Syria

METAC has provided advice on the development of prudential regulations; supervisory reports; accounting and financial statements reporting; skills development and capacity building of the banking supervision staff. METAC is the sole technical assistance provider in banking supervision to the Central Bank of Syria (CBS). METAC is also financing IMF headquarters technical assistance to the CBS in reserve management.

The Syrian authorities intend to develop a strategy for public financial management reform building upon the advice provided by a joint IMF headquarters/World Bank mission in January 2006 (in which METAC participated). METAC will work with IMF headquarters in supporting the authorities as they develop the reform strategy, and to provide help on specific projects identified in the strategy. Pending the completion of the strategy, the authorities have already sought support in revising the Basic Finance Law. METAC (together with the World Bank) provided advice on the international experience with “organic” budget laws, and gave specific advice on the draft law developed by the authorities. The EU has a large project in Syria which focuses on revenue administration reform, and also covers budget classification and accounting issues.

METAC followed-up on the implementation of tax administration reforms recommended during an IMF headquarters technical assistance mission in 2005. METAC has participated in the donor coordination meetings organized by the Ministry of Finance. It also reviewed the implementation of the reforms, including preparations for a Large Taxpayer Office (LTO) in coordination with the EU technical assistance team. An IMF headquarters tax administration mission is planned to follow-up on the implementation of reforms and advise on VAT preparations.

METAC has provided sizeable assistance in national accounts and price indices to the Central Bureau of Statistics. METAC will also provide technical assistance to the Central Bank of Syria in key areas to facilitate improvements in the coverage, classification, and sectorization of the balance of payments statistics. An IMF headquarters multisector statistics mission identified the need for major improvements in the balance of payments compilation system in 2004.