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EU General conditions Conclusions of the External Review Mission (Nov. 2011):

EU General conditions Conclusions of the External Review Mission (Nov. 2011):. General conditions (1/3). Conclusions of the External Review Mission (Nov. 2011):

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EU General conditions Conclusions of the External Review Mission (Nov. 2011):

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  1. EU General conditionsConclusions of the External Review Mission (Nov. 2011):

  2. General conditions (1/3) Conclusions of the External Review Mission (Nov. 2011): General Condition 1: “Satisfactory progress in the implementation of Social Protection/Pension Strategies and National Health Strategies” has been achieved; However, serious concerns are raised in respect of the sustainability of the Pension Fund and absence of transparency in its financial operations; General Condition 2: “Stability oriented macroeconomic policy in place including debt sustainability” has been achieved, although the comment is made that significant fiscal risks are accumulating; General Condition 3: “Satisfactory implementation of the PFM reforms” has been complied with, although only because of the Government’s adoption of a new Action Plan in August 2011, against which this assessment was carried out ; CONCLUSION: GoT passes the review this time but the mission is pessimistic on the chances to pass the next external review mission

  3. General conditions (2/3) Conclusions of the External Review Mission (Nov. 2011): General Condition 4a: “The budget for the health, education and social protection sectors will be executed according to the annual Budget Law for FY2011 approved by the Parliament" provides for a mixed conclusion; General Condition 4b: “The allocations for health, education and social sectors in FY2012 and FY2013 will follow a positive trend”; The Minister of Finance has provided a letter [...] although this is discretionary for the President and its acceptance as compliance rests on a decision by the European Commission; General Condition 4c: “No arrears on pension expenditure in FY 2011-2012”; the real extent of late a payment being made is difficult to discern without auditing individual payment records; CONCLUSION: indicators of conditions 4a and 4b are vague and need better definition; condition 4c is difficult if not impossible to measure

  4. General conditions (3/3) Next External Review Mission (May-June 2012) Next External Review Mission (May-June 2012) • General condition 1: Define frequency of measurement of progress on national strategies (yearly JARs?); define transparency criteria; • General condition 2: Define role of MoF; role of IMF; • General condition 3: Specify satisfactory implementation of PFM Action Plan; • General condition 4a: Define satisfactory Budget Execution rates for 6 months, 9 months, one year; • General condition 4b: Define positive progress and measures if temporary setbacks; • General condition 4c: Choose one definition of “arrears” (30 days, 40 days?) which is measurable/measured (IMF ?)

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