USAID MIDDLE EAST ECONOMIC GROWTH BEST PRACTICES PROJECT ECONOMIC MANAGEMENT FOR STABILITY (EMS) IN NORTHEAST SYRIA Quarterly Report July 1, 2023 – September 30, 2023

The primary objective is to create a transparent and efficient economic governance ecosystem for NES. During the quarter, EMS worked on promoting tangible progress towards key policy, regulatory, and institutional reforms in four core focus areas: (1) a best practice compliant policy/regulatory/institutional framework for efficient and transparent financial sector and payments system operations; (2) a sound budget planning and administration policy/procedural/institutional framework; (3) an improved agricultural policy/institutional framework; and (4) foundational elements of the enabling environment regime for private sector business operations and investment. EMS has collaborated closely with the Central Monetary and Payments Office's (CMPO) Economic Research and Statistics Directorate (ERSD) to enhance the GDP/Economic Growth Survey. The survey's scope was broadened to include a more extensive and representative selection of companies, encompassing public sector entities across various industries. EMS also focused on building the capacity of the ERSD team, equipping them with the necessary skills to effectively execute the GDP/Economic Growth Survey. This training included the analysis of survey responses using Excel and the compilation of monetary and financial statistics. The data collection efforts were expanded related to the balance of payments, laying the foundation for the development of the inaugural "Quarterly Financial Bulletin." This Bulletin is slated for release by end-December 2023 and is set to adhere to best practice macro financial reporting standards. EMS Accounting Advisors made significant efforts to improve CMPO's manual accounting system and provided crucial support in conducting a thorough review of all entries in the General Ledger. Through meticulous validation of these entries, EMS contributed to the systematic generation of a master trial balance and a comprehensive set of financial accounts. EMS also played a key role in facilitating the effective streamlining of the organization's financial data management processes, which will ultimately result in a consolidated daily reconciliated balance for CMPO. Under the new accounting framework supported by EMS, each department assumes responsibility for recording daily transactions in both Syrian Pounds and US Dollars using Microsoft Excel. Subsequently, these accounting entries are to be consolidated and posted to the General Ledger. EMS Payment Systems advisors supported CMPO in making significant progress across key reform areas that are fundamental prerequisites for the successful establishment of a functional Payments System in the NES region. Core advisory support activities were primarily centered around the introduction of regulations for Private Service Providers (PSP), E-money, and Know Your Client (KYC). In addition, EMS experts have contributed to the development of a robust payment services pricing scheme. This scheme ensures a competitive and transparent process for selecting a highly qualified vendor for the highly anticipated and EMS-supported Payments System. Technical assistance to farmers and livestock breeders supported a significant expansion of key agricultural activities, including production of nutrient-rich vegetable crops and protein-rich meat, eggs, and milk. FDI and local investment fostered and facilitated with EMS assistance reached $5 million during the quarter, with $1.3 million more in the pipeline, significantly enhancing the competitiveness of MSME networks in key high-potential agriculture/agribusiness subsectors of the economy.