Finance ministry and Central Bank sign memo |31 December 2008

The MoU was signed on Monday by principal secretary for Finance Ahmed Afif and Central Bank governor Pierre Laporte.

“The purpose of the MoU is to ensure transparency and efficiency and to facilitate the work undertaken by the CBS for and on behalf of the government,” Mr Laporte told Nation yesterday.

The MoU defines the roles of the government and the bank with regard to the institutional arrangements between these two parties.

“It sets out the working arrangements between the CBS and the ministry to set a minimum standard of communication so as to clarify each party's roles, responsibilities and obligations. It also sets out an agreed basis for policy and operational coordination between the CBS and the ministry,” he said.

The MoU was drafted to be in accordance with the powers of the CBS Act 2004 and the laws guiding fiscal operations of the ministry.

The governor also said a national debt management committee will be set up and be
mandated by law to review and advise on matters related to government borrowing.