CARIBBEAN REGIONAL TECHNICAL ASSISTANCE CENTRE

ANNUAL REPORT 2020 Caribbean Regional Technical Assistance Centre (CARTAC) Member Countries

Anguilla Antigua & Barbuda Aruba The Bahamas Barbados Belize Bermuda British Virgin Islands Cayman Islands Curaçao Dominica Grenada Guyana Haiti Jamaica Montserrat St. Kitts & Nevis St. Lucia Sint Maarten St. Vincent & the Grenadines Suriname Trinidad & Tobago Turks & Caicos Islands

CARTAC’s Donor Partners ABOUT CARTAC

CARTAC was established in November CARTAC provides technical assistance in five core areas: 2001 and is one of ten International • Public Finance Management: enhancing budget Monetary Fund (IMF) Regional execution, expenditure control, and revenue collection Technical Assistance Centres (RTACs). monitoring; reforming treasury systems and upgrading The Centre was created to help its cash and debt management procedures; modernizing of financial accounts and reporting; implementing GFS member countries strengthen human financial statistics classification; formulating modern and institutional capacity to design financial management legislation; overall strengthening and implement sound macroeconomic of human and institutional capacity within Ministries of policies that promote growth and reduce Finance and revenue collecting organizations. poverty. The priorities of CARTAC are • Tax/Customs Administration: undertaking assessments established by a Steering Committee of tax systems and assisting with the design and (SC) comprising of member countries, implementation of tax reforms; suggesting simplification of tax operations; assisting with the preparation of the donor partners and the IMF. The Centre legislative framework for tax and customs administration; is now in its fifth phase of operations assisting with the implementation of more effective compliance control tools for tax and customs legislation; proposing the adaptation of customs operations to meet international agreements.

• Financial Sector Supervision and Financial Stability: strengthening laws and regulations governing financial institutions and capital markets using harmonized approaches where possible; enhancing domestic and off-shore bank supervisory procedures in accordance with international best practices; strengthening the regulation and supervision of non-bank financial institutions, including insurance companies, credit unions and capital markets intermediaries; implementing international accounting standards for financial institutions and reporting issues; enhancing corporate governance standards and transparency regimes for the benefit of investors; assisting with the introduction of depositor protection mechanisms; assisting with the preparation and implementation of anti-money laundering/terrorism laws and procedures.

Annual Report 2020 | CARTAC | i • Economic and Financial Statistics: assisting with the improvement of the quality of macroeconomic statistics, including: national accounts and price indices, balance of payments and external debt statistics; establishing and maintaining underlying basic data collection; guiding the use of concepts and internationally accepted methodologies; developing compilation procedures, including data preparation, verification and computerization; assisting with the dissemination of data.

• Macroeconomic Programming: providing hands-on training in medium term macroeconomic projections of policy options. This includes training in forecasting GDP, prices, government revenue and expenditure and debt sustainability analysis. Training is also provided in developing the medium-term macroeconomic framework for policy analysis and for the annual budget preparation.

CARTAC has taken the lead in mainstreaming gender budgeting and assessing the impact of gender sensi- tive policies. A workstream in climate change and natural disaster resilience was launched in May 2019. The work- stream aims to help member countries develop policy frameworks that incorporate the risk and cost of natural disasters in macro frameworks and debt sustainability analysis; strengthen financial sector resilience and build capacity to access insurance and financial markets to manage disaster risks. Developing capacity to supervise cyber security risks and crypto currencies, strengthening the Anti-Money Laundering/Combatting the Financing of Terrorism (AML/CFT) frameworks to address the risk of with- drawal of correspondent banking; and assessing the impact of gender sensitive policies are also emerging challenges.

ii Annual Report 2020 | CARTAC Message from the Chairperson of the CARTAC Steering Committee

In 2018, one year into Phase V of the CARTAC funding cycle, it became apparent that the Centre was under- funded by 40 percent. In the absence of additional resources, CARTAC’s activities would have had to be Dr. Gobind Ganga severely curtailed. The spectre of the demise of a vitally Governor, Bank of Guyana important institution galvanized a collective effort and burden sharing by all stakeholders that has closed the funding gap to the current US$5.7 million or 6 percent As my term as Chairperson of the CARTAC of the working budget set out at the start of the phase. Steering Committee comes to an end, I would The four-pronged effort to reduce the funding gap like to reflect on the last three years during through increased contributions from existing partners, which many significant changes have been encourage new partners to support the region’s reform made and the Centre has dealt with several agenda, increase contributions by member countries and streamline the work of the centre has been successful. challenges while chalking up a formidable We wish to acknowledge the significant contributions of list of achievements. These challenges the Government of Canada, who provided an additional include the closure of the funding gap that CAN$7 million (US$5.3 million) most recently with resources threatened to derail CARTAC’s support to for public debt management; the United Kingdom’s Department for International Development (DFID) for an the region’s reform agenda, facilitated by the additional £2 million (US$2.5 million) to support a climate enhanced engagement by all stakeholders; resilience workstream; and the European Union (EU) for and more recently the response to the an additional €2 million (US$2.2 million) to be used for ongoing COVID-19 pandemic. The nature international tax issues. The Caribbean Development Bank (CDB) also facilitated US$3 million from a new of the response to these challenges gives partner, Mexico, in addition to its own contribution, and me confidence in the future of CARTAC the Government of the Netherlands made a first-time and its Steering Committee to continue contribution of €3 million (US$3.5 million). The Eastern delivering the level and quality of capacity Caribbean Central Bank (ECCB) also joined as a new donor development (CD) that would assist the region partner with a contribution of (US$0.2 million). Signaling the importance that the region attaches to CARTAC, to achieve its development goals, which is a most countries have also agreed to an increase in member prerequisite to improve social outcomes in contributions by an additional US$2 million in total. Caribbean societies.

Annual Report 2020 | CARTAC iii Despite the difficult financial situation, CARTAC frameworks should give priority to automatic continued to deliver high quality CD using innovative generation, dissemination and use of statistics to measures to deliver more with less. I would like to improve policy and business decisions. In this regard, commend the staff for their commitment to consistently they should incorporate systems to help member delivering above standard CD even in the face of limited states to strengthen institutional capacity, promote resources. The launch of the new workstream in climate regional harmonization, and improve the quality of the resilience in FY20, which cuts across all programs, national accounts, price and external sector statistics. is a significant achievement that provides guidance New digital platforms should facilitate the use of data for dealing with the current COVID-19 pandemic. from administrative records to generate statistics in Meanwhile, the PFM program continues to strengthen line with the CARTAC Advisers’ recommendation. core areas like budgeting, financial accountability and The Macroeconomic Program is assisting countries to transparency to meet international standards. At the strengthen macro frameworks incorporating climate same time, improving the monitoring of state-owned change and natural disasters, hone their forecasting enterprises to reduce the drain on public finances, fiscal techniques and analyze the effects of policy changes. risks reduction and promoting adoption of modern PFM legislation to enhance resilience have emerged as The widespread lockdowns and other measures to key PFM activities. With revenue mobilization as one of mitigate the transmission of the COVID-19 virus has given the main sustainable development goals, the revenue us a glimpse of what the future might look like. The very administration programs have continued to push the Tax commendable response of the staff has been facilitated Administration Diagnostic Assessment Tool (TADAT), by the work on resilience and efforts in recent years data analytics and risk management techniques to help to reduce cost, including online training and remote countries raise the efficiency of their administrations. delivery of TA. The work on post-natural-disaster business The reforms to help modernize revenue administration in continuity, post hurricane reviews of PFM systems, Guyana have placed that country in good stead to handle stress testing for natural disasters and incorporating the prospective boom from oil and non-oil sources; while them into macro frameworks and debt sustainability the reorganization of Belize’s tax administration as well analyses have all been extremely useful in crafting as continued efforts to enhance customs revenue and responses to the pandemic. Delivering TA remotely trade facilitation are also significant reform efforts. builds on the experience gained over the last two years. Going forward, this modality will be leveraged in the In the financial sector, new demands are emerging short-term to continue to provide CD services during in stemming the withdrawal of correspondent the pandemic, and over the medium-term will become banking relationships, regulation and supervision a standard part of how CARTAC delivers TA. There of crypto currencies and mitigation of cyber risks. is an old Chinese proverb that says, “May you live in However, we cannot allow complacency to erode the interesting times”. For me these last three years as Chair gains achieved in financial sector supervision and of the Steering Committee have been just that. I wish to stability which helped reduce some of the extreme thank all the partners, countries and CARTAC staff for financial sector vulnerabilities identified following your excellent cooperation and engagement, making the collapse of CLICO, even as a large unfinished my job an enjoyable one. I hope that you will extend agenda of reforms remains to be completed. The the same courtesies to the incoming Chair, Governor financial sector work will also focus on closing gaps in Timothy Antoine of the Eastern Caribbean Central Bank. the regulatory framework for the non-bank financial sector while trying to help countries to comply with international standards like Basel II/III and IFRS9.

While there has been slow and steady progress in strengthening statistical systems in the region there is still much work to be done to improve the quality and timeliness of economic statistics and forecasts to move the region towards evidence-based decision making. As we rethink business models in the aftermath of the COVID-19 pandemic, the design of e-government

iv Annual Report 2020 | CARTAC Introduction from the CARTAC Program Coordinator

Despite delays in recruitment, Tax Administration and PFM remained the largest programs reflecting fiscal challenges in a region with elevated public debt levels. Meanwhile, longstanding financial sector vulnerabilities and emerging concerns like the withdrawal of correspondent banking Wendell Samuel relationships, regulation of crypto currencies and supervision of cyber risks made financial sector programs important parts of the resource usage. The statistical programs FY2020 should have been the year when continue to make slow but steady progress in building a CARTAC returned to normal work program framework for evidence-based decision making in both the public and private sectors in the region. The development and budget mode, but the COVID-19 virus of medium-term strategic plans for strengthening real sector ensured that there was nothing normal statistics is finally beginning to pay off, but greater efforts about this year. Nevertheless, the level of are needed to keep the momentum going. Similarly, external capacity development activities was higher statistics are being brought up to international standards in the compilation of the balance of payments, IIP positions than FY2019 although significantly less than and external debt statistics. The successful launch of the planned. As the IMF suspended non-essential climate resilience workstream in FY2020 and the work on travel, the bulk of the last quarter of the incorporating natural disasters into macro frameworks financial year was devoted to responding to and debt sustainability analysis, stress testing for natural disasters and pandemics, post disaster business continuity the pandemic through the delivery of remote and post-hurricane PFM efficiency reviews have all found technical assistance (TA) where possible resonance in responding to the current COVID-19 pandemic. and reprioritizing workplans in anticipation The effects of COVID-19 have had a significant effect on of changes in country TA priorities, while CARTAC’s work program during the last quarter of FY2020 keeping our focus on the medium-term and expected to persist through the first half of FY2021. goals of strengthening fiscal and financial Accordingly, the work program for FY 2021 builds in systems, macro frameworks and statistical enough flexibility to respond to member countries’ change systems. Through all this, members of the in priorities depending on the severity of the pandemic. We expect that remote methods would be the preferred Steering Committee have remained engaged, modality for the delivery of TA during the first half of encouraging, supporting and pushing the the year. While these short-term changes would result in center to be the best it can be. We hear you some disruption of the ongoing workplans, many of the and we are responding. interventions are consistent with medium-term objectives.

Annual Report 2020 | CARTAC v For example, greater emphasis on business continuity in The April 2020 SC Meeting was to be held under the revenue administration and PFM systems is consistent with theme “CARTAC: Vision 2025” to brainstorm about the medium-term recommendations for these agencies. what CARTAC should look like in that year and beyond. In cases where there needs to be deviation from good The meeting had to be cancelled but we should take practice, like forbearance in the financial sector or in the opportunity afforded by the COVID-19 pandemic revenue administration to assist business to recover from to re-imagine the CARTAC business model in a post the effects of the pandemic, temporary measures should pandemic setting and identify the medium-term be lifted, and enforcement measures fully restored as opportunities and challenges it poses for sustainability. the crisis eases. Going forward, a thorough assessment We have administered a questionnaire for Financial of the effectiveness of the remote TA modality will be Secretaries and Central Banks to solicit their views undertaken with a view to determining its role as a on the likely demand for CD and delivery modalities permanent part of the CARTAC’s toolkit for TA delivery. going forward. These results together with those from the mid-term external evaluation already in progress In the FY2020 mid-year meeting held under the theme would be inputs for the Vision 2025 discussion. “The Results Based Management Framework: Improving Traction of CARTAC TA”, the Steering Committee provided Over the last three years, I have had the opportunity many useful suggestions for improving the implementation to serve the CARTAC SC comprising many officials of TA. CARTAC has held discussion with IMF mission teams from development partners and member countries to increase the integration between IMF surveillance who are truly dedicated to improving the lives of and CARTAC TA. This process will be enhanced with the people in the Caribbean region. The SC has helped to rollout of the IMF’s Capacity Development Management strengthen CARTAC’s work in critical areas like building and Administration Program (CDMAP), a software resilience to climate change and natural disasters, platform which would integrate all aspects of IMF TA strengthening the results-based management framework focused on the country. We are also in the process of and incorporating gender sensitivity. As I take my last identifying country focal points to coordinate TA across bow and exit stage right, I would like to say a sincere all sectors in member countries. We will begin with 2-3 thank you to the Steering Committee and dedicated pilots in FY2021. With the new website now operational, staff of CARTAC. It was my pleasure to serve. we are developing an outreach program to give more prominence to the stories of how CARTAC TA has contributed to improving economic and social outcomes in the region including video testimonials from training courses and stories of successful TA interventions.

vi Annual Report 2020 | CARTAC Acronyms

AML/CFT Anti-Money Laundering/Combating COA Chart of Accounts the Financing of Terrorism CPI Consumer Price Index BOP/IIP Balance of Payments/International Investment Position DFID United Kingdom Department for International Development BPM6 Balance of Payments and International Investment Position Manual DPM Design, Planning and Management

BTO Back to Office DTI Deposit Taking Institution

CAR Capital Adequacy Ratio ECCB Eastern Caribbean Central Bank

CARICOM Caribbean Community ECCU Eastern Caribbean Currency Union and Common Market ECDPG Eastern Caribbean CARTAC Caribbean Regional Technical Development Partners Group Assistance Centre ESS External Sector Statistics CBR Correspondent Banking Relationships FAD Fiscal Affairs Department CCLEC Caribbean Customs Law Enforcement Council FMC Financial Management in the Caribbean

CCPA Climate Change Policy Assessment FSI Financial Stability Indicators

CD Capacity Development FSR Financial Stability Report

CDB Caribbean Development Bank FSS Financial Sector Supervision

CD-MAP Capacity Development – Management FY Fiscal Year and Administration Program GDP Gross Domestic Product CD-PORT Capacity Development – Projects, Output and Results Tracking GST Goods and Services Tax

Annual Report 2020 | CARTAC ACRONYMS | vii ICD Institute for Capacity Development (IMF) RTAC Regional Technical Assistance Centre

IDB Inter-American Development Bank SC Steering Committee

IMF International Monetary Fund SIDS Small Island Developing States

LMTO Large and Medium Taxpayers Office SNA System of National Accounts

LTO Large Taxpayers Office SOE(s) State Owned Enterprises

MCM Monetary and Capital STA Statistics Department (IMF) Markets Department SUT Supply Use Tables MoF Ministry of Finance TA Technical Assistance MPU Macroeconomic Policy Unit TADAT Tax Administration Diagnostic MTBF Medium-Term Budgetary Framework Assessment Tool

NPLs Non-Performing Loans VES Visitor Expenditure Survey

OECS Organization of Eastern Caribbean States WHD Western Hemisphere Department

PFM Public Financial Management

PRASC Project for Regional Advancement of Statistics in the Caribbean

RBS Risk Based Supervision

RFSR Regional Financial Stability Report

RPD Resource Person Day

RSS Real Sector Statistics

viii | ACRONYMS Annual Report 2020 | CARTAC Contents

i 1 7 About CARTAC Section I Section II Strategic Issues Report on the FY2020 Program

iii Message from the Chairperson of 2 Year Three of Phase V 8 Recent Developments the CARTAC Steering Committee and Challenges Ahead 2 Fundraising 10 Overview of FY2020 3 Development Activities and Results v Partner Coordination Introduction from the CARTAC Program Coordinator 3 Results Based Management

4 Risks and Risk Management

vii 6 Communications and Visibility Acronyms 6 Cost-Effectiveness

Annual Report 2020 | CARTAC CONTENTS | ix 13 45 63 Section III Section IV Annexes CARTAC FY2020 Program Work Program Implementation and Results for FY2021

14 Macroeconomic Program 46 Work Program 64 Annex I. overview for FY2021 Statement of Financial 16 Public Financial Management Contributions 49 Macroeconomic Tax Administration 19 Program 66 Annex II CARTAC Strategic Logframe 23 Customs Administration 50 Public Financial Management 70 Annex III 27 Financial Stability 52 Tax Administration CARTAC Results 30 Financial Sector Supervision 54 Customs Administration Based Management (RBM) Logframe 33 Real Sector Statistics 56 Financial Stability 77 Annex IV 36 External Sector Statistics 57 Financial Sector Supervision CARTAC: List of Missions, FY2020 41 CARTAC IN ACTION 58 Real Sector Statistics 87 Annex V 59 External Sector Statistics CARTAC: Seminars and Workshops, FY2020

89 Annex VI CARTAC: Technical Assistance Reports

92 Annex VII CARTAC: Planned TA 61 by Country and Programme (RPDs) Section V Looking ahead 93 Annex VIII CARTAC: Key Economic Indicators 62 Budget Outturn and Projections 95 Annex IX CARTAC Staff

x | CONTENTS Annual Report 2020 | CARTAC Section I Strategic Issues

Annual Report 2020 | CARTAC 1 Year Three of Phase V CARTAC continues to work towards the reduction of public debt to improve member. However, execution was increasing the impact and efficiency of fiscal sustainability and facilitate stalled towards the end of the fiscal Capacity Development to its member much needed public investment; year due to travel restrictions as a countries. As the Centre moves beyond greater resilience to natural disasters; result of the COVID-19 pandemic. the midpoint of phase V, we can point gender equality; and a strong, An ongoing mid-term evaluation of to a plethora of achievements made well-regulated financial system. the CARTAC program will examine over the years, but we must remain the Centre’s impact over the years. vigilant as we continue to tackle With an improved financial position The findings will provide guidance on an ambitious unfinished agenda. at the start of FY2020, the work CARTAC’s future in the provision of CD program returned to normal levels. which may come at an opportune time The focus of phase V will continue Climate resilience activities were as we adapt to best suit the needs of to be the provision of CD to assist embedded in all sector programs and member countries given the current member countries to achieve the all member countries were engaged environment of uncertainty amidst following key policy objectives throughout the fiscal year including recovery from the COVID–19 crisis. - enhanced inclusive growth; Sint Maarten, CARTAC’s newest Fundraising This financial year commenced on an Program Document budget of US$69.5 far, cash contributions of US$43.9 improved financial footing since the million, the funding gap now stands million have been received with a commitment from member countries at US$5.7 million compared to US$9 further US$12.5 million outstanding. and development partners to increase million in FY2019. In FY2020, there Based on the current expected cash their contributions in FY2019. To date, was an increased contribution from flows and projected expenditure the total committed resources amount Canada of CAD$2 million for a new path, the liquidity position remains to US$63.8 million. Given the Phase V Debt Management program. Thus positive up until 2022 (Figure 1).

2 | SECTION I: Strategic Issues Annual Report 2020 | CARTAC Figure 1. CARTAC: Projections of Finances

Figure 1. CARTAC: Projections of Finances

70 PROJECTION Inflows Outflows Balance 60

50

40

30 Millions of U.S. Dollars

20

10

0.0

FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

(10) Source: IMF’s Institute for Capacity Development (ICD) Development Partner Coordination The development partners remain During the SC meeting held in meets periodically in Barbados committed to the strengthening November 2019, the development with participation by a wider group of the institutional capacities of partners acknowledged the including all active UN agencies in CARTAC member countries. contribution that CARTAC has made the region, USAID, the World Bank, They not only provide financial in the region over the years. and various embassy representatives support but are also critical in They encouraged the importance beyond traditional partners, such steering the CD agenda. The work of better tracking and reporting as Cuba, New Zealand and Japan. on climate resilience funded by of results to properly measure CARTAC also facilitates development DFID started in earnest in FY2020 CARTAC’s impact. The partners also partner briefings by IMF mission and the Government of Canada endorsed the recommendations teams when they are in or passing pledged additional funding for to improve traction of TA and through Barbados. The PFM the establishment of a new debt the implementation of reforms Committee that provided a forum management program. Donor in member countries. for the discussions and exchange of partners are also committed to information on PFM-related issues provide additional support in Other platforms for information among partners in Barbados did light of the COVID-19 crisis. sharing include the UN-hosted not meet in FY2020. Meetings of Eastern Caribbean Development this very important forum should be Partners Group (ECDPG) that reconvened as early as possible. Results Based Management The use of RBM is evolving at for all the stakeholders involved This framework is then monitored CARTAC. The RBM governance in capacity development. throughout the life of the project framework is currently being reviewed with frequent engagement with the to ensure consistency of approach At the onset of a project, CARTAC authorities on the performance of across all programs and estab- develops a logical framework with outcomes and milestones. During lishes clear roles and responsibilities the country authorities to guarantee FY2020, 40.0 per cent of milestones there is ownership of outcomes.

Annual Report 2020 | CARTAC SECTION I: Strategic Issues | 3 Figure 2. Milestones Performance by Program in FY2020

Not Achieved Partially Achieved Largely achieved Fully Achieved

RSS

MAC

ESS

TAX

PFM

Fin. Stab.

Customs

FSS.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

were fully achieved and 56.0 percent The current application used for The IMF’s Institute for Capacity were largely and partially achieved. monitoring RBM (CD-PORT) is being Development (ICD) continues to 4.0 percent of milestones were not upgraded to a more sophisticated support CARTAC in implementing RBM achieved. The results of the milestones system (CD-MAP) which will and hosts periodic training sessions performance by program during incorporate the new RBM governance and a monthly call with all the RTACs to FY2020 is shown in figure 2 above. framework and will also provide deliberate on programme management an integrated framework for the issues confronted by the centres. management and delivery of CD.

Risks and Risk Management A major risk which impacted • Weak human resource management to data requests; insufficient the FY2020 work programme - Skills mismatches for many collaborative efforts amongst and may affect the execution functions; the inability to attract financial regulatory authorities to of activities into the near to and retain quality staff; delays in safeguard regional financial stability; medium term is the COVID-19 filling key positions; prevalence of low priority attached to upgrading pandemic and the potential staff working on a range of tasks IT infrastructure and the reviewing of lingering effects of this crisis. not related to their core mandates. legacy business operations. CARTAC has managed this - risk by engaging the countries • Weak collaboration and • Exposure to exogenous shocks Natural disasters and pandemics. virtually and will work flexibly commitment to reforms - While there is some understanding to adapt to the needs of its Delays in passing or amending of the risks attached to the impact of members. Other fundamental key legislation; delays or refusals natural disasters, this is less so for the risks which exist include: to publish key macro-critical information; limited data availability impact of pandemics. and responsiveness of authorities

4 | SECTION I: Strategic Issues Annual Report 2020 | CARTAC CARTAC’s risk management is under- managed at the level of the Centre. For natural disaster risk, CARTAC taken as part of the IMF’s overall risk CARTAC will continue to engage the has begun work on climate resilience management framework (Figure 3). authorities through the SC on ways to and will embed stronger business Financial controls and safeguards, take greater ownership of programme continuity programs to incorporate technology and quality control are all outcomes. CARTAC will begin piloting the risk associated with pandemics. done at IMF Headquarters, while work in-country focal points to help address program implementation risks are implementation challenges in FY2021.

Figure 3. Funding Flows and Accountability: CARTAC

Controls and safeguards: Steering Development Partners Sub account under the IMF’s framework Committee This is the only for selected Fund activities IMF WHD and account used to other Departments receive and disburse funds which are CARTAC – Capacity development through Meets Controls and solely for CARTAC. Technical Assistance and Training bi-annually safeguards:

Short-term experts Funds are managed are recruited from in accordance with a database at IMF IMF practices and HQ roster of procedures. qualified experts. Tax and Customs Public Financial Financial Economic Administration Management Sector Statistics and Macroeconomic Resident advisors This sub account is Analysis are hired after audited as part of an international the IMF Framework competitive process. administered audit Residential Advisors and Short-Term Experts and the report of the external audit firm is posted as Controls and part of the IMF safeguards: annual report on the external Anguilla, Antigua & Barbuda, The Bahamas, Barbados, Belize, Quality control of website. outputs through IMF Bermuda, British Virgin Islands, Cayman Islands, Curacao, Dominica, review process and Grenada, Guyana, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, backstopping. This St. Lucia, St. Maarten, St. Vincent and the Grenadines, Suriname, Reporting on this ensures compliance account is done via Trinidad & Tobago and Turks & Caicos Islands with international a secure external best practice. gateway and in the annual report External evaluation showing progress o Delays in implementation due to competing priorities and limited human resources in member countries. (Encourage contingency planning by authorities). at mid-point of the against the work- financial cycle. plan and budget and is presented o The level of political buy-in for reforms is key to the successful implementation. There is a to the Steering (Constant engagement with authorities to show the potential benefits of reforms and prioritisation process Committee. increase ownership). for the CARTAC workplan based on o Natural disasters/pandemics could force a review CARTAC’s Workplan. member country (Build resilience ex ante; flexibility to reprogram missions to assist countries to recover needs and an IMF HQ more quickly). TA assessment.

Center coordinator reports to WHD RISK

Annual Report 2020 | CARTAC SECTION I: Strategic Issues | 5 Communications and Visibility In FY2020, CARTAC launched a prominence to the various develop- string throughout all communication new website. The website features ment partners and member countries. materials–from CARTAC’s letterhead, annual reports, workplans and the standardized templates for power point various training and technical activi- CARTAC prepares a newsletter which presentations, published reports, as ties of the Centre. It allows authorized provides a glimpse of CARTAC’s work well as the certificates of completion users access to TA reports and every three months and presents for workshop and course participants. provides an overall improved viewing feature articles on topical issues. The experience. The website will include Centre also maintains a social media testimonials from training participants presence. To ensure donor visibility, and TA recipients. It will also give CARTAC uses a standardized logo

Cost-Effectiveness Box 1: Managing Cost management continues to be and planning held by the revenue CARTAC Costs central to CARTAC’s administrative mobilization programs. These The largest cost resulted in significant cost savings • Back-to-back missions for STX processes (Box 1). component is salaries which are set as resources were shared across • Regular surveys of conference by IMF HQ. To manage these costs programs. The travel restrictions at and workshop venues without compromising the number the end of the fiscal year, although and quality of TA delivery, CARTAC not planned, also resulted in the • More recent use of Dominican carries out as many back-to-back curtailing of travel expenses for Republic (DR) World Customs missions as possible to curtail travel all CARTAC TA programs. It also Organization (WCO) training days. Another large cost area is in provided an opportunity to enhance facilities hosting workshops and seminars. the remote TA delivery modality These costs are controlled by which has been deployed occa- • Early planning and ticketing identifying the most cost-effective sionally as cost-reducing measures • Benefiting from IMF internal workshop venues with consideration during the last two years. Some streamlining working group - given to airfare and accommoda- CARTAC workshops now incorpo- contracting process tion costs and contract terms. rate an online training module in advance of face-to-face training. • Online training and remote Other cost saving measures TA delivery included the hosting of joint work- shops - for example, three regional training exercises carried out by the financial sector programs and a workshop on disaster preparedness

6 | SECTION I: Strategic Issues Annual Report 2020 | CARTAC Section II Report on the FY2020 Program

Annual Report 2020 | CARTAC 7 Recent Developments and Challenges Ahead1 COVID-19 Pandemic and Collapse of tourism Economic fallout the Caribbean: Navigating The Caribbean economies are beyond tourism Uncharted Waters being hit hard by the collapse of The steep drop in commodity prices the tourism sector, which accounts As the COVID-19 pandemic continues is affecting commodity exporters for 50 to 90 percent of GDP and to spread across the globe—bringing such as Guyana, Suriname, and employment in some countries. severe human and economic costs—the Trinidad and Tobago through a loss in exports and fiscal revenues. Caribbean is no exception. With over The global cruise line and air travel Moreover, energy companies may cut 1,000 confirmed cases, many coun- industries have ground to a halt back production plans in anticipation tries have taken strong containment with major cruise companies cancel- of weaker energy demand resulting measures, such as border closures ling sailings through June and most from a contraction in global manu- and lockdowns, to “flatten the curve”. airlines reducing or suspending facturing activity. For oil-importing But the “sudden stop” in tourism is service to the Caribbean region. sharply slowing economic activity in the countries in the region, lower oil prices Caribbean, and growth in the region Key tourism source markets in North will provide a buffer to the shock. is projected to contract by 6.2 percent America and Europe are crippled Remittances average about 7 percent in 2020. This would be the deepest by the pandemic. This, together of the Caribbean region’s output recession in more than half a century. with tight border controls and travel and exceed 15 percent of GDP in There are also possible spillovers to restrictions, has led to massive hotel Haiti and Jamaica. With the United the financial system. For instance, lost booking cancellations and temporary States, the United Kingdom, and output from firms and the high fiscal resort closures—putting numerous Canada in deep recession, remittances costs associated with managing local people in the service sector out flows to the region are expected to outbreaks — given deficiencies in the of work. Experience from previous fall sharply. Given the region’s high region’s public health systems — can crises suggests that the recovery reliance on imported goods, supply potentially worsen the pandemic’s could be delayed. There is also a risk chain disruptions could affect capital financial impact. Further, the upcoming that the “fear factor” associated with projects by constraining arrivals of hurricane season poses additional the virus could have a long-lasting materials and labor, as well as jeop- risks to these already budget-strapped impact on tourism in the region, ardize food and health security by economies. To sustain the economy even after the pandemic recedes. delaying delivery of foodstuffs and during the crisis and contribute to a medical equipment and supplies. faster recovery, countries will need to allocate resources to vulnerable Foreign demand for the Citizenship- groups affected by the pandemic. by-Investment programs, which have been an important revenue source for several Eastern Caribbean Currency Union (ECCU) countries, may decline sharply if investors lose confidence in the quality of healthcare systems in these countries. This would put further 3 This section was taken from the IMF Blog – Insights and Analysis on Economics and Finance. It was written by Krishna Srinivasan, Sònia Muñoz, and Varapat Chensavasdijai pressure on the fiscal accounts.

8 | SECTION II: Report on the FY2020 Program Annual Report 2020 | CARTAC Figure 4: The Caribbean: Tourism Contribution

100 90 Direct Indirect and Induced 80 70 60 50 40 30 20 10 0 Rico Haiti Cuba Nevis Belize Aruba Puerto Islands Islands Tobago Jamaica Anguilla Barbuda Grenada Bahamas US Virgin Dominica Barbados Saint Lucia Martinique St Kitts and Antigua and Guadeloupe British Virgin Trinidad and St Vincent and Cayman Islands The Grenadines

Source: World Travel and Tourism Council. Note: Direct contribution includes direct GDP impact of the most relevant sectors (catering, accommodation, entertainment, recreation, transportation, and other travel and tourism-related services). Indirect contribution includes capital investment and government collective spending in tourism, and domestic supply chain impact to other sectors. Induced contribution includes the impacts of incomes earned directly and indirectly as they are spent in the local economy.

Figure 5: Tourism Shock: Number of Daily Inbound Flights

1000 2019 2020 800

600

400 WHO declares COVID-19 outbreak a pandemic 200

0

3 5 7 9 4 6 8 01 11 13 15 17 19 21 23 25 27 29 31 02 10 12 14 16 March April

Flightradar24; and IMF staff calculations. Source: Flightradar24; and IMF staff calculations.

Figure 6: Commodity Prices (Index: 2018 =100)

Oil Natural Gas Metals 120

100 80

60

40

20

0 2018 2019 2020 2021

Source: IMF World Economic Outlook (WEO) database; and IMF staff calculations. Source: IMF World Economic Outlook (WEO) database; and IMF staff calculations.

Annual Report 2020 | CARTAC SECTION II: Report on the FY2020 Program | 9 Policy response Caribbean countries have shown pandemic will be critical to protect Tobago have reduced policy rates and/ foresight in pursuing containment livelihoods and enable recovery. or reserve requirements or provided and mitigation measures, as well liquidity assistance through other as adopting contingency and Most countries have already announced facilities. Banks and other lending preparedness plans—from expanding fiscal packages that include additional institutions have offered short-term hospital capacity and quarantine health spending; temporary cash payment deferrals and interest rate facilities, to procuring medical supplies transfers for displaced workers; credit reductions on mortgages and loans and training medical staff. To ensure support to small and medium-sized and waived late fees and charges to the virus is successfully contained, it firms and affected sectors such as eligible customers. But further fiscal, will be vital to continue mass testing tourism, transport, and agriculture; monetary and credit-easing measures and contact tracing, while allocating expansion of social safety net will likely be needed depending on adequate resources to hospitals programs for vulnerable groups the effectiveness of containment and healthcare facilities. However, (e.g., food and income support); measures and how the demand most countries in the Caribbean reduction or deferral of some taxes for tourism recovers. To safeguard have limited spending room in their and electricity tariffs; and tax and financial stability, supervisors should budgets to cushion the economic customs duty waivers on essential intensify monitoring and increase impact of the pandemic. Likewise, food and hygiene product imports. the reporting frequency of financial few countries have flexible exchange institutions. For Caribbean countries, Where feasible, central banks rate regimes that would help boost an important consideration will be and regulators should play a their exports and output. Given this, to identify financial sector risks, complementary role to support directing resources within the available including exposures to tourism-related economic activity. Central banks in policy space toward individuals and activities, and conduct stress testing. the ECCU, Aruba, Barbados, Belize, businesses most affected by the Haiti, Jamaica, and Trinidad and

Stepping up IMF support The IMF is actively engaging by the IMF’s Executive Board in the urgent health needs. We are also Caribbean countries to offer policy coming weeks. Barbados has also working closely with the World Bank, advice and assistance, especially to requested an augmentation of its Caribbean Development Bank, and those with pressing financing needs existing Extended Fund Facility. other regional partners to explore to cope with the pandemic. As IMF innovative solutions and approaches Managing Director Georgieva recently The doubling of the IMF’s emergency to assist countries in the Caribbean outlined, the IMF is ready to deploy financing capacity means that up to to navigate the challenges and pave financial resources quickly. For instance, US$2.5 billion could be made available the way to economic recovery. As requests for the Rapid Credit Facility immediately to the Caribbean region. always, the IMF will stand behind by Haiti, Dominica, Grenada, and St. In addition, other recent reforms the Caribbean countries in providing Lucia have already been approved, allow immediate debt service relief policy advice and financial support, while emergency assistance for three to low-income countries, such as and together we will weather this additional Caribbean countries, Haiti, affected by the crisis, thereby crisis and come out stronger. including Jamaica, will be considered creating space for spending on

Overview of FY2020 Activities and Results The execution rate of activities in and suspension of all travel from The majority of CARTAC member FY2020 was 76.3 per cent with total March 2020 due to the COVID-19 countries benefited from TA in excess TA delivered at 3,611 Resource Person outbreak. Roughly 5.2 per cent of of 70 days during FY2020 (Figure 8). Days (RPDs), (Figure 7). The execution the work program activities were The three countries receiving the rate was affected by delays in the affected by this travel suspension. greatest number of TA days were Belize recruitment of replacement Advisors (295 days), Barbados (236 days) and for the PFM and TAX programs Anguilla (206 days). Belize was engaged

10 | SECTION II: Report on the FY2020 Program Annual Report 2020 | CARTAC F Annual Report 2020 Report Annual The administration. customs their for audits clearance post and management risk strengthening and monitoring SOE strengthening on assistance from benefitted Barbados CPI. their of rebasing the and legislation securities new of drafting the particular in supervision sector financial mobilization, revenue in TA extensive received (PIMA), Assessment Management Investment Public a in F 8. CARTAC: D CARTAC: 8. igure Number of Days 7. I igure CARTAC: 1000 1500 2000 2500 3000 3500 4000 4500 5000 500 100 150 200 250 300 350 50 0 0

Belize PFM |CARTAC Barbados mplementation istribution Anguilla TAX St Vincent and the Grenadines

CuraÇao TAof Saint Lucia W of CUS sales tax (GST), risk management for for management risk (GST), tax sales a general of implementation the on training review. received also Anguilla effectiveness hurricane post PFM a as well as Anguilla for out carried was assessment (PEFA) Accountability Financial and Expenditure Public A dissemination. CPI/PPI and compilation BOP/IIP enhancing and framework macroeconomic their updating with assistance received also authorities Grenada by C P ork

Jamaica (RPD ountry rogram Guyana MAC

Dominica , FY2020 Trinidad and Tobago s ), FY2020 ),

Bermuda FSS

Turks and Caicos

Montserrat FinStab Planned FY20

|11 Program FY2020 the on Report II: SECTION Suriname amounting to 49 percent of CARTAC of 49 to percent amounting TA of delivery share programs represented the greatest The PFM and revenue mobilization authorities. the of needs the assess to out carried was mission A scoping 2019. August CARTAC in of member a became Maarten Sint projections. macro-economic term medium their in developing and assistance customs ECCB/ECCU

Antigua and Barbuda ESS Executed FY20 The Bahamas

Aruba RSS in FY2020 FY2020 in British Virgin Islands

St Kitts and Nevis

Sint Maarten Total

Cayman Islands

Haiti work program (figure 9). This was followed Figure 9. CARTAC Distribution of TA by Program FY2020 by the statistics programs at 21 per cent, financial sector supervision and stability 12% at 20 per cent and the macroeconomic 16% program at 10 per cent. A total of 234 RSS PFM activities were executed during the fiscal 9% year, with TA missions accounting for 59 ESS per cent of the total. Training activities (workshops, attachments, internships) FinStab TAX 20% accounted for 24 per cent and work at 9% home (WAH) engagements due to the travel restrictions made up 9 per cent FSS of the activities. Meetings and retreats 11% MAC CUS accounted for the remaining 8 percent. 13% During the fiscal year, all CARTAC 10% member countries benefitted from TA in climate resilience activities with 10 Figure 10. CARTAC Distribution of Climate bilateral engagements and 6 regional Resilience TA by Program FY2020 training exercises. Training was provided to financial sector players on how regulatory and supervisory practices could be impacted by a climatic event and 25% 36% Eastern Caribbean countries were assisted FinStab PFM in updating their debt sustainability assessments to review the direct impact of disasters on the countries’ debt trajectory. FSS Post hurricane PFM reviews were carried 6% out for Anguilla, British Virgin Islands, TAX Dominica and Turks and Caicos. These MAC CUS missions assessed the ability of the 19% 3% countries’ public financial management systems to rebound after a natural disaster. 11% A regional workshop was carried out on disaster preparedness and planning for Figure 11. CARTAC: Training Participation by Sector and customs and tax officials. The participants Gender, FY2020 had the opportunity to study what constitutes a strong disaster preparedness Male Female plan in order to adopt best practice on Total their return to their respective agencies. RSS During FY2020, over 1,100 persons ESS participated in training activities and roughly 63 per cent were female (figure FinStab 11). There were 40 workshops (regional FSS and local), 18 persons benefitted from peer to peer attachments and 8 persons MAC participated in the internship program. CUS Participants expressed overall satisfaction TAX with the course content for all workshops and the knowledge and skills gained. PFM The effectiveness of this mode of training 0 100 200 300 400 500 600 700 800 is noted and CARTAC will continue to Number of Participants pursue effective ways to deliver TA to expand reach to its member countries.

12 | SECTION II: Report on the FY2020 Program Annual Report 2020 | CARTAC Section III CARTAC FY2020 Program Implementation and Results

Annual Report 2020 | CARTAC 13 SeCtion III Macroeconomic A Program

Overall Assessment of FY2020 Program Implementation The Macroeconomics (MAC) In FY 2021, the MAC program plans Key Results/Outcomes to continue focusing on assisting program experienced a countries in strengthening their macro- The MTFF missions to Anguilla, heightened level of technical economic frameworks but with some Antigua and Barbuda and Bermuda assistance delivery during level of flexibility to respond to their focused on strengthening capacity in the ministries of finance in forecasting the period May 2019 to needs arising from the impact of the and developing consistent macroeco- April 2020, mainly in the COVID-19 pandemic. Reflecting the current travel restrictions, some TAs nomic frameworks to be used for their form of bilateral missions may have to be delivered remotely medium-term budgets. The Bahamas and regional workshops. while the number of regional work- mission specifically focused on During the period, twelve shops has been scaled down. assisting the Ministry of Finance in preparing its Fiscal Strategy Report missions were conducted of in response to Hurricane Dorian. which, 8 were bilateral country The Aruba mission, which was deliv- missions, 3 were regional ered remotely, assisted the Department workshops and a roadshow of Economic Affairs and the Central Bank in reviewing and validating their to Sint Maarten, CARTAC’s forecasting models. The work with the most recent member. Central Bank of Barbados is on-going The bilateral country missions and focuses on developing a feed- were focused on assisting back loop mechanism for analyzing countries in developing policy measures and shocks to growth, fiscal and monetary policies. capacity in medium-term fiscal frameworks (MTFF). A total of 261 Resource Person Days In addition, the 2019 summer (RPDs) of technical training was deliv- ered, against the planned 322 RPDs, internship program was resulting in an execution rate of 81.1 successfully executed percent. A total of 73 persons partici- during the period. pated in the bilateral country training.

14 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC The 3 regional workshops were Macroeconomic Program: Achievement of Milestones for FY2020 MACROECONOMIC PROGRAM: PUBLIC FINANCE MANAGEMENT: well executed with the facilitators ACHIEVEMENT OF MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020 coming from the Institute for Capacity Development (ICD). A total of 75 persons participated in the training, 8% 17% 4% mainly from the ministries of finance Fully Not Fully Achieved Achieved Achieved but also including persons from central banks and other institutions. 71% Following the completion of the 25% Partially MTFF missions to Anguilla, Antigua Largely Achieved 50% 25% Achieved and Barbuda, Bermuda and Aruba Largely Partially the LTX continued working with the Achieved Achieved ministries of finance in updating their GDP and fiscal forecasts.

While it is too early to assess the impact on the achievement of TAX ADMINISTRATION: ACHIEVEMENT OF CUSTOMS ADMINISTRATION: ACHIEVEMENT MILESTONES FY2020 OF MILESTONES FY2020 milestones, the feedback received from countries indicate that they were quite satisfied with the training 15% 17% 9% 5% provided. However, to achieve better Fully Results Based Management Risks and RiskNot Management Fully Not Achieved outcomes countries need to translate Achieved Achieved Achieved Under the MAC program, 58 percent The main risks continue to be high the skills acquired during the training of milestones were either fully or staff turnover in the policy units in into improved macroeconomic largely achieved. The MAC Adviser some countries and the shallowness of frameworks. Improvements in the will continue to monitor the achieve- data. One way to get around the staff standards of forecasting and analysis ment of milestones25% and engage further turn-over issue43% is to provide procedures 29% 57% should result in more realistic budgets Largely Partially with the countries on ways to improve manuals, a prototype of which is being Largely Partially and better fiscal and debt outcomes. Achieved Achieved Achieved Achieved existing systems for better utilization developed. This will allow new staff The summer internship program was of TA to achieve the macroeconomic who have not benefited from training successfully implemented during the outcomes. However, some milestones to get a handle on the procedures. period June to August 2019 with 8 such as tabling the Medium-Term In addition, the recent crisis brought by interns participating in this year’s Fiscal Strategy paper inFINANCIAL Parliament STABILITY: are ACHIEVEMENTthe COVID-19 OFpandemic is expected to FINANCIAL SECTOR SUPERVISION: program. There were 2 interns from beyond technical issues andMILESTONES involve FY2020have long lasting impacts on member ACHIEVEMENT OF MILESTONES FY2020 Barbados, 5 from Jamaica and one some element of political-economy countries’ economies and may result from Trinidad and Tobago. They were consideration. In the future, CARTAC in delays in achievement of important hosted at the Eastern Caribbean will endeavor to demonstrate the milestones. However,10% CARTAC will 20% Partially Central Bank (ECCB), Central Bank of usefulness of these tools to high take this opportunity when there is Fully Achieved Achieved Barbados, Bank of Jamaica, Planning level policy makers with a view to significant focus on economic recovery Institute of Jamaica and CARTAC. their adoption as87% essential parts of in the post pandemic period to try to 40% Fully Partially All interns successfully completed governments’ policy frameworks. entrench consistent3% macroeconomic Achieved Achieved Largely projections in Ministries of Finance. research assignments as part of the Achieved 40% requirements for the internships. Largely The topics covered by the interns Achieved included disaster management and resilience, bitcoin in the Caribbean, digital currency in the ECCU, electric REAL SECTOR STATISTICS: ACHIEVEMENT OF EXTERNAL SECTOR STATISTICS: vehicles in Jamaica, monetary MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020 policy and exchange rate in Jamaica and cyber risk management in the Caribbean. Some provided positive 4% 34% 1% Fully Not reviews of their experiences at the Partially Achieved Achieved institutions where they were hosted. Achieved 73% Fully 23% Achieved Largely Annual Report 2020 | CARTAC SECTION III: CARTAC FY2020 Program—ImplementationAchieved and Results | 15 52% 13% Largely Partially Achieved Achieved SeCtion III Public Financial B Management

Overall Assessment of FY2020 Program Implementation In H1 and the beginning of H2 FY In addition to national training Key Results 2020, CARTAC member countries activities and TA missions, CARTAC continued to strengthen their PFM planned 4 regional PFM workshops The first regional workshop for the practices and capacity. Post hurricane for FY 2020. The first was an internal year took place the week of November PFM effectiveness reviews have audit workshop which was held in 4th to 8th on Internal Audit. been conducted and modern PFM Barbados, while the second focused The Internal audit workshop was legislation is progressing across on identifying fiscal risks and was designed to bring internal audit the region. Reforms continue in held in Trinidad and Tobago, both officials up to date with the latest the implementation of strategic in November 2019. A workshop on methodologies, tools and techniques. and program-based budgeting budget preparation and execution, It leveraged the experience of those and advances are occurring with with an emphasis on gender in attendance and helped to enhance improved accountability and more sensitivity and another on improving the quality of and maintain the comprehensive fiscal reporting. financial reporting was held in consistency in conducting the internal Internal audit is progressing in St Kitts and Nevis in February 2020. audit function. A robust community of compliance with IIA standards, which Unfortunately, the workshop on cash internal auditors within the CARTAC also assist with the strengthening, management including sessions group of member countries has identification, monitoring and on GFS 2014 compliant chart of emerged over the last 4 years. A subset management of fiscal risks and state- accounts had to be canceled given of emerging internal audit departments owned enterprise (SOE) reforms travel restrictions due to COVID-19. has been created which is impacting are ongoing. However, the global the risk management of governments. pandemic and IMF travel suspension Execution of the work plan was In addition, Barbados, Belize, Curaçao virtually grounded technical assistance affected by schedule changes at and other countries are using these to a halt in the region. CARTAC PFM the request of member countries, workshops and individual TA to assist has been carrying out work at home the transitioning of a new PFM them in building and establishing best TA in areas like draft legislation Advisor and the IMF’s response to practices in their internal audit units. updates, the completion of regional the pandemic. Of the 986 resource The second regional workshop took reports and the delivery of virtual TA person days (RPDs) planned, 587 place from November 18th to 22th missions through video conferencing. were delivered for an execution rate of 60 percent. LTX delivery was 71 on Fiscal Risk Management. The percent of planned RPDs while STX workshop examined the principles and HQ delivery were 46 percent of reducing fiscal risk in the region. (214 RPDs) and 67 percent (16 RPDs) Countries which had good mechanisms respectively, of planned resources. for controlling fiscal risks shared their

16 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC MACROECONOMIC PROGRAM: Public FinancE managementPUBLIC: achievement FINANCE MANAGEMENT: of Milestones FY2020 The budgets are presented in the ACHIEVEMENT OF MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020 revised program budgeting format, including non-financial performance 8% 17% 4% information. The Bahamas, Dominica Fully Not Fully and Curaçao are moving to begin Achieved Achieved Achieved implementation of performance budgeting. Recent initiatives in several countries, including Saint Lucia 71% and Turks and Caicos Islands, have 25% Partially Largely Achieved provided training for Ministry staff 50% 25% Achieved to improve compliance with budget Largely Partially Achieved Achieved guidelines and performance reporting and in TCI, parliamentarians are now using the performance information to test the budget submission. experiences. The workshop devoted during the fiscal year 2018 with the TAX ADMINISTRATION: ACHIEVEMENT OF CUSTOMS ADMINISTRATION: ACHIEVEMENT Impressive strides to reform the MILESTONES FY2020 a day to explore fiscal risks generOF- MILESTONESsupport FY2020 of CARTAC was passed and management and oversight of the ated by natural disasters and climate its implementation is in progress. state-owned enterprise (SOE) sector change and although not specifically, The Government of St Lucia tabled are underway. However, progress 15% 17% addressed how the risks9% experienced their new PFM legislation5% before Fully Not remains fragmented across the region from exogenous sourcesFully such as Parliament in July 2018Not and the Achieved Achieved Achieved Achieved in an area that is one of the biggest hurricanes can be directly applied parliamentary review process is sources of fiscal risk. This topic was to the pandemic. This workshop also currently underway. The Bahamas covered in a workshop expressly on showcased the use of Public Private passed their Fiscal Responsibility Oversight of SOEs held in February Partnerships (PPPs) in the Caribbean Legislation (FRL) in September 2018 25% 43% 29% 57% 2019 and were revisited in the Fiscal as a tool to mitigate fiscal risks. and is currently preparing a final draft Largely Partially Largely Partially Risk Management workshop that Achieved Achieved of their PFM Legislation for tabling Achieved Achieved was held in Trinidad and Tobago in The third regional workshop took in Parliament in the next fiscal year. November 2019. Since the start of place the week of February 24th to The Fiscal Responsibility Committee CARTAC’s involvement in SOE reform 28th on budgeting and priority setting of the Bahamas is benefiting from in early 2014, Grenada has achieved and reviewed the principles of stra- the experiences of the Grenada significant traction in implementing FINANCIAL STABILITY: ACHIEVEMENT OF tegic budgeting and includedFINANCIAL linking SECTORFiscal SUPERVISION: Responsibility Oversight reforms both at the sectoral level and MILESTONES FY2020 Medium Term EconomicACHIEVEMENT Frameworks OF MILESTONESCommittee FY2020 through a country visit within individual SOEs. The CARTAC to annual budgets and highlighted and setting up a WhatsApp Group framework has been successful in 10%gender and preparation for natural to share experiences and insights. initiating reforms, allowing government Partiallydisasters Achieved as budgeting20% policy tools. Grenada is undertaking efforts to Fully officials to begin improved monitoring improve its oversight by providing Implementing a modernAchieved and of financial and operating performance. training to their Fiscal Responsibility 87% consistent PFM legal framework across 40% Barbados continues to pilot a reform Oversight Committee.Partially They are also Fully 3% the Caribbean remains a key focus, program to improve SOE/Statutory Achieved in the process ofAchieved reviewing their Fiscal Largelyand the passage and implementation Body (SB) performance and financial Achieved Responsibility Legislation with the of fiscal responsibility40% legislation is reporting under the new PFM Act. Largely assistance of FAD and CARTAC. growing. This work isAchieved complemented The top nineteen high-risk SOEs/ by participation of many of our partner Regional budget preparation reforms SBs and the remaining SOEs were to entities of the IMF and other regional are being sustained. Several countries participate in a similar session in March technical assistance providers. Several 2020, which had to be postponed REAL SECTOR STATISTICS: ACHIEVEMENT OF EXTERNAL SECTORare STATISTICS:continuing implementation of the countries with draft PFM due to the travel ban. Under the IMF MILESTONES FY2020 ACHIEVEMENT OF MILESTONESand improving FY2020 their processes. An legislation in preparation or at the important achievement for CARTAC program and with the commitment of Parliamentary level are on hold due to PFM is that budgets1% for Belize, BVI, the government, financial oversight 4% 34% Not Achieved the passage of the hurricanes. St. Vincent and The Grenadines, of SOEs is improving. Grenada and Partially Fully This includes Anguilla, BVI, and Jamaica continue as leaders in the Achieved Achieved Turks and Caicos Islands, and Saint Dominica. The PFM Act of Barbados Lucia are now prepared in line with the region, with significant achievements 73% drafted with the support of IMF/ strategic budget reform methodology. to date and their constant willingness Fully 23% FAD/CARTAC in 2017 and reviewed Largely Achieved Achieved 13% 52% Partially Annual Report 2020 |Largely CARTAC SECTION III: CARTAC FY2020 Program—Implementation and Results | 17 Achieved Achieved to share their challenges and A PEFA Assessment was conducted Risk and Risk Management successes with their Caribbean for Anguilla from October 21st to colleagues whenever asked. November 1st, 2019. CARTAC is Financial reporting continues to looking at ways of partnering with improve, however, there are many While transition to accrual basis under other development agencies in reform areas where work needs to International Public-Sector Accounting the region to continue the support continue. Delays in implementation Standards (IPSAS) is progressing, in this area as the results of these are often due to the inadequacy of some countries are still adopting the assessments are the basis for most information technology systems, such IPSAS-cash basis standard. Despite donor results frameworks. The return as the need to update hardware or this progress many concerns need to to previous budget levels for FY 2020 software, additional staff training, or be addressed to ensure full compliance and beyond will allow CARTAC to obtaining services for implementation. with IPSAS in the region. In FY2020, begin performing at least one PEFA These areas continue to be addressed TA was provided to improve financial Assessment each year, as was the during missions and workshops by reporting and compliance with IPSAS case previously. The development sharing of information on how other in Curaçao and BVI and TA was of the Agile PEFA Assessment by countries managed to work through planned for Grenada, Jamaica and the PEFA Secretariat, which is being these problem areas. This has enabled Trinidad and Tobago, in addition to piloted around the region and other countries to identify possible solu- a one-week workshop planned for parts of the world, could result in tions for some of their challenges. February 2020. The follow-up reports CARTAC being able to complete In many countries, ministries need from most countries indicate that these more assessments in the future. reforms continue to be implemented. training on changing business As a result of CARTAC TA, many of the operations in Treasury and Budget, countries have improved the timeliness Partnerships including updates to legal frameworks. TA missions often focus on working and coverage of their fiscal reports as Last year saw an increase in with Ministry of Finance officials to they transition to IPSAS cash and others partnerships for PFM advisors within establish reform processes. However, continue the path to IPSAS accrual. CARTAC. CARTAC PFM Advisors it has been noted that communications Some including Grenada and BVI have participated in joint missions with with line ministries is often delayed been able to improve their report a FAD led mission in Trinidad and and training needed to ensure regime to the extent that their reports Tobago, WHD Mission in Belize and understanding and compliance is not are no longer many years behind. in the Climate Change Resilience always provided. In response, since However, they will need to continue this Mission jointly with the IMF and the 2018 TA missions have included training progress in order to avoid reversal. World Bank. CARTAC was also invited for other ministries in budget reforms. to participate in the World Bank’s Implementation of the Integrated In addition, training on treasury and Expenditure Review in Dominica. Financial Management System legal reforms will also be provided CARTAC’s PFM Legislation Team also (IFMIS) continues to progress across to other line ministries to ensure worked closely with the Commonwealth the region. While IFMIS, primarily sustainability of the reform processes. Secretariat to assist with synchronizing Smart-Stream and Free-Balance have their draft Public Debt Management been ubiquitously implemented in Act with the Bahamas FRL and draft the region, some countries have not PFM Legislation. We hope to continue utilized many of the modules avail- those linkages with performing CCPAs able and others such as Trinidad and PIMAs in concert with the World and Tobago and Jamaica are just Bank and others. We jointly hosted a beginning the implementation Resilience Workshop with FAD and the process. IADB and other partners Pacific Islands Technical Assistance are providing more support to Center (PFTAC) in December2, those countries on that issue. which is the kind of collaboration we anticipate in the future.

2 With funding support from the Government of Japan.

18 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC SeCtion III

MACROECONOMIC PROGRAM: PUBLIC FINANCE MANAGEMENT: Tax ACHIEVEMENT OF MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020 Adminis8%tration 17% 4% Fully Not Fully C Achieved Achieved Achieved 71% 25% Partially Largely Achieved 50% 25% Achieved Largely Partially Achieved Achieved

TAX ADMINISTRATION: ACHIEVEMENT OF CUSTOMS ADMINISTRATION: ACHIEVEMENT Overall Assessment Tax ADMINISTRATION: achievementMILESTONES FY2020 of Milestones FY2020 OF MILESTONES FY2020 of FY2020 Program Implementation 15% 17% 9% 5% Fully Not Fully Not Achieved Achieved Tax administration reforms are Achieved Achieved ongoing within the context of two main regional strategic objectives. These are: (1) better revenue 25% 43% 29% 57% administration, management and Largely Partially Largely Partially governance arrangements are in Achieved Achieved Achieved Achieved place; and (2) strengthening tax administration core functions. Reforms continue in developing capacity to establish and operate a robust Overall delivery of technical assistance compared to 1,163 planned RPDs. headquarters function; consolidating was below targetFINANCIAL by 35.7 percent. STABILITY: ACHIEVEMENTThis includes OF 344 RPDs delivered FINANCIAL SECTOR SUPERVISION: strategies and plans so that these are The program operated,MILESTONES for the most FY2020 by CARTAC Resident Advisors and ACHIEVEMENT OF MILESTONES FY2020 in line with the CARTAC “Regional part, with a single Tax Adviser. The 356 by Short-Term Experts (STXs). Core Performance Indicators”; workplan for FY20 was developed on In relation10% to training conducted – the assumption that a replacement seven workshops were held, two 20% strengthening tax administration Partially Fully information system; strengthening would have been in place within regionalAchieved and five country-specific, Achievedwhile legislative framework; improved the second87% month of the fiscal three countries participated in a study 40% accountability and management and year. However,Fully the new Adviser, tour. One hundred and six persons Partially 3% Achieved operational reporting. Activities also Ms. GertieAchieved Merete Rosenberg arrived (67 percentLargely female, 33 percent male) include creating and strengthening to CARTAC in November 2019 and benefittedAchieved from training activities 40% the management of large taxpayer commenced TA delivery in January totaling 613 participant training days. Largely Achieved operations that generally account for 2020. In addition, the COVID-19 Achievement of milestones for the over 70 percent of the tax revenues; pandemic caused the postponement period reflected 41 percent fully continuing to build capacity in data or cancellation of several approved or largely achieved, 37 percent analytics, compliance management and missions. NotwithstandingREAL SECTOR STATISTICS:the ACHIEVEMENT OF EXTERNAL SECTOR STATISTICS: partially achieved and 15 per cent not data driven strategic and operational set-back, the program deliveredMILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020 achieved. CARTAC will ensure that the management decision making; and direct TA to fifteen (15) countries. upcoming workplan addresses any improving capacity in tax auditing. Total resource-person-days (RPDs) 34% 1% delivered was 727 (62.5 percent) areas lagging4% in achieving results. Fully Not Partially Achieved Achieved Achieved Annual Report 2020 | CARTAC 73% SECTION III: CARTAC FY2020 Program—Implementation and Results | 19 Fully 23% Achieved Largely Achieved 52% 13% Largely Partially Achieved Achieved Box 2: Countries Strengthening Strategic Management Framework

• Barbados –Consolidate Corporate Strategic Plan, the Annual Business Plan and Unit Plans, in line with “Core Regional Performance Indicators” and TADAT guidelines and COVID-19 plan being implemented. • Belize – a three-year strategic plan was completed (with Peer support facilitated by CARTAC from the Guyana Revenue Authority); FY2020 operational plan developed, including key performance indicators. TA provided in building capacity to strengthen the Headquarters functions; • St. Vincent and The Grenadines – enhancing tax revenue management analysis and reporting; • St. Lucia – function of program development, monitoring, reporting enhanced; • Antigua and Barbuda – in addition to assisting in enhancing HQ capacity in program development, a workshop was conducted with managers on the role and function of the HQ and other functional areas. Assistance was given in strengthening the Post-TADAT Strategy Plan, developed by the authorities. • Grenada – in strengthening HQ capacity, two workshops were conducted: (a) strengthening analytical skills in data analysis and reporting, and (b) program development using TADAT and ISORA tools. • Guyana - assist HQ in enhancing strategic and operational plans, core performance indicators and reporting framework. • Trinidad and Tobago – HQ-led mission assisted the Inland Revenue Division (IRD) to assess progress made in implementing actions to address weaknesses identified by the October 2017 TADAT assessment.

Planned programs not delivered Several planned programs were not delivered, due primarily to the COVID-19 outbreak, the late arrival of the second Adviser and a change of priorities by the authorities.

Approved Programs (16.3 percent of planned program) not delivered due to COVID-19:

• Dominica: TADAT assessment – 92 RPDs;

• Montserrat: Strengthening core business functions – 15 RPDs;

• Aruba: Organizational arrangements and Strategy, building audit capacity – 72 RPDs;

• St. Maarten: Strengthening core function, Registration – 11 RPDs.

20 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC Key Outcomes all strategic planning tasks, direction Outcome: Support functions and support to operational units, enable more effective delivery In-line with CARTAC’s Results including the developing, monitoring of strategy and reforms Based Management (RBM) and reporting of plans and programs: framework, achievement of Barbados, Belize, Grenada, Guyana, • Strengthening information technology outcomes for the period under St. Lucia, St. Vincent, and Trinidad systems for business delivery will review are outlined below. and Tobago. be essential to support sustainable reforms. Curaçao benefited from Objective 1. Outcome: Corporate priorities TA in reviewing progress made in Better revenue administration, are better managed through implementing a new IT system. Draft management and governance effective risk management contracts reviewed for Antigua and arrangements. Barbuda, St. Kitts and Nevis, St. • Strengthening risk management: Maarten, ensuring requirements are Outcome: Organizational arrange- - TA continue in building capacity in line with modern tax administration ments enable more effective to strengthen risk management in information systems. Several other delivery of strategy and reforms Belize, Grenada, St. Vincent and The jurisdictions (Belize, Guyana, St. Grenadines and St. Lucia. However, Lucia, Grenada, Bermuda, St. Vincent • Countries are furthering their tax there is a slight set back to the St. , improving their and The Grenadines) are all in the reform agendas Vincent program, as two key persons institutional arrangements, and market for the replacement of their are no longer with the Department. working to improve the overall tax administration systems. CARTAC In relation to Belize, a compliance efficiency of administration. Belize sponsored a study-tour for Antigua improvement plan (CIP) is being embarked on a major modernization and Barbuda, St. Lucia, Vincent and developed to support the Large and reform program and has created the Grenadines to Tax Administration Taxpayer Program. a single integrated domestic tax Jamaica (TAJ). TAJ implemented a new IT system – GENTAX within the department (Belize Tax Service) from • A joint regional workshop in last three years. The objective of the the income tax and general sales tax Disaster Preparedness Planning for study tour to Jamaica, was to assist departments. In Turks and Caicos, Tax and Customs was held, aimed the tax administrations to understand the organizational framework was at building resilience in revenue the process of identifying, acquiring, reviewed to evaluate the suitability administrations. The workshop implementing, maintaining and to adopt a revenue authority benefited from presentations made managing a modern tax administration (RA) model or another structure. by the United Nations Conference on system; (b) the importance of having Curaçao is taking steps to improve Trade and Development (UNCTAD), a well-developed IT plan that ensures its institutional and organizational the Caribbean Disaster Emergency operational support, systems and arrangements. Assistance was Management Agency (CDEMA), data protection. In addition, CARTAC provided to Bermuda in developing and countries sharing their disaster facilitated a study-tour for St. Lucia, a program implementation plan for preparedness and business continuity hosted by the Barbados Revenue a new organizational framework that programs. is function-based and with a robust Authority (BRA). headquarters function. • CARTAC participated in the Caribbean • Dispute resolution process Organization of Tax Administrators strengthened. The Bahamas Tax Outcome: Capacity for reform (COTA) twenty-fifth General Assembly Appeal Commissioners and technical increased due to a clear strategy and Technical Conference in the staff received training in VAT and a strategic management frame- Turks and Caicos Islands. The theme legislation and adjudicating appeal work adopted and institutionalized of the conference was “Transforming matters. This training was facilitated Tax Administration in the age of by IMF-Legal Division. • Countries strengthened their strategic Digitization”. CARTAC/IMF made two management and accountability presentations –(a) managing digital framework and enhanced their • Tax administration human resource transformation, (b) building resilience function strengthened. HR support management decision making in tax administration-mainstreaming (Box 2). Significant technical provided to Belize– reviewing and processes business continuity plans. assistance was provided ensuring implementing job descriptions for the that administrations have adequately new organization and the development resourced headquarters’ function, of interview questionnaires for key and were empowered to carry out management positions.

Annual Report 2020 | CARTAC SECTION III: CARTAC FY2020 Program—Implementation and Results | 21 Outcome: Effective (VAT), International Taxation and Risks and Risk tax treaties and an introduction to implementation of a new tax Mitigation Strategies or modernized legislation auditing of the financial sector. • Counterpart contributions limited Strengthening legislative framework. Sustaining tax audit training (financial and human resources)— Tax administrations provided programs. St. Lucia senior auditors CARTAC will continue to advocate with a stable legal framework trained in direct and indirect audit that the authorities provide adequate ensuring proper administration techniques are now capable of resources; and enforcement of tax dues: providing ongoing audit training. Support provided to Montserrat • Limitations with IT systems support and St. Vincent and Grenadines in Taxpayer service for business delivery—Resident putting in place a common legal initiatives enhanced: advisers have been working with the framework - harmonizing core tax Dominica received assistance in authorities in reviewing options to legislations. A Tax Administration developing a system to obtain and enhance/replace current systems, but Procedure’s Bill is being developed utilize feedback from taxpayers; some authorities are hamstrung by for Montserrat and Tax Administration refining its service standard for the lack of financial resources; Act has been implemented by key functional areas; developing ŠŠ Limitations on effective St. Vincent and Grenadines. With a taxpayer charter and a guide on management and control of assistance from IMF/Legal, Bahamas the dispute resolution process. recruitment and retention of developed and implemented a Strengthening core business highly skilled human resources— single legislation, integrating three processes: St. Vincent and Resolving prolonged acting tax appeal functions into one Grenadines received TA in assignments in a timely manner body and training was provided improving business processes for would help and discussions are to the Appeal Commissioners, (a) registering taxpayers and ongoing with CARICAD to provide support staff and key officers of the maintaining the taxpayer register; management training; Department of Inland Revenue. (b) filing and processing of tax returns; • Limited implementation of existing (c) collection and payment of taxes legislative enforcement provisions— including arrears management. Advisers will continue to encourage OBJECTIVE 2. the authorities to implement existing STRENGTHEN TAX ADMINISTRATION A compliance monitoring tool provisions; CORE FUNCTIONS. for Customer Relationship Officers and Collection Unit was developed. • Limited resources to support Strengthening audit capacity: The review and recommendations targeted programs - staff and Progress is being made with the took into consideration the intention financial inputs—The key would FAD-led/CARTAC initiative to establish of the IRD in acquiring a new be to demonstrate that providing a “Regional Tax Audit Team (RTAT)”. tax administration information additional resources for tax The fourth regional workshop was system. Montserrat was assisted administration reforms usually conducted in the area of auditing in improving its registration, filing pay for themselves in the short to financial institutions. The workshop and assessment processes. A medium-term; benefitted from a presentation made pre-TADAT Assessment training was by the Deputy Director in the Bank • Impact of potential hazards, conducted for the Dominica IRD. Supervision Department of the Eastern specifically natural disasters and The training exposed participants Caribbean Central Bank (ECCB). The health related hazards—The current to the TADAT framework (outlined presentation highlighted the role of pandemic along with the ever- in the TADAT Field Guide) including central banks, and in particular, the present threat of hurricanes create its technical design and content, ECCB and discussed the regulatory incentives to build fiscal space for reflections on tax administration framework, the risk-based super- rebuilding and develop or enhance good practices, and the scoring vision framework and the process business continuity plans and methodology. The objective of the of reviewing financial statements sub-plans; training was to prepare the IRD and key banking ratios. The first for a TADAT assessment, initially three workshops covered general planned for April 2020, but will audit techniques, computer assisted now be conducted in FY2021. audit techniques, Value-Added Tax

22 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC SeCtion III Customs D Administration

Overall Assessment of FY20 Program Implementation In the period, May 2019 Some changes have taken place to Tobago as both administrations had received assistance from elsewhere. to end April 2020, the the program due to shifting priori- ties by governments and, of course, programMACROECONOMIC delivered PROGRAM: TA to 13 by the COVID-19 pandemic.PUBLIC The FINANCEA MANAGEMENT: number of requests for TA in the ACHIEVEMENT OF MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020 customs administrations. resident customs administration customs area were received during . As far as Approximately 448 RPDs adviser participated in an IMF HQ led the course of the year possible, these requests were met or 8% of TA were delivered of 17% mission to Guyana4% to advise on the Fully Not creation of a specialFully petroleum unit at least included in the work plan for Achieved Achieved Achieved the planned 525 RPDs (i.e. within customs to help administer the the coming fiscal year if they could 85.3 per cent), comprising significant work that will be needed as not be addressed immediately. These included requests for TA in Post 260 RPDs delivered by the Guyana’s oil and 25%gas sector expands. 71% The planned TA to the British Virgin Clearance AuditPartially (PCA), training skills, CARTAC Resident Advisor, Largely and risk managementAchieved from the Turks 50% 25% Islands and DominicaAchieved to help prepare Largelyand 188 RPDs by short termPartially disaster preparedness and business and Caicos Islands; additional support Achievedexperts (STX). 13 country-Achieved contingency plans for customs were to Guyana to strengthen the customs specific workshops were replaced in the work plan by TA assign- administration of the oil and gas sector and assistance to strengthen risk delivered, with approximately ments in Bermuda and Trinidad and 174 customs officials taking TAX ADMINISTRATION: ACHIEVEMENT OF CUSTOMS MilestonesCUSTOMS Achievement ADMINISTRATION: FY19 ACHIEVEMENT part. TheMILESTONES regional FY2020 seminars OF MILESTONES FY2020 in Disaster Preparedness 15%Planning for Tax and Customs17% 9% 5% Fully and Developing Trusted Not Fully Not Achieved Trader and Authorized Achieved Achieved Achieved Economic Operator Programs held at the WCO accredited 25%regional training center in43% 29% 57% Largely Santo Domingo, DominicanPartially Largely Partially Achieved Achieved Achieved Achieved Republic was attended by 66 tax and customs officials.

FINANCIAL STABILITY: ACHIEVEMENT OF FINANCIAL SECTOR SUPERVISION: Annual Report 2020 | CARTAC SECTION III: CARTAC FY2020 Program—Implementation and Results | 23 MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020

10% Partially Achieved 20% Fully Achieved 87% 40% Fully Partially 3% Achieved Achieved Largely Achieved 40% Largely Achieved

REAL SECTOR STATISTICS: ACHIEVEMENT OF EXTERNAL SECTOR STATISTICS: MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020 1% 4% 34% Not Achieved Partially Fully Achieved Achieved 73% Fully 23% Largely Achieved Achieved 13% 52% Partially Largely Achieved Achieved management; continued support in customs administrations to collect, Tangible improvements have been the area of risk management and PCA safely store and analyze data about made in several areas including: in Curaçao; TA to strengthen customs trade patterns and behavior and use administration of petroleum imports the product of the analysis to make • Strengthened Risk Management and in St. Vincent and The Grenadines; more intelligent, smarter, interven- Trade Facilitation – Specific tools and more TA in the field of PCA in tions. This will place great emphasis on and frameworks have been designed Barbados as well as training for middle using what you have to obtain the best and are ready to be put into use in managers. The TA requested by St. possible outcome. This evidence-based Anguilla, Bermuda, Belize, Curaçao, Vincent and The Grenadines, Curaçao approach allows for both enhanced Guyana and St. Vincent and The and Barbados were met in full. Turks compliance and revenue security while Grenadines. These tools allow for and Caicos Islands received TA in at the same time facilitating trade the risk assessment of significant risk management (and will receive by faster, easier cargo clearance. To importers and the monitoring of their TA in the other areas in FY21), TA in support advice given at the opera- trading activities to ensure that they the oil and gas sector in Guyana was tional level, the message that both are compliant. This will support both provided by IMF FAD and additional TA compliance and facilitation are possible revenue compliance and effective in risk management was provided by provided the right elements are in trade facilitation by allowing faster, CARTAC. A short visit was made to Sint place and are used has been explained easier clearance for compliant traders Maarten, CARTAC’s newest member, and stressed to comptrollers, collectors and rapid intervention when needed. to discuss the development intentions and commissioners of customs as well The relevant milestone was largely and challenges faced by customs and as Permanent Secretaries at face-to- achieved for Belize and partially to see how CARTAC might assist. face meetings, and by addressing the achieved for Anguilla, Bermuda, Caribbean Customs Law Enforcement Curaçao, Guyana and St. Vincent and The Grenadines. Key Results Council (CCLEC) executive committee meeting. The approach used by • Developing Capacity in Post The cornerstone of TA in the customs CARTAC emphasizes the importance Clearance Audit (PCA) – TA has component of CARTAC has been to of risk management, informed by enabled the increasing use of PCA develop a framework for effective accurate data, and supported by in Barbados, Belize, Dominica and risk assessment of companies accom- effective PCA, limited cargo exam- Curaçao. It is a system of control panied by sound mechanisms for ination, and robust management. that allows for the quick release of monitoring performance and rapid The majority of planned inputs have cargo with errors and revenue loss intervention. A key aspect of this work been in support of this approach. being accounted for and recovered (and a continuing challenge) is helping

24 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC later. Its use is cost effective and • Towards More Effective Staff Impact of COVID-19 gives confidence to customs Deployment in Jamaica - In Jamaica The COVID-19 pandemic has had a administrations that they can safely TA was provided to complete the negative impact on the work plan for reduce traditional controls at analysis of the customs workload to the customs component. While most ports and borders. Its use is also help decision-makers reconfigure CD activities had been completed a requirement of the WTO Trade customs towards 24/7 declaration before the necessary restrictions Facilitation agreement to which all processing and cargo clearance. The on travel came into force there CARICOM members are signatories. relevant milestone was fully achieved. was still disruption to the program. The relevant milestone was fully Missions that were cancelled were: achieved for Dominica, largely • Strengthened Resilience – achieved for Belize and partially The Tax and Customs programs • Dominica – Strengthening risk achieved for Bermuda and Curaçao. co-sponsored a regional workshop management and developing a in Disaster Preparedness Planning trusted trader program (LTX mission) • Strengthened Analytical Capacity - for Tax and Customs at the WCO • The British Virgin Islands - A significant weakness in the accredited regional training center in Strengthening risk management region has been the limited use of Santo Domingo, Dominican Republic and developing analytical capacity data analysis to support customs was attended by 37 tax and customs (LTX mission) administration. TA has been officials. During the workshop, provided to Anguilla, Bermuda, which was held with the support • Trinidad and Tobago – Developing Belize, Curaçao, St. Vincent and The of UNCTAD and the Caribbean a disaster preparedness plan for Grenadines, Dominica, Grenada Disaster Emergency Management customs (STX mission) Agency (CDEMA), participants and Guyana to extract data from • St. Vincent and The Grenadines their declaration processing systems shared the experience of surviving – Reviewing customs controls of and, using excel, to undertake basic Hurricanes Irma and Maria, shared petroleum imports (STX mission) analysis to compare importers, disaster preparedness and business commodities and prices. In this continuity plans and participated • St. Vincent and The Grenadines – way outliers e.g. prices that are in practical exercises to develop Strengthening Post Clearance Audit significantly lower for the same plans. This was followed by a TA (PCA) (STX mission) commodity for different importers, assignment to Bermuda to develop • Barbados – Middle Management can be identified and follow up disaster preparedness and business Training (STX mission). action initiated. Additional TA will continuity plans. The relevant provide more sophisticated methods milestone was largely achieved Some TA has been delivered of data analysis. The relevant for Bermuda. remotely, via conference call or milestone was fully achieved for utilizing other technology such as • Support to the Barbados Economic Belize, largely achieved for Dominica, WhatsApp. The most significant and partially achieved for Anguilla, Recovery and Transformation (BERT) work has been to develop Standard – continued support has Bermuda, Curaçao, Guyana and Program Operating Procedures (SOP) for been provided to Barbados’ Customs St. Vincent and The Grenadines. the Turks and Caicos Islands. This Department to help them meet their work is very necessary to build a obligations under the BERT initiative • Greater Control of the Petroleum solid foundation for customs going - TA was provided, as and IMF Program. This has included Industry forward but has been on the ‘back part of an IMF HQ led mission, to supporting the development of the burner’ because of higher priority strengthen Guyana Customs’ ability trusted trader program (TTP) which matters that require immediate to manage the rapidly growing oil will allow for much faster cargo attention. The COVID-19 outbreak and gas sector. This area will demand clearance for compliant companies gives an opportunity to address significant attention from customs and so reducing costs to both some of these useful but neglected and the TA gave detailed advice on importers and consumers. Practical areas. It is also the kind of work that the establishment of a dedicated support has been given to the is well suited to remote working. Customs Petroleum Unit (CPU) to Canadian funded long-term adviser The template being developed centralize customs administration of to the customs department. This has will be rolled out to other member this industry. Additional TA has been included TA to assist her work and administrations, including Anguilla provided by IMF FAD. The relevant practical, logistical and administrative and St. Vincent and The Grenadines, milestone was partially achieved. support to workshops and events that should the travel restrictions in are part of her program. place continue for some time.

Annual Report 2020 | CARTAC SECTION III: CARTAC FY2020 Program—Implementation and Results | 25 Risks and Risk ŠŠ Few active WCO members – Not all customs administrations Management in the region are members of A number of risks remain and the WCO, and this means that limit effective implementation the majority of customs are not of reforms. These include: fully exposed to cutting edge customs issues and the latest • Very Limited Data and Poor policy discussions, nor do they – Responses to Data Requests take advantage of the high- Repeated requests have been quality advice, guidance and sent to CARTAC members for data administration tools that are to establish revenue collection, available to WCO members. performance benchmarks, staffing levels, and to help monitor and • Legislation – the CARICOM model evaluate progress. Responses to legislation for customs developed these requests have generally with the assistance of CARTAC been poor and, in order to help has not yet been adopted by all obtain the benchmarking data the members. This legislation fully following steps are being taken: supports PCA, advanced rulings, risk management and other ŠŠ Raising the issue with CARTAC’s important aspects of customs Steering Committee and at administration. To support the face-to-face meetings with legislation FAD and CARTAC permanent secretaries; assisted in the development of ŠŠ Raising the issue in face-to-face standardized procedures for meetings with comptrollers customs that include details of during TA visits; PCA operations. The law and the new procedures should ŠŠ Asking participants to bring the be fully exploited by customs required data with them when administrations. they attend CARTAC events. Risks continue to be managed • HR Restrictions – most customs by continued engagement with administrations in the region stakeholders and by, as far as do not have control over HR possible, planning. The very matters. Typically, this is done limited responses to data requests by an independent Public that has a negative impact on Service Commission (PSC) that measuring improvement in customs is responsible for recruitment, performance is an ongoing remuneration, deployment and and significant risk – it will be discipline. The effect is very mitigated by close engagement limited control by customs with authorities and requests to over very significant areas of Steering Committee members management: disciplinary issues to follow up on this issue. are slow to be resolved; the reward system is unbalanced and has not kept pace with modernization; and comptrollers are often unable to deploy or redeploy officers to meet needs.

26 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC MACROECONOMIC PROGRAM: PUBLIC FINANCE MANAGEMENT: ACHIEVEMENT OF MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020

8% 17% 4% Fully Not Fully Achieved Achieved Achieved

71% 25% Partially Largely Achieved 50% 25% Achieved SeCtion III Largely Partially Achieved Achieved Financial

Stability TAX ADMINISTRATION: ACHIEVEMENT OF CUSTOMS ADMINISTRATION: ACHIEVEMENT MILESTONES FY2020 OF MILESTONES FY2020

E 15% 17% 9% 5% Fully Not Fully Not Achieved Achieved Achieved Achieved

25% 43% 29% 57% Largely Partially Largely Partially Achieved Achieved Achieved Achieved

Overall Assessment of FY2020 Program Implementation

The Financial Stability (FinStab) Financial Stability: achievement of Milestones FY2020 FINANCIAL STABILITY: ACHIEVEMENT OF FINANCIAL SECTOR SUPERVISION: program successfully completed MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020 the majority of the FY20 work plan despite the cancellation of missions 10% arising from the COVID-19 pandemic. Partially Achieved 20% The program delivered 296 Resource Fully Person Days (RPDs) out of a planned Achieved 328 RPDs (90 per cent of the plan) 87% 40% Fully Partially with 87 percent of milestones fully 3% Achieved Achieved Largely achieved. Success with the achieve- Achieved 40% ment of milestones reflect strong Largely execution of recommended action Achieved plans by country authorities to: develop financial health and stability indicators and stress testing frame- REAL SECTOR STATISTICS: ACHIEVEMENT OF EXTERNAL SECTOR STATISTICS: works for bank and non-bank financial Insurance sector supervisorsMILESTONES from the FY2020Key Results ACHIEVEMENT OF MILESTONES FY2020 sector supervisors; implement CARTAC ECCU, Jamaica, Barbados, Trinidad Banking sector supervisory staff are training on monitoring wide-spread and Tobago, Guyana, and Cayman 4% 1% correspondent banking relationships Islands are now able to implement able to prepare stress testing reports34% Not Achieved Partially Fully (CBRs) withdrawal pressures; and, using the model and training provided pandemic stress scenario analysis in Achieved Achieved apply training on network analysis to order to mitigate its effects on finan- by CARTAC. Banking sector stress monitor financial contagion risk. Of cial stability.73% These new remote TA testing methodologies and frameworks the total RPDs, 215 were used fielding Fully received essential23% upgrades at Bank missions replaced missions cancelled Largely Achieved of Jamaica and Central Bank of technical assistance (TA) missions due to travel restrictions arising from Achieved 13% Trinidad and Tobago. These countries52% Partially by the Resident Adviser and 81 for the spread of COVID-19. The cancelled Largely Achieved TA missions by short-term experts. missions included implementing the were relying on predominantly Achieved CBRs monitoring toolkit at the Central banking sector stress testing models In response to TA needs related to Bank of Curaçao and Sint Maarten and which were inadequate for properly , the ongoing COVID-19 Pandemic at the Central Bank of Trinidad and assessing systemic risks. FinStab TA CARTAC provided remote TA to help Tobago, and a regional workshop on focused on building staff capacity to insurance sector supervisors assess Systemic Risk Analysis for Caribbean establish more advanced, forward- the potential impact on the sector. Insurance Regulators in Bahamas. looking macro financial scenario-based

Annual Report 2020 | CARTAC SECTION III: CARTAC FY2020 Program—Implementation and Results | 27 stress testing frameworks to conduct filled based on recommendations is faced with looming systemic threats meaningful stress tests to guide from a FY18 CARTAC mission to from large and increasingly complex macroprudential policy. The TA also Cayman Islands concerning selecting regionally important financial groups. supported Bank of Jamaica staff with the organizational structure best In response to these threats, these the implementation of the Fund’s suited for the analysis of financial missions formed part of ongoing TA recently developed Growth-at-Risk stability, defining its core tasks and from CARTAC to address region-wide (GaR) toolkit to quantify macro financial responsibilities and the departments supervisory constraints, highlighted by risks to future GDP growth and to be involved. With continued the collapse in 2009 of a major regional incorporate GaR results in their stress implementation of CARTAC TA financial conglomerate, CL Financial testing frameworks. Based on FY20 recommendations, CIMA can achieve Group, which sent severe financial CARTAC TA, a banking sector stress its strategic objective of effectively repercussions in 15 Caribbean states. testing methodology and framework safeguarding overall system stability. The FinStab program supported the are now being established at the CARTAC helped Belize to strengthen delivery of annual regional workshops Cayman Islands Monetary Authority. the capacity of its macroprudential targeted at non-bank financial sector In countries where stress testing body in taking decisions to undertake supervisors which helped strengthen was not being applied for the macroprudential policy action. In macroprudential surveillance and assessment of systemic risks by particular, CARTAC fielded a mission analysis. Three of these regional non-bank regulators, CARTAC to guide the Central Bank of Belize workshops were jointly conducted helped establish robust stress testing in strengthening its macroprudential by the FinStab and Financial Sector frameworks. Insurance sector stress policy framework and reinvigorating Supervision work programs and testing training and frameworks the policy process in a manner covered training for the Caribbean were provided for supervisors in consistent with the authorities’ Association of Credit Union Supervisors Anguilla, Barbados, Cayman Islands, commitment to promoting financial conference hosted in Grenada, Dominica, Grenada, Guyana, Jamaica, stability in its strategic plan. Caribbean Group of Securities Montserrat, and Trinidad and Tobago. Regulators (CGSR) conference hosted CARTAC continued its roll out of As the Caribbean is one of the most in Bahamas, and Caribbean Association the CBRs monitoring toolkit to help disaster-prone regions in the world, of Insurance Regulators conference authorities systematically monitor these frameworks included features hosted in Guyana. Following CARTAC the evolution of key drivers of CBR designed to safeguard insurance training and recommendations withdrawals. Use of the toolkit is sector resilience to several potential on integrating climate change- assisting country authorities with shocks from pandemics, natural related risks in monitoring overall developing policy responses to disasters and other climate change- financial system threats at the CGSR mitigate against potential disruption related risks. Concerning credit unions, conference, and in the in the absence to cross-border flows, especially in the Caribbean these institutions of regulatory efforts to incorporate those related to remittances and play a unique role in the financial climate-related financial risk disclosure, trade finance. The FinStab program intermediation process especially for the Jamaica Stock Exchange is supported authorities at the Eastern a large underserved segment of the establishing a National Best Practices Caribbean Central Bank (ECCB) in society. However, they remain largely Award on Climate Change Risk the ECCU and the Financial Services underregulated. A credit union stress Disclosure open to all publicly-listed Commission in Turks and Caicos in testing template and framework companies operating in Jamaica. monitoring and analyzing systemic were established with support from For these workshops, a combined risks associated with cross-border CARTAC, and stress testing capacity total of 131 persons from CARTAC payment flows using the toolkit. implemented at the Financial Services member countries participated. Regulatory Authority in St. Lucia, Appropriate tools of analysis for The FinStab program organized a which will be using the template and financial risk assessment are being technical meeting of regional central framework to actively monitor and put in place. CARTAC fielded two bank staff which helped enhance their address systemic threats in the sector. regional workshops and a TA mission public transparency and accountability. in Jamaica on the application of The Cayman Islands Monetary The purpose of the meeting, hosted by financial sector network analysis and Authority (CIMA) relied on CARTAC the Central Bank of The Bahamas, was contagion stress tests to address TA to establish a Financial Stability to review the analytical content of the systemic risks stemming from the and Statistics Unit (FSSU) in FY20. The draft 2018 Regional Financial Stability highly interconnected financial sectors FSSU was put in place with new posts Report (FSR) for consideration by the in the Caribbean region. The region

28 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC Committee of CARICOM Central Bank and address potential external and Risk and Risk Management Governors. The FSR summarizes the internal shocks that could disrupt main findings of the regional systemic the orderly functioning of the Financial regulatory authorities in the monitoring exercise and disseminates financial system with substantial Caribbean need to deepen collabo- them to target audiences. The FinStab impairment to the real economy. rative efforts to safeguard regional program also assisted authorities financial stability. Rising dominance The program organized a peer-to-peer with developing a plan for regional of cross-border financial groups with attachment at the Bank of Jamaica and national policy responses arising increasing complexity of linkages for four staff from the Central Bank of from country-specific and regional within and across national financial Trinidad and Tobago. The objective systemic threats to financial stability. sectors in the region poses a clear of this attachment was to bring financial stability risk. In this context, The FinStab program developed and together the stress-testing teams the collection of granular data on disseminated analytical templates and from the central banks to discuss bilateral linkages and common expo- manuals on systemic risk indicators shortcomings of their existing banking sures of the financial institutions (SRIs) to upgrade financial stability sector stress testing frameworks operating in the region and the devel- surveillance in the region. To date the with a view to establishing robust opment of a harmonized framework templates and manuals, developed macro-scenario-based stress testing for conducting quantitative analysis with the assistance of a CARTAC frameworks at both institutions. of financial sector interconnected- summer intern, have been shared ness are indispensable for mitigating with central bank staff from Bahamas, the effects on the transmission and Barbados, Belize, Curaçao and Sint amplification mechanism of economic Maarten, Guyana, Jamaica, Suriname, shocks. CARTAC will continue to Trinidad and Tobago and Turks and provide TA support in FY 21 focused Caicos. The SRI templates are helping on hands-on training for monitoring authorities to now actively monitor financial sector interconnectedness.

Annual Report 2020 | CARTAC SECTION III: CARTAC FY2020 Program—Implementation and Results | 29 SeCtion III Financial Sector F Supervision

Overall Assessment of FY20 scheduled for March and April A total of 8 Technical Assistance 2020 were rescheduled to FY21. Reports (TARs) with recommen- H1 Program Implementation dations were generated from TA The Financial Sector Supervision During FY20, the FSS program missions conducted. These reports (FSS) work program conducted 17 hosted 1 summer intern who addressed the following areas: Technical Assistance (TA) missions, conducted research work on including 5 regional workshops the status of the Regulatory and • Basel II/III Implementation during FY20. The TA missions Supervisory Frameworks for Cyber (Belize; Curaçao and St Maarten, comprised several “one-off missions”, Risk Management at regulated and Guyana). multi-year and/or follow-up TA. financial institutions across • IFRS 9 Implementation (Central Bank Most of the TA missions focused on CARTAC member countries. of Suriname – 2; Central Bank of the implementation of Risk-based Curaçao and St. Maarten); supervision (RBS), Basel II/III, IFRS 9 Key Results/Outcomes implementation; and enhancing group- • Consolidated Risk-based Supervision Progress against Results-based wide or consolidated supervision of Banking Groups and Financial Management (RBM) milestones linked of financial groups, which was Conglomerates (Multi- country/ to IFRS 9 (Suriname), Basel II/III (Belize addressed in two regional workshops. Regional); and and Guyana) implementation and The missions were executed over draft securities legislation (Belize) in a combined total of 402 resource • Draft Securities Legislation (Belize) FY 20 were assessed as follows: person days (RPDs) (including 239 RPDs by Short-term Experts) resulting in an execution rate of 85.4 percent vis-à-vis original plan of 471 days. BSR/Financial Sector Supervision and Regulation: Several missions scheduled for FY20 FY20 Milestone Assessment Rating were either rescheduled to FY 21 or cancelled at the request of the RBM Assessment Rating No. of Milestones Assessed in FY 20 authorities. Due to the risks posed by Partially Achieved 4 the COVID-19 pandemic, 2 regional Largely Achieved 4 workshops (including the workshop on Supporting Inclusive Insurance Fully Achieved 2 Markets-Advancing Financial Inclusion and Dealing with Climate Risks”) and 2 bilateral/in-country missions

30 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC MACROECONOMIC PROGRAM: PUBLIC FINANCE MANAGEMENT: ACHIEVEMENT OF MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020

8% 17% 4% Fully Not Fully Achieved Achieved Achieved

71% 25% Partially Largely Achieved 50% 25% Achieved Largely Partially Achieved Achieved

TAX ADMINISTRATION: ACHIEVEMENT OF CUSTOMS ADMINISTRATION: ACHIEVEMENT MILESTONES FY2020 OF MILESTONES FY2020

15% 17% 9% 5% Fully Not Fully Not Achieved Achieved Achieved Achieved

25% 43% 29% 57% Largely Partially Largely Partially Achieved Achieved Achieved Achieved

FINANCIAL STABILITY: ACHIEVEMENT OF Financial Sector SupervisionFINANCIAL: SECTOR achievement SUPERVISION: of Milestones FY2020 OverviewMILESTONES of TA FY2020 Programs ACHIEVEMENT OF MILESTONES FY2020 Delivered Assisted member countries to 10% 20% improve and strengthen financial Partially Fully sector supervision and regulation.Achieved Achieved

87%• Conducted follow-up RBS TA 40% Fully Partially missions to review progress in the3% Achieved Achieved Largely implementation of RBS in the Turks Achieved 40% and Caicos Islands, and St. Lucia. Largely The TA provided were designed Achieved to improve current practices relating to risk assessments, supervisory documentation REAL SECTOR STATISTICS: ACHIEVEMENT OF EXTERNAL SECTOR STATISTICS: (including the preparation of risk- MILESTONES FY2020 intermediaries. A draft versionACHIEVEMENT of OF MILESTONES17 for Insurers FY2020 and Supervisors, focused examination reports) the new legislation was produced and regulatory challenges at the and communicating the results of by the STX and reviewed by the CARTAC sponsored Caribbean supervisory work both internally 4% 34% 1% authorities in the firstFully phase, with Association of InsuranceNot Regulators and externally (i.e. to the Board Partiallyand the accompanyingAchieved regulations to be (CAIR) Workshop/AnnualAchieved Conference management of financial institutions).Achieved drafted in FY21. in June 2019. With support and The missions made recommendations 73% assistance from CARTAC, the Fully to improve the application of the23% Assisted member countries with CAIR has established an IFRS 17 Achieved RBS methodology and accelerateLargely Achieved Basel II/III implementation, and sub-committee to develop action the operationalization of risk-based 52% 13% implementation of Largelyother international plans for IFRS Partially17 implementation and supervision. Achieved Achieved standards (such as IFRS). collaborative response to regulatory • Provided TA on the Management • Conducted follow-up TA missions issues and challenges relating to the of Credit Risk (Supervisory Process to support efforts to implement the adoption of the standard. and Practices for monitoring and Basel capital adequacy framework • Implications of IFRS 9 adoption on conducting Credit Risk Reviews) to in 2 countries (Belize, Guyana). Credit Unions [Caribbean Association Bank supervisors at the Central Bank Both countries have made progress of Credit Union Supervisors (CACS) of Belize (CBB). The mission team towards meeting Pillars 1 and 2 Annual workshop in May 2019]. provided training on monitoring, milestones of the framework. reviewing and assessing credit Strengthen capacity building risk exposures, and assessing the • Following a TA mission in January across CARTAC member countries quality and effectiveness of the 2019, the Central Bank of Trinidad through regional and country-spe- risk management oversight for and Tobago (CBTT) also made cific (bilateral) workshops. commercial and retail lending. progress with Pillar 2 (Basel II) The training also addressed how implementation during FY20. Three of the five regional workshops to incorporate and document the However, full Pillar 1 implementation were conducted in collaboration with results of credit risk reviews within is subject to Ministerial approval of the Financial Stability (FS) program. the CBB’s Risk-based supervisory the new Pillar 1 capital rules. These workshops were geared (RBS) framework that is being towards strengthening regulatory • Provided TA to facilitate the adoption implemented. and supervisory oversight across of IFRS 9 for financial reporting by banking, insurance, securities, and • Commenced multi-year TA to the banks and non-banks in Suriname credit union sectors. In addition Central Bank of Belize on the drafting (Central Bank of Suriname - CBS) and to discussing emerging or topical of a new Securities legislation and Curaçao and Sint Maarten (Central issues (e.g. IFRS 17; FinTech; Climate regulations. The new legislation will Bank of Curaçao and St Maarten). Risk; cyber-risk), the workshops also introduce appropriate legal and focused on consolidated supervision • Conducted survey on Implementation regulatory requirements to support of financial conglomerates and Plans for the Adoption of IFRS 17 capital market activities, including banking groups; and systemic in select member countries. Also the licensing and conduct of market risk surveillance. Updates on work discussed the implications of IFRS

Annual Report 2020 | CARTAC SECTION III: CARTAC FY2020 Program—Implementation and Results | 31 being undertaken by the various of Index-based micro-insurance). Risks and Risk Management sub-committees of the different A regional Framework for regional supervisory associations, and Conducting Supervisory Colleges The regulatory authorities in progress in addressing supervisory for Insurance Groups was adopted several jurisdictions continue to be issues, including cyber risk at the June 2019 Workshop. constrained by inadequate budget management, and the implementation and staffing, and inability to attract of RBS and IFRS were discussed. • Enhancing RBS across Non-banks and/or retain staff with specialized in the ECCU and Barbados (July skills. This sometimes resulted in • Caribbean Association of Credit 2019): The workshop was attended slow progress against milestones, Union Supervisors (CACS) – May by 37 senior supervisors (11 and inadequate capacity to absorb 2019: The workshop was attended males; 26 females) from national and implement TA recommendations by 44 mid to senior level supervisors regulatory agencies in the Eastern linked to multi-year programs. (13 males; 31 females) from 18 of the Caribbean Currency Union (ECCU) Potential mitigating actions include 22 CARTAC member countries. The and Barbados with responsibility revision of the funding model at presentations and panel discussions for the supervision of credit unions, some of the regulatory authorities focused on IFRS 9 Implementation; insurance companies, and other to allow for increased budgets to proportional approaches for credit non-bank financial institutions. The build supervisory capacity. Going union supervision, strategies for workshop also had representations forward, it is important that member dealing with problem credit unions, from the Central Bank of Bahamas, countries continue to adhere to and progress made in enhancing and the Eastern Caribbean Central target dates for milestones linked to the regulatory and supervisory Bank (ECCB) as observers. TA recommendations and assume frameworks for credit unions in ownership and accountability the Eastern Caribbean Currency • Consolidated Risk-based for their implementation. Union (ECCU). Supervision of Banking Groups and Financial Conglomerates • Caribbean Group of Securities (including mixed-activity groups) Regulators (CGSR) Workshop - (June – September 2019: The workshop 2019): The workshop was attended was attended by 46 (16 males; 30 by 28 senior supervisors (12 males; females) senior level staff from 16 females) from 12 CGSR and financial services commissions, CARTAC member countries. The central banks, monetary authorities workshop addressed issues relating and one Deposit Insurance to cybersecurity risk management, Agency from 17 CARTAC member securities fraud, financial countries. The discussion topics, technologies (FinTech), crisis presentations, and break-out management, and climate change- group sessions were designed related financial and systemic risks. to develop recommendations for improving supervisory oversight and • Caribbean Association of Insurance collaboration among regional home/ Regulators (CAIR) Workshop host supervisors, and systemic risk (June 2019): The workshop was monitoring of banking groups and attended by 75 supervisors (23 financial conglomerates (including males; 52 females) from financial mixed-activity groups) in the region. services commissions, central Both the Caribbean Association banks, monetary authorities and of Insurance Regulators (CAIR) other regulatory authorities from and Caribbean Group of Banking most of the member countries of Supervisors (CGBS) have established CARTAC. Key focus areas included sub-committees to address issues IFRS 17 implementation, systemic relating to group-wide and cross- risk monitoring, addressing current border supervision. gaps in group-wide (consolidated supervision) of Insurance Groups, Inclusive Insurance (introduction and regulatory/supervisory oversight

32 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC MACROECONOMIC PROGRAM: PUBLIC FINANCE MANAGEMENT: ACHIEVEMENT OF MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020

8% 17% 4% Fully Not Fully Achieved Achieved Achieved

71% 25% Partially Largely Achieved 50% 25% Achieved Largely Partially Achieved Achieved

TAX ADMINISTRATION: ACHIEVEMENT OF CUSTOMS ADMINISTRATION: ACHIEVEMENT MILESTONES FY2020 OF MILESTONES FY2020

15% 17% 9% 5% Fully Not Fully Not Achieved Achieved Achieved Achieved

SeCtion III 25% 43% 29% 57% Largely Partially Largely Partially Real SeAchievedctor Achieved Achieved Achieved Statistics

FINANCIAL STABILITY: ACHIEVEMENT OF FINANCIAL SECTOR SUPERVISION: G MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020 10% Partially Achieved 20% Fully Achieved 87% 40% Fully Partially 3% Achieved Achieved Largely Achieved 40% Largely Achieved Overall Assessment of FY2020 Program Implementation

The Real Sector Statistics (RSS) Real Sector SREALtatistics SECTOR M STATISTICS:ilestones ACHIEVEMENT Achievement OF FY2019 EXTERNAL SECTOR STATISTICS: work program delivered during MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020 FY2020 was consistent with the log frame presented at the May 2019 1% 4% 34% Not Achieved Steering Committee–supporting Partially Fully the improvement of methodologies Achieved Achieved and compilation practices to better measure economic growth and 73% Fully 23% inflation in the region through the Largely Achieved adoption of good practices and Achieved 13% 52% Partially the latest internationally accepted Largely Achieved guidelines and standards. Technical Achieved assistance (TA) delivery through to the end of April 2020 is expected to be around 95 percent; with 446 days of TA delivered compared to Partly offsetting these activities, workshop was conducted in St. Lucia 470 days planned, due mainly to was additional remote TA delivery during September 30-October 4, 2019 the spread of COVID-19 restricting on finalizing the supply and use to build the capacity of 39 officials mission travel in March and April tables (SUT) and rebasing the GDP from 22 countries and the Eastern 2020. A regional workshop on estimates for St. Lucia and reviewing Caribbean Central Bank (ECCB) in compiling the supply and use tables the preliminary SUT for Aruba. reweighting the CPI and improving (SUT) and rebasing GDP, and the data collection and methodology. St. Kitts and Nevis SUT compilation In terms of milestone achievement, While the regional workshop on mission and Sint Maarten GDP review 73 percent of milestones were fully compiling SUTs and rebasing GDP mission were postponed to FY2021. achieved, 23 percent were largely planned for March 2020 had to be In addition, TA missions to Belize achieved, and 4 percent partially postponed until October 2020; and Jamaica to review the final SUT achieved. Of the 446 days of TA the workshop presentations and and rebased GDP estimates, and delivered, 261 days (59 percent) other training materials have been to the British Virgin Islands to assist were delivered by the RSS Resident circulated to the Heads of NSOs with reweighting the consumer Advisor, 182 days (41 percent) were and the counterpart staff selected price index (CPI) were postponed delivered by STXs, and 3 days were to participate in the workshop. at the request of the authorities. delivered by IMF staff. A regional

Annual Report 2020 | CARTAC SECTION III: CARTAC FY2020 Program—Implementation and Results | 33 Key Results/Outcomes Advice was provided to Barbados policy and surveillance purposes. in compiling the preliminary annual The Department of Statistics in The Considerable efforts are being made GDP by economic activity (GDP-P) Bahamas commenced disseminating by countries in FY2020 in meeting and GDP by expenditure (GDP-E) quarterly GDP-P estimates in May milestones to improve the quality of estimates for 2019. The preliminary 2019 and have now commenced their annual national accounts and SUT for Bermuda was reviewed compiling quarterly GDP-E estimates building their technical capacity. and assistance was provided with using a new compilation system, With CARTAC assistance, the national rebalancing the SUT to produce the developed with CARTAC support. The statistics offices (NSOs) in The benchmark GDP estimates. Assistance Central Statistics Office in St. Vincent Bahamas, Grenada, Guyana, St. Kitts in compiling and finalizing the revised and The Grenadines has recently and Nevis, St. Lucia, St. Vincent and current price and rebased constant commenced disseminating quarterly The Grenadines and Trinidad and price GDP estimates was provided for GDP-P current price estimates. Tobago have been improving the Bermuda (disseminated in November Further assistance was provided to annual GDP compilation methodology, 2019), St. Lucia (disseminated in March the Central Statistics Office in Trinidad consistent with the 2008 System of 2020), and for Guyana (expected and Tobago to improve the quality National Accounts (2008 SNA); as well to be released in late April 2020). of the quarterly GDP-P estimates. as, developing SUT frameworks and For Haiti, a remote TA mission was collecting the input data required. undertaken to review the balanced Progress is also being made by Remote TA to review the preliminary SUT and rebased GDP estimates, and countries to improve prices statistics SUT, and a follow-up TA mission provide advice to help finalize the and inflation management. Assistance to build staff capacity and review estimates for release in May 2020. was provided to build institutional the national accounts concepts, capacity, improve the CPI compilation sources and methods, and revised Significant progress has been made methodology, review the Household GDP estimates was conducted for by countries in compiling and Budget Survey (HBS)/Survey of Aruba. The 2013 SUT and revised disseminating quarterly national Living Conditions (SLC) household GDP estimates were finalized and are accounts estimates, providing consumption expenditure data, and expected to be released in April 2020. timely growth data for economic update the CPI expenditure weights for

34 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC the NSOs of Barbados, Belize, Grenada, estimates, and the conduct of the data collections like the HBS and Jamaica, St. Kitts and Nevis and St. Census of Population and Housing for ongoing annual and sub-annual Vincent and The Grenadines. The in a number of countries. Field data business surveys makes it difficult to revised CPI for Jamaica is expected to collection activities have been cut back sufficiently improve the quality of the be released in May 2020. Assistance significantly, with fewer prices and national accounts and price indices. It was also provided to the Bureau of other economic data being collected. also severely limits the amount of TA by Statistics of Barbados to build staff Advice is being provided to NSOs CARTAC and other providers that can capacity and finalize the rebased retail on alternate approaches, such as be absorbed; and slows the pace of price index to be released in April reducing data collection in the field to development for real sector statistics. 2020, and the rebased producer price core prices and economic indicators; indices to be disseminated later in and using telephone interviewing, The support of key data users in the 2020. Both indices have been shared approximate indicator data from Central Banks and the Ministries of with key data users within the Barbados administrative data and websites, self- Finance, as well as the IMF mission Government. In addition, a regional enumerated mail out questionnaires teams, is needed to address these training workshop was conducted with postpaid envelopes for mail back, risks. Mitigating actions being taken during September 30-October 4, 2019 and handing out self-enumerated by CARTAC missions and the NSOs to strengthen the technical capacity questionnaires and providing include lobbying of the authorities of price statisticians from 22 countries collection boxes at airports for visitor to improve budgets and staffing; and the ECCB to review HBS/SLC expenditure surveys. It is also likely that making data users more aware of data household consumption expenditure benchmark surveys planned for 2020 quality limitations and soliciting their data, aggregate and quality adjust that are needed to compile the SUTs support to improve data collection the data to produce updated and rebase the CPI and GDP will be and statistical techniques; workshop expenditure weights for the CPI postponed, and this will mean longer training and other capacity building; basket, improve the CPI methodology, time will be needed to complete these and improved documentation of and compile rebased CPI series. projects. In addition, it is likely that concepts, sources and methods. those NSOs conducting the Census CARTAC is continuing to coordinate its this year will be postponing it to next Risks and Risk Management activities with other TA providers that year, and this will impact on their are supporting real sector statistics While the COVID-19 pandemic had capacity to host TA missions in FY2022. development, especially Statistics a limited impact on the FY2020 Canada. This includes participating work program delivery, it will have Inadequate budgets and staffing in coordination meetings and sharing a more significant impact on FY2021 of most of the NSOs in the region information on upcoming TA activities TA delivery. One of two regional continues to be a major constraint in in the region to avoid duplication, workshops and three out of 24 building resilience and improving real especially with the Caribbean missions planned for FY2020 had to sector statistics. There has been little Community (CARICOM) Secretariat be postponed. Given the likelihood change in the resources of most of and the Canadian Government of staff of NSOs not returning to work the NSOs in CARTAC member states funded Project for the Regional and travel restrictions continuing in the past five years. As a result, it Advancement of Statistics in the during May and early June 2020, it takes longer for the NSOs in those Caribbean (PRASC) project being has been necessary to cut back the member states to achieve their objec- delivered by Statistics Canada. FY2021 work program and schedule tives. Rebasing of the CPI and GDP TA missions from late June onwards. In planned for 2019 or 2020 will now not addition, the five missions planned for be completed until late 2022 or 2023, June and July 2020 can potentially be and several NSOs have revised the conducted remotely, with work from real sector statistics milestone comple- home TA, in case the travel restrictions tion target dates. High staff turnover continue through to end July. due to inadequate pay and lack of opportunity for merit-based promotion The COVID-19 pandemic is also having results in national accounts and price a significant impact on the production statistics units being understaffed. of core economic indicators, such as Insufficient funding for benchmark the monthly CPI and quarterly GDP

Annual Report 2020 | CARTAC SECTION III: CARTAC FY2020 Program—Implementation and Results | 35 MACROECONOMIC PROGRAM: PUBLIC FINANCE MANAGEMENT: ACHIEVEMENT OF MILESTONES FY2020 ACHIEVEMENT OF MILESTONES FY2020

8% 17% 4% Fully Not Fully Achieved Achieved Achieved

71% 25% Partially Largely Achieved 50% 25% Achieved Largely Partially Achieved Achieved

TAX ADMINISTRATION: ACHIEVEMENT OF CUSTOMS ADMINISTRATION: ACHIEVEMENT MILESTONES FY2020 OF MILESTONES FY2020

15% 17% 9% 5% Fully Not Fully Not Achieved Achieved Achieved Achieved

25% SeCtion III 43% 29% 57% Largely Partially Largely Partially Achieved EAchievedxternalAchieved Sector Achieved Statistics FINANCIAL STABILITY: ACHIEVEMENT OF FINANCIAL SECTOR SUPERVISION: MILESTONESH FY2020 ACHIEVEMENT OF MILESTONES FY2020 10% Partially Achieved 20% Fully Achieved 87% 40% Fully Partially 3% Achieved Achieved Largely Achieved 40% Largely Achieved Overall Assessment of FY2020 Program Implementation

REALThe SECTOR delivery STATISTICS: of FY2020 ACHIEVEMENT Work Program OF EXTERNAL Sector StatisticsEXTERNAL Milestones SECTOR STATISTICS: Achievement FY2019 on ExternalMILESTONES Sector FY2020Statistics (ESS) was ACHIEVEMENT OF MILESTONES FY2020 broadly consistent with the logframe 1% presented at the May 2019 Steering4% 34% Not Achieved Committee. In line with its strategicPartially Fully Achieved objective, the CARTAC technical Achieved 73%assistance (TA) on ESS for FY2019 continued to support CARTAC member Fully 23% Largely Achievedcountries in strengthening compilation Achieved 13% and dissemination of cross-border 52% Partially Largely statistics presented in the balance Achieved Achieved of payments (BOP) and international investment positions (IIP), following the internationally accepted statistical standard, the sixth edition of the IMF Balance of Payments and International be delivered as remote TA during the context of the ongoing the Investment Position Manual (BPM6). March-April 2020 (Three TA missions COVID-19 crisis; Reliable ESS are essential for informed and a regional training workshop economic policy making by country’s were rescheduled for FY2021). • STXs conducted five TA country authorities and IMF’s surveillance. missions (66 percent of the 153 The allocation of RPDs by RPDs planned), one of them The execution of the FY2020 ESS resource type was as follows: an offsite mission delivered in work program fell somewhat short CARTAC’s office given security of the initial plan, with 85 percent • The long-term expert (LTX) issues in the beneficiary of the 389 Resource Person Days delivered 94 percent of the 217 country; and (RPDs) initially planned. The under- RPDs planned, which account execution is explained by absorptive for nine TA missions (inclusive of • IMF staff conducted two TA TA constraints in understaffed remote TA), a regional training missions and jointly conducted compiling agencies. Travel workshop and backstopping with the LTX a regional training restrictions due to the ongoing short-term expert (STX) missions. workshop (the 37 RPDs planned COVID-19 crisis also impeded the Remote TA (43 RPDs) was deployed were executed). delivery of some TA that could not to continue assisting countries in

36 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC Figure 12. RBM Outcomes: Milestones by Ratings (% of total milestones targeted for FY2020)

Staff capacity increased 60%

Metadata released

Better formatting/framework presentations 50% and/or assistance to users

Internal consistency

Legal & Institutional Environment & 40% Management & Institutional Integrity

Improved timeliness

Classification 30%

Longer time series

Coverage and scope 20% Statistical techniques

Concepts and definitions 10% New data set

Source data are adequate

0% Not Achieved Partially Achieved Largely Achieved Fully Achieved

The regional workshop on external Key Results Economic Statistics Office (ESO) debt statistics (EDS) for the Eastern submitted annual balance of payments Caribbean Currency Union (ECCU) Countries have made progress toward and international investment position was conducted in November 2019 the achievement of relevant outcomes. (IIP) in the international standard and the workshop on cross-border As established in CARTAC Phase V, presentation to the IMF’s Statistics statistics for special purpose entities the work program on ESS focuses on Department (STA) for redissemination; (SPEs) planned for April 2020 was key quality dimensions of members’ (ii) ESO agreed on working towards rescheduled for FY2021 given the ESS identified as outcomes in the IMF’s including financial corporations without ongoing COVID-19 crisis. The regional Result Based Management system physical presence in ESS in coopera- workshop on EDS for the ECCU was (RBM): source data, statistical tech- tion with the Cayman Islands Monetary jointly organized with the Eastern niques, coverage and scope, new data Authority (CIMA); (iii) CIMA submitted Caribbean Central Bank (ECCB) set, longer time series, among others. first-time international liquidity data to in November 2019 (25 RPDs) and The compilation frameworks in most STA; and (iv) CIMA produced prelim- assisted the eight ECCU member countries have been extensively revised inary estimates for direct investment countries and the ECCB in better following BPM6 guidelines. Overall, the (DI) equity liabilities of the invest- aligning EDS to relevant international achievement of relevant milestones by ment funds by counterpart country. standards. The workshop had the key outcomes has been satisfactory participation of officials from ECCB, during FY2020. As shown in Figure 1, Guyana also disseminated quarterly IIP national statistics offices and debt 49 percent of milestones targeted for statistics for first time. As part of the management units of the minis- FY2020 have been largely achieved work plan established by a CARTAC tries of finance of the ECCU. The and 36 percent fully achieved. The TA mission conducted in previous workshop on cross-border statistics following paragraphs describe most years, the Bank of Guyana compiled for SPEs planned for April 2020 was relevant results achieved by countries. and submitted quarterly IIP statistics to postponed to first part of FY2021. STA in January 2020. Guyana currently Assisted by the June 2019 mission, compiles improved quarterly BOP and Cayman Islands achieved the following IIP statistics following BPM6 guidelines. milestones: (i) for the first time, the

Annual Report 2020 | CARTAC SECTION III: CARTAC FY2020 Program—Implementation and Results | 37 Suriname and Haiti have prepared The September 2019 mission assisted Risks and Risk Management revised BOP and IIP statistics in both agencies in producing stayover the BPM6 format and planned visitor expenditure statistics on an Resources are still not commensurate to release them in 2020. Recent annual basis from the 2018/2019 VES. with statistical needs. Understaffing CARTAC missions to the Bank of Haiti The information will be useful for and staff turnover in most countries (February 2020) and the Central Bank balance of payments statistics and continue affecting traction of of Suriname (March 2020) assisted give insights for economic analysis CARTAC TA and the path to further compilers in reviewing source data of the tourism sector. The July developments of the ESS in the region. and compilation techniques already 2019 mission to the Department of CARTAC TA focuses on assisting adjusted to the BPM6 guidelines. As Statistics of Antigua and Barbuda countries in addressing the most outlined in action plans agreed with and the April 2020 mission to relevant statistics issues in a sequential authorities, countries will start to Grenada Tourism Authority way given the current allocation of disseminate ESS in the BPM6 format assisted in producing quarterly resources. Follow-up and supporting by the second quarter of 2020. The visitor expenditure statistics. activities on-site and remotely are number of countries producing ESS The Department of Statistics of also undertaken when necessary. in the BPM6 format have increased by Antigua and Barbuda have also COVID-19 Crisis: The implementation 14 since the launch of CARTAC work disseminated annual and quarterly of action plans in most of CARTAC’s program on ESS in October 2013— tourism reports on its website. member countries will be affected only 6 member countries were using by the ongoing COVID-19 crisis. the BPM6 guidelines at that time. In addition to disruptions to the Antigua and Barbuda, Dominica, normal business process in compiling Grenada, St Kitts and Nevis, St Lucia agencies, the crisis is challenging for and St Vincent and The Grenadines existing procedures for data collection. received CARTAC missions during Compiling agencies in some CARTAC September 2019-April 2020, which member countries have already been assisted in back casting the historical forced to suspend VES, which are time series of BOP statistics compiled carried out by personal interviews at following the former methodology. airports to ensure quality information, With CARTAC’s assistance, national due to flight cancellations and country statistics offices (NSOs) produced social distancing measures. CARTAC revised time series for 2000-2013, TA is already assisting countries to addressing relevant breaks with review VES procedures and develop the BPM6 methodology used since alternative or supplementary data 2014. In coordination with the ECCB, sources. Most CARTAC member further CARTAC TA will assist NSOs countries have already incorporated in the preparation of final output online or email-based business surveys. tables, which are targeted to be However, response rates to business disseminated by December 2020. surveys could also be affected by the closure of businesses and a less St Vincent and the Grenadines, favorable business environment. In line Antigua and Barbuda and with CARTAC TA recommendations Grenada have also made further previously provided to address improvements to visitor expenditure nonresponse, compiling agencies will surveys (VES), which are used for need to further exploit administrative balance of payments statistics. data to address data gaps. CARTAC has been assisting St Vincent and The Grenadines in building capacity within the Statistical Office and the Tourism Authority to conduct sound VESs.

38 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC BOX 3: CARTAC—Key Achievements and Unfinished Reform Agenda

Building economic institutional capacity is a long-term effort that requires strong ownership, sustained cooperation, and close collaboration with country authorities. The Caribbean Technical Assistance Center (CARTAC) works with its 23 member countries to strengthen their economic institutions and empower the people who run them. Since 2001, CARTAC has facilitated peer-to-peer learning and provided hands-on advice and on-the-ground training in areas that are important for achieving inclusive and resilient growth. Like all IMF regional capacity development centers, CARTAC is tailored to the region’s priorities and works closely with member countries and partners to respond quickly to emerging needs. Sustained engagement and ownership ensure results. The following are some key achievements over the last five years:

Public Financial Management (PFM). Revenue Mobilization. Well-designed Macroeconomic Statistics and More transparent, more effective, and administered tax systems help Forecasting. Comprehensive, quality and more efficient management of countries finance the infrastructure data and frameworks provide a government budgets helps ensure and social spending needed to more accurate understanding of cost-effective and high-quality meet growth and development a country’s economy, risks, and public services. CARTAC helps objectives. CARTAC helps countries opportunities, which supports more countries move closer to core PFM improve revenue administration informed policies. CARTAC helps standards, strengthening budget and governance; strengthen core countries build institutional capacity, preparation, execution and control, functions of these institutions; and promote regional harmonization, modernizing legal frameworks, bolster risk management frameworks improve the quality of key statistics, building fiscal risk management and post-clearance audits. and develop macro-fiscal frameworks and climate resilience capacity. in support of the annual budget. • 20 countries have a single • Development and compilation • Improved budgetary process has administration responsible for of quarterly GDP estimates for lifted aspects of budgeting, including the collection of direct and 9 countries gender responsiveness in 12 indirect taxes. • SUTs completed in 5 countries countries to international standards. • 11 countries established • Significant progress in SOE headquarters function to carry • 14 NSOs have improved the annual monitoring to reduce fiscal risk and out strategic planning, support GDP-P methodology and use more debt build attributable to assumption program development and representative prices, and value/ of debt of SOEs. performance monitoring. volume indicators. • Better production and auditing • 10 countries are now managing • Annual GDP-E estimates improved of financial statements increased taxpayers using segmentation, for Barbados, Bahamas and Bermuda. transparency of fiscal accounts by establishing large taxpayer • CPI reweighting completed aligned with international standards. operations or by having a large by 6 NSOs (medium) taxpayer program • Better reconciliation/consolidation • 12 countries produce BOP and IIP improved data quality in 16 countries. • 11 countries have enhanced risk statistics (11) following the latest management and data quality • Post hurricane PFM effectiveness international standards (BPM6l). through CARTAC’ data analytics reviews completed in 4 countries. program. • Coherent macro frameworks • PFM Legislation passed in underpin the national budget in 12 • 8 countries now have risk Barbados, PEFA 2016 training countries. management frameworks at conducted in Anguilla followed by customs, while 7 countries conduct • 6 countries have economic policy a PEFA assessment piloting gender Post-Clearance Audits. capacity in ministries of finance or indicators. equivalent. • Economic forecasts produced annually and integrated with the budget in 12 countries. • Medium-term strategy papers produced in 13 countries.

Annual Report 2020 | CARTAC SECTION III: CARTAC FY2020 Program—Implementation and Results | 39 Financial Sector Supervision and The Unfinished Reform Agenda Financial Stability. Modernizing financial systems and bolstering Over the years CARTAC has focused and fiscal frameworks for disaster banking supervision improves a on some core activities to provide and climate change risks are other country’s financial stability, which fuels capacity development in areas that essential activities. The new program domestic growth and international address the key challenges the region to be introduced this year will help trade and provides a stable faces—high public debt, low growth strengthen debt management framework for financial inclusion. and financial sector fragility. These practices, assist in deepening domestic CARTAC recognizes that the financial fundamental areas continue to be in debt markets as well initiate the sector in its member countries is high demand by member countries, development of climate-related debt particularly vulnerable to internal and including public financial management instruments to help manage these external shocks. TA Support focuses strengthening, revenue mobilization, risks. The expansion in the Center’s on capital adequacy standards, diagnostic fiscal assessments (PEFA and role into a climate and resilience IFRS, risk-based supervision, and TADAT), macroeconomic statistics and workstream is supported by all developing financial stability reports forecasting and financial sector stability stakeholders. The workstream, cutting and crisis prevention frameworks. and supervision. These core capacity across all sectors, was successfully development areas form the bedrock launched in FY2020 and will be further • All member countries have made for maintaining and strengthening entrenched over the medium-term. progress, albeit in varied degree in the institutional framework needed Other emerging challenges include developing capacity and expertise to foster inclusive growth necessary to supervise banks and non-banks, developing capacity to supervise to improve social outcomes. Some of and regulate risks associated with including insurance companies and the activities in these areas are aimed credit unions. cyber security and crypto currencies; at maintaining the stock of human strengthening AML/CFT frameworks • Provided training and TA on the capital to run these institutions and to address the risk of withdrawal of implementation of risk-based avoid attrition due to migration and correspondent banking relationships supervision for bank and non-bank retirement. However, there is also a (CBR); and mainstreaming gender financial institutions, including large unfinished agenda related to sensitivity throughout all CARTACs cross-border supervision of large raising the standard of institutions to programs. The current lockdown to insurance groups and financial international best practice in PFM, slow the spread of the COVID-19 conglomerates. macroeconomic statistics and financial virus has brought to the fore the sector regulation and supervision. • Provided training and technical need for more ubiquitous digital Indeed, many of the financial sector advice on the implementation of payment systems accessible to formal vulnerabilities exposed by 2009 the Basel II/III Capital Adequacy businesses, informal sector actors global financial crisis are still to be Standard and IFRS 9 in several and vulnerable households. As these addressed, while the use of statistics member countries. payments systems develop, regulation for evidence-based decision making and supervision of cyber risks and • Developed financial health and remains an unfulfilled promise. digital currencies will become even stability indicators for non-bank Recent natural disasters have increased more important. Similarly, there will financial sectors and began stress demand for technical assistance in be a greater need to strengthen AML/ testing them to assess capital several areas to support building CFT frameworks and other systems adequacy and reduce risk of crisis resilience to climate-related and other to manage the risk of withdrawal contagion across the financial systemic risks. These areas include, CBRs. CARTAC has led the way system (11 countries). developing policy frameworks that among RTACs in incorporating gender • Development of a crisis contingency internalize the risk and cost of natural budgeting and monitoring the effects plan in 4 countries including to disasters in macro frameworks and gender sensitive policies in its PFM enhance financial sector resilience debt sustainability analysis; and program. Already participation in to shocks including natural disasters. assisting in production of timely CARTAC training is heavily skewed • IMF’s Correspondent Banking macroeconomic statistics to support toward females reflecting the Relationship (CBR) monitoring policy making. Strengthening financial composition of Caribbean public toolkit to systematically assess the sector resilience, building capacity services. Going forward, it would evolution of key drivers of CBR to access insurance and financial be important to further integrate withdrawals to protect financial markets to manage disaster risks, gender sensitivity in all work programs inclusion and stability implemented stress testing of financial systems in line with Caribbean realities. 12 countries.

40 | SECTION III: CARTAC FY2020 Program—Implementation and Results Annual Report 2020 | CARTAC CARTAC IN ACTION

RTAT - Training Program, St. Kitts

RTAT - Training Program, St. Kitts

Annual Report 2020 | CARTAC | 41 Canada Supports Debt Management in the Caribbean Farewell to Partner Representatives

CARTAC - Summer Intern

MAC - Fiscal Strategy Report Mission, Bahamas, Oct 2019

MCM Risk Based Supervision Workshop, St. Vincent, July 2019 Safeguards Assessment Seminar, February 2019

Safeguards Assessment Seminar, February 2019 Safeguards Assessment Seminar, February 2019

42 | Annual Report 2020 | CARTAC CUSTOMS - Strengthening Post CUSTOMS - Developing a Trusted Clearance Audit, Barbados Trader Program, DR, Nov 2019

HQ Seminar on Strengthening Resilience, Washington DC, Dec 2019

CUSTOMS - Developing a Trusted Trader Program DR, Nov 2019 SC Meeting, Nov 2019

HQ Seminar on Strengthening Resilience, Washington DC, Dec 2019

SC Meeting, Nov 2019

STA - Price Statistics Workshop St. Lucia, Oct 2019 STA -Price Statistics Workshop St. Lucia, Oct 2019

Annual Report 2020 | CARTAC | 43 Canada Supports Debt Management in the Caribbean Section IV Work Program for FY2021

Annual Report 2020 | CARTAC 45 SeCtion IV Work Program A overview for FY2021

Assisting member countries in While the near-term changes have executed in FY2020. The distribution recovering from the effects of the caused some disruption of planned of resources allocated to climate/ COVID-19 pandemic would be a activities, our work remains anchored resilience is provided in Figure 15. key determinant of the near-term in the medium-term priorities to As in FY2020 the bulk of the resources CARTAC work program. The outbreak strengthen fiscal and financial will come from MAC, Tax, PFM and of the COVID-19 virus and widespread systems, macro frameworks and some from the newly introduced lockdown to slow its transmission have statistical systems. The requested debt management program. worsened the outlook for Caribbean changes are generally consistent with economies. This has required medium-term priorities and many As priorities are shifting, CARTAC significant reprioritization of sector of the good practices identified for will remain flexible and responsive in workplans to help countries repair natural disasters are fully transferable its support to its member countries. government finances in the context to the current situation. In the Assisting member countries in of existing budgetary resources. expectation that non-essential travel repairing their economies from the restrictions will continue during May effects of the COVID-19 pandemic to July 2020, CARTAC will continue would place further demand on to assist member states remotely. CARTAC’s limited resources. This would require us to budget flexibly to Box 4: The New Debt Planned CD activities will increase to include such activities and reprioritize Management Program 5073 RPDs in FY2021 compared with medium-term workplans in the 4730 planned in FY2020. Barbados, absence of additional resources. A new debt management program Trinidad and Tobago, and Dominica We thank our partners for their was envisaged following country will be the top beneficiaries in FY2021 continued support and guidance as demands to assist with strengthening (Figure 13). With much work expected we work together to adapt CARTAC’s their domestic debt markets and the to repair government finances, Tax work program and delivery modalities management of risks in their debt Administration and PFM will remain during these extraordinary times to portfolios. This new program will the largest programs followed by best tailor our TA efforts in order to provide debt management advisory Financial Sector Supervision (Figure help our members manage through services to help strengthen debt 14). The work on climate change the COVID-19 crisis and recovery. management systems, assist with and natural disaster resilience will the implementation of debt manage- increase in FY21 given the growing ment strategies and provide advice importance of these activities and a on climate-related debt instruments. projected busy upcoming hurricane It would serve as a complement to season. A total 961 RPDs are planned the ongoing work at CARTAC. for execution compared with 363

46 | SECTION IV: Work Program for FY 2020 Annual Report 2020 | CARTAC Figure 13. CARTAC: Climate Resilience Activities Figure 14. CARTAC: Planned Technical by Program FY2021 Assistance by Program, FY2021

MAC 6% DEBT 5% DEBT 24% TAX 20% ESS 8% TAX 23%

CUS 4% RSS 8%

CUS 9% FinStab 9% PFM 19%

MAC 31% FinStab 1% FSS 12% PFM 20% FSS 1%

Figure 15: CARTAC: Planned Technical Assistance by Country and Program, FY2021

Cayman Islands Bermuda British Virgin Islands Suriname Haiti Montserrat Anguilla Grenada Antigua and Barbuda Curacao Guyana Sint Maarten ECCB/ECCU Turks and Caicos Bahamas St Vincent and the Grenadines St Kitts and Nevis Aruba Saint Lucia Jamaica Belize Dominica Trinidad and Tobago Barbados

0 50 100 150 200 250 300 350 400 450 500 Number of Days

PFM TAX Customs FSS Fin Stab MAC ESS RSS DEBT

Annual Report 2020 | CARTAC SECTION IV: Work Program for FY 2020 | 47 Table 1. CARTAC: Summary of the Accounts

Phase Summary FY2020 FY2021

Program Working Working Execution Working Expenses Expenses Project Budget Budget Budget (%) Budget1/

Public Financial Management 12,071,795 10,594,931 5,202,972 2,102,773 1,384,004 66% 2,108,320

Customs Administration 5,014,308 4,596,653 2,563,829 927,149 768,013 83% 973,776

Tax Administration 10,077,405 9,617,919 4,768,386 2,150,257 1,165,357 54% 2,127,014

Financial Sector Supervision 5,865,769 5,257,984 2,905,823 1,284,682 1,063,874 83% 1,237,462

Financial Stability 5,865,769 5,128,743 2,849,422 952,497 804,528 84% 1,137,304

Real Sector Statistics 6,066,195 5,586,103 3,035,418 1,115,857 912,220 82% 1,121,073

External Sector Statistics 5,232,260 4,461,491 2,165,155 930,770 652,261 70% 1,024,795

Financial and Fiscal Law 381,075 329,450 148,523 113,314 61,425 54% 113,830

Macroeconomic Advisor 3,983,650 3,055,914 1,483,056 612,237 575,678 94% 543,849

Debt Management 1,512,600 – – – – – 724,505

Training project 1,144,101 1,053,559 670,714 374,180 333,728 89% 337,746

Admin Project 2,421,505 2,520,322 1,497,248 516,652 434,141 84% 555,369

Governance and Evaluation 487,981 513,899 243,417 314,319 55,903 18% 265,342 (backstopping)

Strategic Budget Reserve 1,500,000 – – – – – 100,000

Subtotal 61,624,413 52,716,968 27,533,963 11,394,687 8,211,132 72% 12,370,386

Trust Fund Management 4,207,827 3,690,188 1,927,377 797,628 574,779 72% 858,927

Total2 64,319,640 56,407,156 29,461,340 12,192,315 8,785,911 72% 13,229,313

1/ Future fiscal year budgets are indicative. 2/ Does not include IMF expenses and host country in-kind contributions.

48 | SECTION IV: Work Program for FY 2020 Annual Report 2020 | CARTAC SeCtion IV Macroeconomic B Program

The work program for FY 2021 will continue focusing on assisting countries in strengthening capacity to develop and maintaining consistent macroeconomic frameworks that incorpo- rate the effects of climate change and natural disas- ters. In light of the COVID-19 pandemic, the program will be sufficiently flexible to accommodate requests from countries in assisting them in analyzing the impact of the pandemic on their economies and developing macro-frame- works to help guide the recovery. Already, one such request has been received.

In addition, work is on-going with the to undertake a diagnostic assessment Central Bank of Barbados in enhancing of the capacities of ECCU countries in their macroeconomic model to better developing and maintaining consis- assess the feed-back loop of policy tent macroeconomic frameworks measures or external shocks on growth, that are in alignment with the 60 revenue and expenditure as well as percent debt to GDP target by 2030. the impact of monetary policy initia- tives. The MAC program also intends

Annual Report 2020 | CARTAC SECTION IV: Work Program for FY 2020 | 49 SeCtion IV Public Financial C Management

Given the regional PFM challenges as a result of the As the situation returns to normal, CARTAC’s PFM program will COVID-19 pandemic, CARTAC has already started assisting continue to strengthen capacity member countries in developing and implementing and depth of knowledge in budget appropriate PFM responses. The COVID-19 pandemic is preparation reform, for the 11 active impacting the public finances of regional countries through countries3 in this area. TA efforts will increased spending and reduced revenue collection, and continue to address medium term frameworks, supplemental budget through contingent liabilities turning into actual liabilities. I approvals, cabinet involvement n addition, policy measures in response to the crisis will likely and the refinement of performance create new fiscal risks. When fiscal risks increase, governments indicators, gender sensitivity and will first need to understand how baseline fiscal positions their use as management information tools. Strong coordination with may be impacted. The various fiscal measures implemented CARTAC’s Macroeconomic Program by governments in response will create new fiscal risks. will continue, with a joint approach Governments should identify in a comprehensive way the to implementing economic and various risks to their fiscal outlook, measure their fiscal impact, fiscal strategy statements to and manage them proactively. Some countries have already overarch the budget process. provided details on the PFM measures being implemented Through the increased contributions and other interventions planned. The assistance from CARTAC from CARTAC’s members and continues to be remote but it is anticipated that our support partners, the PFM program will have the resources necessary to will gradually increase as conditions return to normal, hopefully provide targeted assistance in in the third quarter of calendar year 2020. Climate Change Resilience (CCR). CARTAC has performed post hurricane reviews in Dominica, Turks and Caicos, Anguilla, British Virgin Islands and plans are in place to include Sint Maarten, Antigua and Barbuda and probably the

3 Anguilla, The Bahamas, Barbados, Belize, British Virgin Islands, Dominica, Grenada, Montserrat, St. Lucia, St. Vincent and The Grenadines, and Turks and Caicos Islands

50 | SECTION IV: Work Program for FY 2020 Annual Report 2020 | CARTAC Bahamas; to examine what PFM As part of the reform to address Follow up with countries undergoing processes governments had in place, compliance with IPSAS standards, SOE reforms is also planned for how well those processes worked, chart of account updates will be FY2021, including an additional what lessons can be learned from completed and integrated with mission to Barbados. Given the innovation required to get the financial management system. the interest generated in SOE governments up and running post- A multi-year strategy continues to Oversight, CARTAC will investigate hurricanes and how well aid flowed move The Bahamas, Turks and Caicos the possibility of developing a and under what conditions. The Islands and BVI from cash to accrual generic guide to assist regional results of the reviews have already reporting, meanwhile enabling governments which are struggling provided valuable insights for other improvement in Treasury systems with this challenging issue. Caribbean Governments and the related to bank reconciliations, delivery of a regional report later timely recording of revenues, and will provide even more guidelines improved internal controls. All to the region and other vulnerable existing reforms will be reviewed areas, such as the Pacific Islands with member countries during States. These resources will also FY21 workshops on improving help to finance new Climate Change fiscal reporting. A workshop Policy Assessments in the region as dedicated to Cash Management well as other CCR TA for vulnerable which was scheduled for March countries. Many of the lessons 2020, is rescheduled for FY21. learned and recommendations from these reviews have already contributed to the IMF’s global pandemic response material.

Annual Report 2020 | CARTAC SECTION IV: Work Program for FY 2020 | 51 SeCtion IV Tax D Administration

The key focus of the Sustainable tax administration The novel corona virus (COVID- reforms are medium to long-term 19) brings to the fore the need to tax administration TA programs and takes time to effectively reevaluate CARTAC’s business model program is creating institutionalize. The tax administration and that of regional tax administrations resilient administrations by TA program will continue most of the – especially the delivery of TA and embedding sustainability work started in the last two-years, with operational delivery in revenue of the modernization a heavy focus on strengthening HQ administrations. Given the uncertainty capacity – program design, strategy, around the pandemic, during first programs across the planning, KPI-monitoring, reporting; quarter of FY2021, TA will have to region, including through compliance risk management; delivered remotely to the extent strengthening institutional strengthening institutional risk possible, using various means of risk frameworks and capacity. frameworks - enhancing ICT systems, technology. Hence, the need to assist HR, performance management; countries assuring some level of The workplan by objectives is and building audit capacities continuity of operations. In addition, outlined in Box 5. administrations can use “down-time” to improve processes and people.

52 | SECTION IV: Work Program for FY 2020 Annual Report 2020 | CARTAC Box 5: Planned Tax Administration Technical Assistance by Objectives

Objective 1. Better revenue administration, • Strengthening support functions: Improving HR strategies management and governance arrangements. – Belize, Guyana, St. Lucia, St. Vincent and The Grenadines; ICT support will continue to be provided to – Curaçao, • Tax Administration reform planning, building a robust Grenada, St Maarten and through a regional workshop. performance management system by institutionalizing strategic management framework and organizational • Strengthening legislative framework: Assist countries arrangements will continue in Antigua and Barbuda, to review and enhance their tax legislations - Barbados, Aruba, Belize, Curaçao, Dominica, Barbados, Grenada, St. Lucia, Montserrat, and a regional program on Guyana, Jamaica, St. Kitts and Nevis and Turks and Caicos. international taxation.

• Countries’ revenue management to be enhanced. Given the COVID-19 pandemic, countries will see reductions in tax revenue. A program has been developed and Objective 2. Strengthening core tax is to be rolled-out in two phases. In phase one (FY21), administration functions. CARTAC will assist Antigua and Barbuda, Barbados, • CARTAC will continue to support capacity building in Belize, Dominica, Grenada, St. Kitts and Nevis, St. Lucia audit, data analytics, strengthening other core business and St. Vincent and The Grenadines to strengthen their processes – Aruba, Antigua and Barbuda, Dominica, revenue management capacity - revenue forecasting Jamaica, Montserrat, St. Maarten, St Vincent, St. Kitts and estimation, monitor, analyze and report on revenue and Nevis, St Vincent and the Grenadines, Guyana, and performance and developing tax expenditure statements. Barbados. • In corporate priorities – strengthening risk management • TADAT assessment to be conducted in Dominica. and improving HR strategies: Compliance program for Barbados, Belize, Grenada, Jamaica, St. Kitts and Nevis, • Regional Tax Audit program – Implementation of the pilot St. Lucia, St. Vincent and The Grenadines. Strengthening phase: Dominica, Guyana, Jamaica, St. Kitts and Nevis, of institutional risk framework – mainly through regional St. Lucia. initiatives and direct interventions in some countries.

Annual Report 2020 | CARTAC SECTION IV: Work Program for FY 2020 | 53 SeCtion IV Customs E Administration

The work program for FY21 will be somewhat restricted in scope due to the continuing impact of the COVID 19 pandemic and prolonged travel restrictions. It provides an initial set of interventions which will need to be adjusted in the light of country priorities in the aftermath of the pandemic. The program aims to build on work done in previous years and to reflect the medium-term outcomes in the Results Based Management (RBM) framework for customs administration. Some CD work that was cancelled or postponed in FY20 due to the pandemic will be delivered in the coming fiscal year. It comprises 519 RPDs of TA to be provided by the resident adviser and short-term experts and IMF HQ. Of this, 269 RPDs will be provided by the resident adviser, 229 RPDs by short term experts, and 21 RPDs by IMF HQ staff.

A key area of work will continue to compliance is the main area of be enabling customs administrations focus for the customs component. It to collect, safely store and should be noted that the workplan analyze data about trade patterns and objectives are aligned to and behavior, as well as to use the requirements of the World the product of the analysis to Trade Organization (WTO) Trade have more intelligent, smarter, Facilitation Agreement (TFA), which interventions. In this way trade will is being implemented across the be facilitated, revenue secured, region, as well as the regional and border protection enhanced. trade integration programs of the OECS and CARICOM. Each area of the plan will focus on the key objectives of revenue The work plan for FY2020 has optimization and trade facilitation— been grouped into blocks, emphasizing that both are possible each a component of the RBM with sound management and matrix, as set out in Box 6. effective risk management. This balance between facilitation and

54 | SECTION IV: Work Program for FY 2020 Annual Report 2020 | CARTAC Box 6: Planned Customs Administration Technical Assistance by Objectives

Trade facilitation and service initia- Audit and anti-smuggling • In Barbados, TA will be provided tives support voluntary compliance programs more effectively ensure to map key processes in customs enforcement of customs laws and describe and model improved In Anguilla, Belize, Guyana, Curaçao, processes. Grenada and St. Vincent and The • Follow up TA in PCA will be provided Grenadines, TA will continue to support to Barbados, Belize, Curaçao and Activities brought forward from FY20 the development of risk management Bermuda. A program to support the capacity with emphasis on using development of PCA in Turks and • In Trinidad and Tobago TA will sound risk management to support Caicos Islands will be initiated. assist in developing a disaster preparedness plan for customs the implementation of a trusted trader • In Belize and Dominica, TA will program. TA in this area will be initi- support the development of systems • TA to review customs controls of ated in Turks and Caicos Islands. for providing advance rulings. petroleum imports and propose more effective systems will be • In Bermuda, further TA will provided to St. Vincent and The be provided to strengthen Grenadines Customs control during the clear- risk management – regarding ance process more effectively strengthened PCA. • Training will take place in ensures accuracy of declarations Barbados to strengthen the middle • A Regional Seminar on developing management cadre • In Barbados, Turks and Caicos an Integrated Anti-Fraud Strategy and the British Virgin Islands, work for the region will be delivered In addition, as a direct result of the will focus on strengthening risk in collaboration with Caribbean COVID-19 pandemic, a regional management capacity and systems. Customs Law Enforcement seminar in Disaster Preparedness for Council (CCLEC). Tax and Customs will bring adminis- • In Curaçao, Dominica, Grenada and trations together to share experience St. Vincent and The Grenadines, TA of the pandemic, look at lessons will be provided to strengthen PCA. learned, and help plan for an effective A reform strategy and a stra- • A Regional Seminar on upgrading response to future disruptive events. the CARICOM Tariff to HS22 will tegic management framework are be delivered in collaboration adopted and institutionalized with CARICOM. • Follow up revenue administration through a FAD-led diagnostic mission is planned for Barbados.

Annual Report 2020 | CARTAC SECTION IV: Work Program for FY 2020 | 55 SeCtion IV F Financial Stability

The Financial Stability work • Assist countries in assessing and • Assist countries covered by formulating responses to the effects CARTAC in strengthening banking program for FY2021 will of the COVID-19 pandemic on sector stress testing, including be influenced by country financial stability. the elaboration of stress testing priorities in the aftermath scenarios in Barbados, British Virgin • Support the countries covered by of the COVID-19 pandemic. Islands, Trinidad and Tobago. CARTAC in the monitoring and In addition to this, much detection of systemic risks, as well as • Help Jamaica and Suriname with the of the emphasis will be on ensuring that the main findings of the calibration of their macroprudential strengthening systemic risk monitoring exercise summarized and toolkits so that they may respond analysis and reporting as disseminated to target audiences effectively to events that threaten in Aruba, Cayman Islands, Belize, financial stability. well as macroprudential ECCB, Jamaica, Suriname and Turks policy implementation. The and Caicos. priority areas targeted for special focus are:

56 | SECTION IV: Work Program for FY 2020 Annual Report 2020 | CARTAC SeCtion IV Financial Sector G Supervision

The FSS work program for FY21 will include both multi-year/follow-up TA programs to improve financial sector supervision and regulation across different sectors, one-off missions in response to country specific requests; and regional workshops. Response to requests for follow-up TA will continue to be linked to progress made in addressing recommendations made during prior TA missions. Due to the risk posed by the COVID-19 pandemic, the timing of TA missions or delivery of TA will be subject to ongoing review. Several TA missions planned for FY 21 will either be delivered remotely and/or work from home (WAH). In-country or bilateral missions, and regional workshops will most likely be conducted during the second half of the FY due to the pandemic crisis.

With the expectation that supervisory agencies in the region will commit most of their resources to respond to the impact of COVID-19, the FSS work program for FY 21 is suffi- ciently flexible to support member countries’ requests for assistance.

Annual Report 2020 | CARTAC SECTION IV: Work Program for FY 2020 | 57 SeCtion IV Real Sector H Statistics

The RSS work program for FY2021 will continue to build capacity and support the improvement of methodologies and compilation practices for national accounts and prices statistics, through the adoption of good practices and the latest international standards. The work program will likely be modified further to reflect developments in the COVID-19 pandemic and consequent changes in country priorities.

For the annual national accounts, TA sources and methods and staff at the request of the authorities or will continue to focus on assisting capacity building has been planned COVID-19, three follow-up missions Barbados, Belize, Jamaica, St. Kitts and for Aruba. TA missions to Grenada, for the same projects and missions Nevis, St. Vincent and The Grenadines, St. Kitts and Nevis, and St. Vincent for four new projects initially planned and Trinidad and Tobago in building and The Grenadines will assist with for FY2021 have been postponed to staff capacity and improving the capacity building of staff, and with FY2022. These include missions to Sint compilation methodology, consistent reviewing and finalizing the rebased Maarten and Turks and Caicos to assist with the relevant 2008 SNA recommen- CPI for dissemination. In addition, with compiling the SUT; St. Lucia to dations. Assistance will be provided to TA missions to review the HBS/SLC assist with developing quarterly GDP-E; Barbados in reviewing the preliminary household consumption expenditure and Barbados, St. Lucia, Suriname, annual GDP estimates for 2020; while data, improve the CPI methodology, and Trinidad and Tobago on building TA missions for Belize and Jamaica will and reweight the CPI are planned capacity and improving prices statistics. review the balanced SUTs and provide for Guyana and Turks and Caicos. CARTAC will continue to coordinate advice on finalizing the rebased GDP Regional capacity building work- its TA activities with the CARICOM estimates for release. A comprehensive shops are planned for October 5-9, Secretariat and PRASC, including review of national accounts statistics 2020 to compile SUTs and rebase participating in the annual CARICOM concepts, sources and methods and GDP; and for March 1-12, 2021 on Heads of Statistics meeting; and staff capacity building is planned for the System of National Accounts. Sint Maarten. Assistance will also be with Statistics Canada’s work in the provided to St. Kitts and Nevis and The planned TA delivery for FY2021 region on improving data sources Trinidad and Tobago in compiling SUTs; for real sector statistics will be lower (i.e., administrative data, business and to Anguilla and St. Vincent and than the actual TA delivery in FY2020 register, business surveys, household The Grenadines with rebasing the GDP due mainly to the COVID-19 outbreak. surveys, government finance statis- estimates to the 2018 reference year. A total of 363 days is planned for tics, international merchandise and FY2021 compared to the 446 days trade in services) and compiling SUTs, For prices statistics, a comprehensive delivered for FY2020. Due to the GDP-E, tourism satellite accounts, and review of price statistics concepts, postponement of FY2020 missions export and import price indices.

58 | SECTION IV: Work Program for FY 2020 Annual Report 2020 | CARTAC SeCtion IV External Sector I Statistics

The ESS Work Program for FY2021 has been adjusted to reflect priorities in the context of COVID-19 crisis.

Three hundred and ninety-four (394) RPDs have been planned for FY2021, which will cover 19 CARTAC members and 2 regional training workshops. The first part of FY2021 will require remote TA and offsite missions, if non-essential travel to member countries remains suspended. CARTAC TA missions will focus on (1) improving the timeliness of the BOP statistics and the quality of prioritized components; (2) enhancing IIP statistics and quality enhancement of financial account data—the compilation of exceptional financing transactions would be largely encouraged and supported by CARTAC TA; and (3) developing compilation frameworks to produce The other regional training workshop comprehensive STA’s online BOP and external debt statistics. will be focused on trade in goods IIP course by September 2020 will also and services data for BOP statistics, assist in further developing essential The regional workshop on cross-border including the increasing need of technical skills of Caribbean compilers. statistics on SPEs, which is jointly comprehensive ESS to support the organized with STA, will target the design of sound resilience policies participation of 15 CARTAC member to natural disasters and climate economies and 10 IMF’s members with change. The worldwide launch of a relevant offshore financial centers.

Annual Report 2020 | CARTAC SECTION IV: Work Program for FY 2020 | 59 Box 7: CARTAC and IMF COVID-19 Response TA to Member Countries

The PFM program has always obligations as well as implementing • Preparing for post clearance discussed pandemics as part of the government relief policy, while audit (PCA) campaigns and other fiscal-risks workshops and the lessons monitoring revenue developments revenue compliance measures and recommendations from the to avoid excessive revenue loss. As post pandemic. post hurricane reviews done as part the crisis eases, temporary measures In the , CARTAC stands of the resilience workstream have should be lifted, and enforcement Financial sector ready to provide technical assistance broad applicability to the COVID-19 measures fully restored to avoid on conducting stress testing of the pandemic. CARTAC interventions noncompliance. Key priorities include: will help countries implement these banking, insurance and credit union • Ensuring each administration has a sectors as part of post pandemic recommendations as required, business continuity plan (BCP) and including on budgeting, expenditure impact assessments. In addition, conducting business impact analysis the Monetary and Capital Markets reallocation, treasury and cash and business continuity strategies; management operations. Meanwhile Department (MCM) has developed a series of issues notes that will guide an initial short paper on PFM and • Improving Information advice to financial sector supervisory the Coronavirus by Fiscal Affairs communication systems: to provide authorities during and after the crisis. Department (FAD) will be expanded basic online services (registration, into a more comprehensive guide. filing, payment, website) and to CARTAC will continue to assist facilitate remote work for core member states in addressing data The natural disaster business continuity functional areas; and to develop workshop jointly conducted by the collection and compilation challenges preventive measures and internal relating to the timely production Revenue Administration Programs controls to protect administration and dissemination of Real Sector as part of the resilience workstream systems from fraud and error; included scenarios related to Statistics, especially the monthly CPI and quarterly GDP estimates. pandemics. The recommendations • Developing soft compliance from this workshop are easily program – facilitate taxpayers to The Macroeconomic program will transferable to the current situation. continue business without harsh ensure its fiscal and macroeconomic Meanwhile FAD has developed several enforcement measures (e.g. payment tools will properly capture the impact recommendations to help revenue arrangements, filing and payment of the crisis and the forecasting administrations manage during and extensions, proactive program on framework will now extend beyond after the crisis. These include swift record keeping); the scope of weather-related clearance of essential cargo, scaling events to include pandemics. down operations to focus on essential • Assisting IRD to prepare tax activities, and providing protective expenditure reports and instituting As priorities are shifting, CARTAC equipment to lower contagion risks to measures to protect core revenue will remain flexible and responsive staff. TA will focus on post clearance base, build capacity in effective in its support to its member audit work as the situation normalizes. revenue management i.e. to better countries. CARTAC will operate Revenue administrations should focus understand revenue forecasting and flexibly and reprioritize medium- on assisting firms and individuals estimation, monitor, analyze and term workplans to include activities to deal with financial stress, easing report on revenue performance; deemed critical to its members. taxpayer compliance burdens and

60 | SECTION IV: Work Program for FY 2020 Annual Report 2020 | CARTAC Section V Looking ahead

Annual Report 2020 | CARTAC 61 Budget Outturn and Projections

CARTAC’s return to its medium-term budget level in FY20 was cut short by the suspension of travel in response to the spread of the COVID-19 virus. Thanks to the much-appreciated efforts of member countries and development partners, traditional and new, who stepped up to help close the funding gap in FY2019, this permitted a return to the medium-term budget of about US$12 Million. However, with the IMF suspension of non-essential travel at the end of February in response to the spread of the COVID-19 virus, program execution in Q4 was curtailed. Activities that were not undertaken in FY20 have been either cancelled or postponed to FY21.

Phase V budget execution: As of April FY21 Budget Proposal: Given the finances in the work program, Tax 30, 2020, approximately one-half of uncertainty of the effects of the Administration (US$2.2 million) and the working budget for the phase COVID-19 virus, the FY21 work PFM (US$2.1 million) are the largest has been executed (Table 1). Roughly program and budget proposal reflects elements of the budget, followed US$30 million has been expended this uncertainty. We have tried to by Financial Sector Supervision since the start of Phase V in January anticipate when the situation in the (US$1.2) and Financial Sector 2017. Budget execution in FY20 was region might normalize and some of Stability (US$1.1 million). Together curtailed by the IMF suspension of the requests that could come from revenue administration (Tax and non-essential travel and the subse- member countries. We propose Customs) and PFM account for quent widespread lockdowns to slow to respond flexibly to changes in about 42 percent of the budget. the transmission of the COVID-19 member-countries capacity devel- virus. The overall execution rate opment priorities during the first is 72 percent for FY2020 with the few months of the financial year average pulled down by under-execu- and present any adjustments for tion in the two largest programs (Tax approval at the November Semi- administration and Public Financial Annual Steering Committee Meeting. Management) due to delays in The proposed budget for FY21 is recruitment (Table 1). Nevertheless, US$13.2 million and the distribution the actual expenditure of US$8.5 of resources are given in Table 1. million is about one million higher Reflecting the emphasis on the post than the actual amount in FY2019. pandemic repair of government

62 | SECTION V: Looking Ahead Annual Report 2020 | CARTAC Annexes

Annual Report 2020 | CARTAC 63 Annex I. Statement of Financial Contributions

MULTI-LATERAL - REGIONAL CENTERS: FINANCIAL CONTRIBUTIONS1/, As of Apr 30, 2020

Agreement/Amendment Information Contribution Received Contribution Expected (U.S. Dollars)

Future Partners/Members U.S.Dollars Agreement Currency U.S.Dollars Requested Contributions 2/

Partners 44,220,920 35,461,186 904,636 7,722,275

Canada 16,450,058 15,800,000 12,073,707 904,636 3,471,715

Caribbean Development Bank 4,029,207 4,029,207 4,029,207 - -

Eastern Caribbean Central Bank 200,000 50,000 50,000 - 150,000

European Commission 7,538,319 6,000,000 6,508,620 - 1,029,699

Netherlands 3,402,518 3,000,000 3,399,600 - -

Netherlands 2,174,149 - - - 2,174,149

United Kingdom 2,506,299 1,260,000 1,609,587 - 896,712

United Kingdom 7,920,370 6,104,500 7,790,465 - -

Members 15,450,000 7,562,837 847,133 7,040,030

Anguilla 800,000 350,000 350,000 - 450,000

Antigua And Barbuda 800,000 350,000 350,000 - 450,000

Aruba 600,000 400,000 400,000 - 200,000

Bahamas 800,000 350,000 350,000 150,000 300,000

Belize 840,000 540,000 540,000 - 300,000

Bermuda 800,000 500,000 500,000 - 300,000

British Virgin Islands 800,000 500,000 500,000 - 300,000

Cayman Islands 600,000 300,000 300,000 - 300,000

Curacao 800,000 350,000 350,000 150,000 300,000

Dominica 600,000 300,000 300,000 100,000 200,000

Grenada 600,000 300,000 300,000 - 300,000

Guyana 750,000 450,000 450,000 - 300,000

Haiti 600,000 200,000 200,000 100,000 300,000

Jamaica 750,000 373,513 373,513 76,487 300,000

Montserrat 600,000 400,000 400,000 - 200,000

Sint Maarten 360,000 120,000 120,000 - 240,000

St. Kitts And Nevis 600,000 300,000 300,000 100,000 200,000

St. Lucia 800,000 499,970 499,970 - 300,030

St. Vincent And The Grenadines 600,000 - - 150,000 450,000

Suriname 750,000 - - - 750,000

Trinidad and Tobago 800,000 479,354 479,354 20,646 300,000 Turks And Caicos 800,000 500,000 500,000 - 300,000

PARTNERS AND MEMBERS TOTAL 59,670,920 43,024,023 1,751,769 14,762,305

64 | ANNEXES Annual Report 2020 | CARTAC MULTILATERAL - REGIONAL CENTERS: FINANCIAL CONTRIBUTIONS1/, AS OF APRIL 30, 2019 Internal Transfers 3/ Agreement/Amendment Information Contribution Received Contribution Expected (U.S. Dollars)

Future Partners/Members U.S.Dollars Agreement Currency U.S.Dollars Requested Contributions 2/

Anguilla 10,222 - 10,222 - - Antigua And Barbuda 10,222 - 10,222 - - Belize 10,222 - 10,222 - - Bermuda 10,222 - 10,222 - - Canada 588,029 - 588,029 - - Dominica 10,222 - 10,222 - - Guyana 10,222 - 10,222 - - Jamaica 10,224 - 10,224 - - Montserrat 10,222 - 10,222 - - St. Kitts And Nevis 10,222 - 10,222 - - St. Vincent and The Grenadines 10,222 - 10,222 - - World Bank 183,206 - 183,206 - -

INTERNAL TRANSFERS TOTAL 873,457 873,457 - -

Host Country & IMF Agreement/Amendment Information Contribution Received Contribution Expected (U.S. Dollars)

Future Partners/Members U.S.Dollars Agreement Currency U.S.Dollars Requested Contributions 2/

Cash - - - - - In-Kind 1,067,177 - - - - IMF 4,352,430 - - - - HOST COUNTRY AND IMF TOTAL 5,419,607 - - - -

Grand Total 65,963,984 43,897,480 1,751,769 14,762,305 Program Document Budget 69,513,689 - - - - Funding Gap -3,549,705 - - - -

1/ May also refer to agreements that are under negotiation and approval date for Capacity Development Partnership agreements (e.g. flexible/ umbrella agreements). 2/ The future contributions amount is set to zero for completed installments. 3/ Refers to transfers from one program phase to another (e.g. phase rollovers).

Annual Report 2020 | CARTAC ANNEXES | 65 Annex II. CARTAC Strategic Logframe

STRATEGIC OBJECTIVE: “Improved macroeconomic management including in the context of increased regional integration to foster economic growth in CARTAC member countries”

Regional Program Objective Verifiable Indicators Progress on Indicators Risks/ Assumptions/Risk Mitigation

1. FINANCIAL STABILITY: (1) Number of countries collecting Regulators in Jamaica and ECCU RISKS: Financial stability regulators financial sector interconnected- collect bilateral exposure data (1) Weak technical capacity. monitor institutional counter- ness data to develop and monitor for financial institutions and (2) Confidentiality issues (legal and otherwise) party and contagion risks in national interconnectedness map, produce contagion metrics on an from certain jurisdictions. the financial sector particu- network topology metrics and ongoing basis. ASSUMPTION: larly considering numerous contagion dynamics. Strong commitment to strengthening regional intra-regional linkages across A regional contagion stress surveillance of highly interconnected finan- large and highly connected (2) Number of countries that testing exercise was conducted cial sectors considering substantial regional financial institutions share financial sector intercon- by central banks and aggregate nectedness data to support the results published in the 2015 economic losses in the aftermath of recent development and monitoring of Caribbean Regional Financial failure of a large and interconnected regional regional interconnectedness map, Stability Report covering banks financial conglomerate. network topology metrics and and insurers in Barbados, RISK MITIGATION: contagion dynamics. Jamaica, Trinidad and Tobago, (1) Provide specialized training on the imple- Bahamas, Guyana, ECCU, Belize, mentation of financial contagion stress testing Suriname and Haiti. with a view to future upgrading of: (i) national financial stability surveil- CARTAC provided hands-on lance frameworks; training in 2018 and 2019 to (ii) national financial stability support regional central banks reporting arrangements; on the theoretical and prac- (iii) the regional financial stability architec- tical elements needed to apply ture; and (iv) the Caribbean Regional Financial network analysis methodology Stability Report. in mapping and analyzing

national and regional financial (2) Organize IMF/CARTAC roadshows to specific sector networks. jurisdictions that have legislative (or other) barriers to the sharing of financial exposure data with responsible third parties. Participation by IMF staff from LEG, MCM and WHD would be critical for the success of these road shows. Buy-in may also be required at the level of the reporting financial institutions.

2. FINANCIAL SECTOR Regulatory and supervisory Most countries have made RISKS: SUPERVISION: Financial frameworks are more closely substantial progress in Staff capacity affected by high turnover and Sector Supervisors/ aligned with RBS requirements implementing RBS across inability to retain competent staff due to budget Regulators implement risk- as evidenced by assessment/ both banks and non-banks. constraint; staff turnover results in loss of based supervision (RBS) self-assessments against Follow-up TA to ensure expertise and continuity; new standards may not and upgrade supervisory international standards full operationalization of be well integrated in the supervisory process. processes, including and practices. Processes the core elements of the consolidated supervision, and guidance (or manuals/ RBS supervisory process, adopt international standards guidelines) for key supervisory implementation risk-based capital and practices, including processes are developed and requirements ongoing. risk-based solvency (Basel effectively implemented. II/III, IAIS-ICP 17), IFRS, and introduce regulation and supervisory practices to support improved access to insurance services and ensure low-income consumers are adequately protected against climate change.

66 | ANNEXES Annual Report 2020 | CARTAC STRATEGIC OBJECTIVE: “Improved macroeconomic management including in the context of increased regional integration to foster economic growth in CARTAC member countries”

Regional Program Objective Verifiable Indicators Progress on Indicators Risks/ Assumptions/Risk Mitigation

2. FINANCIAL SECTOR Risk-based solvency standards Consolidated and cross- ASSUMPTIONS: SUPERVISION: cont’d. are incorporated in the border supervision of financial Supervisory agencies are sufficiently funded, legislative framework and/ conglomerates, banking and and staffed. There is sufficient supervisory or supervisory guidelines, and mixed-activity groups need capacity to perform risk-based supervision and supervisory processes. Financial further strengthening. Follow-up upgrade supervisory processes. institutions comply with the TA being provided. new requirements. MITIGATION: Authorities prioritize work in these areas, and Supervisors are better equipped Progress in the implementation take steps to ensure supervisory agencies are to apply international supervisory of Basel II/III, risk-based solvency sufficiently funded. standards - Regulatory and requirements for insurance firms, supervisory guidelines align with IFRS, and level of compliance international standards (IFRS, with international standards vary IAIS, IOSCO, and BCBS) and among member countries. best practices.

Inclusive Insurance - supervisory practices are applied in a manner that encourages the development of inclusive insurance market; and (iii) supervisors are adaptable in their roles to properly respond to innovative solutions to climate change.

3. MACROECONOMIC 1. Number of countries using 1. To date at least 12 countries RISK: PROGRAMMING: medium-term macroeconomic have in place medium term High rate of staff turn-over in Macro Policy Units Increased use of medium- frameworks to underpin macroeconomic frameworks in term macroeconomic annual budgets. support of the annual budgets. ASSUMPTION: frameworks as a tool Strong political commitment to the for policy formulation, 2. Fiscal sustainability issues establishment of effectively functioning and enhanced officials' addressed and revealed in Macro Policy Units. skills in macroeconomic publication of actual fiscal analysis, policy advice and RISK: dissemination. Execution outcomes; improvements Weak political ownership of achieving medium- of multi-year target- and confirmed in improved CPIA, priority-based macro-fiscal PEFA, ROSC; Number of policy term fiscal targets. plans and training in macro- makers, government officials and ASSUMPTION: fiscal policy analysis. government staff trained. Political commitment is key; and accompanied by appropriate institutional set-ups and processes and backed with adequately resourced macro-fiscal units (MFUs).

RISK MITIGATION: Preparation of manuals to guide junior economists in the preparation of macroeconomic projections. CARTAC Adviser to engage in continuous dialogue and timely follow-up with country authorities.

Annual Report 2020 | CARTAC ANNEXES | 67 STRATEGIC OBJECTIVE: “Improved macroeconomic management including in the context of increased regional integration to foster economic growth in CARTAC member countries”

Regional Program Objective Verifiable Indicators Progress on Indicators Risks/ Assumptions/Risk Mitigation

4. PUBLIC FINANCIAL An overall improvement in ratings Three countries RISKS: MANAGEMENT: Enhance under the PEFA assessment have a new PFM law. 1. Baseline assessment for PEFA or other the capacity of country tool (P1-12, P16 - PI22 take diagnostic assessment could be incorrect officials in the effective out procurement) Belize, BVI, St. Vincent and The (corrective action to be taken in subsequent delivery of Public Financial Grenadines, Turks and Caicos PEFA assessment to retrospectively adjust the Management Legislation, Islands, Grenada and St. Lucia incorrect assessment) budget preparation, budget budgets are now prepared in execution, compliance with 2. Delays in implementation due to competing line with the strategic budget International Public Sector priorities and limited human resources in Accounting Standards (IPSAS), reform methodology, and member countries (encourage contingency Treasury management and presented in the revised program planning by authorities). function, management and budgeting format 3. Crowded Legislative agenda preventing Draft oversight of the SOEs and PFM Legislation to reach Parliament. audit in CARTAC member Regional achievements in Internal countries. Audit (IA) have been noted. Risk 2: Natural disasters, Hurricanes and now the pandemic could force a review CARTAC’s PFM Workplan. Missions scheduled for affected islands will be reviewed and resources reallocated to unaffected countries.

Risk 3: now with the restored CARTAC Budget our ability to conduct PEFA Assessments in the regions has returned and we that combined with will external sources to conduct PEFAs will improve the outcome.

ASSUMPTION: Strong commitment to PFM reform based on PEFA assessments.

RISK MITIGATION: Continual sensitization of government and opposition regarding reform agenda.

LTXs could work as part of external PEFA Teams.

68 | ANNEXES Annual Report 2020 | CARTAC STRATEGIC OBJECTIVE: “Improved macroeconomic management including in the context of increased regional integration to foster economic growth in CARTAC member countries”

Regional Program Objective Verifiable Indicators Progress on Indicators Risks/ Assumptions/Risk Mitigation

5. REVENUE 1. Increased on-time filing 1. Twelve countries are now ASSUMPTIONS: ADMINISTRATION: rate for VAT returns for large able to measure on-time filing 1. Clients are committed to the reform agenda. Strengthen the administration taxpayers (baseline 5) compliance for large taxpayers 2. Countries have sufficient resources to absorb of domestic tax and customs the TA and make it sustainable. regimes through increased 2. Increased number of 2. At least 13 countries with VAT 3. Countries will adopt/maintain sound tax use of harmonized regional integrated domestic tax and Income TAX are integrated. policy to support the reform. systems and procedures that structures administering major are aligned to internationally- tax types - VAT and income tax 3. Twelve countries implemented RISKS: accepted good practices. administration consolidated unit/programs to manage 1. Political interference in tax and customs into single structures and large taxpayers administration and previously agreed organized along functional lines implementation plans and timeframes. 2. (baseline: five). Staff turnover. 3. Reduced global trade and consumption may offset efficiency gains as 3. Improved average index of measured by revenue: GDP ratio. trading across borders (ease of doing indicators of the World RISK MITIGATION: Bank) (baseline: WB 2011 report). 1. Ensure there is political commitment to reform. 4. Increased use of segmentation 2. Conduct periodic review of progress in to manage taxpayers and implementing reforms and where necessary, importers in a minimum of recommend changes in strategies. eight countries (baseline: 3. Build capacity of a cadre of staff in three countries). various aspects of domestic tax and customs administration and encourage peer support within country and across the region.

6. STATISTICS: To increase All ECCU countries plus the Aruba, The Bahamas, Barbados, RISK: the use of internationally Aruba, Bahamas, Belize, Bermuda, Cayman Islands, inadequate staffing and budgets, and accepted statistical Curaçao, Guyana, Haiti, Guyana, St. Lucia and Trinidad insufficient support from donor agencies, and methodologies and practices Jamaica, Trinidad and Tobago, and Tobago have released regional and international organizations to make in real and external sector Suriname, Bermuda, Barbados, rebased GDP estimates. Aruba, the TA sustainable. statistics for macro-economic Cayman Islands, British Virgin The Bahamas, Barbados, Belize, policy with focus on linkages ASSUMPTION: to fiscal and monetary policy Islands and Turks and Caicos Bermuda, Grenada, Guyana, countries have sufficient resources to absorb the given the current environment Islands are applying relevant Jamaica, St. Kitts and Nevis, of imbalances in the region. internationally recommended St. Lucia, St. Vincent and The TA and make it sustainable. methodologies in the compilation Grenadines, and Trinidad and RISK MITIGATION: and dissemination of datasets for Tobago are now producing create further awareness of the importance of macro-economic policy evaluation QGDP estimates. statistics by stressing the linkages with macro- and formulation with focus on economic policy evaluation, preparation and fiscal and financial imbalances Eighteen countries disseminate BOP statistics and seventeen formulation; promote cooperation between countries disseminate IIP regional organizations such as CARICOM, statistics following the latest OECS and the ECCB. international standards. Three countries disseminate public and private external debt statistics and five countries disseminate public external debt on the World Bank's quaterly external debt statistics website.

Annual Report 2020 | CARTAC ANNEXES | 69 Annex III. CARTAC Results Based Management (RBM) Logframe

FINANCIAL STABILITY Systemic Risk Analysis

TOPIC PROJECT OBJECTIVE OUTCOMES

Financial Stability To strengthen capacity to commu- Communications departments established in the financial Communications nicate on policies affecting stability authorities financial stability Communications policies and strategies are adopted by the relevant agencies Relevant agencies communicate appropriately on financial stability issues Relevant agencies coordinate communications on financial stability issues.

Financial Stability To strengthen the Central Bank's An effective organizational and inter-organizational structure for the Framework financial stability decisions in FSU is established effectively analyzing and assessing Central Bank has effective institutional arrangements for crisis risks to the financial system, and in management, contingency planning, and financial safety nets creating a basis on which effective Central Bank has the appropriate tools of analysis for financial financial sector decisions are made. risk assessment Staff capacity is enhanced in the production of the first Financial Stability Report (FSR). The quality of the data and integrity of information are ensured for financial stability analysis (FSA).

Strengthened systemic risk To strengthen the regulator’s ability A systemic risk monitoring framework is implemented to analyze and assess financial risks monitoring, stress testing Agency Specific Contingency Plans and interagency plans (national so as to create a basis on which and crisis management to contingency plan) are developed and implemented and Cross border effective financial sector decisions are promote financial stability issues – burden sharing, cooperation, information sharing – are coordinated made and to enhance preparedness to manage financial sector crises An effective organizational and inter-organizational structure for the FSU is established for financial risk Effective Stress Testing Model(s) are in place and being used for their intended purpose (s) Staff capacity is enhanced in the production of the first Financial Stability Report (FSR)

The quality of data and integrity of information are ensured for financial stability analysis.

Stress Testing Develop/strengthen stress testing Effective stress testing model(s) in place and being used for their capability of the central bank (CB) intended purpose(s)

Results of stress tests being disseminated to target audiences

Staff have capacity to run a stress testing model(s) effectively and interpret results.

Systemic Risk Monitoring Develop indicators of systemic risk Main findings of monitoring exercise summarized and disseminated to and strengthen the capacity of target audiences the central bank (CB) or relevant Set of indicators in place and being used for their intended purpose(s) agency to produce and analyze these indicators Staff have capacity to interpret developments and effectively monitor systemic risk.

70 | ANNEXES Annual Report 2020 | CARTAC Monetary and Macroprudential Policy

TOPIC PROJECT OBJECTIVE OUTCOMES

Capital Account Full/partial removal of CFMs on Adoption of a roadmap toward capital account liberalization capital flows in accordance with the Liberalization Legislation enacted and implemented in accordance with the degree of specific circumstances of the country liberalization being targeted The authorities implement a robust communication strategy The establishment/assignment of a governmental body to imple- ment the roadmap.

Central Bank Monetary To strengthen CB’s capacity CB disseminates relevant information in an open, clear Policy Communications and tools to communicate on and timely manner monetary policy CB has established a Communications unit with adequate mandate and resources

Clear and consistent external communication based on preceding internal process

Communications Policy and complementary Implementation Strategy implemented.

Developing and Improving the economic analysis FPAS fully integrated into the monetary policy decision-making process and forecasting capabilities at the implementing a Improved economic analysis and forecasting capabilities at the CB. Forecasting and Policy CB for the monetary policy deci- Analysis System (FPAS) sion-making process tailored to the to the monetary policy specific monetary and exchange decision-making process rate policy regime. in all types of monetary policy and exchange rate regimes

Inflation Targeting Adopting an inflation Improved economic analysis and forecasting capabilities at the CB targeting regime CB’s accountability and transparency practices are strengthened.

Decision making process streamlined and the responsibilities within the CB clarified

Economic analysis and forecasting capabilities at the CB improved

Enhance the effectiveness of monetary operations and the use of the policy rate

The CB has the legal mandate to pursue price stability

Macroprudential Policy Establishment of an effective A systemic risk monitoring framework is implemented. macroprudential policy framework. Legal framework established or updated.

Macroprudential body established.

Macroprudential policy body is accountable and transparent.

Macroprudential policy tools implemented to mitigate specific systemic risk.

Annual Report 2020 | CARTAC ANNEXES | 71 Financial Supervision and Regulation

TOPIC PROJECT OBJECTIVE OUTCOMES

Basel II/III Implementation Banks have strong capital and Banking legislation and regulations are aligned with Basel II/ liquidity positions that adequately III requirements cover their risks and contribute to Banks have a robust liquidity position to withstand crises and shocks in financial system stability the short term and have a wealth of stable funding sources to finance their longer-term assets Banks have adequate capital adequacy made up of high quality capital instruments that is in line with issued regulations on Basel II/III Supervisors have the competencies to drive the implementation process of Basel II/III and to monitor bank’s compliance with the new requirements The level of banks’ capital reflects well their risk profile, their business strategy and their risk acceptance levels

IFRS/Accounting for NPLs To improve supervisory effective- Enhanced knowledge of IFRS by CB supervisors and banks, including ness for accounting and prudential dealing with specific provisioning issues to balance requirements by provisioning through improving IFRS and Basel principles regulatory guidelines against inter- Improved provisioning guidelines and implementation of the guide- national standards and practices lines provisioning is commensurate with credit risk and sufficient for capital adequacy assessment

The authorities approve an action plan that lays out key steps for implementing TA recommendations to implement IFRS relating to NPLs

Insurance Regulation and Develop/strengthen regulation of Effective risk based supervision in place and being used for their Supervision insurance companies (IC) and risk intended purpose(s) based supervision capability of the Risk-based capital requirements are imposed and IS takes actions if insurance supervisor (IS) insurers breach the requirements

Valuation and actuarial standards are based on economic valuation and imposed in both asset and liability sides

Regulatory & Prudential Strengthened Financial Sector Legal and regulatory framework equips supervisors with an adequate Framework Surveillance through upgrading of range of tools to bring about timely corrective actions for banks’ regulatory framework in line with problems and weaknesses international standards Legal/regulatory frameworks underpinning the Licensing regime lay out key steps and criteria for granting (and withdrawing) a License and imposing prudential conditions where appropriate

Supervisors and regulations require banks to apply sound policies and processes to identify, measure, monitor and control their financial risks on a timely basis and assess their capital adequacy in relation to their risk profile

Supervisors and regulations require banks to have robust governance policies and processes covering among others effective board and senior management oversight and sound control environment

Supervisors have the necessary capacity to upgrade banking regula- tions and effectively apply them

Supervisors monitor banking groups and their prudential ratios on consolidated basis

72 | ANNEXES Annual Report 2020 | CARTAC Financial Supervision and Regulation

TOPIC PROJECT OBJECTIVE OUTCOMES

Risk Based Supervision To implement a risk-based super- Amended legal/regulatory frameworks underpinning the implementa- vision (RBS) system and upgrade tion of risk-based supervision implemented other supervisory processes Bank risk assessment frameworks strengthened: a) Quality and timeliness of regulatory data enhanced; and b) Flexibility of reporting system improved

Clear supervisory process to review licensing applications, on a timely basis, and ensuring that it meets required criteria, implemented

Strengthened institutional structure and operational and procedures for RBS implementation

Supervisors have sufficient capacity to effectively implement risk-based supervision and other supervisory processes

Supervisors have sufficient infrastructure/systems in place to improve credit risk monitoring and strengthen banking supervision processes

Supervisors timely address unsafe and unsound practices or activities that could pose risks to banks or to the banking system

Securities Markets To strengthen the securities legal Amended legal and regulatory provisions enacted/issued and regulatory framework Legal and Regulatory Authorities commit to changes to the legal and regulatory framework Framework Necessary amendments made to internal processes and procedures

Macroeconomic programming and analysis

TOPIC PROJECT OBJECTIVE OUTCOMES

Macroeconomic Improve macroeconomic policy Improve the quality and frequency of macroeconomic surveillance and programming and analysis advice to government policy/research available for policymaking. Strong institutional structures for macroeconomic policymaking.

Improved public access to key macroeconomic and fiscal information.

Sound medium-term macroeconomic framework (inclusive of GDP and inflation, commodity prices, the external and monetary sectors, and fiscal aggregates).

Public Financial Management

TOPIC PROJECT OBJECTIVE OUTCOMES

Asset and Liability Improved Asset and Cash and debt management are strengthened and better integrated Management Liability Management Cash flow forecasts for central government is more accurate and timely

Disclosure and management of state assets is improved

More central government revenues and expenditures are deposited and disbursed through a Treasury Single Account

Budget Execution and Improved budget execu- Appraisal, selection, and implementation of public invest- Control tion and control ments is improved Budget execution and controls are strengthened

Annual Report 2020 | CARTAC ANNEXES | 73 Public Financial Management

TOPIC PROJECT OBJECTIVE OUTCOMES

Budget preparation Comprehensive, credible, and A more comprehensive and unified annual budget is published policy based budget preparation A more credible medium-term budget framework is integrated with the annual budget process

A more credible medium-term macro-fiscal framework that supports budget preparation

Budget preparation of subnational governments is efficient and trans- fers to them from central government are timely and governed by a rules-based system.

Information on resources and performance by program is included in budget documentation

Planning and budgeting for public investments is more credible.

Fiscal Reporting Improved coverage and quality of Audited annual financial statements are published timely, and scruti- fiscal reporting nized by parliament

Comprehensiveness, frequency, and quality of fiscal reports is enhanced

The chart of accounts and budget classifications are aligned with inter- national standards

Fiscal Risks Strengthened identification, Analysis and presentation of macroeconomic risks are enhanced monitoring, and management Central fiscal oversight and analysis of public corporation risks of fiscal risks are strengthened

Presentation and analysis of long-term fiscal sustain- ability are enhanced.

Risks to assets and liabilities are disclosed and their manage- ment is improved

Public Financial Improved PFM laws and effec- A more comprehensive legal framework covering all stages of the Management Laws and tive institutions public financial management cycle is enacted Institutions PFM information systems are improved

The capacity of ministry of finance to plan, implement and sustain PFM reforms is enhanced

Revenue Administration

TOPIC PROJECT OBJECTIVE OUTCOMES

Customs Administration Improved customs administra- Audit and anti-smuggling programs more effectively ensure enforcement Core Functions tion core functions of customs laws Customs control during the clearance process more effectively ensures accuracy of declarations

Foreign trade operators better comply with their reporting and payment obligations

Trade facilitation and service initiatives better support voluntary compliance

74 | ANNEXES Annual Report 2020 | CARTAC Revenue Administration

TOPIC PROJECT OBJECTIVE OUTCOMES

Revenue Administration Strengthened revenue Capacity to reform increased due to clear reform strategy and stra- and Governance administration management and tegic management framework adopted and institutionalized governance arrangements Corporate priorities are better managed through effective risk management

Effective implementation of a new tax or modernized legislation

More independent, accessible, effective and timely dispute resolution mechanisms adopted

Organizational arrangements enable more effective delivery of strategy and reforms

Support functions enable more effective delivery of strategy and reforms

Tax and/or customs laws are updated, simplified, and better aligned with modern standards and international protocols

Transparency and accountability are more effectively supported by independent external oversight and internal controls

Tax Administration Core Strengthened core tax adminis- A larger proportion of taxpayers meet their filing obligations as Functions tration functions required by law A larger proportion of taxpayers meet their payment obligations as required by law

Audit and other verification programs more effectively ensure accuracy of reporting

Taxpayer services initiatives to support voluntary compliance are strengthened

The integrity of the taxpayer base and ledger is strengthened

Statistics Strengthen macroeconomic and financial statistics compilation and dissemination for decision making

TOPIC PROJECT OBJECTIVE OUTCOMES

Balance of Payments and Strengthen compilation and A new data set has been compiled and disseminated internally and/ Real Sector - National dissemination of data on or to the public Accounts/Prices macroeconomic and financial Business processes documentation for compilation and/or dissemina- statistics for decision making according to the relevant tion of macroeconomic and financial statistics is stored, accessed and internationally accepted statistical regularly updated. standard, including developing/ Compilation and dissemination of regionally harmonized/consistent improving statistical infrastructure, macroeconomic and financial statistics. source data, serviceability and/or metadata. Data access to the public has improved through better formatting/ framework presentations and/or assistance to users

Data are compiled and disseminated using appropriate statistical tech- niques, including dealing with data sources, and/or assessment and validation of intermediate data and statistical outputs

Data are compiled and disseminated using the appropriate basis of recording consistent with the latest manual/guide

Data are compiled and disseminated using the classification of the latest manual/guide

Data are compiled and disseminated using the concepts and defini- tions of the latest manual/guide

Annual Report 2020 | CARTAC ANNEXES | 75 Statistics Strengthen macroeconomic and financial statistics compilation and dissemination for decision making

TOPIC PROJECT OBJECTIVE OUTCOMES

Balance of Payments and Strengthen compilation and Data are compiled and disseminated using the coverage and scope of Real Sector - National dissemination of data on the latest manual/guide Accounts/Prices cont’d macroeconomic and financial statistics for decision making Data are compiled and disseminated using the sectorization of the according to the relevant latest manual/guide internationally accepted statistical Higher frequency data has been compiled and disseminated internally standard, including developing/ and/or to the public improving statistical infrastructure, source data, serviceability and/or Improved timeliness of data made available internally and/or to the metadata. cont’d public (shorter delays)

Internal consistency within a macroeconomic or financial dataset has improved (reduced discrepancies)

Longer time series have been compiled and made available internally and/or to the public

Macroeconomic data sets used by policy-makers have been made more intersectorally consistent (reduced discrepancies)

Metadata released internally and to the public have been strengthened consistent with the dataset to enhance interpretation and analysis

Resources are adequate for compiling and disseminating macroeco- nomic and financial statistics

Revision studies and revision policy and practices have begun and/or have been released internally and/or to the public

Source data are adequate for the compilation of the national accounts

Source data are routinely assessed (for coverage, sample error, response error, and nonsampling error) and assessments are moni- tored and made available to guide statistical processes

Staff capacity increased through training, especially on developing source data, compilation methods, and dissemination

The Legal/institutional environment is conducive to compile and disseminate macroeconomic and financial statistics; the Relevance/ practical utility of existing statistics are monitored; Management processes monitor their quality; Institutional Integrity/Transparency/ Ethical Practices meet statistical standards; statistical Leadership/stra- tegic planning are in place

76 | ANNEXES Annual Report 2020 | CARTAC Annex IV. CARTAC: List of Missions, FY2020

TAX ADMINISTRATION

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total 1 Anguilla CARTAC: Reform Initiative-Implementation of GST Miller Norris Anthony L 2/4/20 2/7/20 4

2 Antigua & CARTAC: Enhancing HQ Program Development Miller Norris Anthony L 2/10/20 2/14/20 5 Barbuda and Reporting and Audit Program

3 CARTAC: Enhancing HQ Program Development Whyte-Givans S 2/10/20 2/14/20 5 and Reporting and Audit Program Sophia Alicia

4 Aruba COVID-19-CARTAC: Strategy and Planning (WFH) Rosenberg Gertie Merete L 4/13/20 4/24/20 12

5 COVID-19 - CARTAC: Strategy and Planning [WFH] Kidd S 4/13/20 4/14/20 2 Maureen Catherine

6 Barbados CARTAC: Strengthening Strategy Planning and Rosenberg Gertie L 3/5/20 3/9/20 5 Measuring Performance (WFH) Merete

7 COVID-19-CARTAC: Strengthening Strategy Fitzgerald S 4/3/20 4/7/20 5 Planning and Performance Measuring [WFH] Mirjana Marianne

8 Belize CARTAC: HR and Manpower Planning for Ttax Smith Richards S 6/17/19 6/21/19 5 Administration Reform (5 WAH) Judith Angela M

9 CARTAC: Developing Strategic Fisher Rick S 11/25/19 11/29/19 5 Management Framework.

10 COVID-19 CARTAC: Developing a Large Middleton John S 4/20/20 4/30/20 11 Taxpayer Program [WFH]

11 Bermuda CARTAC: Build HQ Function and Komso Andja S 6/10/19 6/14/19 5 Performance Management

12 CARTAC: Build HQ Function and Performance Komso Andja S 6/17/19 6/21/19 5 Management (WAH)

13 Curaçao CARTAC:Integration of Tax Inspectorate and Komso Andja S 7/29/19 8/9/19 12 Tax Collectorate

14 CARTAC:Organization Arrangements and Miller Norris Anthony L 7/30/19 8/10/19 12 Implementation of New IT System-follow-up Visit

15 Dominica CARTAC:Enhancing Taxpayer Service Delivery Scott Stewart S 5/20/19 5/31/19 12

16 CARTAC: TADAT follow-up training Miller Norris Anthony L 2/17/20 2/21/20 5

17 CARTAC: Preparation for TADAT Assessment Bonner S 2/18/20 2/21/20 4 Tracey-Ann Annetty

18 CARTAC: Preparation for TADAT Assessment Johnson S 2/18/20 2/21/20 4 Ingrid Ann Simone

19 Grenada CARTAC:Developing a Compliance Dawe Brian Howard S 11/25/19 12/6/19 12 Improvement Plan

20 CARTAC:Strengthening Program Development & Miller Norris Anthony L 1/20/20 1/31/20 12 Compliance Risk Management Framework

21 CARTAC: Strengthening HQ Program Development Rosenberg Gertie L 1/20/20 1/31/20 12 and Compliance Program Merete

22 Guyana CARTAC: Review & Build Capacity in Headquarters Keene Vinette L 5/21/19 5/24/19 4 Function and Performance Management Bernice Elizabet

* (S – Short term expert, L – Long term expert, HQ – Headquarter staff)

Annual Report 2020 | CARTAC ANNEXES | 77 TAX ADMINISTRATION

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total

23 Jamaica CARTAC: Implementation of Modern Tax Miller Norris Anthony L 7/2/19 7/5/19 4 Administration IT System

24 Montserrat CARTAC: Strengthening Core Da Silva Shirley S 10/15/19 11/1/19 18 Administration Functions

25 CARTAC: Strengthening Core Admin Functions Miller Norris Anthony L 10/21/19 10/25/19 5

26 CARTAC: Strengthening Core Admin Functions Komso Andja S 3/30/20 3/30/20 1

27 Sint Maarten CARTAC: Scoping Mission to discuss proposed tax Miller Norris Anthony L 11/25/19 11/26/19 2 administration reform program and TA needs

28 CARTAC: Review of St Maarten ITAS Procurement Komso Andja S 3/10/20 3/19/20 10 Process and Contract

29 COVID-19-CARTAC:Cleansing of Taxpayer Komso Andja S 3/23/20 3/23/20 1 Registration Database

30 St. Lucia CARTAC: Building HQ Capacity Dawe Brian Howard S 6/3/19 6/14/19 12

31 CARTAC: Strengthen Risk Management Miller Norris Anthony L 7/9/19 7/11/19 3 and Audit Capacity

32 CARTAC: Develop Compliance Improvement Plan Dawe Brian Howard S 11/4/19 11/15/19 12

33 St. Vincent CARTAC: Building HQ Capacity Dawe Brian Howard S 5/6/19 5/17/19 12 And The 34 Grenadines CARTAC: Strengthen HQ Function-Program Miller Norris Anthony L 5/13/19 5/17/19 5 Development and Reporting

35 CARTAC: Arrears Management and Komso Andja S 7/15/19 7/26/19 12 Returns Processing

36 CARTAC: Arrears Management and Miller Norris Anthony L 7/15/19 7/18/19 4 Returns Processing

37 CARTAC: Enhancing HQ Program Development Miller Norris Anthony L 2/24/20 2/28/20 5 and Audit Program

38 Trinidad Post TADAT review Muyangwa S 10/7/19 10/18/19 12 And Tobago Muyangwa Charles

39 CARTAC: Strategic Review of Program Whyte-Givans S 10/7/19 10/18/19 12 Implemented to Address Weakness Identified by Sophia Alicia 2017 TADAT Assessme

40 CARTAC: Strategic Review of Program Edwards-Dowe Denise S 10/7/19 10/18/19 12 Implemented to Address Weakness Identified by 2017 TADAT Assessme

41 CARTAC: Post TADAT Assessment-Review Miller Norris Anthony L 10/7/19 10/18/19 12 Implementation of Reform Program

42 Turks TA Regional Missions Gheriss Farah HQ 7/21/19 7/26/19 6 And Caicos

43 Regional CARTAC: Developing a Disaster Miller Norris Anthony L 6/2/19 6/7/19 6 Recovery Plan Training

44 CARTAC: COTA General Assembly and Miller Norris Anthony L 7/22/19 7/26/19 5 Technical conference

45 CARTAC: RegionaL Audit Training RTAT Goggin S 9/16/19 9/27/19 12 Patrick Leonard

46 CARTAC: RegionaL Audit Training RTAT Miller Norris Anthony L 9/16/19 9/27/19 12

* (S – Short term expert, L – Long term expert, HQ – Headquarter staff)

78 | ANNEXES Annual Report 2020 | CARTAC CUSTOMS ADMINISTRATION

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total 1 Anguilla CARTAC: Customs Administration - Strengthen Risk Mendes Stephen John L 8/12/19 8/16/19 5 Management in Customs

2 Barbados CARTAC: Customs -Strengthen Risk Mendes Stephen John L 1/13/20 1/24/20 12 Management Capacity

3 CARTAC: Customs Administration - strengthening Wellens Jeremy Roland S 1/13/20 1/24/20 12 Post Clearance Audit Capacity

4 Belize CARTAC: Customs Administration - Strengthening Gillan John S 10/7/19 10/18/19 12 Post Clearance Audit Capacity

5 CARTAC: Customs Administration - Deliver TA in Risk Mendes Stephen John L 11/4/19 11/8/19 5 Management to Customs

6 CARTAC: Customs Administration - Develop and Gillan John S 2/3/20 2/14/20 12 Advanced Rulings Regime

7 Bermuda CARTAC: Customs Administration - Strengthening Mendes Stephen John L 10/7/19 10/11/19 5 Risk management Capacity

8 Customs Administration: Develop a Disaster Bines Gordon Henri S 1/13/20 1/24/20 12 Preparedness Plan

9 CARTAC: Customs Administration - Strengthening Wellens Jeremy Roland S 2/10/20 2/21/20 12 Post Clearance Audit Capacity

10 Curaçao CARTAC: Customs Admin - Strengthen Risk Mendes Stephen John L 6/17/19 6/21/19 5 Management Capacity

11 Strengthen Risk Management Capacity and Develop Wellens Jeremy Roland S 6/17/19 6/28/19 12 a Trusted trader Program

12 Dominica CARTAC: Customs Administration - Strengthening Gillan John S 1/6/20 1/17/20 12 Post Clearance Audit Capacity

13 Grenada CARTAC: Customs Administration - Strengthening Mendes Stephen John L 2/24/20 2/28/20 5 Risk Management Capacity

14 Guyana CARTAC: Revenue Admin - Strengthen Mendes Stephen John L 8/26/19 9/6/19 12 Risk Management Capacity & Develop a Trusted Trader Program

15 CARTAC: Customs Administration - Develop Risk Mendes Stephen John L 9/23/19 9/27/19 5 Management Capacity

16 Jamaica CARTAC: Customs Administration - Conduct Mendes Stephen John L 5/6/19 5/7/19 2 Workload Assessment for Customs

17 Customs Administration Rosenberg Gertie Merete S 5/6/19 5/17/19 12

18 CARTAC: Customs Administration - Workload Rosenberg Gertie Merete S 11/4/19 11/15/19 12 Analysis & Planning for Future Workload

19 Sint Maarten CARTAC: Customs Administration - To Identify TA Mendes Stephen John L 11/24/19 11/26/19 3 Needs of Customs

20 St. Vincent CARTAC: Revenue Admin - Strengthen Mendes Stephen John L 5/15/19 5/17/19 3 And The Risk Management Capacity & Develop a Grenadines Trusted Trader Program

21 CARTAC Customs: Strengthening Capacity in Risk Bines Gordon Henri S 6/24/19 7/5/19 12 Mgmt in Customs

22 CARTAC: Customs Administration - Strengthening Mendes Stephen John L 1/27/20 1/30/20 4 Risk Management Capacity

23 COVID-19 -Customs Administration [WFH] Scott Ian James S 3/9/20 3/20/20 12

* (S – Short term expert, L – Long term expert, HQ – Headquarter staff)

Annual Report 2020 | CARTAC ANNEXES | 79 CUSTOMS ADMINISTRATION

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total

24 Turks And CARTAC: Customs Administration - Scoping Visit to Mendes Stephen John L 2/3/20 2/6/20 4 Caicos Identify TA Priorities

25 CARTAC: Customs Administration Core Mendes Stephen John L 4/1/20 4/15/20 15 Functions - Develop Standard Operating Procedures for Core Proce

26 Regional CARTAC: Revenue Administration - Regional Seminar Mendes Stephen John L 6/2/19 6/7/19 6 in Disaster Preparedness Planning

27 Revenue Administration - Regional Seminar in Bines Gordon Henri S 6/2/19 6/7/19 6 Disaster Preparedness

28 CARTAC: Revenue Administration - Regional Seminar Mendes Stephen John L 11/18/19 11/22/19 5 on Developing a Trusted Trader Program

29 CARTAC: Customs Administration - Regional Seminar Wellens Jeremy Roland S 11/18/19 11/22/19 5 on developing a trusted trader program

PUBLIC FINANCE MANAGEMENT

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total 1 Anguilla CARTAC: PEFA Concept Note (WAH - 3 days) Ronsholt Frans Erik S 8/12/19 8/23/19 12

2 CARTAC:PEFA Training to the Government Ainsley Arnold James L 8/13/19 8/16/19 4 of Anguilla to prepare for the PEFA Assessment in October

3 CARTAC: PEFA Assessment Training Stacey Bruce M. L 8/14/19 8/16/19 3

4 CARTAC: PFM Effectiveness Review Post Hurricane Stacey Bruce M. L 10/6/19 10/12/19 7

5 CARTAC: PFM Post Hurricane Review Rafuse William S 10/7/19 10/11/19 5

6 CARTAC: PEFA Assessment Ainsley Arnold James L 10/7/19 10/11/19 5

7 CARTAC: PEFA Assessment Cavanagh Joseph Barry S 10/21/19 11/1/19 12

8 CARTAC: PEFA Assessment Ronsholt Frans Erik S 10/21/19 11/1/19 12

9 CARTAC: PEFA Assessment Ainsley Arnold James L 10/21/19 11/1/19 12

10 CARTAC: PEFA Assessment Stacey Bruce M. L 10/21/19 11/1/19 12

11 Bahamas CARTAC: Meeting with Bahamian Fiscal Stacey Bruce M. L 2/19/20 2/19/20 1 Responsibility Committee

12 COVID-19-CARTAC: Finalize PFM Legislation [WFH] McKenzie Lynne S 4/13/20 4/17/20 5

13 Barbados CARTAC: SOE Reporting (Training) Colvin James Mitchell S 11/25/19 11/29/19 5

14 CARTAC: SOE Unit Support (Training) Colvin James Mitchell S 12/2/19 12/6/19 5

15 Belize CARTAC: Participation IN PIMA (HQ) Ainsley Arnold James L 1/15/20 1/18/20 4

16 CARTAC: Participation in PIMA Ainsley Arnold James L 1/27/20 1/30/20 4 Assessment led by HQ

* (S – Short term expert, L – Long term expert, HQ – Headquarter staff)

80 | ANNEXES Annual Report 2020 | CARTAC PUBLIC FINANCE MANAGEMENT

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total

17 British CARTAC: PFM Effectiveness Review Post Hurricane Rafuse William S 7/8/19 7/12/19 5 Virgin 18 CARTAC: PFM Effectiveness Review Post Hurricane Stacey Bruce M. L 7/8/19 7/12/19 5 Islands 19 CARTAC: PFM Effectiveness Review Post Hurricane Stacey Bruce M. L 7/8/19 7/12/19 5

20 CARTAC: Improving Financial Reporting Ainsley Arnold James L 2/3/20 2/14/20 12

21 CARTAC: Improvement of IPSAS McRae Andrew Donald S 2/3/20 2/14/20 12 Financial Reporting

22 Curaçao CARTAC: Internal Audit Rafuse William S 8/26/19 8/30/19 5

23 CARTAC: Financial Reporting GFS 2014 Mission Cavanagh Joseph Barry S 9/2/19 9/6/19 5

24 COVID-19 CARTAC: Preliminary Investigation on Cangiano Marco S 4/20/20 4/29/20 10 Fiscal Risks (Remote TA)[WFH]

25 COVID-19 CARTAC: Fiscal Risk - Preliminary Stacey Bruce M. L 4/20/20 4/29/20 10 Investigations (Remote TA)

26 Dominica CARTAC: PFM Post Hurricane Review Rafuse William S 5/20/19 5/24/19 5

27 CARTAC: Post Hurricane Review Stacey Bruce M. L 5/20/19 5/24/19 5

28 Jamaica CARTAC: Scoping Mission to Jamaica Ainsley Arnold James L 10/2/19 10/4/19 3

29 Sint Maarten CARTAC: Tax Upgrade and Financial Management Stacey Bruce M. L 2/5/20 2/6/20 2

30 Turks And CARTAC: PFM Post Hurricane Review Rafuse William S 1/20/20 1/24/20 5 Caicos 31 CARTAC: PFM Effectiveness Review Ainsley Arnold James L 1/20/20 1/24/20 5 - Post Hurricane

32 CARTAC: PFM Post Hurricane Review Stacey Bruce M. L 1/20/20 1/24/20 5

33 Regional CARTAC: PFM Laws and Institutions - Follow-up of El Omari L 5/10/19 5/10/19 1 the FAD Mission in October 2017 Moulay Abderrahmane

34 CARTAC: Workshop on Internal Audit Workshop Rafuse William S 11/4/19 11/8/19 5

35 CARTAC: Internal Audit Workshop Stacey Bruce M. L 11/4/19 11/8/19 5

36 CARTAC: Workshop on Fiscal Risks Cangiano Marco S 11/18/19 11/22/19 5

37 CARTAC: Fiscal Risk Workshop Ainsley Arnold James L 11/18/19 11/22/19 5

38 CARTAC: Fiscal Risk Workshop Stacey Bruce M. L 11/18/19 11/22/19 5

39 CARTAC: Joint FAD/CARTAC.PEFTAC training& Ainsley Arnold James L 12/2/19 12/13/19 12 CARTAC Annual meeting

40 CARTAC: Joint FAD-CARTAC-PFTAC Seminar on Stacey Bruce M. L 12/4/19 12/6/19 3 Climate Resilienc

41 CARTAC: Workshop on Budget preparation and Frey Dana S 2/24/20 2/28/20 5 Execution - Gender Budgeting

42 CARTAC: Workshop on Medium Strategic and Ainsley Arnold James L 2/24/20 2/27/20 4 Gender Budgeting

43 CARTAC: Budget Workshop Stacey Bruce M. L 2/24/20 2/28/20 5

44 COVID-19-CARTAC: PFM Hurricane Rafuse William S 4/6/20 4/12/20 7 Caribbean Report [WFH]

* (S – Short term expert, L – Long term expert, HQ – Headquarter staff)

Annual Report 2020 | CARTAC ANNEXES | 81 MACROECONOMICS AND PROGRAMMING ANALYSIS

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total 1 ECCU / ECCB Scoping Mission on Financial Acosta Ormaechea HQ 9/2/19 9/6/19 5 Programming and Policies Santiago Leon

2 Scoping Mission on Financial Martinez Leonardo HQ 9/2/19 9/6/19 5 Programming and Policies

3 Scoping Mission on Financial Funke Norbert HQ 9/4/19 9/6/19 3 Programming and Policies

4 Anguilla CARTAC: Update Medium Term Fiscal Framework St Juste L 6/11/19 6/14/19 4 Embert Stanislaus

5 Antigua & CARTAC: Assist with Medium Term Macroeconomic St Juste L 6/24/19 6/28/19 5 Barbuda Forecasting Framework Embert Stanislaus

6 Bahamas CARTAC: Preparing the Fiscal Strategy Report St Juste L 10/14/19 10/25/19 12 Embert Stanislaus

7 Bermuda CARTAC: MTFF Mission St Juste L 9/16/19 9/20/19 5 Embert Stanislaus

8 ECCU / ECCB CARTAC: ECCB Customized Training Project St Juste L 9/2/19 9/6/19 5 (DSA) - Workshop Embert Stanislaus

9 CARTAC: Customised Training Project Pradelli Juan Jose S 9/2/19 9/6/19 5

10 Sint Maarten CARTAC: Tax Upgrade and Financial Management St Juste L 2/5/20 2/6/20 2 Embert Stanislaus

11 St. Lucia CARTAC: MAC DSA Training St Juste L 5/27/19 5/31/19 5 Embert Stanislaus

12 CARTAC: MAC DSA Training Mission Pradelli Juan Jose S 5/27/19 6/4/19 9

13 Suriname CARTAC: Debt Sustainability Analysis Training St Juste L 2/10/20 2/18/20 9 Embert Stanislaus

14 CARTAC: Debt Sustainability Analysis Training Pradelli Juan Jose S 2/10/20 2/18/20 9

15 USA CARTAC: Joint FAD-CARTAC-PFTAC Seminar on St Juste L 12/4/19 12/6/19 3 Climate Resilience Embert Stanislaus

16 Regional CARTAC: Regional Workshop on St Juste L 7/22/19 7/26/19 5 Macroeconomic Diagnostics Embert Stanislaus

17 CARTAC: Workshop on Fiscal and St Juste L 10/7/19 10/11/19 5 Debt Sustainability Embert Stanislaus

* (S – Short term expert, L – Long term expert, HQ – Headquarter staff)

82 | ANNEXES Annual Report 2020 | CARTAC FINANCIAL SECTOR SUPERVISION

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total 1 Belize CARTAC: Management of Credit Risk - Lewars L 7/8/19 7/12/19 5 Supervisory Process and Practices for Monitoring Ralph Constantine and conducting Cr

2 CARTAC: Risk-Based Supervision - TA on Pailhe S 7/8/19 7/12/19 5 Conducting Asset Quality Review Cristina Alejandra

3 CARTAC: Risk-Based Supervision - TA on Gutierrez S 7/8/19 7/12/19 5 Conducting Asset Quality Review Garcia Joaquin

4 CARTAC: WAH: Drafting of New Securities MacLaren Tanis June S 10/1/19 10/20/19 20 Legislation and Regulations (WaH 60 days)

5 CARTAC: Risk-Based Supervision & Other Lewars L 12/2/19 12/6/19 5 Supervisory Processes Ralph Constantine

6 CARTAC: WAH: Drafting of New Securities MacLaren Tanis June S 12/9/19 1/2/20 25 Legislation and Regulations (WaH 60 days)

7 CARTAC: Review of the Draft Securities Legislation MacLaren Tanis June S 1/8/20 1/10/20 3

8 CARTAC: Implementation Basel II/III Standards Lewars L 1/20/20 1/24/20 5 - Pillar 2 Ralph Constantine

9 CARTAC: Implement Basel II/III Standards - Delfiner Miguel Tomas S 1/20/20 1/24/20 5 Pillars 2 - Follow-up Mission

10 CARTAC: WAH: Drafting of New Securities MacLaren Tanis June S 2/3/20 2/17/20 15 Legislation and Regulations (WaH 60 days)

11 Curaçao CARTAC: Implement IFRS 9 Edwards S 5/27/19 5/31/19 5 Jr Gerald Alonzo

12 CARTAC: Basel II/III Implementation and Lewars L 1/27/20 1/31/20 5 Backstopping and Presenting Ralph Constantine

13 CARTAC: Implement Basel II/III Mission - Delfiner Miguel Tomas S 1/27/20 1/31/20 5 Pillars 1, 2 & 3

14 Guyana CARTAC:follow-Up on Basel II/III Implementation Lewars L 11/4/19 11/8/19 5 - Pillars 2 & 3 Ralph Constantine

15 CARTAC:Follow-Up Basel II/III Implement Mission Pailhe S 11/4/19 11/8/19 5 - Pillars 2 and 3 Cristina Alejandra

16 St. Lucia CARTAC:RBS Training Lewars L 10/21/19 10/25/19 5 Ralph Constantine

17 Suriname CARTAC: Implement IFRS 9 Edwards S 7/8/19 7/17/19 10 Jr Gerald Alonzo

18 Turks And CARTAC: Follow-up on Risk-Based Supervision and Lewars L 5/27/19 6/7/19 12 Caicos other Supervisory Processed Ralph Constantine

19 CARTAC: Risk-Based Supervision and other Thompson David Bruce S 5/27/19 6/7/19 12 Supervisory Processes

20 Regional CARTAC: CACS Conference Lewars L 5/6/19 5/7/19 2 Ralph Constantine

21 CARTAC: Caribbean Association of Credit Union Poprawa Andrew Stanley S 5/6/19 5/8/19 3 Supervisors (CACS) Regional Workshop

22 CARTAC: Caribbean Group of Securities Lewars L 6/13/19 6/14/19 2 Regulators Training Workshop Ralph Constantine

23 CARTAC: Caribbean Association of Insurance L 6/19/19 6/21/19 3 Regulators Conference

* (S – Short term expert, L – Long term expert, HQ – Headquarter staff)

Annual Report 2020 | CARTAC ANNEXES | 83 FINANCIAL SECTOR SUPERVISION

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total

24 Regional CARTAC: Caribbean Association of Chong Tai-Bell S 6/19/19 6/21/19 3 Insurance Regulators Michelle Patric

25 CARTAC: Enhancement of RBS Application and Lewars L 7/15/19 7/19/19 5 Core Supervisory Processes Ralph Constantine

26 CARTAC: Enhancement of RBS Application and Sheth S 7/15/19 7/19/19 5 Core Supervisory Processes Narendra Amritlal

27 CARTAC: Consolidated Risk-Based Lewars L 9/23/19 9/27/19 5 Supervision Workshop Ralph Constantine

28 CARTAC: Risk-Based Supervision- Tittonel Silvano S 9/23/19 9/27/19 5 Enhancing Practices

29 CARTAC: Risk-Based Supervision- Gutierrez Garcia Joaquin S 9/23/19 9/27/19 5 Enhancing Practices

30 CARTAC: Risk-Based Supervision- Chong Tai-Bell S 9/23/19 9/27/19 5 Enhancing Practices Michelle Patric

FINANCIAL STABILITY

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total 1 Belize CARTAC: Develop a Macroprudential Framework Paulin Graydon S 2/24/20 2/28/20 5 William

2 Cayman CARTAC: Developing the Stress Testing Framework Hafeman Michael Joseph S 6/3/19 6/7/19 5 Islands for the Domestic Insurance Industry

3 CARTAC: Develop a stress Testing framework for Langrin Ranse L 10/28/19 11/1/19 5 the Banking Sector Brian Mark

4 ECCU / ECCB CARTAC: Training Workshop on Consolidating the Langrin Ranse L 6/3/19 6/7/19 5 CBR Monitoring Toolkit Brian Mark

5 CARTAC: ECCU Workshop on Insurance stress Testing Hafeman Michael Joseph S 12/9/19 12/13/19 5

6 Guyana CARTAC: Strengthening the Insurance Sector Hafeman Michael Joseph S 5/20/19 5/24/19 5 Stress Testing Framework

7 Jamaica CARTAC: Insurance Sector Stress Testing Hafeman Michael Joseph S 9/2/19 9/13/19 12 Framework Development

8 CARTAC: Training on Financial Network Analysis Langrin L 12/16/19 12/20/19 5 Ranse Brian Mark

9 St. Lucia CARTAC: Developing a Stress-Testing Framework Saab Samer S 10/8/19 10/11/19 4 for the Credit Union Sector

10 Trinidad CARTAC: Peer-to-Peer training. T&T to Jamaica Langrin Ranse L 7/1/19 7/5/19 5 And Tobago Brian Mark

11 Turks And CARTAC: Training on CBRs Monitoring Toolkit Langrin Ranse L 10/21/19 10/25/19 5 Caicos Brian Mark

12 Regional CARTAC: CACS Workshop Langrin Ranse L 6/6/19 6/8/19 3 Brian Mark 13 CARTAC: CGSR Workshop L 6/13/19 6/14/19 2

14 CARTAC: CGSR Workshop Cuervo Redondo S 6/13/19 6/14/19 2 Cristina

15 CARTAC: CAIR Workshop for Insurance Regulators Langrin Ranse L 6/19/19 6/21/19 3 Brian Mark

* (S – Short term expert, L – Long term expert, HQ – Headquarter staff)

84 | ANNEXES Annual Report 2020 | CARTAC FINANCIAL STABILITY

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total

16 Regional CARTAC: Develop a Stress Testing Framework for Langrin L 9/2/19 9/13/19 12 the Insurance Sector Ranse Brian Mark

17 CARTAC: Present at Regional Workshop on L 9/23/19 9/27/19 5 Consolidated Risk-Based Supervision

18 CARTAC: Training Workshop on Regional L 10/15/19 10/18/19 4 Stability Report

19 CARTAC: Fin Stab - Implementing COVID-19 Stress L 3/23/20 3/31/20 9 Scenario Analysis for the Insurance Sector

20 CARTAC: REMOTE TA Fin Stab - Implement Hafeman Michael Joseph S 3/26/20 4/9/20 15 COVID-19 Stress Scenario Analysis for the Insurance Sector

REAL SECTOR STATISTICS

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total 1 Aruba CARTAC: Review of National Accounts Mission Abbasi Zia Ahmad L 11/18/19 11/27/19 10

2 Bahamas CARTAC: Review and improve quarterly Abbasi Zia Ahmad L 8/26/19 9/6/19 12 GDP-E estimates

3 Barbados CARTAC: Consumer Prices/Producer Price - Armknecht S 10/28/19 11/8/19 12 Dissemination of improved PPI and RPI Jr. Paul Anthony

4 CARTAC: National Accounts Statistics Jullion Roger S 1/27/20 1/31/20 5

5 Belize CARTAC: Consumer Prices/Producer Price - Fenwick David S 10/7/19 10/18/19 12 Rebase of the CPI

6 Bermuda CARTAC: Review of SUT and rebased GDP estimates Abbasi Zia Ahmad L 7/8/19 7/17/19 10

7 Grenada CARTAC: CPI Reweighting/PPI (Postponed) Fenwick David S TBC TBC 1

8 CARTAC: Assist with the compilation of the SUT Abbasi Zia Ahmad L 2/17/20 2/28/20 12

9 CARTAC: Consumer Prices/Producer Price to Lane Walter S 4/16/20 5/1/20 16 Grenada (Work from home)

10 Guyana CARTAC: NA Compilation of SUT (WFH) Abbasi Zia Ahmad L 3/23/20 4/3/20 12

11 Haiti CARTAC: (WFH) National Accounts-Review Ivan- S 4/25/20 5/4/20 10 balanced SUT & rebased GDP estimates to Haiti Ungureanu Clementina

12 Jamaica CARTAC: Consumer Prices/Producer Price - Armknecht S 9/16/19 9/27/19 12 Reweighting the CPI Jr. Paul Anthony

13 Sint Maarten CARTAC: Review of National Accounts (Postponed) Jullion Roger S TBC TBC 1

14 St. Kitts CARTAC: Assist with the compilation of the SUT Abbasi Zia Ahmad L 5/20/19 5/31/19 12 And Nevis 15 CARTAC: (WFH) Consumer Prices/Producer Price - Armknecht S 3/15/20 3/30/20 16 CPI Reweighting/PPI to St Kitts Jr. Paul Anthony

16 St. Lucia CARTAC: Assist with the compilation of the Abbasi Zia Ahmad L 10/14/19 10/25/19 12 rebased GDP estimates

17 CARTAC: Finalize revised GDP Estimates Abbasi Zia Ahmad L 1/27/20 2/7/20 12

18 St. Vincent CARTAC: Consumer Prices - Review the HBS data Fenwick David S 9/16/19 9/27/19 12 And The and update CPI weights Grenadines 19 CARTAC: National Accounts Statistics - Youll Robin S 10/7/19 10/18/19 12 Compilation of SUT

* (S – Short term expert, L – Long term expert, HQ – Headquarter staff)

Annual Report 2020 | CARTAC ANNEXES | 85 REAL SECTOR STATISTICS

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total

20 Trinidad CARTAC: Develop the SUT framework and Abbasi Zia Ahmad L 7/29/19 8/9/19 12 And Tobago collection of the input data

21 Regional CARTAC: Training Workshop: Improving and Armknecht S 9/30/19 10/4/19 5 Reweighting the CPI Jr. Paul Anthony

22 CARTAC: Training Workshop: Improving and Lane Walter S 9/30/19 10/4/19 5 Reweighting the CPI

23 CARTAC: CARICOM Heads of Statistics Meeting Abbasi Zia Ahmad L 10/28/19 10/30/19 3

24 CARTAC: Training: National Accounts - SUT Youll Robin S TBC TBC 1 compilation and rebasing GDP (Postponed)

EXTERNAL SECTOR STATISTICS

No. Benf. Cntry Description Name L/S* Start Dt End Dt Days Total 1 Antigua & CARTAC: Enhance capacity for BOP/ Cotto L 7/1/19 7/12/19 12 Barbuda IIP Compilation Cobar Borys Rolando

2 CARTAC: BOP/IIP - Enhance source data L 11/18/19 11/22/19 5

3 Aruba CARTAC: BOP/IIP - Review Methodology Lub Henk S 9/16/19 9/27/19 12

4 Cayman CARTAC: Balance of Payments Statistics Hierro Llanillo Alicia HQ 6/17/19 6/28/19 12 Islands

5 Curaçao CARTAC: Review BOP and IIP Data Valdivia- S 1/20/20 1/31/20 12 (Curaçao & St. Maarten) Velarde Perez Eduardo

6 Dominica CARTAC: BOP/IIP - Enhance source data Henry Chandar L.S. S 9/23/19 10/4/19 12

7 Grenada CARTAC: BOP/IIP - Enhance Source Cotto L 4/20/20 4/24/20 5 Data (Remote TA) Cobar Borys Rolando

8 Guyana CARTAC: Enhance Source data Cotto L 5/20/19 5/31/19 12 Cobar Borys Rolando

9 Haiti CARTAC: BOP/IIP - Implement BPM6 Collazos Maria S 2/3/20 2/14/20 12 (Offsite to Haiti) Mercedes Gaitan

10 Sint Maarten CARTAC: Tax Upgrade and Financial Management Cotto L 2/5/20 2/6/20 2 Cobar Borys Rolando

11 St. Kitts CARTAC: BOP/IIP - Enhance Source Data Cotto L 10/21/19 11/1/19 12 And Nevis Cobar Borys Rolando

12 St. Lucia CARTAC: BOP - Enhance Source Data Cotto L 1/27/20 1/31/20 5 Cobar Borys Rolando

13 St. Vincent CARTAC: BOP/IIP - Enhance source data Angulo Ranz Emma HQ 8/26/19 8/31/19 6 And The 14 Grenadines CARTAC: Review BOP Time Series (Remote TA) Cotto L 4/27/20 5/1/20 5 Cobar Borys Rolando

15 Suriname CARTAC: Review BOP Time Series Amiel Silvia Alejandra S 3/2/20 3/13/20 12

16 Turks CARTAC: IIP First-Time Compilation Henry Chandar L.S. S 4/29/19 5/10/19 12 And Caicos

17 Regional CARTAC: Training: External Debt Statistics Seminar Cotto L 11/25/19 11/29/19 5 Cobar Borys Rolando

18 Regional CARTAC: Training: External Debt Statistics Seminar Dinenzon S 11/25/19 11/29/19 5 Marcelo Gabriel

* (S – Short term expert, L – Long term expert, HQ – Headquarter staff)

86 | ANNEXES Annual Report 2020 | CARTAC Annex V. CARTAC: Seminars and Workshops, FY2020

CARTAC Regional Training Activities and Seminars (May 2019 - April 2020)

Gender Area Name Location Dates Male Female Total PUBLIC FINANCE MANAGEMENT PFM Medium-Term, Strategic and St. Kitts February 24-28 13 21 34 Gender Budgeting Workshop and Nevis Regional Workshop On Government Cash St. Lucia March 24-27 9 23 32 Management Fiscal Risk Management Workshop Trinidad November 18-22 12 21 33 and Tobago IMF Seminar on Strengthening Climate Resilience Washington December 4-6 11 6 17 DC, USA Internal Audit Workshop Barbados November 4-8 7 36 43

Totals 52 107 159 TAX ADMINISTRATION TAX Regional Tax Audit Team Workshop on Auditing the St. Kitts September 16-27 4 20 24 Financial Sector and Nevis

Totals 4 20 24 TAX & CUSTOMS ADMINISTRATION Disaster Preparedness Planning Workshop Dominican Republic June 3-7 18 19 37

Totals 18 19 37 CUSTOMS ADMINISTRATION Customs Developing a Trusted Trader Program Workshop Dominican Republic November 19-22 11 16 27

Totals 11 16 27 FINANCIAL STABILITY FIN Insurance Stress Testing Workshop St. Kitts December 9-13 7 7 14 STAB and Nevis Insurance Stress Testing Workshop Jamaica September 2-13 9 15 24

Totals 16 22 38 FINANCIAL SECTOR SUPERVISION FSS CARTAC/CACS Regional Workshop Grenada May 6-8 13 31 44 CAIR Conference Guyana Jun 19-21 15 46 61 CGSR Regional Conference and Workshop Bahamas June 13-14 12 16 28 High Level Seminar on Credit Unions in the Sint Maarten March 12-13 13 17 30 Caribbean Workshop on Implementing Risk Based Supervision St. Vincent and July 15-19 11 26 37 The Grenadines Regional Workshop on Consolidated Risk-Based Jamaica September 23-27 16 30 46 Supervision of Banking Groups and Financial Conglomerates Seminar on Safeguards Assessments of Central Banks Barbados February 24-28 21 20 41

Totals 101 186 287

Annual Report 2020 | CARTAC ANNEXES | 87 CARTAC Regional Training Activities and Seminars (May 2019 - April 2020)

Gender Area Name Location Dates Male Female Total MACROECONOMIC AND PROGRAMMING ANALYSIS MAC ICD Customized Training Course St. Kitts and Nevis September 2-6 5 11 16 MAC ICD Fiscal Sustainability Course Jamaica October 7-11 11 13 24 MAC Macroeconomic Diagnostic Course Barbados July 22-26 9 13 22

Totals 25 37 62 REAL SECTOR STATISTICS RSS Workshop on Improving and Reweighting the CPI St. Lucia Sept 30 - Oct 4 18 21 39

Totals 18 21 39 EXTERNAL SECTOR STATISTICS ESS Workshop on Compilation of External Debt Statistics St. Kitts and Nevis November 25-29 11 24 35

Totals 11 24 35

CARTAC Local Training Activities and Seminars (May 2019 - April 2020)

Gender Area Name Location Dates Male Female Total PUBLIC FINANCE MANAGEMENT

PFM SOE Training Barbados November 25-29 17 18 35 SOE Training Barbados March 9-20

Totals 17 18 35 TAX ADMINISTRATION TAX Compliance Risk Management Training Grenada January 27-31 5 11 16 Pre-TADAT Assessment Workshop Dominica February 11 11 22

Totals 11 11 22 CUSTOMS ADMINISTRATION Customs Introduction to Post Clearance Audit Barbados January 13-24 5 11 16 Seminar on the Principles of Risk Management, Post Curaçao June 17-21 12 0 12 Clearance Audit and Trusted Trader Program Trusted Trader and PCA Essentials Workshop Bermuda February 10-20 4 7 11

Totals 5 11 16 FINANCIAL STABILITY FIN Workshop on Conducting Onsite Review and Report Belize December 2-6 6 21 27 STAB Writing

Totals 6 21 27 FINANCIAL SECTOR SUPERVISION FSS Basel II Diagnostic Workshop Guyana November 4-8 7 17 24 Basel II Pillar II Workshop Belize January 20-24 6 17 23 Workshop on Management of Credit Risk - Belize July 8-12 5 14 19 Tools and Practices Workshop on Risk Based Supervision St. Lucia Oct 21-25 6 12 18 Workshop on Risk Based Supervision Turks and Caicos June 3-7 6 16 22

Totals 11 31 42

88 | ANNEXES Annual Report 2020 | CARTAC Annex VI. CARTAC: Technical Assistance Reports

FINANCIAL STABILITY

Report Date Date Issued No. Country Report Description dd-month-yy dd-month-yy

1 Anguilla Stress Testing of the Insurance Sector in the Eastern Caribbean Apr-20 27-Apr-20

2 Barbados Develop a Stress Testing Framework for the Insurance Sector Sep-19 Mar-20

3 Developing a Stress Testing Framework for the Insurance Sector 20-Mar-20 Apr-17

4 Belize Strengthening the Macroprudential Framework Feb-20 Jun-20

5 Cayman Islands Developing a Stress Testing Framework for the Domestic Jun-19 21-Aug-19 Insurance Industry 6 Develop a stress Testing framework for the Banking Sector 1-Oct-19 Pending

7 Dominica Stress Testing of the Insurance Sector in the Eastern Caribbean Apr-20 27-Apr-20

8 ECCB Stress Testing of the Insurance Sector in the Eastern Caribbean Apr-20 27-Apr-20

9 ECCU/ECCB Training Workshop on Consolidating the CBR Monitoring Toolkit Jun-19 Pending

10 ECCU Workshop on Insurance stress Testing Dec-19 Apr-20

11 Grenada Stress Testing of the Insurance Sector in the Eastern Caribbean Apr-20 27-Apr-20

12 Guyana Strengthening the Insurance Sector Stress Testing Framework May-19 Pending

13 Jamaica Develop a Stress Testing Framework for the Insurance Sector Sep-19 Mar-20

14 Training on Financial Network Analysis Dec-19 Mar-20

15 Developing a Stress Testing Framework for the Insurance Sector 20-Mar-20 Apr-17

16 Financial Interconnectedness Surveillance Using Network Analysis’ 20-Mar-20 Apr-15

17 Montserrat Stress Testing of the Insurance Sector in the Eastern Caribbean Apr-20 27-Apr-20

18 St. Lucia Developing a Stress-Testing Framework for the Oct-19 Pending Credit Union Sector 19 Trinidad Developing a Stress Testing Framework for the Insurance Sector Sep-19 Mar-20

20 Turks and Caicos Training on CBRs Monitoring Toolkit Oct-19 Pending

21 Regional Implementing COVID-19 Stress Scenario Analysis for the Mar-20 Pending Insurance Sector

FINANCIAL SECTOR SUPERVISION

Report Date Date Issued No. Country Report Description dd-month-yy dd-month-yy

1 Belize Drafting a New Securities Law 1-Oct-19 Pending

2 Basel II/III (Pillar 2 and SREP) Implementation - Follow-Up Mission 10-Jan-20 Pending

3 Curaçao IFRS 9 Implementation for Curaçao 8-May-19 10-Oct-19

4 Guyana Implementation of Basel II/III (Pillar 2) 4-Nov-19 11-Mar-20

5 Jamaica Consolidated Risk-Based Supervision of Banking Groups and 19-Mar-20 Pending Financial Conglomerates

6 Suriname IFRS 9 Implementation for Suriname - Regulations 8-Jul-19 11-Mar-20

7 Multi-Country Consolidated Risk-Based Supervision of Banking Groups and 23-Sep-19 13-May-20 Financial Conglomerates

Annual Report 2020 | CARTAC ANNEXES | 89 TAX ADMINISTRATION

Report Date Date Issued No. Country Report Description dd-month-yy dd-month-yy

1 Belize Developing 2020 Operational Plan for the Belize Tax Nov-19 23-Apr-20 Service Department

2 Supporting Human Resource Function in Integrating the Belize Oct-19 23-Apr-20 Domestic Tax Departments

3 Curaçao Tax Administration Modernisation through a New Tax 1-Jul-19 9-Mar-20 IS Implementation

4 Dominica Enhancing Taxpayer Services Delivery 1-Jun-19 19-Aug-19

5 Grenada Strengthening Compliance Management Nov-Dec 2019 27-Mar-20

6 St Lucia Strengthening HQ Capacity within Inland Revenue Department 1-Jun-19 24-Sep-19

7 Strengthening HQ Capacity-Developing Annual Work Programs 10-Nov-19 24-Jan-20

8 St. Vincent Strengthening Core Functions 1-Jul-19 9-Mar-20 & the Grenadines

CUSTOMS ADMINISTRATION

Report Date Date Issued No. Country Report Description dd-month-yy dd-month-yy

1 Anguilla Strengthening Risk Management in Customs 19-Aug-19 24-Sep-19

2 Barbados Implementing the Customs Aspects of the Barbados IMF 1-Jul-19 25-Sep-19 Loan Arrangement

3 Support to Post Clearance Audit 20-Jan-20 4-Mar-20

4 Belize Strengthening customs Post clearance audit 19-Nov-19 8-Jan-20

5 Trade Facilitation - Advanced Rulings 20-Feb-20 5-Mar-20

6 Strengthening Risk Management in Customs 19-Sep-19 12-Nov-20

7 Bermuda Strengthening Risk Management in Customs 19-Nov-19 5-Dec-20

8 Curaçao Strengthening Risk Management and Post Clearance 19-Oct-20 13-Jan-20 Audit in Customs

9 Dominica Support to Post Clearance Audit in Customs 20-Jan-20 5-Mar-20

10 Guyana Strengthening Risk Management in Customs 19-Sep-20 12-Nov-19

11 St. Vincent Developing and Strengthening Risk Management in Customs 1-Jul-19 24-Sep-19 & the Grenadines 12 Strengthening Risk Management in Customs 20-Jan-20 4-Mar-20

PUBLIC FINANCIAL MANAGEMENT

Report Date Date Issued No. Country Report Description dd-month-yy dd-month-yy

1 Curaçao Internal Audit Reform: Strengthening the Internal Audit Reform in 1-Aug-19 11-Nov-19 Caribbean Countries

2 Financial and Fiscal Reporting 1-Sep-19 11-Nov-19

3 Dominica PFM Post Hurricane Review 1-May-19 12-Aug-19

90 | ANNEXES Annual Report 2020 | CARTAC REAL SECTOR STATISTICS

Report Date Date Issued No. Country Report Description month-yy dd-month-yy

1 Aruba Technical Assistance Report on National Accounts Dec-20 30-Jan-20 Statistics Mission

2 Barbados Technical Assistance Report on Price Statistics Mission Oct-19 5-Dec-19

3 Barbados - Report on National Accounts Review Mission Feb-20 5-Mar-20

4 Bahamas Technical Assistance Report on Quarterly National Accounts Sep-19 23-Oct-19 Statistics Mission

5 Belize Technical Assistance Report on Consumer Price Index Mission Nov-20 26-Nov-19

6 Bermuda Technical Assistance Report on Review of Rebased GDP Mission Aug-19 9-Aug-19

7 St. Lucia Technical Assistance Report on Rebasing of GDP Mission Dec-19 2-Dec-19

8 Grenada Technical Assistance Report on Supply and Use Tables Mission Mar-20 30-Mar-20

9 Guyana Technical Assistance Report on Supply and Use Tables Mission Apr-20 30-Apr-20

10 Haiti Technical Assistance Report on National Accounts Mission Jun-19 21-Jun-19

11 Jamaica Technical Assistance Report on Price Statistics Mission Nov-20 12-Nov-20

12 St. Kitts & Nevis Technical Assistance Report on Supply and Use Tables Mission Jun-19 21-Jun-19

13 Technical Assistance Report on Price Statistics Mission Apr-20 30-Apr-20

14 St. Vincent Technical Assistance Report on the Consumer Prices Mission Oct-20 2-Nov-19 & the Grenadines 15 Technical Assistance Report on Supply and Use Tables Mission Nov-20 2-Dec-19

16 St. Lucia Technical Assistance Report on Rebasing of GDP Mission Feb-20 28-Feb-20

17 Trinidad and Tobago Technical Assistance Report on Supply and Use Tables Mission Aug-19 6-Sep-19

EXTERNAL SECTOR STATISTICS

Report Date Date Issued No. Country Report Description dd-month-yy dd-month-yy

1 Antigua & Barbuda Technical Assistance Report on External Sector Statistics Mission 1-Jul-19 14-Nov-19

2 Aruba Technical Assistance Report on External Sector Statistics Mission 1-Sep-19 1-Apr-20

3 Cayman Islands Report on External Sector Statistics Mission 1-Jun-19 3-Sep-19

4 Dominica Technical Assistance Report on External Sector Statistics Mission 20-Feb-20 5-Mar-20

5 Guyana Report on External Sector Statistics Mission 19-May-19 16-Oct-19

6 St. Vincent Technical Assistance Report on External Sector Statistics Mission 1-Aug-19 30-Oct-19 & the Grenadines

7 Turks & Balance of Payments Mission 1-May-19 1-Aug-19 Caicos Islands

Annual Report 2020 | CARTAC ANNEXES | 91 Annex VII. CARTAC: Planned TA by Country and Programme (RPDs)

PLANNED TA BY COUNTRY AND PROGRAMME (RPDs)

PFM TAX Customs FSS Fin Stab MAC ESS RSS DEBT Total

Anguilla 19 40 11 – – 12 – 19 – 101

Antigua and Barbuda – 5 – 93 – – 17 - – 115

Aruba 81 50 29 – 17 – 21 20 – 218

Bahamas 57 – – – – 46 38 – 37 178

Barbados 38 150 129 24 39 62 10 10 26 488

Belize 28 45 28 116 48 – – 19 35 319

Bermuda 23 – 18 – – - 18 – – 59

British Virgin Islands 58 – – – 24 – – – – 82

Cayman Islands – – – – 17 – – – – 17

Curaçao 31 43 26 – – – 22 – – 122

Dominica 87 166 29 10 – 17 16 – – 325

ECCB/ECCU – – – 73 – 46 12 – 18 149

Grenada – 62 – 10 – – 15 24 – 111

Guyana 19 18 38 23 – – 23 25 – 146

Haiti 23 18 – – 24 – 21 – – 86

Jamaica 28 65 – 99 65 – 21 19 18 315

Montserrat 26 61 – – – – – – – 87

Saint Lucia 49 94 – 23 – 48 12 – 18 244

Sint Maarten 56 47 – – – 12 12 21 – 148

St Kitts and Nevis – 96 – – 24 12 17 40 – 189 St Vincent and 17 62 37 15 – – 12 41 – 184 The Grenadines Suriname 19 – – 14 29 – 23 – – 85

Trinidad and Tobago 176 18 16 51 25 – 21 19 56 382

Turks and Caicos Islands 19 18 48 20 34 – – 23 – 162

Regional 137 125 45 43 105 121 59 83 34 752

Total 991 1,183 454 614 451 376 390 363 242 5,064

92 | ANNEXES Annual Report 2020 | CARTAC Annex VIII. CARTAC: Key Economic Indicators

PLANNED TA BY COUNTRY AND PROGRAMME (RPDs) Caribbean Countries: Main Economic Indicators

External Current Account PFM TAX Customs FSS Fin Stab MAC ESS RSS DEBT Total Output Growth (%) Inflation1 (End of period %) Balance (% of GDP) Anguilla 19 40 11 – – 12 – 19 – 101 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Antigua and Barbuda – 5 – 93 – – 17 - – 115 (Est.) (Proj.) (Proj.) (Est.) (Proj.) (Proj.) (Est.) (Proj.) (Proj.)

Aruba 81 50 29 – 17 – 21 20 – 218 Antigua and Barbuda 3.1 7.4 5.3 –10.0 8.0 2.4 1.7 1.6 1.3 2.0 –7.8 –13.6 –7.5 –25.6 –25.3

Bahamas 57 – – – – 46 38 – 37 178 Aruba 2.3 1.2 0.4 –13.7 12.1 –0.5 4.5 5.2 –0.7 3.3 1.1 –0.1 –0.2 –11.2 –1.1

Barbados 38 150 129 24 39 62 10 10 26 488 The Bahamas 0.1 1.6 1.8 –8.3 6.7 1.6 2.0 1.8 2.9 2.7 –12.4 –12.1 0.6 –12.7 –9.3

Belize 28 45 28 116 48 – – 19 35 319 Barbados 0.5 –0.6 –0.1 –7.6 7.1 6.6 0.6 7.2 0.7 2.4 –3.8 –4.0 –3.6 –7.8 –5.6

Bermuda 23 – 18 – – - 18 – – 59 Dominica –9.5 0.5 9.2 –4.7 3.4 1.4 1.4 1.8 1.8 2.0 –8.8 –44.6 –29.4 –33.8 –26.4

British Virgin Islands 58 – – – 24 – – – – 82 Dominican Republic 4.7 7.0 5.1 –1.0 4.0 4.2 1.2 3.7 3.0 4.0 –0.2 –1.4 –1.4 –5.2 –3.7

Cayman Islands – – – – 17 – – – – 17 Grenada 4.4 4.1 3.1 –8.0 6.1 0.5 1.4 0.9 0.3 1.3 –14.4 –15.9 –15.8 –27.7 –18.0

Curaçao 31 43 26 – – – 22 – – 122 Haiti2 1.2 1.5 –1.2 –4.0 1.2 15.4 13.3 20.1 23.0 20.0 –1.0 –3.9 –1.4 –3.6 –0.8

Dominica 87 166 29 10 – 17 16 – – 325 Jamaica 0.7 1.9 1.0 –5.6 3.5 5.2 2.4 6.2 4.9 5.4 –2.6 –1.8 –1.9 –7.8 –3.1

ECCB/ECCU – – – 73 – 46 12 – 18 149 St. Kitts and Nevis –2.0 2.9 2.9 –8.1 8.5 0.8 –0.7 0.4 1.4 2.0 –11.2 –5.7 –1.7 –10.7 –8.5

Grenada – 62 – 10 – – 15 24 – 111 St. Lucia 3.5 2.6 1.7 –8.5 6.9 2.0 2.2 0.7 0.7 2.0 –1.0 2.2 4.6 –10.3 0.2

Guyana 19 18 38 23 – – 23 25 – 146 St. Vincent and The Grenadines 1.0 2.2 0.4 –4.5 5.4 3.4 1.4 0.5 1.5 2.0 –11.6 –12.0 –10.1 –20.1 –14.8

Haiti 23 18 – – 24 – 21 – – 86 Trinidad and Tobago –2.3 –0.2 –0.0 –4.5 2.6 1.3 1.0 0.4 –1.0 1.3 5.4 5.6 5.1 –3.3 0.5

Jamaica 28 65 – 99 65 – 21 19 18 315 Memorandum items

Montserrat 26 61 – – – – – – – 87 Tourism dependent3 0.9 1.9 1.4 –7.5 5.8 3.6 1.8 3.9 3.2 3.6 –6.3 –6.4 –2.3 –11.7 –6.9

Saint Lucia 49 94 – 23 – 48 12 – 18 244 Simple average 0.5 2.4 2.4 –8.3 6.8 2.2 1.5 2.5 1.4 2.4 –7.2 –10.5 –6.6 –16.9 –11.0

Sint Maarten 56 47 – – – 12 12 21 – 148 Commodity exporters4 –1.2 0.7 0.9 5.4 3.6 2.5 1.7 1.1 5.5 2.5 3.6 –0.1 –2.6 –7.6 –4.8

St Kitts and Nevis – 96 – – 24 12 17 40 – 189 Simple average 0.5 2.2 2.3 14.4 4.6 4.0 2.7 2.2 16.8 4.0 0.4 –10.0 –15.3 –11.9 –9.8

St Vincent and ECCU5 0.6 3.8 3.7 –7.6 6.1 1.7 1.3 1.0 1.1 1.9 –7.7 –12.1 –8.9 –21.4 –14.2 17 62 37 15 – – 12 41 – 184 The Grenadines Sources: IMF, World Economic Outlook database; and IMF staff calculations and projections. Suriname 19 – – 14 29 – 23 – – 85 1 End-of-period (December) rates. These will generally differ from period average inflation rates reported in the IMF World Economic Outlook, although both Trinidad and Tobago 176 18 16 51 25 – 21 19 56 382 are based on identical underlying projections. 2 Fiscal year data. Turks and Caicos Islands 19 18 48 20 34 – – 23 – 162 3 Includes Antigua and Barbuda, Aruba, The Bahamas, Barbados, Belize, Dominica, Grenada, Jamaica, St. Kitts and Nevis, St. Lucia, and St. Vincent and The Grenadines. Regional 137 125 45 43 105 121 59 83 34 752 4 Includes Guyana, Suriname, and Trinidad and Tobago. 5 Total 991 1,183 454 614 451 376 390 363 242 5,064 Eastern Caribbean Currency Union (ECCU) comprises Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and The Grenadines, as well as Anguilla and Montserrat, which are not IMF members.

Annual Report 2020 | CARTAC ANNEXES | 93 Real GDP Growth (%) Real GDP Growth (%) CARTAC: Key Economic Indicators 8.00 8.00 6.00 6.00 4.00 4.00 2.00 Real GDP Growth (%) 2.00 Real GDP - Growth (%) - (2.00) (2.00) 8.00 (4.00) (4.00) (6.00) 6.00 (6.00) (8.00) 4.00 (8.00) (10.00) 2.00 (10.00) - 2017 2018 2019 Est. 2020 Proj. 2021 Proj. (2.00) 2017 2018 2019 Est. 2020 Proj. 2021 Proj. (4.00) Tourism Dependent Commodity Exporters ECCU (6.00) Tourism Dependent Commodity Exporters ECCU (8.00) (10.00) 2017 2018 2019 Est. 2020 Proj. 2021 Proj.

Tourism Dependent Commodity Exporters ECCU

Public Sector Primary Balance (% of GDP) Public Sector Primary Balance (% of GDP) Public Sector Primary Balance (% of GDP) 4.0 4.0 2.0 2.0 Public Sector Primary Balance (% of GDP) 0.0 0.0 –2.04.0 –2.0 –4.02.0 –4.0 –6.00.0 –6.0 2017 2018 2019 Est. 2020 Proj. 2021 Proj. –2.0 2017 2018 2019 Est. 2020 Proj. 2021 Proj. Tourism Dependent Commodity Exporters ECCU –4.0 Tourism Dependent Commodity Exporters ECCU

–6.0 2017 2018 2019 Est. 2020 Proj. 2021 Proj.

Tourism Dependent Commodity Exporters ECCU Public Sector Gross Debt (% of GDP) Public SectorPublic SectorGross Gross Debt Debt (% (% of of GDP)GDP)

100.0 100.0 80.0 80.0 Public Sector Gross Debt (% of GDP) 60.0 60.0 40.0 100.040.0 20.0 20.080.0 0.0 60.00.0 2017 2018 2019 Est. 2020 Proj. 2021 Proj. 2017 2018 2019 Est. 2020 Proj. 2021 Proj. 40.0 Tourism Dependent Commodity Exporters ECCU Tourism Dependent Commodity Exporters ECCU 20.0

0.0 2017 2018 2019 Est. 2020 Proj. 2021 Proj. 94 | ANNEXES Annual Report 2020 | CARTAC Tourism Dependent Commodity Exporters ECCU Annex IX. CARTAC Staff

COORDINATOR TECHNICAL ADVISERS

Samuel, Wendell Abbasi, Zia Ahmad Arnold Ainsley Cotto-Cobar, Borys Programme Coordinator Real Sector Public Finance External Sector Statistics Adviser Management Adviser Statistics Adviser

Rosenberg, Merete G. Langrin, Brian Lewars, Ralph Mendes, Stephen Tax Administration Financial Stability Financial Sector Customs Adviser Adviser Adviser Supervision Adviser

Miller, Norris Stacey, Bruce St. Juste, Embert Trotter, Azziza Tax Administration Public Finance Macroeconomics Economist Adviser Management Adviser Adviser

Annual Report 2020 | CARTAC ANNEXES | 95 Annex VIII. CARTAC Staff

ADMINISTRATIVE STAFF

Lovell, Tamara Squires, Lisa Savannah-Rose, Bonnie Barrow, Sally-Ann Office Manager Executive Assistant Senior Accounting Senior Administrative Assistant Assistant

Springer, Aysha Lovell, Shirley-Ann Blackett, Everton Thomas, Margo Administrative Administrative Chauffeur Office Cleaner Assistant Assistant

96 | ANNEXES Annual Report 2020 | CARTAC

CARIBBEAN REGIONAL TECHNICAL ASSISTANCE CENTRE

ANNUAL REPORT CARTAC

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