Relationship between MoF/Treasury and Central Bank Group 1 Relationship between MoF/Treasury and Central Bank Countries: Albania, Armenia, Croatia, Macedonia, Montenegro, Russian Federation, Turkey Moscow, April 5th, 2017

1. Coordination arrangements in place between the two institutions related to policy and operations Albania Armenia Croatia Macedonia Monte-negro Turkey Liquidity committee Y Debt management committee Technical working groups SLAs Y, multiple Legal framework (*Law on CB) Y*+ MoU, protokol on cooperation Charge for CB services Interest on TSA balances / other accounts held at CB N/Y Y (deposits) Various meetings

OTHER (non-standard arrangements) Coordination arrangements in place between the two institutions related to policy and operations OTHER (non-standard arrangements) Various agreements /arrangements for information / data exchange, statistics, reporting in most countries PFM council (Albania) Financial committee meetings (daily), monetary committee meetings (weekly), budget execution committee (ARM) National council on payment system, agreement on platform for Government securities (MAC) Financial stability council (MNG) Monetary policy committee, treasury internet banking protokol (TUR)

2. Operational Challenges Overall, the relationships with the Central Bank are developed and function generally well Expanding the instruments for active cash management, use of REPOs will require additional agreement with the CB (ARM, MNG) More intensive cooperation at operational level needed, episodes of CB not being ready to process certain transactions, advice from CB on financial markets would be useful (CR) Technical execution and time of processing of transactions (managing with cash flow), higher level of transparency concerning activities performed by MF – treasury department (new PFMIS) should help to develop further the relationship (MAC)

3. Solutions the group can recommend for those challenges All aspects of cash, debt and liquidity management require a strong coordination between Treasury, MoF (where MoF and Treasury are separate) and CB. Clear documentation of roles and responsibilities by the relevant legislation and agreements helps to develop constructive relationships. Good quality information systems with common access help in the relationship The importance of informal and ad-hoc communication and collaboration culture should not be underestimated.