CAPACITY DEVELOPMENTANNUAL REPORT “Capacity development (CD) is a core pillar of IMF support tomembers, taking on an even greater role in the new environment.CD is integrated with surveillance and lending to provideevidence-based and granular policy advice to member countries.Through its worldwide reach (…), CD plays a crucial role in helping “We are making CD delivery more flexible, tailored, and betterintegrated with policy advice and program design, as set out inour 2024 Capacity Development Strategy Review.Looking ahead,we will modernize CD delivery by leveraging new technologies, “Every region of the world benefited from our CD to strengthen The Managing Director’s Global Policy Agenda, Spring 2025 PREFACE As we reflect on the fiscal year 2025(FY25), the IMF remains resolute in itscommitment to strengthening globalmacroeconomic and financial stabilitythrough robust capacity building.Our mission is to empower member monetary operations, and debtmanagement. Its work also coveredemerging domains, such as supervisionand regulation of fintech, including I extend my sincere gratitude toour dedicated donors and partners,whose unwavering support has beeninstrumental in MCM’s and the Fund’s Deputy Managing Director,International Monetary Fund In FY25, our capacity development(CD) efforts were delivered against thebackdrop of high uncertainty markedby geoeconomic fragmentation,sluggish growth prospects, and The 2025 MCM Annual Reportencapsulates MCM’s key activities andhighlights the milestones achievedover the past fiscal year. It illustratesthe transformative impact of MCM’sCD initiatives, showcasing how the The IMF’s Monetary and CapitalMarkets (MCM) Department providesall member countries with access tocutting-edge knowledge and bestpractices that foster monetary and PREFACE I want to express my sincere gratitudefor the continued trust our membercountries place in the expertiseand guidance of the IMF’s MCMDepartment. Demand for CD hasremained robust across all fronts inFY25, with both the scale and impactof our activities consistent withpre-pandemic levels. CD remains atthe core of our mandate as it actively operational resilience, and governance,fostering a culture of shared learning.Resident advisors in the field remainintegral to MCM CD, enabling sustaineddialogue and reinforcing support on the The strong demand for MCM CDand encouraging feedback fromcountry authorities motivate ourcontinuous improvement. The 2025MCM CD Annual Report providesa comprehensive overview of ourefforts, encompassing over 1,000 Financial Counsellor and Director,Monetary and Capital As demand for MCM CD continuesto rise across core workstreams andexpands into new areas, MCM remainscommitted to providing the highestquality service to our membership,assisting countries with the prioritizationand sequencing of their CD demands,while demonstrating agility in selectingappropriate delivery modalities. I am proud of the progress MCM CDhas made. I am grateful to our staff,long-term and short-term experts,donor partners, and recipient countries TABLE OF CONTENTS 26SECTION IIViews from the Field:Targeted and Tailored CD in Action27AEcuador: Building Capacityin Stress Testing Modelsfor Solvency andLiquidity Risk30B METAC: Regional Workshopon Digitalization andOperational Resilience32C Cabo Verde:Operationalizing theResolution Framework34DKosovo: ProgrammaticApproach to Strengthenthe Bank SupervisoryFramework36E PFTAC: UpgradingPrudential Standardsand Supervisory Frameworksin the Pacific38F Suriname:Programmatic Approachto Debt Managementand Transparency40GRwanda: IntegratingClimate Shocks intoForecasting and PolicyAnalysis Systems42HBotswana:Enhancing EmergencyLiquidity Assistance andCollateral Frameworks 2AFiscal Year 2025at a Glance6BMCM CD Delivery inFY2516C Financial SectorStability Review (FSSR)19DDonor Partners’ Supportand MCM’sCommitmentto Accountability 44 57MCM TECHNICAL BOXES FIGURES 13Figure 11.Global Coverageof MCM CD Delivery, FY2513Figure 12.Top MCM CDRecipients, FY2515Figure 13.MCM CD DirectDelivery to FCS and Non-FCS15Figure 14.MCM CD DirectDelivery to FCS by Modalities15Figure 15.MCM CD DirectDelivery to FCS by ResourceType, FY25 3Figure 1.Number of MCM CDActivities3Figure 2.MCM CD DirectDeliveryby Core Workstream,FY254Figure 3.MCM CD Deliveryin Emerging Areas4Figure 4.MCM CD DirectDelivery by Region 7Box 1.Annual MCM LTXWorkshop8Box 2.Annual CybersecurityWorkshop9Box 3.BIS-IMF Symposium TABLES 19Table 1.Support of MCMPartners in FY25 ACRONYMS AND AFCAFRITAC CentralAFRITACIMF’s Regional Technical Assistance Centerin AfricaAFEAFRITAC EastAFSAFRITAC SouthAFWAFRITAC WestAFW2AFRITAC West 2 FSAPFinancial Sector Assessment ProgramFSSFFinancial Sector Stability FundFSSRFinancial Sector Stability ReviewFYFiscal YearHQIMF’s HeadquartersIFRSInternational Financial Reporting Standards MCM CAPACITYDEVELOPMENT: FISCAL YEAR 2025AT A GLANCE accounting for over three quartersof MCM CD. Other significant