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Back Matter

Author(s):
International Monetary Fund
Published Date:
September 1996
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    Appendices

    Contents

    Appendix I International Reserves

    This appendix reviews recent developments in official measures of international reserves and liquidity. Changes in the main components of official reserves are examined. The currency composition of foreign exchange reserves and their distribution across different groups of countries are also analyzed.

    Recent Evolution of Official Reserve Assets

    During 1995, total international reserves increased by 11 percent to SDR 1,183 billion at the end of the year, reflecting a sharp 15 percent increase in total non-gold reserves that was partially offset by a 2 percent decline in the market value of the official holdings of gold (Table 1.1). The increase in non-gold reserves reflected an increase in the stocks of foreign exchange reserves of both industrial and developing countries. Both components of total Fund-related assets—SDRs and reserve positions in the Fund—also increased in 1995; countries have continued to rebuild their SDR holdings since late 1992, when most Fund members completed payment for their quotas under the Ninth General Review. The fall in the value of official holdings of gold during 1995 was attributable to small decreases in both the quantity of gold holdings and in their market value in terms of SDRs.

    Non-Gold Reserves

    Total non-gold reserves increased by 15 percent during 1995 to SDR 947 billion at the end of the year. This increase was more than twice the average rate of increase during the previous five years. Of the total increase of SDR 124 billion during 1995, industrial countries accounted for about SDR S3 billion, an increase of 12 percent that represented a much greater rate of increase than in recent years.

    Non-gold reserves of developing countries rose by 18 percent during 1995, continuing the trend of high rates of increase in non-gold reserves for this group of countries. Developing countries continued to gradually increase their share of total non-gold reserves, and at the end of 1995 their share stood at 49 percent compared with a share of 35 per-ccnt in 1990. Virtually all of the increase in the non-gold reserves of developing countries was accounted for by non-oil developing countries, primarily the net debtor countries, as a consequence of private capital inflows into these countries. Countries with debt-servicing problems increased their stock of non-gold reserves by 20 percent during 1995, after a 5 percent decline during 1994. Countries without debt-servicing problems increased their holdings by 25 percent, similar to the rate of increase in previous years of this decade.

    Foreign Exchange Reserves

    Foreign exchange reserves constitute the largest component of non-gold reserves, accounting 90 percent of total non-gold reserves for industrial countries and about 98 percent for developing countries. Total foreign exchange reserves increased by 15 percent during 1995, about twice the rate of increase during 1994. At the end of 1995, these reserves stood at SDR 891 billion. During 1995, the stock of these reserves rose by SDR 46 billion (12 percent) for industrial countries and by SDR 69 billion (18 percent) for developing countries. Among the developing countries, net debtor countries without debt-servicing problems accounted for most of this increase.

    Holdings of Fund-Related Reserve Assets

    Total holdings of Fund-related assets rose by SDR 9 billion during 1995, to SDR 56 billion at the end of the year, after remaining essentially unchanged from 1991 to 1994. Members’ holdings of SDRs increased by SDR 4 billion, and their reserve positions in the Fund increased by SDR 5 billion during 1995, with both industrial and developing countries sharing in this increase.

    The quota increase arising from the Ninth General Review resulted in major changes in the composition of Fund-related reserve assets in 1992 because most members used their holdings of SDRs to pay for the reserve asset portion of the quota increase. Members’ reserve positions at the Fund, which comprise their reserve tranche positions and their creditor positions, rose by SDR 8 billion in 1992. This increase offset a decline of SDR 8 billion in holdings of SDRs, leaving total holdings of Fund-related assets unchanged in 1992.

    Early in 1993, the Fund made a decision to reduce its holdings of SDRs in order to replenish members’ holdings and facilitate their use of SDRs. This policy was implemented by providing SDRs to members in purchases and other transfers and resulted in a decline in the Fund’s holdings of SDRs from SDR 9 billion at the end of 1992 to SDR 1 billion at the end of 1995, Over this period, SDR holdings increased by SDR 5 billion for industrial countries and by SDR 2 billion for developing countries.1 Holdings of SDRs accounted for 35 percent of total holdings of Fund-related assets at the end of 1995.

    Table I.1OFFICIAL HOLDINGS OF RESERVE ASSETS, END OF YEAR 1990-APRIL 19961(In billions of SDRs)
    199019911992199319941995April

    996
    All countries
    Total reserves excluding gold
    Fund-related assets
    Reserve positions in the Fund23.725.933.932.831.736.737.3
    SDRs20.420.612.914.615.819.819.6
    Subtotal, Fund-related assets44.146.446.847.447.556.456.9
    Foreign exchange593.8625.4646.6717.6775.6890.6950.6
    Total reserves excluding gold637.9671.8693.4765.0823.0947.11,007.5
    Gold2
    Quantity (millions of ounces)939.9938.0927.5920.9916.5907.4903.1
    Value at London market price254.1231.9224.8261.9240.6236.1243.7
    Total reserves including gold892.0903.7918.21,026.91,063.71,183.11,251.3
    Industrial countries
    Total reserves excluding gold
    Fund-related assets
    Reserve positions in the Fund20.022.829.528.327.431.632.1
    SDRs17.617.510.511.512.515.014.9
    Subtotal, Fund-related assets37.640.240.039.839.946.647.1
    Foreign exchange376.5360.4356.8373.7393.9439.9475.1
    Total reserves excluding gold414.1400.7396.7413.4433.8486.5522.1
    Gold2
    Quantity (millions of ounces)795.8793.7785.2770.8768.0755.1749.6
    Value at London market price215.4196.2190.3219.2201.6196.5202.3
    Total reserves including gold629.5596.9587.1632.7635.5682.9724.4
    Developing countries
    Total reserves excluding gold
    Fund-related assets
    Reserve positions in the Fund3.83.14.44.54.35.05.2
    SDRs2.73.12.43.23.34.84.6
    Subtotal, Fund-related assets6.56.26.87.77.69.89.8
    Foreign exchange217.3265.0289.8343.9381.7450.8475.6
    Total reserves excluding gold223.8271.2296.6351.6389.2460.6485.4
    Gold2
    Quantity (millions of ounces)143.2144.3142.3150.1148.5152.3153.6
    Value at London market price38.835.734.542.739.039.641.4
    Total reserves including gold262.5306.8331.1394.2428.2500.2526.8
    Net debtors
    Total reserves excluding gold
    Fund-related assets
    Reserve positions in the Fund1.11.32.92.93.03.73.9
    SDRs2.12.41.72.32.43.83.7
    Subtotal, Fund-related assets3.33.74.75.25.47.67.6
    Foreign exchange151.1189.9213.5267.2303.2373.5400.2
    Total reserves excluding gold154.4193.7218.1272.4308.5381.1407.8
    Gold2
    Quantity (millions of ounces)117.0118.1116.1123.8122.3125.4127.4
    Value at London market price31.729.228.135.232.132.834.4
    Total reserves including gold186.0222.9246.3307.7340.6413.9442.2
    Countries without debt-servicing problems
    Total reserves excluding gold
    Fund-related assets
    Reserve positions in the Fund1.11.22.52.42.63.33.5
    SDRs1.51.40.81.21.31.81.9
    Subtotal, Fund-related assets2.52.63.23.73.95.15.3
    Foreign exchange105.6128.7132.6169.4210.7263.5284.7
    Total reserves excluding gold108.1131.3135.9173.1214.5268.6290.0
    Gold 2
    Quantity (millions of ounces)67.969.467.477.476.278.478.7
    Value at London market price18.417.116.322.020.020.421.2
    Total reserves including gold126.5148.5152.2195.1234.5289.0311.2
    Note: Components may not sum to totals because of rounding.Source: International Monetary Fund, International Financial Statistics.

    “Fund-related assets” comprise reserve positions in the Fund and SDR holdings of all Fund members. The entries under “Foreign exchange” and “Gold” comprise official holdings of those Fund members for which data are available and certain other countries or areas.

    One troy ounce equals 31.103 grams. The market price is the afternoon price fixed in London on the last business day of each period.

    Gold

    The stock of official gold reserves valued at market prices fell by 8 percent in 1994 and by a further 2 percent in 1995 and stood at SDR 236 billion at the end of 1995. This pattern reinforced the trend decline in the ratio of gold holdings to total reserves that began in the late 1980s, except for a brief increase in this ratio in 1993. Gold reserves accounted for 29 percent of total reserves at the end of 1990 but only for 20 percent at the end of 1995. The decline in the value of gold holdings in 1995 reflected declines of about 1 percent in both the quantity of gold holdings and in the SDR price of gold. The reduction in gold holdings in 1995 was concentrated in the industrial countries. The share of the total stock of gold reserves held by industrial countries has declined gradually during this decade, from 85 percent in 1990 to 83 percent in 1995.

    Developments in the First Quarter of 1996

    In the first quarter of 1996, total international reserves increased by SDR 68 billion. Total non-gold reserves increased by SDR 60 billion, with virtually all of this increase coining from an increase in foreign exchange reserves, while Fund-related assets remained essentially unchanged. Foreign exchange reserves rose by about 8 percent for industrial countries and also for the group of net debtor developing countries without debrscrvicing problems. Gold holdings increased by SDR 8 billion, reflecting a 4 percent increase in the SDR price of gold.

    Currency Composition of Reserves

    During the past ten years there has been little change in the degree of diversification in the currency composition of foreign exchange reserves. The figures in Table I.2 show that the U.S. dollar remains the dominant international currency.2

    Although the share of U.S. dollars in total foreign exchange reserves declined from 1987 through 1990, this pattern was subsequently reversed, and the U.S. dollar share at the end of 1995 was 57 percent. The shares of the deutsche mark and the Japanese yen mirrored this pattern, with their shares peaking in 1989 and 1991, respectively, and then declining gradually to a combined share of 21 percent in 1995.

    At the end of 1995, the U.S. dollar share of industrial country reserves stood at 53 percent, with deutsche mark and Japanese yen holdings accounting for an additional 23 percent. Part of the recent increase in the U.S. dollar share of foreign exchange reserves of industrial countries may reflect central bank intervention to support the dollar, particularly in 1995. Developing country reserves continued to be relatively less diversified across currencies, with a U.S. dollar share of 61 percent and the deutsche mark and the Japanese yen together accounting for 19 percent.

    The share of European currency units (ECUs) in total foreign exchange reserves fell from 14 percent in 1987 to 7 percent in 1995. Among other identifiable currency reserves, the shares of the pound sterling and the French franc have increased over the past decade, while the shares of the Swiss franc and the Netherlands guilder have declined. The “unspecified currency” component of foreign exchange reserves continued to increase and accounted for 10 percent of foreign exchange reserves in 1995, indicating that the evolution of currency shares discussed above should be interpreted with some caution.3

    In the calculation of currency shares in Table I.2, the ECU is treated as a separate currency. Official ECU reserves are in the form of claims both on the private sector and the European Monetary Institute (EMI). The ECU reserves that represent claims on the EMI are issued in exchange for deposits equal to 20 percent of both gold and dollar reserves. These swaps are renewed every three months, and changes in members’ holdings of dollars and gold, as well as changes in the market price of gold and in the foreign exchange value of the dollar, affect the amount of ECUs outstanding.4 Quantity changes in ECU holdings therefore depend in pan on the evolution of the two components of the EMI swap. 5 The other component of ECU foreign exchange reserves is official claims on the private sector, usually in the form of ECU deposits and bonds.

    Table I.2SHARE OF CURRENCIES IN TOTAL IDENTIFIED OFFICIAL HOLDINGS OF FOREIGN EXCHANGE, END OF YEAR 1987-951(In percent)
    198719881989199019911992199319941995Memorandum:

    ECU-Dollar

    Swaps

    Included

    with Dollars 2

    1995
    All countries
    U.S. dollar56.055.351.950.350.955.156.255.956.461.5
    Pound sterling2.22.52.63.23.43.23.13.53.43.5
    Deutsche mark13.414.518.017.415.713.514.114.313.714.2
    French franc0.81.01.42.32.82.42.22.11.81.9
    Swiss franc1.81.81.41.31.21.11.21.00.90.9
    Netherlands guilder1.21.01.11.01.10.60.60.50.40.5
    Japanese yen7.07.17.38.28.77.88.08.27.17.4
    ECU14.211.710.59.610.010.18.37.86.5
    Unspecified currencies 33.45.15.76.76.26.16.26.69.710.1
    Industrial countries
    U.S. dollar54.854.548.445.743.849.050.551.252.862.5
    Pound sterling1.01.31.21.71.82.32.22.32.12.2
    Deutsche mark14.115.520.619.818.315.016.416.415.716.9
    French franc0.30.71.12.33.02.72.52.12.12.3
    Swiss franc1.51.51.10.90.80.40.30.20.10.2
    Netherlands guilder1.11.01.11.11.10.40.40.20.20.2
    Japanese yen6.36.47.58.89.77.67.98.36.97.4
    ECU19.916.215.013.815.816.514.714.112.3
    Unspecified currencies31.03.04.05.85.76.15.25.37.88.4
    Developing countries
    U.S. dollar59.157.560.560.663.364.663.861.860.560.5
    Pound sterling5.45.75.86.66.24.64.44.94.94.9
    Deutsche mark11.511.911.711.911.011.211.111.811.411.4
    French franc2.02.02.12.32.31.91.82.11.51.5
    Swiss franc2.72.42.22.12.12.22.42.01.81.8
    Netherlands guilder1.31.11.00.91.01.01.00.90.80.8
    Japanese yen8.68.96.96.97.08.38.18.27.37.3
    ECU
    Unspecified currencies 49.510.59.98.87.16.37.68.311.811.8
    Note: Components may not sum to total because of rounding.

    Note that European currency units (ECUs) are treated as a separate currency except in the last column. Only Fund member countries that report their official holdings of foreign exchange are included in this table.

    This column is for comparison and indicates the currency composition of reserves when ECUs issued against dollars are assumed to be dollars and all other ECUs are ignored.

    The residual is equal to the difference between total foreign exchange reserves of Fund member countries and the sum of the reserves held in the currencies listed in the table.

    The calculations here rely to a greater extent on Fund staff estimates than do those provided for the group of industrial countries.

    Table I.3CURRENCY COMPOSITION OF OFFICIAL HOLDINGS OF FOREIGN EXCHANGE, END OF YEAR 1987-951(In millions of SDRs)
    198719881989199019911992199319941995
    U.S. dollar
    Change in holdings38,34718,21811,21218,53216,18933,95546,12629,28869,706
    Quantity change70,5515,8775,58039,21518,56621,88544,74352,42174,397
    Price change–32,20412,3405,632–20,683–2,37712,0701,382–23,133–4,691
    Year-end value224,941243,158254,370272,902289,091323,046369,172398,460468,166
    Pound sterling
    Change in holdings1,5712,2521,4594,6342,182–6021,7564,1173,522
    Quantity change8432,0632,6383,0982,7353,1112,1014,2634,115
    Price change728189–1,1791,536–553–3,712–344–146–593
    Year-end value8,91811,17012,62917,26419,44618,84420,60124,71828,240
    Deutsche mark
    Change in holdings11,6959,89624,2076,555–5,607–9,61813,5439,17811,701
    Quantity change8,81013,63817,7341,927–3,526–7,94018,9964,8215,524
    Price change2,885–3,7426,4734,628–2,082–1,677–5,4524,3576,177
    Year-end value53,80963,70687,91394,46888,86079,24392,786101,964113,665
    French franc
    Change in holdings6681,2412,5155,4743,194–1,571141667122
    Quantity change5501,5362,0465,0973,212–1,379812244–952
    Price change118–295468377–19–192–6714241,074
    Year-end value3,2764,5177,03212,50615,70014,12914,26914,93715,059
    Swiss franc
    Change in holdings1,356570–790–15–1–3551,375–918477
    Quantity change7101,335–778–698370–1671,470–1,384–318
    Price change646–765–12684–371–188–95466795
    Year-end value7,2187,7886,9986,9836,9826,6278,0027,0837,561
    Netherlands guilder
    Change in holdings1,428–253839387338–2,235398–45515
    Quantity change1,17161489147419–2,240665–651–212
    Price change257–314350240–814–267197226
    Year-end value4,6734,4205,2585,6465,9843,7494,1473,6933,707
    Japanese yen
    Change in holdings4,9673,1524,6938,7284,981–3,4606,2396,377146
    Quantity change2,3432,1278,7328,9641,759–5,5521,5223,6303,237
    Price change2,6231,025–4,039–2363,2222,0924,7172,747–3,091
    Year-end value27,95631,10835,80144,52949,51046,05052,28958,66658,812
    European currency unit
    Change in holdings16,521–5,9853644924,8392,031–4,225769–1,250
    Quantity change14,049–3,296–1,878–2,1075,7396,306–18–1,150–3,858
    Price change2,472–2,6892,2422,600–900–4,275–4,2071,9202,607
    Year-end value57,24151,25751,62152,11356,95258,98354,75855,52754,277
    Sum of the above2
    Change in holdings76,55329,09144,49944,78926,11418,14665,35349,02484,438
    Quantity change99,02723,34234,56355,64329,27414,02470,29162,19381,933
    Price change–22,4745,7509,936–10,854–3,1604,122–4,937–13,1692,505
    Year-end value388,032417,123461,622506,411532,525550,671616,024665,048749,486
    Total official holdings3
    Change in holdings92,06038,49950,96848,41731,60421,22071,00458,011114,987
    Year-end value455,898494,398545,366593,782625,386646,607717,611775,611890,609
    Note: Components may not sum to totals because of rounding.

    The currency composition of foreign exchange is based on the Fund’s currency survey and on estimates derived mainly, but not solely, from official national reports. The numbers in this table should be regarded as estimates that are subject to adjustment as more information is received. Quantity changes are derived by multiplying the changes in official holdings of each currency from the end of one quarter to the next by the average of the two SDR prices of that currency prevailing at the corresponding dates. This procedure converts the change in the quantity of national currency from own units to SDR units of account. Subtracting the SDR value of the quantity change so derived from the quarterly change in the SDR value of foreign exchange held at the end of two successive quarters and cumulating these differences yields the effect of price changes over the years shown.

    Each item represents the sum of the eight currencies above.

    Includes a residual whose currency composition could not be ascertained, as well as holdings of currencies other than those shown.

    ECUs, which are held mostly by European countries, reached 20 percent of industrial country reserves in the mid-1980s. The share of ECUs then gradually declined from 17 percent in 1992 to 12 percent by the end of 1995. Most of the recent fall in the share of ECUs is a result of the decline in official ECU reserves in the form of claims on the private sector, If the SDR value of ECU swaps issued against dollars is counted as part of the dollar component of foreign exchange reserves (last column of Table 1.2), the overall picture of the trend in the currency composition of foreign exchange reserves is similar, although the U.S. dollar share is then about 10 percentage points higher for the industrial countries.

    Changes in the SDR value of foreign exchange reserves can be decomposed into quantity and valuation (price) changes for each of the major currencies as well as the ECU. This decomposition is presented in Table 1.3. In 1995, total official holdings of reserves in the major identifiable currencies increased by SDR 84 billion, almost entirely reflecting an increase of SDR 82 billion in the quantity of reserves.

    Official reserves held in U.S. dollars increased by SDR 70 billion in 1995, reflecting a substantial increase in the quantity of dollars held as reserves and mildly tempered by a 2 percent decline in the SDR value of the U.S. dollar. Of the major reserve currencies, the deutsche mark was the only reserve asset that experienced both quantity and valuation increases in 1995. Official reserves held in Japanese yen remained unchanged, since an increase of SDR 3 billion in the quantity of official yen reserves was almost fully offset by a valuation decline owing to the 5 percent fall in the SDR value of the yen during 1995. Despite an increase in the SDR price of the ECU, the value of reserves held in ECUs declined by SDR 1 billion because of a decline in the quantity of ECU reserves.

    Appendix II

    Financial Operations and Transactions of the Fund

    The tables in this appendix supplement the information given in the section on the Fund’s financial operations and policies.

    Table II.1ARRANGEMENTS APPROVED DURING FINANCIAL YEARS ENDED APRIL 30, 1953–96
    FinancialNumber of ArrangementsAmounts Committed Under Arrangements

    (in millions of SDRs)
    YearStand-byEFFSAFESAFTotalStand-byEFFSAFESAFTotal
    1953225555
    1954226363
    1955224040
    1956224848
    1957991,1621,162
    195811111,0441,044
    195915151,0571,057
    19601414364364
    19611515460460
    196224241,6331,633
    196319191,5311,531
    196419192,1602,160
    196524242,1592,159
    19662424575575
    19672525591591
    196832322,3522,352
    19692626541541
    197023232,3812,381
    19711818502502
    19721313314314
    19731313322322
    197415151,3941,394
    19751414390390
    1976182201,1882841,472
    1977191204,6805185,198
    197818181,2851,285
    1979144185081,0931,600
    1980244282,4797973,277
    19812111325,1985,22110,419
    1982195243,1067,90811,014
    1983274315,4508,67114,121
    1984252274,287954,382
    198524243,2183,218
    1986181192,1238252,948
    19872210324,1183584,476
    198814115301,7022456702,617
    198912147242,9562074279554,545
    199016334263,2497,6273741511,328
    199113223202,7862,338154545,593
    199221215295,5872,49327438,826
    199311318231,9711,242495273,789
    199418217281,381779271,1703,357
    1995173113113,0552,3351,19716,587
    199619418329,6458,3811821,47619,684
    Table II.2ARRANGEMENTS IN EFFECT AT END OF FINANCIAL YEARS ENDED APRIL 30, 1953–96
    FinancialNumber of Arrangements

    as of April 30
    Amounts Committed Under Arrangements

    as of April 30

    (in millions of SDRs)
    YearStand-byEFFSAFESAFTotalStand-byEFFSAFESAETotal
    1953225555
    195433113113
    195533113113
    1956339898
    1957991,1951,195
    195899968968
    195911111,0131,013
    19601212351351
    19611212416416
    196221212,1292,129
    196317171,5201,520
    196419192,1602,160
    196523232,1542,154
    19662424575575
    19672525591591
    196831312,2272,227
    19692525538538
    197023232,3812,381
    19711818502502
    19721313314314
    19731212282282
    197415151,3941,394
    19751212337337
    1976172191,1592841,443
    1977173204,6738025,475
    1978193225,0758025,877
    1979155201,0331,6112,643
    1980227292,3401,4633,803
    19812215375,3315,46410,795
    19822312356,2969,91016,206
    1983309399,46415,56125,025
    1984305355,44813,12118,569
    1985273303,9257,75011,675
    1986242264,0768314,907
    198723110344,3137503275,391
    198818225452,1879951,3574,540
    1989142237463,0541,0321,5669556,608
    19901941711513,5977,8341,1101,37013,911
    19911451214452,7039,5975391,81314,652
    1992227816534,83312,1591012,11119,203
    1993156420454,4908,569832,13715,279
    1994166322471,1314,504802,7138,428
    19951991275613,1906,840493,30623,385
    19962171285714,9639,3901823,38327,918
    Table II.3STAND-BY ARRANGEMENTS IN EFFECT DURING FINANCIAL YEAR ENDED APRIL 30, 1996(In millions of SDRs)
    Undisbursed Balance
    Arrangement DatesAmounts ApprovedOf current
    MemberEffective

    date
    Expiration

    date
    Through

    April 30, 1995
    In 1995/96At date of

    termination
    arrangements

    at April 30, 1996
    Algeria 15/27/945/22/9545772
    Argentina4/12/961/11/98720642
    Armenia 26/28/952/14/964430
    Azerbaijan11/17/9511/16/965937
    Belarus9/12/959/11/96196146
    Cameroon3/14/949/13/958159
    Cameroon9/27/959/26/966839
    Congo5/27/945/26/952311
    Costa Rica11/29/952/28/975252
    Croatia10/14/944/13/966552
    Djibouti4/15/966/14/9752
    Ecuador 35/11/9412/11/9517475
    El Salvador7/21/959/20/963838
    Estonia4/11/957/10/961414
    Georgia 46/28/952/28/967250
    Haiti3/8/953/7/96204
    Hungary3/15/962/14/98264264
    Kazakstan 51/26/945/31/9512450
    Kazakstan6/5/956/4/9618646
    Latvia4/21/955/20/962727
    Lesotho 69/23/947/31/9588
    Lesotho7/31/957/30/9677
    Macedonia, former Yugoslav Republic of5/5/956/4/96225
    Malawi11/16/946/30/95152
    Mexico 72/1/958/15/965,2606,8103,312
    Moldova3/22/953/21/965926
    Pakistan12/13/953/31/97402214
    Panama 811/29/953/31/978455
    Papua New Guinea7/14/951/13/977138
    Poland 98/5/943/4/9633350
    Romania 105/11/944/24/97132189226
    Russia 114/11/953/26/964,313
    Slovak Republic7/22/943/21/9611684
    Turkey 127/8/943/7/96611150
    Ukraine4/7/954/6/96997459
    Uruguay3/1/963/31/97100100
    Uzbekistan12/18/953/17/97125119
    Yemen3/20/966/19/9713282
    Total12,8309,6451,1825,467

    Canceled prior to original expiration date of May 26, 1995; replaced by EFF arrangement.

    Canceled prior to original expiration date of June 27, 1996; replaced by ESAF arrangement.

    Canceled prior to original expiration date of March 31, 1996. Includes augmentation of SDR 44 million in support of debt- and debt-service-reduction (DDSR) operations.

    Canceled prior to original expiration date of June 27, 1996; replaced by ESAF arrangement.

    Extended from original expiration date of January 25, 1995.

    Canceled prior to original expiration date of September 22, 1995.

    Increased by SDR 6,810 million in 1995/96.

    Augmented by SDR 14.5 million for DDSR.

    Augmented by SDR 148 million for DDSR and then reduced from original amount of SDR 693 million.

    Extended from original expiration date of December 10, 1995. Increased by SDR 189 million in 1995/96.

    Canceled prior to original expiration date of April 10, 1996.

    Increased from original amount of SDR 509 million and extended from original expiration date of September 7, 1995.

    Table II.4EXTENDED FUND FACILITY ARRANGEMENTS IN EFFECT DURING FINANCIAL YEAR ENDED APRIL 30, 1996(In millions of SDRs)
    Undisbursed Balance
    Arrangement DatesAmounts ApprovedOf current
    MemberEffective

    date
    Expiration

    date
    Through

    April 30, 1995
    In 1995/96At date of

    termination
    arrangements

    at April 30, 1996
    Algeria5/22/955/21/981,169760
    Argentina 13/31/923/30/964,020
    Egypt9/20/939/19/96400400
    Gabon11/8/9511/7/9811088
    Jamaica12/11/923/16/9610922
    Jordan 25/25/942/9/9618959
    Jordan2/9/962/8/99201176
    Lithuania10/24/9410/23/9713572
    Pakistan 32/22/9412/13/95379256
    Peru3/18/933/17/961,018375
    Philippines6/24/946/23/97475438
    Russia3/26/963/25/996,9016,667
    Zimbabwe9/11/929/10/9511528
    Total6,8408,3817408,602

    Amount approved includes augmentation of SDR 334 million for debt-and debt-service-reduction operations and fourth year of SDR 1,537 million.

    Amount approved includes increases of SDR 25 million (in September 1994) and SDR 37 million (in February 1995). Canceled prior to original expiration date of May 24, 1997, and replaced by new EFF arrangement.

    Canceled prior to original expiration date of February 21, 1997; replaced by stand-by arrangement.

    Table II.5ARRANGEMENTS UNDER THE STRUCTURAL ADJUSTMENT FACILITY THROUGH FINANCIAL YEAR ENDED APRIL 30, 1996(In millions of SDRs)
    MemberDate of

    Approval
    Amounts Approved

    and Disbursed

    Through

    April 30, 1996
    Undisbursed Balance

    at Expiration/

    Replacement
    Bangladesh2/6/87201
    Benin6/16/89166 1
    Bolivia12/15/861845 1
    Burkina Faso3/13/91616 1
    Burundi8/8/8630
    Central African Republic6/1/8721
    Chad10/30/8721
    Comoros6/21/9121
    Dominica11/26/863
    Equatorial Guinea12/7/8894 1
    Ethiopia10/28/9249
    Gambia, The9/17/8693 1
    Ghana11/6/8741102 1
    Guinea7/29/872912
    Guinea-Bissau10/14/8742
    Haiti12/17/86922
    Kenya2/1/882871 1
    Lao People’s Democratic Republic9/18/8921
    Lesotho6/29/8811
    Madagascar8/31/871333 1
    Mali8/5/882510 1
    Mauritania9/22/86177 1
    Mozambique6/8/8743
    Nepal10/14/8726
    Niger11/17/86177 1
    Pakistan12/28/88382
    Rwanda4/24/91922
    São Tomé and Príncipe6/2/8912
    Senegal11/10/864317 1
    Sierra Leone11/14/861229
    Sierra Leone3/28/9427
    Somalia6/29/87922
    Sri Lanka3/9/88156
    Tanzania10/30/8775
    Togo3/16/88819 1
    Uganda6/15/875020 1
    Zaire5/15/8714658
    Zambia12/6/95182
    Total1,767530

    Undisbursed balance of SAF arrangement converted to ESAF arrangement.

    Table II.6ARRANGEMENTS UNDER THE ENHANCED STRUCTURAL ADJUSTMENT FACILITY THROUGH FINANCIAL YEAR ENDED APRIL 30, 1996(In millions of SDRs)
    Arrangement Dates 1ApprovedDisbursementsUndisbursed
    MemberDate of

    approval
    Expiration

    date
    Through

    April 30, 1995
    Approved

    in 1995/96
    Through

    April 30, 1996 2
    Balance

    at April 30, 1996
    Albania7/14/937/13/96423111
    Armenia2/14/962/13/991011784
    Bangladesh 38/10/909/13/93345345
    Benin 31/25/935/21/965252
    Bolivia 37/27/885/31/94163163
    Bolivia12/19/9412/18/971015050
    Burkina Faso 33/31/935/30/96494449
    Burundi 411/13/9111/12/944319
    Cambodia5/6/945/5/97844242
    Chad9/1/958/31/9850841
    Côte d’Ivoire3/11/943/10/9733323895
    Equatorial Guinea 42/3/932/2/96135
    Gambia, The11/23/8811/25/912121
    Georgia2/28/962/27/9916728139
    Ghana 311/9/883/5/92389389
    Ghana6/30/956/29/9816427137
    Guinea11/6/9112/19/96584612
    Guinea-Bissau1/18/951/17/98928
    Guyana 37/13/9012/20/938282
    Guyana7/20/947/19/97542727
    Honduras 37/24/927/24/97473414
    Kenya 3, 55/15/8912/21/94261261
    Kenya4/26/964/25/99150150
    Kyrgyz Republic 37/20/947/19/9771174048
    Lao People’s Democratic Republic6/4/936/3/96352312
    Lesotho5/22/918/1/941818
    Madagascar 45/15/895/14/927751
    Malawi 37/15/883/31/946767
    Malawi10/18/9510/17/9846838
    Mali 38/28/924/10/967979
    Mali4/10/964/9/99621052
    Mauritania 55/24/891/25/955151
    Mauritania1/25/951/24/98432121
    Mongolia6/25/936/24/96413011
    Mozambique 3,46/1/9012/31/95130115
    Nepal 410/5/9210/4/953417
    Nicaragua6/24/946/23/9712020100
    Niger 412/12/8812/11/914724
    Pakistan 62/22/9412/13/95607202
    Senegal11/21/886/2/92145145
    Senegal8/29/948/28/971317159
    Sierra Leone 33/28/943/27/9789138220
    Sri Lanka 49/13/917/31/95336280
    Tanzania 47/29/917/28/9418286
    Togo 45/31/895/19/934638
    Togo9/16/949/15/97653333
    Uganda 34/17/896/30/94219219
    Uganda9/6/949/5/971215467
    Vietnam11/11/9411/10/97362181181
    Zambia12/6/9512/5/9870265250
    Zimbabwe 49/11/929/10/95201152
    Total5,4611,4764,6991,512

    Expiration date is for the three-year commitment, or the third or fourth annual arrangement, if applicable.

    ESAF Trust portion of SDR 4,228 million financed with drawings under the following ESAF borrowing agreements: Export-Import Bank of Japan (SDR 1,902 million); Caisse Francaise de Developpement-France (SDR 700 million); Kreditanstalt fur Wiederaufbau-Germany (SDR 530 million); Bank of Spain (SDR 216 million); Swiss Confederation (SDR 200 million); Ufficio Italiano dei Cambi (SDR 313 million); Canada (SDR 229 million); Bank of Norway (SDR 75 million); and Bank of Korea (SDR 64 million. Drawings were also made under the associated borrowing agreement with the Saudi Fund for Development (SDR 50 million). The remaining SDR 421 million was financed by SAF resources used under ESAF arrangements.

    Commitment amount was increased.

    The arrangement expired with partial disbursements. The total undisbursed amount for expired arrangements with Burundi, Equatorial Guinea, Madagascar, Mozambique, Nepal, Niger, Sri lanka, Tanzania, Togo, and Zimbabwe is SDR 321 million.

    The three-year arrangement expired with an undisbursed balance for which a successor two-year arrangement was approved.

    The three-year arrangement was canceled with an undisbursed balance of SDR 404 million; it was replaced by a 16-month stand-by arrangement.

    Table II.7SUMMARY OF DISBURSEMENTS, REPURCHASES, AND REPAYMENTS, FINANCIAL YEARS ENDED APRIL 30, 1948–96(In millions of SDRs)
    DisbursementsRepurchases and RepaymentsTotal Fund

    Credit

    Outstanding
    Financial

    Year
    Purchases 1Trust Fund

    loans
    SAF

    loans
    ESAF

    loans 2
    TotalRepurchasesTrust Fund

    repayments
    SAF/ESAF

    repayments
    Total
    1948606606133
    1949119119193
    195051522424204
    195128281919176
    195246463737214
    19536666185185178
    1954231231145145132
    1955484927627655
    1956383927227672
    19571,1141,1147575611
    195866666687871,027
    1959264264537537898
    1960166166522522330
    1961577577659659552
    19622,2432,2431,2601,2601,023
    19635805808078071,059
    1964626626380380952
    19651,8971,8975175171,480
    19662,8172,8174064063,039
    19671,0611,0613403402,945
    19681,3481,3481,1161,1162,463
    19692,8392,8391,5421,5423,299
    19702,9962,9961,6711,6714,020
    19711,1671,1671,6571,6572,556
    19722,0282,0283,1223,122840
    19731,1751,175540540998
    19741,0581,0586726721,085
    19755,1025,1025185184,869
    19766,5916,5919609609,760
    19774,910324,94286886813,687
    19782,5032682,7714,4854,48512,366
    19793,7206704,3904,8594,8599,843
    19802,4339623,3953,7763,7769,967
    19814,8601,0605,9202,8532,85312,536
    19828,0418,0412,0102,01017,793
    198311,39211,3921,555181,57426,563
    198411,51811,5182,0181112,12934,603
    19856,2896,2892,7302122,94337,622
    19864,1014,1014,2894134,70236,877
    19873,6851393,8246,1695796,74933,443
    19884,1534454,5977,9355288,46329,543
    19892,5412902643,0956,2584476,70525,520
    19904,5034194085,3296,0423566,39824,388
    19916,955844917,5305,4401685,60825,603
    19925,3081254835,9164,76814,77026,736
    19938,465205739,0584,083364,11928,496
    19945,325506125,9874,348521124,51329,889
    199510,6151457311,1753,98442444,23136,837
    199610,8701821,29512,3476,69873957,10042,040

    Includes reserve tranche purchases.

    ESAF loans include SDR 421 million of SAF resources disbursed under ESAF arrangements.

    Table II.8PURCHASES FROM THE FUND, FINANCIAL YEAR ENDED APRIL 30, 1996(In millions of SDRs)
    MemberReserve

    Tranche
    Stand-By/

    Credit

    Tranche 1
    Extended

    Fund Facility
    Compensatory

    and Contingency

    Financing Facility
    Systemic

    Transformation

    Facility
    Total

    Purchases
    Algeria410410
    Argentina78*769/847
    Armenia141730
    Azerbaijan222951
    Belarus5050
    Bosnia and Herzegovina113041
    Cameroon2828
    Djibouti33
    Gabon2222
    Georgia222850
    Haiti11
    Jordan7979
    Kazakstan139139
    Lithuaina4141
    Macedonia, former Yugoslav Republic of171230
    Mexico3,4983,498
    Moldova2626
    Pakistan188188
    Panama2929
    Papua New Guinea3333
    Romania3838
    Russia3,5942343,828
    Rwanda10919
    Turkey150150
    Ukraine459459
    Uzbekistan65056
    Yemen5050
    Zambia23652675
    Total449,1271,554913610,870

    Includes outright purchases by Bosnia and Herzegovina (for emergency assistance) and by Zambia.

    Table II.9REPURCHASES FROM THE FUND, FINANCIAL YEAR ENDED APRIL 30, 1996(In millions of SDRs)
    MemberStand-By/

    Credit

    Tranche
    Extended

    Fund

    Facility
    Compensatory and

    Contingency Financing

    Facility
    Total

    Repurchases
    Albania22
    Algeria113113
    Argentina329329
    Barbados61117
    Bosnia and Herzegovina 11919
    Brazil4848
    Bulgaria16128190
    Cameroon44
    Chile 2176176
    Congo11
    Costa Rica131730
    Côte d’Ivoire43649
    Croatia33
    Dominican Republic52227
    Ecuador1616
    Egypt7474
    Estonia33
    Gabon102232
    Ghana1111
    Guyana1111
    Honduras82230
    Hungary 28129990469
    India412586999
    Israel8989
    Jamaica491866
    Jordan99
    Latvia53
    Lithuania44
    Macedonia, former Yugoslav Republic of11
    Mexico710710
    Mongolia77
    Morocco5050
    Nicaragua99
    Pakistan246185
    Panama161835
    Papua New Guinea55
    Philippines8639139264
    Poland 2640640
    Romania20076276
    Russia9090
    Slovak Republic6760127
    Slovenia22
    Sudan 135917
    Togo11
    Trinidad and Tobago2323
    Tunisia1313
    Uruguay99
    Venezuela304304
    Yugoslavia, Federal Republic of (Serbia/Montenegro) 311
    Zaïre 1639
    Zambia 18811691461,196
    Total3,5441,7271,4286,698

    Settlements of overdue repurchases amount to SDR 18 million for Bosnia and Herzegovina, SDR 17 million for Sudan, SDR 6 million for Zaïre, and SDR 542 million for Zambia.

    Voluntary advance repurchases were made by Chile (SDR 142 million), Hungary (SDR 392 million), and Poland (SDR 640 million).

    The Federal Republic of Yugoslavia (Serbia/Montenegro) has not yet completed arrangements for succession to the membership in the Fund of the former Socialist Federal Republic of Yugoslavia.

    Table II.10OUTSTANDING FUND CREDIT BY FACILITY AND POLICY, AT END OF FINANCIAL YEARS ENDED APRIL 30, 1990–96(In millions of SDRs and percent of total)
    1990199119921993199419951996
    In millions of SDRs
    Stand-by arrangements 19,9939,3239,46910,5789,48515,11720,700
    Extended arrangements8,2828,4408,6419,8499,56610,1559,982
    Compensatory and contingency financing facility3,8235,1425,3224,2083,7563,0211,602
    Systemic transformation facility2,7253,8483,984
    Subtotal (GRA)22,09822,90623,43224,63525,53232,14036,268
    SAF arrangements1,2931,3771,5001,4841,4401,2771,208
    ESAF arrangements 26721,1631,6462,2192,8123,3184,469
    Trust Fund32615815815810510295
    Total24,38825,60326,73628,49529,88936,83742,040
    In percent of total
    Stand-by arrangements 141363537324149
    Extended arrangements34333234322824
    Compensatory and contingency
    financing facility152020151284
    Systemic transformation facility9109
    Subtotal (GRA)91898786858786
    SAF arrangements5565533
    ESAF arrangements 235689911
    Trust Fund1111333
    Total100100100100100100100

    Includes outstanding first credit tranche and emergency purchases.

    Includes outstanding associated loans from the Saudi Fund for Development.

    Less than ½ of 1 percent of total.

    Table II.11ENHANCED STRUCTURAL ADJUSTMENT FACILITY, ESTIMATED VALUE OF CONTRIBUTIONS (COMMITMENTS AS OF APRIL 30, 1996)(In millions of SDRs)
    Subsidies (Grant or Grant Equivalent) 1Loans 2
    ContributorPrior to

    enlargement
    For

    enlargement 3
    TotalPrior to

    enlargement
    For

    enlargement 3
    Argentina3131
    Australia1515
    Austria432265
    Bangladesh11
    Belgium8547132
    Botswana33
    Canada13062193300200
    Chile55
    China1313100
    Colombia66
    Czech Republic1212
    Denmark492777
    Egypt1212100
    Finland4141
    France282250532800750
    Germany199199700700
    Greece251641
    Iceland314
    India1111
    Indonesia66
    Iran22
    Ireland66
    Italy15041192370210
    Japan4422647062,2002,150
    Korea508596528
    Luxembourg5712
    Malaysia351651
    Malta112
    Mexico3535
    Morocco88
    Netherlands8257138
    Norway2914439060
    Pakistan44
    Portugal66
    Singapore231639
    Spain343421667
    Sweden12952181
    Switzerland5846104200152
    Thailand131630
    Tunisia22
    Turkey99
    United Kingdom34078418
    United States14169210
    Uruguay22
    Other1616
    Saudi Arabia84 484 4200 4
    Subtotal (bilateral)2,422 51,3513,7735,1414,516
    OPEC Fund35 6
    SDA 7591591
    Total2,422 51,9424,3645,1414,551

    The amounts reported for grant contributions are the “as needed” equivalent of the resources committed, or implicit in loans or deposits at concessional interest rates. The calculations are based on actual interest rates through April 30, 1996 and an assumed rate of 6.0 percent a year thereafter. Grants committed in local currency are valued at April 30, 1996 exchange rates.

    Loan contributions are provided either at concessional interest rates or on the basis of weighted averages of market interest rates in the five currencies comprising the SDR basket.

    Some of the contributions listed are subject to parliamentary approval or completion of other internal procedures. A few contributions are to be confirmed.

    Corresponds to the associated borrowing agreement with the Saudi Fund for Development (SFD).

    The sum of individual contributions has been adjusted downward to take account of additional loan costs.

    The SDR equivalent of US$50 million valued at the exchange rate of April 30, 1996.

    Special Disbursement Account.

    Table II.12SUMMARY OF TRANSACTIONS AND OPERATIONS IN SDRs, FINANCIAL YEAR ENDED APRIL 30, 1996(In thousands of SDRs)
    ReceiptsTransfersInterest,Positions as at April 30, 1996
    MemberTotal

    Holdings

    April 30, 1995
    Receipts from

    Participants and

    Prescribed Holders
    Transfers to

    Participants and

    Prescribed Holders
    from the

    General

    Resources

    Account
    to the

    General

    Resources

    Account
    Charges,

    and

    Assessment

    (Net)
    HoldingsNet

    cumulative

    allocations
    Holdings as

    percent of

    cumulative

    allocations
    DesignatedOtherDesignatedOther
    Participants
    Afghanistan, Islamic State of642284–92626,703
    Albania2152,590140652,648789
    Algeria21,097129,176144,593189,266162,298–5,19527,452128,64021.3
    Angola10515110
    Antigua and Barbuda44
    Argentina597,393145,609790,817873,948517,4314,565313,267318,37098.4
    Armenia26130,5491,81463929,634
    Australia46,5606,829–19,43733,952470,5457.2
    Austria133,546212,880215,97714,922–1,529143,842179,04580.3
    Azerbaijan35450013,3931,8181212,440
    Bahamas, The947777–46310010,2301.0
    Bahrain11,07921822311,5206,200185.8
    Bangladesh38,597110,00046,8462,5151,076105,34247,120223.6
    Barbados7111,3202161,593–3542998,0393.7
    Belarus2,0981,85745,00051,6308,663942,016
    Belgium323,13350,90650,00019,142–7,377335,804485,24669.2
    Belize39812320541
    Benin236400–4202569,4092.5
    Bhutan4131619449
    Bolivia26,904684–2427,56426,703103.2
    Bosnia and Herzegovina 136,17436,17441,65234,008–3,5484,09620,48120.0
    Botswana25,79476699427,5544,359632.1
    Brazil4,97517,00012,8515,669–16,21612,941358,6703.6
    Brunei Darussalam35,25035,250
    Bulgaria2,527221,0003,468218,8675438,671
    Burkina Faso5,5455,6805,680177–1775,5459,40958.9
    Burundi175580770–61919913,6971.5
    Cambodia10,74014,00014,14431315–22310,08815,41765.4
    Cameroon3282,2252,6003,2501,8551,10524324,4631.0
    Canada899,832100,000225,00019,7382,698797,268779,290102.3
    Cape Verde39–27126201.9
    Central African Republic1707401146540–421949,3251.0
    Chad1319,0828,26086520–422979,4091.0
    Chile4,716148,0144,976147,547–5,4494,709121,9243.9
    China374,3891,00023,5386,531403,458236,800170.4
    Colombia116,8532,694136119,683114,271104.7
    Comoros2580112–30667169.2
    Congo134940130657–4391099,7191.1
    Costa Rica9571,4005181,469–1,06234423,7261.5
    Côte d’Ivoire2,0543,0002,2093,699–1,6391,92537,8285.1
    Croatia, Republic of 167,04033,5018869,99185292,28844,205208.8
    Cyprus158100737–87811819,4380.6
    Czech Republic791,0019166
    Denmark111,94638,88550,00011,909–3,068109,672178,86461.3
    Djibouti951125–50321,1782.7
    Dominica1056756722–2665921.0
    Dominican Republic65911,3131,56110,634–1,3791,52131,5854.8
    Ecuador2,84920,4762,19922,288–1,3801,85532,9295.6
    Egypt66,37720,0001,6226,059–3,17578,765135,92458.0
    El Salvador38525,267565990–58224,98324,985100.0
    Equatorial Guinea822452928–263635,8121.1
    Eritrea
    Estonia1,0494,9485592395,71513395
    Ethiopia145400213–49925911,1602.3
    Fiji7,462303267,7916,958112.0
    Finland193,918400,323404,8957,4123,120199,878142,690140.1
    France585,43135,00057,567–21,531656,4661,079,87060.8
    Gabon42124,6421,0641,55624,783–63114014,0911.0
    Gambia, The8674,2464,21766–2037595,12114.8
    Georgia1,42753415,00016,8072,98351836
    Germany1,281,274115,000199,430120,4974,2271,321,5671,210,760109.2
    Ghana12,66482,84659,7261,86915,113–2,22620,31562,98332.3
    Greece8351,2503,230–4,680635103,5440.6
    Grenada1098–41679307.2
    Guatemala11,179235–76210,65227,67838.5
    Guinea72014,58012,622131–7292,08017,60411.8
    Guinea-Bissau163121–55141,2121.2
    Guyana1,39215,9504,20044011,844–6091,12914,5307.8
    Haiti7051,4691,7791,379704–59747313,6973.5
    Honduras1,1242,1594662,368–85152919,0572.8
    Hungary11,916284,9466,605300,7341252,858
    Iceland195405196–7425416,4090.3
    India65,1351,065,00026,1821,119,166–29,1667,985681,1701.2
    Indonesia2,3592,0009,200–10,7962,763238,9561.2
    Iran, Islamic Republic of96,07855,0051,00062–6,731143,413244,05658.8
    Iraq68,464
    Ireland102,6776,038775109,48987,263125.5
    Israel4,35399,43087997,273–4,7622,627106,3602.5
    Italy94,04938,352137,98646,353–28,94011,827702,4001.7
    Jamaica11,0377,0002,67416,847–1,7412,12340,6135.2
    Japan2,463,240516,3641,369,214137,48857,4421,805,320891,690202.5
    Jordan47020,41416,9427,4077,992–6932,66416,88715.8
    Kazakstan67,521140,39313,5005,115199,529
    Kenya57928,45727,134893–1,6421,15336,9903.1
    Kiribati77
    Korea55,39716,276–58471,08972,91197.5
    Kuwait56,6415,8641,44763,95226,744239.1
    Kyrgyz Republic14,8594,1012162,2104399,204
    Lao People’s
    Democratic Republic6,8495,8653,723–1088,8839,40994.4
    Latvia1,9729,40050910,579391,342
    Lebanon11,60573234112,6784,393288.6
    Lesotho3057508718–1579673,73925.9
    Liberia21,007
    Libya331,12613,28812,689357,10258,771607.6
    Lithuania9,4528,56072212,1554587,036
    Luxembourg7,279722–4367,56516,95544.6
    Macedonia, former
    Yugoslav Republic of 13228368,80011,0302,094–3609348,37911.2
    Madagascar2676424494–87148419,2702.5
    Malawi1,2148,5708,679260641–43129310,9752.7
    Malaysia94,43412,952–1,893105,493139,04875.9
    Maldives3726–115328218.8
    Mali30645029610–70833415,9122.1
    Malta36,128149891,15238,28311,288339.2
    Marshall Islands
    Mauritania12011,67811,232186–4283249,7193.3
    Mauritius21,42523625921,92015,744139.2
    Mexico290,211253,0001,389,3891,171,74115,053775,912290,020267.5
    Micronesia,
    Federated States of87740917
    Moldova13,1995437,0815157,175
    Mongolia5866,800121657,06026297
    Morocco7,23124,96320,0432,6913,260–3,5248,05785,6899.4
    Mozambique31133
    Myanmar6641,70080–1,96547943,4741.1
    Namibia12112
    Nepal119200219–3651738,1052.1
    Netherlands513,378553,540546,41233,8541,572555,933530,340104.8
    New Zealand1874,7502,033–6,388581141,3220.4
    Nicaragua2469,978100809,069–87725819,4831.3
    Niger2,2317,7507,554473560–3511,9909,40921.2
    Nigeria504,2283,090–7,095273157,1550.2
    Norway287,742540,893595,46822,3385,207260,713167,770155.4
    Oman6,5131,427327,9726,262127.3
    Pakistan10,47213,507174,000193,47927,346–7,5458,567169,9895.0
    Panama9,42738,25029,00030,24039,006–1,0018,90926,32233.9
    Papua New Guinea2556004,7105,7601,023–4134709,3005.1
    Paraguay68,3854482,51471,34713,697520.9
    Peru1,15029,5906,61832,381–4,07690191,3191.0
    Philippines33,618258,0009,501295,371–4,1851,563116,5951.3
    Poland823653,8005,670657,9911122,413
    Portugal50,27310,354–760,62153,320113.7
    Qatar20,2251,06135321,63912,822168.8
    Romania24,456228,80642,950291,031–2,7552,42675,9503.2
    Russia199,4632,049,3222,323,216336,2853,404140,476
    Rwanda1,6501354412,434146–36913,66113,69799.7
    St. Kitts and Nevis
    St. Lucia1,370291,399742188.5
    St. Vincent and the
    Grenadines847–127835422.0
    San Marino127677201
    São Tomé and Príncipe820883–2610762017.3
    Saudi Arabia424,37624,63010,818459,824195,527235.2
    Senegal2,99131,10029,8415811,558–9092,36524,4629.7
    Seychelles1821–18214065.2
    Sierra Leone6,04813,05613,450313–5665,40117,45530.9
    Singapore25,8611,6007,30957735,34716,475214.6
    Slovak Republic20,950122,0002,192145,086906961
    Slovenia 14662,3955341,976–1,14527325,4311.1
    Solomon Islands121017–29106541.5
    Somalia13,697
    South Africa12,81534,0003,65430,958–9,7629,749220,3604.4
    Spain254,56735,769–1,631288,705298,80596.6
    Sri Lanka1,21230,30028,8301,339–3,12789470,8681.3
    Sudan11,6149,247–2,36752,192
    Suriname977,750172–3107,7107,75099.5
    Swaziland5,89250–255,9176,43292.0
    Sweden206,904574,025532,77314,990–15263,132246,525106.7
    Switzerland24,891702,559617,05826,1144,661141,167
    Syrian Arab Republic4601,195–1,65436,564
    Tajikistan
    Tanzania3881,099272–1,41933931,3721.1
    Thailand24,3941,20211,921–2,61334,90584,65241.2
    Togo27822,12021,72017353–48531310,9752.9
    Tonga504500381052
    Trinidad and Tobago1,6102,5001,0862,186–2,07293846,2312.0
    Tunisia22,63515,5042,34023,618–90615,95534,24346.6
    Turkey6,08111,000137,500151,82019,232–4,9197,251112,3076.5
    Turkmenistan
    Uganda94430,09528,977269–1,2611,07029,3963.6
    Ukraine117,638315,000317,01337,9464,74486,449
    United Arab Emirates55,2151,06575257,03338,737147.2
    United Kingdom298,306642,664625,33235,099–73,927276,8111,913,07014.5
    United States7,465,479126,248468,262323,112114,1437,560,7194,899,530154.3
    Uruguay98712,08493210,474–2,2361,29349,9772.6
    Uzbekistan6101,42755,00056,3363,3281660
    Vanuatu2356712313
    Venezuela316,941369,88016,202374,898221328,346316,890103.6
    Vietnam8,6481,5004157996,699–1,8951,93847,6584.1
    Western Samoa2,00622402,0681,142181.1
    Yemen, Republic of32,93531,26218,3081445454245,53028,743158.4
    Yugoslavia, Federal Republic of (Serbia/Montenegro) 156,665
    Zaire16,43510,107–3,9202,40786,3092.8
    Zambia8,9491,388,562861,185692,9661,219,079–2,9967,21868,29810.6
    Zimbabwe2,9877,1009267,922–4182,67210,20026.2
    Total participants19,473,22811,082,58511,111,2177,859,3937,626,748-92,03719,585,20421,433,33091.4
    Prescribed holders
    Arab Monetary Fund53,983101,374131,0021,90926,264
    Bank of Central
    African States1,8627,9948,114281,771
    Bank for International
    Settlements942,922393,888335,07340,1631,041,900
    East African
    Development Bank1557163
    Eastern Caribbean
    Central Bank1,910881,997
    International Bank for
    Reconstruction and
    Development2,2681042,372
    Islamic Development Bank2,2421032,345
    Nordic Investment Bank41743417
    Total prescribed holders1,005,759503,256474,62342,4191,076,810
    General Resources
    Account1,000,6557,626,7487,859,39356,718824,728
    Total21,479,64219,212,58919,445,2337,859,3937,626,7487,10021,486,74221,433,330

    The assets and liabilities of the former Socialist Federal Republic of Yugoslovia were assumed by five successor states. As of April 30, 1996, the Federal Republic of Yugoslavia (Serbia/Montenegro) had not completed arrangements for succession to membership in the Fund.

    Table II.13HOLDINGS OF SDRs BY ALL PARTICIPANTS AND BY GROUPS OF COUNTRIES AS PERCENT OF THEIR CUMULATIVE ALLOCATIONS OF SDRs AND OF THEIR NON-GOLD RESERVES, AT END OF FINANCIAL YEARS ENDED APRIL 30, 1972–96
    Developing Countries
    Net debtor countries
    Financial YearAll

    Participants 1
    Industrial

    Countries
    All

    developing

    countries
    Net

    creditor

    countries
    All net

    debtor

    countries
    With recent

    debt-servicing

    problems 2
    Without recent

    debt-servicing

    problems 2
    Holdings of SDRs as percent of cumulative allocations
    197290.2100.064.4100.064.462.168.2
    197393.4105.760.8100.060.857.166.8
    197494.6106.264.3100.064.361.468.9
    197594.5106.563.1100.063.164.061.5
    197695.1108.459.8100.059.859.660.1
    197791.7105.754.9100.054.955.853.4
    197885.395.658.1100.058.059.755.3
    197990.397.074.5100.073.871.177.9
    198091.996.881.0176.477.371.186.0
    198174.681.060.8154.755.953.858.7
    198274.681.959.1154.054.246.165.0
    198379.995.147.4267.635.922.154.3
    198469.980.447.3224.638.123.058.2
    198578.595.242.8218.333.621.250.2
    198687.3105.349.0233.639.426.256.9
    198790.8110.049.9236.640.223.262.8
    198896.3115.854.4262.043.632.558.4
    198993.1116.343.5240.233.319.451.8
    199097.2121.944.4262.933.015.356.6
    199196.8120.745.9193.938.126.953.1
    199296.8121.244.6200.136.530.145.0
    199363.073.141.6166.635.132.238.9
    199471.077.956.3222.547.750.943.5
    199590.9105.160.4263.849.853.544.8
    199691.4102.467.9285.556.658.554.1
    Holdings of SDRs as percent of non-gold reserves
    19728.99.37.29.06.422.1
    19737.88.75.06.14.610.5
    19747.29.23.64.33.66.0
    19756.08.92.43.43.13.9
    19765.48.32.03.02.83.2
    19774.47.41.42.12.21.9
    19783.55.31.41.92.11.6
    19794.65.82.90.53.43.53.4
    19805.67.13.51.44.14.14.0
    19814.86.22.91.33.63.63.6
    19825.36.93.01.33.73.83.6
    19835.37.22.32.32.32.12.4
    19844.25.62.02.12.01.82.1
    19854.46.31.61.91.61.41.7
    19865.06.72.02.41.92.01.9
    19874.75.72.02.81.82.01.7
    19884.45.12.03.41.82.81.4
    19893.94.71.53.31.21.91.0
    19903.84.61.55.01.11.21.1
    19913.54.31.33.31.11.60.9
    19923.24.41.03.40.91.40.6
    19932.22.80.93.20.81.30.6
    19942.12.71.14.80.91.80.5
    19952.63.51.15.20.92.10.5
    19962.12.91.04.60.81.50.5

    Consists of member countries that are participants in the SDR Department. At the end of financial year 1996, of the total SDRs allocated to participants in the SDR Department (SDR 21.4 billion), SDR 1.9 billion was not held by participants but instead by the Fund and prescribed holders.

    Countries with recent debt-servicing problems are those that have incurred external payments arrears or rescheduled their debts during the period 1991-95.

    Table II.14KEY IMF RATES, FINANCIAL YEAR ENDED APRIL 30, 1996(In percent)
    Period

    Beginning
    SDR Interest

    Rate and

    Unadjusted Rate of

    Remuneration 1
    Basic Rate

    of Charge 1
    Period

    Beginning
    SDR Interest

    Rate and

    Unadjusted Rate of

    Remuneration 1
    Basic Rate

    of Charge 1
    1995
    May 14.824.94November 64.364.47
    May 84.734.85November 134.314.42
    May 154.754.87November 204.244.35
    May 224.694.81November 274.204.31
    May 294.674.79December 44.164.26
    June 54.564.67December 114.204.31
    June 124.614.73December 184.124.22
    June 194.574.68December 253.964.06
    June 264.524.631996
    July 34.584.69January 13.974.07
    July 104.424.53January 84.154.25
    July 174.454.56January 154.124.22
    July 244.464.57January 224.004.10
    July 314.414.52January 294.014.11
    August 74.404.51February 53.924.02
    August 144.454.56February 123.883.98
    August 214.474.58February 193.893.99
    August 284.344.45February 263.944.04
    September 44.344.45March 43.924.02
    September 114.284.39March 113.893.99
    September 184.294.40March 183.954.05
    September 254.224.33March 253.944.04
    October 24.284.39April 13.934.03
    October 94.314.42April 83.954.05
    October 164.324.43April 153.914.01
    October 234.384.49April 223.863.96
    October 304.434.54April 293.883.98

    The rate of remuneration is adjusted downward and the basic rate of charge is adjusted upward to share the burden of protecting the Fund’s income from overdue charges and of contributing to the Fund’s precautionary balances. These burden-sharing amounts are refundable when overdue charges are-paid and when overdue obligations cease to be a problem. The basic rate of charge presented is the one in effect before the retroactive reduction that took effect after the end of the financial year. The basic rate of charge, which was set at 102.5 percent of the SDR interest rate, was reduced to 101.7 percent of the SDR interest rate after the retroactive reduction.

    Table II.15MEMBERS THAT HAVE ACCEPTED THE OBLIGATIONS OF ARTICLE VIII, SECTIONS 2, 3, AND 4 OF THE ARTICLES OF AGREEMENT
    MemberEffective Date

    of Acceptance
    MemberEffective Date

    of Acceptance
    Antigua and BarbudaNovember 22, 1983MalawiDecember 7, 1995
    ArgentinaMay 14, 1968MalaysiaNovember 11, 1968
    AustraliaJuly 1, 1965MaltaNovember 30, 1994
    AustriaAugust 1, 1962Marshall IslandsMay 21, 1992
    Bahamas, TheDecember 5, 1973MauritiusSeptember 29, 1993
    BahrainMarch 20, 1973MexicoNovember 12, 1946
    BangladeshApril 11, 1994Micronesia, Federated States ofJune 24, 1993
    BarbadosNovember 3, 1993MoldovaJune 30, 1995
    BelgiumFebruary 15, 1961MongoliaFebruary 1, 1996
    BelizeJune 14, 1983MoroccoJanuary 21, 1993
    BoliviaJune 5, 1967NepalMay 30, 1994
    BotswanaNovember 17, 1995NetherlandsFebruary 15, 1961
    Brunei DarussalamOctober 10, 1995New ZealandAugust 5, 1982
    CanadaMarch 25, 1952NicaraguaJuly 20, 1964
    ChileJuly 27, 1977NorwayMay 11, 1967
    Costa RicaFebruary 1, 1965OmanJune 19, 1974
    CroatiaMay 29, 1995PakistanJuly 1, 1994
    CyprusJanuary 9, 1991PanamaNovember 26, 1946
    Czech RepublicOctober 1, 1995Papua New GuineaDecember 4, 1975
    DenmarkMay 1, 1967ParaguayAugust 22, 1994
    DjiboutiSeptember 19, 1980PeruFebruary 15, 1961
    DominicaDecember 13, 1979PhilippinesSeptember 8, 1995
    Dominican RepublicAugust 1, 1953PolandJune 1, 1995
    EcuadorAugust 31, 1970PortugalSeptember 12, 1988
    El SalvadorNovember 6, 1946QatarJune 4, 1973
    EstoniaAugust 15, 1994St. Kitts and NevisDecember 3, 1984
    FijiAugust 4, 1972St. LuciaMay 30, 1980
    FinlandSeptember 25, 1979St. Vincent and the GrenadinesAugust 24, 1981
    FranceFebruary 15, 1961San MarinoSeptember 23, 1992
    Gambia, TheJanuary 21, 1993Saudi ArabiaMarch 22, 1961
    GermanyFebruary 15, 1961SeychellesJanuary 3, 1978
    GhanaFebruary 21, 1994Sierra LeoneDecember 14, 1995
    GreeceJuly 7, 1992SingaporeNovember 9, 1968
    GrenadaJanuary 24, 1994Slovak RepublicOctober 1, 1995
    GuatemalaJanuary 27, 1947SloveniaSeptember 1, 1995
    GuineaNovember 17, 1995Solomon IslandsJuly 24, 1979
    GuyanaDecember 27, 1966South AfricaSeptember 15, 1973
    HaitiDecember 22, 1953SpainJuly 15, 1986
    HondurasJuly 1, 1950Sri LankaMarch 15, 1994
    HungaryJanuary 1, 1996SurinameJune 29, 1978
    IcelandSeptember 19, 1983SwazilandDecember 11, 1989
    IndiaAugust 20, 1994SwedenFebruary 15, 1961
    IndonesiaMay 7, 1988SwitzerlandMay 29, 1992
    IrelandFebruary 15, 1961ThailandMay 4, 1990
    IsraelSeptember 21, 1993TongaMarch 22, 1991
    ItalyFebruary 15, 1961Trinidad and TobagoDecember 13, 1993
    JamaicaFebruary 22, 1963TunisiaJanuary 6, 1993
    JapanApril 1, 1964TurkeyMarch 22, 1990
    JordanFebruary 20, 1995UgandaApril 5, 1994
    KenyaJune 30, 1994United Arab EmiratesFebruary 13, 1974
    KiribatiAugust 22, 1986United KingdomFebruary 15, 1961
    KoreaNovember 1, 1988United StatesDecember 10, 1946
    KuwaitApril 5, 1963UruguayMay 2, 1980
    Kyrgyz RepublicMarch 29, 1995VanuatuDecember 1, 1982
    LatviaJune 10, 1994VenezuelaJuly 1, 1976
    LebanonJuly 1, 1993Western SamoaOctober 6, 1994
    LithuaniaMay 3, 1994ZimbabweFebruary 3, 1995
    LuxembourgFebruary 15, 1961
    Table II.16EXCHANGE RATE ARRANGEMENTS AS OF MARCH 31, 1996
    Pegged
    Single currencyCurrency composite
    U.S. dollarFrench francOtherSDROther
    Antigua and BarbudaBeninBhutan (Indian rupee)Libyan ArabBangladesh
    ArgentinaBurkina FasoBosnia and HerzegovinaJamahiriya 1,2Botswana
    Bahamas, The 2Cameroon(deutsche mark)MyanmarBurundi
    BarbadosCentral African Republic-Brunei DarussalamSeychellesCape Verde
    BelizeChad(Singapore dollar)Cyprus 3
    Estonia (deutsche mark)
    DjiboutiComorosKiribati 4 (Australian dollar)Czech Republic 5
    DominicaCongoLesotho (South African rand)Fiji
    GrenadaCôte d’IvoireNamibia (South African rand)Iceland 6
    IraqEquatorial GuineaJordan
    San Marino 4 (Italian lira)
    LiberiaGabonKuwait
    Swaziland (South African rand)
    LithuaniaMaliMalta
    Marshall Islands 4NigerMorocco 7
    Micronesia, FederatedSenegalNepal
    States of 4TogoSlovak Republic 7
    Nigeria 2Solomon Islands
    OmanThailand
    Panama 4Tonga
    St. Kitts and NevisVanuatu
    St. LuciaWestern Samoa
    St. Vincent and the
    Grenadines Syrian Arab Republic2
    Venezuela
    Table II.16 (concluded)
    Flexibility Limited vis-à-visMore Flexible
    a Single Currency or

    Group of Currencies
    Adjusted

    according

    to a set of

    indicators
    Other

    managed

    floating
    Independently floating
    Single currency 8Cooperative arrangements 9
    Bahrain 10AustriaChiles 2,, 11AlgeriaAfghanistan, Islamic State of 2Mozambique
    Qatar 10BelgiumNicaraguaAngola 2New 1 Zealand
    Saudi Arabia 10DenmarkBelarusAlbaniaPapua New Guinea
    United ArabFranceBrazilArmeniaParaguay
    Emirates 10GermanyCambodiaAustraliaPeru
    IrelandChinaAzerbaijanPhilippines
    Colombia
    LuxembourgCosta RicaBoliviaRomania
    NetherlandsCroatiaBulgariaRwanda
    PortugalDominican Republic 2CanadaSão Tomé, and
    SpainEcuadorEthiopiaPríncipe 2
    FinlandSierra Leone
    Egypt
    El SalvadorGambia, TheSomalia 2
    Eritrea 2GhanaSouth Africa
    GeorgiaGuatemalaSudan 2
    GreeceGuineaSweden
    Guinea-BissauGuyanaSwitzerland
    Honduras 2
    Hungary 12HaitiTajikistan
    IndonesiaIndiaTanzania
    Iran, Islamic Republic ofItalyTrinidad and
    JamaicaTobago
    Israel 13
    Kyrgyz RepublicJapanUganda
    Korea LatviaKazakstan KenyaUnited Kingdom United States
    Macedonia, former Yugoslav Republic ofLao People’sYemen 2
    Democratic Rep.Zaire 2
    MalaysiaLebanonZambia 2
    Maldives MauritiusMadagascarZimbabwe
    NorwayMalawi
    Pakistan 2Mauritania
    Poland 13Mexico
    RussiaMoldova
    SingaporeMongolia
    Slovenia
    Sri Lanka
    Suriname
    Tunisia
    Turkey
    Turkmenistan
    Ukraine
    Uruguay
    Uzbekistan
    Vietnam

    The exchange rate is maintained within margins of ±47 percent.

    Member maintains exchange arrangements involving more than one exchange market. The arrangement shown is that maintained in the major market.

    The exchange rate, which is pegged to the European currency unit (ECU), is maintained within margins of ±2.25 percent.

    Country uses peg currency as legal tender.

    The exchange rate is maintained within margins of ±7.5 percent.

    The exchange rate is maintained within margins of ±6 percent.

    The exchange rate is maintained within margins of ±3 percent.

    In all countries listed in this column, the U.S. dollar was the currency against which exchange rates showed limited flexibility.

    This category consists of countries participating in the exchange rate mechanism (ERM) of the European Monetary System (EMS). In each case, the exchange rate is maintained within a margin of ±15 percent around the bilateral central rates aginst other participating currencies, with the exception of Germany, and the Netherlands, in which case the exchange rate is maintained within a margin of ±2.25 percent.

    Exchange rates are determined on the basis of a fixed relationship to the SDR, within margins of up to ±7.25 percent. However, because of the maintenance of a relatively stable relationship with the U.S. dollar, these margins are not always observed.

    The exchange rate is maintained within margins of ±10 percent on either side of a weighted composite of the currencies of the main trading partners.

    The exchange rate is maintained within margins of ±2.25 percent with regard to the currency basket.

    The exchange rate is maintained within margins of ±7 percent with regard to the currency basket.

    appendix III Relations with Other International Organizations

    The challenges of a globalized economy have further strengthened the Fund’s close relations with international and regional institutions sharing similar responsibilities, interests, and goals. Because vital issues in international monetary, financial, social, and environmental matters call for stronger international cooperation, the staff of the Fund worked closely during the past year with other organizations in achieving their common objectives. These organizations include the United Nations and its specialized agencies, the World Bank, the World Trade Organization (WTO), the Organization for Economic Cooperation and Development (OECD), the European Commission, the Bank for International Settlements (BIS), and regional development banks.

    The three offices of the Fund located away from headquarters maintain close ties with these international and regional institutions. In addition to monitoring developments at the United Nations, the Director of the Fund Office at the UN and Special Representative to the UN is responsible for maintaining and broadening the collaborative relationship with the UN and its specialized agencies. The Office in Europe, which is located in Paris, maintains close working relations with the BIS, the European Commission, the European Monetary Institute, and the OECD and also provides support to the work of the Group of Ten. The functions of the Geneva Office include monitoring, analyzing, and reporting on the activities of institutions such as the WTO, the UN Conference on Trade and Development (UNCTAD), and other Geneva-based socioeconomic agencies and working closely with the Paris Office to ensure appropriate coverage of trade-related OECD activities. The Geneva Office is also involved in strengthening relations with the International Labor Organization (ILO), especially in light of the ILO’s increased involvement in employment matters, structural adjustment, social issues, and in other areas of interest to the Fund. In addition to attendance at meetings, some of the liaison activities of these offices include participation in seminars and expert groups and the exchange of information and documents. The Offices also coordinate with staff and technical experts from headquarters who provide operational linkages and supplement the work of these offices when necessary.

    The importance of promoting regional economic development as a signficant factor in sustaining growth in the world economy is underscored by the Fund’s continual collaboration with the various regional development banks such as the African Development Bank (AfDB), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD), and the Inter-American Development Bank (IDB). Cooperation in economic and financial fields includes consultations on issues and implementation of policies, release of documents to facilitate the exchange of information on country operations, staff visits, and attendance at meetings. In addition. Fund staff regularly attend meetings, seminars, and forums sponsored by other regional, economic, and financial organizations in Africa, Asia and the Pacific, Latin America and the Caribbean, and the Middle East.

    In achieving the objectives stated in their respective Articles of Agreement, the Fund and the World Rank continue to sustain the close collaboration that both institutions have enjoyed for over fifty years. Cooperation between the Fund and the Bank includes the regular exchange of information and documents, joint participation in missions, and attendance at each other’s Executive Board meetings and seminars. Over the past year, staff of both institutions have further enhanced collaboration by the joint preparation of papers on debt and on public expenditure issues in conjunction with work on social, environmental, and developmental policies. Aid coordination meetings and donors’ conferences held under the auspices of the World Bank are attended by Fund staff on a regular basis.

    During the period under review, staff of the Fund and WTO made considerable progress in reaching mutual understanding on the general framework and modalities of the proposed cooperation agreement between the two institutions. Some specific elements of the agreement include consultations between the Fund and WTO in achieving greater coherence in global economic policymaking, attendance by each institution at certain meetings of the other, exchange of information and databases, and access to documents. The Fund also continued its participation in consultations of the WTO Committee on Balance of Payments Restrictions under existing procedures. Discussions and consultations with the WTO—at the levels of both staff and heads of institutions—are continuing on various aspects of the cooperative process, with the objective of maintaining a close relationship between the Fund and WTO.

    Since its inception in September 1992, the Joint Vienna Institute has provided policy-oriented training in market economies and market mechanics to officials from countries of central and eastern Europe as well as from former centrally planned economies in Asia. To this end, the Joint Vienna Institute offers a wide variety of courses in economic and financial management and administration. The Fund, as a sponsoring institution, has been actively participating in its activities and has continued to be the main provider of training at the Joint Vienna Institute’s facilities. Other sponsors are the BIS, the EBRD, the OECD, and the World Bank.

    The Managing Director’s active participation in conferences, meetings, and seminars of various international and regional organizations has helped to strengthen the close ties between the Fund and these institutions. He held discussions with the Secretary-General of the UN in June and September 1993. On July 6, he delivered a speech at the High-Level Segment of the UN Economic and Social Council (ECOSOC) in Geneva and, on November 6, held an exchange of views with the members of ECOSOC at an informal meeting in New York, In April 1996, the Managing Director mended the UNCTAD meeting in Johannesburg, South Africa, and the annual session of the UN Administrative Committee for Coordination (ACC) in Nairobi, Kenya, where he also held a meeting with the UN Secretary-General. He addressed the International Finance Corporation (IFC) meeting for representatives of cofinancing institutions in Washington on May 18, 1995. The Managing Director addressed the IDB and the Group of Thirty at a conference on banking crises in Latin America in Washington on October 6, 1995 and, in November 1995, attended the BIS central bank governors’ meeting in Basle. In February 1996, he attended a conference at the European Commission.

    appendixIV External Relations

    During the 1995/96 financial year the Fund remained in the foreground of international attention through its activities in support of members in the after math of the Mexican financial crisis; its support of the economies in transition, especially Russia and Ukraine; and its assistance to members—notably Bosnia and Herzegovina—emerging from prolonged conflict. Efforts to contain the spillover effects from the Mexican crisis and the subsequent development of the Special Data Dissemination Standard (SDDS) as part of the Fund’s response; the ongoing debate about the Fund’s role in the globalization of capital markets; continuing discussions on the Eleventh General Review of Quotas and the proposed enlargement of the General Arrangements to Borrow (GAR); and the search for a solution to the burdens faced by the highly indebted poor countries—all served to focus unprecedented public attention on the Fund. In response to these growing demands, the Fund continued to expand its efforts to explain its work and policies to an ever-increasing international audience through contacts with the media, parliamentarians, and nongovernmental organizations and through its publications and the Internet.

    Information and Public Affairs

    In both national and international forums, the Managing Director, the Deputy Managing Directors, and other senior staff delivered speeches on a broad range of domestic, regional, and global economic and financial issues. To supplement these efforts, the Managing Director held press conferences both at headquarters and overseas. To further the Fund’s interests in greater openness regarding its operations, management and senior staff gave an increasing number of interviews to a broad spectrum of the media, both print and electronic. At the same time, Fund staff delivered papers to, and participated in, a wide range of seminars, conferences, and symposiums. To increase the knowledge of the media about the mandate and operations of the Fund, regional and special informational seminars for journalists and nonofficials—some in collaboration with other international or regional financial institutions—were held in Azerbaijan, Belarus, Bulgaria, Namibia, Panama, Russia, Senegal, Ukraine, Vietnam, and Zimbabwe.

    The Fund’s interactions with the international news media continued to increase during the financial year. Management and senior staff actively developed these contacts through press conferences, interviews, and briefings—both at headquarters and in the field—to explain major issues and developments. By the end of the financial year, more than 325 staff members had taken media training courses to prepare themselves for press relations at headquarters and in member countries.

    During 1995/96 the Fund also intensified its dialogue and educational effort, in the United States and abroad, with nongovernmental organizations, parliaments (with special emphasis on the U.S. Congress), research institutes, private sector businesses, religious groups, universities, and labor unions. To that end, economic forums, international seminars, and briefings were organized at Fund headquarters for representatives of these groups and the general public. Public affairs missions were conducted in the Baltic countries, Belarus, Bulgaria, Trinidad and Tobago, and Zimbabwe. In response to the growing demand for information on the Fund and its policies and activities—during the financial year more than 10,000 such requests were received by telephone or in writing—a series of fact sheets on the most frequently asked questions about the Fund, in addition to the press releases and news briefs issued regularly to the media, was prepared for distribution to the general public.

    To expand the public’s access to information about its activities and functions, the Fund maintained the Internet gopher site that it opened in 1995. Studies progressed to develop a public World Wide Web site, as well as an internal Web (“Intranet”) site to enhance information sharing among Fund departments and between Fund and World Bank staff.

    Publications

    The greater intensity of the Fund’s other external relations activities during the financial year was met by an expansion of effort to make Fund publications more readily available to the international public.

    With the acute interest in country and regional economic developments—some having systemic implications for the global economy—shown during the financial year, the country coverage of the Fund’s publications increased. One hundred and thirty-six IMF Staff Country Reports, comprising background papers prepared in connection with the Fund’s Article IV consultations with member countries, were issued in 1995/96, compared with 46 in 1994/95. In addition, 7 of the 11 volumes published in the Occasional Paper series in 1995/96 had a regional or country-specific focus. The 1995 Annual Report was redesigned and continued the expanded coverage of Fund policies and country developments that was begun in 1994, and the biannual (May and October) World Economic Outlook also continued its reporting of key international, regional, and country-specific economic developments and trends. In addition to the coverage of the global economy in the World Economic Outlook, other volumes in the series of World Economic and Financial Surveys—International Capital Markets, Private Market Financing for Developing Countries, and Official Financing for Developing Countries—provided in-depth analyses of events affecting capital flows, emerging markets, and the heavily indebted poor countries.

    The Fund published ten books in English on various economic and financial issues during the financial year, four of them on regional or country-specific topics. Of particular interest was the publication of International Monetary Cooperation Since Bretton Woods, by historian Harold James, which the Fund commissioned to mark its fiftieth anniversary. Staff Papers, the Fund’s quarterly economic journal, also commemorated the fiftieth anniversary by a special section, “Celebrating Fifty Years of the International Monetary Fund,” in the December 1995 issue. In the Working Papers and Papers on Policy Analysis and Assessment series, 130 and 7 papers, respectively, were issued during the financial year, and plans were approved to develop from these documents a new series to highlight research that merited wider dissemination.

    During the financial year, the IMF Survey, the Fund’s biweekly newsletter featuring articles on Fund policies and activities and global economic and financial developments, expanded its coverage of country and staff Working Paper analyses, dedicated an expanded issue to the March 1996 seminar on the future of the SDR, and continued its regular interviews with senior Fund officials. The annual IMF Survey Supplement on the IMF was streamlined to give greater prominence to the technical assistance activities of the Fund and was made available in Arabic, German, and Russian in addition to the regular English, French, and Spanish editions. The monthly IMF Memorandum for the press, which highlights key indicators from the Fund’s major statistical publications, was expanded and redesigned.

    Efforts continued to explore the potential of the Internet and other advanced technology to serve the Fund’s informational interests, including promotion of its publications. As well as speeches by management, country reports, and information briefs, the full text of Finance and Development, the quarterly periodical published jointly by the Fund and the World Bank, was made available on the Internet (address: http://www.worldbank.org/fandd). In addition, the IMF Survey introduced on the Internet a recurring listing of recent Fund publications and information. Development continued toward making Balance of Payments and Direction of Trade databases available on CD-ROM.

    In addition to the annual Catalog of Publications, new monthly listings of Fund publications were made available in booklet and electronic form. Possibilities for copublishing in Arabic were explored with publishers in the Middle East. Contacts with international distributors of Fund publications were strengthened and actively developed by enlisting distributors in Argentina, Greece, Russia, Sweden, Switzerland, and Turkey. Fund publications were represented at major international book fairs held during the financial year. Special efforts were made to expand the reach of Fund publications in the transition economies. To guide the Fund’s publication effort in reaching the widest possible audience, a marketing plan for publications covering 1995–97 was completed and endorsed by Fund management. Notable features of the plan include measures to improve order fulfillment and customer servcie through a new external vendor and the retraining and redeployment of existing staff.

    A complete list of publications issued during the financial year appears in Table IV.1.

    Table IV.1PUBLICATIONS ISSUED, FINANCIAL YEAR ENDED APRIL 30, 1996
    Reports and Other Documents



    Annual Report of the Executive Board for the Financial Year Ended April 30, 1995



    (English, French, German, and Spanish). Free.



    Exchange Arrangements and Exchange Restrictions, Annual Report 1995



    $70.00 ($35.00 to full-time university faculty members and students).



    Selected Decisions of the International Monetary Fund and Selected Documents, Twentieth Issue



    (English). Free.



    Summary Proceedings of the Fiftieth Annual Meeting of the Board of Governors (1995). Free.



    Summary Proceedings of the Forty-Ninth Annual Meeting of the Board of Governors (1994). Free.
    Periodic Publications



    Balance of Payments Statistics Yearbook



    Vol. 46. A two-part yearbook. $56.00 a year.



    Direction of Trade Statistics



    Quarterly, with yearbook. $96.00 a year. $48.00 to full-time university faculty members and students. $30.00 for year book only.



    Government Finance Statistics Yearbook



    Vol. 19, 1995 (Introduction and titles of lines in English, French, and Spanish). $54.00.



    International Financial Statistics



    Monthly, with yearbook (English, French, and Spanish). $218.00 a year. $109.00 to full-time university faculty members and students. $30.00 for yearbook only.



    Staff Papers



    Four times a year. $50.00 a year. $25.00 to full-time university faculty members and students.
    The five publications listed above may be obtained at a special rate of $330.00 ($165.00 to full-time university faculty members and students). Magnetic tape subscriptions to Balance of Payments Statistics Yearbook, Direction of Trade Statistics, Government Finance Statistics Yearbook, and International Financial Statistics are also available. International Financial Statistics are also available on CD-ROM. Price information is available on request.



    The IMF Committee on Balance of Payments Statistics, Annual Report, 1995.



    Finance and Development



    Issued jointly with the World Bank; quarterly (English, Arabic, Chinese, French, German, Portuguese, and Spanish). Free. Airspeed delivery, $20.00.







    IMF Survey



    Twice monthly, but only once in December (English, French, and Spanish). Private firms and individuals are charged at an annual rate of $79.00.
    Occasional Papers



    No. 125. United Germany: The First Five Years—Performance and Policy Issues, by Robert Corker, Robert A. Feldman, Karl Habermeier, Hari Vittas, and Tessa van der Willigen.







    No. 126. The Adoption of Indirect Instruments of Monetary Policy, by a staff team headed by William E. Alexander, Tómas J.T. Balino, and Charles Enoch.



    No. 127. Road Maps of the Transition: The Unities, the Czech Republic, Hungary, and Russia, by Biswajit Banerjee, Vincent Koen, Thomas Krueger, Mark S. Lutz, Michael Marrese, and Tapio O. Saavalainen.



    No. 128. IMF Conditionality: Experience Under Stand-By and Extended Arrangements. Part I: Key Issues and Findings, by Susan Schadler, Adam Bennett, Maria Carkovic, Louis Dicks-Mireaux, Mauro Mecagni, James H.J. Morsink, and Miguel A. Savastano.



    No. 129. IMF Conditionality: Experience Under Stand-By and Extended Arrangements. Part II: Background Papers, by Susan Schadler (editor), with Adam Bennett, Maria Carkovic, Louis Dicks Mireaux, Mauro Mecagni, James H.J. Morsink, and Miguel A. Savastano.



    No. 130. Challenges to the Swedish Welfare State, by Desmond Lachman, Adam Bennett, John H. Green, Robert Hagemann, and Ramana Ramaswamy.



    No. 131. Capital Account Convertibility: Review of Experience and Implications for IMF Policies, by staff teams headed by Peter J. Quirk and Owen Evans.



    No. 132. Financial Fragilities in Latin America: The 1980s and 1990s, by Liliana Rojas-Suarez and Steven R. Weisbrod. No. 133. Policy Experiences and Issues in the Baltics, Russia, and Other Countries of the Former Soviet Union, edited by Daniel A. Citrin and Ashok K. Lahiri.



    No. 134. India: Economic Reform and Growth, by Ajai Chopra, Charles Collyns, Richard Hemming, and Karen Parker, with Woosik Chu and Oliver Fratzscher.



    No. 135. Vietnam: Transition to a Market Economy, by John R. Dodsworth, Erich Spitäller, Michael Braulke, Keon Hyok Lee, Kenneth Miranda, Christian Mulder, Hisanobu Shishido, and Krishna Srinivasan.



    Occasional Papers Nos. 80–86 are available for $10.00 each, with a special price of $7.50 each to full-time university faculty members and students, and Nos. 87—135 are $15.00 each, with a special price of $12.00 each to full-time university faculty members and students.



    World Economic and Financial Surveys



    World Economic Outlook: A Survey by the Staff of the International Monetary Fund



    Twice a year (May and October) (Arabic, English, French, and Spanish).



    $34.00 ($23.00 to full-time university-faculty members and students).



    International Capital Markets: Developments, Prospects, and Policy Issues



    By a staff team led by David Folkerts-Landau and Takatoshi Ito. $20.00 ($12.00 to full-time university faculty members and students). Staff Studies for the World Economic Outlook By a staff team in the Research Department.



    $20.00 ($12.00 to full-time university faculty members and students). Private Market Financing for Developing Countries By a staff team in the Policy Development and Review Department led by Steven Dunaway.



    $20.00 ($12.00 to full-time university faculty members and students).



    Official Financing for Developing Countries



    By a staff team in the Policy Development and Review Department led by Anthony R. Boote.



    $20.00 ($12.00 to full-time university faculty members and students).
    Books and Seminar Volumes



    Current Legal Issues Affecting Central Banks, Volume III



    Edited by Robert C. Effros.



    $42.50.



    Effective Government Accounting



    By A. Premchand.



    $21.00.



    France: Financial and Real Sector Issues Edited by Paul R. Masson. $24.00.



    International monetary cooperation Since Bretton Woods



    By Harold James.



    $45.00.



    Policies for Growth: The Latin American Experience Edited by Andre Kara Resende (Moderator) $24.00.



    Reforming China’s Public Finances



    Edited by Ehtisham Ahmad, Gao Qiang, and Vito Tanzi.



    $24.00.



    Western Europe in Transition: The Impact of the Opening Up of Eastern Europe and the Former Soviet Union



    Edited by Patrick de Fontenay, Giorgio Gomel, and Eduard Hochreiter. Free.



    A Manual for Country Economists



    By Marcello Caiola.



    $25.00.



    Tax Policy Handbook By Parthasarathi Shome. $25.00.



    User’s Guide to the SDR: A Manual of Transactions and Operations in SDRs



    By the Treasurer’s Department. Free.



    IMF Economic Reviews: 1994



    No. 11. Belarus (Russian)



    No. 18. Kazakstan (English, Russian)



    No. 19. Armenia (English)



    IMF Economic Reviews: 1995 No. 1. Czech Republic



    No. 2. Marshall Islands and the Federated States of Micronesia



    IMF Economic Reviews: 1996 No. 1. Mongolia



    Pamphlets



    No. 45. Financial Organization and Operations of the IMF By the Treasurer’s Department. Fourth edition (French, Spanish, Russian). Free.



    No. 48. Unproductive Public Expenditures: A Pragmatic Approach to Policy Analysis



    By the Fiscal Affairs Department



    (French, Spanish, Russian). Free.



    No. 49. Guidelines for Fiscal Adjustment



    By the Fiscal Affairs Department



    (French, Spanish, Russian). Free.



    No. 50. The Role of the IMF: Financing and Its Interactions with Adjustment and Surveillance



    By Paul R. Masson and Michael Mussa, Research Department (French, Spanish, Russian). Free.



    Booklets



    Growth and Stability in the Middle East and North Africa By Mohammed A. El-Erian, Sena Eken, Susan Fennell, and Jean-Pierre Chauffour. Free.



    External Assistance and Policies for Growth in Africa



    Edited by Claire Liuksila. Free.



    The IMF and the Challenges of Globalization



    By Michel Camdessus



    (English, French, Spanish). Free.



    IMF Working Papers and Papers on Policy Analysis and Assessment: October 1986-August 1996(English). Free. Publications Catalog, 1995–1996(English). Free.
    Publications of the International Monetary Fund: January-September 1995(English). Free.



    Publications of the International Monetary Fund: October 1995, November 1995, December 1995, January 1996, and February 1996. Monthly (English). Free.



    Publications of the International Monetary Fund: October 1995-March 1996(English). Free.
    Working Papers



    Nos. 95/47–95/146 and 96/1–96/30 were issued in 1995/96. $7.00 each; $210.00 for annual subscription.



    Papers on Policy Analysis and Assessment



    Nos. 95/8–95/11 and 96/1–96/3 were issued in 1995/96. $7.00 each; $80.00 for annual subscription.
    IMF Staff Country Reports



    IMF Staff Country Reports comprise comprehensive material on economic developments and trends in member countries. The reports are prepared by Fund staff missions as background information for the periodic consultations with members. They contain reports on recent economic developments, background papers, and statistical annexes and appendices.
    95/32BarbadosRecent Economic Developments
    95/33ChinaStatistical Tables and Charts
    95/34HaitiRecent Economic Developments
    95/35HungaryRecent Economic Developments and Background Issues
    95/36ItalyBackground Economic Developments and Issues
    95/37ItalyBackground Economic Developments and
    Issues—Supplementary Information: Appendices
    95/38Kyrgyz RepublicRecent Economic Developments
    95/39SpainSelected Background Issues
    95/40Republic of EstoniaRecent Economic Developments
    95/41DenmarkSelected Background Issues
    95/42DenmarkSupplementary Charts and Tables
    95/43TurkeyRecent Economic Developments
    95/44UgandaBackground Paper
    95/45Antigua and BarbudaRecent Economic Developments
    95/46CanadaEconomic Developments and Policies
    95/47IcelandRecent Economic Developments
    95/48Kingdom of the NetherlandsRecent Economic Developments
    95/49Kingdom of the NetherlandsSelected Background Issues
    95/50Former Yugoslav Republic of MacedoniaRecent Economic Developments
    95/51MalawiStatistical Appendix
    95/52MaltaRecent Economic Developments
    95/53AlbaniaBackground Information
    95/54AlgeriaBackground Paper
    95/55BeninStatistical Annex
    95/56GrenadaRecent Economic Developments
    95/57GuatemalaRecent Economic Developments
    95/58PanamaStatistical Annex
    95/59St. Kitts and NevisRecent Economic Developments
    95/60Sri LankaBackground Paper
    95/61Sri LankaStatistical Tables
    95/62AustriaRecent Developments and Issues
    95/63NepalBackground Paper
    95/64MadagascarRecent Economic Developments
    95/65São Tomé and PríncipeBackground Papers and Statistical Appendix
    95/66Dominican RepublicStatistical Appendix
    95/67TongaRecent Economic Developments
    95/68GuyanaStatistical Appendix
    95/69DominicaRecent Economic Developments
    95/70MozambiqueStatistical Annex
    95/71SenegalBackground Papers and Statistical Annex
    95/72ThailandStatistical Appendix
    95/73Republic of MoldovaRecent Economic Developments
    95/74Central African RepublicStatistical Annex
    95/75UruguayStatistical Annex
    95/76IrelandBackground Paper
    95/77GhanaStatistical Annex
    95/78GhanaBackground Information on Output and
    Investment Performance
    95/79NicaraguaStatistical Annex
    95/80Papua New GuineaBackground Material
    95/81ParaguayStatistical Annex
    95/82Republic of LithuaniaRecent Economic Developments
    95/83IndonesiaRecent Economic Developments
    95/84Marshall IslandsStatistical Appendix
    95/85Czech RepublicSelected Background Studies
    95/86IndiaRecent Economic Developments
    95/87IndiaBackground Papers
    95/88LesothoStatistical Appendix
    95/89Kingdom of the Netherlands—ArubaRecent Economic Developments
    95/90Federated States of MicronesiaStatistical Appendix
    95/91NamibiaRecent Economic Developments and Selected Economic Issues
    95/92VietnamBackground Papers
    95/93VietnamStatistical Tables
    95/94United StatesBackground Papers
    95/95GreeceBackground Papers
    95/96EcuadorRecent Economic Development
    95/97JordanBackground Information on Selected Aspects of
    Adjustment and Growth Strategy
    95/98Bahamas, TheStatistical Appendix
    95/99BelarusRecent Economic Developments
    95/100GermanyRecent Economic Developments
    95/101GermanySelected Background Issues
    95/102ChileRecent Economic Developments
    95/103Slovak RepublicSelected Background Issues
    95/104FinlandRecent Economic Developments
    95/105IsraelRecent Economic Developments
    95/106West Bank and Gaza StripRecent Economic Developments and Prospects
    Institution Building—Background Paper Issued in Connection with the 1995 Article IV Consultation. with Israel
    95/107Russian FederationStatistical Appendix
    95/108CambodiaStatistical Tables
    95/109RwandaSocial and Economic Background Paper, and
    Statistical Appendix
    95/110ArgentinaRecent Economic Developments
    95/111Republic of ArmeniaRecent Economic Developments
    95/112Republic of GeorgiaRecent Economic Developments
    95/113PhilippinesRecent Economic Developments
    95/114PhilippinesBackground Paper
    95/115JapanRecent Economic Developments
    95/116JapanBackground Paper
    95/117KiribatiRecent Economic Development’s
    95/118Western SamoaStatistical Annex
    95/119Azerbaijan RepublicRecent Economic Developments
    95/120Guinea-BissauRecent Economic Developments
    95/121Islamic Republic of IranRecent Economic Developments
    95/122AngolaRecent Economic Developments
    95/123Gambia, TheRecent Economic Developments
    95/124PortugalRecent Economic Developments
    95/125LatviaRecent Economic Developments
    95/126MyanmarRecent Economic Developments
    95/127MalaysiaBackground Paper
    95/128FijiBackground Material
    95/129GabonBackground Paper
    95/130United KingdomRecent Economic Developments
    95/131Republic of CroatiaRecent Economic Developments
    95/132FranceRecent Economic Developments
    95/133KenyaRecent Economic Developments
    95/134Equatorial GuineaBackground Appendices
    95/135BhutanBackground Paper
    95/136KoreaBackground Papers
    95/137KoreaStatistical Tables
    95/138MaliStatistical Annex
    95/139St. Vincent and the GrenadinesStatistical Annex
    95/140MoroccoStatistical Annex
    95/141FranceSelected Background Issues
    95/142SingaporeStatistical Appendix
    95/143NigeriaBackground Papers and Statistical Appendix
    ***
    96/1MauritiusBackground Papers and Statistical Annex
    96/2TanzaniaStatistical Appendix
    96/3PeruRecent Economic Developments
    96/4SwazilandStatistical Annex
    96/5Burkina FasoBackground Papers and Statistical Update
    96/6Côte d’IvoireRecent Economic Developments
    96/7GuineaBackground Paper
    96/8PakistanRecent Economic Developments
    96/9RomaniaRecent Economic Developments and Selected
    Background Studies
    96/10RomaniaStatistical Appendix
    96/11Sierra LeoneStatistical Annex
    96/12TogoStatistical Annex
    96/13BulgariaRecent Economic Developments
    96/14New ZealandRecent Economic Developments
    96/15NorwayBackground Paper
    96/16CyprusBackground Paper
    96/17IcelandStatistical Appendix (Corrected April 1996)
    96/18ColombiaRecent Economic Developments
    96/19PolandBackground Paper
    96/20PolandStatistical Tables
    96/21UkraineRecent Economic Developments
    96/22KazakstanRecent Economic Developments
    96/23BotswanaRecent Economic Developments and Selected Economic Issues
    96/24MongoliaBackground Material
    $15.00 each.

    Copies of the Fund’s publications may be obtained from Publication Services, International Monetary Fund, 700 19th Street, N.W., Washington, D.C. 20431, U.S.A.

    Additional information about the Fund and its publications is available on the Internet (address: gopher.imf.org) and on the World Wide Web (address: gopher://gophcr.inlf.org).

    Telephone: (202)623–7430

    Telefax: (202)623–7201

    Internet: publicationsations@imf.org.

    appendix V Principal Policy Decisions of the Executive Board

    A. Access Policy—Guidelines on Access Limits—Review

    1. Pursuant to Decision No. 10181-(92/132),1 adopted November 3, 1992, and Decision No. 10819-(94/95),2 adopted October 24, 1994, the Fund has reviewed the guidelines and the limits for access by members to the Fund’s general resources under the credit tranches and the extended Fund facility, and the decision to increase the annual access limit to 100 percent of quota during a period of three years from October 24, 1994, and decides that they remain appropriate in the present circumstances.

    2. The next of the annual reviews prescribed by Decision No. 10181-(92/132), adopted November 3, 1992, and by Decision No. 10819(94/95), adopted October 24, 1994, shall be completed by October 31, 1996.

    Decision No. 11098-(95/101)

    October 27, 1995

    B. Valuation of SDR

    (a) SDR Valuation Basket

    The Executive Board, having reviewed the list of the currencies, and the weights of these currencies, that determine the value of the special drawing right, in accordance with Decision No. 6631-(80/145) G/S,3 adopted September 17, 1980, decides that, with effect from January 1, 1996, the list of the currencies in the SDR valuation basket shall remain the same, and the weight of each of these currencies to be used to calculate the amount of each of these currencies in the basket will be as follows:

    CurrencyWeight

    (in percent)
    U.S. dollar39
    Deutsche mark21
    Japanese yen18
    French franc11
    Pound sterling11

    Decision No. 11073-(95/92) G/S

    September 25, 1995

    (b) Amendment to Rule O-1

    In accordance with Executive Board Decision No. 6631-(80/145) G/S, adopted September 17, 1980, Executive Board Decision No. 11073 (95/92) G/S,4 adopted September 25, 1995, and the guidelines set forth in Executive Board Decision No. 8160-(85/186) G/S5, adopted December 23, 1985, Rule O-1 shall read as follows, effective January 1, 1996;

    Rule O-1. The value of the SDR shall be the sum of the values of the following amounts of the following currencies;
    U.S. dollar0.582
    Deutsche mark0.446
    Japanese yen27.2
    French franc0.813
    Pound sterling0.105

    Decision No. 11179-(96/l) G/S

    December 29, 1995

    C. Fund’s Income Position

    (a) Net Income Target and Rate of Charge on Use of Fund Resources for FY 1997

    1. The target amount of net income for financial year 1997 shall be 5 percent of the Fund’s reserves at the beginning of the financial year.

    2. Effective May 1, 1996, the proportion of the rate of charge referred to in Rule 1-6(4) to the SDR interest rate under Rule T-1 shall be 109.4 percent.

    3. Any net income for financial year 1997 in excess of the target amount of net income of 5 percent of the Fund’s reserves at the beginning of that financial year shall be used to reduce retroactively the proportion of the rate of charge to the SDR interest rate for financial year 1997. If net income for financial year 1997 is below the target amount for that year, the net income target for financial year 1998 shall be increased by the equivalent of that shortfall.

    Decision No. 11251-(96/39)

    April 18, 1996

    (b) Disposition of Net Income for FT 1996

    The Fund’s net income for financial year 1996 of SDR 89,327,289 shall be placed to the Special Reserve.

    Decision No. 11301-(96/64)

    July 5, 1996

    D. Enhanced Structural Adjustment Facility (ESAF)

    (a) ESAF Trust—Expansion of Eligibility

    The list annexed to Decision No. 8240-(86/56) SAF,6 as amended, shall be further amended by adding Azerbaijan Republic and the Republic of Congo for purposes of eligibility under Section II, Paragraph 1(a) of the ESAF Trust Instrument.

    Decision No. 10989-(95/53) SAF

    May 30, 1995

    (b) ESAF Trust Instrument—Amendment

    The Fund approves the following amendment of the Instrument to Establish the Enhanced Structural Adjustment Facility, Decision No. 8759-(87/176) ESAF,7 adopted December 18, 1987, as amended:

    Section II, Paragraph 3(b) is amended to read:

    Disbursements under an annual arrangement must precede the expiration of the period of that arrangement and be made prior to the expiration of the three-year commitment period. An annual arrangement may be extended for a period not to exceed six months where (i) an extension is necessary to complete the midyear review, and (ii) there is a good prospect that the member will achieve the objectives of the program within the extended period. The Trustee may extend the period of the three-year commitment to allow the disbursement of undisbursed amounts, subject to appropriate conditions consistent with the terms of assistance under this Instrument.

    Decision No. 11114-(95/110) ESAF

    November 20, 1995

    (c) ESAF Trust—Reserve Account—Review

    Pursuant to Decision No. 10286-(93/23) ESAF,8 the Fund has reviewed the adequacy of the Reserve Account of the ESAF Trust, and determines that amounts held in the account are sufficient to meet all obligations that could give rise to a payment from the Reserve Account to lenders to the Loan Account of the ESAF Trust in the six months from January 1 to June 30, 1996.

    Decision No. 11178-(96/1) ESAF

    December 29, 1995

    E. Guidelines on Performance Criteria with Respect to Foreign Borrowing—Review and Amendment of 1979 Decision

    Executive Board Decision No. 6230-(79/140)9 (Guidelines on Performance Criteria with Respect to Foreign Borrowing) adopted August 3, 1979 is amended as follows:

    (a)The guideline on the performance criteria with respect to foreign borrowing is amended to read as follows:

    When the size and the rate of growth of external indebtedness is a relevant factor in the design of an adjustment program, a performance criterion relating to official and officially guaranteed foreign borrowing will be included in upper credit tranche arrangements. The criterion will include foreign loans with maturities of over one year, and in appropriate eases, other financial instruments that have the potential to create substantial external liabilities for governments. The criterion will usually be formulated in terms of debt contracted or authorized. However, in appropriate eases, it may be formulated in terms of net disbursements or net changes in the stock of external official and officially guaranteed debt. Flexibility will be exercised to ensure that the use of the performance criterion will not discourage capital flows of a concessional nature by excluding from the coverage of performance criteria loans defined as concessional on the basis of currency-specific discount rates based on the OECD commercial interest reference rates, and including a grant element of at least 35 percent, provided that a higher grant element may be required in exceptional cases. Normally, the performance criterion will include a subceiling on foreign debt with maturities of over one year and up to five years. Additional subceilings may also be included on debt with specified maturities beyond five years or with a specified grant element lower than 35 percent.

    (b)Points 2, 6, and 7 of Decision No. 62 30-(79/140) are amended to read as follows:

    • 2. In analyzing the amount and terms of new borrowing that would be appropriate—in the member’s circumstances—over the medium term, the staff will take into account prospective developments in the member’s external payments situation and the profile of its external indebtedness.

    • 6. The staff is encouraged to include short-term debt of a maturity of less than one year in the performance criteria relating to foreign borrowing, while allowing some flexibility in light of the different institutional reporting procedures employed by members and the statistical difficulties of recording that category.

    • 7. The guideline provides for excluding from the coverage of performance criteria those loans defined as concessional on the basis of currency-specific discount rates based on the OECD commercial interest reference rates and including a specified grant element. In some cases, member countries utilize credits associated with concessional loans. The staff will take this into account in discussing the appropriate amount of borrowing.

    Decision No. 11096-(95/100)

    October 25, 1995

    F. Periods for Consent to and Payment for Increases in Quotas Under Ninth General Review—Extension

    1. Pursuant to Paragraph 4 of the Resolution of the Board of Governors No. 45-2, “Increases in Quotas of Members—Ninth General Review,” the Executive Board decides that notices in accordance with Paragraph 2 of that Resolution must be received in the Fund before 6:00 p.m., Washington time, on December 29, 1995.

    2. Pursuant to Paragraph 5 of the Board of Governors Resolution 45-2, the Executive Board decides that each member shall pay to the Fund the increase in its quota under the Ninth General Review within 1,143 days after the later of (a) the date on which it notifies the Fund of its consent or (b) November 11, 1992.

    Decision No. 11018-(95/62)

    June 23, 1995

    1. Pursuant to Paragraph 4 of the Resolution of the Board of Governors No. 45-2, “Increases in Quotas of Members—Ninth General Review,” the Executive Board decides that notices in accordance with Paragraph 2 of that Resolution must be received in the Fund before 6:00 p.m., Washington time, on June 28, 1996.

    2. Pursuant to Paragraph 5 of the Board of Governors Resolution 45-2, the Executive Board decides that each member shall pay to the Fund the increase in its quota under the Ninth Review within 1,325 days after the later of (a) the date on which it notifies the Fund of its consent, or (b) November 11, 1992.

    Decision No. 11175-(95/124)

    December 22, 1995

    G. Technical Assistance—Framework Administered Account—Amendment to Instrument

    1. The terms “Donor” and “Contributing Donor” shall be replaced with “Contributor” wherever these terms appear in the Instrument.10

    2. Paragraph 2 of the Instrument shall be amended to read as follows:

    The resources provided by Contributors to the Framework Account shall be: (i) grants, or (ii) proceeds of grants or loans that have been received by the Contributor from entities other than the Fund for the purpose of financing technical assistance to the Contributor The resources may be used by the Fund only for technical assistance activities consistent with its purposes, in accordance with the procedures specified in Paragraph 3 of this Instrument.

    Decision No. 11162-(95/121)

    December 19, 1995

    H. Opening of Fund Archives

    The Executive Board decides that outside persons, on request, will be given access to documentary materials maintained in the Fund’s archives that are over 30 years old, provided, however, that access to Fund documents originally classified as “Secret” or “Strictly Confidential” will be granted only upon the Managing Director’s consent to their declassification; It is understood that this consent will be granted in all instances but those in which, despite the passage of time, the material remains highly confidential or sensitive. Access to the following will not be granted: (a) legal documents and records maintained by the Legal Department that are protected by attorney-client privilege; (b) documentary materials furnished to the Fund by external parties, including member countries, their instrumentalities and agencies and central banks, that bear confidentiality markings, unless such external parties consent to their declassification; (c) personnel files and medical or other records pertaining to individuals: and (d) documents and proceedings of the Grievance Committee.

    Decision No. U192-(96/2)

    January 17, 1996

    appendix VI Press Communiqués of the Interim Committee and the Development Committee

    Interim Committee of the Board of Governors on the International Monetary System

    PRESS COMMUNIQUÉS

    Forty-Fifth Meeting, Washington, D.C., October 8, 1995

    1. The Interim Committee held its Forty-fifth meeting in Washington, D.C. on October 8, 1995 under the chairmanship of Mr. Philippe Maystadt, Deputy Prime Minister and Minister of Finance and External Trade of Belgium.

    2. The Committee welcomed the encouraging global economic situation and outlook, which are due in large part to the pursuit of sound policies in many countries. It reaffirmed that the Madrid Declaration continues to be a useful guide for policies.

    3. In reviewing progress in implementing the Madrid Declaration, the Committee observed that:

    • In the industrial countries, prospects are for sustained noninflationary growth, and policies should continue to be aimed toward this objective. Broad-based expansion will help to create jobs, reduce external imbalances, and contribute to financial market stability. The Committee welcomed the recent economic stimulus measures announced by the Japanese authorities, the easing of if interest rates in Europe, progress toward fiscal consolidation in many countries, and the broad movements in the exchange rates between the key currencies since last April. In many countries, strengthened efforts at fiscal consolidation, and prudent monetary policies, have permitted lower long-term interest rates. Nevertheless, much remains to be done, and the current expansion should be taken as an opportunity for vigorous action to tackle fiscal imbalances, to enhance labor market flexibility, and to reduce unemployment, particularly in Europe and Canada, and to further deregulate and open markets in Japan.

    • The Committee commended the impressive growth performance of an increasing number of developing countries. Strong fundamentals and prompt policy adjustments, and avoidance of recourse to exchange controls, have helped restore investor confidence in the aftermath of the Mexican crisis. Strong adjustment efforts by Mexico and other affected countries, with timely and substantial international support, have enabled them to weather the crisis, although the social costs of the crisis have been severe in some of the countries. Elsewhere, especially in Asia, some of the strongest-performing countries now must guard against overheating, with an appropriate use of exchange rate and monetary policy.

    • Many low-income countries now enjoy improved growth prospects as a result of their implementation of comprehensive adjustment policies and more favorable external conditions. However, the Committee expressed deep concern about the plight of a number of low-income countries. It called for the full and constructive implementation of Naples terms by the Paris Club, but emphasized the need to maintain sufficient flows of concessional assistance to low-income countries implementing strong adjustment and reform programs.

    • The Committee was encouraged by the resumption of growth in a number of economies in transition that had established firm macroeconomic discipline and implemented early and wide-ranging systemic reforms. Many countries that were less advanced in the transition process have also recently strengthened their stabilization and reform efforts, and are now showing signs of economic recovery. The Committee urged all countries in transition to pursue bold policies that the Fund could support. There is a pressing need for improved enterprise efficiency, cost-effective social safety nets, and financial sector reform. Many of these countries need to address without delay the level and structure of government expenditure and the unsustainable decline in budgetary revenues by improved tax policies and administration. Many also need effective debt control and monitoring, and concern was expressed that some are accumulating external debt un sustain ably.

    4. The Committee welcomed trade liberalization under the Uruguay Round, and reiterated the importance of further market opening, avoidance of protectionist measures, and reliance on the multilateral framework of the WTO to resolve disputes.

    5. The Committee stressed that increased freedom of capital movements and globalized markets bring significant benefits to all countries. Consistent implementation of firm economic policies should help to reduce the volatility of capital movements. The Committee encouraged the Fund, in promoting liberalization in a global market setting, to pay increased attention to capital account issues and the soundness of financial systems, and emphasized the need for improved prudential supervision.

    6. The Committee endorsed the conclusions and recommendations of the report of the Executive Board on the regular and timely provision of comprehensive and good quality data to the Fund by members for surveillance purposes, including the identification of a set of 12 core data categories, and on the establishment by the Fund of standards to guide members in their publication of economic and financial data (including a two-tier approach consisting of a general standard for all members and the more demanding standard for those having or seeking access to the capital markets and public identification of countries adhering to the more demanding standard). The Committee stressed the importance of providing technical assistance to interested member countries. It supported publication of the report and requested the Executive Board to complete its work soon, taking into account the views of market participants, so that members who wish to subscribe to the more demanding standard should have the opportunity to do so before the Committee’s April 1996 meeting.

    7. The Committee stressed the crucial need to safeguard the Fund’s liquidity at an adequate level at all times. Accordingly the Committee discussed strengthening the Fund’s financial resources:

    • The Committee welcomed the progress already made by the Executive Board on Fund quotas, and requested the Board to move forward with the Eleventh Quinquennial Review, and to report on progress made at the next meeting of the Committee in April 1996.

    • The Committee noted with interest the initiative of the Group of Ten countries to develop new parallel financing arrangements, complementary to the General Arrangements to Borrow, with the aim of doubling the resources currently available under the General Arrangements to Borrow through contributions from members of the G-10 and from other countries with the capacity to support the international financial system; it expressed the strong hope that early progress would be made through a constructive dialogue between the G-10 and potential new participants. The Committee emphasized the importance that all participants should be treated equally. and agreed that expanded borrowing should not be a substitute for a quota increase.

    8. The Committee welcomed the consensus in support of Continuation of the enhanced structural adjustment facility(ESAF), including the establishment of a self-sustained ESAF. It agreed that ESAF should continue to be the centerpiece of the Fund’s strategy to help the lower-income countries, including those that are heavily indebted. It requested the Executive Board to submit proposals on the future financing of ESAF and to report to the Committee at its next meeting.

    9. The Committee noted the ongoing work in the Fund, in close collaboration with the World Rank, on how best to address the problems of those low-income countries that are undertaking strong adjustment and reform programs hut whose debt situation, including debt to multilateral institutions, may prove unsustainable, even after debt reduction on Naples terms. It encouraged the two institutions to continue their cooperative work on these issues, including country-specific analysis of debt sustainaability, and requested the Executive Board to report to the Interim Committee at its next meeting.

    10. The Committee endorsed the Board’s decisions:

    • To establish exceptional procedures (the emergency financing mechanism) that would enable the Fund to respond promptly and prudently in the event of serious financial crises. It emphasized that use of these procedures would not necessarily imply exceptional financing, and would be subject to strong conditionality.

    • On the conditions under which the Fund should be prepared to support currency stabilization funds, on a short-term basis, in the context of an exchange-rate-based disinflation strategy, and within the limits and guidelines of the current access policy.

    • On expanding the scope of the Fund’s involvement in post-conflict situations, including the circumstances under which the Fund could provide emergency support in a context of coordinated international assistance.

    11. The Committee requested the Executive Board to continue its examination of ways to achieve the agreed objective of participation of all members of the Fund in the SDR system. As part of the wide-ranging review of the role and functions of the SDR in the world financial system, the Committee also looked forward to the results of the seminar to be held in March 1996, with the involvement of outside experts.

    12. Members of the Committee had a fruitful informal discussion with Mr. Michel Hansenne, Director-General of the International Labor Office, on collaboration between the ILO and the IMF in light of the commitments of the UN Social Summit. The Committee agreed that cooperation should be strengthened, with a view to helping Fund missions to acquire a better understanding on labor markets and social protection issues, and ILO staff to further integrate in their own policy advice the view of the Fund on macroeconomic policies and targets forthe country concerned. The Committee also recommended that regular exchanges of views and sharing of information should be pursued in the preparation of the Fund’s World Economic Outlook and the ILO’s World Employment Outlook.

    13. The Committee will meet again on April 22, 1996.

    Annex: Interim Committee Attendance October 8, 1995

    Chairman

    Philippe Maystadt, Minister of Finance, Belgium

    Managing Director

    Michel Camdessus

    Members or Alternates

    Hamad Al-Sayari, Governor, Saudi Arabian Monetary Agency (Alternate for Soliman A. Al-Solaim, Minister of Finance and National Economy, Saudi Arabia)

    Sultan N. Al-Suwaidi, Governor, United Arab Emirates Central Bank (Alternate for Ahmed Humaid Al-Tayer, Minister of State for Financial and Industrial Affairs, United Arab Emirates)

    Jean Arthuis, Minister of Economy, Finance and Planning, France

    Domingo Felipe Cavallo, Minister of Economy and Public Works and Services, Argentina

    Anatoli Chubais, First Deputy Chairman, Russian Federation

    Kenneth Clarke, Chancellor of the Exchequer, United Kingdom

    Chen Yuan, Deputy Governor, People’s Bank of China (Alternate for Dai Xianglong, Governor, People’s Bank of China)

    Lamberto Dini, Prime Minister and Minister of the Treasury, Italy

    Marcel Doupamby Matoka, Minister of Finance, Economy, Budget, and Equity Financing, Gabon

    Sigbjoern Johnsen, Minister of Finance and Customs, Norway

    Abdelouahab Keramane, Governor, Banque d’Aigérie

    Pedro Sampaio Malan, Minister of Finance, Brazil

    Paul Martin, Minister of Finance, Canada

    Klaus Liebscher, Governor, Austrian National Bank (p.m. session) and Alfons Verplaetse, Governor, Banque Nationale de Belgique (a.m. session) (Alternates for Philippe Maystadt, Minister of Finance, Belgium)

    Guillermo Ortiz, Secretary of Finance and Public Credit, Mexico

    Robert E. Rubin, Secretary of the Treasury, United States Tomaz Augusto Salomao, Minister of Planning and Finance, Mozambique

    Manmohan Singh, Minister of Finance, India

    Otto Stich, Minister of Finance, Switzerland

    Masayoshi Takemura, Minister of Finance, Japan

    Vijit Supinit, Governor, Bank of Thailand

    Theo Waigel, Federal Minister of Finance, Germany

    Ralph Willis, Treasurer, Australia

    Gerrit Zalm, Minister of Finance, Netherlands

    Observers

    Andrew D. Crockett, General Manager, BIS

    Yves-Thibault de Silguy, Commissioner for Economic, Monetary’ and Financial Affairs, CEC

    Mohamed Kabbaj, Chairman, Joint Development Committee

    Roger Lawrence, Director, Global Interdependence Division, UNCTAD

    Jean-Claude Milleron, Under-Secretary-General, Department for Economic and Social Information and Policy Analysis, UN

    Jean-Claude Pave, Secretary-General, OECD

    Renato Ruggiero, Director-General, WTO

    James D, Wolfensohn, President, World Bank

    Forty-Sixth Meeting, Washington, D.C., April 22, 1996

    1. The Interim Committee held its forty-sixth meeting in Washington, D.C. on April 22, 1996 under the Chairmanship of Mr. Philippe Maystadt, Deputy Prime Minister and Minister of Finance and of Foreign Trade of Belgium.

    2. The Committee is encouraged by developments in the world economy.

    • Inflation has been brought down or kept low in most countries, and the broad movements in the exchange rates of the major currencies since the Committee meeting of April 1995 have improved the prospects for sustainable noninflationarv growth.

    • In the developing world, growth has been well sustained, helped by strong policies of macroeconomic adjustment and structural reform, leading to improved living standards for a large share of the world’s population. In Asia, growth is expected to remain buoyant, albeit at a slightly slower rate than in 1995 reflecting, in part, tighter policies in some countries to resist overheating. In the Western Hemisphere, the far-reaching adjustment efforts of Mexico and other countries in the region have improved the prospects for recovery. In Africa and the Middle East, sound policies are improving economic prospects.

    • In the countries in transition, progress toward market-based institutions and macroeconomic stability has contributed to stronger economic performance. The countries that have advanced furthest in this process provide encouraging evidence that perseverance with financial discipline and structural reforms creates the basis for sustained growth.

    • In the industrial countries, recovery has begun in Japan, and conditions are good for expansion to continue at a healthy rate in North America. In continental Europe, fiscal consolidation, subdued inflation, and their favorable impact on interest rates should help the expected pickup of growth in the course of 1996, following the recent pause.

    3. The Committee notes that many of these favorable developments reflect implementation of key aspects of the common strategy set out by the Interim Committee in the Madrid Declaration of October 1994. The fall meeting of the Committee may be an appropriate occasion for updating the guidelines set out in the Madrid Declaration, and the Committee requests the Executive Board to consider this matter.

    4. The Committee emphasizes that important challenges remain:

    • Fiscal consolidation remains a key priority in most countries, despite some progress in reducing budget deficits. Fiscal problems take many forms, including unproductive spending, narrow tax bases and high tax rates, inefficient state enterprises often subject to soft budget constraints, large off-budget or hidden imbalances, and extensive commitments, particularly in pensions and health care, given the prospective aging of populations. Greater transparency of fiscal operations and awareness of the implications of longer-term commitments are needed to build public consensus and support for determined policies to deal with these problems.

    • Removal of structural impediments to higher rates of noninflationary growth is also critical, and labor market rigidities that contribute to unacceptably high unemployment in many industrial countries are of particular concern; progress in these areas would also assist fiscal consolidation.

    • Strengthened supervision of financial institutions and markets will facilitate the efficient allocation of financial resources and guard against potential sources of macroeconomic instability and fiscal costs.

    5. The Committee recognizes the very strong efforts by the Fund to adapt its surveillance to the new global environment. Specifically, the Committee

    • Welcomes the report of the Managing Director on policies implemented in the context of country surveillance, which provides a useful bridge from the lessons of the Board’s daily work on bilateral surveillance to the broader issues relevant to the Interim Committee in its oversight role. The Committee requests a further report on selected surveillance issues frequently arising in the fund’s dialogue with members.

    • Welcomes the establishment of the Special Data Dissemination Standard for members having or seeking access to international capital markets, and the early indications that a significant number of countries intend to subscribe; it encourages other members to subscribe. The Committee calls for early work by the Executive Board to establish the general standard for data dissemination for all members before the end of 1996.

    6. With respect to the Fund’s financial resources and assistance to members, the Committee

    • Notes the progress made by the Executive Board in preparatory work for the Eleventh General Review of Quotas and stresses the need to ensure the adequacy of quotas for the Fund to continue to carry out its mandate, taking into account changes in the world economy since the last increase in quotas was agreed in 1990. In view of the prospective evolution in the Fund’s liquidity position, the Committee requests the Executive Board to pursue work on quota issues with a view to reaching a conclusion as soon as possible.

    • Notes the report of the Chairman of the G-10 Deputies, and welcomes the progress toward doubling the resources Currently available to the Fund under the General Arrangements to Borrow, while re-emphasizing that borrowing should be exceptional and that the new arrangements are not a substitute for a quota increase. It welcomes in particular the agreement that has been reached on the broad principles that will guide the design of the new arrangements as well as the indication by a number of countries of their readiness to participate in borrowing arrangements on appropriate terms. It urges an early successful conclusion of this work.

    • Reiterates its support for continuation of the enhanced structural adjustment facility (ESAF), including establishment of a self-sustained ESAF, as the centerpiece of the Fund’s strategy to help the low-income countries, including in the context of the initiative to assist the most heavily indebted poor countries. It discussed the report presented by the Managing Director and—taking into account the time-required to put in place the financing arrangements for ESAF—requests the Executive Board to conclude its discussions as soon as possible with the aim of devising acceptable financing proposals by the time of the next Annual Meetings.

    • Welcomes the proposed framework presented by the Fund and the Bank on ways to address the problems of a limited number of heavily indebted poor countries following sound policies for which it is clear that existing mechanisms appear inadequate to secure a sustainable external debt position over the medium term. It agrees that further action is needed, on a case-by-case basis, in line with broad principles agreed by the two Executive Boards, including contributions by the IFIs from their own resources, contributions by bilateral donors, and appropriate action by the Paris Club, and by other creditors. The (Committee requests the Fund, in conjunction with the Bank and in close collaboration with all involved creditors and donors, to put forward specific proposals as soon as possible, with the aim of reaching decisions by the time of the next Annual Meetings.

    7. The Committee welcomes the report on the Seminar on the Future of the SDR. It requests the Executive Board to reflect further on proposals on the role of the SDR and to reach a consensus on a way for all members to receive an equitable share of cumulative SDR allocations.

    8. The Committee will meet again in Washington, D.C., on September 29,1996.

    Annex: Interim Committee Attendance April 22, 1996

    Chairman

    Philippe Maystadt, Minister of Finance, Belgium

    Managing Director

    Michel Camdessus

    Members or Alternates

    Ibrahim A. Ai-Assaf, Minister of Finance and National Econ-omv, Saudi Arabia

    Sultan N. Al-Suwaidi, Governor, United Arab Emirates Central Bank (Alternate for Ahmed Humaid Al-Tayer, Minister of State for Financial and Industrial Affairs, United Arab Emirates)

    Jean Artlmis, Minister of Economy and Finance, France

    Erik Åsbrink, Minister of Finance, Sweden

    Antonio Casas González, President, Banco Central de Venezuela

    Roque Benjamin Fernández, President, Banco Central de la Republica Argentina (Alternate for Domingo Felipe Cavallo. Minister of Economy and Public Works and Services, Argentina)

    Kenneth Clarke, Chancellor of the Exchequer, United Kingdom

    Jim Short, Assistant Treasurer, Australia (Alternate for Peter Costello, Treasurer, Australia)

    Chen Yuan, Deputy Governor, People’s Bank of China (Alternate for Dai Xianglong, Governor, People’s Bank of China)

    Mario Draghi, Director General, Ministry of the Treasury, Italy (p.m. session) and Antonio Fazio, Governor, Banca d’Italia (a.m. session) (Alternates for Lamberto Dini, Prime Minister and Minister of the Treasury, Italy)

    J. Soedradjad Djiwandono, Governor, Bank Indonesia

    Marcel Doupamby Matoka, Minister of Finance, Economy, Budget, and Equity Financing, Gabon

    Sergei Dubinin, Chairman, Central Bank of the Russian Federation

    Abdelouahab Keramane, Governor, Banque d’Algérie

    Yasuo Matsushita, Governor, The Bank of Japan (Alternate for Wataru Kubo, Minister of Finance, Japan)

    Pedro Sampaio Malan, Minister of Finance, Brazil

    Paul Martin, Minister of Finance, Canada

    Viktor Klima, Federal Minister of Finance, Austria (Alternate for Philippe Maystadt, Minister of Finance, Belgium)

    Robert E. Rubin, Secretary of the Treasury, United States

    Tomaz Augusto Salomao, Minister of Planning and Finance, Mozambique

    C. Rangarajan, Governor, Reserve Bank of India (Alternate for Manmohan Singh, Minister of Finance, India)

    Kaspar Villiger, Minister of Finance, Switzerland

    Theo Waigel, Federal Minister of Finance, Germany

    Gerrit Zalm, Minister of Finance, Netherlands

    Observers

    Andrew D. Crockett, General Manager, BIS

    Yves-Thibault de Silguy, Commissioner for Economic, Monetary and Financial Affairs, CEC

    Mohamed Kabbaj, Chairman, Joint Development Committee

    Roger Lawrence, Director, Global Interdependence Division, UNCTAD

    Jean-Claude Milleron, Under-Secretary-General for Economic and Social Information and Policy Analysis, U.N

    Jean-Claude Pave, Secretary-General, OECD

    Jesús Seade, Deputy Director-General, WTO

    James D, Wolfensohn, President, World Bank

    Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries (Development Committee)

    PRESS COMMUNIQUÉS

    Fifty-First Meeting, Washington, D.C., October 9, 1995

    1. The fifty-first Meeting of the Development Committee was held in Washington, D.C. on October 9, 1995 under the chairmanship of Mr. Mohamed Kabb3j, Minister of Finance and Foreign Investment of Morocco. Ministers welcomed World Bank President James D. Wolfensohn to his first meeting of the Committee. The Committee was pleased that, for the first time, the United Nations Secretary-General, Mr. Boutros Boutros-Ghali, addressed the Committee.1

    Support for Poverty Reduction

    2. Ministers reviewed the implications of the United Nations’ Social Summit Declaration. They focused particularly on how World Bank and IMF efforts to reduce poverty could be strengthened through enhanced policy dialogue with governments, based in part on results of poverty assessments. Ministers agreed that multilateral development institutions should accelerate their investments in social sectors and poverty -reduction programs. The Committee encouraged the Bank to strengthen its efforts to promote broad-based, labor-intensive growth through increasing access of the poor to land, credit, and basic infrastructure.

    3. Ministers agreed that efforts to improve the composition and efficiency of public expenditures were needed. The Committee urged the Bank and Fund to work closely with member governments to help them improve their public finances, especially by increasing attention to funding social and economic development programs and reducing nonproductive spending (including excessive military expenditures) within a framework of sustainable economic growth.

    4. In this context, Ministers agreed that donors’ support should be consistent with governments’ public expenditure programs. The Committee urged donor governments to continue to strengthen assistance for countries demonstrating strong commitment to social sector investments and other high-priority poverty-reduction programs. The Committee also urged them to take steps to reduce administrative burdens on aid recipients.

    International Development Association (IDA)

    5. Ministers recognized the importance of supporting the implementation of effective development policies and programs with adequate resource flows, especially of concessional funds, if poverty is to be reduced The Committee recognized that Finding reductions facing IDA present a very serious risk to poverty reduction and economic growth in the world’s poorest countries. Ministers agreed on the importance of a significant replenishment of IDA.

    6. The Committee expressed great concern that potential reductions in contributions to IDA were likely to jeopardize its future and stressed the great importance donors attach to equitable burden sharing. The Committee urged all donors that have not done so to honor their commitments and continue the strong support that has marked IDA’s 35-year life.

    7. Ministers agreed that every effort should be made to meet the essential financing requirements of poor countries as reflected in IDA’s lending plans, and to protect IDA’s multilateral character.

    Multilateral Debt

    8. Ministers resumed the discussion of multilateral debt begun at the previous meeting. Ministers agreed that current instruments should be sufficient to bring debt and debt service for the majority of heavily indebted poor countries down to manageable levels. For a small group of countries, however, this may still leave an unsustainable debt situation, a problem for which appropriate approaches need to be further explored. Ministers requested the Bank and Fund to continue their work on this issue, including detailed country-specific analysis of debt sustainability, and, after presenting their findings and recommendations to the Executive Boards, to report with proposals to the Committee at its next meeting.

    Executive Secretary

    9. The Committee selected Mr. Alexander Shakow as Executive Secretary.

    Next Meeting

    10. The Committee’s next meeting will be on April 23, 1996, in Washington, D.C., when its agenda will include consideration of the Report of its Task Force on the Role of Multilateral Development Banks.

    Fifty-Second Meeting, Washington, D.C., April 23, 1996

    1. The fifty-second Meeting of the Development Committee was held in Washington, D.C. on April 23, 1996 under the chairmanship of Mr. Mohamed Kabbaj, Minister of Finance and Foreign Investment of Morocco.2

    International Development Association (IDA)

    2. Ministers expressed appreciation to all donors that contributed to the three-year funding arrangement3 agreed upon in March 1996, and extended special recognition to those donors contributing to the FY97 Interim Trust Fund. Ministers noted that the funding pledged by donors, together with other resources expected to be available to IDA, will allow IDA to lend up to US$22 billion over three years, commencing in July 1996, While this represents a significant achievement, reached under difficult circumstances, it leaves IDA with seriously constrained financial capacity to respond to countries’ improved policy performance. Ministers praised those countries that have become new IDA donors and encouraged others to take similar action. They also thanked those that have made supplementary or increased contributions to IDA.

    3. Ministers emphasized that the IDA 11 agreement reflects a strong consensus on IDA’s importance to the support of effective development policies and programs in the poorest countries, with its core objective of poverty reduction supported by economic growth and environmental sustain-ability. Ministers urged IDA to raise its effectiveness and development impact.

    4. Ministers reiterated the importance of maintaining IDA’s capacity to transfer resources to countries with sound policy performance. They stressed the importance of fair burden sharing among IDA donors, and called upon donors to honor their commitments on a timely basis to ensure successful implementation of TDA 11.

    5. Noting with great concern the difficulties encountered in the replenishment of IDA 11, Ministers agreed that the prospects for IDA funding be a key issue for discussion by the Committee in a year’s time.

    6. Ministers urged that rapid progress also be made in ensuring the continued financing of the IMF’s enhanced structural adjustment facility (ESAF), a vital complement to IDA, for the multilateral effort to be fully effective.

    Resolving Debt Problems of the Heavily Indebted Poor Countries (HIPCs)

    7. Ministers Welcomed A Framework for Action presented by Bank and fund managements. The Committee noted the progress achieved since its last meeting and expressed appreciation for the joint efforts of the Bank and the Fund.

    8. Ministers agreed with the analysis of Fund and Bank staff that there were a number of HIPCs for whom the burden of debt, including multilateral debt, was likely to remain above sustainable levels over the medium term, even with strong policies and full use of existing debt-relief mechanisms.

    9. Ministers agreed that for these countries further action is needed to address their debt problems, building on actions already being taken by official bilateral and commercial creditors. This would involve both use of existing mechanisms and new arrangements, including contributions by the IFls from their own resources, contributions by bilateral donors, and appropriate action by the Paris Club, and by other creditors.

    10. Ministers agreed that the principal goal of the proposed framework should be to ensure, for these countries, that adjustment and reform efforts are not put at risk by continued high debt and debt-service burdens. They endorsed the following six principles to guide further action, (i) The objective should be to target overall debt sustainability on a case-by-case basis, thus providing an exit strategy from the rescheduling process, (ii) Action will be envisaged only when the debtor has shown, through a track record, ability to put to good use whatever exceptional support is provided, (iii) New measures will build, as much as possible, on existing mechanisms, (iv) Additional action will be coordinated among all creditors involved, with broad and equitable participation, (v) Actions by the multilateral creditors will preserve their financial integrity and preferred creditor status, (vi) New external finance for the countries concerned will be on appropriately concessional terms.

    11. While recognizing that many important aspects of the proposed framework of action need to be further developed and refined, Ministers agreed, nevertheless, that it provided an appropriate basis for further work. They requested that the Bank and Fund—in close consultation with concerned bilateral creditors/donors/debtors, the Paris Club and other multilateral institutions—move swiftly to produce a program of action. Ministers urged that a decision be reached on this program and its financing as soon as possible, aiming to do so by the next IMF/World Bank Annual Meetings.

    Report of the Task Force on Multilateral Development Ranks

    12. The Committee welcomed this balanced and objective report prepared by its MDB Task Force, Ministers appreciated that it presented, for the first time, an overall assessment of the multilateral development hanks.

    13. Ministers believe the report provides an excellent analysis of the importance of multilateralism and the role of MDBs in a rapidly changing world. The Committee appreciated the report’s careful assessment of the performance of these five quite different institutions, with particular reference to its support for poverty reduction and sustainable development, investment in infrastructure, promotion of the private sector, operational orientation toward results on the ground, and to increasing cooperation among the MDBs.

    14. The Committee generally agreed with the report’s conclusions and recommendations, recognizing that not all apply equally to each institution. Bearing in mind the value of diversity among the MDEs, Ministers urged the MDBs to act upon relevant recommendations as a matter of priority to strengthen further their policies and practices. Ministers invited the Presidents of the MDBs to advise the Committee, in about two years’ time, on progress achieved in implementing the Task Force’s major recommendations.

    15. The Committee expressed its great appreciation and gratitude to Mr. Abdlatif Al-Hamad for his leadership as Chairman of the Task Force, as well as to the Task Force Members and the Secretariat for their dedicated and productive work over the past 15 months. The Committee requested that the report be published and widely distributed.

    Next Meeting

    16. The Committee’s next meeting will be held on September 30, 1996, in Washington, D.C.

    appendix VII Executive Directors and Voting Power on April 30, 1996
    Director

    Alternate
    Casting

    Votes of
    Votes by

    Country
    Total Votes1Percent of

    Fund Total2
    Appointed
    Karin LissakersUnited States265,518265,51817.78
    Barry S. Newman
    Stefan SchoenbergGermany82,66582,6655.54
    Bernd Esdar
    Hachiro MesakiJapan82,66582,6655.54
    Toshihiko Fukuyama
    Marc-Antoine AnthemanFrance74,39674,3964.98
    Ambroise Fayolle
    Huw EvansUnited Kingdom74,39674,3964.98
    Jon Shields
    Elected
    Willy KiekensAustria12,133
    (Belgium)Belarus3,054
    Jobann PraderBelgium31,273
    (Austria)Czech Republic6,146
    Hungary7,798
    Kazakstan2,720
    Luxembourg1,605
    Slovak Republic2,824
    Slovenia1,755
    Turkey6,67075,9835.09
    J, de Beaufort WijnholdsArmenia925
    (Netherlands)Bulgaria4,899
    Oleh HavrylyshynCroatia2,866
    (Canada)Cyprus1,250
    Georgia1,360
    Israel6,912
    Macedonia, former Yugoslav Republic of746
    Moldova1,150
    Netherlands34,692
    Romania7,791
    Ukraine10,22372,814488
    Luis E. BerrizbeitiaCosta Rica1,440
    (Venezuela)EI Salvador1,506
    Vicente J. FernandezGuatemala1,788
    (Spain)Honduras1,200
    Mexico17,783
    Nicaragua1,211
    Spain19,604
    Venezuela19,76364,2954.31
    Enzo R. Grilli (Italy)Albania603
    Nikolaos Coumbis (Greece)Greece6,126
    Italy46,157
    Malta925
    Portugal5,826
    San Marino35059,9874.02
    Ian D. Clark (Canada)Antigua and Barbuda335
    Charles X. O’Loghlin (Ireland)Bahamas, The1,199
    Barbados739
    Belize385
    Canada43,453
    Dominica310
    Grenada335
    Ireland5,500
    Jamaica2,259
    St. Kilts and Nevis315
    St. Lucia360
    St. Vincent and the Grenadines31055,5003.72
    Eva Srejber (Sweden)Denmark10,949
    Benny Andersen (Denmark)Estonia715
    Finland8,868
    Iceland1,103
    Latvia1,165
    Lithuania1,285
    Norway11,296
    Sweden16,39051,7713.47
    Abdulrahman A. Al-TuwaijriSaudi Arabia51,55651,5563.45
    (Saudi Arabia)
    Sulaiman M. Al-Turki
    (Saudi Arabia)
    Ewen L, Waterman (Australia)Australia23,582
    Jung-Ho Kang (Korea)Kiribati290
    Korea8,246
    Marshall Islands275
    Micronesia, Federated States of285
    Mongolia621
    New Zealand6,751
    Papua New Guinea1,203
    Philippines6,584
    Seychelles310
    Solomon Islands325
    Vanuatu375
    Western Samoa33549,1823.29
    A. Shakour Shaalan (Egypt)Bahrain1,078
    Yacoob Yousef MohammedEgypt7,034
    (Bahrain)Iraq5,290
    Jordan1,467
    Kuwait10,202
    Lebanon1,710
    Libya8,426
    Maldives305
    Oman1,444
    Qatar2,155
    Syrian Arab Republic2,349
    United Arab Emirates4,171
    Yemen, Republic of2,01547,6463.19
    Dmitri TulinRussia43,38143,3812.90
    (Russia)
    Aleksei V, Mozhin
    (Russia)
    J.E. Ismael (Indonesia)Cambodia900
    Latifah Merican CheongFiji761
    (Malaysia)Indonesia15,226
    Lao People’s Democratic Republic641
    Malaysia8,577
    Myanmar2,099
    Nepal770
    Singapore3,826
    Thailand5,989
    Tonga300
    Vietnam2,66641,7552,80
    Daniel Kaeser (Switzerland)Azerbaijan1,420
    Danuta (Gotz-KozierkicwiczKyrgyz Republic895
    (Poland)Roland10,135
    Switzerland24,954
    Tajikistan850
    Turkmenistan730
    Uzbekistan2,24541,2292.76
    Abbas MirakhorAfghanistan, Islamic
    (Islamic Republic of Iran)State of1,454
    Mohammed Daiïri (Morocco)Algeria9,394
    Ghana2,990
    Iran, Islamic Republic of11,035
    Morocco4,527
    Pakistan7,832
    Tunisia2,31039,5422.65
    Alexandre Kafka (Brazil)Brazil21,958
    Alberto CalderómColombia5,863
    (Colombia)Dominican Republic1,838
    Ecuador2,442
    Guyana922
    Haiti857
    Panama1,746
    Suriname926
    Trinidad and Tobago2,71839,2702,63
    K.P. Geethakrishnan (India)Bangladesh4,175
    H.B. DisanayakaBhutan295
    (Sri Lanka)India30,805
    Sri Lanka3,28638,5612.58
    Barnabas S. DlaminiAngola2,323
    (Swaziland)Botswana616
    Dinah Z. GutiBurundi822
    (Zimbabwe)Eritrea365
    Ethiopia1,233
    Gambia, The479
    Kenya2,244
    Lesotho489
    Liberia963
    Malawi759
    Mozambique1,090
    Namibia1,246
    Nigeria13,066
    Sierra Leone1,022
    Swaziland615
    Tanzania1,719
    Uganda1,589
    Zambia3,885
    Zimbabwe2,86337,3882.50
    ZHANG Zhixiang (China)China34,10234,1022,28
    HAN Mingzhi (China)
    Carlos Saito (Peru)Argentina15,621
    A. Guillermo ZoccaliBolivia1,512
    (Argentina)Chile6,467
    Paraguay971
    Peru4,911
    Uruguay2,50331,9852.14
    Yves-Marie T. KoissyBenin703
    (Côte d’Ivoire)Burkina Faso692
    Alexandre Barro ChambrierCameroon1,601
    (Gabon)Cape Verde320
    Central African Republic662
    Chad663
    Comoros315
    Congo829
    Côte d’Ivoire2,632
    Djibouti365
    Equatorial Guinea493
    Gabon1,353
    Guinea1,037
    Guinea-Bissau355
    Madagascar1,154
    Mali939
    Mauritania725
    Mauritius983
    Niger733
    Rwanda845
    São Tomé and Príncipe305
    Senegal1,439
    Togo79319,9361.34
    1,475,5233,498.815

    Voting power varies on certain matters pertaining to the General Department with use of the Fund’s resources in that Department.

    Percentages of Total votes (1,493,331) in the General Department and the Special Drawing Rights Department.

    This total does not include the votes of Bosnia and Herzegovina, Brunei Darussalam, Somalia, and South Africa, which did not participate in the 1994 Regular Election of Executive Directors. The combined votes of those members total 17,808—1.19 percent of those in the General Department and Special Drawing Bights Department.

    This total docs not include the votes of Sudan and Zaïre, which were suspended effective August 9, 1993 and June 2, 1994, respectively, pursuant to Article XXVI Section 2(b) of the Articles of Agreement.

    This figure may differ from the sum of the percentages shown for individual Directors because of rounding.

    appendix VIII Changes in Membership of Executive Board

    Changes in membership of the Executive Board between May 1, 1995 and April 30, 1996 were as follows:

    Erika Wagenhoefer (Germany) relinquished her duties as Alternate Executive Director to Stefan Schoenberg (Ger-manv), effective June 30, 1995.

    Bernd Esdar (Germany) was appointed as Alternate Executive Director to Stefan Schoenberg (Germany), effective July 15, 1995.

    Michel Sirat (France) relinquished his duties as Alternate Executive Director to Marc-Antoine Autheman (France), effective August 28,1995.

    Ambroise Fayolle (France) was appointed as Alternate Executive Director to Mare-Antoine Autheman (France), effective August 29, 1995.

    Krzysztof Link (Poland) relinquished his duties as Alternate Executive Director to Daniel Kaeser (Switzerland), effective August 31, 1995.

    Danuta Gotz-Kozierkiewicz (Poland) was appointed as Alternate Executive Director to Daniel Kaeser (Switzerland), effective September 1, 1995.

    Muhammad Al-Jasser (Saudi Arabia) resigned as Executive Director for Saudi Arabia, effective October 31, 1995.

    Giulio Lanciotti (Italy) resigned as Executive Director for Albania, Greece, Italy, Malta, Portugal, and San Marino, effective October 31, 1995.

    Garrett F. Murphy (Ireland) relinquished his duties as Alternate Executive Director to Ian D. Clark (Canada), effective October 31,1995.

    Enzo R. Grilli (Italy) was elected Executive Director for Albania, Greece, Italy, Malta, Portugal, and San Marino, effective November 1,1995.

    Charles X. O’Loghlin (Ireland) was appointed as Alternate Executive Director to Ian D. Clark (Canada), effective November 1,1995.

    Abdulrahman A. Al-Tuwaijri (Saudi Arabia), formerly Alternate Executive Director to Muhammad Al-Jasser (Saudi Arabia) was elected Executive Director for Saudi Arabia effective November 16, 1995.

    Jarle Bergo (Norway) resigned as Executive Director for Denmatk, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden, effective December 31, 1995.

    W. Hettiarachchi (Sri Lanka) relinquished his duties as Alternate Executive Director to K.P. Geethakrishnan (India), effective December 31, 1995.

    WEI Benhua (China) relinquished his duties as Alternate Executive Director to ZHANG Ming (China), effective December 31, 1995.

    Benny Andersen (Denmark) was appointed as Alternate Executive Director to Eva Srejber (Sweden), effective January 1, 1996.

    H.B. Disanayaka (Sri Lanka) was appointed as Alternate Executive Director to K.P. Geethakrishnan (India), effective January 1, 1996.

    Eva Srejber (Sweden), formerly Alternate Executive Director to Jarle Bergo (Norway) was elected Executive Director for Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden, effective January 1, 1996.

    HAN Mingzhi (China) was appointed as Alternate Executive Director to ZHANG Ming (China), effective January 2, 1996.

    Sulaiman M. Al-Turki (Saudi Arabia) was appointed as Alternate Executive Director to Abdulrahman Al-Tuwaijri (Saudi Arabia), effective February 20, 1996.

    ZHANG Ming (China) resigned as Executive Director for China, effective February 29, 1996.

    ZHANG Zhixiang (China) was elected Executive Director for China, effective March 1, 1996.

    The following served at certain meetings of the Executive Board during 1995/96 as Temporary Alternate Executive Directors to the Executive Directors indicated:

    Temporary AlternateExecutive Director for Whom
    Executive DirectorTemporary Alternate Served
    John M. Abbott (United States)Karin Lissakers (United States)
    John O. Aderibigbe (Nigeria)Barnabas S. Dlamini (Swaziland)
    Meekal A. Ahmed (Pakistan)Abbas Mirakhor (Iran, Islamic Republic of)
    Patrick A. Akatu (Nigeria)Barnabas S. Dlamini (Swaziland)
    Mario B. Aleman (Nicaragua)Luis E. Berrizbeitia (Venezuela)
    Saleh Eid Al-Huseini (Saudi Arabia)Muhammad Al-Jasser (Saudi Arabia)
    Abdulrahman A. Al-Tuwaijri (Saudi Arabia)
    Benny Andersen (Denmark)Jarle Bergo (Norway)
    Christopher Austin (United Kingdom)Huw Evans (United Kingdom)
    Taye Berrihun (Ethiopia)Barnabas S. Dlamini (Swaziland)
    Rita D. Bessone Basto (Portugal)Giulio Lanciotti (Italy)
    Enzo R. Grilli (Italy)
    Jitendra G. Borpujari (India)Abdulrahman A. Al-Tuwaijri (Saudi Arabia)
    Peter I. Botoucharov (Bulgaria)J. de Beaufort Wijnholds (Netherlands)
    Martha Brettschneider (United States)Karin Lissakers (United States)
    Kathleen Byrne (United States)Karin Lissakers (United States)
    Pierre Cailleteau (France)Marc-Antoine Autheman (France)
    Alan G. Cathcart (United Kingdom)Huw Evans (United Kingdom)
    Amoy Chang Fong (Trinidad and Tobago)Alexandre Kafka (Brazil)
    Roberto F. Cippa (Switzerland)Daniel Kaeser (Switzerland)
    Ana Lucia Coronel (Ecuador)Alexandre Kafka (Brazil)
    Jose Antonio Costa (Argentina)Carlos Saito (Peru)
    Ákos Cserés (Hungary)Willy Kiekens (Belgium)
    Daniel Daco (Belgium)Willy Kiekens (Belgium)
    Johanne W. Dagustun (United Kingdom)Huw Evans (United Kingdom)
    Dominique Desruelle (France)Marc-Antoine Autheman (France)
    Christoph Karl Duenwald (Canada)lan D. Clark (Canada)
    Maiga Dzervite (Latvia)Jarle Bergo (Norway)
    Julio C. Estrella (Dominican Republic)Alexandre Kafka (Brazil)
    Salam K. Fayyad (Jordan)A. Shakour Shaalan (Egypt)
    Raphael Ferrillo (Switzerland)Daniel Kaeser (Switzerland)
    Laurent Fontaine (France)Marc-Antoine Autheman (France)
    Shunichi Fukushima (Japan)Hachiro Mesaki (Japan)
    Antonio Galicia MexicoLuis E. Berrizbeitia (Venezuela)
    Toufic K. Gaspard (Lebanon)A. Shakour Shaalan (Egypt)
    Danute Giga (Latvia)Jarle Bergo (Norway)
    Eva Srejber (Sweden)
    Massimo Giulimondi (Italy)Giulio Lanciotti (Italy)
    Enzo R. Grilli (Italy)
    Rachel Glennerster (United Kingdom)Huw Evans (United Kingdom)
    Hassan Golriz (Iran, Islamic Republic of)Abbas Mirakhor (Iran, Islamic Republic of)
    Celia M. Gonzalez (Philippines)Ewen L. Waterman (Australia)
    Biruté Grikinyté (Lithuania)Jarle Bergo (Norway)
    Eva Srejber (Sweden)
    Andreas Guennewich (Germany)Stefan Schoenberg (Germany)
    Javier Guzmán-Calafell (Mexico)Luis E. Berrizbeitia (Venezuela)
    Dalia Sami Hakura (Jordan)A. Shakour Shaalan (Egypt)
    Jérôme Hamilius (Luxembourg)Willy Kiekens (Belgium)
    Mohamed Ali Hammoudi (Algeria)Abbas Mirakhor (Iran, Islamic Republic of)
    HE Jianxiong (China)ZHANG Ming (China)
    ZHANG Zhixiang (China)
    Robert J. Heinbuecher (Germany)Stefan Schoenberg (Germany)
    Kerstin M. Heinonen (Finland)Eva Srejber (Sweden)
    Oussama A. Himani (Lebanon)Muhammad Al-Jasser (Saudi Arabia)
    Abdulrahman A. Al-Tuwaijri (Saudi Arabia)
    HUANG Xinghai (China)ZHANG Ming (China)
    Gerrit Hendrik Huisman (Netherlands)J. de Beaufort Wijnholds (Netherlands)
    Garbis M. Iradian (Canada)A. Shakour Shaalan (Egypt)
    Shinya Ishida (Japan)Hachiro Mesaki (Japan)
    Abdel Rehman Ismael (Mauritius)Yves-Marie T. Koissy (Côte d’Ivoire)
    Ourkali Issaev (Kyrgyz Republic)Daniel Kaeser (Switzerland)
    Timur Issataev (Kazakstan)Willy Kiekens (Belgium)
    Hossein Javaheri (Iran, Islamic Republic of)Abbas Mirakhor (Iran, Islamic Republic of)
    Patrick J. Jilek (Australia)Ewen L. Waterman (Australia)
    Joan John (Trinidad and Tobago)Alexandre Kafka (Brazil)
    Jiri J. Jonás (Czech Republic)Willy Kiekens (Belgium)
    J. Mills Jones (Liberia)Barnabas S. Dlamini (Swaziland)
    José Justiniano (Bolivia)Carlos Saito (Peru)
    Teruhide Kanada (Japan)Hachiro Mesaki (Japan)
    Ramalinga Kannan (India)K.P. Geethakrishnan (India)
    Heinz Kaufmann (Switzerland)Daniel Kaeser (Switzerland)
    Werner Ch. Keller (Switzerland)Daniel Kaeser (Switzerland)
    Aguil M. Koulizade (Azerbaijan)Daniel Kaeser (Switzerland)
    Ekaterina Kouprianova (Russia)Dmitri V. Tulin (Russia)
    Kwassivi Kpetigo (Togo)Yves-Marie T. Koissy (Côte d’Ivoire)
    Kudiwu Tuseno-Mino (Zaire)Yves-Marie T. Koissy (Côte d’Ivoire)
    Vural Kural (Turkey)Willy Kiekens (Belgium)
    Georgios A. Kyriacou (Cyprus)J. de Beaufort Wijnholds (Netherlands)
    Nicole L. Laframboise (Canada)Ian D. Clark (Canada)
    Jorge Leiva (Chile)Carlos Saito (Peru)
    David G. Loevinger (United States)Karin Lissakers (United States)
    Boris M. Lvin (Russia)Dmitri V. Tulin (Russia)
    Than Lwin (Myanmar)J.E. Ismael (Indonesia)
    John Mafararikwa (Zimbabwe)Barnabas S. Dlamini (Swaziland)
    Mohammad-Hadi Mahdavian (Iran, Islamic Republic of)Abbas Mirakhor (Iran, Islamic Republic of)
    Yossi Margoninsky (Israel)J. de Beaufort Wijnholds (Netherlands)
    J.C. Martinez Oliva (Italy)Giulio Lanciotti (Italy)
    Enzo R. Grilli (Italy)
    Melhem F. Melhem (Lebanon)Muhammad Al-Jasser (Saudi Arabia)
    Abdulrahman A. Al-Tuwaijri (Saudi Arabia)
    M.J. Mojarrad (Iran, Islamic Republic of)Abbas Mirakhor (Iran, Islamic Republic of)
    Iljae Moon (Korea)Ewen L. Waterman (Australia)
    Helio Mori (Brazil)Alexandre Kafka (Brazil)
    George Mucibabici (Romania)J. de Beaufort Wijnholds (Netherlands)
    James A.K. Munthali (Malawi)Barnabas S. Dlamini (Swaziland)
    Melih Nemli (Turkey)Willy Kiekens (Belgium)
    Simon N’guiamba (Cameroon)Yves-Marie T. Koissy (Côte d’lroire)
    Jean-Christian Obame (Gabon)Yves-Marie T. Koissy (Côte d’Ivoire)
    Sean O’Connor (Canada)Ian D. Clark (Canada)
    Toshio Oya (Japan)Hachiro Mesaki (Japan)
    Axel R. Palmason (Iceland)Eva Srejber (Sweden)
    Helene Paris (France)Marc-Antoine Autheman (France)
    Yasmin Patel (Mozambique)Barnabas S. Dlamini (Swaziland)
    Jarmo Pesola (Finland)Jarle Bergo (Norway)
    Eva Srejber (Sweden)
    Hinauri Petana (Western Samoa)Ewen L. Waterman (Australia)
    Murray Petrie (New Zealand)Ewen L. Waterman (Australia)
    Carsten F. Pillath (Germany)Stefan Schoenberg (Germany)
    Neeraj Prasad (India)K.P. Geethakrishnan (India)
    Roderick Rainford (Jamaica)Ian D. Clark (Canada)
    Ganga P. Ramdas (United States)Alexandre Kafka (Brazil)
    Vladimir Rigász (Slovak Republic)Willy Kiekens (Belgium)
    James Roaf (United Kingdom)Huw Evans (United Kingdom)
    Sadok Rouai (Tunisia)Abbas Mirakhor (Iran, Islamic Republic of)
    Angel Ruocco (Venezuela)Luis E. Berrizbeitia (Venezuela)
    Matthew W. Ryan (United States)Karin Lissakers (United States)
    Daniel Saha (Cameroon)Yves-Marie T. Koissy (Côte d’Ivoire)
    Khaled I. Sakr (Egypt)A. Shakour Shaalan (Egypt)
    Floris A. Schilthuis (Netherlands)J. de Beaufort Wijnholds (Netherlands)
    Giuseppe Schlitzer (Italy)Giulto Lanciotti (Italy)
    Enzo R. Grilli (Italy)
    Sigurd Simonsen (Norway)Jarle Bergo (Norway)
    Eva Srejber (Sweden)
    Tarmiden Sitorus (Indonesia)J.E. Ismael (Indonesia)
    SONG Jianqi (China)ZHANG Ming (China)
    ZHANG Zhixiang (China)
    David L. Stanton (United Kingdom)Huw Evans (United Kingdom)
    Julio Roberto Suárez (Guatemala)Luis E. Berrizbeitia (Venezuela)
    Khamsouk Sundara (Lao PDR)J.E. Ismael (Indonesia)
    Yoshiyuki Tahara (Japan)Hachiro Mesaki (Japan)
    Vishwapati Trivedi (India)K.P. Geethakrishnan (India)
    Laura B.J. van Geest (Netherlands)J. de Beaufort Wijnholds (Netherlands)
    Vitali Y. Verjbitski (Russia)Dmitri V. Tulin (Russia)
    Andrei Vernikov (Russia)Dmitri V. Tulin (Russia)
    Ruediger von Kleist (Germany)Stefan Schoenberg (Germany)
    Anna Wechsberg (United Kingdom)Huw Evans (United Kingdom)
    Jeremy B. Wire (United States)Karin Lissakers (United States)
    WU Hongwei (China)ZHANG Ming (China)
    Matthew Yiu (Hong Kong)Huw Evans (United Kingdom)
    Edgar L. Zamalloa (Peru)Carlos Saito (Peru)
    ZHENG Hong (China)ZHANG Ming (China)
    appendix IX Aministrative and Capital Budgets, Staffing, and Organization

    Financial Year 1996

    Budgets and Expenditures

    The Fund’s Administrative and Capital Budgets are considered to the context of rolling three-year and five-year medium-term budget outlooks that are reviewed once a year by the Executive Board, The medium-term outlook endorsed by the Board in December 1995 reflected the Fund management’s commitment to hold expenses to a minimal real growth level. In line with this policy, resources will be redeployed to provide for strengthened Fund surveillance, particularly in the areas of increased contact with member countries, the statistical data provision and publication initiative, and the expansion of work on capital markets. The outlook for the Capital Budget is consistent with the strategy to continue the major building projects that have already been approved and to continue with other capital investments that will result in cost savings or are required by building codes.

    The Fund’s Administrative Budget for the financial year ended April 30, 1996 (1995/96) was $475.1 million, and $125.2 million was approved for projects beginning in financial year 1996 for the Capital Budget. The cost of major Fund activities is shown in Table IX.1. Actual administrative expenditures during financial year 1996 totaled $470.8 million, and capital project disbursements totaled $34.8 million, including S19.8 million for major building projects (Table IX.2). During the year the Board approved the purchase of a building adjacent to the Fund’s headquarters, which will allow staff who are currently in more expensive leased space to move back to a building adjacent to the headquarters complex. Efforts also continued to increase the efficiency of the Fund and reduce costs. These included increased automation of Fund work activities and improvements in administrative procedures.

    During 1995/96, Administrative Budget resources were used to support the work of the Fund in the following proportions: surveillance and use of Fund resources, with 112 countries classified as program/intensive, 68 resident representative posts (an increase of 2 over the previous year), and an estimated 269.1 staff years of Fund-financed technical assistance 166.2 percent of expenses); external relations activities to continue to provide a greater openness of the Fund’s policies and operations (4.3 percent), administrative support, where investments in technology and continuing work-practice improvements have combined to produce a series of savings in the diverse activities within this category (18, 8 percent); Board of Governors (1.7 percent); and Executive Board (9,0 percent). The distribution of administrative costs by function for the financial year is shown in Chart 11.

    Table IX.1COST OF MAJOR FUND ACTIVITIES, FINANCIAL YEARS 1995-97(In millions of U.S. dollars)
    ActivityFinancial

    Year

    1995
    Percent

    of

    Total
    Financial

    Year

    1996
    Percent

    of

    Total
    Budget

    Financial

    Year 1997
    Percent

    of

    Total
    Stall and management
    Surveillance125.027.0129.627.5137.928.1
    Use of Fund resources109.623.7112.323.9117.824.0
    Technical assistance69.215.069.614.873.615.0
    External relations20.14.320.54.321.44.4
    Administrative support88.419.188.518.887.717.9
    Subtotal412.389.2420.489.3438.489.4
    Executive Board141.38.942.39.043.48.8
    Board of Governors28.61.98.01.78.71.8
    Subtotal49.910.850.310.752.110.6
    Total462.2100.0470.8100.0490.5100.0

    The Executive Board costs include salaries and benefits of Executive Directors, Alternates, and Assistants; business and other travel; communications; building occupancy; books and printing; supplies and equipment; data processing; other miscellaneous costs of Executive Directors’ offices, and the costs of staff support services provided for Executive Directors.

    The costs of the Board of Governors consist mainly of the travel and subsistence of Governors, the costs of staff support services provided for the Board of Governors, and other miscellaneous administrative services.

    Table IX.2ADMINISTRATIVE AND CAPITAL BUDGETS, FINANCIAL YEARS 1994-971(Values expressed in thousands of U.S. dollars)
    Financial

    Year Ended

    April 30, 1994:

    Actual

    Expenses
    Financial

    Year Ended

    April 30, 1995:

    Actual

    Expenses
    Financial

    Year Ended

    April 30, 1996:

    Actual

    Expenses
    Financial

    Year Ending

    April 30, 1997:

    Budget
    Administrative Budget
    I. Personnel expenses
    Salaries192,920202,885210,216222,450
    Other personnel expenses122,785127,143131,115132,070
    Subtotal315,705330,028341,331354,520
    II. Travel expenses
    Business travel41,82041,08139,62443,255
    Other travel27,09931,28726,45826,650
    Subtotal68,91972,36966,08269,905
    III. Other administrative expenses
    Communications10,30310,1269,86910,780
    Building occupancy37,61339,80040,24242,410
    Books and printing7,0407,6098,3719,085
    Supplies and equipment8,6147,9357,2198,325
    Data processing15,85716,00618,12918,670
    Miscellaneous8,9569,37712,83112,815
    Subtotal88,38390,85296,662102,085
    IV. Reimbursements–24,712–31,007–33,239–35,965
    Total Administrative Budget448,295462,242470,836490,545
    Less: Reimbursement for administering the SDR Department–5,392–6,143–5,841–5,793
    Reimbursement for administering the SAF/ESAF-26,392-33,079-35,634-39,551
    Net Administrative Budget expenses2416,511423,020429,361445,201
    Capital Budget
    Capital project budgets3124,76017,445125,20020,123
    Capital project disbursements25,97532,88934,800191,900

    Administrative Budget as approved by the Board for the financial year ending April 30, 1997, compared with actual expenses for the financial years ended April 30, 1994, April 30, 1995, and April 30, 1996; and Capital Budgets as approved by the Board for capital projects in financial years 1994, 1995, 1996, and 1997. Due to rounding, details may not add to total.

    Net Administrative Budget expenses exclude valuation or loss on administrative currency holdings.

    Multiyear Capital Budgets for projects beginning in each financial year.

    Organization and Staffing

    As part of the effort to strengthen the Fund’s evaluation functions (see Box 13), the Office of Internal Audit and Renew has been reorganized, effective May 1, 1996, and redesignated the Office of Internal Audit and Inspection, The departmental organization of the Fund and the number of budgeted regular staff by department at the end of the financial year are shown in Chart 12. The responsibilities of Fund departments are described in Box 14.

    At the end of the financial year, there were 2,198 staff members from 121 countries (see Table IX.3), compared with 2,184 at the end of financial year 1995. This staff was supplemented by contractual and other temporary staff years for a total of 2,577 effective years in financial year 1996 (2,588 in financial year 1995). The Office of Executive-Directors totaled 234 effective years in financial year 1996 (233 in financial year 1995), and externally financed technical assistance experts and related overhead resources were 116 years in financial year 1996 (88 in financial year 1995).

    Chart 11COST OP MAJOR ACTIVITIES, FINANCIAL YEAR 1996

    (As a percentage of total costs)

    Note: Information is based on financial year outturn of expenditure The cost of general supervision, training, professional development, and leave has been distributed proportionally to each of the other categories

    Financial Year 1997

    Budgets and Expenditures

    In April 1996, the Board approved an Administrative Budget for 1996/97 of $490.5 million, a 32 percent increase over the approved budget for the previous year, and a capital project budget of S20.1 million ($18.1 million for facility improvements, new technology, and electronic data-processing equipment, and S2 million for initial planning and design associated with the new building). The 1996/97 Administrative Budget represents a continuation of the existing policy of budgetary consolidation, which calls for holding expenses to a minimal real growth level. A small reduction in staffing was made possible through the ongoing introduction of new technologies, capital investments, and the continued substitution of external funding for some technical assistance experts who were previously financed from Fund resources. The Capital Budget represents a continuation of plans for completing major building projects, replacing older facilities and electronic data-processing equipment, and other medium-term programs. Chart 13 summarizes the five-year Capital Budget Plan.

    Organization and Staffing

    The total authorized staffing of the Fund was reduced by 40 staff positions in 1995/96 and will be reduced by a further 6 positions in 1996/97. The main emphasis of the work program of the institution—namely the strengthening of surveillance, work associated with the use of Fund resources, the strengthening of the Fund’s financial resources, and ensuring that the institution continues to meet the changing needs of the membership—will be met through internal redeployment, The effect of eliminating positions will be moderated through the filling of existing vacancies.

    Box 13THE EVALUATION FUNCTION IN THE FUND

    The Fund has a long tradition both of extensive interdepartmental review of its operational activities on a day-to-day basis, and of periodic in-house evaluation of core areas of its work that is reviewed, by the Board. Occasional studies are also commissioned from outside experts on aspects of that work. Partly for this reason, and in keeping with the objective of maintaining a lean organizational structure and containing costs, the Fund—unlike most multilateral development banks—does not have a separate evaluation unit.

    During 1995/96, the Board reexamined the Fund’s evaluation Functions, At a meeting in February 1996, it confirmed its desire to strengthen these functions. It adopted, for a two-year trial period, a pragmatic approach on the basis of which it would identify annually with management which activities of the Fund would warrant an evaluation study, and would set the terms of reference for each project, including the selection of outside experts. The number of studies would realistically be limited to two or three a year.

    It was also agreed that the existing practices for in-house evaluation carried out by the staff should be strengthened, as well as the review and evaluation work undertaken by the Board as part of its regular activities.

    As part of this effort, the Office of Internal Audit and Review was reorganized and redesignated the Office of Internal Audit and Inspection, effective May 1, 1996. The mandate of the office was expanded to permit it to conduct more reviews of all aspects of the Fund’s organizational structure and work practices. It could also be drawn upon to assist the Board and management in developing and facilitating the agreed evaluation projects.

    Chart 12INTERNATIONAL MONETARY FUND: CHART OF ORGANIZATION

    Note: Organization as of April 30, 1996. Parentheses indicate number of budgeted regular staff.

    1 As of May 1, 1996, the Office of Internal Audit and Review was reorganized as the Office of Internal Audit and Inspection.

    Chart 13FINANCIAL YEAR 1996 CAPITAL BUDGET AND FIVE-YEAR PLAN

    (In millions of U.S. dollars)
    Table IX.3NATIONALITY DISTRIBUTION OF PROFESSIONAL STAFF BY REGION, 1980, 1990 AND 1995(In percent)
    Region1198019901995
    Africa3.85.85.3
    Asia12.312.715.1
    Japan1.41.91.7
    Other Asia10.910.813.4
    Europe39.535.133.3
    France6.95.55.0
    Germany3.74.34.1
    Italy1.71.42.3
    United Kingdom8.28.07.3
    Other Europe19.015.914.6
    Middle East5.45.55.7
    Western Hemisphere39.141.040.6
    Canada2.62.83.5
    United States25.925.925.6
    Other Western Hemisphere10.612.311.5
    Total100.0100.0100.0

    Regions are defined on the basis of the country distribution of the Fund’s area departments. The Asian region includes the countries in both the Central Asia Department and the Southeast Asia and Pacific Department; the European region includes countries in both the European I Department and the European II Department.

    Recruitment and Composition of Staff

    In the five year period prior to 1990, the Fund recruited annually around 45 support stall and 75 professional staff, the majority of the latter being economists. In response both to the enlargement of Fund membership and the need to relieve growing work pressures, the Board approved an expansion of the staff in the early 1990s, and the regular and fixed-term staff increased from about 1,750 to the current level of around 2,200. The annual intake of staff rose to a record 279 in 1992 and slowed to 234 in 1993 before falling back to 131 in 1995, slightly above the levels of the late 1980s. In 1995 the Fund hired 70 economists, 18 noneconomist professional staff, and 43 support staff. It is expected that this pattern of recruitment will continue in the short term. During the financial year about 35 staff members were assigned to other private and public institutions.

    Many economists join the staff through the Fund’s Economist Program on completion of their graduate studies. The Program accounts for around 40 percent of the total intake of economists; the remainder are recruited at mid-career, and a few staff members join the Fund on two- or three-year non-convertible assignments (“secondments”).

    Box 14DEPARTMENTS OF THE FUND AND THEIR MAJOR RESPONSIBILITIES

    The major activities of the Fund comprise the areas of surveillance, the use of Fund resources, and technical assistance, and its departmental structure is designed to support these activities (sec Chart 12). Surveillance is at the heart of the Fund’s operations. Recent developments, including the trend toward globalization, have reaffirmed the essential need for surveillance to foster policy cooperation. Not surprisingly, therefore, surveillance-related activities, including multilateral surveillance work and the data dissemination initiative, form the largest category of the Fund’s work load, directly absorbing about a quarter of staff resources. Use of Fund resources work—including program design, negotiation, and implementation; mobilizing other financial resources; financial operations; and policy development, research, and evaluation work related to the use of Fund resources—absorbs one fifth of staff resources. Technical assistance and training, mainly in the central banking, fiscal, and statistical fields, draw on more than one tenth of staff resources. The remainder of staff resources is devoted to administrative support, support for the Board of Governors and Executive Board, training, professional development, and related activities, and external relations.

    Area Departments

    The primary function of the area departments is to advise management and the Board on matters concerning the economies and economic policies of the member and nonmember countries in their areas, to assist in the formulation of Fund policies in relation to these countries, and to carryout such policies. The area departments are also at the center of the use of Fund resources. Area department staff negotiate arrangements for the use of Fund resources with member country authorities for approval by the Board and review and document performance under Fund-supported arrangements, In cooperation with other departments, the area departments provide these countries with policy advice and technical assistance and maintain contact with regional organizations and multilateral institutions in their areas.

    The bulk of the Fund’s bilateral surveillance work is carried out by the area departments through their direct contacts with member countries, supplemented by staff in functional departments, in part through their participation in area department missions. In response to the need for strengthened surveillance, increased attention is being given to those economies that are of systemic importance to the international monetary system, In addition, in 1996/97, the number of resident representatives assigned to member countries is being expanded.

    Functional and Special Services Departments

    The Fiscal Affairs Department is engaged in all Fund activities involving the public finance of member countries. It participates in area department missions focusing on fiscal issues, reviews the fiscal content of Fund policy advice and of Fund-supported adjustment programs, and provides technical assistance in public finance. It also conducts research and policy studies on fiscal issues and is primarily responsible for work on income distribution and poverty, social safety nets, public expenditure policy issues, and the environment.

    The IMF Institute provides technical assistance through training officials of member countries, particularly developing countries, in a wide range of topics, including financial programming and policy, external sector policies, balance of payments methodology, national accounts and government finance statistics, and public finance.

    The Legal Department advises management, the Board, and the staff on the applicable rules of law. It prepares most of the decisions and other legal instruments necessary for the Fund’s activities. It acts as counsel to the Fund in litigation and arbitration cases, provides technical assistance to members for legislative reform, and responds to inquiries of national authorities and international organizations on the law of the Fund.

    The Monetary and Exchange Affairs Department provides technical assistance to central banks of members in a number of areas, particularly on monetary and exchange rate policies, banking supervision, and prudential regulation, and on issues related to the functioning of payments systems. Specialized short-and long-term experts are placed in central banks that request assistance in these areas. The department supports the work of area departments, by reviewing topics in its area of expertise in the context of surveillance and requests for the use of Fund resources. It also contributes to the exercise of Fund jurisdiction on exchange practices and restrictions. In addition, it carries out research and training, including through workshops and seminars, in coordination with cooperating central banks.

    The Policy Development and Review Department plays a central role in the design and implementation of Fund financing facilities and operations related to the use of Fund resources under those facilities, in the development and application of policies regarding Fund surveillance, and in other areas as directed by management. Together with the Research Department, it is a lead department in the areas of multilateral surveillance, policy coordination, and associated review and support activities. It carries out its responsibilities through the preparation of Board papers, through the review process, and through participating in operational work, including country missions. In conjunction with area departments, it has a large role in mobilizing other financial resources for members availing themselves of Fund assistance, including work on debt and program financing (through the Paris Club and international banks).

    The Research Department carries out policy analysis and research in areas relevant to the Fund’s work. This includes research on the international monetary system, the world economic situation and outlook, issues of external debt and the international financial markers, the international adjustment process and program design, and exchange rates, capital flows, and trade Flows. The department plays a leading role in the development of Fund policy directed at the working of the international monetary system, the surveillance function, and, in cooperation with other departments, in the analysis and design of the Fund’s policy advice to member countries. It also coordinates the semiannual interdepartmental forecasting exercise and the drafting of the World Economic Outlook and the International Capital Markets reports, as well as the analysis for the Group of Seven policy coordination exercise and background notes for other ministerial meetings and for the Board’s seminars on World Economic and Market Developments. The department develops and maintains the Fund’s contacts with the academic community and with other research organizations.

    The Statistics Department has responsibility for assembling and maintaining a time-series database of country, regional, and global economic and financial statistics and for the review of country data in support of the Fund’s surveillance role. It is also responsible for the development of statistical concepts in balance of payments, government finance, and money and financial statistics, and for producing methodological manuals in these areas. The department provides technical assistance and training in support of the development of members’ statistical systems and produces the Fund’s statistical publications. In addition, it is responsible for the development and maintenance of standards for the dissemination of data by member countries.

    The main functions of the Treasurer’s Department are (1) the formulation of the Fund’s financial policies and practices; (2) the conduct and control of all financial operations and transactions in the General Department, SDR Department, and Administered Accounts (including the ESAF Trust and related accounts); (3) the payment and control of expenditures under the administrative and capital budgets; and (4) the maintenance of the Fund’s accounts and financial records. In this context, the department undertakes work on quotas, borrowing, the Fund’s liquidity, and the Fund’s policies on its currency and gold holdings. It reviews the financial terms and conditions of Fund operations and transactions, including repurchases, the level of precautionary balances and burden-sharing arrangements, the income target, the rate of charge, overdue financial obligations, and policies on the SDR, including the method of valuing the SDR and SDR interest rate. The department is responsible for the Fund’s policies on accounting and on financing its capital projects and expenditures.

    Information and Liaison

    The External Relations Department is concerned with the editing, production, and promotion of the Fund’s nonstatistical publications; the provision of information services to the press and the general public; and maintenance of contacts with nongovernmental organizations and member country parliamentary bodies.

    The Fund’s Offices in Europe, in Geneva, and at the United Nations are charged with maintaining close contacts with other international and regional institutions in the areas of their responsibilities.

    Support Services

    This category comprises the Administration Department, the Secretary’s Department, Bureaus, and Offices. The Administration Department is responsible for the personnel and space management activities of the Fund. It manages recruitment, training, and career planning programs; supervises the operation of the headquarters building and leased space; provides administrative services to the Fund; and administers the Joint Fund-Bank Library, The Secretary’s Department assists management in preparing and coordinating the work program of the Board and other official bodies, including scheduling and assisting in the conduct of Board meetings The department also manages the Annual Meetings, in cooperation with the World Bank, and is responsible for the Fund’s archives, communications, and security program. The Fund’s bureaus and offices are responsible for such aspects as computer services, language services, auditing, budget matters, technical assistance, work practices, and investments under the staff retirement plan.

    The Fund’s recruitment policy is determined by Article XII, Section 4(d) of the Articles of Agreement, which states: “In appointing the staff the Managing Director shall, subject to the paramount importance of securing the highest standards of efficiency and of technical competence, pay due regard to the importance of recruiting personnel on as wide a geographical basis as possible.” At present, 125 of the Fund’s 181 member countries are represented on the staff. While striving to ensure the high standard of its staff, the Fund seeks to achieve a fair representation among regions and countries and also to maintain an appropriate gender balance. The Fund recently hired a Special Advisor on Staff Diversity to help to ensure diversity and nondiscrimination among the staff. Table IX.3 shows the changes in the nationality distribution over the past 15 years for Fund staff in the professional ranges.

    The salary structure for the Fund’s staff is reviewed and, if warranted, adjusted annually on the basis of comparisons with the salaries paid by selected private financial and industrial firms and by public sector organizations in the United States, France, and Germanv. The objective is to maintain Fund salaries at an internationally competitive level that supports the recruitment and retention of a staff drawn from the full range of the Fund’s members and of the high caliber needed to meet the needs of the organization’s member countries.

    Building Projects

    In the late 1960s, the Fund adopted a long-term strategy for housing its staff in one location in the Washington, D.C. central business district and designed a headquarters building that could be expanded, over time, as the Fund’s need for space increased. The first phase of the headquarters building was completed in the early 1970s, and a second phase was finished ten years later.

    Commercial space was leased several blocks away from headquarters in the late 1980s and early 1990s to accommodate the Fund’s growth in this period. When it became clear that there would be a long-term need for more space, management and the Board reassessed the Fund’s space strategy and budgetary costs in light of other available options. When that strategy was reconfirmed, plans were made to complete the final phase of the headquarters building and to purchase an existing building immediately adjacent to headquarters.

    The final phase of the headquarters building is well under way and will be ready for its first occupants in early 1998. The newly acquired building will be ready some time later, after the current tenant has left and the building has been renovated.

    When these two projects have been completed, all of the staff will be housed in two immediately adjacent buildings owned by the Fund, occupancy costs will be reduced, and the Fund’s long-term space and budget strategies will have been realized.

    Appendix x Financial Statements

    Report of the External Audit Committee

    Washington, D.C.

    June 20, 1996

    Authority and Scope of the Audit

    In accordance with Section 20(b) of the By-Laws of the International Monetary Fund, we have audited the financial statements of the International Monetary Fund covering the:

    • General Department for the year ended April 30, 1996,

    • SDR Department for the year ended April 30, 1996, and

    • Accounts Administered by the International Monetary Fund for the year ended April 30, 1996, which consist of the:

      • Enhanced Structural Adjustment Facility Trust,

      • Enhanced Structural Adjustment Facility Administered Accounts:

        • — Austria,

        • — Belgium,

        • — Botswana,

        • — Chile,

        • — Greece,

        • — Indonesia,

        • — Islamic Republic of Iran,

        • — Portugal,

        • — Saudi Fund for Development Special Account,

      • Administered Accounts Established at the Request of Members:

        • — Administered Account Japan,

        • — Administered Technical Assistance Account Japan,

        • — Framework Administered Account for Technical Assistance Activities,

        • — Administered Account for Rwanda,

      • Trust Fund,

      • Supplementary Financing Facility Subsidy Account,

      • Retired Staff Benefits Investment Account.

    Our audit was conducted in accordance with generally accepted auditing standards and included reviews of accounting and internal control systems and tests of the accounting records. We evaluated the extent and results of the work of the outside accounting firm as well as that of the Office of Internal Audit and Inspection of the International Monetary Fund and also used other audit procedures as deemed necessary.

    Audit Opinion

    In our opinion, the financial statements of the General Department, the SDR Department, and the Accounts Administered by the International Monetary Fund, including new accounts established in the 1996 financial year, have been prepared in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding year and give a true and fair view of the respective financial positions and the allocations and holdings of SDRs as at April 30, 1996, and of the financial results of operations and transactions during the period then ended.

    EXTERNAL AUDIT COMMITTEE:

    /s/ Ioane Naiveli, Chairman (Fiji)

    /s/ Richard B. Calahan (United States)

    /s/ Jiří Škoda (the Czech Republic)

    General Department

    Balance Sheets as at April 30, 1996 and 1995

    (In thousands of SDRs)(Note 1)
    19961995
    Assets
    General Resources Account
    Currencies and securities (Notes 2 and 5)144,181,448145,298,032
    SDR holdings (Note 3)824,7281,000,655
    Gold holdings (Note 4)3,624,7973,624,797
    Charges receivable (Note 5)1,199,7621,517,412
    Interest and other receivables (Notes 2 and 5)64,09097,827
    Other assets (Note 6)141,673120,064
    Total General Resources Account150,036,498151,658,787
    Special Disbursement Account
    Structural adjustment facility loans1,544,8181,650,737
    Interest receivable5,9819,889
    Investments184,910
    Total Special Disbursement Account1,550,7991,845,536
    Total Assets151,587,297153,504,323
    Quotas, Reserves, Liabilities, and Resources
    General Resources Account
    Quotas (Note 2)145,318,800144,954,400
    Reserves (Note 7)1,875,8731,786,546
    Special Contingent Accounts (Note 5)1,633,4601,369,915
    Liabilities
    Remuneration payable (Note 5)232,673234,119
    Other liabilities141,002230,657
    Borrowing (Note 8)1,959,626
    Interest payable21,357
    373,6752,445,759
    Deferred income from charges (Note 5)834,6901,102,167
    Total General Resources Account150,036,498151,658,787
    Special Disbursement Account
    Accumulated resources1,547,1791,842,328
    Deferred income (Note 5)3,6203,208
    Total Special Disbursement Account1,550,7991,845,536
    Total Quotas, Reserves, Liabilities, and Resources151,587,297153,504,323
    The accompanying notes and schedules are an integral part of the financial statements.
    /s/ David Williams

    Treasurer
    /s/ M. Camdessus

    Managing Director

    Income Statements for the Years Ended April 30, 1996 and 1995

    (In thousands of SDRs)(Note 1)
    19961995
    General Resources Account
    Operational Income (Note 5)
    Periodic charges1,491,4241,282,853
    Interest on SDR holdings40,259216,410
    Service charges54,13152,958
    Stand-by charges, special charges, and other income5,9101,568
    Burden-sharing contributions net of refunds (Note 5)
    Additional charges(47,661)83,207
    Reduction of remuneration99,397192,153
    Settlements, net of deferred income267,476(59,232)
    1,910,9361,769,917
    Operational Expense
    Remuneration (Note 5)1,194,7861,053,525
    Allocation to the Special Contingent Accounts (Note 5)263,545215,422
    Interest on borrowing61,989127,610
    1,520,3201,396,557
    Net Operational Income390,616373,360
    Administrative Expenses (Notes 1 and 9)301,289288,286
    Net Income of General Resources Account89,32785,074
    Special Disbursement Account
    Interest and special charges7,4778,099
    Investment income4,9249,091
    12,40117,190
    Administrative expenses23,70022,524
    Net Loss of Special Disbursement Account(11,299)(5,334)
    The accompanying notes and schedules are an integral part of the financial statements.

    Statements of Changes in Reserves and Resources for the Years Ended April 30, 1996 and 1995

    (In thousands of SDRs)(Note 1)
    19961995
    Reserves—General Resources Account
    Special Reserve (Note 7)
    Balance, beginning of the year1,420,9661,335,892
    Net income89,32785,074
    Balance, end of the year1,510,2931,420,966
    General Reserve (Note 7)
    Balance, beginning and end of the year365,580365,580
    Total Reserves of the General Resources Account1,875,8731,786,546
    Resources—Special Disbursement Account
    Balance, beginning of the year1,842,3282,065,219
    Transfers from Trust Fund7,5393,724
    Transfers from Supplementary Financing Facility Subsidy Account632
    Transfers to ESAF Trust(291,389)(221,913)
    1,558,4781,847,662
    Net loss(11,299)(5,334)
    Total Resources of the Special Disbursement Account1,547,1791,842,328
    The accompanying notes and schedules are an integral part of the financial statements.

    Notes to the Financial Statements as at April 30, 1996 and 1995

    General Department

    The General Department consists of the General Resources Account, the Special Disbursement Account, and the Investment Account. The Investment Account had not been activated at April 30, 1996.

    General Resources Account

    The General Resources Account reflects the receipt of quota subscriptions, purchases and repurchases, collection of charges on members’ use of Fund credit and payment of remuneration on creditor positions in the Fund, and repayment of principal and interest to the Fund’s lenders. Assets held in the General Resources Account include (1) currencies (including securities) of the Fund’s member countries, (2) SDR. holdings, and (3) gold.

    The Fund makes its resources available to its members under policies on the use of its resources by selling to members, in exchange for their own currencies, SDRs or currencies of other members. When members make purchases, they incur an obligation to repurchase the Fund’s holdings of their currencies, within the periods specified by the Fund, by the payment to the Fund of SDRs or currencies of other members specified by the Fund. The Fund’s policies on the use of its general resources are intended Co ensure that their use is temporary and will be reversed within the relevant repurchase periods.

    The composition of the Fund’s holdings of members’ currencies changes as a result of the Fund’s transactions, including purchases and repurchases. Currencies and securities consist of holdings of currencies or notes payable on demand that substitute for the members’ currencies, including those of members that make use of the Fund’s resources and those used to finance the Fund’s operations and transactions.

    A member has a reserve tranche in the Fund to the extent that the Fund’s holdings of its currency, excluding holdings that reflect the member’s use of Fund credit, are less than the member’s quota. A member’s reserve tranche is considered a part of the member’s external reserves, which it may draw at any time when it represents that it has a need. Reserve tranche purchases are not considered a use of Fund credit and are not subject to repurchase obligations or charges.

    A member is entitled to repurchase at any time the Fund’s holdings of its currency on which the Fund levies charges and is expected to make repurchases as and when its balance of payments and reserve position improve.

    Special Disbursement Account

    The Special Disbursement Account was activated on June 30, 198 1 to receive transfers from the Trust Fund, which is in the process of being wound up. A structural adjustment facility (SAF) was established in March 1986 within the Special Disbursement Account to provide balance of payments assistance on concessional terms to qualifying low-income developing country members.

    The Special Disbursement Account is a part of the General Department of the Fund. The assets and income of the account are held separate from resources of other accounts of the General Department. Assets that exceed the needs of the account are transferred to the Reserve Account of the Enhanced Structural Adjustment Facility Trust (ESAF Trust), which is separately administered by the Fund as Trustee. Resources of the ESAF Trust Reserve Account that are determined to be in excess of its estimated needs are to be transferred back to the Special Disbursement Account. Upon liquidation of the ESAF Trust, the amounts remaining in the ESAF Trust Reserve Account after the discharge of remaining; liabilities shall be transferred to the Special Disbursement Account. In financial years 1995 and 1994, the Fund transferred certain resources derived from the termination of the 1976 Trust Fund to the ESAF Trust Subsidy Account. Upon liquidation of the ESAF Trust, any resources remaining in the ESAF Trust Subsidy Account will be returned to the Special Disbursement Account and the contributors of the ESAF Trust Subsidy Account.

    1. Summary of Significant Accounting Practices

    Unit of Account

    The accounts of the General Department are expressed in terms of the SDR, SDRs are reserve assets allocated to participants in the Fund’s SDR Department. The currency value of the SDR is determined by the Fund each day by summing the values in U.S. dollars, based on market exchange rates, of a basket of five currencies. The Fund reviews the SDR valuation basket every five years. The SDR valuation basket was revised effective January 1, 1996. The currencies comprising the basket and their amounts in the basket are as follows:

    CurrencyAmounts
    To

    December 31, 1995
    From

    January 1, 1996
    U.S. dollar0.5720.582
    Deutsche mark0.4530.446
    Japanese yen31.827.2
    French franc0.8000.813
    Pound sterling0.08120.105

    Valuation of Currencies

    Currencies are valued in terms of the SDR on the basis of the representative exchange rate determined for each currency. Each member is obligated to maintain the value of the balances of its currency held by the Fund in the General Resources Account in terms of the SDR. Whenever the Fund revalues its holdings of a member’s currency, a receivable or a payable is established for the amount of currency payable by or to the member in order to maintain the SDR value of the Fund’s holdings of the currency. The balances of the receivables or payables are reflected in the Fund’s total currency holdings.

    Income Recognition

    The Fund maintains its accounts on an accrual basis; accordingly, income is recognized as it is earned, and expenses are recorded as they are incurred, except that income from charges from members that are overdue in settling their obligations to the Fund by six months or more is deferred and is recognized as income only when paid unless the member has remained current in settling charges when due (see also Note 5).

    Capital Assets

    The Fund capitalizes assets with a cost in excess of $100,000. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

    2. Quotas, Currencies, and Securities

    Each member is required to pay to the Fund the amount of its initial quota and subsequent increases partly in the member’s own currency and the remainder in the form of reserve-assets, except that in 1978 members were permitted to pay the entire increase in their own currencies. A member’s quota is not increased until the member consents to the increase and pays the subscription. Each member has the option to substitute nonnegotiable and non-interest-bearing securities for the amount of its currency held by the Fund in the General Resources Account that is in excess of¼ of 1 percent of the member’s quota. These securities, which are part of the Fund’s currency holdings, are encashable by the Fund on demand.

    Changes in the Fund’s holdings of members’ currencies and securities for the year ended April 30, 1996 were as follows:

    April 30,

    1996
    April 30,

    1995
    Net

    Change
    In millions of SDRs
    Members’ quotas145,319144,954365
    Members’ outstanding use of Fund
    credit in the GRA36,26832,1404,128
    Members’ outstanding reserve
    tranche positions in the GRA(37,352)(31,720)(5,632)
    Other receivables(56)(77)21
    Administrative currency balances211
    Currencies and securities144,181145,298(1,117)

    On December 14, 1992, the Federal Republic of Yugoslavia (Serbia/Montenegro) agreed, as a successor state, to share in the assets and liabilities of the former Socialist Federal Republic of Yugoslavia. As of April 30, 1996, this state had not succeeded to fund membership. Fund credit outstanding at April 30, 1996 includes overdue credit amounting to SDR 56.1 million with respect to the Federal Republic of Yugoslavia (Serbia/Montenegro) (SDR 77.4 million with respect to two successor states at April 30, 1995). This amount is included in interest and other receivables in the balance sheet.

    Each member is obligated to maintain the value of the balances of its currency held by the Fund in the General Resources Account in terms of the SDR, and therefore the bund periodically revalues its holdings of a member’s currency. At April 30, 1996, when all holdings of currencies of members were last revalued, receivables and payables arising from valuation adjustments amounted to SDR 10,1 25.4 million and SDR 5,716.9 million, respectively (SDR 21,174.0 million and SDR 2,355.0 million, respectively, at April 30, 1995). At June 14, 1996, the amounts receivable were SDR 6,893.5 million, and the amounts payable were SDR 2,488.9 million.

    The Fund’s holdings of members’ currencies at April 30, 1996 are shown in Schedule 1.

    3. SDR Holdings

    SDRs are reserve assets created by the Fund and allocated to members participating in the SDR Department. Although SDRs are not allocated to the Fund, the Fund may acquire, hold, and dispose of SDRs through the General Resources Account, The Fund receives SDRs from members in the set element of their financial obligations to the Fund and uses SDRs in transactions and operations between the Fund and its members. The Fund earns interest on its SDR holdings at the same rate as all other holders of SDRs.

    4. Gold Holdings

    At April 30, 1996 and April 30, 1995, the Fund held 3,217,341 kilograms equal to 103,439,916 fine ounces of gold at designated depositories. Gold held by the Fund is valued on the basis of 0.888671 gram of line gold per SDR, which is equivalent to SDR 35 per fine ounce, except for 21,396 fine ounces that were acquired at a market value equivalent to SDR 5.1 million.

    5. Fund Operations

    The Fund’s Financial resources are made available to members under a number of policies and facilities that differ in the type of balance of payments need they seek to address, in the length of repurchase period, and in the degree of conditionality attached to them. Changes in the outstanding use of Fund credit under various facilities during the year ended April 30, 1996 were as follows:

    April 30,

    1995
    PurchasesRepurchase,April 30,

    1996
    In millions of SDRs
    Regular facilities12,5599,1273,06318,623
    Extended Fund facility6,8601,5549797,435
    Enlarged access5,6611,2254,436
    Systemic transformation facility3,8481363,984
    Compensatory and contingency financing facility3,02191,4281,602
    Supplementary financing facility1913188
    Total32,14010,8266,69836,268

    Members’ use of Fund credit is shown in Schedule 1. Scheduled repurchases are shown in Schedule 2.

    Arrangements in the General Department

    At April 30, 1996, 3 1 arrangements were in effect, and undrawn balances under these arrangements amounted to SDR 14,068.5 million. These arrangements are listed in Schedule 3.

    Charges

    The Fund levies periodic charges on its holdings of members’ currencies that derive from their use of Fund credit. The rate of charge is set as a proportion of the SDR interest rate. This rate is adjusted periodically to offset the effect on income of the deferral of charges and to finance the additions to the Special Contingent Accounts, which are further discussed below. Special charges are levied on holdings that are not repurchased when due, and on overdue charges that are not settled when due, except that these charges do not apply to members that are six months or more overdue to the Fund. A service charge is levied by the Fund on each purchase, except on a reserve tranche purchase; a stand-by fee is charged on stand-by and extended arrangements and is refunded in proportion to purchases made under the arrangement.

    At April 30, 1996, the total holdings on which the Fund levied charges amounted to SDR 36,268.4 million (SDR 32,140.4 million at April 30, 1995).

    Remuneration

    The Fund pays remuneration on a member’s remunerated reserve tranche position. A remunerated reserve tranche position is the amount by which the Fund’s holdings of a member’s currency (excluding holdings that derive from the use of Fund credit) is below the member’s norm. The norm varies for each member and, on average, amounted to 94.5 percent of quota at April 30, 1996 and April 30, 1995. The rate of remuneration is equal to the SDR interest rate and is adjusted subject to a specific floor, to offset the effect of the deferral of charges on income and to finance the additions to the Special Contingent Accounts, as discussed below.

    At April 30, 1996, the total creditor positions on which the Fund paid remuneration amounted to SDR 30,955.9 million (SDR 25,332.1 million at April 30, 1995).

    Overdue Obligations

    At April 30, 1996, five members were six months or more overdue in settling their financial obligations to the Fund (seven members at April 30, 1995); four of these members were overdue to the General Department (six members at April 30, 1995). In addition, the Federal Republic of Yugoslavia (Serbia/Montenegro) was also six months or more overdue in meeting its financial obligations to the Fund. Credit extended to these members and the Federal Republic of Yugoslavia (Serbia/Montenegro) through the General Resources Account and the Special Disbursement Account, including SAF loans, amounted to SDR 1,260.0 million as of April 30, 1996 (SDR 1,851.2 million as of April 30, 1995). During the year ended April 30, 1996, Zambia fully settled its overdue financial obligations to the Fund, which restored this member’s eligibility to use the Fund’s general resources. Bosnia and Herzegovina, a successor state of the former Socialist Federal Republic of Yugoslavia, succeeded to Fund membership during the year ended April 30, 1996, after fully settling its overdue obligations to the Fund.

    Repurchases and SAF loan repayments and charges and SAF interest that are six months or more overdue to the General Department were as follows:

    Repurchases

    and SAF Loans
    Charges and

    SAF Interest
    1996199519961995
    In millions of SDRs
    Total overdue1,1751,7288271,081
    Overdue for six months or more1,1571,7018041,049
    Overdue for three years or more1,0071,512660868

    The type and duration of the arrears were as follows:

    Repurchases

    and SAF

    Loans
    Charges

    and SAF

    Interest
    Total

    Obligation
    Longest

    Overdue

    Obligation
    In millions of SDRs
    Liberia201.4187.9389.3January 1985
    Somalia102.966.1169.0July 1987
    Sudan577.9523.51,101.4November 1984
    Yugoslavia, Federal
    Republic of (Serbia/Montenegro)52.110.062.1September 1992
    Zaire240.539.0279.5February 1991
    Total1,174.8826.52,001.3

    Strengthened Cooperative Strategy

    The Fund follows a cooperative strategy aimed at resolving the issue of overdue obligations to the Fund. Three major elements form the basis of the cooperative strategy: (1) preventative measures, (2) remedial and deterrent measures, and (3) intensified collaboration and the rights approach. Under the intensified collaborative approach, the Fund has developed Fund-monitored programs and rights accumulation programs, which permit a member with protracted arrears to the Fund to establish a track record of performance related to policy implementation and payments. A rights accumulation program allows the member to earn rights toward future financing through the implementation of a comprehensive economic program. Rights would be encashed under a successor arrangement after clearance of arrears and when all the requirements for that successor arrangement are met.

    Deferred Income and Special Contingent Accounts

    It is the policy of the Fund to exclude from current income charges due by members that are six months or more overdue in meeting payments to the Fund unless the member is current in the payment of charges. Charges excluded from income are recorded as deferred income. Charges due and accrued by members that are six months or more overdue and that have been deferred amounted to SDR 834.7 million at April 30, 1996 (SDR 1,102.2 million at April 30, 1995).

    Since May 1, 1986, the Fund has adopted decisions whereby debtor and creditor members share the financial consequences of overdue obligations. An amount equal to deferred charges (excluding special charges) is generated and included in the Fund’s income each quarter by an adjustment of the rate of charge and the rate of remuneration. However, the average rate of remuneration is not to be reduced below 85 percent of the SDR interest rate for the financing of deferred charges and the first Special Contingent Account (see following paragraphs). The proceeds from the subsequent settlement of overdue charges are distributed to members that paid additional charges or received reduced remuneration when and to the extent that deferred charges that gave rise to adjustments are paid.

    In view of the existence of protracted overdue obligations, the Fund accumulates precautionary balances, inter alia, in the Special Contingent Accounts. At April 30, 1996, SDR 1,633.5 million was held in the first and second Special Contingent Accounts (SCA-1 and SCA-2). SDR691.6 million was held in the SCA-1 (SDR 602.3 million at April 30, 1995), and SDR 941.9 million was held in the SCA-2 at April 30, 1996 (SDR 767.6 million at April 30, 1995). The Special Contingent Accounts are financed by additional quarterly adjustments to the rate of charge and the rate of remuneration. Balances in the SCA-1 are to be distributed to the members that share the cost of financing it when there are no outstanding overdue charges and repurchases, or at such earlier time as the Fund may decide.

    The SCA-2 was established on July 1, 1990 (as part of the strengthened cooperative strategy) so as to accumulate SDR 1.0 billion over a period of approximately five years. It is financed by a further adjustment to the rate of charge and to the rate of remuneration. The resources accumulated in the SCA-2 safeguard against potential losses arising from purchases made under a successor arrangement after a rights accumulation program has been successfully completed by members with protracted arrears to the Fund at the end of 1989, while at the same time providing additional liquidity to assist in the financing of such purchases. Refunds of contributions are to be made after all repurchases under the rights approach have been made, or at such earlier date as the Fund may determine. Use of Fund credit in the General Resources Account following the completion and encashment of rights accumulation programs amounted to SDR 62 1.3 million at April 30, 1996 and April 30, 1995.

    The adjustments to charges and remuneration in respect of the SCA-1 and SCA-2 and the costs of deferred charges during the year ended April 30, 1996 were as follows:

    Adjustments to
    ChargesRemunerationTotal
    In millions of SDRs
    Deferred charges32.531.964.4
    SCA-145.746.392.0
    SCA-213.8160.4174.2
    Total59.5206.7266.2
    Refunds of deferred
    charges139.7139.2278.9
    Burden-sharing
    contributions net of refunds(47.7)99.451.7

    The cumulative charges, net of settlements, that have been deferred since May 1, 1986 and have resulted in adjustments to charges and remuneration amount to SDR 634.3 million (SDR 847.4 million at April 30, 1995). The cumulative refunds for the same period amount to SDR 958.6 million (SDR 679.7 million at April 30, 1995).

    6. Other Assets

    Other assets include capital assets, which at April 30, 1996 amounted to SDR 105.3 million (SDR 90.0 million at April 30, 1995), net of accumulated depreciation of SDR68.3 million (SDR 62.2 million at April 30, 1995). These consist of land (SDR 33.7 million), buildings (SDR 29.0 million), equipment (SDR 14.2 million), and construction in progress (SDR 28.4 million).

    7. Reserves

    The Fund determines annually what part of its net income shall be placed to the General Reserve or to the Special Reserve, and what part, if any, shall be distributed. The Articles of Agreement permit the Fund to use the Special Reserve for any purpose for which it may use the General Reserve, except distribution. An administrative deficit for any financial year must be charged first against the Special Reserve.

    8. Borrowing

    Outstanding borrowing by the Fund under the bilateral arrangements with Japan was fully repaid during financial year 1996 (outstanding borrowing amounted to SDR 1,960 million at April 30, 1995). Interest on amounts borrowed was based on the weighted average of six-month domestic-interest rates in the countries that make up the currency basket of the SDR..

    General Arrangements to Barrow

    Under the General Arrangements to Borrow (GAB), the Fund may borrow up to SDR 18.5 billion when supplementary resources are needed, in particular, to forestall or to cope with an impairment of the international monetary system. The GAB became effective on October 24, 1962 and has been extended through December 25, 1998, At April 30, 1996, the GAB had not been activated.

    9. Administrative Expenses

    For the year ended April 30, 1996, the Fund incurred administrative expenses for personnel (SDR 233.1 million), travel (SDR 44.5 million), and other administrative needs (SDR 23.7 million) Administrative expenses, which are net of reimbursements, include pension plan contributions, post-retirement benefits other than pensions, and depreciation expense The General Resources Account is reimbursed for expenses incurred in administering the SDR Department (SDR4.0 million for the year ended April 30, 1996), the Special Disbursement Account and the Enhanced Structural Adjustment Facility Trust (SDR 23.7 million for the year ended April 30, 1996), and for other services (SDR 17.5 million for the year ended April 30, 1996).

    The Fund has a defined-benefit Staff Retirement Plan and a defined-benefit Supplemental Retirement Benefits Plan (“the Plans”). All contributions to the Plans and all other assets, liabilities, and income of the Plans are administered separately from the General Department and can be used only for the benefit of the participants in the Plans and their beneficiaries. Participants contribute a fixed percentage of their pensionable remuneration. The Fund contributes the remainder of the cost of funding the Plans and pays certain administrative costs of the Plans. The Fund uses the aggregate cost method for determining its pension cost and for funding the Plans. Under this method, the Fund’s contributions, including those for cost of living adjustments and for experience gains and losses, are spread over the expected future working lifetimes of the participants in the Plans and are determined annually as a percentage of pensionable remuneration of the participants. The funding and cost of the Plans for the year ended April 30, 1996 are based on an actuarial valuation at April 30, 1995.

    The Fund provides certain health care benefits to retirees that elect to continue participation in its medical benefits and group life insurance plans through retirement. Participants and the Fund contribute toward meeting the costs of these benefits. The Fund’s cost, which includes a current-year cost and a past-service obligation, is determined actuarially on the basis of the actual experience of the Fund’s medical and life insurance plans, a discount fate and a long-term rate of return on investments of 8.5 percent, and an increase in medical costs at an annual rate of 10.5 percent, declining to 6 percent over rime, and other factors on the demographics of participants. The cumulative cost was actuarially estimated at SDR 112.8 million as of April 30, 1996 (SDR 81.7 million as of April 30, 1995). On April 3, 1995, the Fund established the Retired Staff Benefits Investment Account (“the RSBIA”) to hold and invest the resources contributed by the Fund toward the payment of post-retirement medical and life insurance benefits. The resources of the RSBIA are kept separate from the assets of all other accounts of, or administered by, the Fund. At April 30, 1996, an amount of SDR 84.3 million was held by that account (SDR 73.6 million at April 30, 1995).

    Schedule 1 Quotas, Fund’s Holdings of Currencies, Members’ Use of Fund Resources, and Reserve Tranche Positions as at April 30, 1996

    (In thousands of SDRs)
    MemberGeneral Resources AccountSpecial

    Disbursement

    Account

    Loans
    Fund’s holdings

    of currencies1
    Reserve

    tranche

    position
    QuotaTotalPercent

    of quota
    Use of

    resources2
    Afghanistan, Islamic State of120,400115,48895.94,928
    Albania35,30046,433131.511,1335
    Algeria914,4002,049,143224.11,134,7457
    Angola207,300207,445100.1
    Antigua and Barbuda8,5008,499100.01
    Argentina1,537,1005,904,292384.14,367,167
    Armenia, Republic of67,500114,750170.047,2505
    Australia2,333,2001,995,58785.5337,640
    Austria1,188,300643,80954.2544,441
    Azerbaijan117,000197,145168.580,14510
    Bahamas, The94,90088,66593.46,239
    Bahrain82,80038,76446.844,046
    Bangladesh392,500392,410100.09782,369
    Barbados48,90068,453140.019,57125
    Belarus, Republic of280,400470,600167.8190,20020
    Belgium3,102,3002,371,13776.4731,214
    Belize13,50010,58778.42,914
    Benin45,30043,17395.32,12920,772
    Bhutan4,5003,93087.3570
    Bolivia126,200117,33993.08,87534,920
    Bosnia and Herzegovina121,200152,950126.231,745
    Botswana36,60017,32747.319,280
    Brazil2,170,8002,250,878103.779,289
    Brunei Darussalam150,000114,75076.535,255
    Bulgaria464,900858,201184.6425,92532,630
    Burkina Faso44,20036,98983.77,22122,120
    Burundi57,20051,34389.85,86013,237
    Cambodia65,00071,250109.66,250
    Cameroon135,100187,855139.053,110356
    Canada4,320,3003,468,07180.3852,238
    Cape Verde7,0006,999100.01
    Central African Republic41,20051,818125.810,7109412,768
    Chad41,30051,347124.310,32528013,770
    Chile621,700616,68099.25,018
    China3,385,2002,507,41974.1877,784
    Colombia561,300408,03772.7153,264
    Comoros6,5005,96291.75402,250
    Congo57,90069,886120.712,500536
    Costa Rica119,000112,28894.42,0008,725
    Côte d’Ivoire238,200276,042115.937,93595
    Croatia, Republic of261,600408,591156.2147,00019
    Cyprus100,00074,55474.625,453
    Czech Republic589,600589,600100.03
    Denmark1,069,900655,81861.3414,106
    Djibouti11,50014,375125.02,875
    Dominica6,0005,99299.99946
    Dominican Republic158,800255,977161.297,1783
    Ecuador219,200313,143142.9111,09417,153
    Egypt678,400670,32398.845,65053,750
    El Salvador125,600125,603100.0
    Equatorial Guinea24,30024,309100.010,678
    Eritrea11,50011,500100.05
    Estonia, Republic of46,500106,703229.560,2086
    Ethiopia98,30091,25292.87,05549,420
    Fiji51,10041,09180.410,013
    Finland861,800595,78869.1265,988
    France7,414,6005,558,47575.01,856,181
    Gabon110,300173,332157.163,07752
    Gambia, The22,90021,41893.51,4854,673
    Georgia111,000188,700170.077,70010
    Germany8,241,5004,432,06253.83,809,436
    Ghana274,000329,741120.373,11717,38091,003
    Greece587,600473,91380.7113,687
    Grenada8,5008,501100.0
    Guatemala153,800153,806100.0
    Guinea78,70078,63799.96813,896
    Guinea-Bissau10,50010,500100.0*32,025
    Guyana67,20080,270119.413,06833,948
    Haiti60,70077,056126.916,400451,764
    Honduras95,000120,799127.225,798
    Hungary754,800957,422126.8258,71656,097
    Iceland85,30074,81787.710,483
    India3,055,5004,420,212144.71,577,248212,630
    Indonesia1,497,6001,209,60180.8288,000
    Iran, Islamic Republic of1,078,5001,078,511100.0
    Iraq504,000504,013100.0
    Ireland525,000310,87159.2214,134
    Israel666,200755,524113.489,320
    Italy4,590,7003,270,09471.21,320,605
    Jamaica200,900342,697170.6141,746
    Japan8,241,5003,649,05544.34,592,488
    Jordan121,700312,168256.5190,4702
    Kazakstan, Republic of247,500584,730236.3337,2305
    Kenya199,400187,09193.812,31270,290
    Kiribati4,0004,001100.0
    Korea799,600334,07741.8465,526
    Kuwait995,200857,25586.1137,952
    Kyrgyz Republic64,500108,360168.043,8605
    Lao People’s Democratic Republic39,10039,100100.018,752
    Latvia, Republic of91,500196,248214.5104,7485
    Lebanon146,000127,16987.118,833
    Lesotho23,90020,39285.33,5127,399
    Liberia71,300272,738382.5201,45728
    Libya817,600498,62861.0318,980
    Lithuania, Republic of103,500275,138265.8171,6385
    Luxembourg135,500112,55583.122,945
    Macedonia, former Yugoslav Republic of49,60092,393186.342,791
    Madagascar90,40090,384100.01831,540
    Malawi50,90061,406120.612,7252,22419,530
    Malaysia832,700358,81143.1473,892
    Maldives5,5004,62184.0879
    Mali68,90060,16987.38,73327,432
    Malta67,50038,36656.829,155
    Marshall Islands2,5002,500100.01
    Mauritania47,50047,506100.010,529
    Mauritius73,30065,93790.07,366
    Mexico1,753,30012,199,780695.810,446,53060
    Micronesia3,5003,500100.01
    Moldova, Republic of90,000244,850272.1154,8505
    Mongolia37,10041,475111.84,3755
    Morocco427,700427,00299.829,61530,313
    Mozambique84,00084,000100.0718,300
    Myanmar184,900184,902100.0
    Namibia99,60099,582100.018
    Nepal52,00046,27789.05,73014,920
    Netherlands3,444,2002,200,56563.91,243,647
    New Zealand650,100529,76181.5120,350
    Nicaragua96,100100,368104.44,258
    Niger48,30050,849105.311,1098,5619,883
    Nigeria1,281,6001,281,586100.068
    Norway1,104,600471,44142.7633,160
    Oman119,40085,53771.633,971
    Pakistan758,2001,368,627180.5610,48661305,928
    Panama149,600223,472149.485,72011,860
    Papua New Guinea95,300128,604134.933,34053
    Paraguay72,10057,57879.914,525
    Peru466,1001,108,819237.9642,686
    Philippines633,400963,405152.1417,09687,104
    Poland, Republic of988,500911,37692.277,125
    Portugal557,600246,52044.2311,082
    Qatar190,500161,27584.729,226
    Romania754,1001,352,128179.3598,023
    Russian Federation4,313,10011,644,719270.07,332,401772
    Rwanda59,50068,443115.08,9258,760
    St. Kitts and Nevis6,5006,48899.815
    St. Lucia11,00011,000100.01