Serving the region in partnership with: The European Commission The European Investment Bank France Japan Kuwait Oman METAC is a shining example of how.

Serving the region in partnership with:

The European Commission

The European Investment Bank

France

Japan

Kuwait

Oman

“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 PMA

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.

METAC Donors

EIB

EC

France Japan

Oman Kuwait

METAC Countries

WBG

METAC Governance

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.

Central Bank Accounting (replaced by

Public Debt Management)

Revenue Administration

Public Financial

Management

Multisector Statistics

Banking Supervision

METAC

METAC TA Areas

Provide capacity-building assistance

Facilitate the reform process in member countries

Support the region’s integration in the world economy

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

METAC Mandate

Integration with IMF surveillance and lending activities

Integration with IMF surveillance and lending activities

Decentralized and well tailored delivery of TADecentralized and well tailored delivery of TA

Strong country ownershipStrong country ownership

Fast and efficient response to TA requests Fast and efficient response to TA requests

Effective follow up on implementation of TAEffective follow up on implementation of TA

Close coordination with other TA providersClose coordination with other TA providers

Focused subject-specific and hands-on training for local officials

Focused subject-specific and hands-on training for local officials

METAC Advantages

Banking SupervisionEnhancing banking supervision procedures in accordance with international best practices

Building the capacity of banks’ examiners through training, seminars and workshops

Strengthening the examination process through the development of new financial statements and early warning systems

METAC TA in Banking Supervision

Developing credit registry systems for better monitoring of credit facilities

Main purpose is to create a sound banking supervision environment to maintain public trust and confidence in the banking sector, by:

Multisector StatisticsDeveloping compilation and dissemination procedures

Identifying emerging data sources

Preparing and verifying data

METAC TA in Statistics

Documenting data sources and compiling methods

Main purpose is to improve the overall quality of macroeconomic statistics and to promote the use of internationally-accepted concepts

and statistical methodologies, by:

Public Financial Management

Improving organization and providing capacity building at ministries of finance

Improving financial accounting and reporting and strengthening internal and external control mechanisms

Reforming budgeting and accounting classification; and improving treasury systems

METAC TA in PFM

Main purpose is to build capacity for reforms in budget preparation and execution to improve expenditure control and revenue monitoring, by:

Revenue Administration

Enhancing revenue administration organization and procedures

Implementing effective compliance control tools for tax collection

Developing legislative frameworks for tax administration

METAC TA in Revenue Administration

Main purpose is to plan and implement revenue administration reforms, by :

Central Bank Accounting

Providing technical support for the transition to integrated financial management information systems

Improving the financial and management reports in compliance with International Financial Reporting Standards

Developing the internal audit function

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 :

METAC TA in Public Debt Management (Starting March 2010)

Improving public debt management and developing public debt markets are

important 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.

Workshops & Seminars

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

METAC Outreach Activities

Arab Economic Integration Conference,

Kuwait, Nov 11-12, 2008METAC Annual report

launching, Aug 7, 2008

METAC Outreach Activities

METAC participation in the International Colloquium on Decentralization, Apr 2009

Forum on Financial Crisis, in collaboration with the Union of Arab Chamber of Commerce, Beirut, Dec

2008

METAC Outreach Activities

General Debt in Lebanon, Institute Bassil Fuleihain, Feb

2009

حول المالي للمعهد ورشةالعام الدين أزمة

فليحان باسل معهد نّظ�مأمس واالقتصادي المالي

الدولية المؤسسة مع بالتعاونعمل ورشة والتدريب، لإلدارةلبنان في العام الدين أزمة عنالعامة، الموازنة على وتأثيرها

المستشار فيها حاضرتوفيق الدكتور االقتصادي

مدير كالمه على وعّق�ب كسبار،للمساعدة االقليمي المركزالتابع األوسط للشرق الفنيةسعادة الدولي النّقد لصندوق

.شامي

Economic Impact of the Global Economic Impact of the Global Financial Crisis on the Gulf Financial Crisis on the Gulf

Region and Policy Response, Region and Policy Response, Abu Dhabi, Dec 2007Abu Dhabi, Dec 2007

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

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

METAC Results

METAC Main Achievements

Central 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.

METAC Main Achievements

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.

METAC Main Achievements

Tax administration reorganization to improve effectiveness, particularly with respect to strengthened headquarters functions – Egypt, Jordan, Sudan, and Yemen, with work in progress in Syria

Development 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 Yemen

Strengthening the concepts of self-assessment and risk management, including supporting practical measures such as audit case selection techniques – Jordan, Lebanon, Sudan, Syria, and Yemen

Strengthened legislation frameworks, particularly streamlined and harmonized tax procedure codes, and improved or new VAT and small business regimes – Egypt, Jordan, Lebanon, and Syria

METAC Main Achievements

Lebanon launched a new All-Lebanon monthly consumer price index (CPI)

Jordan began compiling and disseminating external debt statistics in line with the international statistical methodology

Survey-based programs for compiling foreign direct investment (FDI) statistics were developed in Egypt, Lebanon, and West Bank and Gaza

Work was completed for an improved CPI for Sudan.Syria joined the IMF’s General Data Dissemination System (GDDS)

METAC Main Achievements

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.

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.

METAC Evaluation An independent external evaluation was finalized in October

2009

The 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

METAC Funding

Lebanon, which in addition to a large financial contribution, finances the Center’s office facilities and local staff

• Egypt• Jordan• Libya• Syria• Sudan• Yemen

• EC• EIB• France• Japan• Kuwait• Oman

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:

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.