Beirut, Lebanon March 13, 2014

1. Economic IMC: Ministry of Finance Commitment Document Beirut, Lebanon March 13, 2014

2. Ministry of Finance Commitment Document • The Minister of Finance commits to the timely implementation of the following programs: • Program FIN-001: Rationalize expenditures (Aug. 2001 – Dec. 2011): the program objectives are to reduce waste and increase the effectiveness and productivity of spending, and to rationalize non-interest expenditures, contain the wage bill, and reform public sector enterprises • Program FIN-002: Enhance revenues (Oct. 2006 – Dec. 2011): the program objectives are to undertake revenue enhancing measures through improving tax structure and collection, guided by the need to minimize distortions and enhancing equity and fairness in the distribution of tax burden and enhance revenue collection from government properties • Program FIN-003: Undertake budget and financial management reform (Oct. 2006 – Dec. 2011): the program objectives are to develop a modern Budget System Law (BSL) which will be the anchor for all reform measures, enhance public expenditure management with more accountability and transparency, enhance institutional capacity, improve regulatory framework, and improve fiscal reporting • Program FIN-004: Undertake revenue management and administrative reform toward a function-based structure (Jan. 2006 – Dec. 2010): the program objectives are to improve formulation and implementation of fiscal policy, enhance equity and fairness in the distribution of the tax burden, implement good governance, undertake structural measures aimed at modernizing the revenue administration towards function based structure with full strong headquarters, fully automated business processes, risk based compliance programs and skilled and professional staff • Program FIN-005: Strengthen Debt Management with the aim to reduce the costs and risks of the government's debt portfolio (Jul. 2003 – Dec. 2011): the program objectives are to strengthen debt management with the aim to reduce the costs and risks of the government's debt portfolio

3. Ministry of Finance Commitment Document … (Cont’d) • Program FIN-006: Reform capital markets (Jan. 2008 – Dec. 2008): the program objectives are to develop Lebanon's capital markets • Program FIN-007: Improve the business environment (Apr. 2005 – Dec. 2011): the program objectives are to improve the business environment and reduce the cost of doing business in Lebanon, improve the competitiveness and employment creation, and encourage the recovery of the private sector in the aftermath of the Israeli war • Program FIN-008: Facilitate trade (Jan. 2008 – Dec. 2008): the program objectives are to facilitate imports, lower related costs, and automate operations at Beirut port Note: Detailed supporting documents are attached in the appendix Signature: Signature: H.E. PRESIDENT OF COUNCIL OF MINISTERS H.E. MINISTER OF FINANCE Date: Date: 2007 2007

4. Ministry of Finance – Program Charter 1 Program Title Rationalize expenditures Program Owner Minister of Finance Program Number FIN-001 Key Stakeholders Ministry of Energy and Water, CDR, Higher Relief Council, PCM Program Objectives/Description High Level Work Plan • Reduce waste and increase the effectiveness and productivity of spending • Rationalize non-interest expenditures, containing the wage bill, and reforming public sector enterprises, especially EDL. • Revise the salary and benefits structure for some public officials • Extend the working hours in the public sector from 32 hours a week to at least 36 • Reduce travel and communication expenses • Work on phasing out the “Council of the South” and the “Fund for the Displaced” • Contain the wage bill in the medium term through reducing the size of the public sector by attrition and by limited hiring • Reduce the budgetary cash transfer to EDL through adoption of the Power Sector Reform Plan. • Maintain the quality of infrastructure and invest in high-value projects while reducing the cost of funding. Key Risks • Requires Parliament approval for some measures • Security issues (potential increase in military spending) • Any further increase in fuel prices Milestones • (i) Wages and salary dynamics controlled by restricting recruitment to essential position; • (ii) Decision not to replace one for one civil servants that retire and replaced by more junior, less expensive staff; • (iii) Transfer of $500 million from 2007 to 2009 to the COS & DF after which they are assumed to be closed Requirements Description Technical Assistance Budget • Available Budget: - • Complementary Budget: - • TOTAL BUDGET: - KPIs Target • Level of spending versus EPCA target • Primary expenditures to meet EPCA targets for all quarters Ministry Team

5. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Ministry of Finance – Paris III Program 1 Initiatives List of Programs and Initiatives

6. Ministry of Finance – Program Charter 2 Program Title Enhance revenues Program Owner Minister of Finance Program Number FIN-002 Key Stakeholders Program Objectives/Description High Level Work Plan • Settle the seashore violation issue and start collecting rent on infringed properties • Lift the cap on domestic car gasoline prices • Enhance revenue collection from public properties namely “Casino du Liban” • Increase the VAT rate from 10% to 12% in 2008 and from 12% to 15% in 2010 • Collect the 5 percentage points additional VAT on water, electricity and telecom • Adopt monthly VAT filing for large corporations for improved cash management • Increase the tax on interest income from 5 percent to 7 percent • Introduce the Global Income Tax • Strengthen the Built Property Tax administration • Undertake revenue enhancing measures through improving tax structure and collection, guided by the need to minimize distortions and enhancing equity and fairness in the distribution of tax burden and enhance revenue collection from government properties Key Risks • Council of Ministers’ decisions and Parliament’s approval Milestones • (i) Settlement of seashore violations • (ii) Uncapping mechanism proposed and approved by Council of Ministers and hence came into effect • (iii) VAT increased from 10% to 12% in 2008 and then from 12% to 15% in 2010 • (iv) Interest income increased from 5 % to 7% • (v) GIT introduced • (vi) Comprehensive database on build properties built and updated Requirements Description Technical Assistance Budget • Available Budget: - • Complementary Budget: - • TOTAL BUDGET: - KPIs Target • Tax and non-tax revenues versus EPCA projections • Revenues to meet EPCA targets for all quarters Ministry Team

7. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Ministry of Finance – Paris III Program 2 Initiatives List of Programs and Initiatives

8. Ministry of Finance – Program Charter 3 Program Title Undertake budget and financial management reform Program Owner Minister of Finance Program Number FIN-003 Key Stakeholders Spending agencies, Concerned ministries Program Objectives/Description High Level Work Plan • Reform the budget preparation process and linking it to Macro fiscal framework • Increase budget coverage • Reform Treasury Operations • Prepare a “Budget System Law” to encompass all the reform measures • Adopt fiscal accountability law • Build capacity within the different directorates involved in the expenditure cycle • Develop a modern Budget System Law (BSL) which will be the anchor for all reform measures; • Enhance public expenditure management with more accountability and transparency • Enhance institutional capacity • Improve regulatory framework • Improve fiscal reporting Key Risks Milestones • Requires Parliament approval for some measures • Political risks • Cooperation of spending agencies • (i) Top-down approach to reform the budget preparation process adopted (ii) Budget laws issued with medium term expenditure frameworks (MTEF) attached • (iii) Budget ceilings set per ministry in accordance with sector • priorities • (iv) Budget coverage extended and CDR & other extra budgetary • spending consolidated within the budget • (v) Performance budgeting introduced Requirements Description Technical Assistance KPIs Target • Budget preparation linked to a medium term expenditure framework (MTEF) • Number of line ministries adopting new budget approach • Budget that reflects sector priorities and done within 3 year-framework, calculates cost of producing outcomes, and solves issues of appropriations and carryovers, complementary period and treasury advances • All line ministries Budget • Available Budget: - • Complementary Budget: - • TOTAL BUDGET: - Ministry Team

9. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Ministry of Finance – Paris III Program 3 Initiatives List of Programs and Initiatives

10. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Ministry of Finance – Paris III Program 3 Initiatives List of Programs and Initiatives

11. Ministry of Finance – Program Charter 4 Program Title Undertake revenue mgt and administrative reform toward a function-based structure Program Owner Minister of Finance Program Number FIN-004 Key Stakeholders Program Objectives/Description High Level Work Plan • Reorganize regional tax offices along function based operations • Establish taxpayer services in satellite offices • Introduce the "Tax Procedure Code" that unifies and harmonizes the various tax procedures • Finalize the draft law for introducing a Global Income Tax (GIT) to replace the current schedular income tax system , and work in progress for the development of related regulations and procedures • Introduce electronic registration of taxpayers • Put in place a new audit strategy based on risk selection criteria, new audit techniques and procedures, and develop an audit manual • Integrate built property data systems between Land registry at Cadastre and Built Property Administration • Provide tax incentives for affected enterprises • Improve formulation and implementation of fiscal policy • Enhance equity and fairness in the distribution of the tax burden • Implement good governance • Undertake Structural measures aimed at modernizing the revenue administration towards function based structure with full strong headquarters, fully automated business processes, risk based compliance programs and skilled and professional staff Key Risks • Political environment Milestones • Regional tax offices reorganized • Taxpayer services in satellite offices established • Tax Procedure Code introduced • Draft law for introducing the Global Income Tax finalized • E-registration introduced • New audit strategy developed • Comprehensive database on built properties developed and updated • Tax incentives for affected enterprises provided Requirements Description Technical Assistance • Tax reform project team-UNDP Budget • Available Budget: - • Complementary Budget: - • TOTAL BUDGET: - KPIs Target Ministry Team • All the Revenue Directorate employees • Higher compliance rate • Improved services • Increased revenues collection • Increased • Improved • Increased

12. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Ministry of Finance – Paris III Program 4 Initiatives List of Programs and Initiatives

13. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Ministry of Finance – Paris III Program 4 Initiatives List of Programs and Initiatives

14. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Ministry of Finance – Paris III Program 4 Initiatives List of Programs and Initiatives

15. Ministry of Finance – Program Charter 5 Program Title Strengthen debt management Program Owner Minister of Finance Program Number FIN-005 Key Stakeholders BDL, Parliament Program Objectives/Description High Level Work Plan • Improve debt reporting and transparency and publish quarterly debt publications • Formalize and enhance coordination between MoF and BDL by creating a “Higher Council for debt Management”” • Enact the currently existing draft law in Parliament to modernize debt management • Develop a formal debt management strategy • Develop secondary market liquidity in LL by introducing longer maturity instruments • Star modifying T-bill auction frequency and procedures • Strengthen Debt Management with the aim to reduce the costs and risks of the government's debt portfolio Key Risks • Economic environment risk • Political risk • Institutional risk Milestones • (i) Specialized Regular Debt Reporting that supplements Public Finance • Monitor and provides timely detailed debt information • (ii) Creation of a “Higher Council for Debt Management” • (iii) Debt Management Strategy Requirements Description Technical Assistance KPIs Target Budget • Available Budget: - • Complementary Budget: - • TOTAL BUDGET: - • Improved debt reporting • Creation of “Higher Council for Debt Management. • Background analysis for the formal debt management strategy • Report on debt and debt markets published on quarterly base • Higher Council for Debt Management created • Debt management strategy completed Ministry Team

16. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Ministry of Finance – Paris III Program 5 Initiatives List of Programs and Initiatives

17. Ministry of Finance – Program Charter 6 Program Title Reform capital markets Program Owner Minister of Finance Program Number FIN-006 Key Stakeholders BSE, Parliament Program Objectives/Description High Level Work Plan • Enhance the functioning of BSE, launch a new website for the BSE and introduce E-trading • Enhance trading of share of unlisted companies on BSE’s trading floor • Setup the Capital Market Authority organizational structure • Issue detailed regulations under the “Capital Markets” law by the Capital Markets authority • Set up the “Capital Markets Commission” including specialized financial court • Enact the following draft laws: The “Dematerialization of Securities” law, the “Securities Lending” law and the “Insider Trading” law and the “capital Markets” law. • Transfer regulatory responsibilities for the BSE from MoF to capital markets commission • Transfer regulatory responsibility for listing securities on stock exchanges from the BSE to capital markets commission • Address aspects of policy and Capital Market development such as privatization of the BSE • Develop an Official Stock Market Index • Develop Lebanon's capital markets Key Risks • Political risk • Institutional risk Requirements Description Technical Assistance Milestones • Passage of Capital Markets Law and other laws listed above by Parliament • Setting up the Capital Markets Authority • Drafting the Regulations for the Capital Markets Authority Budget • Available Budget: - • Complementary Budget: - • TOTAL BUDGET: - KPIs Target Ministry Team • Passage of Capital Markets Law • Completed (Dec. 2007)

18. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Ministry of Finance – Paris III Program 6 Initiatives List of Programs and Initiatives

19. Ministry of Finance – Program Charter 7 Program Title Improve the business environment Program Owner Minister of Finance Program Number FIN-007 Key Stakeholders Ministry of Economy and Trade, Kafalat, BDL Program Objectives/Description High Level Work Plan • Remove mandatory stamping of books and require international accounting standards • Expand the role of Kafalat to encompass more economic sectors and raise the ceiling of guaranteed loans to LL 600 million • Promote the creation of venture capital funds to facilitate financing • Improve the business environment and reduce the cost of doing business in Lebanon • Improve the competitiveness and creating employment; • Encourage the recovery of the private sector in the aftermath of the Israeli war Key Risks Milestones • (i) Measures to facilitate access to Kafalat loans identified • (ii) Ceiling of guaranteed loan raised to LL 600 million • (iii) Previous loans for SMEs affected by the war rescheduled and additional grace period granted • (iv) Implementation of capital re-injection to replace damaged equipment • (v) BADER investments initiated Requirements Description Technical Assistance KPIs Target • Relation facilitation between MoF and business community • Laws and decisions clarifying fiscal procedures set and enacted Budget • Available Budget: - • Complementary Budget: - • TOTAL BUDGET: - Ministry Team

20. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Ministry of Finance – Paris III Program 7 Initiatives List of Programs and Initiatives

21. Ministry of Finance – Program Charter 8 Program Title Facilitate trade Program Owner Minister of Finance Program Number FIN-008 Key Stakeholders Ministry of Economy and Trade Program Objectives/Description High Level Work Plan • Expedite the clearance of imports, by increasing automation at the port, and lowering the related cost. A one-stop-shop at the Port of Beirut will provide better services to trade and export • Facilitate imports • Automate operations at Beirut port • Lower import costs Key Risks Milestones • Revised import processes implemented • One stop shop created at the Port of Beirut Requirements Description Technical Assistance KPIs Target Budget • Available Budget: - • Complementary Budget: - • TOTAL BUDGET: - • N/A • N/A Ministry Team

22. XXX Natural Owner IMPLEMENTATION: S: Short term M: Medium Term L: Long Term Ministry of Finance – Paris III Program 8 Initiatives List of Programs and Initiatives

23. Appendix Detailed Work Plan KPIs

24. Appendix Detailed Work Plan KPIs

25. Rationalize expenditures – KPI FIN 001-01 Formula Parameters Definition • Current primary expenditures • Capital expenditures • Treasury Expenditures Program Name • Rationalize expenditures KPI Code • KPI FIN-001-01 Data Source • MOF KPI Type • Output Reporting Frequency • Quarterly KPI Name • Level of spending versus EPCA target Baseline • EPCA projections (dated March 16th, 2007) KPI Description Target • Primary expenditures to meet EPCA targets for all quarters • Wages and salaries frozen in real terms • Reduction of the size of public sector by attrition • Savings on transportation allowance • Decline in Government transfer to EDL as a result of power sector reform plan • Planned phasing out of some extra-budgetary funds (Namely: COS & DF) Formula • EPCA projections- actual spending≈0 Unit • LBP billion

26. Enhance revenues – KPI FIN 002-01 Formula Parameters Definition • Tax revenues • Non-tax revenues Program Name • Enhance revenues KPI Code • KPI FIN-002-01 KPI Type • Output Data Source • MOF KPI Name • Tax and non-tax revenues versus EPCA projections KPI Description Reporting Frequency • Quarterly Formula • Actual revenues- EPCA projections≈0 Baseline • EPCA projections (dated March 16th,2007) Unit • LBP billion Target • Revenues to meet EPCA targets for all quarters

27. Undertake budget and financial management reform – KPI FIN 003-01 Formula Parameters Definition • N/A Program Name • Undertake budget and financial management reform KPI Code • KPI FIN-003-01 Data Source • MOF • Line ministries KPI Type • Outcome Reporting Frequency • Quarterly KPI Name • Budget preparation linked to a medium term expenditure framework (MTEF) Baseline • Budgets currently prepared on a incremental basis, within 1 year framework and with little planning KPI Description Formula • N/A Target • Budget that reflects sector priorities and done within 3 year-framework • Budget that calculates the true cost of producing outcomes • Budget that solves the issue of appropriations and carryovers, complementary period and treasury advances Unit • Completed • In-progress • Delayed

28. Undertake budget and financial management reform – KPI FIN 003-02 Formula Parameters Definition • N/A Program Name • Undertake budget and financial management reform KPI Code • KPI FIN-003-02 KPI Type • Outcome Data Source • MOF • Line ministries KPI Name • Number of line ministries adopting new budget approach where budget preparation is linked to medium term expenditure framework (MTEF) Reporting Frequency • Quarterly Baseline • Ministries prepare their budgets on an incremental base and within 1 year framework KPI Description Formula • N/A • Line ministries preparing their budgets to reflect sector priorities and within 3 year-framework • Strategies and policies of the spending agencies translated into financial framework Target Unit • Completed • In-progress • Delayed

29. Undertake revenue management and administrative reform toward a function-based structure – KPI FIN-004-01 Formula Parameters Definition • “Number of filers” is the number of taxpayers who filed a tax return • “Number of taxpayers required to file” is the number of taxpayers who are required to submit a tax return • “Number of payers” is the total number of taxpayers who paid their tax due liability • “Number of non payers” is the number of taxpayers who did not pay their tax due liability • “Number of filers who declared an amount >0” is the total number of taxpayers who have a tax due liability • “Number of non filers” is the number of taxpayers who did not file their tax return • “Number of registered taxpayers” is the total number of registered taxpayers in the Taxroll • “Number of taxpayers having discrepancies ” is the total number of taxpayers having inaccurate information in their tax returns Program Name • Undertake revenue mgmt and administrative reform toward a function-based structure KPI Code • KPI FIN-004-01 KPI Type • Outcome KPI Name • Higher compliance rate KPI Description • “Compliance rate” enables the MoF to evaluate the effectiveness of its new strategies and reorganization measures Formula • Voluntary compliance rate • (Number of filers *100 ) / (Number of taxpayers required to file) per fiscal period • (Number of payers *100)/(Number of filers who declared an amount >0) per fiscal period • Growth rate of the number of registered taxpayers per fiscal period = [(Number of registered taxpayers for fiscal period n) -(Number of registered taxpayers for fiscal period n-1)]*100/ (Number of registered taxpayers for fiscal period n-1) • Enforcement • Number of filers after follow-up *100 ) / (Total number of non filers before follow-up) per fiscal period • (Number of payers after follow-up *100)/(Number of non payers before follow-up) per fiscal period • Decreasing rate of discrepancies= • [(Number of taxpayers having discrepancies for fiscal period n-1) - (Number of taxpayers having discrepancies for fiscal period n)]*100/ (Number of taxpayers having discrepancies for fiscal period n-1) Data Source • SIGTAS: the system of the Ministry of Finance Reporting Frequency • Annually • Quarterly Baseline • Voluntary compliance rate • % of filers=95% (VAT Q4 2006) • % of payers=96% (VAT Q4 2006) • Growth rate of the nb of registered taxpayers=2.5% (VAT Q3-Q4 2006) • Enforcement • % of filers after follow-up=4.5% (VAT Q4 2006) • % of payers after follow-up=36% (VAT Q4 2005) • Decreasing rate of discrepancies= 34% (VAT Q1-Q2 2006) Unit • % Target • 2007: xx % • 2008: xx % • 2009: xx %

30. Undertake revenue management and administrative reform toward a function-based structure – KPI FIN-004-02 Program Name • Undertake revenue mgmt and administrative reform toward a function-based structure Data Source • Ministry of Finance • INFOPRO Reporting Frequency • Annually • Periodically KPI Code • KPI FIN-004-02 KPI Type • Output Baseline • 2006: Transactions’ processing time = 3 days (Starting business – acquittance…) • 2006: Inquiries’ processing time = 1 day • April 2007: satisfied taxpayers=40% • 2006: 0 % taxpayers registered in the e-services KPI Name • Improved services KPI Description • “Improved services” allows the MoF to evaluate the efficiency of the services provided by the tax administration Formula • Transactions’ processing time • Inquiries’ processing time • Ratio of satisfied taxpayers = Number of taxpayers satisfied/population • (Number of registered taxpayers in the e-services*100) / Total number of registered taxpayers Target • Dec. 2007 • Transactions’ processing time = x days • Inquiries’ processing time = x days • x% satisfied taxpayers • x% taxpayers registered in the e-services • Dec. 2008 • Transactions’ processing time = x days • Inquiries’ processing time = x days • x % satisfied taxpayers • x % taxpayers registered in the e-services • Dec. 2009 • Transactions’ processing time = x days • Inquiries’ processing time = x days • x % satisfied taxpayers • x % taxpayers registered in the e-services Unit • Days • % Formula Parameters Definition • “Transactions’ processing time” is the time needed by the tax administration to accomplish any transaction • “Inquiries’ processing time” is the time needed by the tax administration to respond to inquiry • “Taxpayers satisfied ” are the taxpayers pleased with the tax adm. services according to surveys undertaken periodically • population : sample taken from the taxpayers requesting services • “Number of registered taxpayers in the e-services” is the total number of registrations in e-services

31. Baseline • Growth rate of the amount recovered from the tax returns=8% (VAT Q3-Q4 2006) • Growth rate of the amount recovered from audit activities per fiscal period= 54% (VAT 2005-2006) • Decreasing rate of arrears = 18% (VAT 2006) Target • 2007:x% • 2008:x% • 2009:x% Undertake revenue management and administrative reform toward a function-based structure – KPI FIN-004-03 Formula Parameters Definition • “Amount recovered from the tax returns” is the total amount of money collected from taxpayers filing their tax returns • “Amount recovered from audit activities ” is the total amount collected following a tax audit • “Amount of arrears recovered” is the total amount collected of tax liabilities that was not paid by the deadline Program Name • Undertake revenue mgmt and administrative reform toward a function-based structure KPI Code • KPI FIN-004-03 KPI Type • Outcome KPI Name • Increased revenues collection Data Source • SIGTAS: the system of the Ministry of Finance KPI Description • “Increased revenues collection” enables the MoF to evaluate the effectiveness of its new strategies and reorganization measures Reporting Frequency • Annually • Quarterly Formula • Growth rate of the amount recovered from the tax returns per fiscal period = [(amount recovered from the tax returns for fiscal period n) -(amount recovered from the tax returns for fiscal period n-1)]*100/ (amount recovered from the tax returns for fiscal period n-1) • Growth rate of the amount recovered from audit activities per fiscal period = [(amount recovered from audit activities for fiscal period n) -(amount recovered from audit activities for fiscal period n-1)]*100/ (amount recovered from audit activities for fiscal period n-1) • Decreasing rate of arrears per fiscal period= • [(Amount of arrears recovered) *100 / (total arrears at the beginning of the fiscal period) per fiscal period Unit • %

32. Strengthen debt management – KPI FIN-005-01 Formula Parameters Definition Program Name • Strengthen debt management KPI Code • KPI FIN-005-01 KPI Type • Output: Quarterly and monthly debt reports Data Source • MOF KPI Name • Improve debt reporting Reporting Frequency • Quarterly, then monthly Baseline • Q II 2007 report on debt and debt markets being finalized and to be published by end of August 2007. KPI Description • Publish, first on a quarterly basis, then on a monthly basis, a report on Lebanon debt and debt markets Formula Target • Report on debt and debt markets published on quarterly base Unit • Completed • In progress • Delayed

33. Strengthen debt management – KPI FIN-005-02 Formula Parameters Definition Program Name • Strengthen debt management KPI Code • KPI FIN-005-02 KPI Type • Outcome Data Source • MOF • BDL KPI Name • Creation of “Higher Council for Debt Management” Reporting Frequency • Annually Baseline • Draft law to establish integrated debt management unit at MOF and to create Higher Council for Debt Management to formalize and enhance coordination between MOF & BDL awaits parliamentary approval. KPI Description • Prepare for the creation of the “Higher Council for Debt Management” Formula Target • Higher Council for Debt Management created Unit • Meetings among stakeholders

34. Strengthen debt management – KPI FIN-005-03 Formula Parameters Definition Program Name • Strengthen debt management KPI Code • KPI FIN-005-03 KPI Type • Outcome Data Source • MOF • Parliament KPI Name • Background analysis for a formal debt management strategy Reporting Frequency • Annually Baseline • Preparations for developing a formal debt management strategy have been completed with the circulation of a quarterly internal financing strategy report. KPI Description • Conduct background analysis for preparation of a formal debt management strategy paper • Develop a formal debt strategy Formula Target • Debt management strategy completed Unit • Completed • In progress • Delayed

35. Reform Capital Markets – KPI FIN-006-01 Formula Parameters Definition Program Name • Reform capital markets KPI Code • KPI FIN-006-01 KPI Type • Output Data Source KPI Name • Passage of Capital Markets Law Reporting Frequency • Monthly Baseline • July 2007: Delayed KPI Description Formula Target • Capital market law passed (Completed by Dec. 2007) Unit • Completed • In progress • Delayed

36. Improve the business environment – KPI FIN-007-01 Formula Parameters Definition Program Name • Improve the business environment KPI Code • KPI FIN-007-01 KPI Type • Output Data Source • MOF • Business unions KPI Name • Relation facilitation between MoF and business community Reporting Frequency • Quarterly KPI Description • Clarify fiscal control procedures • Accelerate public payment for supplies • Improve declaration procedures • Review tax levels and procedures • Improve access to information Baseline • Need to have well defined fiscal procedures Formula Target • Laws and decisions clarifying fiscal procedures set and enacted Unit • Meetings with representatives of business unions, heads of departments at MOF • Meetings to prepare decisions, laws and procedures