Lok Sabha Question No. 2243 (UNSTARRED), answered on 2016-05-06
Subject: MoU with IMF
Ministry: FINANCE
Asked by: VIJAY KUMAR S.R., ASHOK SHANKARRAO CHAVAN, GAJANAN CHANDRAKANT KIRTIKAR, JAYAKUMAR JAYAVARDHAN, KUNWAR HARIBANSH SINGH

- (a)  whether the Government has signed a Memorandum of Understanding (MoU) with International Monetary Fund (IMF) to establish a South Asia Regional Training and Technical Assistance Centre (SARTTAC) in the national capital;
- (b)  if so, the details thereof and the objective behind this move;
- (c)  the terms and conditions of the MoU;
- (d)  the details and number of courses being offered by SARTTAC for policy makers and other Government agencies; and
- (e)  the time by which the said centre is likely to be established and made functional?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI JAYANT SINHA)

(a) & (b): Yes, Madam. To give fillip to capacity development efforts, India has decided to host  South  Asia  Regional  Training  and  Technical  Assistance  Centre  (SARTTAC)  by International Monetary Fund (IMF) in India. SARTTAC will serve six member countries of Bangladesh,  Bhutan,  India,  Maldives,  Nepal  and  Sri  Lanka.  It  will  provide  training  to government and public sector employees, enhance their technical and analytical skills and improve the quality of their inputs into policy.   It will also provide technical assistance to governments and public institutions in various areas such as macroeconomic policy, macroand micro-prudential regulation, financial  sector supervision  as  well  as  national  accounts, statistics and forecasting.

(c): The terms and conditions of the MoU are at Annexure I.

(d) & (e): The details and number of courses being offered by SARTTAC for policy makers and other Government agencies would be decided by the Steering Committee of SARTTAC with  representatives  of  IMF,  member  countries  and  donors  (development  partners)  of SARTTAC. SARTTAC will be established during 2016-17 and will become fully operational in 2017-18.

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## The Terms and Conditions of the MoU

1. India  undertakes  to  facilitate  the  establishment  and  operations  of  South  Asia Regional Training and Technical Assistance Centre (SARTTAC)  in India.
2. SARTTAC will  have  resident  employees  of  the  International  Monetary  Fund  (IMF) who are foreign nationals, locally-hired employees of the IMF, and short-term experts employed by the IMF, in particular:
3. (a) The IMF will select and appoint a Director to head SARTTAC;
4. (b)    The IMF  will  select  and appoint resident advisors, resident trainers, and short-term experts  who  will  be  specialists  in  core  areas  of  IMF  expertise,  on  such  terms  as deemed appropriate by the IMF to serve the needs of the Beneficiary Countries;
5. (c)    The  IMF  will  select  and  appoint locally-hired employees on such terms as deemed appropriate by the IMF to reflect the needs of the Center.

## Annexure I

3. The  development  of  SARTTAC's  strategy  and  priorities  for  training,  technical assistance, and activities in support thereof, including through the endorsement of an indicative annual work plan, will be guided by a Steering Committee. The Steering Committee will meet at least once a year and will comprise representatives of (i) the Beneficiary Countries, (ii) other countries that support SARTTAC (hereafter 'Partner Countries'), and (iii)  the  IMF.  The  Steering  Committee may  authorize  observers  to attend  its  meetings.  The  Director  will  serve  as  the  Secretary  to  the  Steering Committee.
4. Officials of the Beneficiary Countries will be eligible to participate in the training and technical  assistance  programs  offered  by  SARTTAC. Officials from  other  countries may be invited to participate in some events, as agreed by the IMF and the Steering Committee.
5. The operating expenses of SARTTAC, including costs of the IMF Employees, training events,  seminars,  workshops,  travel  costs,  participant  costs  and  related  expenses, will  be  covered  from  financial  contributions  from  the  Beneficiary  Countries  and  the Partner  Countries,  administered  by  the  IMF  under  a  multi  donor  administrative subaccount in accordance with its policies and procedures.
6. SARTTAC will be established in a location selected by the IMF, in consultation with India, and financed with funds from the SARTTAC budget.
7. India undertakes to provide a financial contribution to SARTTAC.
8. India affirms its obligation to extend the privileges and immunities, as applicable, set forth  in  Article  IX  of  the  IMF's  Articles  of  Agreement  and  the  United  Nations Convention on the Privileges and Immunities of the Specialized Agencies, which are provided through India's International  Monetary  Fund and Bank Act, 1945 and the United Nations (Privileges & Immunities) Act, 1947.
9. The Memorandum of Understanding may be amended by mutual consent expressed in  writing.  Any  dispute  arising  from  the  interpretation  or  the  implementation  of  the Memorandum of Understanding shall be resolved through appropriate consultations and by mutual agreement of the parties.