 

C. Public Financial Management 


TA provided through METAC included a number of visits by short-term experts in the 

areas of budget integration program; execution of the development budget, and cash 

management as well as participation in diagnostic missions led by the IMF Fiscal Affairs 

Department (FAD), latest mission took place in Mary 2013. 

METAC carried out TA missions on: 

 

 

Budget preparation reform (three missions between 2006 and 2008) focusing on 

better integration between operating and development budgets and introducing 

program-oriented budget in four pilot ministries. 

Establishing a Cash Management Committee for forecasting cash flows and 

balances projections and monitoring the liquidity outlook in connection with the 

central bank; developing procedures to monitor budget execution on connection 

with cash management; reviewing the Chart of Accounts (COA) of the

16 

Afghanistan Financial Management Information System (FMIS) with related 

bridging tables; and gradually integrating treasury cash management and budget 

execution. 

 

Delivering training and guidance to the Treasury Department and the Cash 

Management Unit (CMU) to improve the cash flow forecast. 

Work Program 

Objectives 

The main objective is to establish an efficient payment system through monitoring and 

projection of cash balances, inflows and outflows. Going forward, METAC will assist the 

authorities in strengthening cash management and financial planning. 

Outcomes 

Upon completion of the project: 

 

 

Mid-year budget review and subsequent release of allotments to the pilot 

ministries are based on financial plans. 

The financial planning format is used by pilot ministries to explain their key 

expenditure programs. 

Outputs 

The main output of the TA is: 

 

Training MOF staff on how to prepare and update financial plans. 


MOF and line ministries are committed to the financial planning reforms and provide all 

the necessary resources needed to carry out the work. 

The lack of adequate TA to line ministries (specifically at a provincial level) is an 

ongoing risk that has been identified in previous FAD reports. 

It is assumed that primary support to line ministries in Kabul will continue through 

USAID support under the Economic Growth and Governance Initiative (EGGI).

17 

D. Revenue Administration 


Afghanistan is implementing an economic reform program with financial and TA support 

from the Fund and other donor agencies. The program’s most pressing tasks involve 

restoring economic stability, rebuilding key economic institutions, putting public finances 

on a sustainable path, and creating the foundations for growth and the eradication of 

poverty. 

Afghanistan has improved its revenue performance significantly in the past few years. 

Domestic tax collections by the Afghanistan Revenue Department (ARD) are 

approaching half of total tax revenues. Corporate and personal income tax collections 

have more than doubled in the last two years and this increase is attributable to 

administrative measures to boost tax compliance. 

Central to the administrative reforms have been the introduction of large and medium 

taxpayer offices, which were launched with strong support from a Department for 

International Development (DFID) project team which has been on the ground for a 

number of years. Computerization of the Large Taxpayer Office (LTO) has been recently 

introduced and enforcement of tax debts through newly enacted measures was stepped up 

in 2010-11. 

FAD advice is for Value-Added Tax (VAT) to be introduced with a very high registration 

threshold and an initial administration through the LTO. 

The FAD 2009 revenue administration mission identified a number of reform priorities 

for tax and customs administration. Subsequently, METAC delivered in September 2010 

its first activity in the area of customs administration, to support the Afghanistan Customs 

Department (ACD) in examining options for changes to the HQ organization and to the 

customs delivery structure within provinces. It also provided advice and guidance to the 

Government on an evaluation of alternative governance arrangements for customs 

including options for changes to the autonomy and status of the ACD within the MOF. 

On the tax administration side, METAC organized in January 2011 a workshop on tax 

information systems for the ARD to assist the authorities in implementing a modern 

automated tax administration system. The workshop addressed the challenges brought by 

the automation of tax operations and the associated changes in process change 

management. Another study mission was organized in September 2012 to enable ARD 

delegates to benefit from Lebanon tax department’s experience and expertise in VAT 

administration preparation, during and post implementation. It was designed to support 

ARD’s capacity building required for the preparation and introduction of VAT.

18 

Work Program 

Objectives 

The main objectives remain the improvement of revenue generation. It will require 

strengthening tax and customs administrations, revising organizational arrangements, 

reinforcing self-assessment and streamlining related processes, automating operations, 

and embedding effective risk-based compliance management. The preparation for the 

introduction of the VAT is a key reform and will require TA support to develop sound 

implementation plans. Further TA in tax policy and revenue administration will be 

contingent on achieving this milestone. 

Going forward, METAC will continue coordinating with FAD on providing needed TA to 

support key revenue modernization measures, notably in the areas of: (1) risk-based 

compliance management; (2) VAT preparations; and (3) customs administration. 

Outcomes 

 

Strengthened self-assessment and risk-based compliance: 

o Development of segment and risk-based compliance and enforcement 

programs. 

o Strengthening collection operations and arrears management. 

 

Enhanced tax systems: 

o Introduction of VAT. 

 

More effective customs administration: 

Outputs 

o Review of the organizational structure. 

o Review of the risk management system. 

 

 

 

 

 

 

 

 

 

TA reports. 

Trainings and country workshops. 

Procedures and users’ manuals. 

Operational framework for risk-based compliance programs. 

Audit manual. 

VAT law. 

Revised organizational framework for customs. 

Regulatory and reporting framework for customs risk management and systems. 

Regional workshops.

19 


Sufficient financial and human resources are provided to maintain and rollout the newly 

acquired Integrated Tax Administration System (ITAS). 

The security situation allows delivery of TA in normal conditions. 

The MOF and ARD senior management show continued commitment to fiscal reforms 

and provide necessary resources to implement recommended measures.

20 

II. EGYPT 



The Central Bank of Egypt (CBE) had many TA agreements with other providers and 

agencies, in particular some European central banks, the European Union (EU) and 

USAID. As such, METAC did not provide TA to Egypt in the area of banking 

supervision yet. 

With these TA agreements, a banking reform plan was implemented in order to 

restructure the banking sector and enhance financial intermediation. Two TA programs on 

banking supervision were also implemented in order to strengthen the capabilities and 

skills of Egyptian banking supervisors and to upgrade the regulatory framework and 

supervisory tools in line with Basel II Accord. 

Objectives 

Work Program 

Although the supervisory and regulatory frameworks were improved to a great extent 

over the last six years, the CBE still needs significant TA to keep abreast with the latest 

developments in the banking supervision industry and to further strengthen its prudential 

oversight framework. 

The main objective of the TA to be provided by METAC would be to introduce new and 

advanced supervisory tools and techniques that would enable the CBE to enhance its 

regulatory and supervisory framework and to align it with the international standards and 

best practices, in particular Basel II Accord and Basel III reforms. 

Outcomes 

 

 

 

The CBE has a strong regulatory and supervisory framework that is in line with 

the latest Basel principles on banking supervision including Basel II and Basel III. 

The CBE supervisors are well trained and possess high technical supervisory 

skills that allow them to monitor effectively the implementation of the regulations 

issued by the CBE and to assess the soundness of the Egyptian banking system. 

The CBE has a well functioning Early Warning System (EWS) model that enables 

its supervisors to make accurate assessments and forecasts of the financial 

soundness of the banks operating in Egypt and the banking system.

21 

Outputs 

 

 

 

Helping the CBE in drafting an action plan for the implementation of pillar 2 of 

Basel II and Basel III and in implementing this action plan through assistance in 

drafting regulations and reports and through providing related policy advice and 

recommendations. 

A series of seminars and workshops are delivered to CBE supervisors on Basel 

principles and standards and on the implementation of the new supervisory tools 

and techniques. 

An action plan for building the EWS model is agreed upon and assistance is 

provided throughout the implementation of the EWS model. 


Improvement in the political and security situation. 

The CBE senior management is committed to apply the draft manuals and draft 

regulations. 

The CBE staff make good use of the knowledge acquired during the capacity building 

sessions and apply it effectively and objectively in the supervision process. 

CBE supervisors employ the EWS model adequately in the supervisory approach and 

processes, and work constantly on reviewing the accuracy of the model and calibrating it 

accordingly. 

The CBE senior management shows continued commitment to the implementation of the 

pillar 2 of Basel II and Basel III action plans and timely takes all the required measures to 

put them into effect. 



From its inception up to the first quarter of FY 2014, METAC has provided TA in 

macroeconomic statistics to Egypt in the areas of price statistics, external sector statistics, 

and marginally, national accounts. 

The main beneficiary institutions were the Central Agency for Public Mobilization 

(CAPMAS) for price statistics, the CBE, the Ministry of Investment (MOI) and the 

General Authority for Investment (GAFI) for external statistics. The CAPMAS 

disseminates a monthly CPI data for all Egypt and for eight geographic regions, and a

22 

PPI. Most of the assistance provided regarding external statistics over several years was 

devoted to the development and implementation of a DI survey; a new approach was 

developed from 2012 to facilitate the completion of the survey. 

Objectives 

Work Program 

Regarding real sector statistics, TA is needed on NA and on price statistics (CPI and PPI), 

and is likely to be provided by STA. 

Regarding external statistics, the priority objective remains the completion of the DI 

survey for which METAC has been providing TA since March 2005; this objective is 

expected to be achieved by the end of 2013. Additional assistance will be needed to 

review and validate the results of the survey when it is finally implemented. Further TA 

will aim to improve the following areas: compilation of merchandise trade statistics, of 

remittances data by country of origin (for plausibility check purposes, in particular), flows 

and stocks of private sector external debt, cross-sector consistency of data; and the 

adoption of BPM6 methodology. 

Outcomes 


 

 

 

 

 

The DI survey has been conducted, and the results have been published. Egypt has 

agreed to participate in the IMF’s Coordinated Direct Investment Survey (CDIS), 

and submitted the DI survey results accordingly. 

The quality of merchandise trade statistics and of flows and stocks of the private 

sector’s external debt has improved; remittances data are collected by country of 

origin. 

BOP statistics are consistent with NA, monetary and external debt statistics. 

Reserve assets data are consistent across publications. 

The BOP and the IIP are compiled according to BPM6 methodology. 

Outputs 


 

 


Hands-on training.

23 

 

Regional workshops on external statistics methodologies (BPM6, forthcoming 



The political situation allows the resumption of TA delivery in normal conditions. The 

new authorities are willing to take ownership of the recommendations provided by TA 

missions. Sufficient staff and financial resources are available to the statistical agencies 

for them to perform their duties. Institutional knowledge needs to be maintained through a 

low turnover of staff. 



A number of development partners have been supporting PFM reforms in Egypt since the 

early 2000s. Since 2003, FAD, together with METAC (since 2008), provided significant 

support on strategic reforms, with a particular focus on budget classification, treasury 

single account (TSA), Government Financial Management Information System (GFMIS), 

fiscal decentralization and deconcentration. 1 

A law has been passed to enable the establishment of a TSA and many accounts in 

commercial banks have been closed. The necessary rationalization of banking 

arrangements and accounting processes recommended by a METAC peripatetic advisor is 

advancing, but budget sector entities continue to hold substantial funds in special 

accounts and funds outside of the TSA. 

METAC also provided support with the preliminary work for amending the Organic 

Budget Law aimed at fiscal decentralization reform. It is still at its preliminary stage. 

During November 2011, an FAD/WB/METAC mission proposed a reform agenda 

detailed in an Action Plan to be implemented over the next four years. The agenda also 

identified the main donors that will help in the implementation with the different areas. 

1 In 2005, FAD provided advice on the establishment of a TSA and strengthening macro-fiscal capacity of 

the MOF; joint FAD/STA missions in 2005 and 2006 reviewed a new system of budget classification and 

assisted the authorities to reconcile the fiscal balance; FAD missions in 2007 and 2009 reviewed the 

progress of the implementation of PFM reforms and provided advice on developing a complete strategy for 

fiscal decentralization. In addition, METAC has been providing advice on TSA and related accounting 

reforms through workshops and short-term experts.

24 

In January 2013, a METAC mission conducted a comprehensive review of the budget 

execution functions and recommended a series of measures to improve current practices 

and systems. 

Objectives 

Work Program 

In order to move the PFM system in Egypt closer to international standards and build 

PFM capacity, METAC’s work will aim to develop: (i) a medium-term, strategic-oriented 

budget formulation process consistent with the macro framework and development plans; 

and (ii) a more efficient and effective budget execution process based on the extension of 

the TSA to the entire budget, along with developing CMU annual financial plans. 

Outcomes 

Upon completion of the budget preparation reforms, the relationship between the macrofiscal 

projections and the budget process will be strengthened. Over time, this could 

develop into a comprehensive multi-annual framework for preparing the budget. The 

following outcomes are expected to be achieved: 

 

 

 

Budget estimates are prepared for two out-years in addition to the next FY, and 

are included in the budget document. 

The estimated cost of expenditure programs is included in the budget document. 

The budgets for capital and recurrent expenditures are integrated in the budget 

document. 

TA on Budget Execution will ensure an efficient use of resources. This will be translated 

into the following outcomes: 

 

 

The CMU has a good competence in cash flow planning and in active cash 

management techniques. 

The number of special funds and accounts is reduced, large balances are moved to 

the treasury main account, and regulations for those which are justified are 

prepared to ensure complete transparency in operations and balances. 

Outputs 

The main outputs of the TA on Budget Preparation are:

25 

 

Revision of the budget calendar to reflect the integration of the Medium-Term 

Fiscal Framework (MTFF) and forward estimates. 

Improving the budget documentation in line with good practice 2 . 

The TA on Budget Execution will produce the following outputs: 

 

 

 

Build CMU capacity to develop: (a) accurate in-year cash plans with what-if 

scenario analysis, and (b) implement active cash management strategies. 

Assist MOF in: (a) transferring operations and funds of selected special funds to 

budget and TSA; and (b) producing regulations on transparency requirements for 

all special accounts and funds which remain extra-budgetary. 

Carry-out a study on how to develop financial control within line agencies 

compliant with MOF control. 


The political situation allows the delivery of TA in normal conditions and the authorities 

are committed to the implementation of the comprehensive PFM action plan prepared by 

the 2011 FAD/METAC TA mission. 

It is expected that support and TA by donors and international institutions will continue 

(this includes the World Bank (WB), USAID, EU, State Secretariat for Economic Affairs 

(SECO)) and will be led by an effective coordination mechanism at the MOF. 



Egypt has been actively engaged in revenue administration reforms since late 2004. FAD 

has provided significant tax administration advice and TA to support the modernization 

efforts of the tax authorities. Over the period of 2004-2005, two diagnostic missions have 

guided the design and development of this reform. Initially, emphasis was placed on 

development of a strong tax policy framework, establishment of an integrated tax 

administration, preparation for self-assessment, and segmentation of the taxpayer base – 

2 To include for instance: (a) estimates for three forward years in addition to the budget year itself; (b) 

revised “Estimates of Expenditure and Revenue” tables; (c) service delivery and performance information; 

(d) definition of subprogram outputs and performance measures; (e) measurable objectives for each 

program; and (f) supplementary budget documents including the budget review which provides a detailed 

explanation of the underlying policies behind the budget.

26 

with the creation of an LTO as the first step toward modernization. Subsequently, FAD 

and METAC organized several TA missions and assessment visits to help the authorities 

in implementing the reform strategy and in ensuring that the assistance provided by other 

TA providers – mainly USAID and their consultant – was well targeted and coordinated. 

During the period of 2005-2009, TA in tax administration was provided mainly by FAD 

and to a lesser extent by METAC. It focused on the following main areas: (1) 

implementation of self-assessment for income tax; (2) establishment of the Egyptian Tax 

Authority (ETA), with a view towards integrating the income tax and sales tax 

departments; and (3) adoption of a taxpayer segmentation focus by establishing an LTO 

and a pilot Medium-Size Taxpayer Office (MTO) in Cairo, and later on, introducing a 

small business tax regime which will be accompanied by the creation of dedicated small 

offices and programs. 

Significant progress was made towards the implementation of key components of the tax 

reform program, including: (i) creation of the LTO in 2005; (ii) creation of the ETA in 

2006; (iii) launching of a pilot MTO in Cairo; (iv) development of a computerized ITAS, 

and starting its implementation on a pilot-basis in the LTO and a number of offices; (v) 

preparation of a draft tax procedure code (TPC); and (vi) issuing of special legislation for 

small taxpayers. 

However, deployment of these modernization initiatives started faltering in 2009 and 

momentum with the reforms has been lost mainly due to insufficient management 

support, changing ministerial priorities, some revisiting of design assumptions and, 

latterly, uncertainty following the political transition. 

The ETA has been unable to move from pilot to operational rollout, and some pilots – 

such as the MTO in Cairo – have been running for a number of years. In other cases, 

planned pilots (at least five) have been halted, despite significant investment in 

infrastructure. Furthermore, the reform direction also appears to have changed, with the 

earlier sharp segmentation strategy that would have seen separate offices for small and 

medium taxpayers giving way to a decision to consolidate several regional combined 

small and medium tax centers and a number of survey and implementation offices. 

Since FY 2012, delivery of several TA missions has been delayed because of political 

developments and the on-going security situation. In addition, evidence needs to be forthcoming 

of the ETA’s willingness to move forward with reforms implementation. 

In customs administration, a first METAC activity was delivered in May 2013. 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.

27 

Work Program 

Objectives 

TA on revenue administration issues is critical to support the authorities’ efforts in raising 

revenues. The whole reform process needs to be reinvigorated and the authorities ought to 

commit to a clear strategy aiming at the strengthening of the ETA organizational and 

operational framework. The strategy entails substantial TA to support building the HQ 

functions, embedding the integration of income tax and sales tax administration, and 

setting the scene for conversion of the existing goods and sales tax (GST) into a full 

VAT. 

In the next period, METAC’s TA will be focused on the areas of: (1) TPC; (2) 

compliance management – risk management, audit techniques, procedures manual; (3) 

enforcement and arrears management; (4) implementation of a full-fledged VAT; and (5) 

customs administration. 

Outcomes 

 

Strengthened risk-based compliance and enforcement: 


programs. 


 


o Implementation of a full-fledged VAT. 

o Development of a TPC. 

 


Outputs 



 

 

 

 

 

 

 

TA reports. 


ETA integration law. 

Operational framework for risk-based compliance programs 

VAT law. 

TPC law. 

Revised organizational framework for customs.

28 

 

 

 


Regulatory and reporting framework for customs valuation system. 

Regional workshops. 


Sufficient financial and human resources are provided to maintain and rollout the newly 

acquired ITAS (BULL system). 

Political stability and security situation permit delivery of TA in normal conditions.

29 

III. IRAQ 



In the first phase of METAC’s operations, TA to the Central Bank of Iraq (CBI) was 

limited to participation in seminars or TA missions organized by IMF HQ and other joint 

IMF/Federal Reserve seminars. However, the CBI was receiving extensive assistance in 

various banking supervision areas from USAID (BearingPoint). 

Beginning in FY 2009, METAC started providing the CBI with direct TA activities in 

banking supervision, including: 

 

 

 

Drafting various prudential regulations, namely: bank licensing requirements and 

procedures, minimum capital requirements, loan classification and loan 

impairment and provisioning, internal control system and procedures, guidelines 

for bank risk management, and foreign exchange operations and limits. 

Designing various supervisory call reports and financial statements. 

Providing capacity building activities in various issues related to banking 

supervision and International Financial Reporting Standards (IFRS), in addition to 

training on the new prudential regulations and the new supervisory call reports 

prepared in assistance with METAC. 

In addition to the above, the CBI has been implementing, since 2009, a banking reform 

program with substantial help from the WB in addition to other TA providers, including 

the IMF. The main element of the banking reform agenda consists of restructuring the 

two largest banks which are state-owned through reorganizing the banks and cleaning 

their balance sheets. The CBI also received extensive assistance to enhance banking 

supervision and develop banking regulations. At the beginning of 2011, several new 

banking supervision regulations were issued by the CBI. 

Objectives 

Work Program 

Although the current level of banking regulations should allow the CBI to perform its 

banking supervision function effectively, it still lacks many important components to 

become operationally effective.

30 

The main objective of the TA provided by METAC to the CBI would be to strengthen the 

banking supervision practices and build the supervisors’ capabilities in order to be able to 

perform a rigorous supervision over banking activities and to take enforcement actions 

accordingly. 

Outcomes 

 

 

The CBI has an effective system of offsite supervision that relies on the analysis 

of main prudential indicators and which complements the work of onsite 

supervision. 

CBI supervisors have a thorough understanding of the banking regulations and 

possess the necessary skills to perform an effective onsite and offsite supervision 

of banks operating in Iraq. 

Outputs 

The main outputs of the TA on offsite supervision would be as follows: 

 

 

Review the supervisory returns sent by banks to CBI and make recommendations 

about any required modifications. 

Develop regular offsite reports that allow CBI supervisors to monitor the banks’ 

financial performance and analyze their prudential ratios. 

Building the capacity of bank supervisors would cover the following main areas: 

 

 

 

 

Risk Management and Basel II / Basel III. 

Risk-focused supervision (onsite inspection and offsite analysis). 

IFRS. 

Supervising weak and problem banks. 


The political situation and security constraints allow for the delivery of TA in a timely 

manner. 

The CBI senior management timely implements the draft manuals and draft regulations. 

The CBI staff make good use of the knowledge acquired during the capacity building 

sessions and applies it effectively and objectively in the course of their supervision of 

Iraqi banks.

31 

B. Macroeconomics Statistics 


METAC has provided very limited TA in statistics to Iraq; TA was directly provided by 

STA. STA missions were largely financed through the now-depleted Iraq-sub-account. 

METAC provided two expert weeks of field TA on BOP statistics, and one and a half 

weeks on price statistics. 

The beneficiary institutions were the CBI and the Central Office for Statistics and 

Information Technology (COSIT). 

Work Plan 

METAC has no TA program with Iraq in the statistics area. 



A 2008 FAD TA mission prepared a comprehensive PFM action plan identifying the 

reforms that should be implemented in the short term, medium-term (2009–2010), and 

longer term (2011 and beyond). There have been a series of FAD PFM missions since 

2005 (a joint Fund-Bank mission in March 2005 followed by FAD missions in April 

2005, November 2006, and March 2008). 

During October 2009, a mission assessed Iraq’s fiscal reporting and underlying 

accounting frameworks, and identified the following: 

 

 

There has been very limited progress in implementing the recommendations of the 

2008 FAD mission, and only a few of its recommendations have been partially 

implemented, such as issuing a combined budget circular for the operational and 

investment budgets (which otherwise remain separate), implementing a system of 

withholding the release of funds to spending units if their budget execution reports 

have not been received for two months, and commencing the work on 

documenting the government’s existing accounting framework. 

The authorities have, however, constituted an accounting reform committee, 

which is tasked with documenting the existing accounting framework, and has 

drafted an accounting manual that includes, a detailed description of the COA 

codes and of the economical classification in line with the Government Finance 

Statistics Manual (GFSM 2001).

32 

Since 2011, several FAD and METAC missions took place in Amman and Beirut (for 

security reasons) to design an action plan for the implementation of the Iraqi Financial 

Information System (IFMIS), review the accounting manual, and assess the revised draft 

Budget System Law (BSL). 

Objectives 

Work Program 

The objective is to modernize the existing PFM systems and processes and bring them in 

line with international good practices with a focus on core functionality of the FMIS. 

Outcomes 

PFM reforms should lead to the following outcomes: 

 

 

 

 

A strategic approach to budget preparation in Iraq, based on international good 

practice is developed 3 . 

A full cash flow statement is prepared, in accordance with international good 

practices, in addition to the budget execution statement, and including all central 

government entities in the consolidated financial statements. 

The COA is aligned with the GFSM 2001: this includes the development of the 

functional classification and project segments in the COA. 

The budget execution reporting and the management of advances are strengthened 

by including analytic information on outstanding advances in the monthly and 

quarterly expenditure reports. 

Outputs 

The main outputs of the TA would be as follows: 

 

A report setting out main findings and recommendations with an updated PFM 

action plan. 

3 

This could include the following activities: develop the fiscal framework with a three-year focus; prepare 

a single budget circular and hold joint discussions on budget proposals; include in budget documents 

information on donor-financed projects (loans and grants) and a functional analysis; include in the budget 

circular ceilings for current and investment expenditures; merge the Ministry of Planning and 

Developmental Cooperation (MoPDC) investment budget management into MOF; introduce a program 

structure for selected sectors; and develop systems and procedures to monitor expenditure on a program 

basis.

33 

 

 

 

Assistance in preparing a cash flow statement in accordance with the International 

Public Sector Accounting Standards (IPSAS). 

Assistance in developing a functional classification in line with the Classification 

of the Functions of the Government (COFOG). 

Assistance in preparing a policy paper to eliminate outstanding advances. 


It is assumed that the political situation allows the delivery of TA in normal conditions 

and the authorities are committed to reforms. 

It is expected that financial and TA support from the donor agencies will continue and 

particularly the WB support to the IFMIS project.

34 

IV. JORDAN 



METAC TA in banking supervision to the Central Bank of Jordan (CBJ) was minimal in 

the first two phases of METAC’s operations. However, beginning in FY 2009, METAC 

offered considerable TA to the CBJ mainly on: 

 

 

 

 

Reviewing and upgrading the onsite inspection manual to enhance its risk-focused 

features, and providing on-the-job training to implement the new manual. 

Training on the implementation of pillar 2 of the Basel II framework. 

Developing a framework for licensing private credit bureaus and training the 

supervisors on it. 

Starting two projects, the first on developing an EWS model and the second to 

assist in implementing Basel II and Basel III. 

Work Program 

Objectives 

The main objective of the TA provided by METAC to the CBJ would be to enhance the 

micro-prudential supervision at CBJ and to establish a good macro-prudential framework 

that enhances financial stability in Jordan. 

Outcomes 

 

 

 

The CBJ has a risk-focused and effective offsite supervisory framework, including 

a good and well functioning EWS, which will help in monitoring and maintaining 

the safety and soundness of the Jordanian banking sector. 

The CBJ has a regulatory framework that is in line with the latest standards issued 

by Basel Committee on Capital, Leverage and Liquidity. 

The CBJ supervisors are well trained and have a thorough understanding of the 

latest international banking supervision standards, especially the application of 

Basel III and the pillar 2 of Basel II.

35 

 

The CBJ has a good macro-prudential framework that includes an effective 

financial stability function. 

Outputs 

The main outputs of the TA on the statistical based EWS would be as follows: 

 

 

 

Assisting the CBJ in reviewing the historical financial soundness indicators (FSIs) 

of banks and developing an EWS model that uses this data and other indicators to 

monitor and forecast the performance of banks and the banking sector. 

Assisting the CBJ in maintaining the EWS model and integrating it in the overall 

supervisory process. 

Delivering a series of training sessions to CBJ supervisors to enhance their offsite 

supervisory analytical skills and to explain the new EWS and its various 

components and uses throughout the supervisory process. 

The TA on Basel III / Basel II will produce the following outputs: 

 

 

 

Help the CBJ in analyzing the Quantitative Impact Study (QIS) on Basel III and in 

drawing a road map for Basel III implementation, and assist effectively in the 

implementation of the new requirements. 

Helping the CBJ draft new regulations and prepare new reporting requirements for 

the adoption of Basel III and enhancing the current policies and procedures for 

implementation of the pillar 2 of Basel II. 

Arranging a set of capacity building activities including seminars and workshops 

to the CBJ supervisors on Basel III reforms and Basel II pillar 2. 

The main TA outcomes on enhancing macro-prudential framework will be achieved 

through the following outputs: 

 

 

Helping the CBJ in developing an action plan for building an effective financial 

stability function and assist in implementing the action plan. 

Training CBJ staff on macro-prudential policy tools and techniques and how to 

use them for the purpose of maintaining financial stability. 


Political stability and security conditions remain within tolerable levels to deliver TA.

36 

The CBJ senior management discusses all the draft regulations and approves them on a 

timely basis and requires its staff to follow these guidelines. 

The CBJ senior management responds positively to METAC recommendations to 

enhance the work of its offsite supervision function. 

The CBJ senior management provides all the support needed throughout all the phases of 

developing the statistical-based EWS model and in particular in ensuring the availability 

and accuracy of the required data. 

The supervisors employ the EWS model adequately in the supervisory approach and 

processes, and work constantly on reviewing the accuracy of the model and calibrating it 

accordingly. 

The CBJ senior management continued to be committed to the implementation of the 

Basel III action plan and takes all the required measures on a timely basis to put it into 

effect. 

The CBJ supervisors implement the knowledge acquired during the Basel II and Basel III 

training activities in the course of performing their duties and in monitoring the banks’ 

compliance with the relevant regulations. 



From its inception up to the first quarter of FY 2014, METAC has provided TA in 

macroeconomic statistics to Jordan in the areas of NA, price statistics, external sector 

statistics, and Government Finance Statistics (GFS). Some assistance was also provided 

for the preparation of Special Data Dissemination Standard (SDDS) metadata. 

The beneficiary institutions were essentially the Department of Statistics (DOS) for NA 

and prices and the CBJ for external statistics. 

Objectives 

Work Plan 

In the area of NA (annual and quarterly), the most important and urgent improvement is 

to update the base year to a recent one (currently: 1994). An economic census was 

launched in 2011. TA will be needed to assist the DOS in exploiting the results of this 

survey to update the base year, as well as to improve compilation methodologies and

37 

procedures for the NA. To also build up on the benefits of the new survey, further TA on 

quarterly NA and Supply and Use Tables (SUTs) will be very useful at this stage. 

Regarding external statistics, compilation of IIP stocks needs to be further improved (e.g. 

use of external data sources). The possibility of improving the compilation of data on 

remittances should be assessed. TA support may be needed to implement the changes 

requested by the BPM6. In addition, the compilation of external debt statistics needs to be 

brought fully in line with international standards. 

Outcomes 

Regarding NA, the following outcomes are expected: 

 

 

 

Improved compilation of annual NA, based on assumptions consistent with the 

current reality of the Jordanian economy. 

As a cascading effect, improvements in the quality of quarterly NA. 

Regular production of SUTs. 

For external statistics, the expected outcomes are as follows: 

 

 

 

 

Improved coverage of the external assets of the private, non-bank sector. 

The compilation of remittances data has been further improved. 

External debt statistics are fully consistent with international standards. 

The BOP and IIP compilation system have been updated to implement the 

changes brought about by the new BPM6. 

Outputs 

The main outputs of TA on NA are: 

 

 

 


Hands-on training on exploiting the results of the 2011 economic census to update 

the base year of the accounts. 

Hands-on training on the compilation of SUTs. 


 

Mission reports/summary conclusions.

38 

 

Regional workshops on external statistics methodologies (BPM6), forthcoming 



The authorities (CBJ, DOS, and MOF) remain committed to implement missions’ 

recommendations and to allocate sufficient resources to the compilation of their 

respective statistics. Institutional knowledge needs to be maintained through a low 

turnover of staff. 



Jordan received TA from FAD since late 2003 with the assignment of two peripatetic 

advisors following up on two previous missions in November 2002 and March 2004 

(jointly with the WB). The first mission drafted an action plan for TSA implementation; 

the second mission had a broader PFM scope (TSA, budget classification, accounting 

reform, and GFMIS). First, FAD assisted the MOF with TSA through a peripatetic 

advisor (May 2006), followed by a METAC advisor in June 2008 and February 2009. 

METAC also provided guidance on TSA-related accounting issues and GFMIS, both 

reforms mostly handled by USAID until now and METAC provided TA on commitment 

control system 4 and on capital expenditure budgeting 5 . 

The January 2011 FAD/METAC/WB mission updated the action plan, and elaborated on 

the recommended reform measures in the budget preparation and treasury areas. The 

revised plan also identifies existing and currently planned donor support in PFM by the 

IMF, including METAC and the WB, as well as by USAID, EU, and the German 

Development Agency (GIZ). 

Since 2011, METAC assisted the authorities in establishing a well-managed and 

systematic process for review of expenditure policies within the General Budget 

Department (GBD), as part of the annual budget preparation cycle and to build capacity 

within GBD for undertaking these reviews, through the use of international good 

practices involving especially cost-effective, cost-benefit and policy evaluation methods. 

4 The mission developed an action plan adequately scheduled to match the GFMIS roll out planned in 2012. 

This program is still under construction. 

5 Recommendations and a timeframe for strengthening capital budget preparation have been developed with 

TA from METAC.

39 

In May 2013, a METAC/FAD mission assisted the authorities with the implementation of 

the two structural benchmarks agreed on under the Fund-supported program Jordan has 

with the IMF. The mission also reviewed progress in the implementation of reforms; 

identified issues, and made recommendations for further work to be done. 

Objectives 

Work Program 

The authorities have made progress in advancing PFM reforms, actively supported by 

donors. However, further work is needed in many areas with the objectives to: (i) 

establish an integrated budget planning and management process that effectively links 

policies to public resource allocation; (ii) further develop treasury systems to prevent 

arrears, including government banking arrangements, commitment controls, cash 

management and GFMIS; and (iii) prepare a policy paper setting out recommendations 

for amending the BSL. 

Outcomes 

Upon completion of the project, the following outcomes are expected to be achieved: 

 

 

 

 

A system of monitoring and reporting of payment arrears and measure the stock of 

arrears on a quarterly basis will be introduced through the GFMIS. 

The GFMIS commitment functionality will be amended to allow for annual 

commitment ceilings fully aligned with the in-year financial transfers. 

Trust accounts will be consolidated into the fiscal tables on a gross basis, and 

larger ones will be integrated into the TSA. 

A revised organic budget law will be submitted to parliament, which will, among 

other, improve budgetary coverage and clarify the definition of arrears. 

Outputs 

The main output of this TA would be as follows: 

 

 

 

TA reports. 


Draft BSL.

40 


The authorities face major challenges in the fiscal area, mainly as a result of recent 

political and economic developments in the region. These developments may impede the 

implementation of a comprehensive PFM reform agenda. 

Capacity constraints in the GBD and in the MOF continue to be a major obstacle to the 

development of a strong policy-led medium-term budget planning process. 

Achieving better integration between policy, program planning and budgeting processes 

and better coordination between the lead agencies involved continues to prove 

challenging. 



Until 2003, revenue administration in Jordan was organized by tax type, with three 

departments reporting to the minister of finance for customs, income tax, and sales tax. 

Jordan has received considerable TA from the Fund during the past years, beginning with 

an FAD mission in 2003 that set out a reform strategy to integrate direct and indirect tax 

administration, which included establishing a unified, function-based tax administration 

reporting to the minister of finance, with a separate organization for customs and taxpayer 

segmentation through large and medium taxpayer administrations. Key features proposed 

for the Income and Sales Tax Department (ISTD) included: (1) a functionally structured 

HQ; (2) establishment of an LTO in Amman; (3) creation of integrated MTOs, emulating 

the LTO model; and (4) design of simplified procedures and a rationalized office network 

for small taxpayers. 

These major reforms were, with support of short term TA from FAD and METAC, 

progressively implemented in quick succession: 

 

Integration of the direct and indirect administrations within the new ISTD during 

the period of 2003-2004. 

Establishment of the LTO in October 2004. 

Launching of three MTOs in September 2006. 

After this promising start, reform implementation lost speed and momentum. Since 2007, 

METAC has been the main TA provider within the Fund and has organized several tax 

administration expert visits to assist in strengthening the ISTD HQ and develop audit and 

collection strategies. HQ of ISTD remains partly developed, audit strategies are deficient, 

self-assessment is not fully implemented and there is now a general need to reinvigorate

41 

the commitment to carry on implementing key components of the modernization 

program. 

Objectives 

Work Program 

Revenue mobilization through improved tax compliance remains a priority. An FAD 

follow-up mission, with the participation of METAC revenue administration advisor, was 

conducted in March 2012 to review the state of reforms, particularly with respect to 

organization and segment-based compliance. The mission pointed out nine critical areas 

where focus must be brought to put the ISTD on a sound base. These are: resetting tax 

administration strategy, building headquarters and management capacity, strengthening 

taxpayer segmentation, improving registration and taxpayer register, enhancing filing 

performance, reducing tax arrears, modernizing audit, human resource management, and 

information management and technology. A subsequent FAD follow-up mission was 

conducted in July 2013 to review progress of ISTD reforms and identify targeted areas 

that can be used as taxpayer compliance improvement baselines. While the mission noted 

a commendable progress in implementing each of the nine key FAD March 2012 mission 

recommendations, it highlighted several risks to the successful implementation of needed 

reforms and identified areas where focused TA would be beneficial to improve ISTD 

efficiency and effectiveness. In particular, it recommended designing robust taxpayer 

compliance management framework using focal and impact-generating compliance 

improvement projects. 

Priority in TA delivery will be directed to: (1) strengthening the ISTD HQ; (2) improving 

the segmentation approaches – including developing simplified schemes for small 

taxpayers; (3) strengthening the operations of the LTO and MTOs; (4) developing 

segment-based compliance and enforcement strategies; (5) developing a TPC; and (6) 

reviewing the information technology (IT) strategy. Additional TA should also be 

provided in the area of customs administration so as to complement the overall reform 

program and improve revenue performance. 

Outcomes 

 

More efficient and effective organizational structures: 

o Strengthening ISTD HQ and management capacity. 

o Improving segmentation approaches. 

o Strengthening LTO and MTOs. 

 

Strengthened risk-based compliance and enforcement:

42 


programs. 


 



 


Outputs 



o Review of the valuation system. 

 

 

 

 

 

 

 

 

 

 

TA reports. 


Regulatory and reporting framework for ISTD HQ structure. 


Audit manual. 

TPC law. 






Sufficient financial and human resources are provided to implement key tax 

administration reforms.

43 

V. LEBANON 



The bulk of METAC TA in banking supervision to the Banquet Du Libran (BDL) and the 

Banking Control Commission of Lebanon (BCCL) consisted of seminars and workshops 

on a variety of banking supervision issues, including: corporate governance, credit risk 

management, assessing bank’s strategy and business plans, stress testing, and 

consolidated supervision. METAC also assisted the BDL and BCCL in developing a 

statistical-based EWS model. 

In addition to the above, METAC has assisted the BCCL over the last year in developing 

a risk-focused supervision approach for supervising non-bank financial institutions 

(NBFIs) and in developing a supervisory manual for these NBFIs. 

Objectives 

Work Program 

The main objective of the TA to be provided to the BDL and BCCL will be to further 

enhance the supervisory framework and improve the technical skills of bank supervisors 

to keep abreast with latest developments and standards on banking supervision. 

Outcomes 

 

 

 

The BDL and the BCCL have an updated EWS that enhances the supervisory and 

regulatory framework, and which contributes positively to the safety and 

soundness of the Lebanese banking sector. 

The supervisors at BCCL have a thorough and enhanced knowledge of the latest 

banking supervision standards and principles and possess the necessary skills and 

expertise to apply the learned concepts in their banking supervision practices and 

approaches. 

The BCCL has an enhanced supervisory framework, including risk-focused 

approach to supervise banks and supervisory colleges to oversee cross-border 

activities of the largest banks.

44 

Outputs 

 

 

 

 

Assisting BDL and BCCL in developing tools and techniques to build a sound 

macro-prudential framework that will help foster the financial stability of the 

system. 

Assisting the BCCL in developing new/enhanced approaches to monitor the crossborder 

activities of large banks including establishing supervisory colleges. 

Delivering training and other capacity building activities to develop the skills and 

capabilities of Lebanese supervisors in line with the latest standards in banking 

supervision. 

Preparing draft manuals and regulations that enhance the regulatory and 

supervisory frameworks for banks as well as financial institutions in line with the 

latest international standards and the best practices on banking / financial 

supervision. 


Risks of political instability, uncertainty and security constraints in Lebanon. 

The BDL and BCCL timely implement the recommendations on developing the macro 

prudential framework and take all appropriate steps to incorporate these recommendations 

in their supervisory review process. 

The BCCL supervisors apply the acquired concepts and skills in their banking supervision 

practices and techniques. 

The BCCL adequately applies the recommendations and the manuals provided by 

METAC experts, and integrates them in its supervisory framework in order to enhance its 

supervisory approach and processes. 



From its inception up to mid-FY 2014, 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 on the workflow 

within the Research and Statistics Department at the BDL. 

The beneficiary institutions were the Central Administration of Statistics (CAS) for price 

statistics and NA, and the BDL for external statistics.

45 

Significant TA was provided to Lebanon by the EU under a Twinning Project between 

the EU and CAS, entitled “Support to the Central Administration of Statistics”. This 

project, launched in December, 2010, was implemented by Northern Ireland Cooperation 

Overseas (NICO) Ltd, a publicly owned company aiming to share the experience of 

Northern Ireland and managing the support. The main objectives of the project were to 

improve NA and trade statistics, to build capacity in the area of social statistics, and to 

assess the feasibility of a business register. METAC has kept regular contacts with the 

project’s resident advisor. 

The Twinning Project with the EU ended at the end of June 2012. Discussions with the 

CAS and with the project team indicated however that work was not entirely completed 

within the time-frame of the project. 

A small unit in the Cabinet of the Prime Minister was in charge of compiling the NA until 

2012 when this responsibility was transferred to the CAS, for the compilation of the 

accounts for the year 2011. 

Objectives 

Work Program 

Strengthen macroeconomic statistics to enhance the design, monitoring and 

implementation of macroeconomic policies. 

Following the termination of the EU project and the transfer of NA to the CAS, METAC 

may provide further assistance on NA to the CAS. Two or three missions would probably 

be necessary, over FY 2014 and FY 2015, to help the CAS rebuild capacity for the 

compilation of NA, and improve coverage and timeliness of the accounts. 

TA will also be needed at the CAS to complete the compilation of the PPI and improve 

the CPI. 

Regarding external statistics, TA will be needed with the implementation of the DI survey 

and the compilation of the results, as well as for periodic data validation. In addition, 

support will be needed to implement the changes requested by the new BPM6. Support 

may be needed to help the BDL and the CAS gain access to information collected by the 

General Security on arrivals/departures of travelers to improve estimates of travel 

services. 

Outcomes 

Regarding NA, given that the work could not be completed before the end of the 

Twinning Project, the following outcomes will be finalized with METAC TA.

46 

 

 

NA are compiled by the CAS on the basis of economic surveys conducted at 

appropriate intervals. 

NA are compiled within the recommended timeliness of the General Data 

Dissemination System (GDDS) (10-14 months of the reference period). 

For price statistics, the expected outcomes are: 

 

 

Compilation and publication by the CAS of a PPI. 

Regular and uninterrupted publication of the CPI on a timely basis, and 

improvements in the compilation of the CPI. 

For external statistics, the expected outcomes are: 

 

 

 

 

 

 

The DI survey is conducted on a regular basis (at least every other year). 

The reporting by banks, on a global basis, of transactions below the ITRS 

threshold of US$ 10,000 helps improving several BOP items (e.g. travel services, 

compensation of employees, remittances). 

Data from the General Security are available for estimating travel services. 

IIP statements are compiled and published on a regular basis (at least annually). 

External debt statistics are fully consistent with international standards. 

BOP and IIP statistics are compiled in accordance with BPM6 methodology. 

Outputs 

The main outputs of TA on real sector statistics are: 

 

 

 


Hands-on training on the compilation of NA. 

Hands-on training on the compilation of the CPI and PPI. 

For external statistics, the main outputs are: 

 

 


Hands-on training on exploitation of the DI survey.

47 

 




The authorities allocate the necessary human and financial resources to the CAS for the 

compilation of NA for, as well as for its other duties, including the compilation of price 

statistics (CPI and PPI). 

At the BDL, the authorities are supportive of improvements in the external statistics 

compilation system, including through cooperation with the CAS for the implementation 

of a DI survey. 

Institutional knowledge needs to be maintained through a low turnover of staff. 



FAD has maintained a high level of commitment to the PFM reform agenda in Lebanon. 

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. 

Treasury Single Account: TSA reform was fully worked out by a dedicated 

mission in November 2009 with a comprehensive action plan.

48 

 

 

 

Budget Classification: comprehensive review of the budget classification and 

COA in order to operate its modernization in line with the GFSM 2001 and 

COFOG standards (April 2010 mission). 

PFM Strategy: preparation of a timetable for the major PFM reforms to be carried 

out by the authorities (March 2012). 

Macro Fiscal: capacity building to the newly established Macro-Fiscal 

Department (MFD) and set of recommendations regarding the MFD structure, 

organization, and output. (September 2012). 

Work Program 

Objectives 

The objective is to improve the quality of fiscal analysis and to ensure that the MOF has a 

medium-term fiscal strategy through the establishment of budget ceilings that will inform 

and guide the annual budget preparation process. METAC will provide TA to help the 

authorities (i) strengthen the Medium Term Budget Framework process and build the 

basis for effective medium-term economic and fiscal frameworks to shift the focus of 

policy away from purely short-term objectives; and (ii) establish an efficient payment 

system through monitoring and projection of cash balances, inflows and outflows. 

Outcomes 

 

 

A top-down, multi-year budget preparation process is adopted. 

The budget cycle is streamlined in line with international good practice with the 

introduction of a sound and practical new BSL which will enable the government 

to translate its vision into a strong reform agenda in pursuit of a sustainable fiscal 

stance. 

Outputs 

The main outputs would be: 

 

 

 


Hands-on training and capacity building delivered to staff at MOF and other 

relevant government agencies. 

Diagnostic review of the budget system, its fiscal institutions, and decisionmaking 

processes.

49 


Political stability in Lebanon and commitment of the authorities to the PFM reform 

agenda are maintained. 

The budget environment is normalized with the approval of the 2014 budget which will 

allow delivery and implementation of sustainable PFM reform. 



With high levels of government debt, revenue mobilization through improved tax and 

customs systems remains a key priority. The MOF has embarked on a wide reform 

program to modernize the tax system and its administration and to improve tax 

collections. Following the successful introduction of VAT in 2002, a number of structural 

measures were taken to modernize the tax administration towards a unified functionbased 

structure, fully automated business processes, risk-based compliance programs, and 

improved legislations. 

METAC has supported the efforts of the authorities in designing the reform strategies and 

developing a phased implementation plan to modernize the revenue administration. Since 

2005, 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 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 TPC; (4) developing risk-based compliance strategies; and (5) 

strengthening collection enforcement. 

The authorities responded well to the TA provided by METAC despite the difficult 

political environment. Several key results were achieved, including: (i) establishment of a 

LTO; (ii) development of risk-based auditing; (iii) re-structuring of tax offices on a 

function basis; (iv) establishment of new HQ units, serving as basis for future HQ 

functions; and (v) 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.

50 

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. 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. Subsequently two focused 

TA missions were delivered in July 2012 and 2013. The first visit addressed risk 

management; it aimed at strengthening the work of the central Risk Management Unit 

(RMU), designing appropriate risk parameters and schemes that would improve targeting 

and selectivity, establishing an effective monitoring framework, and streamlining the risk 

management procedures. The second visit built on the foundation established in 2011 and 

2012 and provided practical measures that can be taken to move modernization forward 

with respect to valuation, risk management, post-clearance audit and increasing the level 

of integrity in customs. 

Objectives 

Work Program 

The medium TA strategy aims at supporting pressing reforms in key areas of tax and 

customs administration. The main objective remains the establishment of an integrated 

function-based HQ with a performing network of offices to move ahead with 

strengthening revenue collection and arrears management. 

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

51 

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, further assistance to the customs administration 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 reengineering, 

including the ‘Single Window’ for sharing of information by business, 

Customs and other ministries; and (5) review of the valuations system. 

Outcomes 

 


o Integration of Income Tax and VAT departments. 

o Strengthening of the LTO. 

 



programs. 


 


o Strengthening of VAT. 

o Development of a simplified scheme for small taxpayers. 

 


Outputs 

o Review and redesign of the organizational structure. 

o Establishment of a risk management system and a dedicated unit. 


 

 

 

 

 

TA reports. 


Law establishing a unified tax administration. 


Small taxpayers’ scheme.

52 

 

 

 

 






Political stability permits implementation of reforms. 

Commitment of the authorities to fiscal reforms is maintained.

53 

VI. LIBYA 



IMF was the main provider of TA in banking supervision to the Central Bank of Libya 

(CBL). This was done through appointing MCM resident advisors in banking supervision 

at the CBL. On the other hand, METAC played a main role in providing TA to CBL, in 

coordination with the MCM advisors. The TA provided by METAC covered the 

following areas: 

 

 

 

 

 

Developing a medium-term plan to enhance banking supervision and align it with 

Basel core principles. 

Assisting the Banking Supervision Department (BSD) at the CBL in upgrading 

the regulatory framework through drafting new banking regulations on key topics: 

credit risk management, credit concentration limits, loan classification and loan 

impairment and provisioning, liquidity ratios and liquidity risk management, and 

foreign exchange operations and limits. 

Developing a new risk-focused onsite inspection manual and training the onsite 

supervisors on applying it. 

Reviewing and upgrading the supervisory reporting system. 

Delivering some capacity building activities (workshops, seminars) on the 

implementation of the new regulations and on various risk-based supervisory tools 

and techniques in both offsite and onsite supervision. 

Despite the high level of TA delivered by METAC, the CBL still needs to exert major 

efforts to enhance its banking supervision in both offsite and onsite functions. 

Objectives 

Work Program 

The main objective of the METAC TA is to improve the supervisory and regulatory 

frameworks at CBL and to enhance financial intermediation in the Libyan banking 

system.

54 

Outcomes 

The main outcomes that are expected to be achieved as a result of the TA provided by 

METAC are the following: 

 

 

 

 

The CBL has an adequate supervisory reporting system that allows for effective 

supervision of banks’ activities and monitoring of their financial performance. 

The CBL has a good system of offsite and onsite supervision that is risk-based and 

that is aligned with the best practices and international standards. 

The CBL has in place a comprehensive regulatory framework that covers the main 

aspects of banking activities and which contributes positively to the stability of the 

financial system. 

The CBL has a good regulatory and supervisory framework for supervising the 

Islamic banking activities in the Libyan financial sector. 

Outputs 

The main outputs of the TA in relation to onsite and offsite supervisory functions at the 

CBL would be as follows: 

 

 

 

Develop new supervisory returns sent by the banks to the CBL and update the 

prudential reports currently produced by the offsite analysis function. 

Assist in drafting new and updated risk-focused manuals for the onsite and offsite 

supervision of banks. 

Deliver on-the-job training to CBL onsite supervisors to apply effectively the new 

manuals and approaches. 

The main regulations that will be needed to enhance the regulatory framework at CBL are 

the following: 

 

 

 

Regulations on internal control and internal audit. 

Regulations setting policies and procedures for the performance of the external 

audit function at banks. 

Regulations setting controls and limits over related party transactions. 

The main outputs related to the supervision of Islamic banking activities in Libya would 

be the following:

55 

 

 

 

 

Assisting the CBL in developing an action plan for an effective delivery of 

Islamic finance products and services in the Libyan market. 

Prepare new call reports and manuals for the offsite monitoring and the onsite 

inspection of Islamic banking activities and transactions. 

Develop new regulations that contain guidelines and controls on the practice of 

Islamic banking activities. 

Deliver a series of training and capacity building activities to enhance the skills 

and capabilities of CBL supervisors to monitor Islamic banking products and their 

impact on the overall risk profile of the banks. 

Risks /Assumptions 

Political stability and security situation are improved. 

The CBL provides all the necessary support for the TA provided by METAC and shows 

strong and continued commitment to timely implement the advice and recommendations 

provided by METAC. 

The CBL staff makes good use of the TA provided by METAC and employs it adequately 

in improving their technical skills and their professional competence with respect to the 

supervision of banking activities. 



Since its inception, METAC has provided TA in statistics to Libya essentially in the areas 

of price statistics and external sector statistics. Libya has also benefited for two years 

from a long-term NA advisor, provided by STA (2006-2008). 

The beneficiary institutions were the General People’s Committee for Planning and 

National Development (MoP), the Census and Statistical Department (CSD) within the 

National Information and Documentation Authority (NIDA), and the CBL.

56 

Work Program 

Objectives 

Before the events of 2011, TA in external statistics was considered necessary in the 

following areas: conducting a DI survey, improving collection and compilation methods 

for remittances including identifying countries of origin and transmission channels, and 

developing an IIP. 

In the area of price statistics, follow-up TA would help consolidate achievements 

regarding the CPI and the PPI. 

It is unclear at this stage what the consequences of the political changes will be for 

statistics. A new assessment will be necessary when the situation returns to normal. 

Outcomes 


 

 

 

 

The quality of BOP has improved gradually, in particular regarding remittances. 

A DI survey has been conducted. 

Libya compiles and publishes an IIP for the country. 

BPM6 methodology has been implemented. 


 

 

 

The CPI weights have been updated based on the results of a new household 

budget survey (HBS) that needs to be conducted. 

In the medium-term, the GAFI should expand coverage of the PPI to include 

agriculture (currently the PPI is limited to manufacturing, mining, and utilities). 

In the long term, the GAFI should continue expanding coverage to include 

construction, services, and other activities to align with the production accounts 

compiled by the NA staff. 

Outputs 


 

 


Hands-on training on the compilation of the IIP.

57 

 

 

DI survey form. 



The main outputs of TA on price statistics are: 

 

 

 


Hands-on training on the compilation of the CPI following the conduct of a new 

HBS. 

Hands-on training on increasing the coverage of the PPI to sectors of the economy 

currently not covered. 


The political situation allows the resumption of TA delivery in normal conditions. 

Sufficient staff and financial resources are available for the CBL and the GAFI to perform 

their respective duties in the production of macroeconomic statistics. Institutional 

knowledge needs to be maintained through a low turnover of staff. 

Outreach to businesses needs to be conducted by the authorities to raise awareness of 

purposes and importance of the PPI, and build confidence in the confidentiality of the 

surveys. 



A diagnostic mission visited Libya in 2006 to review the PFM systems and processes, and 

developed a medium-term action plan spanning mid-2006 through 2009. The mission 

recommended a range of measures for strengthening, inter alia, the macro-fiscal 

capabilities of the Ministry of Planning and Finance (MoPF); unifying the budget and 

expanding its coverage; improving the budget classification structure; strengthening 

expenditure control and improving budget execution processes; implementing a GFSM 

2001-based COA; and establishing a TSA. 

Some progress has been made in implementing the strategy recommended by staff in 

2006 to strengthen PFM in Libya. Examples include the budget unification, 

improvements in the budget classification, and the establishment of a macro-fiscal unit. In 

some areas, such as establishing a TSA, a decision to move forward has been adopted

58 

only recently. However, the implementation of other recommendations of the 2006 

mission is deemed to be slow. 

In 2009, an FAD/METAC mission took stock of PFM reforms and produced an action 

plan with a focus on establishing a TSA. 

Objectives 

Work Program 

The current political transformation in Libya has delayed the reform agenda. A number of 

reforms have been implemented in past years, but they remain piecemeal. The present 

focus should be on integrating the PFM reforms and advancing the remaining ones to 

reinforce the institutional integrity of the PFM system and enable the MoPF to perform all 

the functions of a modern central fiscal management agency. In particular, reform 

priorities should focus on the development of a medium-term, strategy-oriented budget 

formulation process, supported by a more analytical presentation of the budget; a more 

efficient and effective budget execution process based on adopting an effective TSA 

system; and strengthened financial compliance through a proper commitment control 

system, and an accounting framework, along with more stringent reporting requirements, 

and better defined internal audit functions. 

Outcomes 

Upon completion of the identified priorities reforms, focused on the budget and its 

formulation-execution-control cycle, the following outcomes are expected to be achieved: 

 

 

 

 

A medium-term, strategic-oriented budget formulation process consistent with the 

macro framework and development plans is adopted, supported by a more 

analytical presentation of the budget. 

An effective TSA is adopted. This will lead to a more efficient and effective 

budget execution process based on the extension of the development budget 

unified bank account system to the entire budget. 

Financial compliance is strengthened through an effective commitment control 

system as an integral component of the accounting framework, along with more 

stringent reporting requirements, and better defined internal audit functions. 

Budget classification is improved and permits a better tracking of capital 

expenditures according to IMF GFS and the COFOG.

59 

Outputs 

The main outputs of the TA would be as follows: 

 

 

 

 

 

A report setting out its main findings and recommendations with an updated PFM 

action plan. 

Assistance in developing and implementing an MTFF. 

Assistance in following up on the implementation of the TSA. 

A report on how to develop and integrate a commitment control system within the 

accounting framework. 

Assistance in developing detailed mapping methodology for compiling items and 

data between the old and new budget classifications in order to minimize breaks in 

historical data series. 


It is assumed that political stability in the country and high level political support for all 

reforms, but particularly for those—like budgetary reforms—that require long gestation 

period and whose benefits may not be immediately visible to the PFM reform agenda are 

maintained. 

It is expected that the High-Level Economic Policy Monitoring Committee that was 

established in March 2010 to coordinate macroeconomic policies is tasked with a leading 

and coordinating role and is supported by a small unit of full-time staff with a range of 

expertise to support its work and interface with the MoPF. 



Libya received revenue administration TA from FAD during 2004-2005. A January 2004 

FAD tax policy and administration mission recommended tax policy changes, including 

introduction of a VAT, subject to comprehensive modernization of the tax and customs 

departments. A May 2005 FAD revenue administration mission recommended an 

overhaul of the tax administration including: (1) a phased restructuring of the tax 

department to implement a function-based organization to replace the current tax-type 

structure; (2) establishing an LTO to more effectively administer largest taxpayers; (3) 

modernizing operations by introducing self-assessment, supported by modern business 

processes and IT systems, and legislative changes; (4) upgrading staff skills through 

recruitment and training; and (5) upgrading tax office buildings and equipment. The

60 

mission also recommended a set of measures to improve customs administration, notably 

introducing selective approaches to control shipments. 

METAC provided assistance to the Libyan tax administration during 2006-2009, through 

mainly follow-up visits. These visits highlighted some commendable progress in 

modernizing tax administration, including initial steps toward: (1) establishing a reform 

project team; (2) designing a new HQ structure; (3) strengthening the administration of 

large taxpayers; and (4) preparing an IT master plan. However, these initiatives were still 

at an early conceptual stage with little if any concrete actions taken and a general feeling 

was building up indicating the lack of interest of the Libyan authorities to implement the 

reforms. Since early 2008, however, the authorities have expressed their interest in 

receiving increased METAC assistance in revenue administration, both in tax and 

customs. 

The latest METAC revenue administration advisor follow-up visit (July 2010) concluded 

that progress has been slow in implementing the tax administration modernization 

program. The tax administration still reflects a weak structure, outdated assessment 

systems, and inappropriate operating tools. The current status is characterized by an 

archaic infrastructure, including: (1) operational offices organized around types of taxes 

with duplication of functions across administration of different taxes; (2) weak HQ with 

unclear functional statements; (3) outmoded administrative assessment processes; 

inconsistent and non-standardized internal procedures; (4) insufficient and inappropriate 

computerization and management information systems; (5) little knowledge of the 

taxpayer population and lack of unified Tax Identification Number (TIN); (6) ineffective 

taxpayers’ segmentation with the currently so-called LTO focusing on corporations in 

Tripoli without a compelling selection criteria; and (7) lack of taxpayer education and 

assistance. While some initiatives were taken through early 2007 toward establishing a 

reform project team, reorganizing HQ structure and preparing an IT master plan, the 

reform process remained however stalled. 

Objectives 

Work Program 

Improving revenue performance and raising revenue collection are key priorities. A clear 

strategy and path of reforms need to be developed to support restructuring the revenue 

departments (tax and customs), introducing self-assessment and risk-based compliance 

management, and preparing for the introduction of VAT. 

Going forward, there is an urgent need to conduct an FAD diagnostic mission, with 

METAC participation, to revise the modernization plan and the sequencing of its 

components, and ascertain the full commitment of the authorities to its delivery. While

61 

TA has been suspended because of the political and security conditions during FY 2012, 

post-conflict support is likely to be provided in FY 2013. In this context, an FAD review 

mission would be a first step in assessing the current status of tax and customs 

administration and identifying the main priorities for TA. 

Outcomes 

 

 

 


o Integrated function-based HQ. 

o Introducing segmentation approaches and establishing an LTO. 

Streamlined and automated operations: 

o Effective computerized ITAS. 

o Enhanced registration system. 

o Streamlined filing and payment procedures. 


o Strengthening self-assessment implementation. 

Outputs 

 

 

 

 

 

 

 

TA reports. 

Trainings and country workshops 

Regulatory framework for integrated function-based HQ. 

Regulatory framework for an effective LTO. 


Regulatory framework for self-assessment implementation. 



The security situation allows delivery of TA in normal conditions. 

Sufficient financial and human resources are provided to acquire, customize, rollout and 

maintain an off-the-shelf ITAS.

62 

VII. SUDAN 



METAC provided extensive capacity building TA to the Central Bank of Sudan (CBOS) 

in the form of training to its supervisors. The main topics covered were: 

 

 

 

 

 

IFRS and conventional bank accounting. 

Banking operations and Basel Committee recommendations and principles. 

Banks’ risk assessment and management. 

Islamic banking operations and supervision. 

Risk-focused supervision and offsite supervision, including the supervision of 

money-exchange operations. 

METAC also assisted the CBOS in developing some regulations, especially on liquidity 

measurement and risk management. 

In addition, METAC started in 2008 a project to upgrade the credit registry function 

through expanding the demographic and financial database on borrowers and installing a 

new software. Substantial progress has been achieved till now. A new Credit Information 

and Scoring Agency (CIASA) was established in 2012 and assumed the functionalities of 

the central bank credit registry. Some deficiencies still remain with respect to the quality 

and completeness of data submitted by banks to CIASA. 

Objectives 

Work Program 

The main objective of TA in banking supervision to the CBOS would be to enhance the 

regulatory and supervisory framework for Islamic banks to align it with the latest 

standards issued by the Islamic Financial Services Board (IFSB) and the best practices on 

Islamic banking supervision. 

Outcomes 

 

The CBOS has a well functioning credit registry that helps banks make better 

credit decisions and that allows the CBOS to better oversee the credit risk in the 

financial sector.

63 

 

 

 

The supervisors at the CBOS are well trained and have good knowledge of the 

international supervisory standards and prudential requirements for Islamic 

banking products and services. 

The CBOS has an updated regulatory framework that includes comprehensive 

instructions and guidelines on the supervision of Islamic banking services and 

products. 

The CBOS has effective operational frameworks including manuals for effective 

supervision of Islamic banks and a strong enforcement framework. 

Outputs 

METAC will continue the assistance provided to the CBOS in enhancing its credit 

registry function through: 

 

 

Continuing the peripatetic visits by the short-term expert to ensure the new credit 

registry system is functioning properly and is being used effectively by banks and 

CBOS departments. 

Explore the possibility of further upgrading the capability of CIASA to include 

data from Micro-Finance Institutions (MFIs) and to provide credit scoring 

services. 

The training provided to the CBOS supervisors and staff will cover a multitude of 

banking supervision and financial stability topics, including: stress testing, dealing with 

weak banks, macro prudential oversight, and risk-focused supervision. METAC will also 

assist in developing new banking regulations and enhancing some of the existing 

prudential regulations, namely: enforcement regulation, stress testing guidelines, and loan 

classification and provisioning. 

METAC TA will also aim at strengthening the practices and procedures followed for 

supervision of banks, including: 

 

 

Developing new risk-focused manuals for the onsite inspection and the offsite 

analysis of banks. 

Developing new policies and manuals for supervising and monitoring weak and 

problematic banks. 


Overall political circumstances and security conditions in Sudan remain amenable to 

providing TA.

64 

Banks are providing the credit registry with accurate and reliable information and the 

credit registry software is timely implemented. 

The CBOS and banks use the credit registry effectively and incorporate its findings in 

their work processes and operational frameworks. 

CBOS shows strong determination to enhance its regulatory and supervisory frameworks 

and takes timely decisions to effectively apply them. 

The CBOS supervisors develop a thorough understanding of the new regulations and new 

manuals and implement them in an effective manner. 



METAC has provided significant TA in macroeconomic statistics to Sudan in the areas of 

NA, external sector statistics, and price statistics. 

The main beneficiary institutions were the Central Bureau of Statistics (CBSS) for NA 

and price statistics and the CBOS for external statistics. 

BOP, IIP, and external debt statistics have improved significantly in terms of coverage, 

classification, and consistency. New improved report forms for the ITRS were 

successfully implemented; the CBOS now publishes a full IIP statement. 

Following up on assistance provided to the CBSS by the Arab Institute for Training and 

Research in Statistics, METAC helped the CBSS complete the compilation and 

publication of the first PPI for Sudan, in early 2013. 

Objectives 

Work Program 

TA from METAC will concentrate on external sector statistics, where the priority is the 

implementation of a DI survey, and the improvement of data on current and capital 

transfers. METAC will continue working with the CBOS, the MOI, and the CBSS, and 

the CBSS on cooperation between the three institutions for the DI survey, as using their 

scarce resources together seems the best way to achieve the effective implementation of 

the survey. Another area where improvement is needed is the coverage of capital 

transfers, currently largely under-covered. In this respect, the CBOS needs to cooperate

65 

closely with the Ministry of International Cooperation, and with the international 

cooperation departments of the line ministries involved. 

Following the split of the country, guidance will be needed to adapt the compilation 

system to the arrangements between Sudan and South Sudan, which still have to be 

finalized. 

The adoption of BPM6 methodology will also require METAC assistance, in particular 

for adapting the ITRS to the new standards. 

Outcomes 


 

 

 

 

The DI survey is conducted, and the results are published. Sudan has agreed to 

participate in the CDIS and submitted the DI survey results accordingly. 

Capital transfers are identified and recorded in the BOP. 

The compilation system is adapted to the new economic territory of the country 

(e.g. residence status of bank account holders, DI relationships with South Sudan). 


Outputs 


 

 

 

 


DI survey form. 

Hands-on training of the CBOS, MOI, and CBSS surveyors on the conduct of the 

DI survey. 




The political situation allows the delivery of TA in normal conditions. 

The authorities are willing to take ownership of the recommendations provided by TA 

missions.

66 

Adequate resources are available to the statistical agencies to perform their duties; in 

particular, funding is available for the conduct of the DI survey, and institutional 

knowledge needs to be maintained through a low turnover of staff 



Sudan has been supported during the last few years by a significant TA program from 

FAD and METAC, mainly centered on budget classification, cash management and TSA. 

The latest FAD/METAC mission visited Khartoum in June 2012. 

METAC worked on implementing the three-year TA strategy developed by the February 

2009 FAD-METAC mission in consultation with the authorities. METAC held several 

missions to assist the authorities implement a TSA and develop key procedures of cash 

management, mainly cash projections and monitoring. 

METAC delivered a number of missions on budget classification in order to make it 

consistent with GFSM 2001 operating on cash accounting basis, the most recent mission 

took place during April 2013. 

Objectives 

Work Program 

METAC will continue to provide TA to further strengthen the capacity of the MOF to: (1) 

strengthen the current preparation process and enhance budget credibility; and (2) enforce 

the TSA and improve cash management processes and procedures. 

Outcomes 

Strengthening the budget preparation process is a priority and the following outcomes are 

expected to be achieved: 

 

 

 

An MTFF is developed and used on a rolling basis for budget preparation. 

The use of reserves in the budget is rationalized and the use of the “emergency 

reserve” is specified in a regulation. 

Budget preparation procedures between MOF and line ministries will be 

streamlined, and line ministries will be responsible for their own budgets and will

67 

be submitting consolidated budget proposals for all spending under them within 

an overall expenditure ceiling. 

Upon completion of the reforms related to Budget Execution, the following outcomes are 


 

 

Central government’s banking arrangements are consolidated into a TSA. Thus 

the government will not need to borrow for one account whilst holding surplus 

cash in another. 

An active cash management function is developed to identify at the earliest 

opportunity temporary and permanent (or structural) cash shortfalls so that the 

latter is effectively used for expenditure adjustments. 

Outputs 

The main outputs of the TA on Budget Preparation: 

 

 

 

 

Assistance in developing and implementing an MTFF. 

Assistance in developing a revised budget calendar that provides adequate time 

for all key phases of the budget preparation cycle. 

Training to line ministries on how to prepare budget proposals, including forward 

estimates and within an overall ceiling. 

Budget classification is improved and permits a better tracking of capital 

expenditures according to IMF GFS and the COFOG. 

The main outputs of the TA on Budget Execution: 

 

 

Assistance in implementing one of the TSA suggested options. 

Assistance in developing a modern cash planning and management function. 


Given the political and security environments, and the considerable need in terms of 

capacity building, the reform program will be very challenging and will require a strong 

commitment from the authorities.

68 

In addition to serious problems of software at the CBOS 6 , some other institutional issues 

related to the relationship between the CBOS, Chamber of Accounts, and the Ministry of 

Finance and National Economy (MoFNE) are improved as soon as possible. 



Sudan has implemented significant tax reforms since 1999, including introduction of 

VAT (2000); removal of income tax exemptions (2002-2003); imposition of excises on 

petroleum products; and improvement of the tariff structure (2004-2005). Nevertheless, 

tax revenue performance remained very low by regional standards. Given the challenges 

and risks ahead, including: trade liberalization, a probable drop in oil prices and revenue, 

rising expenditure pressures associated with wealth-sharing arrangements, and 

overlapping taxation powers across national and sub-national government, further efforts 

are needed to increase domestic tax revenue, notably through improvements in tax and 

customs administration performance. 

Sudan has engaged in an exhaustive tax reform program since 2006. Following FAD and 

METAC recommendations, Sudan has developed a tax administration modernization 

strategy focusing on four key components: (1) establishing a function-based HQ structure 

and restructuring the network of tax offices for corporate businesses (with separate offices 

for large, medium-size, and small taxpayers); (2) integrating administration of VAT and 

income tax for large and medium-size taxpayers above the VAT registration threshold; 

(3) introducing self-assessment methods for these taxpayers; and (4) simplifying the small 

business taxation system. 

Since early 2007, METAC has supported the launching of these reforms and has been the 

major TA provider to the tax authorities. Good progress has been reported in key areas 

including: (i) adoption and on-going implementation of a function-based HQ structure; 

(ii) establishment of large, medium-size and small taxpayers’ offices in Khartoum; (iii) 

implementation of self-assessment for corporations; and (iv) increase of the VAT 

registration threshold. 

METAC experts have also provided follow-up advice in designing the new HQ structures 

and developing audit methodologies consistent with self-assessment principles. However, 

the reform process is being hampered due to persisting weaknesses in taxpayer 

registration, business processes and procedures, compliance management, and use of IT 

to support operations. Significant challenges remain on both the tax and customs 

6 Notably to engineer the zero-balance accounts system and its overnight sweeping for the TSA.

69 

administration fronts. These include: (1) tax administration complexity introduced by the 

2005 interim constitution that has led to overlapping taxation powers across national and 

sub-national jurisdictions, uncoordinated and duplicative taxation policy, tax systems and 

administrative arrangements; (2) poor compliance management; (3) high tax exemption 

levels that are poorly managed; (4) fragmented and inefficient tax and customs 

modernization and reform governance structures; (5) inadequate political commitment to 

reform; and (6) inappropriate reform funding levels. 

The August 2011 FAD mission reiterated the problematic context of tax reform 

implementation and recommended a set of urgent TA, to be delivered primarily by 

METAC. It also raised concerns in respect of the apparent slow-down in the pace of 

reform. 

Objectives 

Work Program 

Improving tax administration and reassessing tax policy (with a view to reducing tax 

exemptions and widening the base) remain the key objectives. In this respect, reinforcing 

self-assessment and strengthening risk-based compliance management are top priorities, 

entailing intensive and focused TA to support the reform agenda. 

Further to the findings of the August 2011 FAD mission, priority in TA delivery has been 

re-directed to the following areas: (1) taxpayer population and registration; (2) risk-based 

compliance management; (3) business processes; (4) computerized ITAS; (5) 

performance of the LTO and MTOs – for both income tax and VAT; and (6) embedding 

tax administration performance management information in the day-to-day running of the 

taxation chamber. 

Outcomes 

 





 



programs. 

o Strengthening collection operations and arrears management.

70 

 


Outputs 


 

 

 

 

 

 

 

 

TA reports 


Law establishing a unified tax administration. 



Audit manual. 

TPC law. 




maintain an off-the-shelf ITAS. 

The MOF and Taxation Chamber senior management show continued commitment to 

fiscal reforms and provide necessary resources to implement recommended measures.

71 

VIII. SYRIA 



Prior to the political turmoil that started in 2011, Syria was the main recipient of TA in 

banking supervision from METAC. This reflects the significant TA needs in banking 

supervision. Main TA activities included: 

 

 

 

 

Strengthening the banking supervision framework through drafting many banking 

regulations, mainly: capital adequacy ratio, credit risk management, credit 

concentration limits, foreign exchange exposures and limits, loan classification 

and loan impairment and provisioning, and risk management. 

Providing extensive technical advice on the implementation of the Basel II 

framework. 

Reviewing and updating the offsite supervision framework and training 

supervisors on its implementation. 

Training on various onsite and offsite banking supervision issues. 

Work Program 

Objectives 

The main objective of the TA provided by METAC to the Central Bank of Syria (CBS) 

was to improve its regulatory and supervisory frameworks and to upgrade the work of its 

public credit registry to make them in line with best practices and international standards. 

Outcomes 

The main outcomes that were expected to be achieved as result of the TA provided by 


 

 

 

The CBS has an effective regulatory framework that addresses the main risks 

faced by banks and the banking system. 

The CBS has a good system of risk-focused supervision that relies on a balanced 

mix of well coordinated and effective onsite and offsite banking supervision. 

The CBS has supervisory and regulatory frameworks that are in line with Basel II 

requirements.

72 

 

The CBS has a well functioning credit registry that provides relevant and accurate 

credit information and well structured reports, contributing positively to the 

soundness and safety of the Syrian banking sector. 

Outputs 

The main outputs of the TA to enhance the supervisory process at the CBS would be as 

follows: 

 

 

 

 

Revise the onsite inspection process and develop a new risk-based onsite 

inspection manual. 

Establish an enforcement framework or manual for dealing with weak and 

distressed banks and train supervisors on implementing the manual. 

Review and develop the offsite prudential reports produced in the BSD at CBS, 

and assist the CBS in preparing a financial stability report. 

Train the supervisors on how to apply the new onsite and offsite tools and 

techniques. 

METAC has previously offered extensive help to the CBS to develop new and revise 

existing regulations and will continue to provide assistance to improve the CBS 

regulatory framework, in particular: 

 

 

 

 

 

Assistance in implementing regulations that were drafted with the help of 

METAC. 

Revising the regulations setting controls and limits on related party transactions. 

Revising the existing policies and procedures governing the conduct of external 

audit assignments at banks. 

Establishing a regulatory framework for consolidated supervision at the CBS. 

Reviewing the regulations pertaining to related party transactions and establishing 

adequate controls and limits on such transactions. 

METAC started assisting the CBS with establishing an action plan for Basel II 

implementation and to implement the action plan. This TA will produce the following 

outputs: 

 

Draft regulations and templates for the implementation of pillars 1 and 3 of Basel 

II.

73 

 

 

Develop tools and procedures for the application of pillar 2 of Basel II, in 

particular producing templates and providing guidelines for the Internal Capital 

Adequacy Assessment Process (ICAAP) and the Supervisory Review and 

Evaluation Process (SREP). 

Train the CBS supervisors on all aspects and pillars of Basel II. 

In terms of credit registry, METAC will be providing assistance throughout all the phases 

of the action plan for the expansion and enhancement of the functioning of the credit 

registry. The assistance and recommendations will produce the following main outputs: 

 

 

 

 

 

Provide guidance to enhance the legal framework for the credit registry operation 

and revise the current credit reporting regulations and the policies and procedures 

governing the operation of the credit registry. 

Provide advice to expand and improve the scope and quality of database currently 

reported to the credit registry. 

Assist the CBS in acquiring new software for the credit registry and provide help 

and recommendations in all the phases of the installation of the software. 

Review the credit reports those are currently produced by the credit registry and 

establish new credit reports that are more useful to the banks and to the CBS and 

in line with best international practices. 

Train the CBS staff on the best and international practices for credit registry 

functioning and all the aspects of operating an effective credit registry. 


Achieving the objectives set for the period ahead depends on the evolution of the security 

and political situation in Syria. Once the situation permits, a diagnostic mission would be 

necessary to take stock of the previous achievements and assess the TA and capacity 

needs of the CBS. 



Since its inception, METAC has provided TA in statistics to Syria essentially in the areas 

of external sector statistics, NA, and price statistics.

74 

An STA resident statistics advisor was also posted in Syria for two years, in July 2008, to 

help the Central Bureau of Statistics (CBStat) implement the recommendations of the 

December 2007 STA multi sector mission in the area of NA. 

The beneficiary institutions were the CBS and CBStat. 

On BOP statistics, assistance was provided in all components, in particular in the area of 

DI, international reserves, IIP, and external debt transactions. METAC has provided 

assistance in reviewing the NA methodology and all data sources. Weaknesses were 

identified and solutions provided. Regarding price statistics, METAC has provided 

assistance in updating the CPI, and in taking the first steps towards the compilation of a 

PPI. 

Objectives 

Work Program 

Before the unrest started in early 2011, further TA was considered necessary to build up 

on progress made and consolidate any advances. 

When METAC resumes its activities in Syria, BOP and IIP statistics will continue to 

require short missions for data validation. Support will also be necessary to improve the 

periodicity of BOP statistics (from annual to semi-annual and maybe quarterly further 

down the road). METAC will assist the CBS and the MOF in submitting Quarterly 

External Debt Statistics database (QEDS) to the joint IMF/WB. In the longer term, TA 

will be provided to the CBS for the adoption of BPM6 methodology. 

METAC will help CBStat exploit the results of the 2010 HBS, in particular to update the 

weights for the CPI, and implement a PPI, when conditions permit. Follow-up TA on NA 

is also likely to be necessary. 

Outcomes 


 

 

 

 

The quality of BOP and IIP has improved gradually. 

BOP statistics are compiled at a higher frequency (quarterly). 

BPM6 methodology is implemented. 

External debt statistics are submitted quarterly to the QEDS database.

75 


 

 

The CPI weights have been updated with the most recent HBS. 

The PPI has been launched using information from industrial statistics collected in 

principle in 2011, and is compiled on a regular basis. 

The main outcome of TA on NA is the compilation of NA based on the results of recent 

surveys. 

The work program and outcomes will need to be reassessed in due time. 

Outputs 


 

 

 

 


Hands-on training on the compilation of remittances in cooperation with the main 

partner country in this respect (Lebanon). 

Regular validation of BOP and IIP statistics through regular reviews of data 

before their submission to STA for publication. 



The main outputs of TA on real sector statistics are: 

 

 

 


Hands-on training on the compilation of the CPI and PPI. 

Hands-on training on the exploitation of the household survey for the compilation 

of NA. 



Sufficient staff and financial resources are available for the CBS and CBStat to perform 

their respective duties in the production of macroeconomic statistics. Institutional 

knowledge is maintained through a low turnover of staff.

76 



Between 2006 and 2011, METAC’s activities focused on budget integration. Two 

diagnostic missions (January 2010 and January 2011) were conducted by FAD with 

METAC participation as part of the programmatic approach. These missions reviewed the 

PFM reform and updated the action plan. METAC’s work on budget integration has 

focused on institutional, managerial, and financial issues. 

The responsiveness of the authorities to TA provided by METAC was good on the 

following fronts: 

 

 

 

 

The amendment of the Basic Budget Law prior to undertaking integration of 

capital and current expenditures was completed in October 2006. 

The transfer of competences and staff from the State Planning Commission (in 

charge of capital expenditures) to the MOF in 2008 for 2009 budget preparation 

(as recommended by METAC) was effectively done in mid 2008. 

A “top-down” budgeting and an MTFF were implemented. A three-staff 

forecasting team, set up in 2009 at the Budget Directorate, developed the first 

forecasts in early 2010 with the support of METAC. 

Following up on METAC TA in 2008-2009, a program based budget for 2010 was 

completed starting with two pilot ministries (Education and Agriculture). The plan 

was to include seven additional ministries in 2012 and gradually extend to all 

others between 2013 and 2014. 

The reforms were halted since the uprising in mid-March 2011. TA program would 

resume once the political and security situation permits the delivery and implementation 

of TA. 

Objectives 

Work Program 

The January 2011 FAD/METAC/WB diagnostic mission took stock of the good progress 

in the budget integration reform and indicated that, thanks to METAC’s support, the 

MOF has now sufficiently upgraded its capacity to run the budget reform on its own. 

METAC will continue to support the budget reform and will also offer additional TA to 

treasury reforms. TA would be needed in the following areas:

77 

Budget Preparation: 

 

 

Establish an integrated budget planning and management process that effectively 

links policies and budgeting and brings together current and capital spending 

under a unified budget. 

Increase the degree of fiscal control over the economic entities and present 

decision makers with more information on the finances of the economic entities 

sector. 

Budget Execution: 

 

Modernize the treasury system with reference to cash management, fiscal 

reporting, and budget classification structure. 

Outcomes 

Upon completion of the Budget Preparation’s reforms, the following outcomes are 


 

 

 

Budget preparation is linked to necessary and related developments in fiscal 

forecasting, top-down budgeting, budget classification changes. 

The authorities would have made substantial progress in the reform strategies for 

budget integration, medium-term and top-down budget preparation and improved 

expenditure planning. 

The Budget Department would be reorganized into integrated sector 

responsibilities and the current and investment budgets would be fully integrated. 

Upon completion of the Budget Execution’s reforms, the following outcomes are 


 

 

Improved in-year forecasting of expected revenues and expenditures. 

Budget classification is compliant with the GFSM 2001 and the COFOG. 

Outputs 

The main outputs of the TA on Budget Preparation: 

 

 

Seminars and workshops with the relevant departments of MOF and line 

ministries. 

On-going supervisory TA at MOF.

78 

 

Assistance with the organizational restructuring of the MOF. 

The TA on Budget Execution will produce the following outputs: 

Assist the Treasury Department with developing fiscal reporting 7 . 

 

 

 

Assistance in developing a cash planning function, starting with basic historical 

analysis of monthly cash flows. 

Training to ensure production of accurate government cash profile by week and 

month over FY. 

Assistance in developing detailed mapping methodology for compiling items and 

data between the old and new budget classifications in order to minimize breaks in 

historical data series. 


Due to the unrest in the country, TA missions to Syria have stopped since 2011. Once the 

situation permits, a diagnostic mission would be necessary to take stock of the previous 

achievements and assess the capacity of the Ministry of Finance. 



Since the establishment of METAC, Syria has benefited from substantial TA aimed at 

strengthening the capacity of the tax administration in implementing an ambitious reform 

program. During 2004-2005, and in coordination with FAD and donors (mainly EU), 

several assessment visits took place to design the reform strategies and the preliminary 

work program for key TA areas and topics. 

Since 2006, TA in tax administration focused on the following main areas: (1) restructuring 

and re-organization of the tax administration; (2) implementing a taxpayer 

segmentation and establishing LTO and MTOs; (3) streamlining tax operations including 

the development of a taxpayer numbering/identification system; and (4) simplifying tax 

administration legislations in preparation of the implementation of self-assessment and 

introduction of VAT. 

Syria responded well to METAC’s TA and several key results have been achieved: 

7 Examples of financial reports: budget implementation (budget revenues and expenditures), fiscal 

performance (budget deficit/surplus position), monthly cash flow, end-of-year full budget implementation, 

and final accounts.

79 

 

 

 

 

 

 

 

 

The General Commission for Taxes and Fees (GCTF) was established according 

to modern functional models. 

The LTO was established and is serving as a pilot site for the operations’ 

modernization. 

Key processes have been reengineered and automated within the interim IT 

solution. 

The Registration system has been developed and the unique TIN has been 

implemented in the LTO. 

Plans for implementing the Business Activity Code (BAC) based on the 

International Standard Industrial Classification (ISIC) have been developed. 

The TPC has been drafted. 

The VAT draft law has been developed. 

Preparation plans for launching the MTO pilot site in Damascus have been 

finalized. 

Work Program 

Objectives 

Over the medium-term, the goal is to increase revenue and develop the tax and customs 

administrations’ capabilities to manage effectively the path of reforms. Further to the 

recent political developments, the strategy has to be revisited and new plans need to be 

developed to support restructuring the revenue departments, introducing self-assessment 

and risk-based compliance management, and preparing for the introduction of VAT. 

METAC will continue to provide TA to further strengthen the capacity of the tax 

administration to: (1) implement self-assessment; (2) introduce VAT; (3) strengthen and 

roll out taxpayers’ segmentation (LTO and MTOs); (4) streamline and automate tax 

operations; (5) apply risk-based compliance management schemes; (6) modernize / 

strengthen enforcement measures; and (7) simplify tax administration legislations. 

In addition to supporting tax administration, METAC will support customs administration 

in order to improve its readiness to implement VAT. Urgent TA will be needed in the 

following customs areas: (1) automation of operations and implementation of the 

Automated System for Customs Data Management (ASYCUDA); (2) review of the 

valuation system; (3) development of a risk management system; (4) strengthening of

80 

post clearance audit; (5) streamlining of procedures, particularly collection and 

accounting procedures; and (6) re-organization and re-structuring of customs’ offices. 

Outcomes 

 


o Strengthening LTO and establishing MTOs. 

 





 


o Implementation of self-assessment. 


programs. 

 


o Introduction of VAT. 


 


Outputs 




 

 

 

 

 

 

 

 

 

TA reports. 




Regulatory framework for MTOs. 




Audit manual.

81 

 

 

 

 

 

 

VAT law. 

TPC law. 






The political and security situation allow the resumption of TA delivery. 



82 

IX. WEST BANK AND GAZA 



With METAC’s assistance, the Palestine Monetary Authority (PMA) undertook a major 

reform effort to improve the functioning of its credit registry over the following three 

phases: (1) addition of comprehensive and detailed information on borrowers including 

MFIs; (2) automating the credit registry; and (3) developing an internal credit scoring 

system for borrowers. The PMA credit registry is considered one of the most effective 

public credit registries in the region and became the second central bank credit registry 

(after Malaysia) to offer internal credit scoring services. 

In addition to the above, METAC also delivered significant TA in other banking 

supervision areas, the most important of which are: 

 

 

 

 

Advising on the organizational changes of the BSD. 

Improving the system of supervisory call reports, developing an EWS based on 

statistical data analysis, and developing stress testing regulations and models for 

banks. 

Training on Basel II requirements and guidelines and assisting in developing a 

road map for Basel II implementation. 

Training on various other offsite and onsite supervision issues. 

Over the last year, METAC started a new TA project aimed at enhancing the risk-focused 

features of PMA supervision. Hence, a METAC short-term expert is performing 

peripatetic visits to the PMA to assist in developing a new risk-focused supervision 

manual. 

Objectives 

Work Program 

The PMA has been consistently enhancing its regulatory framework by issuing new 

regulations to encompass all the latest developments in banking supervision standards. In 

that context, the PMA issued many regulations that include, among others, regulations on 

Basel II, corporate governance, business continuity, and licensing.

83 

In order to align its supervisory framework with its regulations and with best practices, 

the PMA is in need to update its procedures and supervision manuals and make them 

more risk-oriented. 

Hence, the main objective of the TA by METAC to the PMA would be to continue 

developing a new risk-focused system of onsite and offsite supervision that allows for an 

effective prudential supervision and monitoring of the risk profile of banks and for a 

better analysis of the soundness and stability of the overall financial sector. 

Outcomes 

 

 

The PMA has a new risk-focused supervision manual that is tailored to the risk 

profile of each banking institution and that takes into consideration the latest 

developments in banking supervision. 

A new improved CAMELS 8 rating methodology is adopted, which builds on the 

work of the onsite and offsite branches of banking supervision and reflects the 

effective coordination between those two functions. 

Outputs 

 

 

 

A new risk-focused supervisory manual is delivered to the PMA, discussed with 

them and finalized. 

A series of training sessions, including on-the-job training, is delivered to the 

PMA supervisors in order to explain the new risk-focused approach and manual 

and to assist in the analysis of banks’ financial position. 

An updated methodology for CAMELS ratings, possibly including a framework 

for CAMELS-based enforcement framework, is prepared and submitted to the 

PMA for discussion and approval. Training is also provided to supervisors on 

applying the new CAMELS methodology. 


Overall political situation remains stable and security constraints remain within tolerable 

levels. 

PMA senior management approves the new manual and methodology in a timely manner 

and takes effective measures to enforce it at the level of BSD. 

8 Acronym for prudential ratios: Capital adequacy, Asset quality, Management, Earnings, Liquidity, and 

market Sensitivity.

84 

The BSD will apply the new manual and consistently work on developing them so as to 

incorporate the latest relevant regulations issued by the PMA and the developments in the 

banking supervision standards. 

Effective coordination between the onsite and offsite supervision functions of the BSD at 

the PMA in order to enhance the effectiveness of supervision and to come up with 

representative CAMELS ratings. 



METAC has provided TA in macroeconomic statistics to West Bank and Gaza in the 

areas of external sector statistics and NA. Some assistance was also provided for the 

preparation of a Statistics Master Plan, and for an assessment of existing practices against 

SDDS requirements. 

The beneficiary institutions were the Palestinian Central Bureau of Statistics (PCBS) and 

the PMA. Besides NA, the PCBS is also involved in the collection and compilation of 

BOP and IIP statistics. 

Significant progress was achieved in most areas, and West Bank and Gaza was able to 

subscribe to the SDDS in April 2012. 

Objectives 

Work Program 

Further TA is needed to improve quarterly NA, especially the compilation of quarterly 

Gross Domestic Product (GDP) at current prices, and to move to the 2008 System of 

National Accounts (2008 SNA). 

Regarding external statistics, support may be needed to implement the changes requested 

byBPM6. In addition, the possibility of implementing an ITRS needs to be assessed, as an 

ITRS would help in providing at least a broad reference in terms of the volume of crossborder 

transactions, and contribute to a better coverage of remittances. 

Outcomes 

The main outcomes of TA on NA are: 

 

The compilation of NA broadly follows the 2008 SNA methodology.

85 

 

Improvements in the compilation of quarterly NA at current prices. 


 

 

 

 

Transactions related to aid are classified in accordance with BOP methodology 

and adequately recorded under current transfers, capital transfers, and loans. 

Consistency has been ascertained between BOP flows (current and capital 

accounts) and IIP stocks. 


Implementation of BPM6 is expected by 2014. 

An ITRS is being developed, subject to a positive feasibility study, and to the 

willingness of the authorities to go ahead with implementation. 

Outputs 

The main outputs of TA in NA: 

 

 


Hands-on training on implementing the 2008 SNA methodology and improving 

the compilation of quarterly NA at current prices. 


 

 

 

Mission reports/summary conclusions. 

Hands-on training on IIP compilation at the PCBS and the PMA. 




Remarkable progress was accomplished over recent periods in the area of real sector and 

external statistics to meet the authorities’ objectives of subscribing to the SDDS as soon 

as possible. This was made possible because of the high dedication of staff at the PCBS 

and the PMA. The consolidation of these results will, however, require additional 

resources, in both institutions, commensurate with the increased burden of the 

compilation of statistics at higher frequency and the necessity of observing SDDS 

requirements at all periods. Institutional knowledge needs to be maintained through a low 

turnover of staff.

86 



Since 2007, FAD has actively supported PFM reforms in West Bank and Gaza through 

HQ-based missions and visits by METAC experts. The reform process so far included 

three stages: 

 

 

Emergency measures initiated in 2007 to reestablish the government banking 

arrangements, rebuild the budget process, and restore fiscal reporting. 

Further reforms, initiated in 2008, that included organizational changes in the 

MOF, and the introduction of a Computerized Accounting System. 

Preparation of a broad strategy for PFM reforms included in the 2011-2013 

Palestinian National Plan (PNP). 

The authorities have made good progress in implementing PFM reforms in a difficult 

political environment. Major steps have been made on the institutional front by the 

establishment of a General Accounting Department, and a new Budget Department in 

Ramallah. The PFM infrastructure has been improved by operationalising the 

Computerized Accounting System and introducing a cash management function. The 

budget has been unified, including both the recurrent and development budgets. 

TA provided to West Bank and Gaza is based on a programmatic approach on PFM 

strategy incorporated in the 2011-2013 PNP. The programmatic approach includes HQbased 

missions for the duration of the PNP and short-term visits by METAC experts. 

During December 2011, an FAD/METAC mission assessed the overall progress in PFM 

since the last review in 2010 and recommended an updated framework for PFM reforms 

for the period 2012-2014. In January 2013, a METAC follow-up mission updated this 

framework for the period 2013-2015. 

Objectives 

Work Program 

The recent METAC follow-up mission (January 2013) highlighted key areas of 

immediate focus under the PFM reform strategy requiring METAC TA on: 

 

Improvement of the commitment control system: the commitment control system 

module introduced in the FMIS is in line with international practices. However, 

the lack of consistency in cash inflows and the related lack of realism of the cash

87 

forecasting that underpins the calculation of the budget allotments against which 

the commitment are issued, undermines the efficiency of the commitment control 

system. The task is further extended to 2013. 

 

Expansion of the TSA to include all the banks: funds channeled through the TSA 

have increased, but a number of donor accounts are still outside of the TSA 

coverage. 

Outcomes 

The following outcomes are expected to be achieved: 

 

 

Commitment control and cash management are integrated thereby ensuring that 

cash is available for payment. 

Coverage of existing TSA is improved. 

Outputs 

 

 

TA report including recommendations on how to link commitments to available 

cash and how to avoid the buildup of arrears. 

TA on how to extend the scope of the TSA to include all donors’ accounts. 


It is assumed that the diplomatic sanctions of the past, which halted reforms, are absent 

and that a proper budget framework that would enhance transparency and accountability 

exists. 

Security concerns, capacity constraints and shortfalls in donor aid, mainly from the Arab 

League countries, would remain the main risks. 



Along with several other donors, particularly the EU, FAD has provided strategic advice 

on reforms and measures to address fundamental weaknesses in the organization and 

operations of the West Bank and Gaza tax administration. The July 2003 FAD mission 

highlighted the importance of changing practices in the areas of assessment, compliance, 

taxpayer relations, and IT. The mission recommended improvements to income tax 

administration through the introduction of self-assessment and the establishment of 

regional LTOs.

88 

A major revenue administration restructuring project was being considered before the 

security situation deteriorated in 2006. This deteriorating situation resulted in closures 

preventing the movement of people and goods between cities and virtually destroyed the 

West Bank and Gaza economy. 

Prior to 2010, METAC did not conduct any activity in West Bank and Gaza in the area of 

revenue administration. This situation has changed recently, with METAC organizing two 

TA missions in 2010-2011, as well as assisting Palestinian officials with visiting tax 

administrations in Cairo and Beirut to benefit from their experience in implementing 

automated tax systems. 

The first METAC TA provided in 2010 aimed at supporting the launching of a new 

revenue administration reform project “Al-Siyada”, through: (i) reviewing the latest 

developments in the implementation and administration of the tax reforms; (ii) assessing 

whether the modernization program of the tax authority is being implemented in line with 

the 2003 FAD recommendations; (iii) providing advice and input to the authorities and 

consultants on the tax administration reform intentions under the Al Siyada project; and 

(iv) assessing the needs of the tax authority in terms of TA so as to support the 

implementation of the reforms’ components. 

The second METAC TA was provided in 2011 based on the recommendations of the 

October 2010 FAD diagnostic review on tax and customs, which led to a three-year 

reform strategy. This METAC TA aimed at assisting the tax administration in the area of 

IT. It recommended an IT modernization strategy covering short and long terms’ needs, 

including an interim plan to improve current computer system and automate core business 

processes until the acquisition of the new ITAS is completed. 

The October 2011 FAD follow-up mission laid out a plan to implement the first stage of 

modernization of the Palestinian tax administration, based on the framework for longterm 

reform outlined in the October 2010 FAD mission’s recommendations. A set of 

measures requiring TA was recommended – using LTO as a first recipient for change. 

However, there has been no progress in achieving the recommended structural measures, 

notably with respect to the organizational reform in the LTO. 

Objectives 

Work Program 

An important priority is the establishment of an LTO that will be used as a driver for 

change and a pilot for reforms. Key measures will be contingent on achieving this 

milestone, entailing strengthening organizational arrangements, establishing integrated

89 

function-based HQ, implementing self-assessment and risk-based controls, and 

automating operations and streamlining processes. 

Over the next period, METAC’s TA will focus on streamlining and automating core tax 

operations. 

Outcomes 

 


Outputs 




 

 

 

 

 

 

 

 

 

TA reports. 







Audit manual. 



The security situation permits delivery of TA in normal conditions. 



90 

X. YEMEN 



Due to the multitude of TA needs in banking supervision and the absence of other TA 

providers, METAC TA to the Central Bank of Yemen (CBY) was substantial and 

included the following: 

 

 

 

 

Drafting new regulations to enhance prudential supervision, including on the 

application of the Basel II accord. 

Upgrading the onsite inspection manual to become a risk-based manual and 

training the onsite supervisors on applying this manual. 

Training on onsite and offsite risk-based supervision, IFRS, and market risk 

management. 

Upgrading the credit registry function and reorganizing the credit registry 

department within the CBY. 

Over the last year, METAC partially resumed its TA to Yemen. A TA needs assessment 

mission took place in October 2012. Following that, METAC expert has been remotely 

working with the Yemeni authorities to help them enhance their framework for dealing 

with weak banks. 

Objectives 

Work Program 

The main objective of the TA provided by METAC to the CBY would be to improve its 

supervisory and regulatory framework and its supervisory reporting mechanism to allow 

for an effective banking supervision function. 

Outcomes 

The main outcomes that are expected to be achieved as a result of the TA provided by 


 

The CBY possesses strong offsite and onsite supervision functions with a good 

integration and coordination of their work.

91 

 

 

 

The CBY has an updated regulatory framework that is in line with Basel core 

principles for effective banking supervision. 

CBY supervisors possess the necessary skills to perform an effective and 

prudential supervision of banks’ activities. 

CBY has a good regulatory and supervisory framework for overseeing Islamic 

banks and financial institutions in Yemen. 

Outputs 

The main outputs of the TA to enhance the onsite and offsite supervisory functions at the 

CBY would be as follows: 

 

 

Enhance the current banking prudential reports to allow for a better offsite 

monitoring and analysis of banks’ risks and financial performance. 

Provide on-the-job training to CBY onsite supervisors to train them on the 

application of the new onsite inspection manual. 

The main regulations that will be needed to enhance the regulatory framework at CBY are 

the following: prompt corrective action, liquidity management and measurement, 

operational risk measurement and management, risk management, stress testing 

guidelines, and corporate governance requirements. 

The capacity building activities will be provided through seminars and workshops as well 

as on-the-job training in several areas like: offsite supervision, onsite supervision, risk 

management, Islamic banking, etc. 

METAC will also assist the CBY in establishing a good oversight framework over the 

Islamic banking activities in Yemen through: 

 

 

 

Developing a separate set of supervisory call reports for Islamic banks. 

Enhancing the current manual and practices (or developing new manuals) to take 

into account the supervision activities needed over Islamic financial products and 

services. 

Assist the CBY in developing the necessary regulations for Islamic banking 

activities and transactions.

92 


Political stability and security situation in Yemen are restored. 

The CBY provides all the necessary support for the assistance provided by METAC and 

shows strong and continued commitment to timely implement the advice and 

recommendations provided by METAC. 

The CBY takes all the necessary measures to enhance its supervisory function by 

ensuring that it has an adequate number of staff with good qualifications, and granting it 

sufficient powers and relevant legal protection that enable it to perform its duties with 

independence and integrity. 

The CBY staff makes good use of the knowledge acquired during the capacity building 

sessions and applies it effectively and objectively in the course of supervising banks. 



METAC has provided TA in statistics to Yemen essentially in the areas of price statistics, 

NA, and external sector statistics. 

The beneficiary institutions were the CSO and the CBY. 

METAC assisted the authorities in making changes to the calculation of the CPI and in 

improving the accuracy and timeliness of GDP estimates. METAC also provided 

assistance in improving the BOP, in particular improving estimates in the area of external 

trade, remittances and DI. 

Objectives 

Work Program 

Before the events of 2011, TA was considered necessary in the following areas: 

 

Price statistics: revising the CPI and starting compilation of a PPI. Regarding the 

CPI, the CSO should develop a national classification system, as an extended 

version of COICOP, to account for national requirements, improve the item 

specifications, and amend the survey questionnaires so that they better reflect the 

COICOP coding structure.

93 

 

 

External statistics: improving in particular the compilation of remittances and DI 

estimates (both for stocks and flows). An important issue is also to improve 

significantly the timeliness of the production of the statistics and their periodicity 

(at least to semi-annual). 

National accounts: review the use of the 2007 economic surveys in the update of 

the NA and accelerate the production of the data. 

It is unclear at this stage what the consequences of the political changes will be for 

statistics. A new assessment is likely to be necessary when the situation has returned to 

normal, and the work program may have to be adapted. 

Outcomes 


 

 

The CPI is compiled on sound bases, using appropriate item classifications and 

specifications. 

The CSO compiles and publishes regularly a PPI for Yemen. 


 

 

Improved coverage of remittances data; better estimates of DI flows and stocks. 

Semi-annual BOP data are available within six months of the reference period. 


 

Annual NA at current and constant prices are compiled on sound methodological 

bases and use the most recent economic surveys results. 

Outputs 

The main outputs of TA on price statistics are: 

 

 


Hands-on training of CSO staff on the production of a PPI for Yemen. 


 

 

Mission reports/summary conclusions. 

DI survey forms.

94 

 

 

Hands-on training on the conduct of a DI survey. 





Sufficient staff and financial resources are available for the CBY and the CSO to perform 

their respective duties in the production of macroeconomic statistics. Cooperation 

between the two institutions is highly desirable but is not effective currently. Institutional 

knowledge needs to be maintained through a low turnover of staff. 



METAC held several missions in Yemen on the establishment of a treasury at MOF, 

introduction of a new budget classification, and assistance in developing cash planning 

and management and commitment control systems. 

The latest TA activities in Yemen in the area of PFM include: 

 

 

 

An FAD/METAC mission in 2007 recommended establishing a treasury 

department that would integrate functions dispersed among line ministries, the 

CBY, and various parts of the MOF. The action plan for the reform was closely 

linked to the development of the Accounting-based FMIS. 

A METAC/WB mission in March 2010 assessed the TA needs in the area of PFM. 

An FAD/METAC mission in December 2010 focused on the development of cash 

planning and management and commitment controls. 

The authorities have made some progress in the PFM area. These include, among others: 

(i) piloting the Accounting-based FMIS in four line ministries; (ii) developing mediumterm 

fiscal estimates, as an initial step towards a Medium-Term Expenditure Framework 

(MTEF); (iii) establishing a CMU; and (iv) introducing a COFOG-compliant functional 

classification. 

Overall pace of the PFM reforms, however, remains slow. The main reason seems to be 

the still weak institutional capacity. In key areas, such as treasury, progress is minimal 

partly because of earlier delays in introducing Accounting-based FMIS key

95 

recommendations of the 2007 FAD/METAC mission (introducing a treasury system has 

not been implemented). 

Objectives 

Work Program 

The objective of this TA is to re-assess the situation since 2007 with a focus on budget 

execution and treasury areas in order to have a more efficient budget execution process by 

improving the capacity of MOF in estimating the future profile of the total cash resources 

available to the government to meet its budget expenditure plans. 

Outcomes 

Upon completion of the project, the following outcomes are expected to be achieved: 

 

 

 

 

A systemic PFM TA strategy is defined. 

Treasury functions are consolidated into MOF. 

Coverage of existing TSA is improved. 

CMU is strengthened. 

Outputs 

The main outputs of the TA are: 

 

 

Preparation of an action plan identifying reforms priorities and existing and 

currently planned donor support in PFM. 

Follow-up report on the development of the cash management and the TSA. 



The authorities are able to institutionalize the management of the reform process through 

the regular organizational structure of the MOF.

96 



Yemen has very challenging social and infrastructure needs and escalating fiscal 

pressures, as its hydro-carbon revenues, traditionally the dominant income stream, are 

dwindling. Tax revenues have remained flat at, or under 7 percent of GDP (or about 10.5 

percent of non-oil GDP), for a number of years. Yemen has a substantial revenue 

administration reform agenda, and has received substantial TA from the IMF (FAD and 

METAC) and the WB/International Finance Corporation (IFC). 

Since 2004, several FAD and METAC assessment visits took place to design the reform 

strategies and the preliminary work program for key TA areas and topics. Emphasis was 

placed on a comprehensive modernization strategy comprising: (1) organizational 

restructuring along functional lines; (2) rationalizing and streamlining the HQ and local 

office network; (3) introducing GST; (4) introducing self-assessment and improving 

compliance; and (5) segmenting the tax population. 

During 2006-2010, METAC complemented FAD TA (through METAC advisor and 

experts’ visits) to assist with the development of the GST, the strengthening of LTO 

operations, and the preparations for self-assessment. 

A key component of the reform agenda is the implementation of a fully-fledged GST. 

Yemen has struggled for years to introduce this tax. Legislation first received 

parliamentary approval in early 2001 but implementation was suspended pending 

amendments to the GST law. These were not approved until July 2005 but introduction of 

the new tax was again postponed. In April 2010, the government decided to move ahead 

with implementation of GST from July 1, 2010. This change has met with significant 

opposition from most of the business community and the tax remains only partially 

implemented (on importers and some large taxpayers). A new income tax introducing 

self-assessment was approved in August 2010 and was scheduled to take effect for the 

2010 assessment year. 

In addition to these major legislative reforms and together with new customs and 

investment laws that were also enacted in 2010, there has been some good progress in a 

number of administrative areas, across tax and customs. However, the exhaustive revenue 

reform program – with converging implementation dates – is putting significant pressure 

on the revenue administrations, and there is an obvious need to carefully consider the 

prioritization and implementation approach of these initiatives to optimize the chances of 

success for these key reforms.

97 

Work Program 

Objectives 

High priorities include implementing a fully-fledged VAT and shifting to self-assessment. 

An FAD mission, with the participation of METAC revenue administration advisor, 

visited Sana’a in February 2011. It examined high priority issues that impact revenue and 

customs administrations, and recommended an array of immediate and medium-term 

measures. It put forward a set of stabilization actions for the VAT, underlining the need to 

benefit from the recent successful resolution of the constitutional challenge and seize this 

opportunity to restart implementation in a moderate way. This approach would entail a 

more targeted and manageable base of taxpayers, and better industry consultation and 

more assistance. 

Going forward, METAC will have to play a significant role and provide thorough 

support, particularly in VAT and audit training, operations’ streamlining and automation, 

and self-assessment implementation. 

Outcomes 

 





 


o Strengthening self-assessment implementation. 


programs. 

 


Outputs 

o Revision of the VAT law. 


 

 

 

 

TA reports. 



Regulatory framework for self-assessment implementation.

98 

 

 

 

 

 


Audit manual. 

Revised VAT law. 

TPC law. 



The security situation allows the resumption of TA delivery. 



99 

APPENDIX I. DEBT MANAGEMENT AND MONEY MARKETS DEVELOPMENTS 

PAST ACTIVITIES 

AFGHANISTAN 

Following an assessment mission undertaken by METAC Debt Management Advisor in 

June 2010, a report was produced assessing the feasibility of introducing Sukuk or 

conventional government debt instruments; the benefits and concerns related to Sukuk 

issuances; the preconditions for establishing a Sukuk market; the training requirements; 

the legal and regulatory framework for Islamic or conventional products; and the market 

demand for Sukuk or conventional products. 

The Afghanistan authorities have expressed interest in issuing Shariah-compliant Sukuk 

securities over their conventional counterparts because of their greater likelihood of 

acceptance at the political and national levels. In particular, the authorities have requested 

advice on how to issue Sukuk securities and government debt instruments due to their 

limited experience in financial operations. Accordingly, a TA mission from HQ and 

METAC conducted a Sukuk workshop in July 2011 in Dubai for the Afghan authorities 

(Ministry of Finance (MOF) and DAB. The workshop focused on preparing the ground 

for Sukuk issuance and provided the Afghan authorities with a detailed introduction to 

Shariah compliant financial instruments and Sukuk securities. Meetings with other 

Middle Eastern Sukuk issuers were arranged, preconditions for a Sukuk market in 

Afghanistan were discussed and a roadmap for the period ahead was presented. 

JORDAN 

During September 2010, a METAC mission followed up on debt management and 

financial market development and on the recommendations of the two IMF and WB 

reports on public debt (May 2008 and June 2009 respectively). TA needs identified were 

strengthening the Public Debt Department, providing training in debt management and 

risk management, enhancing primary market, and developing a debt management 

strategy. 

Another mission was conducted in July 2011 to work closely with the MOF to develop 

their capacity and provide MOF staff with hands-on training in debt management, risk 

management, portfolio analysis and risk indicators for the debt portfolio including the 

role of Debt Sustainability Analysis (DSA). 

LEBANON 

Following an assessment visit in April 2010 to the MOF and BDL regarding their TA 

needs in public debt management and money market development, their debt 

management strategy was reviewed and commented on by METAC, the IMF Middle East

100 

and Central Asia Department (MCD) and the IMF MCM Department. This strategy was 

published in March 2011. METAC did not provide any TA or capacity building to the 

MOF in view of the involvement of the WB in a debt management project that included 

establishing a debt department and capacity building. 

LIBYA 

During the first assessment visit made by METAC advisor in June 2010, the CBL TA 

needs were to: develop the money market and move towards indirect monetary policy 

instruments and open market operations (OMO); enhance liquidity forecasting; introduce 

an auction system for Certificates of Deposits (CDs); develop an interbank market and a 

secondary market for CDs; and provide capacity building and training in this regard to the 

staff of the CBL and to the market participants. 

A report was prepared spelling out the necessary action plan and the steps to be taken to 

meet the TA needs. Accordingly, two missions (October 2010 and January 2011) were 

conducted with the aim of developing the money market operations and enhancing the 

implementation of the monetary policy in Libya. All necessary measures to assist CBL in 

introducing and implementing an auction system for issuance of CDs were taken, 

including strengthening the CBL functions and capacity; choosing the auction format; 

delivering an operational framework for issuing CDs including all amendments and 

changes to the internal procedures and the role of different departments in this regard; 

drafting new rules and regulations to be issued to the banks and all the forms and formats 

needed; calculating excess reserves; and hands-on training and capacity building to CBL 

staff at the different departments regarding the introduction and implementation of the 

new auction system. In addition, two workshops were conducted for the banks to ensure 

the smooth implementation of the newly introduced auction system. 

SUDAN 

A METAC mission assessed in close collaboration with the MOF and the CBOS TA 

needs in the area of public debt management and money market development and the 

coordination between debt management and monetary policy. 

For debt management, TA needs were the following: reorganization of the debt 

department at the MOF; capacity building and training in debt management, debt 

analysis, and developing risk management capabilities; adequate and accurate debt 

recording and monitoring; debt strategy; strengthening coordination between debt 

management, fiscal, monetary policy and cash management; and studying the possibility 

of issuing dematerialized securities. 

For money market, TA needs were the following: developing an auction system to 

manage liquidity in the market using Islamic certificates; improving the liquidity 

forecasting and averaging the Reserve Requirement (RR); improving and strengthening

101 

OMO; and developing an interbank market which will facilitate the implementation of the 

monetary policy. 

Another mission in May 2011 provided hands-on training and capacity building to the 

staff of MOF and CBOS on debt management for the domestic and external debt, the 

institutional arrangement, the operational framework including the reorganization of the 

domestic debt department at the MOF, preparation of a new organizational structure with 

main functions and responsibilities, and techniques to implement a debt management 

strategy. 

In cooperation with the MOF staff a new organizational structure for the debt 

management office with main functions and responsibilities to enable them to 

manage debt in a more efficient way was prepared. 

SYRIA 

METAC assessment visit was made in May 2010. It identified the needs for capacity 

building at MOF and CBS and training on primary and secondary markets for debt and 

money markets instruments (issuance of T-Bills, T-bonds and CDs, their pricing, the 

yield curve estimation, and the liquidity forecasting). A training course was delivered to 

the staff of MOF and CBS in September 2010. In addition, a framework (manual) for 

bonds issuance and a manual on money market operations were delivered to MOF and 

CBS respectively during that mission. 

In December 2010, the MOF started the issuance of T-Bills and Bonds but at predetermined 

maximum interest rates—more work will be needed to have marketdetermined 

interest rates. 

Going forward, METAC needs to intensify its work in this area and will train the MOF 

staff on developing a framework for formulating a debt management strategy. The work 

will focus on improving debt management and primary market issuance procedures, 

formulating a debt management strategy, and developing a retail debt program. In 

addition, METAC’s assistance will be needed to develop the interbank market and 

indirect monetary policy instruments. 

WEST BANK AND GAZA 

METAC advisor participated in a TA mission led by MCM which visited Ramallah, West 

Bank in August 2010 to review the Palestinian Authority’s intention to develop a 

government securities market and advice on the prerequisites and steps that would need to 

be taken for a successful outcome. 

This was followed by a training mission which was delivered in Ramallah to the MOF, 

the PMA and the Palestine Capital Market Authority (CMA) staff on securities issuance

102 

covering (i) financial instruments; (ii) financial markets; (iii) primary markets; (iv) 

issuance procedures and issuance policy; and (v) secondary market and debt management 

as well as the role of these institutions in debt issuance and debt management process. 

The objective of the course was to build the capacity of the debt management office at the 

MOF in particular, and the PMA and CMA in general about government securities 

issuance. 

YEMEN 

A METAC mission visited the MOF and the CBY in July 2010 to assess TA needs in the 

areas of public debt management and money market development. 

TA needs identified for debt management: 

 

 

 

 

Develop a secondary market for T-Bills. 

Review the organizational structure and the legal framework governing public 

debt management. 

Develop MOF capacity for debt including training and capacity building. 

Develop and formulate a debt policy document including debt management 

guidelines, directing the government in managing public debt and the instruments 

to be used or developed. 

Following the assessment visit, another mission in February 2011 was conducted to 

provide hands-on training and capacity building in debt management to the domestic and 

external debt departments at the MOF and strengthen the debt management capacity. A 

debt management workshop conducted for managers at the MOF and CBY focused on 

three topics: (i) the main prerequisites for efficient public debt management; (ii) the 

identification and management of debt risks; and (iii) ways to reduce the cost of debt. 

The mission also discussed with the CBY the domestic debt issuance procedures for 

government T-bills and T-bonds in the primary market and what needs to be done in 

order to develop the secondary market. 

TA needs identified for money markets: 

 

 

 

Develop an interbank market. 

Develop a new design for CDs auctions. 

Coordinate between the CBY and MOF to reply to their needs especially in the 

area of data/forecasts on revenues and expenditures, liquidity management and

103 

forecasting, and the issuance of government domestic debt with the monetary 

authorities. 

 

Develop CBY capacity for monetary operations including training. 

Accordingly, a mission was conducted in October 2010 to the CBY to help them develop 

an interbank market and averaging the RR to enable banks to better manage their 

liquidity. Visits were made to some of the commercial banks operating in Sana’a. 

Instructions were drafted to banks to encourage activities and trading among banks; 

however, the issuance of these instructions was postponed by the Governor. Also, 

instructions were drafted to be issued to the banks regarding averaging of the RR and 

delivered it to CBY. Hands-on training was provided to the staff of CBY on how to 

implement the averaging of the reserve requirement

104 

APPENDIX II. METAC REGIONAL LOG FRAME FY 2013-2015 

Strategic Objective 

Improve institutional capacity for effective macroeconomic management to achieve higher and sustainable growth. 

1. Achieve a more risk-oriented banking supervisory 

and regulatory framework that enhances financial 

stability in the region and aligns it further with 

international standards and best practices. 

2. Establish an integrated budget planning and 

management process that effectively links policies to 

public resource allocation, and further develop treasury 

systems, including government banking arrangements, 

commitment controls, cash management and financial 

management information system. 

3. Upgrade revenue administration to bring it to best 

international standards, focusing on enhanced 

organization and procedures and effective compliance 

tools, to improve revenue performance and increase 

revenue collection. 

4. Bring member countries closer to compliance with 

international standards for the compilation of external 

statistics, NA, and price statistics. 

1. Restoration of political and security stability in a 

number of METAC countries that would allow delivery 

of TA in a timely manner. 

2. Sufficient ownership of reform measures by the 

country authorities and commitment to provide 

resources to carry out their duties and implement 

reform measures. 

3. Mobilization of sufficient financing for METAC. 

4. Complementary TA by HQ and other TA providers is 

available.

105 

1. Banking Supervision 

Outcomes Indicators for end-FY 2015 

1. Enhancement of risk-based supervisory 

and enforcement frameworks in both onsite 

and offsite supervision functions. 

2. Further alignment of the regulatory 

framework with Basel principles and 

standards, in particular Basel II and III 

frameworks. 

3. Enhancement of the function of public 

credit registries and PCBs to be in line with 

international best practices. 

4. Banking supervisors in the region have a 

better understanding of the latest practices 

and standards on banking supervision and 

develop their supervisory skills and 

capabilities accordingly. 

Inputs 

Resident Advisor in Banking Supervision. 

Short-term experts. 

Collaboration / Participation in HQ missions. 

Outputs 

Draft laws, regulations, reports and manuals. 

Workshops, seminars and on-the-job 

training. 

1.1 Risk-based onsite inspection and enforcement manuals are developed and 

enhanced and are well integrated within the overall supervisory framework. 

1.2 Early Warning System (EWS) Models are developed and effective risk 

assessment is being prepared using offsite supervisory tools and prudential 

reports. 

1.3 New Onsite and Offsite manuals are adopted for supervision of Islamic 

banking activities. 

2.1 New regulations are issued in line with Basel core principles. 

2.2 Issuance of new regulations and application of new supervisory tools and 

techniques that are in further compliance with Basel II accord and Basel III 

reforms. 

2.3 New supervisory regulations and guidelines are issued for Islamic banking 

activities. 

3.1 The public credit registries will be fully operational with expanded financial 

and demographic database along with an effective software and comprehensive 

reporting. 

3.2. A framework for licensing and supervising PCBs is developed and effectively 

applied. 

3.3. Increased access to credit and reduction in the level of payment 

delinquencies and default rates. 

4.1 Offsite and onsite supervisors apply the developed risk-based frameworks 

effectively and show a thorough knowledge of the new regulations and apply 

them effectively throughout their work. 

4.2 Weak and problem banks are identified early and dealt with through prompt 

corrective action plans that are rigorously followed up. 

Assumptions/Risks 

1. Political stability and security conditions allow the delivery of METAC TA and the implementation of needed reforms. 

2. Supervisory authorities support the implementation of projects assisted by METAC, show continued commitment to apply the new 

manuals and the draft regulations, and take all necessary and timely actions to put METAC’s recommendations into effect. 

3. Banking supervisors make good use of the knowledge and TA provided by METAC and apply them effectively in the course of supervising 

banking and financial activities. 

4. Sufficient financing for METAC is mobilized. 

AFG 

Egypt 

Iraq 

Jordan 

Lebanon 

Libya 

Sudan 

Syria 

WBG 

Yemen

106 

2. Macroeconomic Statistics 


1.1. Timely reporting of BOP data for IMF publications. 

AFG 

Egypt 

Iraq 

Jordan 

Lebanon 

Libya 

Sudan 

Syria 

WBG 

Yemen 

1. Better compliance with international 

standards for the compilation of external 

statistics (BOP, IIP reserves data template, and 

EXD statistics). 

1.2. Timely reporting of IIP data for IMF publications. 

1.3. Balance of Payments and International Investment Position Manual, sixth edition 

(BPM6) methodology implemented. 

1.4. Reporting of the Reserves Data Template. 

1.5. Participation in the Quarterly External Debt (EXD) Statistics database. 

2. Increased participation in CDIS and CPIS to 

enhance regional data on financial 

interconnectedness. 


standards for the compilation of annual, and for 

some countries, quarterly NA. 


standards for the compilation of monthly price 

statistics. 

Inputs 

2.1. Participation in the CDIS. 

2.2. Participation in the CPIS. 

3.1. Timely reporting of annual NA for IMF publications. 

3.2. Timely reporting of quarterly NA for IMF publications. 

4.1. Updated CPI. 

4.2. Developed/updated PPI. 


One Resident Advisor in External Statistics. 

Short-term experts (Real Sector). 

HQ-based diagnostic missions and backstopping. 1. Sufficient ownership of reforms by the country authorities, including implementation of missions' recommendations. 

2. Sufficient funding by the country authorities and other donors for needed resources. 

Outputs 

TA reports. 


Country workshops. 

Regional workshops and seminars. 

3. Sufficient funding for METAC TA activities. 

4. Complementary HQ and other donors' TA is available. 

5. Political/security conditions in member countries allow for TA delivery and reforms' implementation.

107 

3. Public Financial Management 


1. Budget process based on spending 

programs linked to a medium-term 

budget framework and supported by 

appropriate budget calendar and legal 

framework. 

2. Comprehensive budget integrating 

capital and recurrent expenditures. 

1.1. A medium-term budget framework, with a budget document including budget 

estimates for at least two out-years in addition to the next FY is developed. 

2.1. An integrated budget planning and management process that effectively links 

policies to budgeting is established. 

2.2. Estimated cost of expenditure programs and integrated budgets for capital and 

recurrent expenditures are included in the budget document. 

AFG 

Egypt 

Iraq 

Jordan 

Lebanon 

Libya 

Sudan 

Syria 

WBG 

Yemen 

3. Further improved government cash 

planning and management and 

consolidated government banking 

arrangements through TSA regime. 

3.1. A cash planning function is developed leading to a good evaluation of the future 

profile of the total cash resources available to the government to meet its budget 

expenditure plans. 

3.2. A TSA regime is implemented. 

4. Budget execution and reporting, and 

internal control and audit broadly 

compliant with international standards. 

4.1. Budget Classification compliant with GFSM 2001 on a cash basis is introduced. 

4.2. Expenditure controls, accounting and financial reporting, as well as internal 

control and audit are compliant with relevant international standards. 

Inputs Assumptions/Risks 

Resident Advisor in Public Financial 

Management. 


HQ-based diagnostic missions and 

backstopping. 

Outputs 

TA reports. 

Draft regulations and manuals. 



Regional workshops and seminars on 

budget preparation, accounting and 

internal control and audit. 

1. Assumptions: 

a. The country authorities remain committed to the implementation of the PFM reform agenda. 

b. The political conditions in member countries allow the normal delivery of TA. 

c. HQ’s TA, backstopping and guidance available in particular on diagnostic assessments, institutional framework, and PFM reform 

strategies. 

2. Risks: the authorities face major challenges in the fiscal area, mainly as a result of recent political, economic, and security 

developments in the region. These developments may impede the implementation of a comprehensive PFM reform agenda 

because the authorities would need to focus on urgent policy issues rather than on medium-term oriented fiscal structural 

reforms.

108 

4. Revenue Administration 


AFG 

Egypt 

Iraq 

Jordan 

Lebanon 

Libya 

Sudan 

Syria 

WBG 

Yemen 

1. More efficient and effective organizational structures. 1.1 Integrated function-based HQ 

2. Streamlined and automated operations. 

3. Strengthened self-assessment and risk-based 

compliance. 

1.2 Established large taxpayers' offices (LTO). 

2.1 Enhanced registration system with unique Tax Identification Number 

(TIN.) 

2.2 Effective computerized ITAS. 

2.3 Streamlined filing and payment procedures. 

3.1 Move from administrative to self-assessment systems. 

3.2 Increased compliance rates. 

3.3 Increased collection rates. 

4. Enhanced tax systems. 4.1 Introduction of VAT. 

4.2 Enactment of a tax procedures code (TPC) 

4.3 Simplified regime for small taxpayers. 

5. More effective customs administration 5.1 Reduced pre-clearance. 

5.2 Increased risk-based post-clearance. 

Inputs 

Resident Advisor in Revenue Administration. 


HQ-based diagnostic missions 

Outputs 

TA reports. 

Draft laws, regulations, and manuals. 



Regional workshops and seminars. 


1. Sufficient ownership of reforms by the country authorities. 

2. Sufficient funding by METAC for TA activities. 

3. Complementary HQ and other donors' TA is available. 

4. Political/security conditions in member countries allow for TA delivery and reforms' implementation. 

5. Sufficient funding by the country authorities and other donors for needed resources.

109

International Monetary Fund 

Institute for Capacity Development 

Global Partnerships Division 

700 19th Street NW 

Washington DC, 20431 

USA 

Tel.: 1-202-623-7646 

Fax: 1-202-623-7106 

Email: GlobalPartnerships@imf.org

Result Based Management Framework - METAC

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