The International Monetary Fund (IMF) has pledged technical support to the harmonisation of the East African Community (EAC) reforms in the financial sector.

The proposed IMF’s regional financial sector project will assess the EAC’s frameworks for monetary stability, cross border and sectoral linkages and policy challenges, as well as evaluating the harmonisation of institutional and regulatory infrastructures.

The support was announced in the recently concluded 12th meeting of the EAC Monetary Affairs Committee (MAC) held at Kigali Serena Hotel.

François Kanimba, Governor of the National Bank of Rwanda, said that the IMF initiative will pave the way for a successful monetary union in the sub-region.

The EAC central banks governors commended the project but requested the IMF to include local experts. According to Kal Wajid, the IMF Division Chief in the Monetary and Capital Markets Department, the project was motivated by the EAC integration agenda and the current global financial crisis.

It will also assist to analyse the soundness of key financial institutions, the impact of the crisis, and mechanisms for emergency liquidity assistance.

During the meeting, participants deliberated on a wide range of issues which included; the efficiency of the financial sector, the status of the national payments systems and the legal and regulatory frameworks particularly with regard to the banking and microfinance sub-sectors.

They also tackled issues concerning information technology, including emerging issues of electronic banking and its impact on monetary policy, and the building of requisite technical capacity to facilitate effective implementation of policies by the respective central banks.

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