WASHINGTON (MNI) – The following was issued Friday by the U.S.
Treasury Department:

Today, Secretary Tim Geithner chaired a meeting of finance
ministers and representatives of key international financial
institutions to advance work under the Deauville Partnership with Arab
Countries in Transition, a unique forum launched last year in response
to the historic changes in the Middle East and North Africa.
Participation in the Partnership includes the five transitioning
countries (Egypt, Jordan, Tunisia, Morocco, and Libya), G-8 countries,
Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Turkey, and 10
international financial institutions (IFIs).

The Middle East and North Africa region is undergoing one of the
most important transitions of our time. In the face of numerous
challenges, the five transitioning countries have taken steps to
solidify their movement toward democracy and advance economic
development. However, these countries face growing economic challenges,
including a difficult external environment and, for some countries,
delays in the political transition. The Partnership provides a valuable
platform through which the international community is engaging with and
helping these transitioning countries to achieve their objectives of
inclusive, sustainable growth.

Transition Fund

The Partnership agreed to explore a new Transition Fund that will
provide grants, technical assistance, and knowledge exchange, with due
consideration to bilateral and multilateral assistance, to help
countries strengthen their institutions and develop and implement
home-grown reforms. The United States, United Kingdom, European Union,
Saudi Arabia, France, and Italy agreed to work together with other
partners to advance this initiative.

Capital Markets Access Initiative

Recognizing the importance of assisting countries in maintaining
financial stability, the Partnership agreed to launch a new initiative
to help countries regain access to private capital to spur growth and
unlock potential investments in the region. The Capital Markets Access
initiative aims to help countries like Egypt and Tunisia close their
substantial financing gaps. As part of this initiative, the United
States is moving forward to extend a loan guarantee to Tunisia to
support the issuance of a sovereign bond on international markets.
European Bank for Reconstruction and Development Expansion

In 2011, the Partnership agreed to support the extension of the
geographic mandate of the European Bank for Reconstruction and
Development (EBRD) to the Middle East and North Africa region. To date,
24 EBRD members, including the United States, have taken steps to make
this expansion effective. The Partnership called on all members to
proceed as quickly as possible with ratification of the necessary
amendments. The EBRD will eventually have the capacity to invest as much
as $3 billion Euros a year in the region.

International Financial Institutions Engagement

Last year the IFIs established a dedicated Coordination Platform to
better leverage the collective resources of the 10 IFIs that work in the
region. Today, the Partnership called on these IFIs, which are now
participating in the Partnership, to deliver on their commitments in the
short term, particularly in the area of job creation and small and
medium enterprise (SME) development. Examples of ways in which the IFIs
are providing concrete support to the transitioning countries this year
include:

— The provision of development policy loans to Tunisia
(African Development Bank and World Bank), Jordan (World Bank), and
Morocco (World Bank) underpinning governance, private sector reforms and
domestic markets.

— In Tunisia, the African Development Bank is supporting
SME credit lines and rural infrastructure to support inclusive growth.

— Support for public-private partnerships through the Arab
Financing Facility for Infrastructure, launched last year by the World
Bank and Islamic Development Bank.

— Development of relevant post-secondary education skills
in the region through the International Financial Corporation “e4e
Initiative for Arab Youth.”

** MNI Washington Bureau: 202-371-2121 **

[TOPICS: M$$EC$,M$C$$$,M$U$$$,MN$FX$,MT$$$$,MI$$$$,M$J$$$,M$X$$$,M$A$$$,M$Q$$$]