The European Bank for Reconstruction and Development (EBRD) and the Arab Monetary Fund (AMF) have pledged to deepen their cooperation in order to respond effectively to the economic requirements of emerging Arab democracies.
Both organisations are already members of the Deauville Partnership established in 2011 in support of the economic and political changes in the Middle East and North Africa. A Memorandum of Understanding signed today by the heads of the EBRD and AMF sets out a framework for greater cooperation in countries in this region.
The AMF supports the process of economic development in 22 member countries. The EBRD is currently expanding its activities to include the southern and eastern Mediterranean region, focussing specifically on Egypt, Morocco, Tunisia and Jordan.
Greater cooperation between the two organisations will allow them to achieve synergies and to leverage their respective core competencies and comparative advantages.
In particular the AMF and the EBRD will cooperate in promoting financial markets in the countries of joint interest in the region, recognising the AMF's long experience in these countries and the EBRD's specific experience in the capital markets sector.
Speaking at a ceremony to mark the accord, EBRD President Thomas Mirow said: “The EBRD has extensive experience in assisting in the development of capital markets and local currency based finance, expertise we look forward to providing in the new region. It is precisely because this is a new region for the EBRD that we attach so much value to working with the AMF, with its wealth of local experience.”
Jassim Al-Mannai, the Director General Chairman of the Board of the AMF, said: “Facilitating access to long term finance, will impact positively on the financial and economic stability of the region”. He added that, “we are very pleased to cooperate with the EBRD in supporting the development of the debt markets in the region”.
Cooperation will focus on the sharing of information, joint missions, shared technical papers and coordinated policy dialogue with the aim of establishing deep, liquid and transparent local currency capital markets in the countries of joint interest in the region.
In addition, the AMF, acting through its subsidiary the Arab Trade Financing Program, and the EBRD, through its Trade Facilitation Programme, will cooperate in the area of trade finance in the region.
