Benin report - Institut Africain de la Gouvernance

CHAPTER FOUR: ECONOMIC GOVERNANCE AND MANAGEMENT__________________________________________________________________________360. Guidelines for Public Debt Management and Sustainability. All of theseguidelines, introduced by the IMF/World Bank at the request of theInternational Monetary and Finance Committee (IMFC), are aimed at helpingcountries to improve the quality of their public debt management and reducetheir vulnerability to internal and external financial shocks.361. Core Principles for Payments and Settlement Systems. The Core Principlesfor Payments and Settlement Systems were defined by the CPSS of the centralbanks of G10 countries and the Bank for International Settlements based inBasel, Switzerland. There are 10 such core principles for payment systems,and four central banks responsible for their implementation.362. The BCEAO initiated a regional project to modernise payment systems in theeight countries of WAEMU in March 1999. The countries were Benin,Burkina Faso, Côte d‟Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo.This reform of payment systems in WAEMU falls within the generalframework for deepening financial systems, improving monetary policyframeworks and accelerating the regional economic integration process.363. Consequently, interbank payments in Benin are made through theComputerised Interbank Clearing System (SICA) in WAEMU. It is acomputerised exchange and settlement tool for massive payments betweenparticipating national and subregional institutions of WAEMU. It waslaunched on 17 November 2005. SICA participants are commercial banks, theBCEAO, the post office and the Treasury. After the launch of theComputerised Settlement System (STAR) in WAEMU on 25 June 2004 (aswell as the launch of SICA), tele-clearing went operational in Benin on 9November 2006.364. This new mechanism enables banks in Benin to send electronic files of theirclearing operations (cheques, transfers and bills of exchange) to their fellowmembers rapidly. This exchange is done from their different branches via themain branch in Cotonou or the subsidiary branch in Parakou, irrespective ofwhether the bills are to be paid in the town, in another town or another bank inthe country. The CRM noted that interbank payments are generally madewithin the prescribed period and that the payment systems are currently beingmodernised.365. Basic Supervisory and Regulatory Principles in the area of Insurance andRegulations. These principles, defined by the International Association forInsurance Supervisors, have the following objectives: to protect investors;guarantee a fair, equitable and transparent market; and reduce systemic risks.These aspects are considered in more detail in Chapter Five on corporategovernance.366. Accounting and Auditing Standards. The International AccountingStandards Board (IASB) is the body responsible for developing internationalAccounting and Auditing Standards. The IASB carried out modifications tostandards with an emphasis on fair values in accounting. In general, the CRMnoted that internal auditing and other internal and external control measures in135