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Working Group Report 1 19 th April 2013. Slide 1. Purpose of the program 2. Expected Results to be achieved 3. [Verifiable] Targets signaling achievement.

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Presentation on theme: "Working Group Report 1 19 th April 2013. Slide 1. Purpose of the program 2. Expected Results to be achieved 3. [Verifiable] Targets signaling achievement."— Presentation transcript:

1 Working Group Report 1 19 th April 2013

2 Slide 1. Purpose of the program 2. Expected Results to be achieved 3. [Verifiable] Targets signaling achievement of Results 4. Activities needed to achieve the Results 5. Budget/financing required to implement Activities 6. Priorities to address before starting the program 2

3 Slide 3 Category Intervention Logic Verifiable Target 2. Project Purpose 2.1 SME access to finance improved Change in lending volume to the private sector by commercial banks 3. Expected Results 3.1 SME growth rate increased Change in number of businesses accessing finance from banking system 3.2 Employment by the SME sector increased Change in employment by business sector/ category 3.3 Total taxes from SMEs increased Change in corporation taxes collected by Director of Taxes Change in number of registered firms at KKF

4 Slide 4 ActivitiesOutputsResources 4.1 Develop a training program for SMEs in business plan/proposal preparation CUS to write ToR and hire consultant to asses and design a training program for SMEs Implementation of the training programme CUS to secure IADB- funding for consultant by 30 June Select appropriate institutions from SBC, KKF, SPWE, WBG, InTent,0r NVB; or IMKB, SMART, VCB by 31 December Train more accountants to increase the supply of providers of financial accounts for SMEs SUVA to introduce an awareness programme in Suriname to increase enrollment SUVA, ACCA/SCA, University – Department of Economics by 30 June Revise the Accountancy Act to improve reporting, accountability and enforcement Ministry of Finance to finalise amendments to Draft Act and submit to Parliament for “legal passage” CUS to urge Parliament to pass new Accounting Act within next 12 months (i.e. by 31 March Support the banks’ training programme for bankers to lend to SMEs Continue to implement the banks’ training programme for loan officers to lend to SMEs Bankers’ Association (on-going)

5 Slide 5 4. ActivitiesOutputs Resources 4.5 Establish a credit bureau following international best practice Central Bank to complete draft legislation and submit to Ministry of Finance Ministry of Finance to submit the revised draft to parliament Parliament to review Draft Act and pass it (the Act) Central Bank of Suriname by 30 June Ministry of Finance by 30 September Parliament (National Assembly) by 31 December Re-activate the credit Guarantee Fund for SMEs Ministry of Finance to recapitalise the Guarantee Fund for SMEs (SRD 15 million) CUS to lobby the Ministry of Finance to provide Guarantee Funds for SMEs 4.7 Review legislation governing secured transactions and set up a movable collateral registry Get examples of movable collateral legislation and assess legal implications for Suriname Set up a moveable collateral registry, if feasible CUS to initiate meeting with Bankers Association to discuss moveable collateral registry prospects by 30 June Carry out assessment of relative impact of Govt. credit facilities made to private sector CUS to write ToR and hire consultant to assess and make recommendations based on lessons learned CUS with funding support from IADB to contract consultant by 30 June 2013

6 Slide 6 4. ActivitiesBudget (Costs) 4.1 Develop a training programme for SMEs in business plan/proposal preparation 1 consultant inclusive of working days, plus per diem, plus air fare = US$40,000. Program funding based on consultant cost estimates possibly around US$2,500 per SME trained. 4.2 Train more accountants to increase the supply of providers of financial accounts for SMEs SUVA to obtain more funding from IADB (US$135,000 was granted to SUVA in Phase I). Phase II will be with Central Bank. 4.3 Revise the Accountancy Act to improve financial reporting, accountability and enforcement No funding support required 4.4 Support the banks’ training programme for bankers to lend to SMEs To be supported by Commercial Banks via HRD Departments

7 Slide 7 4. ActivitiesBudget (Costs) 4.5 Establish a credit bureau following international best practice To be supported by IADB Financial Sector Reform Project to the Central Bank (over 3 – 5 years) 4.6 Re-activate the credit Guarantee Fund for SMEs SRD 15 million transferred from Ministry of Finance to Guarantee Fund by 31 December Review legislation governing secured transactions and set up a movable collateral registry To be supported by IADB Financial Sector Reform Project to the Central Bank Funding dependent on “registry” decision by Central Bank 4.8 Carry out assessment of relative impact of Govt. credit facilities made to private sector 1 consultant inclusive of working days, plus per diem, plus air fare = US$40,000

8 Slide 8 Pre-conditions for Access to Finance program Overall, agree to use 2013 World Bank “Doing Business Report rankings as baseline indicators for Access to Finance program Collect data to establish the 1 January 2013 baselines for the following Verifiable Indicator Targets: 1. Lending volume to the private sector by commercial banks; 2. Employment by business sector or (SME) category; 3. Corporate taxes collected by Director of Taxes; Establish annual milestone targets for next five years for increases in: 1.Bank loans to SMEs; 2. Employment by SMEs; 3. Corporate taxes to be collected by Director of Taxes


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