“METAC is a shining example of how technical assistance can be effective in bringing about tangible and important develo

1. “METAC is a shining example of how technical assistance can be effective in bringing about tangible and important developments…” Dr. J. Al-Wazir Governor of the PMA • Serving the region in partnership with: • The European Commission • The European Investment Bank • France • Deutsche Gesellschaft für Internationale Zusammenarbeit • Kuwait • Oman • U.S. Agency for International Development

2. METAC Overview • METAC was established on October 25, 2004 in Beirut, Lebanon • METAC is a collaborative effort between the International Monetary Fund (IMF), the recipient countries, and bilateral and multilateral donors.

3. METAC Donors • The European Commission • France • The European Investment Bank • Kuwait Deutsche Gesellschaft für Internationale Zusammenarbeit • Oman U.S. Agency for International Development

4. METAC Countries WBG

5. METAC 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. METAC Governance

6. Banking Supervision METAC Multisector Statistics Public Financial Management METAC TA Areas Revenue Administration

7. METAC Mandate Provide capacity-building assistance Facilitate the reform process in member countries Support 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 Headquarters • Providing policy and technical advice either by the Center’s own advisors or by consultants hired by METAC • Organizing training courses, seminars, workshops and dissemination of best practices for METAC and GCC countries

9. METAC Advantages Integration with IMF surveillance and lending activities Decentralized and well tailored delivery of TA Strong country ownership Fast and efficient response to TA requests Effective follow up on implementation of TA Close coordination with other TA providers Focused subject-specific and hands-on training for local officials

10. METAC TA in Banking Supervision Main purpose is to 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, by: Enhancement of risk-based supervisory and enforcement frameworks in both onsite and offsite supervision functions Banking Supervision Further alignment of the financial regulatory framework with Basel principles and standards Enhancement of public credit registries and credit bureaus to be in line with international best practices Building the capacity of the region’s banking supervisors on the best practices and latest standards related to banking supervision and financial stability

11. METAC TA in Statistics Main 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 procedures Multisector Statistics Identifying emerging data sources Preparing and verifying data Documenting data sources and compiling methods

12. METAC TA in Public Financial Management Main 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 finance Public Financial Management Improving financial accounting and reporting and strengthening internal and external control mechanisms Reforming budgeting and accounting classification; and improving treasury systems

13. METAC TA in Revenue Administration Main purpose is to develop and implement revenue administration reforms, by: Upgrading revenue administration to bring it to best international standards Revenue Administration Enhancing and streamlining revenue administration procedures Implementing effective compliance schemes and tools based on risk management Developing organizational and legislative frameworks to improve revenue performance

14. METAC TA in Debt Management and Money Markets Development (ceased in October 2012) Main purpose was to assist in creating sound debt management practices and proper coordination between debt management and monetary and fiscal policy, by : Debt Management & Money Markets Development Building capacity in debt and money markets development Strengthening the functioning of primary and secondary markets Strengthening debt management frameworks including institutional arrangements and strategy development Enhancing coordination between debt management and monetary policy

15. Workshops & Seminars METAC organizes a large number of regional seminars and conducts intensive and hands-on in-country training.

16. METAC Outreach Activities • As part of its outreach activities METAC participated and organized several events : • Workshop on Enhancing EU-IMF Cooperation in the MENA Region, Jordan, May 2013. • Workshop on Implementation Strategy of the 2008 System of National Accounts and Supporting Statistics in the Arab Region, Jordan, June 2013. • Reshaping the Future of the Banking System The Right Moves, Beirut, September 2013. • Workshop for Parliamentarians from Arab Countries, Kuwait, November 2013. • Media Training Seminars, Jordan, December 2013. • Third Annual Lebanon Economic Forum, Lebanon, March 2014.

17. Partnership • Partnership 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

18. METAC Results • Improved capacity to design and implement sound macroeconomic policies • Improved macro stability, PFM systems, and financial governance • Effective and transparent use of resources / budget support • Higher revenues • Growth oriented financial systems • Regional economic integration • Better economic data

19. METAC Main Achievements Banking Supervision Many Central banks (Syria, Libya, Yemen, Afghanistan) have established a banking supervision framework that is further aligned with international best practices. Upgrading of credit registries in West Bank and Gaza and Sudan was successfully implemented.The PMA credit registry is the first registry in the region and one of only a few worldwide. New risk-focused supervisory manuals were developed: Bank Inspection Manual (Jordan and Libya) and Non-Bank Financial Institutions Manual (Lebanon).

20. METAC Main Achievements Public Financial Management • A 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. • Capital expenditures’ management was transferred from the State Planning Commission to the Ministry of Finance in Syria and the related Organic Law amendment operated in 2009 has been effectively implemented.

21. METAC Main Achievements Revenue Administration Reorganizing tax administration to improve effectiveness, particularly with respect to strengthened headquarters and function-based tax offices – Egypt, Jordan, Lebanon, Sudan, Syria, and Yemen Developing and expanding taxpayer segmentation concepts, initially through establishing a large taxpayer office then by deploying subsequent measures to strengthen medium and small taxpayer administration – Egypt, Jordan, Syria, Sudan, and Yemen Strengthening the concepts of self-assessment and risk management, including designing risk-based compliance strategies and implementing modern enforcement measures and schemes – Jordan, Lebanon, Sudan, Syria, and Yemen Supporting streamlining of tax procedures, automation of tax operations, and firming-up of taxpayer register – Afghanistan, Sudan, and Syria Enhancing tax systems and legislation frameworks, including streamlined and harmonized tax procedure codes, improved or new VAT systems, and small business regimes – Afghanistan, Egypt, Jordan, Lebanon, Sudan, and Syria

22. METAC Main Achievements Multisector Statistics • Lebanon launched a new All-Lebanon monthly consumer price index (CPI) • Survey-based programs for compiling foreign direct investment (FDI) statistics were developed in Egypt, Jordan, Lebanon, and West Bank and Gaza • All METAC countries now compile a CPI; improvements were recently implemented in Afghanistan, Jordan and Sudan. A a PPI was launched in Sudan (with initial assistance of AITRS) • Jordan and West Bank and Gaza joined the IMF’s Special Data Dissemination Standard (SDDS); Sudan publishes a full International Investment Position (IIP); Afghanistan has started publishing quarterly balance of payments data; and most countries now compile external debt data largely consistent with the internationally agreed methodology.

23. METAC Main Achievements Central Bank Accounting (Activity ceased in October 2009) Development 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. IBAN use was declared to be mandatory for all banks in Lebanon as of July 1, 2010. Lebanon is now registered as an IBAN user Country in the SWIFT-IBAN Registry. A draft IFRS based Accounting Policy Document was prepared by METAC to be used as a basis for formal central banks Accounting Policies.

24. METAC Evaluation • A mid-term external evaluation of METAC’s activities and performance was conducted in the first quarter of 2007 by Oxford Policy Management • The overall finding is that beneficiary countries are highly satisfied with the performance of METAC The evaluation found that the process of identifying technical assistance needs works reasonably effectively, and that METAC TA has provided important value added to IMF activities in relation to providing capacity building, follow up, and implementation support • An independent external evaluation was finalized in October 2009

25. METAC Evaluation Highlights • METAC has played a useful role in defining country TA priorities and has contributed to the development of agreed priorities as set out through the Regional Strategy Note (RSN). • Beneficiary organizations consider that the work of METAC is demand-driven and responsive to the needs of countries. • Beneficiary organizations rated the quality of expertise and technical assistance highly, and the timeliness of response more positively than other TA providers. • There was a strong consensus from the beneficiary countries that METAC’s regional activities were very useful and that more focus should be placed on these activities.

26. METAC Evaluation Highlights • The participation of resident advisors in HQ missions and the reporting and backstopping relationship with functional departments has ensured a strong integration of METAC activities with IMF priorities as set out through the RSN. Respondents in beneficiary organizations generally regarded METAC activities as strongly complementary to other IMF activities. • METAC has made significant progress in developing a network of local and regional experts. • METAC is a unique or 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.

27. METAC Funding In 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:

28. METAC Budget & Financing • Funding cycle of METAC III covers a period of five years starting in May 2010 • The total budget of Phase III is $33m. The IMF, EC, France, Kuwait, Oman, as well as the METAC beneficiary countries—Lebanon, Egypt, Jordan, Libya, Syria, Sudan, and Yemen—pledged to contribute US$21.5 million to METAC. The pledges received cover about two thirds of the center’s requirements for its third phase of operation.

29. Recent contribution by Germany of $2.4 million, through the German Agency for International Cooperation, and $1.3 million by the United States Agency for International Development will help offset the pledges that were not made.

30. Thank you