Yemen

METAC support to the Central Bank of Yemen (CBY) focuses on strengthening its capacity to supervise financial institutions and on upgrading the credit registry. METAC is financing IMF technical assistance to the CBY in liquidity management.

METAC intends to play a supporting role to the work of other technical assistance providers in Yemen. The Yemeni authorities are commencing a major reform project in public financial management with the support of DfID, UNDP, and the Royal Netherlands Embassy. There is also an on-going project of the World Bank which focuses on civil service reform and the introduction of a Financial Management Information System.

METAC has provided technical assistance to help modernize the tax administration with focus on strengthening the Large Taxpayer Office and the introduction of the general sales tax (GST). METAC assistance was also provided to prepare amendments to the GST legislation, which were adopted in July 2005. METAC participated in an IMF headquarters mission that assessed preparations for the introduction of the GST, reviewed the overall tax administration organization and procedures, and updated the modernization strategy and timetable in 2006. Further METAC support is planned to help develop the updated strategy in coordination with the other donors.

METAC has provided assistance in national accounts - including the compilation of output at current and constant prices - and in compiling a producer price index. The World Bank and the DfID helped the Yemeni authorities with the preparation of a master plan to develop statistics.