Directors recommended accompanying these measures with growth-enhancing structural reforms.They emphasized the importance of developing a medium-term fiscal framework and strengthening the annual budget process, with better integration of the Public Investment Fund and Aramco into the budget. They encouraged the authorities to take an integrated asset-liability management approach to financing the fiscal deficit. They noted that government debt issuance would help establish a risk-free yield curve and support the development of domestic debt markets. Directors noted that reforms have helped strengthen the financial system, and the banking sector is well positioned to weather lower oil prices and slower growth. They encouraged the authorities to continue to closely monitor credit quality, strengthen the macro-prudential framework, and finalize the framework for bank resolution and liquidity provision. They also recommended strengthening the liquidity forecasting and management frameworks of the Saudi Arabian Monetary Agency (SAMA). Directors agreed that the exchange rate peg to the U.S. dollar is the best option for the Kingdom given the current structure of its economy, and emphasized that a continued fiscal adjustment is needed to support the peg. They saw merit in reviewing the peg periodically to ensure it remains appropriate, given the desired evolution of the economy away from its current reliance on oil. Directors welcomed the improvements in economic statistics, but noted that further work is needed to fill remaining data gaps. Publication of more detailed budget data and updates would enhance transparency. Directors encouraged the authorities to subscribe to the Fund’s Special Data Dissemination Standard. --SPA 01:26 LOCAL TIME 22:26 GMT www.spa.gov.sa/w