METAC’s resources are available to (i) identify and design measures to strengthen specific aspects of economic and financial management; (ii) prepare detailed implementation plans based on the diagnostic work conducted by IMF-Headquarters; (iii) provide policy and technical advice either by the Center’s resident advisers or by experts from the IMF roster; (iv) organize hands-on training, seminars, workshops to allow for peer-to-peer learning and disseminate good practices; (v) review proposals by governments for consistency with internationally agreed standards, and (vi) coordinate activities with other technical assistance providers.

The oil price shock has hit Algeria’s economy hard and exposed the longstanding vulnerabilities of an economy highly dependent on hydrocarbons. The IMF staff report for the 2016 Article IV Consultation highlighted the need to achieve a durable and ambitious fiscal consolidation over the medium term, deep structural reforms are necessary to offset the impact of fiscal consolidation on growth, and reduce the dependence on oil, by greater exchange rate flexibility, a carefully calibrated monetary policy that guards against inflation, and policies to mitigate risks in the banking system. Against this background, METAC’s assistance focuses on supporting the authorities’ efforts aimed at strengthening the medium-term budget framework, developing a fiscal risk management framework, upgrading Bank of Algeria’s regulatory framework in line with Pillar 2 of Basel II, and building its related implementation capacity.