## cr17304

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---

### Executive Summary — mission and objectives
- Mission: Monetary and financial statistics (MFS) mission from the IMF’s Statistics Department (STA) visited Kampala during April 4–15, 2016.
- Mission team: Mr. Edgar Ayales, MFS expert, and Mr. Cormac Sullivan, Information Management Assistant in the STA’s Statistical Information Management Division.
- Project context: Japan Administered Account for Selected IMF Activities: Project for the Financing of Technical Assistance Activities Supporting Preparations for Monetary Union in the Monetary Policy and Statistical Areas in the East African Community (EAC).
- Main objectives:
  - Compile the sectoral balance sheet of other financial corporations (OFCs) using the IMF’s Standardized Report Form (SRF-4SR).
  - Expand coverage of other depository corporations (ODCs) in the SRF-2SR to include savings and credit cooperatives (SACCOs).
  - Follow up on progress in compiling intra-EAC positions.
  - Review MFS data currently submitted to STA (including interest rates and monetary aggregates).

### Source data review, mappings, and compilation work
- Mappings reviewed for SRF-2SR and SRF-4SR: SACCOs, insurance companies, National Social Security Fund (NSSF), private pension schemes, non-deposit taking microfinance institutions (NDTMFIs), Uganda Development Bank (UDB), foreign exchange (FOREX) bureaus, and investment funds.
- Findings:
  - "The source data were generally sufficient for mapping, once various clarifications were provided in bilateral meetings with the Uganda Retirement Benefits Regulatory Authority (URBRA), the Insurance Regulatory Authority, the umbrella institution for SACCOs, and the UDB."
  - Mappings were agreed with the regulatory authority for each subsector and staff of the Bank of Uganda’s Statistics Department (SD).
- Recommendations highlighted:
  - Improvements to the coverage of 6SR, including the inclusion of government bond yields and stock exchange data.

### Training, presentations, and capacity building
- Delivered half-day training to 65 representatives of the ODCs responsible for compilation and submission of 2SR data to the BOU.
- Presentations made to staff of the MSDDD and Research and Policy Directorate on:
  - Currency union statistics.
  - Balance sheet analysis to assess debt vulnerabilities.
- Reception: "The training and presentations were well received by the participants."

### Intra-EAC positions and regional reporting
- Reviewed and recommended improvements to BOU report forms for compiling intra-EAC positions for:
  - Central bank (1SR).
  - Other depository corporations (2SR).
- Status:
  - "Data are currently compiled but not yet transmitted to the EAC Secretariat."
  - Submission to the EAC will be done after a formal request from the EAC Secretariat.
- Reviewed EAC Secretariat form to identify intra/EAC positions needed for compiling union-wide monetary data.

### Reporting to the IMF and publication
- Discussed compilation and reporting of:
  - Expanded SRF-2SR (including SACCOs).
  - SRF-4SR for OFCs.
  - 5SR for monetary aggregates.
  - 6SR for interest rates.
- Recommendation: Bank of Uganda (BOU) should report the expanded SRF-2SR and the SRF-4SR to STA for publication in the IMF’s International Financial Statistics (IFS).

### Benchmarks and action plan (selected benchmarks and dates)
- Benchmarks:
  - Submit to the IMF data using the 4SR for the NSSF, UDB, foreign exchange bureaus, and NDTMFIs (by June 30, 2016).
  - Submit to the IMF data using the 4SR for insurance companies, private pension schemes, and investment funds (by December 31, 2016).
  - Compile a record of intra-EAC positions for the central bank and ODCs (by June 30, 2016).
- BOU consent: "The BOU gave its consent to the distribution of the report to IMF staff and Executive Directors."
- Project objective: "Expand the institutional coverage of monetary statistics for the ODCs and develop practices for compiling data for the OFC sector in accordance with the MFSM."
- Verifiable indicator: "Monetary statistics for ODCs expanded and data for OFCs are compiled based on the MFSM."

### Key output completion targets (selected)
- Compile SRF-2SR for SACCOs beginning with December 2014 data — Completion target: 06/30/2016.
- Compile SRF-4SR for NSSF, UDB, FOREX bureaus, and NDTMFIs beginning with December 2014 data — Completion target: 06/30/2016.
- Compile SRF-4SR for insurance companies, private pension schemes, and investment funds beginning with December 2014 data — Completion target: 06/30/2016 (mapping reviewed) and formal submission target: 12/31/2016.
- Submit expanded SRF-2SR, including SACCOs beginning with June 2014 data, to STA for publication in IFS — Completion target: 06/30/2016.
- Submit SRF-4SR for NSSF, UDB, FOREX bureaus, and NDTMFIs to STA — Completion target: 06/30/2016 (benchmark action).
- Submit SRF-4SR for insurance companies, private pension schemes, and investment funds to STA — Completion target: 12/31/2016 (benchmark action).
- Compile intra-EAC positions from BOU and ODCs and adopt the form developed with mission assistance — Completion target: 06/30/2016 (benchmark action).
- Develop a work plan for collecting intra-EAC data from OFCs — Completion target: 12/31/2016.
- Report data for BOU and ODCs to the EAC Secretariat specifying intra-EAC positions — Completion target: 12/31/2016 (data submission contingent on formal EAC request).
- Review and expand data and metadata on interest rates reported in 6SR, including regular reporting of the all-share index; submit expanded 6SR by April 30, 2016 and monthly thereafter with a lag of one month — Completion target listed as 30/06/2016 in the framework; operational target: April 30, 2016 for submission of expanded 6SR.
- Review data and metadata on monetary aggregates reported in report form 5SR and transmit revised 5SR beginning April 30, 2016 — Completion target: 06/30/2016.
- Stop reporting M2A in the 5SR where no certificates of deposit are issued; report revised monetary aggregates to STA — Completion target: 06/30/2016.
- Periodic review of central bank balance sheet to minimize monthly ad-hoc mapping of new accounts — Completion target: 6/30/2016.
- Fill two existing vacancies in the OFC unit of the SD — Completion target: 6/30/2016.
- Adopt mission-suggested improvements in presentation of data and metadata in the Statistical Abstract — Completion target: 12/31/2016.
- Update data and metadata posted on the DSBB and strengthen inter-institutional coordinating mechanism — Completion target: 6/30/2016.

### Implementation status snapshots (reported)
- BOU already compiles data for SACCOs in the 2SR format; efforts to improve timeliness underway.
- Source data reviewed and mapping procedures verified for the NSSF, UDB, FOREX bureaus, and NDTMFIs.
- Source data and mapping procedures reviewed for insurance companies and private pension schemes; background data for investment funds reviewed and draft report form for investment funds developed.
- BOU prepared to begin regular reporting of the expanded 2SR by June 30, 2016.
- BOU made arrangements with OFCs for reporting on the 4SR format.
- BOU started collecting intra-EAC positions; data for ODCs compiled and data for the BOU to be compiled by June 30, 2016 but submitted only after formal request from the EAC Secretariat.
- Expanded 6SR (including an all-share index) to be submitted to the IMF by April 30, 2016; data to be submitted monthly with a lag of one month.
- Revised form 5SR to be transmitted to the IMF on a regular basis beginning April 30, 2016.

*Executive Summary from IMF STA MFS mission report to the Bank of Uganda (April 4–15, 2016).*

### Mission scope, prior recommendations, and sector statistics
- Work covered:
  - Reviewing institutional coverage.
  - Developing new expanded reporting forms.
  - Reviewing and mapping source data for SACCOs and OFCs to SRFs 2SR and 4SR.
  - Meetings with regulatory authorities for insurance corporations and pension funds.
- Implementation of previous STA missions:
  - Enhanced Data Dissemination Initiative missions during February 28–March 11, 2011, and March 26–April 6, 2012 assisted in developing MFS following MFSM recommendations.
  - Outcomes: SRFs 1SR and 2SR regularly reported with data back to 2001; SRF 2SR reflects the new reporting system.
  - Third MFS mission (January 2015) proposed expanding SRF-2SR coverage and initiating SRF-4SR for OFC sector; related benchmark actions largely in progress.
- Size and composition of Uganda’s financial sector (key statistics as of end-June 2015):
  - Financial sector assets equal to 60.3 percent of GDP.
  - BOU total assets equivalent to 19.2 percent of GDP.
  - Depository corporation assets equaled 30 percent of GDP.
  - OFC sector holds assets equivalent to 10.4 percent of GDP, of which:
    - Insurance corporations and pension funds accounted for 9.4 percent (the NSSF accounted for 7.5 percent).
    - Other financial intermediaries accounted for 1 percent.
- Table 1 sector breakdown (excerpt; values preserved as presented):
  - BOU — 19.18% | 31.82% | 100.00% | 14,304
  - ODCs — 30.74% | 51.00% | 100.00% | 22,923
  - Commercial Banks — 29.07% | 48.22% | 94.55% | 21,673
  - Credit Institutions — 0.49% | 0.81% | 1.59% | 365
  - MDIs — 0.48% | 0.80% | 1.57% | 360
  - SACCOs — 0.70% | 1.17% | 2.29% | 525
  - OFCs — 10.35% | 17.17% | 100.00% | 7,719
  - NSSF — 7.51% | 12.46% | 72.55% | 5,600
  - FOREX — 0.11% | 0.19% | 1.10% | 85
  - NDTMFIs — 0.46% | 0.77% | 4.46% | 344
  - UDB — 0.23% | 0.38% | 2.20% | 170
  - Investment Funds — 0.01% | 0.01% | 0.06% | 5
  - Insurance — 1.23% | 2.04% | 11.85% | 915
  - Pension — 0.80% | 1.33% | 7.77% | 600
  - Total — 60.28% | 100.00% | N/A | 44,946

### Bank of Uganda — findings and recommendations
- Legal/organizational:
  - Monetary statistics compiled and disseminated by BOU’s Statistics Department (SD) under the Bank of Uganda Act, 2000.
  - SD’s Monetary Statistics and Data Dissemination Division (MSDDD) responsibilities include research, data collection, verification, processing, compilation of MFS, and dissemination.
- Central bank balance sheet:
  - Mission generally satisfied; small issues identified and changes introduced.
  - Specifics:
    - 2013-M4 system change for compiling BOU balance sheet introduced fluctuations but improved data quality.
    - Suggested populating memorandum items section.
    - Recommendation: MSDDD should periodically review the central bank balance sheet and minimize need for monthly ad-hoc mapping of new accounts.

### Other Depository Corporations (ODCs) — findings and recommendations
- ODC sector (end-2014): 25 commercial banks, 4 credit institutions, 4 MDIs, and about 3,000 SACCOs; SRF-2SR covers all except SACCOs initially.
- Commercial banks, credit institutions, MDIs: balance sheets reviewed; no mapping/data quality issues; recommendation to attempt populating memorandum items.
- SACCOs:
  - Activities: Provide small loans to households; 80 percent of lending for small agricultural investments, personal use, and homebuilding.
  - Funding: Deposits from households and owners’ funds.
  - Communication/regulation: Facilitated by Uganda Cooperative Savings and Credit Union; government developing regulatory regime for larger SACCOs; deposit insurance to be considered.
  - Data collection:
    - BOU collects from about 176 SACCOs (71 percent of the sector); data extrapolated to provide representative accounts.
    - EAC agreement: report based on representative sample of at least 70 percent of deposits included in broad money of the subsector.
  - Concerns and recommendations:
    - Data collected only twice a year causing long lags; BOU should investigate resources to fund SACCO survey so timeliness matches periodicity (quarterly).
    - Interim: carry forward most recent survey data and revise when final data received.
    - MSDDD should disseminate revised 2SR including SACCOs immediately and increase collection frequency to quarterly.
    - Annual attempt to estimate subsector size to adjust extrapolation coefficient.

### Collection and compilation for Other Financial Corporations (OFCs)
- OFC sector composition:
  - NSSF, 130 private pension funds, 29 insurance companies and 1 reinsurance company, 246 FOREX bureaus, over 180 NDTMFIs, UDB, and 4 investment funds.
- 4SR publication timetable:
  - 4SR available for publication by June 30, 2016, containing: NSSF, FOREX bureaus, NDTMFIs, UDB.
  - Comprehensive 4SR available for publication by December 31, 2016, adding: Investment funds, Insurance companies, Private pension funds.

### OFC subsector findings and recommendations (selected)
- National Social Security Fund (NSSF):
  - Accounts for 85 percent to 90 percent of total assets in OFC sector.
  - Data available from 2011-M12 with a lag of one month; generally good quality.
  - Recommendations:
    - Report fixed assets on gross basis; move accumulated depreciation to liabilities-side account.
    - Reclassify general provisions as other accounts payable where applicable.
    - Request breakdown of ‘provisions for bad debts’ between normal accounting provisions and reserves for a legal dispute.
    - Include NSSF data in 4SR and submit to IMF by June 30, 2016 (given confidentiality considerations, include after NSSF plus UDB, FOREX, NDTMFIs data are included).
- Private Pension Funds:
  - 131 pension funds; total assets account for 680 billion U Sh.
  - Regulated by URBRA (established in 2014).
  - Reporting issues (April 2016): only 2 of 54 surveyed institutions had submitted year-end returns for 2015.
  - Recommendations:
    - BOU to work with URBRA to establish electronic directory and encourage electronic reporting.
    - Separate reporting of pension funds from parent company reports.
    - Use quarterly returns on investment and membership to populate majority of the form; estimate remaining accounts based on BOU pension fund (which constitutes 39 percent of the sector).
    - MSDDD include private pension funds in 4SR and report to IMF by December 31, 2016.
- Insurance Companies:
  - 29 companies: 8 life and 21 non-life.
  - IRA to send Call Report Form to all insurance companies before end-April 2016; BOU to provide training by July 2016; regular quarterly reporting envisaged for 2016-M6.
  - Recommendations:
    - Compile workable short-term estimates for sectoral breakdown of technical reserves; coordinate IRA and URBRA to avoid double counting of pension business.
    - MSDDD include insurance companies in 4SR and report to IMF by December 31, 2016.
- Non-Deposit Taking Microfinance Institutions (NDTMFIs):
  - Over 180 NDTMFIs; loan sizes range from U Sh80,000–100,000,000 with an average of U Sh3,500,000.
  - Data currently produced quarterly; some provide monthly to parent organizations; reported twice annually due to BOU capacity constraints; produced with a 30-45 day lag.
  - Observed practices: largest NDTMFI uses accrual accounting; several use cash basis.
  - Recommendations:
    - BOU to increase capacity for regular quarterly reporting.
    - Support larger institutions to move to accrual accounting.
    - Identify breakdown of ‘other borrowings’ (likely small loans by commercial banks to NDTMFIs).
    - MSDDD include NDTMFIs in 4SR and report to IMF by June 30, 2016.
- Investment Funds and Unit Trusts:
  - Four funds with total assets of U Sh5 billion.
  - Recommendation: BOU and Capital Markets Authority (CMA) establish common reporting framework; short-term small report form; include in 4SR and report to IMF by December 31, 2016.
- Uganda Development Bank (UDB):
  - Total assets of U Sh150 billion.
  - UDB to report quarterly three weeks after reference period; historical data from 2012M-12.
  - MSDDD should include UDB in 4SR and report to IMF by June 30, 2016.
- FOREX bureaus:
  - 246 bureaus with assets around U Sh100 billion; simple balance sheets (17 accounts); data collected quarterly with short lag.
  - MSDDD should include FOREX bureaus in 4SR and report to IMF by June 30, 2016.

### Monetary aggregates, interest rates, and stock exchange data
- Monetary aggregates:
  - BOU compiles M1, M2, and M3 in line with EAC-level definitions.
  - Recommendation: revise and update data and metadata on monetary aggregates in 5SR; stop reporting M2A in 5SR where no certificates of deposit are issued.
- Interest rates — recommended expansions (all currently compiled by BOU and published in Statistical Abstract):
  - Breakdowns of rates on time deposits by maturity.
  - Inclusion of demand deposit rates.
  - Inclusion of the overnight interbank rate.
  - Inclusion of foreign currency rates.
  - Breakdown of lending rates by sector.
  - Revision of rates on T-bills to report annualized yield instead of rediscount rate.
  - Change representative T-bill rate from 91 days to 364 days.
  - Inclusion of government bond yields and publication of a representative rate in IFS.
  - Recommendation: SD should review and expand interest rate data and metadata reported in 6SR, including regular reporting of the all-share index.
- Stock exchange index:
  - Uganda Securities Exchange (USE) founded June 1997; opened January 1998; currently trades 13 listed local and East African companies.
  - Recommendation: include an all-share index in regular reporting of form 6SR; mission obtained historical data from USE’s inception.

### Intra-EAC positions and regional compilation tools
- Deliverables:
  - Reviewed BOU intra-EAC data; provided bridge table to produce representative balance sheet under EAC residency criterion; provided tool to create EAC-residency criterion sectoral balance sheets from draft EAC reporting form.
- Identified issues:
  - No option for central bank to hold claims on another resident central bank on 1SR.
  - Inability to classify EAC-wide institutions under existing report form.
  - Need for simpler time series format.
  - Progress hampered by lack of centralized coordination from EAC Secretariat and proliferation of partner-state report forms.
- Recommendations:
  - MSDDD link monthly receipt of intra-EAC data to provided files to compile under both national and EAC residency criteria.
  - MSDDD report data to EAC Secretariat in the format provided and develop work plan for collecting intra-EAC data from OFCs.

### Data reporting to the IMF — timelines and tools
- BOU current SRF reporting: SRF-1SR, SRF-2SR, SRF-5SR, SRF-6SR, and exchange rates to IFS monthly.
- Tools: Spreadsheets link SRFs 2SR and 4SR to SACCO and OFC source data via bridge tables for compiling and reporting expanded SRF-2SR and SRF-4SR to STA.
- Agreed reporting timelines:
  - Submit expanded SRF-2SR to IMF by June 30, 2016.
  - Submit SRF-4SR containing NSSF, UDB, and FOREX bureaus by June 30, 2016.
  - Submit comprehensive SRF-4SR including private pension schemes, insurance companies, and investment funds by December 31, 2016.
  - Start reporting revised monetary aggregates and expanded interest rates, including stock exchange index, in SRFs 5SR and 6SR by June 30, 2016.
- Mission recommendations for MSDDD submissions:
  - (a) Expanded SRF-2SR including SACCOs and SRF-4SR for NSSF, NDTMFIs, and FOREX bureaus by end-June 2016 to STA for IFS publication; expanded SRF-2SR should cover commercial banks, credit institutions, MDIs, and SACCOs beginning with June 2014 data.
  - (b) SRF-4SR for the OFC sector as a whole beginning with June 2014 should be submitted to STA by end-December 2016.

### Data dissemination, Statistical Abstract, and GDDS/SDDS matters
- BOU Statistical Abstract:
  - Published annually by Research and Policy Directorate; contains MFS data and metadata.
  - Recommendations to improve: enhance metadata descriptions, specify stock vs flow per table, expand acronym list, provide contact information.
  - MSDDD should adopt suggested improvements in presentation of data and metadata.
- GDDS/DSBB:
  - Uganda joined GDDS in May 2000; latest data posted on NSDP dated 2010–11 (real), 2009–10 (fiscal), 2009–11 (financial and external).
  - NSDP links not operational.
  - Recommendation: update data and metadata on DSBB and strengthen inter-institutional coordinating mechanism.
- SDDS compliance:
  - BOU compiles required SDDS financial sector categories and disseminates with prescribed coverage, periodicity, and timeliness on national website (not on DSBB).
  - Dissemination periodicity and timeliness (as expressed in the source):
    - Depository Corporations Survey (monthly, 1 month): Foreign assets and foreign liabilities; Claims on government (net); Claims on other sectors; Broad money; Other items (net).
    - Central Bank Survey (monthly, 2 weeks): Foreign assets and foreign liabilities; Claims on government (net); Claims on other sectors; Monetary base; Other items (net).
    - Interest rates (daily, 1 day): Short- and long-term government securities rate; Policy oriented rate; Stock price index (daily, 1 day).
  - Advance release calendar:
    - BOU has internal advance release calendar on its webpage but not on DSBB; announces one advanced observation while SDDS Advanced Release Calendar requires disclosure for current and the following three months.
  - Dissemination practices: simultaneous release to all; no prior access by government officials; data released without official commentaries.
  - Metadata and quality: comprehensive metadata provided; revisions policy posted on BOU website but not on DSBB.
  - For MFS, BOU already disseminates methodology, statistical cross-checks, and documents deviations from international methodologies.

### Staffing, training, and authorities’ requests
- Staffing (as of April 2016):
  - MFS section has five staff assigned to MFS-related work; all participated in STA training courses.
  - Head of MFS worked closely with mission.
  - BOU staff able to use mission spreadsheets and mappings to compile OFC statistics without further technical support.
  - Mission assessment: BOU has adequate capacity, but recommended filling two vacancies in OFC unit given expanded mandate.
- Training/seminars delivered:
  - Half-day training for ODC staff on MFSM methodology, sectorization, classification, valuation, accounting conventions, and uses of data.
  - Seminar on regional and currency union statistics for SD staff covering currency union tasks, statistical infrastructure, and convergence criteria.
  - Seminar on balance sheet approach (BSA) presented to Research and Policy Directorate staff covering SRF importance, BSA matrix compilation, and uses to assess debt vulnerabilities.
- Authorities’ requests for further collaboration:
  - (i) Assess procedures for collecting, compiling, and transmitting comprehensive OFC data by end-December 2016.
  - (ii) Assist in developing analytical tools such as balance sheet matrix to assess debt vulnerabilities.
  - (iii) Support compilation of statistics in context of EAC-wide currency union at national and regional levels.

### Appendices and implementation status (high-level)
- Appendix I: list of officials met (BOU, IRA, URBRA, SACCO Association, NSSF, Letshego, UDB, ICEA).
- Appendix II: status of prior recommendations with objectives (e.g., adoption of MFSM methodologies, Integrated Monetary Database operationalization) and verifiable indicators with completion dates.
  - Examples of completed/ongoing items:
    - SRF 1SR for central bank completed and used for IMF reporting (06/30/2008).
    - Central bank survey established (06/30/2011).
    - SRF 2SR for ODCs completed and regularly produced (historical data 09/30/2008; new system 02/28/2010).
    - DCS expanded to incorporate SACCOs with quarterly data collection for sample of 176 SACCOs initiated using Call Report Form 2SR; submission to IMF by June 30, 2016.
    - SRF 4SR-based data for NSSF, UDB, NDTMFIs, and FOREX bureaus to be submitted by June 30, 2016; insurance, private pension funds, and investment funds by December 30, 2016.
    - IMD operational and updated regularly (completion date 12/31/2011).
  - Priority Scale: H - High, M - Medium; Achievement Scale: 4 - Fully Achieved, 3 - Largely Achieved, 2 - Partially Achieved.

*Executive Summary from IMF STA MFS mission report to the Bank of Uganda (April 4–15, 2016).*

### Executive Summary ......................................................................................................

### Executive Summary

### Mission and objectives
- A monetary and financial statistics (MFS) mission from the IMF’s Statistics Department (STA) visited Kampala during April 4–15, 2016.
- Mission team: Mr. Edgar Ayales, MFS expert, and Mr. Cormac Sullivan, Information Management Assistant in the STA’s Statistical Information Management Division.
- Context: Japan Administered Account for Selected IMF Activities: Project for the Financing of Technical Assistance Activities Supporting Preparations for Monetary Union in the Monetary Policy and Statistical Areas in the East African Community (EAC).
- Main objectives:
  - Compile the sectoral balance sheet of other financial corporations (OFCs) using the IMF’s Standardized Report Form (SRF-4SR).
  - Expand coverage of other depository corporations (ODCs) in the SRF-2SR to include savings and credit cooperatives (SACCOs).
  - Follow up on progress in compiling intra-EAC positions.
  - Review MFS data currently submitted to STA (including interest rates and monetary aggregates).

### Source data review, mappings, and compilation work
- The mission reviewed mappings of source data to SRF-2SR and SRF-4SR for:
  - SACCOs, insurance companies, National Social Security Fund (NSSF), private pension schemes, non-deposit taking microfinance institutions (NDTMFIs), Uganda Development Bank (UDB), foreign exchange (FOREX) bureaus, and investment funds.
- Findings on source data sufficiency and agreement:
  - "The source data were generally sufficient for mapping, once various clarifications were provided in bilateral meetings with the Uganda Retirement Benefits Regulatory Authority (URBRA), the Insurance Regulatory Authority, the umbrella institution for SACCOs, and the UDB."
  - The mappings were agreed with the regulatory authority for each subsector and staff of the Bank of Uganda’s Statistics Department (SD).
- Recommendations highlighted:
  - Improvements to the coverage of 6SR, including the inclusion of government bond yields and stock exchange data.

### Training, presentations, and capacity building
- At the request of the authorities, the mission provided half-day training to 65 representatives of the ODCs responsible for compilation and submission of 2SR data to the BOU.
- The mission made presentations to staff of the MSDDD and Research and Policy Directorate on:
  - Currency union statistics.
  - Balance sheet analysis to assess debt vulnerabilities.
- Reception: "The training and presentations were well received by the participants."

### Intra-EAC positions and regional reporting
- Reviewed and made recommendations to improve the report form used by the BOU to compile intra-EAC positions for:
  - Central bank (1SR).
  - Other depository corporations (2SR).
- Status of intra-EAC data:
  - "Data are currently compiled but not yet transmitted to the EAC Secretariat."
  - Reviewed the form developed by the EAC Secretariat to be completed by each EAC partner state identifying intra/EAC positions needed for compiling union-wide monetary data.
- Submission condition: "Submission of these data to the EAC will be done after a formal request from the EAC Secretariat."

### Reporting to the IMF and publication
- The mission discussed compilation and reporting of:
  - Expanded SRF-2SR (including SACCOs).
  - SRF-4SR for OFCs.
  - 5SR for monetary aggregates.
  - 6SR for interest rates.
- Recommendation: The Bank of Uganda (BOU) should report the expanded SRF-2SR and the SRF-4SR to STA for publication in the IMF’s International Financial Statistics (IFS).

### Benchmarks and action plan (selected benchmarks and dates)
- Benchmarks selected for evaluating effectiveness of technical assistance:
  - Submit to the IMF data using the 4SR for the NSSF, UDB, foreign exchange bureaus, and NDTMFIs (by June 30, 2016).
  - Submit to the IMF data using the 4SR for insurance companies, private pension schemes, and investment funds (by December 31, 2016).
  - Compile a record of intra-EAC positions for the central bank and ODCs (by June 30, 2016).
- BOU consent: "The BOU gave its consent to the distribution of the report to IMF staff and Executive Directors."

### Project framework: objectives, outputs, and timeline highlights
- Project objective: "Expand the institutional coverage of monetary statistics for the ODCs and develop practices for compiling data for the OFC sector in accordance with the MFSM."
- Verifiable indicators: "Monetary statistics for ODCs expanded and data for OFCs are compiled based on the MFSM."
- Key outputs and completion dates (selected):
  - Compile SRF-2SR for SACCOs beginning with December 2014 data and matching timeliness to periodicity (quarterly) — Completion target: 06/30/2016.
  - Compile SRF-4SR for NSSF, UDB, FOREX bureaus, and NDTMFIs beginning with December 2014 data — Completion target: 06/30/2016.
  - Compile SRF-4SR for insurance companies, private pension schemes, and investment funds beginning with December 2014 data — Completion target: 06/30/2016 (mapping reviewed) and formal submission target: 12/31/2016.
  - Submit expanded SRF-2SR, including SACCOs beginning with June 2014 data, to STA for publication in IFS — Completion target: 06/30/2016.
  - Submit SRF-4SR for NSSF, UDB, FOREX bureaus, and NDTMFIs to STA — Completion target: 06/30/2016 (benchmark action).
  - Submit SRF-4SR for insurance companies, private pension schemes, and investment funds to STA — Completion target: 12/31/2016 (benchmark action).
  - Compile intra-EAC positions from BOU and ODCs and adopt the form developed with mission assistance — Completion target: 06/30/2016 (benchmark action).
  - Develop a work plan for collecting intra-EAC data from OFCs — Completion target: 12/31/2016.
  - Report data for BOU and ODCs to the EAC Secretariat specifying intra-EAC positions — Completion target: 12/31/2016 (data submission contingent on formal EAC request).
  - Review and expand data and metadata on interest rates reported in 6SR, including regular reporting of the all-share index; submit expanded 6SR by April 30, 2016 and monthly thereafter with a lag of one month — Completion target listed as 30/06/2016 in the framework; operational target: April 30, 2016 for submission of expanded 6SR.
  - Review data and metadata on monetary aggregates reported in report form 5SR and transmit revised 5SR beginning April 30, 2016 — Completion target: 06/30/2016.
  - Stop reporting M2A in the 5SR where no certificates of deposit are issued; report revised monetary aggregates to STA — Completion target: 06/30/2016.
  - Periodic review of central bank balance sheet to minimize monthly ad-hoc mapping of new accounts — Completion target: 6/30/2016.
  - Fill two existing vacancies in the OFC unit of the SD to address increased workload — Completion target: 6/30/2016.
  - Adopt mission-suggested improvements in presentation of data and metadata in the Statistical Abstract — Completion target: 12/31/2016.
  - Update data and metadata posted on the DSBB and strengthen inter-institutional coordinating mechanism — Completion target: 6/30/2016.

### Implementation status snapshots (as reported)
- The BOU already compiles data for SACCOs in the 2SR format; efforts are being made to improve timeliness.
- Source data were reviewed and mapping procedures verified for the NSSF, UDB, FOREX bureaus, and NDTMFIs.
- Source data and mapping procedures were reviewed for insurance companies and private pension schemes; background data for investment funds were reviewed and a draft report form for investment funds was developed.
- The BOU is prepared to begin regular reporting of the expanded 2SR by June 30, 2016.
- The BOU has already made arrangements with OFCs for reporting on the 4SR format.
- The BOU already started collecting intra-EAC positions; data for ODCs are compiled and data for the BOU will be compiled by June 30, 2016 but submitted only after a formal request from the EAC Secretariat.
- The expanded 6SR (including an all-share index) will be submitted to the IMF by April 30, 2016; data to be submitted monthly with a lag of one month.
- Revised form 5SR will be transmitted to the IMF on a regular basis beginning April 30, 2016.

*Executive Summary from IMF STA MFS mission report to the Bank of Uganda (April 4–15, 2016).*

### 2.      This report documents the mission’s findings and recommendations, which were

### cr17304 - 2.      This report documents the mission’s findings and recommendations, which were

### Mission scope and interactions
- The report documents the mission’s findings and recommendations, discussed with BOU staff.
- Work covered:
  - Reviewing institutional coverage.
  - Developing new expanded reporting forms.
  - Reviewing and mapping source data for SACCOs and OFCs to the SRFs 2SR and 4SR, respectively.
  - Meetings with regulatory authorities for insurance corporations and pension funds to discuss implementation of the new reporting forms.
- The mission expressed deep appreciation to BOU management and staff for full support and close cooperation; list of officials met is presented in Appendix I.

### Implementation of previous missions’ recommendations
- STA missions to Uganda:
  - Enhanced Data Dissemination Initiative missions during February 28–March 11, 2011, and March 26–April 6, 2012, assisted in developing MFS following MFSM recommendations (Appendix II).
  - Outcomes:
    - Began mapping and reporting source data for the central bank and ODCs to SRFs 1SR and 2SR.
    - SRFs 1SR and 2SR are now regularly reported with data going back to 2001.
    - SRF 2SR reflects the new reporting system developed several years ago.
- Third MFS mission (January 2015) proposed:
  - Expanding coverage of SRF-2SR and initiating compilation and reporting SRF-4SR for OFC sector.
  - Two benchmark actions:
    - Produce and disseminate an expanded depository corporation survey (DCS) including credit institutions and deposit-taking microfinance organizations — this DCS is now being produced.
    - Produce a methodology paper to document data sources and methods for compiling monetary statistics — this paper has been disseminated along with a note on changes in compilation of monetary statistics provided to users.
- Follow-up on benchmarks and timelines:
  - Expand DCS to include SACCOs: data collected as of September 2011 and incorporated into SRF-2SR. Expanded 2SR to be submitted to IMF by June 30, 2016.
  - Compile SRF-4SR for OFCs: BOU to submit OFC data using 4SRF format in two stages:
    - (i) NSSF, Uganda Development Bank (UDB), FOREX bureaus and non-deposit taking microfinance corporations (NDTMFIs) reported by June 30, 2016.
    - (ii) Rest of OFC sector (insurance companies, private pension schemes, and investment funds) to be submitted by December 31, 2016.
- Currency union (EAC) related review:
  - Reviewed report form BOU will use to compile intra-EAC positions for BOU and ODCs.
  - Reviewed report form EAC Secretariat will use to collect data from member countries for consolidated monetary aggregates.
  - Data are being collected but have not yet been submitted to the EAC Secretariat.

### Size and composition of Uganda’s financial sector (key statistics as of end-June 2015)
- Financial sector assets equal to 60.3 percent of GDP.
- BOU total assets equivalent to 19.2 percent of GDP.
- Depository corporation assets equaled 30 percent of GDP.
- OFC sector holds assets equivalent to 10.4 percent of GDP, of which:
  - Insurance corporations and pension funds accounted for 9.4 percent (the NSSF accounted for 7.5 percent).
  - Other financial intermediaries accounted for 1 percent.
- Table 1 excerpted sector breakdown (columns: Subsector / Institutions | % of GDP | % of Financial System | % of Subsector | Total Assets (U G Bn)):
  - BOU — 19.18% | 31.82% | 100.00% | 14,304
  - ODCs — 30.74% | 51.00% | 100.00% | 22,923
  - Commercial Banks — 29.07% | 48.22% | 94.55% | 21,673
  - Credit Institutions — 0.49% | 0.81% | 1.59% | 365
  - MDIs — 0.48% | 0.80% | 1.57% | 360
  - SACCOs — 0.70% | 1.17% | 2.29% | 525
  - OFCs — 10.35% | 17.17% | 100.00% | 7,719
  - NSSF — 7.51% | 12.46% | 72.55% | 5,600
  - FOREX — 0.11% | 0.19% | 1.10% | 85
  - NDTMFIs — 0.46% | 0.77% | 4.46% | 344
  - UDB — 0.23% | 0.38% | 2.20% | 170
  - Investment Funds — 0.01% | 0.01% | 0.06% | 5
  - Insurance — 1.23% | 2.04% | 11.85% | 915
  - Pension — 0.80% | 1.33% | 7.77% | 600
  - Total — 60.28% | 100.00% | N/A | 44,946

### A. Bank of Uganda — findings and recommendations
- Legal and organizational framework:
  - Monetary statistics collected, compiled, and disseminated by BOU’s Statistics Department (SD) under the Bank of Uganda Act, 2000.
  - BOU authorized to request necessary information from commercial banks, credit institutions, MDIs and FOREX bureaus.
  - SD’s Monetary Statistics and Data Dissemination Division (MSDDD) responsible for:
    - Research on statistical methodology, data collection, verification, processing and compilation of MFS.
    - Dissemination of monetary and financial, balance of payments, government debt, and some real sector indices.
    - Maintaining harmonization with international standards and the Official Statistical Program.
- Mission review of central bank balance sheet and procedures:
  - Generally satisfied; small issues identified and changes introduced.
  - Specific observations and recommendations:
    - In 2013-M4, the bank changed its system for compiling the BOU balance sheet, introducing some fluctuations. Mission reviewed and was satisfied these changes improved data quality.
    - Suggested BOU attempt to populate the memorandum items section.
    - Recommendation: MSDDD should periodically review the central bank balance sheet and invest time in determining how to minimize the need for monthly ad-hoc mapping of new accounts.

### B. Other Depository Corporations — findings and recommendations
- ODC sector composition (end-2014):
  - 25 commercial banks, 4 credit institutions, 4 MDIs, and about 3,000 SACCOs.
  - Data compiled and reported on SRF-2SR cover all these institutions with the exception of SACCOs.
- Commercial banks, credit institutions, MDIs:
  - Mission reviewed balance sheets and compilation procedures; no issues with mapping or data quality.
  - Suggested BOU attempt to populate the memorandum items section.

- Savings and credit cooperatives (SACCOs):
  - Activities and financing:
    - Provide small loans to households; 80 percent of lending for small agricultural investments, personal use, and homebuilding.
    - Financed by deposits from households and funds contributed by owners.
  - Communication and regulation:
    - Communication between BOU and SACCOs facilitated by Uganda Cooperative Savings and Credit Union.
    - Government developing a regulatory regime (in consultation with stakeholders including BOU) for at least larger SACCOs; deposit insurance to be considered, perhaps by expanding existing deposit insurance for banks.
  - Data collection and coverage:
    - BOU began regular collection using report forms devised by previous mission; accounts from 2011-M9 created.
    - Mission reviewed mapping, validated collected data, and endorsed inclusion of SACCOs’ data in ODC reporting.
    - BOU collects data from about 176 SACCOs, constituting 71 percent of the sector; these data are extrapolated to provide representative accounts.
    - EAC agreement: each partner state to report data based upon representative sample of at least 70 percent of the deposits included in broad money of the subsector.
  - Mission concerns and recommendations:
    - Concern: data collected only twice a year, causing long lag between submission periods.
    - Recommendation: BOU should investigate increasing resources to fund SACCO survey so timeliness matches periodicity (quarterly).
    - Interim recommendation: carry forward data from most recent survey and revise upon receipt of final data.
    - Recommendation: MSDDD begin disseminating a revised 2SR to include data for SACCOs immediately and increase frequency of data collection so timeliness matches periodicity (quarterly).
    - Mission recommended annual attempt to estimate size of subsector so coefficient representing relative size of reporting institutions can be adjusted; reported data quality high but sampling-size assumption should be regularly verified.

### IV. Collection and compilation of monetary statistics for Other Financial Corporations (OFCs)
- OFC sector composition:
  - NSSF, 130 private pension funds, 29 insurance companies and 1 reinsurance company, 246 FOREX bureaus, over 180 NDTMFIs, UDB, and 4 investment funds.
- 4SR publication timetable determined by mission:
  - 4SR available for publication by June 30, 2016, containing sectors:
    - NSSF
    - FOREX bureaus
    - NDTMFIs
    - UDB
  - Comprehensive 4SR available for publication by December 31, 2016, adding:
    - Investment funds
    - Insurance companies
    - Private pension funds

### A. National Social Security Fund (NSSF)
- Dominance and role:
  - NSSF accounts for 85 percent to 90 percent of total assets in OFC sector.
  - Publicly owned investment company collecting contributions from households.
- Data quality and availability:
  - Data available from 2011-M12 and reported with a lag of one month.
  - Data generally of good quality; 2015 mission finding confirmed.
- Recommendations and adjustments:
  - Align with MSFM recommendations:
    - Report fixed assets on a gross basis and move accumulated depreciation to the liabilities-side account for that purpose.
    - Reclassify general provisions as other accounts payable rather than other provisions where applicable.
    - Request breakdown of ‘provisions for bad debts’ between normal accounting provisions and reserves established to cover an ongoing legal dispute relating to a nonfinancial investment.
  - Mission mapped all accounts, including currently empty accounts, for potential future transactions; mapping provided to authorities.
- Confidentiality and publication:
  - Given NSSF’s size, confidentiality implications considered.
  - 2015 mission recommended waiting until pension fund and insurance companies’ data compiled; however, with UDB, FOREX bureaus, and NDTMFIs data included, mission recommends 4SR be published upon receipt of these sectors’ data (expected by June 30, 2016).
  - Recommendation: MSDDD include NSSF data in the 4SR for OFC sector and submit it to IMF by June 30, 2016.

### B. Private Pension Funds
- Sector size and regulation:
  - Ugandan financial system comprises 131 pension funds.
  - Total assets account for 680 billion Ugandan shilling (U Sh).
  - Sector regulated by Ugandan Retirement Benefits Regulatory Authority (URBRA), established in 2014.
- Reporting and capacity issues (April 2016):
  - Only two of the 54 surveyed institutions had submitted year-end returns for 2015 to the regulator.
  - Issues preventing effective reporting:
    - Limited capacity in smaller institutions.
    - Weak supporting infrastructure (e.g., auditors trained to certify pension funds).
    - Relative infancy of regulator and sector.
  - URBRA data collection:
    - Receives majority of data through filing of paper reports and hard copies of annual financial statements.
- Mission recommendations:
  - BOU to work with URBRA to establish an electronic directory of contacts for each institution and encourage regular electronic reporting.
  - BOU to contact relevant agencies and work with depository corporations and other financial corporations that operate pension funds to separate reporting of pension funds from parent company reports (several entities included pension schemes in parent company reports).
  - URBRA and BOU should coordinate a strategy for using quarterly returns on investment and membership to populate majority of the form on a regular basis; remaining accounts could be estimated based on weight of positions in the BOU pension fund (which constitutes 39 percent of the sector).
  - Emphasized need for a simple report form given limited capacity; pension funds’ balance sheets are relatively straightforward (invest in government securities, fixed deposits with ODCs, shares, and nonfinancial investments; liabilities largely member contributions).
  - Recommendation: MSDDD include private pension funds in the 4SR for OFC sector and report to IMF by December 31, 2016; MSDDD should work with depository corporations and other financial corporations that operate pension funds to separate positions of pension funds from their balance sheets and coordinate with URBRA the estimation of quarterly positions based on quarterly returns on investments and membership information.

### C. Insurance Companies
- Industry composition:
  - 29 companies: 8 life and 21 non-life.
  - Insurance companies became significant in OFC sector after Insurance Act, 2011.
- Mission engagement and outcomes:
  - Met with an insurance company to review balance sheet and reporting challenges.
  - Met with Insurance Regulatory Authority (IRA), which agreed to oversee distribution of the Call Report Form.
  - Agreement reached on a report form usable for statistical compilation without excessive burden on reporters.
  - IRA to send form to all insurance companies before end-April 2016 for completion and return.
  - Follow-up: BOU to provide training for all compilers by July 2016 based on MFSM and tailored to issues encountered; regular reporting of quarterly data envisaged for 2016-M6.
  - Mission provided mappings for both life and non-life insurance companies to the 4SR to facilitate reporting.
- Specific issues and recommendations:
  - IRA noted difficulty obtaining sectoral breakdown for insurance technical reserves as insurers classify policies by class rather than by sector; mission advised compiling a workable estimate short-term and BOU assistance to reporting institutions for medium-term breakdown.
  - Several insurers reported positions of affiliated pension funds due to URBRA’s limited activity and recent legal changes requiring separate reporting; mission recommended pension business be reported to IRA in short term to avoid disruption.
  - IRA and URBRA to coordinate strategy to correct reporting; BOU should monitor reporting to avoid double counting.
  - Recommendation: MSDDD include insurance companies in 4SR for OFC sector and report to IMF by December 31, 2016.

### D. Non-Deposit Taking Microfinance Institutions (NDTMFIs)
- Role and loan characteristics:
  - Provide loans primarily to households.
  - Loan sizes vary from U Sh80,000–100,000,000 with an average of U Sh3,500,000.
  - Loans used for education, healthcare, and routine investments.
- Market structure and engagement:
  - Over 180 NDTMFIs operating in Uganda; industry dominated by a small number of large institutions.
  - Mission met with CEO of largest NDTMFI (representing roughly 25 percent of subsector assets) to clarify industry nature and perceived advantages and costs of reporting MFS data to BOU.

*IMF mission report: findings and recommendations as presented to Bank of Uganda staff*

### 42.      Data are currently produced on a quarterly basis. However, some NDTMFIs provide

### cr17304 - 42.      Data are currently produced on a quarterly basis. However, some NDTMFIs provide 

### Non-Deposit Taking Microfinance Institutions (NDTMFIs) — reporting and accounting
- Data are currently produced on a quarterly basis; some NDTMFIs provide data on a monthly basis to report to their parent organization.
- Data are reported twice annually, covering two quarters per submission due to capacity issues at the BOU.
- Data are produced with a 30-45 day lag from the end of the (later) reference period.
- Observed reporting practices:
  - The largest NDTMFI follows accrual accounting.
  - Several institutions record transactions on a cash basis, creating comparability problems.
- Recommendation:
  - BOU should invest time in increasing capacity to undertake regular quarterly reporting.
  - BOU should provide support for larger institutions in the subsector to move to accrual accounting.
  - BOU should work to identify and provide a breakdown of the category ‘other borrowings’ (believed to represent many small loans by commercial banks to NDTMFIs); this account has been classified under loans from ODCs pending clarification.
  - MSDDD should include data for NDTMFIs in the 4SR for the OFC sector and report it to the IMF by June 30, 2016.

### Staffing recommendation for OFC/SD
- Given the increased workload in the SD, the mission recommended that the BOU proceed to fill the two existing vacancies in the OFC unit.

### Investment Funds and Unit Trusts
- Background:
  - In 2004, the Ugandan government permitted establishment of investment funds and unit trusts (money market funds).
  - Currently, there are four funds in operation with total assets of U Sh5 billion.
  - The sector includes small money market funds.
- Outlook:
  - Continuing financial liberalization and regional integration with the EAC may expand the size and balance sheets of investment funds in the medium term.
- Methodology note:
  - MFS methodology requires separate reporting of money-market funds, as these institutions are contributors to broad money as part of the ODCs sector.
- Recommendations:
  - BOU and Uganda’s Capital Markets Authority (CMA) should work together to establish a common reporting framework for these institutions.
  - In the short term, obtain a small report form from these funds containing relevant accounts.
  - BOU and CMA should support separate reporting of the financial position of money market and non-money market funds.
  - SD of the BOU and CMA should work together to develop a report form for the four existing institutions.
  - Data for investment funds should be included in a 4SR for the OFC sector and reported to the IMF by December 31, 2016.

### Uganda Development Bank (UDB)
- UDB holds total assets of U Sh150 billion.
- Reporting arrangements agreed:
  - UDB to report quarterly data three weeks after the reference period.
  - Historical data to begin in 2012M-12 (no earlier data available due to major restructuring).
  - A provisional report based on the UDB’s statement of financial position and additional schedules was designed to provide sectoral loan breakdowns for SRF compilation.
  - A finalized report form and a mapping file for regular inclusion in the 4SR were agreed and provided to authorities.
- Quality assessment:
  - Mission reviewed prior year’s data and was satisfied data quality is sufficient for inclusion in the 4SR.
- Recommendation:
  - MSDDD should include data for the UDB in the 4SR for the OFC sector and report it to the IMF by June 30, 2016.

### Foreign Exchange (FOREX) Bureaus
- Sector size and structure:
  - The Ugandan economy has 246 FOREX bureaus with assets of around U Sh100 billion.
  - Balance sheets are very simple (17 accounts).
  - These institutions provide auxiliary financial services, small financing to clients, and act as savings vehicles for owners — thus engage in financial intermediation and should be part of the OFC sector.
- Data issues:
  - Reported data comprised one account for all prepayments on the asset side and all payables on the liabilities side.
  - Mission assumed prepaid insurance to the NSSF was the major source of prepayments; other payables presumed to be predominantly to private businesses for services — BOU should verify.
- Data availability:
  - Data on FOREX bureaus are collected quarterly and available with only a short lag as the sector is regulated by the BOU.
  - A mapping file for regular inclusion in the 4SR was created and provided to authorities.
- Recommendation:
  - MSDDD should include data for FOREX bureaus in the 4SR for the OFC sector and report it to the IMF by June 30, 2016.

### Monetary Aggregates
- Mission assessment:
  - BOU’s procedures for compilation of monetary aggregates were judged to be very good.
  - BOU compiles M1, M2, and M3 in line with definitions agreed at the EAC level.
- Recommendation:
  - Revise and update data and metadata on monetary aggregates reported in report form 5SR.
  - MSDDD should stop reporting M2A in the 5SR, as no institutions issue certificates of deposit and therefore there is no difference with M2.

### Interest Rates
- Mission recommended expanding interest rate data to support IMF African Department surveillance; the following expansions (all currently compiled by the BOU and published in their Statistical Abstract) were specified:
  - Breakdowns of rates on time deposits by maturity.
  - Inclusion of demand deposit rates.
  - Inclusion of the overnight interbank rate.
  - Inclusion of foreign currency rates.
  - Breakdown of lending rates by sector.
  - Revision of rates on T-bills such that annualized yield is reported instead of the rediscount rate.
  - Change representative T-bill rate from 91 days to 364 days as the country issues 15 times as many bills in the latter category.
  - Inclusion of government bond yields, including publication of a representative rate in IFS.
- Recommendation:
  - SD should review and expand the data and metadata on interest rates reported in 6SR, including regular reporting of the all-share index, and adopt streamlined procedures to ensure timely updates.

### Stock Exchange Index
- Uganda Securities Exchange (USE) facts:
  - USE founded in June 1997; opened to trading in January 1998.
  - Initially had one listing (a bond by the East African Development Bank).
  - Currently trades 13 listed local and East African companies.
  - USE is a member of the African Securities Exchanges Association and cooperates with Dar es Salaam Stock Exchange, Rwanda Stock Exchange, and Nairobi Securities Exchange; plans exist to integrate the four exchanges into a single East African bourse.
- Recommendation:
  - An all-share index should be included in regular reporting of form 6SR.
  - Mission obtained historical data from USE’s inception.
  - SD should establish regular reporting of the all-share index in report form 6SR.

### Intra-EAC Positions
- Context:
  - Uganda is a partner state of the EAC and signed the 2013 Protocol toward establishment of the EAC monetary union; committed to harmonizing MFS with EAC members.
- Mission deliverables:
  - Reviewed BOU data on positions within the EAC.
  - Provided a bridge table to produce a representative balance sheet under the EAC residency criterion.
  - Provided a tool to create EAC-residency criterion sectoral balance sheets from the draft EAC reporting form.
- Identified issues:
  - Lack of an option for a central bank to hold claims on another resident central bank on the 1SR.
  - Lack of ability to classify EAC-wide institutions (EAC Development Bank and future EAC Central Bank) under existing report form.
  - Importance of arranging data into a simpler time series format.
  - Progress with EAC agenda hampered by lack of centralized coordination from the EAC Secretariat and proliferation of report forms from partner states.
- Recommendation:
  - MSDDD should (i) link monthly receipt of data on intra-EAC positions to the provided files to allow compilation under both national and EAC-wide residency criteria, and (ii) report data to the EAC Secretariat in the format they provide.
  - MSDDD should develop a work plan for collecting intra-EAC data from OFCs.

### Data Reporting to the IMF
- Current SRF reporting by BOU:
  - BOU reports SRF-1SR (central bank), SRF-2SR (ODCs), SRF-5SR (monetary aggregates), SRF-6SR (interest rates), and exchange rates for IFS on a monthly basis.
- Tools:
  - Spreadsheets electronically link SRFs 2SR and 4SR to SACCO and OFC source data via bridge tables.
  - This tool can be used to compile and report expanded SRF-2SR (including SACCOs) and SRF-4SR for OFCs to STA for publication in IFS.
- Reporting timelines agreed:
  - BOU compilers should be able to submit the expanded SRF-2SR to the IMF by June 30, 2016 and a SRF-4SR containing data for the NSSF, UDB and FOREX bureaus by June 30, 2016.
  - A comprehensive SRF-4SR including remaining OFCs (private pension schemes, insurance companies, and investment funds) will be submitted to the IMF by December 31, 2016.
  - BOU will start reporting revised monetary aggregates and expanded interest rates, including a stock exchange index, in SRFs 5SR and 6SR by June 30, 2016.
- Mission recommendations for MSDDD submissions:
  a. The expanded SRF-2SR including SACCOs and the SRF 4SR for the NSSF, NDTMFIs, and FOREX bureaus by end-June 2016 to STA for publication in the IFS. The expanded SRF-2SR should cover commercial banks, credit institutions, MDIs, and SACCOs beginning with June 2014 data; and  
  b. The SRF-4SR for the OFC sector as a whole including the NSSF, other pension funds, insurance corporations, NDTMFIs, and FOREX bureaus beginning with June 2014 should be submitted to STA by end-December 2016.

### Data Dissemination, BOU Statistical Abstract, and GDDS/SDDS compliance
- BOU Statistical Abstract:
  - Published annually by BOU’s Research and Policy Directorate; contains data and metadata on MFS (depository corporations, interest rates, financial indicators), external sector statistics, and government debt statistics.
  - Data in the Statistical Abstract are consistent with BOU website dissemination.
  - Areas for improvement:
    - Enhance metadata by adding descriptions of institutional units and financial transactions (e.g., MDIs, credit institutions, financial cards).
    - Explain difference between stock and flow data for datasets; each table should specify type of data.
    - Make list of acronyms comprehensive.
    - Provide contact information for each dataset.
  - Recommendation:
    - MSDDD should adopt suggested improvements in presentation of data and metadata in the Statistical Abstract.
- Uganda’s participation in GDDS:
  - Uganda joined GDDS in May 2000.
  - Latest data posted on NSDP refer to 2010–11 (real sector), 2009–10 (fiscal sector), and 2009–11 (financial and external sectors).
  - Metadata for data compiled by BOU was updated a little over a year ago; other sectors’ metadata not updated since first posted.
  - Links in Uganda’s NSDP are not operational.
  - Recommendation:
    - Update data and metadata posted on DSBB and strengthen inter-institutional coordinating mechanism to ensure regular updates.
- SDDS compliance review:
  - BOU compiles all data categories and components required by the SDDS for the financial sector; disseminated with prescribed coverage, periodicity, and timeliness on a readily accessible page on the national website (not on the DSBB).
  - Dissemination periodicity and timeliness (as expressed in the source):
    - Depository Corporations Survey (monthly, 1 month): Foreign assets and foreign liabilities; Claims on government (net); Claims on other sectors; Broad money; Other items (net).
    - Central Bank Survey (monthly, 2 weeks): Foreign assets and foreign liabilities; Claims on government (net); Claims on other sectors; Monetary base; Other items (net).
    - Interest rates (daily, 1 day): Short- and long-term government securities rate; Policy oriented rate; Stock price index (daily, 1 day).
  - Advance release calendar:
    - BOU has an internal advance release calendar disseminated on the BOU webpage but not on the DSBB.
    - The BOU calendar announces the release of one advanced observation, while the SDDS Advanced Release Calendar requires disclosure of data for the current and the following three months.
  - Dissemination practices:
    - BOU’s financial data are released to all interested parties simultaneously; no prior access by government officials; data disseminated without official commentaries.
  - Metadata and quality:
    - BOU provides comprehensive metadata for each prescribed category on the BOU website and the DSBB.
    - SD certifies quality of metadata annually and updates metadata regularly when changes occur.
    - BOU follows a revisions policy posted on the BOU website but not on the DSBB.
  - For MFS, BOU already:
    - Disseminates comprehensive documentation on methodology and sources.
    - Provides statistical cross-checks and assurances of reasonableness.
    - Documents and disseminates deviations from internationally accepted methodologies on its website and on the DSBB.
  - Note:
    - Overall readiness to become an SDDS subscriber also depends on readiness of data for other macroeconomic sectors.

*Source: cr17304 - 42.      Data are currently produced on a quarterly basis. However, some NDTMFIs provide*

### 89.      The MSDDD is responsible for compiling monetary statistics and the dissemination

### The MSDDD is responsible for compiling monetary statistics and the dissemination

### Staffing and capacity
- As of April 2016, the MFS section has five staff who are assigned to work on MFS and other MFS-related work; all have participated in training courses on monetary statistics conducted by STA.
- The head of the MFS section worked closely with the mission.
- BOU staff are able to use the spreadsheets and data mappings produced by the mission to compile monetary statistics for OFCs without further technical support.
- The mission’s assessment: BOU already has adequate capacity.
- Resource recommendation: given the expanded mandate to compile comprehensive data for the OFC sector and intra-EAC positions from depository corporations, resources should be strengthened, at least by filling the two existing vacancies in the OFC unit.

### Training and seminars delivered
- Training seminar for staff of the ODCs:
  - The mission provided a half-day training seminar to depository corporations’ staff in charge of completing the report forms to submit data to the BOU for the compilation of MFS.
  - Lectures focused on main elements of the methodology recommended in the MFSM, including sectorization of economic sectors, classification of financial assets, and valuation and other accounting conventions.
  - The presentation covered main uses of data (e.g., monetary policy, financial programming, and balance sheet analysis) and the importance of data quality.
  - This presentation was also done during a one-day annual seminar conducted by the BOU for over 60 data compilers from banks and other depository corporations; the presentation was well received.
- Seminar on regional and currency union statistics:
  - Presented to staff of the SD on steps needed to compile region-wide consolidated monetary aggregates.
  - Presentation covered:
    - (i) importance and advantages of a currency union;
    - (ii) examples of ongoing (European Currency Union, Eastern Caribbean Currency Union, Central Bank of West African States, Bank of Central African States) and planned (Central African Monetary Area, Gulf Cooperation Council, etc.) currency unions and processes for harmonizing MFS;
    - (iii) specific tasks for setting up a currency union;
    - (iv) statistical infrastructure and data needed to support monetary policy in a currency union;
    - (v) convergence criteria.
- Seminar on the balance sheet approach (BSA) to assess debt vulnerabilities:
  - At the authorities’ request, the mission presented the BSA to staff of the Research and Policy Directorate.
  - Presentation covered:
    - (i) importance of the SRF for standardization of MFS;
    - (ii) main features of the SRFs;
    - (iii) sources of data for the BSA matrix beyond MFS;
    - (iv) importance of BSA analysis and policy implications;
    - (v) compilation of the BSA matrix;
    - (vi) uses of the BSA to assess debt vulnerabilities across different sectors of the economy.
  - The presentations on the BSA and currency union statistics were attended by staff of the SD and representatives of other departments within the Research and Policy Directorate.

### Authorities’ requests for further collaboration
- The BOU authorities expressed interest in further collaboration from the IMF’s Statistics Department in three areas:
  - (i) assess the procedures for collecting, compiling, and transmitting to the IMF comprehensive data on the OFC sector by end-December 2016;
  - (ii) assist the authorities in developing analytical tools to support financial analysis, such as the balance sheet matrix to assess debt vulnerabilities;
  - (iii) support the authorities’ efforts toward the compilation of statistics in the context of the EAC-wide currency union, both at the national and regional levels.

### Appendices and implementation status (high-level)
- Appendix I lists officials met by the mission from entities including Bank of Uganda, Insurance Regulatory Authority of Uganda (IRA), Uganda Retirement Benefits Regulatory Authority (URBRA), Uganda Co-operative Savings and Credit Union (SACCO Association), National Social Security Fund (NSSF), Letshego (NDTMFI), Uganda Development Bank (UDB), and Life Insurance Company (ICEA).
- Appendix II summarizes the status of implementation of the previous mission’s recommendations with:
  - Objectives such as adoption of IMF MFSM methodologies and establishment of an Integrated Monetary Database (IMD).
  - Verifiable indicators and completion dates for SRF production, surveys, DCS generation, methodology documentation, and IMD operationalization.
  - Examples of specific completed or ongoing actions and dates:
    - SRF 1SR for the central bank completed; Form 1SR produced regularly and used for reporting to the IMF (06/30/2008).
    - Central bank survey (CBS) established and produced (06/30/2011).
    - SRF 2SR for ODCs completed; 2SR data reported from December 2001 to present; new reporting system 2SR regularly produced (historical data 09/30/2008; new system 02/28/2010).
    - Expanded ODC survey including credit institutions and MDIs produced (benchmark completion 07/31/2012).
    - DCS generated using 1SR and 2SR data (historical completion 09/30/2008; new system 07/31/2012).
    - DCS expanded to incorporate SACCOs with quarterly data collection for a sample of 176 SACCOs initiated using Call Report Form 2SR; submission to the IMF by June 30, 2016.
    - SRF 4SR coverage and submission schedule: 4SR-based data for the NSSF, UDB, NDTMFIs, and FOREX bureaus to be submitted to the IMF by June 30, 2016; data for insurance corporations, private pension funds and investment funds to be submitted by December 30, 2016.
    - IMD operational and updated on a regular basis (completion date 12/31/2011).
  - Priority and achievement scales used in the status table: Priority Scale H - High, M - Medium; Achievement Scale 4 - Fully Achieved, 3 - Largely Achieved, 2 - Partially Achieved.

*Source: https://www.imf.org/-/media/files/publications/cr/2017/cr17304.pdf*

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_Source: https://www.imf.org/-/media/files/publications/cr/2017/cr17304.pdf_