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The third phase of the program focused on promoting decentralization policy reforms. USAID provided targeted assistance to key national partners such as the National Association of Municipalities, the Ministry of Finance, and the Local Government Commission in Parliament. As a result of USAID's assistance the basic legal framework fo rmunicipal fiscal decentralization was in place by the beginning of 2007. While providing policy level support, USAID also addressed capacity building issues with municipalities and other Bulgarian institutions.