Fiscal Year 2024
Capacity Development Activities
Financial Supervision and Regulation (Jun 18-Jul 3)
In response to a request from the Palestine Monetary Authority (PMA), METAC conducted a virtual mission to review the PMA’s current regulatory and supervisory frameworks for credit classification and provisioning under IFRS 9. It identified the gaps in the current regulatory framework that are causing the variances between the regulatory and accounting provisioning. The mission proposed a list of recommendations to address the regulatory gaps, enhance the classification of loans and the definition of restructuring and the criteria for the curing period of restructured loans. It proposed enhancing the IFRS 9 model risk management and governance. The mission also provided the examiners with a set of examination procedures to guide them in performing their supervisory review process tasks of IFRS 9 implementation.
Public Financial Management (May 30-Jun 1)
The three-day workshop was attended by the Macro Fiscal Unit, the Budget Directorate, and the PFM Coordinator. It assessed fiscal policy documents, instruments, and processes currently in use. The workshop concluded that fiscal strategy needs to be more focused, leaner, and more connected to the budget process. MoF officials developed an outline and initial content of a pre-budget statement, which can set fiscal strategy and a frame for budget planning and implementation. This instrument can still be used for the 2024 annual budget if it is launched before the end of July 2023 along with the budget circular. The FCDO-sponsored PFM program “Takamol” participated as observer in the workshop.
Real Sector Statistics (Aug 13-24)
The mission assisted the Palestinian Central Bureau of Statistics (PCBS) to enhance the compilation system for fixed based year annual estimates of production-based GDP and develop one for chain-linked estimates. The key areas of improvement were identified, and more disaggregated quantity and price indicators were used to estimates volumes using both deflation and extrapolation methods.
