**5.6 The possibilities of working within the framework of the countries of the second group**

The countries of the second group, namely Algeria, Libya, Sudan and Yemen, were affected by the drop in world oil prices and their oil revenues declined, which led to a decrease in the surpluses in the public budget and the current account balance for Algeria and Libya and a deterioration in the deficit in them for Sudan and Yemen. As for the local banking sector in all the countries of the group, it was not affected because it is not exposed to the global financial markets [21].

Which requires continuing to implement reforms aimed at achieving efficiency in the "Fiscal Policy" from the side of public spending to allow it to keep pace with the economic cycle, up and down, and to maintain a sustainable financial position. Sustainability Fiscal, without resorting to making major adjustments in the expenditure components, pain, or the revenue-decreased oil [6].

In addition, non-oil economic activity in the second group of countries requires structural reforms to improve performance by simplifying business procedures, increasing the private sector's contribution to diversifying the production base and creating productive jobs, and attracting foreign direct investments that include the transfer of knowledge and modern technology and the creation of added value in the national economy.

To strengthen the role of monetary policy in dealing with future external shocks, monetary authorities in the second group are being urged to deepen banking reform by restructuring and liberalizing public sector banks, ending competition between specialized public sector banks and other commercial banks, and subjecting them

to central bank standards for maintaining liquidity and exercising lending conditions on clearance [6, 21].
