Improved Financial Management Program

Conditions need to be achievable and realistic so that they can be implemented in a timely manner. The requirement to have a legal framework in place for the supervision and monitoring of banking activities, compatible with the Basel Principles of Banking and Supervision, proved challenging and potentially too ambitious for such an administration as small as Tuvalu yet this is an important element if there is to be private sector involvement in banking in Tuvalu. The country has limited technical capacity to implement such a legal framework and continuing assistance will be required. [Main text, para. 30]