Active Economic Programs

The Arab Monetary Fund (AMF) Fund, pursuant to the Board of Executive Directors’ resolution number (1) of 2019, extended an Ordinary Loan to the Republic of Sudan with the amount of AAD 27.4 million (about US$ 115 million ), to be withdrawn in two tranches, equivalent to 100 percent of its share in the Fund’s paid-up capital in convertible currencies. The loan supported a macroeconomic reform program covering the year 2019. The second tranche of the loan, with the amount of AAD 10.960 million (equivalent to about US$ 46 million), was withdrawn following a Fund’s mission to monitor the implementation of the agreed program.

The program supported the efforts of the Sudanese government geared towards the implementation of macroeconomic reforms and expanding the scope of structural reforms to achieve macroeconomic balance, thus contributing to enhancing economic stability, expanding and diversifying the production base, and enhancing the role of the private sector, through mobilizing efforts and exploiting the latent capabilities in the Sudanese economy, in order to achieve national visions and goals. The program aimed to enhance financial and economic stability and create a conducive macroeconomic environment, to achieve sustainable and inclusive economic growth, through increasing real growth rates, reducing inflation rates, containing fiscal deficit, and maintaining budget financing from the Central Bank of Sudan within the established legal limits, in addition to reducing current account deficit and strengthening foreign exchange reserves. To achieve these goals, the program included a set of policies and measures in the field of fiscal policy, public finance management, monetary policy, the external sector, the financial and banking sector, and the real sector.

Regarding fiscal policy, the program aimed to strengthen the fiscal position, by boosting revenues, rationing public spending, and reducing borrowing from the Central Bank of Sudan. With regard to public finance management, the measures in the program included setting strategic plans for revenues and expenditures, implementation of a medium-term fiscal framework, enforcing the financial and accounting procedures law and the procurement and contracting law, initiating the implementation of program budgeting, in addition to expanding fiscal digitalization and generalizing electronic tax collection system. As for monetary policy, the program included adopting a restrictive monetary policy to absorb excess liquidity, in order to reduce inflation rate and maintain purchasing power of the domestic currency. Regarding the external sector, the program included measures to ration imports, encourage import substitution industries, increase export earnings from manufacturing and extractive industries, maximizing value added of the agricultural exports, and establishing free zones with landlocked neighboring countries. With respect to the financial and banking sector, the program included measures to strengthen the supervisory and regulatory frameworks of the non-banking financial institutions. As for the real sector, the program included efforts aimed at enhancing production capacity of the main sectors, including agriculture, forestry, and fishing; mining and quarrying; manufacturing and handicrafts; and trade.

The AMF provided an Extended Loan to the Republic of Sudan with a value of AAD 39.9 million (equivalent to about US$ 166 million), representing 175 percent of  the Republic of Sudan’s share in the Fund’s paid-up capital in convertible currencies, according to the Board of Executive Directors’ resolution number (14) of 2015. The loan extended to support a comprehensive macroeconomic reform program, covering the years 2016 and 2017. The mentioned resolution stipulated the withdrawal of the loan in three tranches, considering the progress of implementing the agreed upon measures.

The program sought to achieve a number of objectives included consolidating financial and economic stability and enahcing macroeconomic environment to achieve sustainable and inclusive growth rates, reduce the inflation rate, contain the current account deficit of the balance of payments, and enhance official foreign currency reserves. The program included various fiscal, monetary and financial measures to achieve the set objectives.

On the fiscal side, the program aimed to strengthen the government’s fiscal position, by increasing public revenues and diversifying their sources, thus increasing the flexibility of the budget and its ability to absorb various shocks; controlling public spending while enhancing capital and social expenditures, in order to support economic growth and reduce poverty. The program also aimed at reducing the government borrowing from the Central Bank of Sudan to finance the budget deficit, in order to mitigate the macroeconomic risks arising from such financing. With respect to monetary policy, the program included adopting a restrictive monetary policy, consistent with the macroeconomic objectives of reducing inflation rate and unifying the exchange rate while aligning it to supply and demand factors governing foreign exchange. As for the external sector, the program encompassed measures aimed at reducing the current account deficit, through rationing imports, developing import-substitution industries, and increasing export earnings from the manufacturing, extractive and mining industries. The program also included measures to raise the efficiency of public finance management, including enhancing budget comprehensiveness, implementing program budgeting, improving fiscal planning framework, developing public debt management, and strengthening tax and customs administrations. In addition, the program included measures to develop the financial and banking sector, aiming at enhancing financial stability and soundness, strengthening financial supervisory frameworks in accordance with best practices, developing credit information systems, modernizing payment and settlement systems, strengthening banking infrastructure, and promoting access of small and medium sized enterprises to finance and financial services.

Compensatory Loan 2021

In pursuant to the Board of Executive Directors’ resolution number (16) of 2021, the AMF extended a Compensatory Loan to the Hashemite Kingdom of Jordan, with a value of AAD 14.770 million (equivalent to about US$ 63 million), representing 100 percent of its share in the Fund’s paid-up capital in convertible currencies. The loan contributed to financing the balance of payments deficit during 2020, resulting from the decline in commodity and service export revenues due to the impacts of Covid-19 pandemic, essentially the decline in global demand, repercussions of the lockdowns, and the impacts on travel and transport. The loan amount was withdrawn in one tranche during the year 2021 after the signing of its agreement.

Automatic Loan 2020

The AMF extended an Automatic Loan to the Hashemite Kingdom of Jordan with the amount of AAD 10 million (equivalent to about US$ 41 million), representing 68 percent of its share in the Fund's paid-up capital in convertible currencies. The loan aimed to finance the balance of payments deficit, thereby contributing to the government efforts to strengthen the external position in light of the challenges facing the Jordanian economy, as a result of the unfavorable impacts of the Covid-19 pandemic, including the negative effects on productive activities, tourism revenues, external transfers, and the fiscal stance. The loan amount was withdrawn in one tranche during the year 2020 after the signing of its agreement.

Compensatory Loan 2017

According to the Board of Executive Directors’ resolution number (1) of 2017, the AMF extended a Compensatory Loan to the Hashemite Kingdom of Jordan with the value of AAD 13.400 million (nearly US$ 56 million), representing 97 percent of the country’s share in the Fund’s paid-up capital in convertible currencies, to support the external position in view of the emerging contraction of goods and services exports, due to plummeting external demand and decreasing prices of primary commodities in international markets. The loan amount was withdrawn in one tranche during 2017 after the signing of its agreement.

Automatic Loan 2016

The AMF extended an Automatic Loan to the Hashemite Kingdom of Jordan with the amount of AAD 9.964 million (equivalent to about US$ 40 million), which represented 75 percent of the country’s share in the Fund’s paid-up capital in convertible currencies. The loan was withdrawn in one payment after signing its agreement. The provision of the loan came within the framework of meeting the financing needs of the balance of payments deficit during 2016, thereby strengthening the reserve position and providing an appropriate policy space for the government to take policies aiming to accelerate economic growth and support the positive results achieved due to reform efforts implemented.

Compensatory Loan 2021

The AMF, pursuant to the Board of Executive Directors’ resolution number (15) of 2021, agreed to provide a compensatory loan to the Arab Republic of Egypt with the amount of AAD 87.7 million (equivalent to about US$ 368 million), representing 100 percent of the country’s share in the Fund’s paid-up capital in convertible currencies. The loan aimed to enhance the country’s external position in face of the challenges arising from the Covid-19 pandemic, including the decline in the proceeds of goods and services exports, due to the decline in external demand and the lockdowns procedures.

Compensatory Loan 2016

The AMF, pursuant to the Board of Executive Directors’ resolution number (21) of 2016, exteded a Compensatory Loan to the Arab Republic of Egypt with the amount of AAD 81,820 million (equivalent to about US$ 330 million), representing 100 percent of the country’s share in the Fund's paid-up capital in convertible currencies. The loan came within the framework of meeting the financing needs of the balance of payments during the fiscal year 2015/2016, in light of the high current account deficit resulting from the decline in the proceeds of exports of goods and services during the mentioned year due to contracting tourism revenues. The loan amount was withdrawn in one tranche during 2016 after the signing of its agreement.

Automatic Loan 2015

The Fund provided an Automatic Loan to the Arab Republic of Egypt with the amount of AAD 59.160 million (equivalent to about US$ 250 million), representing 75 percent of the country’s share in the Fund's paid-up capital in convertible currencies. The loan aimed to contribute to financing the balance of payments deficit during 2015 and provide a suitable space to meet the needs of enhancing economic stability and fostering economic development. The loan amount was withdrawn in one tranche during 2015 after the signing of its agreement.

Compensatory Loan 2021

The Fund, pursuant to the Board of Executive Directors’ resolution number (14) of 2021, extended a Compensatory Loan to the Republic of Tunisia, amounting AAD 19.175 million (equivalent to about US$ 82 million), and representing 100 percent of the country’s share in the Fund’s paid-up capital in convertible currencies. The loan was withdrawn in one payment during 2021 after signing its agreement. The objective of the loan was to ease pressures on the balance of payments caused by the rise in food prices in global markets.

Automatic Loan 2020

The Fund extended an Automatic Loan to the Republic of Tunisia with the amount of AAD 14,381 million (equivalent to about US$ 59 million), representing 75 percent of the country’s share in the Fund’s paid-up capital in convertible currencies, to contribute to strengthening the external position in light of the challenges facing the Tunisian economy due to the repercussions of Covid-19 pandemic. The loan amount was withdrawn in one tranche during the year 2020 after the signing of its agreement.

Compensatory loan 2018

The Fund, pursuant to the Board of Executive Directors’ resolution number (22) of 2017, extended a Compensatory Loan to the Republic of Tunisia with the value of AAD 18.532 million (equivalent to about US$ 78 million), representing 100 percent of the country’s share in the Fund's paid-up capital in convertible currencies. The loan amount was withdrawn in one tranche after signing its agreement. The loan came within the framework of contributing to meeting the needs of the country’s external financing during 2017, considering the high food import bill due to the rise in international food prices.

Automatic Loan 2020

The Fund extended an Automatic Loan to the Kingdom of Morocco with the amount of AAD 30.844 million (equivalent to about US$ 127 million), representing 75 percent of the country’s share in the Fund’s paid-up capital in convertible currencies, to assist the country in facing the challenges of the Covid-19 pandemic, including the unfavorable repercussions on productive activities, tourism revenues, trade movement and investment flows. The loan amount was withdrawn in one payment during the year 2020 after signing its agreement.

Compensatory Loan 2019

The Fund, pursuant to the Board Executive Directors’ resolution number (2) of 2019, extended a Compensatory Loan to the Republic of Sudan with the amount of AAD 27.4 million (equivalent to about US$ 115 million), representing 100 percent of the country’s share in the Fund’s paid-up capital in convertible currencies. The loan contributed to financing the balance of payments deficit during 2019, in light of the high current account deficit due to the decline in agricultural and livestock export revenues. The loan amount was withdrawn in one tranche during 2019 after signing its agreement.

Compensatory Loan 2016

The Fund, pursuant to the Board of Executive Directors’ resolution number (1) of 2016, extended a Compensatory Loan to the Islamic Republic of Mauritania, amounting AAD 12.340 million (equivalent to about US$ 50 million), and representing 100 percent of the country’s share in the Fund’s paid-up capital in convertible currencies. The loan contributed to the financing of the balance of payments deficit during 2016. The balance of payments deficit was due to the rise in the current account deficit, resulting largely from the decline in the proceeds of the main Mauritanian exports during the mentioned year, caused by falling international prices. The loan amount was withdrawn in one payment during 2016 after the signing of its agreement.

According to the Board of Executive Directors’ resolution number (1) of 2020, the Arab Monetary Fund (AMF) extended a loan to the Arab Republic of Egypt with the amount of Arab Accounting Dinar (A.A.D.) 153.475 million (equivalent to about US$ 639 million), under the framework of the Structural Adjustment Facility in the Government Finance Sector. The loan supported a reform program in the mentioned sector, agreed between the AMF and the Egyptian authorities, covering the year 2020.The loan was provided to support efforts of the Egyptian authorities in preserving the gains achieved as a result of the government's efforts to strengthen the fiscal position and enhance the efficiency of public financial management.

The program was based on five pillars: strengthening budget preparation and implementation process, developing tax administration, strengthening government procurement management, promoting the social protection system, and strengthening public debt management. 

The goal of strengthening budget preparation and implementation was to promote the budget preparation process, enhancing the effectiveness of fiscal performance, and achieving fiscal consolidation, through a gradual transition to the program budget. It also aimed at strengthening the medium-term fiscal framework, in a way that supports fiscal planning and the budget preparation cycle, in addition to developing an integrated government financial management system. 

Regarding the pillar of tax administration development, it aimed at developing mechanisms to integrate the parallel market into the official market, reduce tax evasion, simplify and accelerating tax procedures. It also aimed at drafting a tax law on treatment of small and micro enterprises, including the adoption of simple procedures to enhance tax compliance, revision of exemptions, promotion of fiscal digitization, and the development of tax statistics.

With respect to the pillar of strengthening government procurement management, it aimed at enhancing transparency, raise the efficiency of government spending, in terms of advance planning for contracting, efficient management of inventory, ensuring the quality of government services, preparing procurement contracting models and guidelines, enhancing the capacity building, in addition to digitalization of procurement and contracting process.

As per the Pillar of promoting the social protection system, it included measures aimed at developing an advanced and comprehensive system of social protection to ensure efficient allocation of financial resources and protecting the low-income groups. it also includes measures to strengthen social safety nets and health insurance system, rationing energy and food subsidies, strengthening social insurance system, in addition to enhancing the “Takaful” and “Karama” programs.

With respect to strengthening public debt management, it aimed at reducing cost of public debt, strengthening and revitalizing the secondary market for public debt instruments, activating the role of market makers, restructuring public debt management, enhancing the efficiency of public debt statistics and government guarantees system, in addition to developing mechanism for managing public debt owed by public corporations and institutions.

During 2021, the agreed reform program was followed up by the AMF to determine the progress of implementation. The Fund found that the Egyptian authorities had made progress in implementing the program, and the second installment of the loan, amounting to A.A.D. 65.775 million was withdrawn.

The AMF, according to the Board of Executive Directors’ resolution number (14) of 2020, extended a loan to the Kingdom of Morocco with the amount of A.A.D. 51.406 million (equivalent to about US$ 211 million), representing 125 per cent of the country’s share in the Fund’s paid-up capital in convertible currencies, under the framework of the Structural Adjustment Facility in the Government Finance Sector. The loan supported a reform program in the mentioned sector, agreed between the AMF and the Egyptian authorities, covering the period (June 2020 – June 2021).

The loan was provided to support efforts of the Moroccan government over the past years to implement reforms in the government finance sector, in addition to deepening and expanding these reforms in a way that enhances the fiscal position, supports economic stability, maintains fiscal stability, achieves sustainability of public debt, enhances the efficiency of spending and collection of public resources, and enhances social protection programs. The loan supported Moroccan government efforts geared towards restructuring public spending, enhancing the efficiency of public financial management, as well as its ability to address challenges and repercussions of Covid-19 pandemic on government finances.

The program was based on four pillars: strengthening budget preparation and implementation process, strengthening government procurement management, promoting tax administration, and strengthening public debt management.

With regard to strengthening budget preparation and implementation process, it aimed at enhancing the efficiency of planning, implementing and following up the public budget, in a way that strengthens the linkage between budget operations, strategic framework and general objectives of the country. The Pillar of strengthening government procurement management aimed at enhancing transparency and competitiveness, efficiency of public expenditures and the quality of services provided, as well as strengthening the economic dimension in public procurement as a lever for sustainable development. As for the pillar of promoting tax administration, it aimed at improving the efficiency of tax operations and enhance taxpayers’ confidence through reducing tax burden on individuals and establishments, rationing tax exemptions, and enhancing digitization of tax management. Regarding the pillar of strengthening public debt management, it aimed at reducing cost of public debt and enhancing secondary market for government public debt instruments. It also aimed at ensuring stable source of government financing through strengthening the role of market makers, expand the investor base, enhance the role of “sukuk” instruments as a source of financing, reduce the risks of refinancing government issuances, and enhance the liquidity of Secondary market for government securities.

During September 2021, virtual meetings and consultations were held with Moroccan authorities to follow up the progress in the implementation of the agreed program. The Fund found that the Moroccan authorities had made progress in implementing the program, and the second installment of the loan, amounting to A.A.D. 20.562 million was withdrawn.

On Thursday, October 4, 2018, an agreement on Arrangements for Fiscal Cooperation was signed between the governments of the Kingdom of Saudi Arabia, the United Arab Emirates, the State of Kuwait and the Kingdom of Bahrain, and the AMF, as an advisory body, with the aim of supporting the Kingdom of Bahrain in implementing fiscal balance program covering the period (2018-2022). On Friday, October 5, 2018, two bilateral agreements for financial cooperation were signed between the Ministry of Finance of the Kingdom of Saudi Arabia and the Kingdom of Bahrain, and between the Ministry of Finance of the United Arab Emirates and the Kingdom of Bahrain, in addition to the AMF as an advisory body. Also, on Tuesday, April 2, 2019, an agreement on financial arrangements was signed between the Kuwaiti Ministry of Finance and the Kuwait Fund for Arab Economic Development, the Government of the Kingdom of Bahrain and the AMF as an advisory body.

The program aims to restore the public budget balance, contain public debt, and achieves the fiscal sustainability in the medium and long term. The program aims to achieve a balance between government revenues and expenditures by 2022 and a surplus in the primary balance by 2020. The program includes six main initiatives represented in reducing the operating expenses of the government, introducing an optional early retirement program for the government employees, improving the efficiency of the Electricity and Water Authority to achieve a balance between its revenues and expenditures by 2022, improving the efficiency and fairness of direct government subsidy, as well as the efficiency of government spending. In addition, the program includes measures to facilitate government procedures and increasing non-oil revenues, including the implementation of value-added tax. The program's initiatives were strengthened, and its time frame was extended to achieve the target of fiscal balance by 2024, considering the effects of the COVID-19 pandemic. The AMF continues its efforts of following up the performance and providing technical support for the program, in consultation with the Bahraini authorities. 

According to the Board of Executive Directors’ resolution number (15) of 2020, the AMF extended a loan to the Republic of Tunisia with the amount of AAD 23.968 million (equivalent to about US$ 98 million), representing 125 per cent of the country’s share in the Fund’s paid-up capital in convertible currencies, within the framework of the Structural Adjustment Facility in the Financial and Banking Sector. The loan supported a reform program in the mentioned sector, agreed between the AMF and the Tunisian authorities, covering the period (June 2020-June 2021).

The loan was provided to support the monetary, financial, and structural reform efforts initiated by the Tunisian authorities since the beginning of 2019 in order to promote economic stability and create a favorable environment to stimulate production and drive growth. The Tunisian government's adoption of the financial and banking reform program was also aimed at strengthening the sector's prevention and strengthening its ability to cope with the repercussions of the Covid-19 pandemic on trade and the flow of foreign investment, as well as negative impacts on productive and service activities and their implications for domestic and external financial conditions. 

The program was based on four pillars: promoting financial innovation, promoting financial inclusion, developing payment systems, and strengthening banking supervision and financial stability. The goal of promoting financial innovation is to strengthen the system of modern financial technologies by encouraging innovation and raising the ability of the Central Bank of Tunisia to develop the appropriate regulatory framework for these technologies, including the activation of the Committee of Modern Financial Technologies, the development of a regulatory environment system for modern financial technologies, the development of an innovation laboratory, as well as the development of a website dedicated to modern finance. 

As for the pillar related to focus of promoting financial inclusion, it aimed to enhance the access of individuals and institutions to financial services and funding from banks and financial institutions, particularly digital services. While the development of payment systems has focused on increasing the efficiency of payment and settlement systems by strengthening the electronic payment system and expanding the scope and coverage of payment systems.

In the same vein, the actions focused on strengthening banking control and financial stability focused on strengthening the foundations of financial stability and adopting international standards in the field of banking and accounting control, by completing work on meeting the requirements of the Basel Committee on Banking Supervision, supporting the stability of the banking sector through the completion of the strategic project on establishing an integrated framework for macro-prudential policies, and developing key early warning indicators in the field of financial stability.

During July 2021, meetings and consultations were held with the relevant authorities of the Republic of Tunisia through visual media, where the AMF found that there was progress in implementing the elements of the program under the framework of its four main interlocutors, despite the exceptional circumstances due to the Covid-19 pandemic, and the second installment of the loan was withdrawn by 9.588 million Arab Accounting Dinars.

The AMF extended a loan to the Hashemite Kingdom of Jordan amounting AAD 23 million (equivalent to about US$ 96 million), within the framework of the Structural Adjustment Facility in the Financial and Banking Sector, to support a reform program in the mentioned sector covering the period (November 2018-November 2019), according to the resolution number (25) of 2018 issued by the Board of Executive Directors. 

The objective of the program is to enhance financial stability factors and access to finance and financial services, and to support efforts to strengthen payment, settlement and reduction systems.

The program was based on three pillars: enhancing financial inclusion by facilitating access to finance and financial services for individuals and SMEs; strengthening the system of control and supervision of the financial and banking sector; and strengthening payment and settlement systems and supporting the application of modern financial technologies.
  
The goal of promoting financial inclusion by facilitating access to finance and financial services by individuals, SMEs and micro-enterprises is to increase access to finance and financial services through the implementation of a range of measures aimed at enabling all segments of society to access and benefit from financial services, particularly youth, women, entrepreneurs and vulnerable groups, to promote financial inclusion, achieve social development goals and accelerate inclusive and sustainable economic growth and create productive jobs. As for the strengthening of the system of control and supervision of the financial and banking sector, it aimed to improve the operational efficiency of the task of controlling and supervising the financial and banking sector, in line with international practices and standards in this area, by applying the concept of risk-based approach, and completing the project of automating the inspection process on banks operating in the Kingdom. 

The objective of developing mechanisms and frameworks that enable the follow-up of indicators related to the health and safety of the individual and corporate sector, the level of their indebtedness, the extent of exposure of banks to them, the study of other sectoral risks, in addition to enabling the Central Bank to determine the level of potential risks more accurately, early, and identify the best and least costly ways to address them.  Stimulate the shift towards digital financial and banking services, encourage the use of modern financial technologies to improve the quality and accessibility of services provided by financial institutions, employ technologies to enhance financial inclusion, meet the changing needs of banking customers across digital services, and take advantage of the role those financial technologies play in providing alternative sources of financing to small enterprises.  Medium, ensuring compliance with risk management rules, facilitating foreign trade and remittances of overseas workers, reducing the cost of cross-border payments, and increasing the efficiency of government financial operations. 

As it followed up on the implementation of the agreed reform program, the Fund found that the Central Bank of Jordan had made determined efforts in implementing most of the measures containing the three axes on which the reform program agreed with the Fund was based. Accordingly, the second installment of the loan of 9.2 million Arab Accounting Dinars was withdrawn.

In 2017, the AMF extended a loan to the Kingdom of Morocco amounting AAD 69.500 million (equivalent to about US$ 293 million), representing 175 per cent of the country’s share in the Fund’s paid-up capital in convertible currencies, under the framework of the Structural Adjustment Facility in the Financial and Banking Sector. The loan supported a reform program covering the period (September 2017-September 2018). The program based on three pillars: strengthening financial coverage by facilitating the access of individuals, SMEs and micro-enterprises to finance and financial services; deepening the role of the capital market in financing the economy; and strengthening the system of controls and supervision of the financial and banking sector.

The loan to the Kingdom of Morocco was to help the Moroccan authorities face the challenges of taking appropriate measures to enhance the financial and banking sector's ability to mobilize resources and cope with shocks, by continuing reforms aimed at enhancing financial stability and access to finance and financial services and supporting efforts to deepen financial markets to meet the financing requirements for economic activities. 

The goal of promoting financial inclusion by facilitating access to finance and financial services for individuals, SMEs and micro-enterprises to increase access to finance and financial services through the implementation of a range of measures aimed at enabling all segments of society to access and benefit from financial services, especially young people, women, entrepreneurs and vulnerable groups, in remote areas, to promote financial inclusion, achieve social development goals and accelerate inclusive and sustainable economic growth and create productive jobs.  

As for the deepening role of the capital market in financing the economy, he focused on improving and revitalizing the market to support the finance needs of the economy, strengthen the investment environment and prepare it to attract more foreign and domestic investment that is reliable in achieving inclusive and sustainable economic growth.  With regard to the strengthening of  the control and supervision system in the financial and banking sector, it aimed to upgrade the control and supervision sector, and to strengthen the gains made in the framework of the reform and development of the control and supervision sector of the Bank of Morocco (Central Bank), in terms of determining the levels of risk to which banks may be exposed and detecting strong and weak sector  Banking, by linking the banking sector to economic developments in a quantitative way, and working on a methodology to identify banks of systemic importance.

During 2018, the AMF's mission to the Kingdom of Morocco to determine the progress of the implementation of the program indicated that the Moroccan authorities had made progress in implementing the elements of the program, under the framework of its three main interlocutors, and the second installment of the loan of 30 million Arab Accounting Dinars was withdrawn.

The AMF extended a loan to the Kingdom of Morocco, with the amount of AAD 12.748 million (equivalent to about US$ 54 million), representing 31 percent of the country’s share in the Fund’s paid-up capital in convertible currencies, under the Small and Medium Enterprise’s Conducive Environment Support Facility, to support the implementation of a program covering the period (November 2021 - November 2022).

The program came within the framework of supporting the Moroccan government efforts related to enhancing SMEs business environment, through improving SMEs access to finance and financial services and developing payment systems, while increasing their spread and coverage, in the context of promoting financial infrastructure.

The program is based on three pillars: enhancing SMEs access to finance and financial services, strengthening the guarantee system, and developing databases and credit information systems. The pillar of enhancing SMEs Access to financial Services aims to enable the target groups, especially youth and women in rural areas, as well as entrepreneurs, to access financial services, by implementing a set of measures that include completing legal frameworks related to crowdfunding, undertakings for the collective investments in transferable securities (UCITS), and microfinance, in addition to strengthening financing efforts within the framework of various initiatives and funds, strengthening the inclusive insurance framework, and accelerating the application of financial technology. As for the pillar of strengthening the guarantee system, it aims to enhance the role of credit risk guarantee directed to small and medium enterprises, by strengthening the guarantee institution, developing and diversifying its products, continuing efforts to strengthen the guarantee system and expanding its coverage to include innovative projects, graduates, youth and women projects in various fields, thus enhancing access of all segments of the society to finance. Regarding the pillar of developing databases and credit information systems, it aims to avail data and information related to the small and medium enterprises sector, and financial institutions such as banks, exchange companies, payment and electronic money transfers companies, microfinance companies, and insurance companies, to serve policy makers and planners for this sector. The pillar also aims to enhance the efficiency of the credit information systems through a set of measures to increase access to credit information related to small and medium enterprises and diversify credit information services, as well as expanding their coverage.

The Arab Monetary Fund (AMF), pursuant to the Board of Executive Directors’ resolution number (13) of 2018, extended a Loan to the Arab Republic of Egypt with the amount of Arab Accounting Dinar (AAD) 87.7 million (about US$ 368 million), to be withdrawn in two tranches, representing 100 per cent of its share in the Fund’s paid-up capital in convertible currencies, under the framework of the Facility of Supporting Conducive Environment for Small and Medium Enterprises (SMEs). The loan supported the implementation of a program to enhance business environment for SMEs, covering the period (June 2018 – June 2019). The first tranche of the loan, with the amount of AAD 52.26 million, was withdrawn following signing of its agreement. The second tranche of the loan, with the amount of AAD 30.08 million, was withdrawn following Fund’s monitor to the implementation of the agreed program.

The program was centered around four pillars represented in enhancing SMEs' access to finance and supporting financial inclusion, strengthening SMEs financing guarantee system, developing databases and credit information systems, and enhancing training and capacity development.

The goal of enhancing SMEs’ access to finance was to increase access to finance and financial services by implementing a set of measures aimed at enabling all segments of society to access and benefit from financial services, especially youth, women, entrepreneurs, and vulnerable groups, to enhance financial inclusion, achieve social development goals, accelerate inclusive and sustainable economic growth, and create job opportunities. As for the pillar of strengthening SMEs financing guarantee system, it aimed at enhancing the role of the Credit Risk Guarantee Company and expanding the coverage and scope of guarantee to cover part of SMEs risks, in a way that supports the initiatives adopted by the Central Bank to encourage banks to provide the necessary and appropriate finance to SMEs. As per the pillar of developing databases and credit information systems, it aimed at updating data and information related to SMEs to serve policy makers and planners in banks and all other related parties, provide the opportunity to add new banking products and services that are consistent with SMEs activities, in addition to improving the efficiency of using credit information and providing data related to SMEs in a consistent and comprehensive manner. Regarding the pillar related to enhancing training and capacity development, it aimed at enhancing training efforts and improve capacities of bank employees involved in financing SMEs, in addition to strengthening financial education, organizing media campaigns to raise entrepreneurs’ awareness in a way that helps them prepare feasibility studies and organize exhibitions to market their products.

The Arab Monetary Fund (AMF), pursuant to the Board of Executive Directors’ resolution number (23) of 2017, extended a Loan to the Republic of Tunisia with the amount of AAD 18.532 million (about US$ 78 million), to be withdrawn in two tranches, representing 100 per cent of its share in the Fund’s paid-up capital in convertible currencies, under the framework of the Facility of Supporting Conducive Environment for Small and Medium Enterprises (SMEs). The loan supported the Tunisian Government efforts in preserving reform gains achieved over the past years and implementing a program to enhance business environment for SMEs, covering the period (December 2017 - December 2018). The first tranche of the loan, with the amount of AAD 9.266 million, was withdrawn following signing of its agreement. The second tranche of the loan, with the amount of AAD 9.266 million, was withdrawn following Fund’s monitor to the implementation of the agreed program.

The program was based on three pillars represented in developing and supporting the role of the Tunisian Guarantee Company and expanding its scope of work, enhancing financial inclusion through improving SMEs’ access to finance and financial services, and strengthening the role of the Microfinance Supervisory Authority on microfinance associations and institutions.

The goal of supporting the role of the Tunisian Insurance Company and expanding its scope of work was to enhance the Tunisian government’s policy in supporting SMEs and ensure the realization of its initiatives aimed at encouraging banks to provide the necessary and appropriate finance to SMEs. These goals were planned to be achieved through expanding the coverage of Guarantees for Funds affiliated to the Tunisian Guarantee Company and developing appropriate mechanisms to strengthen SME loans guarantee system. With regard to enhancing financial inclusion through improving SMEs’ access to finance and financial services, it aimed at increasing access to finance and financial services for all segments of society, especially youth, women, entrepreneurs and vulnerable groups, in remote areas, to achieve social development goals, accelerate inclusive and sustainable economic growth, and create job opportunities. As for the pillar of strengthening the role of the Microfinance Supervision Authority on associations and microfinance institutions, it aimed at strengthening governance frameworks in microfinance institutions, ensuring the implementation of transparency standards related to SMEs, protecting consumers of financial services and providing them with products and services appropriate to their needs and ability to pay.

The Arab Monetary Fund (AMF), pursuant to the Board of Executive Directors’ resolution number (1) of 2018, extended a Loan to the Republic of Sudan with the amount of AAD 22.8 million (about US$ 96 million), to be withdrawn in two tranches, representing 100 per cent of its share in the Fund’s paid-up capital in convertible currencies, under the framework of the Facility of Supporting Conducive Environment for Small and Medium Enterprises (SMEs). The loan supported the Sudanese Government to continue its efforts to create a conducive environment for SMEs to play its role in accelerating inclusive and sustainable economic growth. The loan specifically supported the implementation of a program to enhance business environment for SMEs, covering the period (February 2018 - February 2019). The first tranche of the loan, with the amount of AAD 13.68 million, was withdrawn following signing of its agreement. The second tranche of the loan, with the amount of AAD 9.120 million, was withdrawn following Fund’s monitor to the implementation of the agreed program.

The program was centered around five pillars represented in strengthening the structure of legislation, laws, and regulatory frameworks, enhancing financial inclusion, developing the credit rating and information system, developing and strengthening capacities, and providing financial and tax incentives to SMEs.