Technical Assistance Reports
2024
July 12, 2024
Suriname: Technical Assistance Report-Strengthening the AML/CFT Legal Framework and Developing a Risk-based Approach to AML/CFT Supervision—Central Bank of Suriname
Description: The mission was undertaken in the context of a capacity development (CD) project that assisted the authorities to enact a new AML/CFT law in November 2022 and amend AML/CFT secondary legislation and related components of sectoral legislation. During the mission, staff discussed the authorities’ continued initiatives to strengthen the legal framework and the existing supervisory arrangements in place at the CBvS. Staff’s main work during the mission focused on reviewing further amendments made to the AML/CFT law (Wet ter Voorkoming en bestrijding van Money Laundering en Terrorisme Financiering (WMTF), and a directive developed by the CBvS (“Richtlijn AML/CFT”). Staff also proposed amendments to a newly developed AML/CFT supervision manual (“Handboek AML/CFT Toezicht”) and the set-up of an institutional money laundering/terrorism financing (ML/TF) risk matrix as key components of the CBvS’ AML/CFT supervisory framework.
July 12, 2024
Republic of Moldova: Technical Assistance Report-Design Considerations for a New Bank Liquidation Framework
Description: At the request of the National Bank of Moldova (NBM), a technical assistance (TA) mission of the Monetary and Capital Markets Department and the Legal Department visited Chisinau during November 28 to December 5, 2022, to assist with the design of a revised bank liquidation framework. The mission reviewed three stylized models for bank liquidation – i.e., a purely administrative model in which a public authority (e.g., the resolution authority) directs the liquidation procedure, a judicial model that relies on court-supervised liquidation procedures, and a hybrid model in which a dedicated liquidator carries out the liquidation process under supervision of the court. It identified important considerations in support of a continued (albeit reduced) role for the NBM in bank liquidation and concluded that a hybrid model could be a viable option for Moldova: by shifting more responsibilities to the judiciary, the NBM’s Resolution Division could free up some resources, while maintaining synergies between the NBM’s responsibilities for adopting early intervention measures and (the planning of) bank liquidation. The mission recommended that, in such a model, the NBM retains the power to (i) initiate liquidation; (ii) appoint or propose liquidators; and (iii) undertake a ‘Purchase and Assumption’ type of transaction, whereby the deposits of the failing bank are transferred to a willing buyer. It also provided detailed guidance on, among others, (i) the triggers for determining when liquidation should be initiated; (ii) the process for commencing the liquidation process; (iii) the legislative design of transfer powers and associated safeguards; (iv) the role and appointment of liquidators; and (v) legal protection of the NBM.
July 10, 2024
Seychelles: Technical Assistance Report-Bank Resolution Framework
Description: The IMF conducted a technical assistance to Central Bank of Seychelles (CBS) and provided policy and legal guidance to the CBS on the drafting of legal amendments that will provide an adequate institutional framework and effective powers for bank resolution, and thus contribute to financial stability, while limiting the use of public funds and addressing moral hazard concerns. The mission provided recommendations on corrective actions, emergency liquidity assistance (ELA) and bank resolution frameworks to enhance their alignment with international best practices, FSB’s Key Attributes of Effective Resolution Regimes for Financial Institutions (KAs) and good practice.
July 8, 2024
Cambodia: Technical Assistance Report-Training in Investigation Techniques
Description: This Technical Assistance Report summarizes the training in investigation techniques, provided by IMF expert to Cambodia customs administration, including a training program, training materials used in April 2024, and advice on the next steps.
July 8, 2024
The Bahamas: Technical Assistance Report-Domestic Local Currency Bond Market Development
Description: The Bahamas has a strong foundation for developing the local currency bond market (LCBM), benefitting from macroeconomic stability, and favorable fiscal and borrowing plans. The government views domestic capital market development as crucial for rebuilding economic buffers and fostering financial market development. An IMF/CARTAC a technical assistance mission visited The Bahamas in March 2023 to support the LCBM development. The mission assessed the current stage of the sovereign debt market and formulated policy recommendations for each of the six building blocks outlined in the Guidance Note for Developing Local Currency Bond Markets. Key findings highlighted significant potential to shift funding from non-concessional external borrowing to the domestic bond market, which would facilitate a more robust yield curve and deeper benchmark issuances. The mission’s key recommendations were: • Transition to a competitive auction system, allowing market prices to clear a fixed volume on offer; • Enhance communication with market participants, including through a formal investor relations strategy, and with relevant stakeholders to improve credibility, transparency, and investor appetite; and • Implement reforms sequentially, initially focusing on eliminating the most critical bottlenecks to market development.
June 28, 2024
Bangladesh: Technical Assistance Report-Interest Rate Corridor Adoption
Description: In August 2023, the IMF South Asia Regional Training and Technical Assistance Center (SARTTAC) undertook a Technical Assistance (TA) Mission at Bangladesh Bank (BB) to advise on the shift from a reserve money targeting monetary policy framework to an interest rate-focused one. This transition, announced by BB for July-December 2023, marks a significant policy shift, and it provides an opportunity to realign BB's governance and operational frameworks with the new monetary policy framework. Crucial to this transition is the amendment of the Bangladesh Bank Order (BBO) to give priority to price stability as the objective of monetary policy, to enhance BB's autonomy and accountability, and to eliminate direct BB lending to priority sectors. These modifications aim to align the governance structure with the objectives of the updated monetary policy framework. The mission suggested several key adjustments to the operational framework, including the implementation of a weekly 7-day Open Market Operation (OMO) at the policy rate; an increase in Cash Reserve Ratio (CRR) averaging; automatic access to Standing Facilities (SFs), and the harmonization of the legal framework for collateralized liquidity-providing monetary operations. Additionally, the mission proposed future measures to improve short-term liquidity forecasting and interbank market trading. Supportive measures were also recommended, such as normalizing the foreign exchange market with a clear exchange rate policy; engaging in money market development initiatives; participating in the Local Bond Market development project; and revising BB’s communications policy to enhance transparency. These reforms are designed to improve monetary policy transmission so as to support the achievement of BB’s its primary mandate of price stability, as a prerequisite for macroeconomic stability and stable economic growth.
June 14, 2024
Dominica: Technical Assistance Report-Improving Estimates of Gross Domestic Product (August 29–September 8, 2023)
Description: A joint CARTAC, IMF capacity development engagement with the Central Statistics Office (CSO) in the Ministry of Finance in Dominica to improve estimates of Gross Domestic Product (GDP) was undertaken. The capacity development focused on three main aspects: supporting improvements of the GDP series in line with the 2008 SNA standards, including training for re-referencing the volume estimates of GDP; identifying data holdings which could be used to improve the quality of the estimates; and developing a work program for improving the timeliness of macroeconomic statistics in Dominica. Administrative data including value added tax data was used to compliment survey based estimates to enhance the current price estimates of GDP. To identify potential other data sources, meetings with various government stakeholders took place to discuss accessibility of data to continue to improve the quality of the macroeconomic estimates in the future. In addition to re-referencing the volume estimates of GDP to 2018 prices (from the existing 2006 base year), refinements to the GDP compilation system were developed to increase the capacity development of the staff to maintain and update the compilation of macroeconomic statistics in the future.
June 12, 2024
Republic of Poland: Technical Assistance Report-Aligning the Stabilizing Expenditure Rule to the European Union Fiscal Framework
Description: The stabilizing expenditure rule (SER) in Poland has been instrumental in fostering fiscal discipline in the years leading up to the pandemic. The pandemic and subsequent shocks severely tested the expenditure rule. Returning to the SER limit after severe shocks proved challenging, making clear the needs to revise the SER to preserve its credibility. The government could enhance the credibility of the expenditure rule through broadening its coverage and strengthening compliance, including establishing an independent fiscal council. Moreover, aligning to the EU fiscal framework will require (i) ensuring expenditure limits implied in the SER to be consistent with the EU net expenditure path; and (ii) providing explanation on the differences in expenditure coverage and classification between the SER and the EU fiscal framework to ensure compliance. Over time, transition to binding multi-year limits in the SER would improve linkages between annual budgets and medium-term fiscal planning.
June 10, 2024
Georgia: Technical Assistance Report-Report on Government Finance Statistics for State-Owned Enterprises Mission (January 16-27, 2023)
Description: This technical assistance (TA) mission on Government Finance Statistics (GFS) was conducted in Georgia during January 16– 27, 2023. The main purpose of the mission was to assist the authorities in extending GFS coverage to include non-market State-Owned Enterprises (SOEs) and aligning fiscal reporting requirements to the IMF and the European Union. The mission also reviewed the progress made by the authorities in implementing previous TA recommendations.
June 10, 2024
Georgia: Technical Assistance Report-Report on Government Finance Statistics for State-Owned Enterprises Mission (April 26-May 24, 2021)
Description: This technical assistance (TA) mission on Government Finance Statistics (GFS) was conducted in Georgia during April 26 – May 24, 2021. The main purpose of the mission was to assist the authorities in extending GFS coverage to include non-market State-Owned Enterprises (SOEs) and aligning fiscal reporting requirements to the IMF and the European Union. The mission also reviewed the progress made by the authorities in implementing previous TA recommendations.