METAC’s resources are available for diagnostic work to identify and design measures needed to strengthen specific aspects of economic and financial governance; preparing detailed implementation plans based on the diagnostic work conducted by TA departments at IMF Headquarters; reviewing proposals or assessments by governments and other donors for consistency with internationally agreed standards, and coordinating activities with other TA providers; providing policy and technical advice either by the Center’s own advisers or by consultants hired by METAC; and organizing training courses, seminars, workshops and dissemination of best practices.

Banking Supervision

METAC’s support to the Central Bank of Yemen (CBY) focuses on strengthening its capacity to supervise financial institutions by reviewing and updating the inspection manual in line with CAMEL’s approach. METAC assisted in (i) upgrading the CBY’s credit registry system; (ii) training on the use of statistical data techniques to analyze prudential indicators; (iii) reorganizing the Banking Supervision Sector; and (iv) training in other areas of banking supervision.

Public Financial 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 supported the authorities with the modernization of the budget classification.

Revenue Administration

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.

Multisector Statistics

In the area of real sector statistics, METAC is providing assistance in national accounts and prices. METAC is assisting the Central Bank of Yemen in improving the basis for compiling balance of payments statistics, in particular in the area of trade, remittances, and financial account transactions, and the international investment position statistics.

Central Bank Accounting (Ceased in October 2009)

METAC assisted with four evaluation visits. Assistance has been provided to develop a revised chart of accounts, management reports and a formal accounting policy based on the International Financial Reporting Standards.