Presentation on theme: "“METAC is a shining example of how technical assistance can be"— Presentation transcript:
1 “METAC is a shining example of how technical assistance can be effective in bringing about tangible and important developments…”Dr. J. Al-WazirGovernor of the PMAServing the region in partnership with:The European CommissionThe European Investment BankFranceJapanKuwaitOman
2 METAC OverviewMETAC was established on October 25, 2004 in Beirut, LebanonMETAC is a collaborative effort between the International Monetary Fund (IMF), the recipient countries, and bilateral and multilateral donors.
5 METAC GovernanceMETAC is governed by a Steering Committee that includes recipient countries, donors and IMF staff. The SC is chaired by the Minister of Finance of Lebanon.The SC acts as an advisory body, providing guidance to develop the Center’s strategy and define its priorities.The SC meets on an annual or need basis.
6 METAC TA Areas METAC Banking Supervision Multisector Statistics Central Bank Accounting (replaced by Public Debt Management)Revenue AdministrationPublic Financial ManagementMultisector StatisticsBanking SupervisionMETAC
7 METAC Mandate Provide capacity-building assistance Facilitate the reform process in member countriesSupport the region’s integration in the world economy
8 METAC Mandate METAC’s resources are available for : Diagnostic work Implementation of plans based on the assessments by TA departments at IMF HeadquartersProviding policy and technical advice either by the Center’s own advisors or by consultants hired by METACOrganizing training courses, seminars, workshops and dissemination of best practices
9 METAC AdvantagesIntegration with IMF surveillance and lending activitiesDecentralized and well tailored delivery of TAStrong country ownershipFast and efficient response to TA requestsEffective follow up on implementation of TAClose coordination with other TA providersFocused subject-specific and hands-on training for local officials
10 METAC TA in Banking Supervision Main purpose is to create a sound banking supervision environment to maintain public trust and confidence in the banking sector, by:Enhancing banking supervision procedures in accordance with international best practicesBanking SupervisionBuilding the capacity of banks’ examiners through training, seminars and workshopsStrengthening the examination process through the development of new financial statements and early warning systemsDeveloping credit registry systems for better monitoring of credit facilities
11 Multisector Statistics METAC TA in StatisticsMain purpose is to improve the overall quality of macroeconomic statistics and to promote the use of internationally-accepted concepts and statistical methodologies, by:Developing compilation and dissemination proceduresMultisector StatisticsIdentifying emerging data sourcesPreparing and verifying dataDocumenting data sources and compiling methods
12 Public Financial Management METAC TA in PFMMain purpose is to build capacity for reforms in budget preparation and execution to improve expenditure control and revenue monitoring, by:Improving organization and providing capacity building at ministries of financePublic Financial ManagementImproving financial accounting and reporting and strengthening internal and external control mechanismsReforming budgeting and accounting classification; and improving treasury systems
13 METAC TA in Revenue Administration Main purpose is to plan and implement revenue administration reforms, by :Enhancing revenue administration organization and proceduresRevenue AdministrationImplementing effective compliance control tools for tax collectionDeveloping legislative frameworks for tax administration
14 METAC TA in Central Bank Accounting (Ceased in October 2009) Main purpose was to assist central banks and monetary authorities in modernizing central bank accounting systems, procedures, policies, and controls, by :Providing technical support for the transition to integrated financial management information systemsCentral Bank AccountingImproving the financial and management reports in compliance with International Financial Reporting StandardsDeveloping the internal audit function
15 METAC TA in Public Debt Management (Starting March 2010) Improving public debt management and developing public debt markets areimportant for METAC members. The new resident advisor on debt managementwill initially assess the state of debt management in METAC countries and will then come up with a workplan to enhance debt management frameworks and enhance the effective coordination between debt management and monetary policy.
16 Workshops & SeminarsMETAC organizes a large number of regional seminars and conducts intensive and hands-on in-country training.
17 METAC Outreach Activities METAC Annual report launching, Aug 7, 2008Arab Economic Integration Conference, Kuwait, Nov 11-12, 2008
18 METAC Outreach Activities Forum on Financial Crisis, in collaboration with the Union of Arab Chamber of Commerce, Beirut, Dec 2008METAC participation in the International Colloquium on Decentralization, Apr 2009
19 METAC Outreach Activities ورشة للمعهد المالي حول أزمة الدين العامنظّم معهد باسل فليحان المالي والاقتصادي أمس بالتعاون مع المؤسسة الدولية للإدارة والتدريب، ورشة عمل عن أزمة الدين العام في لبنان وتأثيرها على الموازنة العامة، حاضر فيها المستشار الاقتصادي الدكتور توفيق كسبار، وعقّب على كلامه مدير المركز الاقليمي للمساعدة الفنية للشرق الأوسط التابع لصندوق النقد الدولي سعادة شامي.Economic Impact of the Global Financial Crisis on the Gulf Region and Policy Response, Abu Dhabi, Dec 2007General Debt in Lebanon, Institute Bassil Fuleihain, Feb 2009
20 PartnershipPartnership with donors is instrumental for the success of TA provided by METAC.This partnership enhances coordination toward joint objectives which in turn improves further the effectiveness of TA provided by donors as well as by METAC.Coordination is also important for integrating TA provided by different sources within a coherent development framework
21 METAC ResultsImproved capacity to design and implement sound macroeconomic policiesImproved macro stability, PFM systems, and financial governanceEffective and transparent use of resources / budget supportHigher revenuesGrowth oriented financial systemsRegional economic integrationBetter economic data
22 METAC Main Achievements Banking SupervisionCentral banks in Syria and Libya have established a banking supervision framework in line with international best practices.Credit registry in West Bank and Gaza was successfully implemented.A new inspection manual for the Central Bank of Jordan and the Central Bank of Libya was developed.
23 METAC Main Achievements Public Financial ManagementA new budget classification based on the Government Finance Statistics Manual 2001 (GFSM 2001) began to be implemented in Sudan.A cash management unit was established at the ministries of finances of Lebanon and the West Bank and Gaza.A Treasury Single Account (TSA) was established at the Bank of Sudan and the Central Bank of Jordan, but more work needs to be done.
24 METAC Main Achievements Revenue AdministrationTax administration reorganization to improve effectiveness, particularly with respect to strengthened headquarters functions – Egypt, Jordan, Sudan, and Yemen, with work in progress in SyriaDevelopment and expansion of taxpayer segmentation concepts, initially through establishment of a large taxpayer office and subsequent steps to strengthen medium and small taxpayer administration – Egypt, Jordan, Syria, Sudan, and YemenStrengthening the concepts of self-assessment and risk management, including supporting practical measures such as audit case selection techniques – Jordan, Lebanon, Sudan, Syria, and YemenStrengthened legislation frameworks, particularly streamlined and harmonized tax procedure codes, and improved or new VAT and small business regimes – Egypt, Jordan, Lebanon, and Syria
25 METAC Main Achievements Multisector StatisticsLebanon launched a new All-Lebanon monthly consumer price index (CPI)Jordan began compiling and disseminating external debt statistics in line with the international statistical methodologySurvey-based programs for compiling foreign direct investment (FDI) statistics were developed in Egypt, Lebanon, and West Bank and GazaWork was completed for an improved CPI for Sudan.Syria joined the IMF’s General Data Dissemination System (GDDS)
26 METAC Main Achievements Central Bank AccountingDevelopment of the internal audit functions of the Central bank of Iraq and the Central Bank of Syria.Risk based Internal Audit was established in the Palestine Monetary authority.A study on the implementation of International Bank Account Numbering System (IBAN) was completed in Syria and Lebanon and Lebanon has started the implementation.A draft IFRS based Accounting Policy Document was prepared by METAC to be used as a basis for formal central banks Accounting Policies.
27 METAC EvaluationAn independent external evaluation was finalized in October 2009The overall conclusion of the evaluation is that METAC has been delivering TA services that are generally effective and highly appreciated by beneficiary countries.The strengths of METAC are a firm rooting in the IMF’s well established procedures and quality control, a strong regional base, and a network of experts able to work effectively in the region including in Arabic. In addition, the evaluation found that METAC is responsive to country needs, and its activities are strongly integrated with and complementary to IMF priorities. METAC is a principal supplier of TA in the region in many of its technical areas. Its regional presence and link to the quality control and supervision activities of the IMF provides it with a comparative advantage
28 METAC FundingIn addition to the Fund, the Center is financed by the host country and other recipient countries of METAC’s TA as well as bilateral and multilateral donors:Lebanon, which in addition to a large financial contribution, finances the Center’s office facilities and local staffEgyptJordanLibyaSyriaSudanYemenECEIBFranceJapanKuwaitOman
29 METAC’s Phase III Financing The budget for Phase III, May 2010-April 2015, is estimated at $33 million.Of this budget, Lebanon as the host country and the IMF would cover $6.5 million (not including Lebanon’s financial contribution).The remaining $26.5 million are to be covered by donors.A doubling of the contribution of donors and member countries would keep their contributions at broadly the same level in real terms because METAC’s funding cycle will be extended from 3 to 5 years.