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Back Matter

Author(s):
International Monetary Fund
Published Date:
October 2002
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    Appendixes 2002

    APPENDIXES

    Contents

    Appendix 1: International Reserves

    Total international reserves, including gold, increased by 9 percent during 2001 and stood at SDR 1.9 trillion at the end of the year (Table I.1). Foreign exchange reserves, which constitute the largest component of official reserve holdings, grew by 9 percent, to SDR 1.6 trillion. IMF-related assets, which make up the rest of nongold reserves, increased by 16 percent, to SDR 76 billion. The market value of gold held by monetary authorities increased by 2 percent in 2001, to SDR 203 billion at year-end.1

    Table I.1Official Holdings of Reserve Assets1(In billions of SDRs)
    199619971998199920002001March
    2002
    All countries
    Total reserves excluding gold
    IMF-related assets
    Reserve positions in the IMF38.047.160.654.847.456.958.1
    SDRs18.520.520.418.518.519.619.6
    Subtotal, IMF-related assets56.567.681.073.265.976.477.7
    Foreign exchange1,085.71,193.71,163.11,295.21,478.31,616.71,649.1
    Total reserves excluding gold1,142.21.261.31,244.01,368.41,544.11,693.01,726.7
    Gold2
    Quantity (millions of ounces)904.9887.1966.5964.5950.6941.4937.8
    Value at London market price232.4190.8197.6204.0200.2203.3226.7
    Total reserves including gold1,374.61,452.11,441.61,572.41,744.31,896.41,953.4
    Industrial countries
    Total reserves excluding gold
    IMF-related assets
    Reserve positions in the IMF32.641.353.946.839.747.047.6
    SDRs14.515.515.814.714.416.015.8
    Subtotal. IMF-related assets47.156.869,861.554.162.963.4
    Foreign exchange501.7520.9475.8524.8595.6617.1623.0
    Total reserves excluding gold548.8577.7545.6586.3649.7680.0686.4
    Gold2
    Quantity (millions of ounces)748.2732.5808.7810.4796.5783.6779.6
    Value at London market price192.1157.5165.3171.4167.8160.2188.4
    Total reserves including gold740.9735.2710.9757.7817.5849.3874.8
    Developing countries
    Total reserves excluding gold
    IMF-related assets
    Reserve positions in the IMF5.45.76.78.07.79.910.5
    SDRs4.05.04.53.74.13.63.8
    Subtotal, IMF-related assets9.410.811.211.711.813.514.3
    Foreign exchange584.1672.8687.3770.4882.7999.61,026.0
    Total reserves excluding gold593.4683.6698.5782.1894.41,013.01,040.3
    Gold2
    Quantity (millions of ounces)156.7154.6157.9154.1154.1157.9158.2
    Value at London market price40.233,332.332.632.534.138.2
    Total reserves including gold633.7716.8730.7814.7926.91,047.11,078.5
    Net debtor developing countries
    Total reserves excluding gold
    IMF-related assets
    Reserve positions in the IMF3.94.25.05.65.46.46.4
    SDRs2.93.93.33.13.32.72.9
    Subtotal, IMF-related assets6.98.18.48.78.79.19.3
    Foreign exchange448.3534.8546.8608.1699.2798.9822.7
    Total reserves excluding gold455.1542.8555.1616.8707.9808.0832.0
    Gold2
    Quantity (millions of ounces)129.4127.9131.0127.9128.0131.7132.0
    Value at London market price33.227.526.827.127.028.531.9
    Total reserves including gold488.3570.4581.8643.9734.8836.4863.9
    Net debtor developing countries without debt-servicing problems
    Total reserves excluding gold
    IMF-related assets
    Reserve positions in the IMF3.53.84.64.84.65.75.7
    SDRs1.83.02.62.42.12.12.2
    Subtotal, IMF-related assets5.36.87.27.26.77.77.9
    Foreign exchange327.2400.4425.7485.9566.5658.9684.0
    Total reserves excluding gold332.5407.2432.8493.0573.1666.6691.8
    Gold2
    Quantity (millions of ounces)80.382.785.983.883.587.187.0
    Value at London market price20.617.817.617.717.618.821.0
    Total reserves including gold353.1424.9450.4510.8590.7685.4712.8
    Note: Compontent may not sum to totals because of rounding.Source: International Monetary Fund International Financial Statistics.

    End of year figures for all years except 2002. “IMF-related assets” comprise reserve positions in the IMF and SDR holdings of all IMF members. The entries under “Foreign exchange” and “Gold” comprise official holdings of those IMF 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.

    Foreign Exchange Reserves

    Ninety-six percent of nongold assets consisted of foreign exchange reserves at the end of 2001. The developing countries, which held 62 percent of all foreign exchange reserves at the end of 2001, increased their holdings by 13 percent, to SDR 1 trillion, following comparable increases in the previous two years. During 2001, the foreign exchange holdings of industrial countries rose by 4 percent, to SDR 617 billion.

    In 2001, the oil-exporting developing countries, which hold about 10 percent of all developing countries’ foreign exchange reserves, increased their foreign exchange assets by 7 percent, following increases of 15 percent and 28 percent in the two preceding years. Foreign exchange reserves of the net creditor developing country group rose by 9 percent, to SDR 201 billion, and those of net debtor countries grew by 14 percent to SDR 799 billion at the end of 2001. Foreign exchange reserves of net debtors without debt-servicing problems increased by 16 percent, to SDR 659 billion, while those of countries with debt-servicing problems increased by 6 percent, to SDR 140 billion.

    Holdings of IMF-Related Assets

    During 2001, total IMF-related assets (that is, reserve positions in the IMF and SDRs) increased by 16 percent, following declines of 10 percent in each of the previous two years. Industrial countries hold a majority of IMF-related assets: 82 percent at the end of 2001. The increase in IMF-related assets was mainly attributable to a 20 percent growth in members’ reserve positions in the IMF—which consist of members’ reserve tranche and creditor positions—to SDR 57 billion. SDR holdings of IMF members increased by 6 percent, to SDR 20 billion, reflecting a decline in holdings by the IMF and other prescribed holders.

    Gold Reserves

    The market value of gold reserves increased by 2 percent, to SDR 203 billion, reflecting an increase of 3 percent in the SDR price of gold in 2001; the physical stock of official gold declined by one percent. The share of gold in officially held reserves has declined gradually to 11 percent at the end of 2001, whereas in the early 1980s gold represented about half of all officially held reserves. Most of the gold reserves (83 percent) are held by industrial countries: gold constituted 20 percent of these countries’ total reserves at the end of 2001. Gold reserves accounted for 3 percent of the total reserves of the developing countries.

    Developments During First Quarter of 2002

    During the first quarter of 2002, total reserve assets rose by SDR 57 billion, of which SDR 32 billion represents an increase in foreign exchange reserves. As a consequence of a rise in the SDR price of gold since the end of 2001, the market value of gold reserves increased by SDR 23 billion during the first quarter of 2002, while the physical stock of official gold declined somewhat since end-2001. Holdings of IMF related assets remained close to their end-2001 level, at SDR 78 billion.

    Currency Composition of Foreign Exchange Reserves

    The currency composition of foreign exchange reserves has changed gradually over the past decade, with the share of U.S. dollar holdings in foreign exchange reserves rising from 55 percent in 1992 to 68 percent in 1999 and staying at that level through the end of 2001 (Table I.2). The euro, which replaced 11 European currencies and the European currency unit (ECU) on January 1, 1999, accounted for 13 percent of total foreign exchange reserves in 2001. The share of the euro has stayed effectively unchanged since 1999. Given that, at the introduction of the euro, the Eurosystem’s reserves previously denominated in euro legacy currencies2 became domestic assets of the euro area, the share of the euro in 1999–2001 is not directly comparable with the previous years’ combined share of the four euro legacy currencies identified in Table I.2: deutsche mark, French franc, Netherlands guilder, and private ECU. However, after adjusting the data to take into account only holdings of these currencies outside the euro area, their combined share in 1998 was virtually identical to the share of the euro in 1999.

    Table I.2Share of National Currencies in Total Identified Official Holdings of Foreign Exchange, End of Year1(In percent)
    1992199319941995199619971998199920002001
    All countries
    U.S. dollar55.356.756.657.060.362.465.968.468.168.3
    Japanese yen7.67.77.96.86.05.25.45.55.24.9
    Pound sterling3.13.03.33.23.43.73.94.03.94.0
    Swiss franc1.01.10.90.80.80.70.70.70.70.7
    Euro12.7213.0213,02
    Deutsche mark13.313.714.213.713.112.912.2
    French franc2.72.32.42.31.91.41.4
    Netherlands guilder0.70.70.50.40.30.40.4
    ECUs39.78.27.76.85.95.00.8
    Unspecified currencies46.56.66.48.98.38.49.38.89.19.0
    Industrial countries
    U.S. dollar48.850.250.851.856.157.966.773.573.374.5
    Japanese yen7.67.88.26.65.65.86.66.56.35.5
    Pound sterling2.42.22.32.12.01.92.22.32.01.8
    Swiss franc0.40.30.20.10.10.10.20.10.20.4
    Euro10.7210.429.72
    Deutsche mark15.116.416.316.415.615.913.4
    French franc2.92.62.42.31.70.91.3
    Netherlands guilder0.40.40.30.20.20.20.2
    ECUs316.715.214.613.412.010.91.9
    Unspecified currencies5.74.85.07.06.76.47.46.97.68.1
    Developing countries
    U.S. dollar64.564.363.162.464.366.265.364.664.264.1
    Japanese yen7.77.57.67.06.54.74.54.74.44.5
    Pound sterling4.04.04.44.34.85.15.25.35.25.5
    Swiss franc1.92.01.71.51.41.11.11.11.00.9
    Euro14.215.015.3
    Deutsche mark10.810.511.911.010.610.311.3
    French franc2.32.02.42.32.01.81.5
    Netherlands guilder1.01.00.80.60.50.60.5
    ECUs3
    Unspecified currencies57.78.78.010.99.910.210.810.210.19.6
    Note: Components may not sum to total because of rounding.

    Only- IMF member countries that report their official holdings of foreign exchange are included in this table.

    Not comparable with the combined share of euro legacy currencies in previous years because it excludes the euros received by euro area members when their previous holdings of other euro area members’ legacy currencies were converted into euros on January 1, 1999.

    In the calculation of currency shares, the ECU is treated as a separate currency. ECU reserves held by the monetary authorities existed in the form of claims on both the private sector and European Monetary Institute (EMI), which issued official ecus to European Union central banks through revolving swaps against the contribution of 20 percent of their gross gold holdings and U. S. dollar reserves. On December 31, 1998, the official ECUs were un wound into gold and U. S. dollars; hence, the share of ECUs at the end of 1998 was sharply lower than a year earlier. The remaining ecu holdings reported for 1998 consisted of ECUs issued by the private sector, usually in the form of ECU deposits and bonds. On January 1, 1999, these holdings were automatically converted into euros.

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

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

    The share of the Japanese yen in total foreign exchange reserves declined from 8 percent at end-1992 to 5 percent at the end of 1997, and has since stayed at about that level through 2001. During the past decade, the share of pound sterling has remained between 3 and 4 percent and that of the Swiss franc at approximately 1 percent. The share of unspecified currencies, which include currencies not identified in Table I.2 as well as foreign exchange reserves for which no information on currency composition is available, has remained at 9 percent since the end of 1998.

    For industrial countries, the share of U.S. dollar holdings increased throughout the 1990s to reach 74 percent in 1999, and increased slightly to 75 percent at the end of 2001. The shares of the euro and the Japanese yen in those countries’ foreign exchange reserves declined by less than one percentage point each from the preceding year, to 10 percent and 6 percent, respectively. Shares of pound sterling and the Swiss franc have been practically unchanged over the past ten years. The share of unspecified currencies stood at 8 percent in 2001.

    The share of the U.S. dollar in developing countries’ foreign exchange reserves was 64 percent in 2001, a level that has remained relatively constant over the last decade. Holdings of the euro accounted for 15 percent of those countries’ foreign exchange reserves, a level unchanged from the previous year and one percentage point higher than its share in 1999. During the past decade, the share of the Japanese yen has gradually decreased by about 3 percentage points, to 5 percent at the end of 2001, while the share of pound sterling has increased by about 2 percentage points, to 6 percent. The share of the Swiss franc has remained virtually unchanged at 1 percent since 1997. Unspecified currencies accounted for 10 percent of developing countries’ foreign exchange reserves in 2001.

    Changes in the SDR value of foreign exchange reserves can be decomposed into quantity and valuation (price) changes (Table I.3). Official reserves held in U.S. dollars increased by SDR 87 billion in 2001, which reflects an increase of SDR 51 billion in the quantity of U.S. dollar holdings and a valuation increase of SDR 35 billion. The SDR 19 billion increase in the quantity of euro holdings was partly offset by a price decline of SDR 3 billion, resulting in a net increase of SDR 16 billion in 2001. Similarly, a quantity increase of SDR 9 billion in Japanese yen holdings was offset considerably by a SDR 7 billion valuation decline, resulting in a net increase of SDR 2 billion. Increases in pound sterling and Swiss franc holdings of SDR 8 billion and SDR 1 billion, respectively, are to a large extent attributable to changes in quantity.

    Table I.3Currency Composition of Official Holdings of Foreign Exchange, End of Year1(In millions of SDRs)
    199319941995199619971998199920002001
    U.S. dollar
    Change in holdings51,25332,57073,532121,22687,76718,391108,764118,24986,812
    Quantity change49,83357,31478,555103.25045,11548,53390,52272,23251,437
    Price change1,420−24,744−5,02317,97642,651−30,14218,24246,01735,375
    Year-end value390,698423,269496,801618,027705,793724,185832,949951,1971,038,010
    Japanese yen
    Change in holdings6,2066,007192,685−3,1979757,1226,4021,730
    Quantity change9303,1233,0898,021−56−3,494−2,12811,1469,178
    Price change5,2762,884−3,070−5,336−3,1414,4699,250−4,745−7,448
    Year-end value53,02359,03059,04861,73358,53659,51166,63473,03674,765
    Pound sterling
    Change in holdings1,7353,9923,2407,3536,1801,1236,4874,7787,514
    Quantity change2,0954,1293,8333,2584,6302,7606,6516,1637,023
    Price change−361−136−5944,0951,549−1,636−163−1,385491
    Year-end value20,62024,61227,85235,20541,38542,50948,99653,77461,288
    Swiss franc
    Change in holdings1,284−932210881−35−542881,780575
    Quantity change1,382−1,372−5411,81175−1281,2601,481468
    Price change−98439751−930−10974−972299107
    Year-end value7,6216,6896,8997,7807,7457,6917,9799,75910,335
    Euro
    Change in holdings9,786227,94715,804
    Quantity change28,36831,30419,097
    Price change−18,582−3,357−3,293
    Year-end value154,163182,110197,914
    Deutsche mark
    Change in holdings12,72511,86213,29614,05011,896−11,457
    Quantity change18,6927,0816,81720,15922,336−15,344
    Price change−5,9674,7816,478−6,109−10,4403,887
    Year-end value94,552106,414119,709133,759145,655134,198
    French franc
    Change in holdings−1311,9121,974−981−3,388−488
    Quantity change9151,262668−334−2,037−890
    Price change−1,0456501,307−647−1,352402
    Year-end value16,16918,08120,05519,07415,68615,198
    Netherlands guilder
    Change in holdings423−512−301−3301,138−569
    Quantity change718−731−547−1521,443−708
    Price change−295219246−178−305140
    Year-end value4,5824,0703,7693,4394,5774,009
    European currency unit
    Change in holdings−2,8209591,665985−3,240−47,848
    Quantity change1,503−1,035−1,1571,833515−49,304
    Price change−4,3231,9942,822−849−3,7551,456
    Year-end value56,65457,61359,27860,26257,0229,174
    Sum of the above3
    Change in holdings70,67555,85993,635145,86897,120−39,925132,448159,156112,435
    Quantity change76,06869,77290,718137,84672,021−18,576124,673122,32787,203
    Price change−5,393−13,9142,9178,02225,099−21,3507,77436,83025,232
    Year-end value643,919699,777793,412939,2801,036,400996,4741,110,7201,269,8761,382,312
    Total official holdings4
    Change in holdings76,97560,648121,118153,767107,969−30,581132,104183,255138,204
    Year-end value750,192810,841931,9591,085,7261,193,6951,163,1141,295,2181,478,4731,616,677
    Note: Components may not sum to totals because of rounding.

    The currency composition of foreign exchange is based on the IMF’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.

    Represents the change from end-1998 holdings of euro legacy currencies by official institutions outside the euro area.

    Each item represents the sum of the currencies above.

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

    Appendix II: Financial Operations and Transactions

    The tables in this appendix supplement the information given in Chapter 6 on the IMF’s financial operations and policies. Components may not sum to total because of rounding.

    Table II.1Arrangements Approved During Financial Years Ended April 30, 1953–2002
    Financial
    Year
    Number of ArrangementsAmounts Committed Under Arrangements (In millions of SDRs)
    Stand-ByEFFSAFPRGFTotalStand-ByEFFSAFPRGFTotal
    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
    198618I192,1238252,948
    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
    199711512283,1831,1939115,287
    19989482127,3363.0781,73832,152
    199954101914,32514,09099829,413
    2000114102515,7066,58264122,929
    2001111142613,093−91,24914,333
    200211092039,43801,78141,219
    Table II.2Arrangements in Effect During Financial Years Ended April 30, 1991–2002
    Financial
    Year
    Number of Arrangements as of April 30Amounts Committed Under Arrangements
    as of April 30
    (In millions of SDRs)
    Stand ByEFFSAFPRGFTotalStand ByEFFSAFPRGFTotal
    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
    1997141135603,76410,1844,04817,996
    19981413336028,32312,3364,41045,069
    1999912355632,74711,4014,18648,334
    20001611315845,6069,7983,51658,921
    20012512438061,3059,7894,57675,670
    2002268356974,3448,6974,20187,242
    Table II.3Stand-By Arrangements in Effect During Financial Year Ended April 30, 2002(In millions of SDRs)
    Arrangement DatesAmounts ApprovedUndrawn Balance
    MemberEffective
    date
    Expiration
    date
    Prior to
    FY2002
    In FY2002At date of
    termination
    As of
    April 30, 2002
    Argentina3/10/003/9/0310,5866,3517,180
    Bosnia and Herzegovina5/29/985/29/0194
    Brazil12/2/989/14/0113,0253,554
    Brazil9/14/0112/13/0212,1448,469
    Bulgaria2/27/022/26/04240208
    Croatia, Republic of3/19/015/18/02200200
    Ecuador4/19/0012/31/01227
    Estonia3/1/008/31/012929
    Gabon10/23/004/22/029379
    Guatemela4/1/023/31/03843, —84
    Latvia4/20/0112/19/023333
    Lithuania3/8/006/7/016262
    Lithuania8/30/013/29/038787
    Nigeria8/4/0010/31/01789789
    Pakistan11/29/009/30/01465
    Panama6/30/003/29/026464
    Papua New Guinea3/29/009/28/0186
    Peru3/12/011/31/02128128
    Peru2/1/022/29/04255255
    Romania10/31/014/29/03300248
    Sri Lanka4/20/018/19/0220048
    Turkey12/22/992/4/028,6766,3623,299
    Turkey2/4/0212/31/0412,8214,627
    Uruguay5/31/003/31/02150
    Uruguay4/1/023/31/04594472
    Yugoslavia6/11/015/31/0220050
    Total34,90639,4388,00421,961
    Table II.4Extended Arrangements in Effect During Financial Year Ended April 30, 2002(In millions of SDRs)
    Arrangement DatesAmounts ApprovedUndrawn Balance
    MemberEffective
    date
    Expiration
    date
    Prior to
    FY2002
    In FY2002At date of
    termination
    As of
    April 30,2002
    Bulgaria9/25/989/24/01628
    Columbia12/20/9912/19/021,9571,957
    Indonesia2/4/0012/31/033,6382,202
    Jordan4/15/995/31/0212861
    Kazakhstan12/13/993/19/02329329
    Macedonia11/29/0011/22/012423
    Ukraine9/4/989/3/021,920727
    Yemen10/29/9710/28/017326
    Total8,6973784,947
    Table II.5Arrangements Under the Poverty Reduction and Growth Facility in Effect During Financial Year Ended April 30, 2002(In millions of SDRs)
    Arrangement DatesAmounts ApprovedUndrawn Balance
    MemberEffective
    date
    Expiration
    date
    Through
    Apirl 30, 2001
    In FY2002At date of
    termination
    As of
    April 30,2002
    Albania5/13/987/31/0145
    Armenia5/23/015/22/046959
    Azerbaijan7/6/017/5/048064
    Benin7/17/007/16/032712
    Bolivia9/18/986/7/0210137
    Burkina Faso9/10/999/9/02396
    Cambodia110/22/992/28/035917
    Cameroon12/20/0012/20/0311164
    Cape Verde4/10/024/9/0597
    Central African Republic7/20/981/19/024925
    Chad21/7/001/6/03361216
    Core d’lvofre3/29/023/27/05293234
    Djibouti10/18/9910/17/021910
    Ethiopia33/22/013/21/04871342
    Gambia, The6/29/9812/31/0121
    Georgia1/12/011/11/0410881
    Ghana45/3/9911/30/021923753
    Guinea5/2/015/1/046451
    Guinea Bissau12/15/0012/14/03149
    Guyana57/15/9812/31/015429
    Honduras63/26/9912/31/0215748
    Kenya8/4/008/3/03190156
    Kyrgyz Republic76/6/9812/5/0473732962
    Lao People’s Dem Rep4/25/014/24/043223
    Lesotho3/9/013/8/042514
    Macedonia, former8 Yugoslav Republic of12/18/0011/22/01109
    Madagascar3/1/012/29/047957
    Malawi12/21/0012/20/034539
    Mali98/6/998/5/0347519
    Mauritania7/21/997/20/024212
    Moldova12/21/0012/20/0311192
    Mongolia9/28/019/27/042824
    Mozambique6/28/996/27/028725
    Nicaragua3/18/983/17/0214934
    Niger12/22/0012/21/035934
    Pakistan12/6/0112/5/041,034861
    Rwanda6/24/981/31/027110
    Säo Tomé and Principe4/28/004/27/0375
    Senegal4/20/984/19/0210711
    Sierra Leone9/26/019/25/0413175
    Tajikistan6/24/9812/24/0110022
    Tanzania4/4/004/3/0313535
    Vietnam4/13/014/12/04290207
    Yemen10/29/9710/28/0126526
    Zambia3/25/993/28/03254150
    Total3,2981,8311952,700

    Extended from 2/5/02.

    Augmented by SDR 6 million on 5/16/01 and another SDR 6 million on 1/16/02.

    Augmented by SDR 13 million on 3/18/02.

    Augmented by SDR 37 million on 6/27/01.

    Extended from 7/12/01.

    Extended front 10/12/01.

    Arrangement expired on 7/25/01. New arrangement started 12/6/01.

    Cancelled 11/22/01.

    Augmented by SDR 5 million on 7/25/01.

    Table II.6Summary of Disbursements, Repurchases, and Repayments, Financial Years Ended April 30, 1948–2002(In millions of SDRs)
    Financial
    Year
    DisbursementsRepurchases and RepaymentsTotal Fund
    Cretit
    Outstanding2
    Purchases1Trust Fund
    loans
    SAF
    loans
    PRGF loansTotalRepurchasesTrust fund
    repayments
    SAF/PRGF
    repayments
    Total
    1948606606133
    1949119119193
    195052522424204
    195128281919176
    195246463737214
    19536666185185178
    1954231231145145132
    1955494927627655
    1956393927227672
    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
    199510,6151457311,2023,98442444,23136,837
    199610,8701821,29512,3476,69873957,10042,040
    19974,9397055,6446,66855247,19640,488
    199820,00097320,9733,78915954,38556,026
    199924,07182624,89710,46562711,09267,175
    20006,3775136,89022,99363423,62750,370
    20019,59963010,22911,24358811,83148,662
    200229,19495230,14619,20777719,98458,698

    Includes reserve tranche purchases.

    Excludes reserve tranche purchases.

    Table II.7Purchases and Loans from the IMF, Financial Year Ended April 30, 2002(In millions of SDRs)
    MemberReserve
    Tranche
    Stand-By/
    Credit Tranche
    Extended
    Fund Facility
    SRFTotal
    Purchases
    PRGF
    Loans
    Total Purchases
    and Loans
    Albania55
    Argentina1,5294,3935,9225,922
    Armenia1010
    Azerbaijan1616
    Benin44
    Bolivia1919
    Bosnia/Herzegovina141414
    Brazil1,9603,3175,2775,277
    Bulgaria32528484
    Burundi666
    Burkina Faso1717
    Cambodia1717
    Cameroon3232
    Cape Verde11
    Central African Republic
    Chad2121
    Congo, Republic of
    Côte D’Ivoire5959
    Djibouti44
    Ecuador113113113
    Egypt120120120
    Ethiopia4141
    Gambia, The77
    Gabon
    Georgia99
    Ghana105105
    Guinea1313
    Guinea-Bissau
    Guyana
    Honduras1616
    Indonesia585585585
    Jordan303030
    Kenya
    Kyrgyz Republic1212
    Lao, PDR55
    Lesotho77
    Macedonia (FYR)
    Madagascar1111
    Malawi
    Mali1818
    Mauritania1212
    Moldova
    Mongolia44
    Mozambique88
    Nicaragua
    Niger1717
    Pakistan210210172382
    Papua New Guinea191919
    Romania525252
    Rwanda1010
    São Tomé & Principe
    Senegal1818
    Sierra Leone5656
    Sri Lanka484848
    Tajikistan66
    Tanzania4040
    Turkey12,8193,18116,00016,000
    Ukraine291291291
    Uruguay273273273
    Vietnam4141
    Yemen6969
    Yugoslavia150150150
    Zambia5050
    Total12617,21995810,89129,19495230,146
    Table II.8Repurchases and Repayments to the IMF, Financial Year Ended April 30, 2002(In millions of SDRs)
    MemberStand-By/
    Cretit Tranche
    Extended
    Fund Facility
    CCFF
    and STF
    Total
    Purcheses
    SAF/PRGF and
    Trust Fund
    Repayments
    Total
    Repurchases
    and Repayments
    Albania44610
    Algeria139139139
    Argentina227565792792
    Armenia66511
    Azerbaijan93172929
    Bangladesh12124254
    Belarus232323
    Benin1212
    Bolivia2222
    Bosnia/Hcrzcgovina999
    Brazil3,3853,3853,385
    Bulgaria18151232232
    Burkina Faso99
    Burundi44
    Cambodia1189
    Cameroon
    Central African Republic
    Chad33
    Congo, Democratic Rep. of the11
    Congo, Republic of333
    Cóte d’lvoire5353
    Croatia5222727
    Djibouti111
    Dominican Republic555
    Ecuador
    Equatorial Guinea22
    Estonia444
    Ethiopia1212
    Gabon999
    Gambia, The
    Georgia99817
    Ghana4545
    Guinea99.
    Guyana1414
    Guinea-Bissau11
    Haiti222
    Honduras66713
    India
    Indonesia1,6511,6511,651
    Jamaica141414
    Jordan444444
    Kazakhstan
    Kenya1515
    Korea1,9241,9241,924
    Kyrgyz Republic551015
    Lao People’s Dem. Rep.66
    Latvia888
    Lesotho33
    Lithuania2182929
    Macedonia (FYR)1455
    Madagascar
    Malawi44
    Mali1818
    Mauritania1111
    Mexico
    Moldova571212
    Mongolia66
    Mozambique1818
    Nepal33
    Nicaragua44
    Niger11
    Pakistan40244410863171
    Panama171717
    Papua New Guinea111
    Peru134134134
    Philippines37488585
    Romania60319191
    Russia4732,5162,9892,989
    Rwanda777
    Senegal2424
    Sierra Leone38382260
    Slovak Republic
    Sri Lanka5151
    Sudan1872525
    Tajikistan999
    Tanzania1515
    Thailand1,0751,0751,075
    Togo88
    Tunisia222222
    Turkey5,7845,7845,784
    Uganda2929
    Ukraine20383286286
    Uruguay141414
    Uzbekistan11172828
    Venezuela4424686S
    Vietnam443640
    Yemen313131
    Yugoslavia
    Zambia166166
    Zimbabwe11
    Total14,8091,5302,86719,20777719,984
    Table II.9Outstanding IMF Credit by Facility and Policy, Financial Years Ended April 30, 1994–2002(In millions of SDRs and percent of total)
    199419951996199719981999200020012002
    Millions of SDRs
    Stand-By Arrangements19,48515,11720,70018,06425,52625.21321,41017,10128,612
    Extended Arrangements9,56610,1559,98211,15512,52116,57416,80816,10815,538
    Supplemental Reserve Facility Compensatory and Contingency7,10012,6554.0855,875
    Financing Facility3,7563,0211,6021,3366852,8453,0322,992745
    Systemic Transformation Facility2,7253,8483,9843,9843,8693,3642,7181,9331.311
    Subtotal (GRA)25,53232,14036,26834,53949,70160,65143,96842,21952,081
    SAF Arrangements1,4401,2771,208954730565456432341
    PRGF Arrangements22,8123,3184,4694,9045,5055,8705,8575,9516,188
    Trust Fund10510295909089898989
    Total29,88936,83742,04040,48856,02667,17550,37048,69158,699
    Percent of total
    Stand-By Arrangements1324149454638433549
    Extended Arrangements322824282225333326
    Supplemental Reserve Facility1319910
    Compensatory and Contingency
    Financing Facility1284314661
    Systemic Transformation Facility91091075542
    Subtotal (GRA)858786858990878788
    SAF Arrangements533211111
    PRGF Arrangements2991112109121211
    Trust Fund333333333
    Total100100100100100100100100100

    Includes outstanding credit tranche and emergency purchases.

    Includes outstanding associated loans from the Saudi Fund for Development.

    Less than ½ of 1 percent total.

    Table II.10Summary of Bilateral Contributions to the PRGF and PRGF-HIPC Trusts(In millions of SDRs; as of April 30, 2002)
    PRGF-HIPC TrustPRGF Trust
    Subsidies and HIPC grant
    contributions “as needed”1
    Subsidy contributions
    “as needed”2
    Loan commitments3
    TOTAL1,559.13,496.115,676.8
    Major industrial countries880.52,304.912,864.8
    Canada48.8204.1700.0
    France82.2479.92,900.0
    Germany127.2197.92,750.0
    Italy63.6162.11,380.0
    Japau144.0723.85,134.8
    United Kingdom82.2359.1
    United States332.6178.0
    Other advanced countries299.7984.72,456.4
    Australia24.814.1
    Austria14.363.6
    Belgium35.3123.1350.0
    Denmark18.567,0100.0
    Finland8.042.1
    Greece6.340.0
    Iceland0.94.6
    Ireland5.97.7
    Israel1.8
    Korea15.960.092.7
    Luxembourg0.714.4
    Netherlands45.4140.0450.0
    New Zealand1.7
    Norway18.545.5150.0
    Portugal6.65.6
    San Marino0.0
    Singapore16.533.9
    Spain423.327.0712.0
    Sweden18.3186.6
    Switzerland37.0109.3601.7
    Fuel-exporring countries108.717.9
    Algeria5.5
    Bahrain0.9
    Brunei Darussalam0.1
    Gabon2.5
    Iran, Islamic Republic of2.22.1
    Kuwait3.1
    Nigeria13.9
    Oman0.8
    Qatar0.5
    Saudi Arabia53.515.7
    Trinidad and Tobago1.6
    United Arab Emirates3.8
    Venezuela, Repúblics Bolivariana de20.4
    Other developing countries227.1175.4355.6
    Argentina16.235.0
    Bangladesh1.70.9
    Barbados0.4
    Belize0.3
    Botswana3.12.4
    Brazil15.0
    Cambodia0.0
    Chile4,44.0
    China19.714.8200.0
    Colombia0.9
    Cyprus0.8
    Dominican Republic0.5
    Egypt1.313.3155.6
    Fiji0.1
    Ghana0.5
    Grenada0.1
    India22.913.6
    Indonesia8.26.2
    Jamaica2.7
    Lebanon0.4
    Libra7.3
    Malaysia12.747.1
    Maldives0.0
    Malta1.12.2
    Mauritius0.1
    Mexico54.5
    Micronesia, F. S.0.0
    Morocco1.69.8
    Pakistan3.44.1
    Paraguay0.1
    Peru2.5
    Philippines6.7
    Samoa0.0
    South Africa28.6
    Sri Lanka0.6
    St. Lucia0.1
    St. Vincent and the Grenadines0.1
    Swaziland0.0
    Thailand4.517.3
    Tonga0.0
    Tunisia1.51.9
    Turkey11.4
    Uruguay2.22.6
    Vanuatu0.1
    Vietnam0.4
    Countries in transition42.913.3
    Croatia0.4
    Czech Republic4.113.3
    Estonia0.5
    Hungary6.0
    Latvia1.0
    Poland12.0
    Russian Federation14.6
    Slovak Republic4.0
    Slovenia0.4

    The rerm “as needed” refers to the nominal undiscountcd sum of the projected delivery ol HIPC. assistance plus the profile of projected subsidy needs for interim PRGF lending. All calculations are based on an SDR interest rate assumption of 5 percent per annum.

    The calculations are based on actual interest rates through end 2001 and an assumed SDR interest rate of 5 percent per annum thereafter.

    PRGF Trust also includes a loan commitment from the OPKC. of US$50 million equivalent to SDR 37 million.

    Loan commitments include Spain’s pledge of SDR 300 million.

    Table II.11Holdings of SDRs by All Participants and by Groups of Countries as Percent of Their Cumulative Allocations of SDRs, at End of Financial Years Ended April 30, 1993–2002
    Nonindustrial countries2
    Net debtor countries
    All
    Participants1
    Industrial
    Countries2
    All nonindustrial
    countries
    Net creditor
    countries
    All net debtor
    countries
    Heavily indebted
    poor countries
    199363.073.141.6166.635.14.6
    199471.077.956.3222.547.712.5
    199590.9105.160.4263.949.814.1
    199691.4102.467.9285.556.617.4
    199787.299.860.5303.647.817.3
    199895.0107.069.4323.756.124.1
    199981.194.652.5170.746.326.3
    200084.695.062.5174.156.620.6
    200186.6101.654.6204.246.512.4
    200291.5107.756.9227.944.714.6

    Consists of member countries that are participants in the SDR Department. At the end of FY2002, 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 IMF and prescribed holders.

    Based on IFS classification (International Monetary Fund, International Financial Statistics, various years).

    Table II.12Key IMF Rates, Financial Year Ended April 30, 2002(In percent)
    Period BeginningSDR Interest Rate
    and Unadjusted Rate
    of Remuneration1
    Basic Rate
    of Charge1
    Period
    Beginning
    SDR Interest Rate
    and Unadjusted Rate
    of Remuneration1
    Basic Rate
    of Charge1
    2001November 52.432.83
    May 13.784.40November 122.262.63
    May 73.724.33November 192.332.71
    May 143.654.25November 262.332.71
    May 213.584.17December 32.252.62
    May 283.594.18December 102.222.58
    June 43.564.14December 172.252.62
    June 113.534.11December 242.242.61
    June 183.494.06December 312.232.60
    June 253.464.03
    July 23.564.142002
    July 93.564.14January 72.222.58
    July 163.554.13January 142.182.54
    July 253.524.10January 212.192.55
    July 303.534.11January 282.252.62
    August 63.484.05February 42.272.64
    August 133.423.98February 112.252.62
    August 203.373.92February 182.262.63
    August 273.393.95February 252.272.64
    September 33.343.89March 42.272.64
    September 103.303.84March 112.292.67
    September 172.923.40March 182.322.70
    September 242.613.04March 252.332.71
    October 12.673.11April 12.322.70
    October 82.552.97April 82.302.68
    October 152.603.03April 152.272.64
    October 222.562.98April 222.272.64
    October 292.522.93April 292.282.65

    Under the FY2002 decision on burden sharing, the rate of remuneration was adjusted downward and the rate of charge was adjusted upward to share the burden of protecting the IMF’s income from overdue charges and of contributing to the IMF’s precautionary balances. The amounts generated from burden sharing in FY2002 are refundable when overdue charges are paid and when overdue obligations cease to be a problem. The basic rate of charge presented is the effective rate following the retroactive reduction that was implemented after the end of the financial year. The basic rate of charge, which was set at 117.0 percent of the SDR interest rate, was reduced to 116.4 percent of the SDR interest rate as a result of the retroactive reduction.

    Table II.13Members 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
    AlgeriaSeptember 15, 1997GuyanaDecember 27, 1966
    Antigua and BarbudaNovember 22, 198.1HaitiDecember 22, 1953
    ArgentinaMay 14.1968HondurasInly 1, 1950
    ArmeniaMay 29, 1997HungaryJanuary 1, 1996
    AustraliaJuly 1, 1965IcelandSeptember 19, 1983
    AustriaAugust 1, 1962IndiaAugust 20, 1994
    Bahamas, TheDecember 5, 1973IndonesiaMay 7, 1988
    BahrainMarch 20, 1973IrelandFebruary 15, 1961
    BangladeshApril 11, 1994IsraelSeptember 21, 1993
    BarbadosNovember 3, 1993ItalyFebruary 15, 1961
    BelarusNovember 5,2001JamaicaFebruary 22, 1963
    BelgiumFebruary 15, 1961JapanApril 1, 1964
    BelizeJune 14, 1983JordanFebruary 20, 1995
    BeninJune 1, 1996KazakhstanInly 16, 1996
    BoliviaJune 5, 1967KenyaJune 30, 1994
    BotswanaNovember 17, 1995KiribatiAugust 22, 1986
    BrazilNovember 30, 1999KoreaNovember 1, 1988
    Brunei DarussalamOctober 10, 1995KuwaitApril 5, 1963
    BulgariaSeptember 24, 199SKyrgyz RepublicMarch 29, 1995
    Burkina FasoJune 1, 1996LatviaJune 10, 1994
    CambodiaJanuarv 1, 2002LebanonJuly 1, 1993
    CameroonJune 1, 1996LesothoMarch 5, 1997
    CanadaMarch 25, 1952LithuaniaMay 3, 1994
    Central African RepublicJune 1, 1996LuxembourgFebruary 15, 1961
    ChadJune 1, 1996Macedonia, FYRJune 19, 1998
    ChileJuly 27, 1977MadagascarSeptember 18, 1996
    ChinaDecember 1, 1996MalawiDecember 7, 1995
    ComorosJune 1, 1996MalaysiaNovember 11, 1968
    Congo, Republic ofJune 1, 1996MaliJune 1, 1996
    Costa RicaFebruary 1, 1965MaltaNovember 30, 1994
    Côte d’ IvoireJune 1, 1996Marshall IslandsMay 21, 1992
    CroatiaMay 29, 1995MauritaniaJuly 19, 1999
    CyprusJanuary 9, 1991MauritiusSeptember 29, 1993
    Czech RepublicOctober 1, 1995MexicoNovember 12, 1946
    DenmarkMay 1, 1967Micronesia, Federated States ofJune 24, 1993
    DjiboutiSeptember 19, 1980MoldovaJune 30, 1995
    DominicaDecember 13, 1979MongoliaFebruary 1, 1996
    Dominican RepublicAugust 1, 1953MoroccoJanuary 21, 1993
    EcuadorAugust 31, 1970NamibiaSeptember 20, 1996
    El SalvadorNovember 6, 1946NepalMay 30, 1994
    Equatorial GuineaJune 1,1996NetherlandsFebruary 15, 1961
    EstoniaAugust 15, 1994New ZealandAugust 5, 1982
    FijiAugust 4, 1972NicaraguaJuly 20, 1964
    FinlandSeptember 25, 1979NigerJune 1, 1996
    FranceFebruary 15, 1961NorwayMay 11, 1967
    GabonJune 1, 1996OmanJune 19, 1974
    Gambia, TheJanuary 21, 1993PakistanJuly 1, 1994
    GeorgiaDecember 20, 1996PalauDecember 16, 1997
    GermanyFebruary 15, 1961PanamaNovember 26, 1946
    GhanaFebruary 21, 1994Papua New GuineaDecember 4, 1975
    GreeceJuly 7, 1992ParaguayAugust 22, 1994
    GrenadaJanuary 24, 1994PeruFebruary 15, 1961
    GuatemalaJanuary 27, 1947PhilippinesSeptember 8,1995
    GuineaNovember 17, 1995PolandJune 1, 1995
    Guinea-BissauJanuary 1, 1997PortugalSeptember 12, 1988
    QatarJune 4, 1973SurinameJune 29, 1978
    RomaniaMarch 25, 1998SwazilandDecember 11, 1989
    Russian FederationJune 1, 1996SwedenFebruary 15, 1961
    RwandaDecember 10, 1998SwitzerlandMay 29,1992
    St. Kitts and NevisDecember 3, 1984TanzaniaJuly 15, 1996
    St. LuciaMay 30, 1980ThailandMay 4, 1990
    St. Vincent and the GrenadinesAugust 24, 1981TogoJune 1, 1996
    SamoaOctober 6, 1994TongaMarch 22, 1991
    San MarinoSeptember 23, 1992Trinidad and TobagoDecember 13, 1993
    Saudi ArabiaMarch 22, 1961TunisiaJanuary 6, 1993
    SenegalJune 1, 1996TurkeyMarch 22, 1990
    SeychellesJanuary 3, 1978UgandaApril 5, 1994
    Sierra LeoneDecember 14, 1995UkraineSeptember 24, 1996
    SingaporeNovember 9, 1968United Arab EmiratesFebruary 13. 1974
    Slovak RepublicOctober 1, 1995United KingdomFebruary 15, 1961
    SloveniaSeptember 1, 1995United StatesDecember 10, 1946
    Solomon IslandsJuly 24, 1979UruguayMay 2, 1980
    South AfricaSeptember 15, 1973VanuatuDecember 1, 1982
    SpainJuly 15, 1986Venezuela, Republica Bolivariana deJuly 1, 1976
    Sri LankaMarch 15, 1994Yemen, Republic ofDecember 10, 1996
    ZambiaApril 19, 2002
    ZimbabweFebruary 3, 1995
    Table II.14Exchange Rate Arrangements and Anchors of Monetary Policy as of December 31, 2001
    Classification of Exchange Rate Regimes
    The classification system, in effect since 1999, is based on the members’ actual, de facto, regimes that may differ from their officially announced arrangements. The scheme ranks exchange rate regimes on the basis of the degree of flexibility of the arrangement. It distinguishes between the more rigid forms of pegged regimes (such as currency board arrangements); other conventional fixed peg regimes against a single currency or a basket of currencies; exchange rate bands around a fixed peg; crawling peg arrangements; and exchange rate bands around crawling pegs, in order to help assess the implications of the choice of exchange rate regime for the degree of independence of monetary policy. This includes a category to distinguish the exchange arrangements of those countries that have no separate legal tender. The system presents members’ exchange rate regimes against alternative monetary policy frameworks with the intention of using both criteria as a way of providing greater transparency in the classification scheme and to illustrate that different forms of exchange rate regimes could be consistent with similar monetary frameworks. The following explains the categories.
    Exchange Rate Regimes
    Exchange Arrangements With No Separate Legal Tender
    The currency of another country circulates as the sole legal tender, or the member belongs to a monetary or currency union in which the same legal tender is shared by the members of the union. Adopting such regimes is a form of surrendering the monetary authorities’ independent control over domestic monetary policy.
    Currency Board Arrangements
    A monetary regime based on an explicit legislative commitment to exchange domestic currency for a specified foreign currency at a fixed exchange rate, combined with restrictions on the issuing authority to ensure the fulfillment of its legal obligation. This implies that domestic currency be issued only against foreign exchange and that it remain fully backed by foreign assets, eliminating traditional central bank functions such as monetary control and the lender of the last resort and leaving little scope for discretionary monetary policy; some flexibility may still be afforded depending on how strict the rules of the boards are established.
    Other Conventional Fixed Peg Arrangements
    The country pegs (formally or de facto) its currency at a fixed rate to a major currency or a basket of currencies, where a weighted composite is formed from the currencies of major trading or financial partners and currency weights reflect the geographical distribution of trade, services, or capital flows. In a conventional fixed peg arrangement, the exchange rate fluctuates within a narrow margin of less than ±1 percent around a formal or de facto central rate. The currency composites can also be standardized, such as those of the SDR and the ECU. The monetary authority stands ready to maintain the fixed parity through intervention, limiting the degree of monetary policy discretion; the degree of flexibility of monetary policy, however, is greater relative to CBAs or currency unions, in that traditional central banking functions are, though limited, still possible, and the monetary authority can adjust the level of the exchange rate, though infrequently.
    Pegged Exchange Rates Within Horizontal Bands
    The value of the currency is maintained within certain margins of fluctuation of at least ±1 percent around a formal or a de facto fixed central rate. It also includes the arrangements of the countries in the exchange rate mechanism (ERM) of the European Monetary System (EMS) (replaced with ERM-II on January 1, 1999). There is some limited degree of monetary policy discretion, with the degree of discretion depending on the band width.
    Crawling Pegs
    The currency is adjusted periodically in small amounts at a fixed rate or in response to changes in selective quantitative indicators (past inflation differentials vis-à-vis major trading partners, differentials between the target inflation and expected inflation in major trading partners, etc). The rate of crawl can be set to generate inflation adjusted changes in the currency (“backward looking”), or at a preannounced fixed rate below the projected inflation differentials (“forward looking”). Maintaining a credible crawling peg imposes constraints on monetary policy in a similar manner as a fixed peg system.
    Exchange Rates Within Crawling Bands
    The currency is maintained within certain fluctuation margins of at least ±1 percent around a central rate, which is adjusted periodically at a fixed rate, or in response to changes in selective quantitative indicators. The degree of flexibility of the exchange rate is a function of the width of the band, with bands chosen to be either symmetric around a crawling central parity or to widen gradually with an asymmetric choice of the crawl of upper and lower bands (in the latter case, there is no preannouncement of a central rate). The commitment to maintain the exchange rate within the band continues to impose constraints on monetary policy, with the degree of policy independence being as a function of the band width.
    Managed Floating With No Predetermined Path for the Exchange Rate
    The monetary authority influences the movements of the exchange rate through active intervention in the foreign exchange market without specifying, or precommitting to, a regular preannounced path for the exchange rate. Indicators for managing the rate are broadly judgmental, including, for example, the balance of payments position, international reserves, parallel market developments, and the adjustments may not be automatic.
    Independent Floating
    The exchange rate is market determined, with any foreign exchange intervention aimed at moderating the rate of change and preventing undue fluctuations in the exchange rate, rather than at establishing a level for it. In these regimes, monetary policy is in principle independent of exchange rate policy.
    Monetary Policy Framework
    Members’ exchange rate regimes are presented against alternative monetary policy frameworks in order to present the role of the exchange rate in broad economic policy and help identify potential sources of inconsistency in the monetary-exchange rate policy mix.
    Exchange Rate Anchor
    The monetary authority stands ready to buy/sell foreign exchange at given quoted rates to maintain the exchange rate at its preannounced level or range (the exchange rate serves as the nominal anchor or intermediate target of monetary policy). These regimes cover exchange rate regimes with no separate legal tender, CBAs, fixed pegs with and without bands, and crawling pegs with and without bands, where the rate of crawl is set in a forward-looking manner.
    Monetary Aggregate Anchor
    The monetary authority uses its instruments to achieve a target growth rate for a monetary aggregate (reserve money, M1, M2, etc.) and the targeted aggregate becomes the nominal anchor or intermediate target of monetary policy.
    Inflation Targeting Framework
    Involves the public announcement of medium-term numerical targets for inflation with an institutional commitment by the monetary authority to achieve these targets. Additional key features include increased communication with the public and the markets about the plans and objectives of monetary policymakers and increased accountability of the central bank for obtaining its inflation objectives. Monetary policy decisions are guided by the deviation of forecasts of future inflation from the announced inflation target, with the inflation forecast acting (implicitly or explicitly) as the intermediate target of monetary policy.
    IMF-Supported or Other Monetary Program
    Involves implementation of monetary and exchange rate policy within the confines of a framework that establishes floors for international reserves and ceilings for net domestic assets of the central bank. As the ceiling on net domestic assets limits increases in reserve money through central bank operations, indicative targets for reserve money may be appended to this system.
    Other
    The country has no explicitly stated nominal anchor, but rather monitors various indicators in conducting monetary policy, or there is no relevant information available for the country.
    Monetary Policy Framework1,2
    Exchange
    Rate Regime
    (number of
    countries)
    Exchange rate anchorMonetary
    aggregate
    target
    Inflation
    targeting
    framework
    IMF-
    supported
    or other
    monetary
    program
    Other
    Exchange arrangements with no separate legal tender (40)Another currency as legal tenderCFA franc zoneEuro area4,5
    ECCU3WAEMUCAEMCAustria
    Belgium
    EcuadorAntigua and BarbudaBeninCameroonFinland
    El Salvador14Burkina FasoCentral African Rep.France
    KiribatiDominicaCôte d’IvoireGermany
    Marshall IslandsGrenadaGuinea-BissauChadGreece
    St. Kitts and NevisMaliCongo, Rep. ofIreland
    MicronesiaNigerEquatorial GuineaItaly
    PalauSt. LuciaSenegalLuxembourg
    PanamaSt. Vincent and the GrenadinesTogoGabonNetherlands
    San MarinoPortugal
    Spain
    Currency board arrangements (8)Argentina
    Bosnia and Herzegovina
    Brunei Darussalam
    Bulgaria
    China: Hong Kong, SAR
    Djibouti
    Estonia
    Lithuania
    Other conventional fixed peg arrangements (including de facto peg arrangements under managed floating) (41)Against a single currency (31)Against a composite (10)China,
    ArubaBotswana5Peopel’s
    Bahamas, The6FijiRep. of*7
    BahrainKuwait
    BangaledeshLatvia*
    BarbadosLibyan A.J.
    BelizeMalta
    BhutanMorocco
    Cape Verde*Samoa
    China, People’s Rep. of*7Seychelles
    Comoros9Vanuatu
    Eritea
    Iran, Islamic Rep. of6,7
    Jordan7
    Lebanon7
    Lesotho
    Macedonia, FYR7
    Malaysia
    Maldives7
    Namibia
    Nepal
    Netherlands Antilles
    Oman
    Qatar7,8
    Saudi Arabia7,8
    Sudan7
    Suriname6,7
    Swaziland
    Syrian Arab Republic6
    Turkmenistan7
    United Arab Emirates7,8
    Zimbabwe7
    Pegged exchange rates within horizontal bands (5)10Within a cooperative arrangement ERM II (1)Other band arrangements (4)Hungary*
    DenmarkCyprusHungary*
    Egypt6Tonga
    Crawling pegs (4)Bolivia
    Costa Rica7
    Nicaragua
    Solomon Islands6
    Exchange rates within crawling bands (6)11BelarusRomania7Israel*
    HondurasUruguay
    Israel*Venezuela, Rep. Bol. de
    Managed floating with no pre-announced path for exchange rate (42)Ghana
    Guinea
    Guyana
    Indonesia
    Jamaica7
    Mauritius
    Mongolia
    São Tomé and Principe
    Slovenia
    Sri Lanka
    Tunisia
    Thailand*Azerbaijan
    Cambodia6
    Croatia
    Ethiopia
    Kazakhstan
    Kenya
    Kyrgyz Republic
    Lao PDR6
    Mauritania
    Nigeria
    Pakistan
    Russian Federation
    Rwanda
    Trinidad & Tobago
    Ukraine
    Vietnam
    Yugoslavia
    Zambia
    Algeria4
    Angola4
    Burundi4
    Dominican Rep.4, 6
    Guatemala4
    India4
    Iraq12
    Myanmar4, 6, 7
    Paraguay4
    Singapore4
    Slovak Rep.4
    Uzbekistan4,6
    Independently floating (40)Gambia, The
    Malawi
    Peru
    Philippines
    Sierra Leone
    Turkey
    Yemen
    Australia
    Brazil
    Canada
    Chile6
    Colombia
    Czech Rep.
    Iceland
    Korea
    Mexico
    New Zealand
    Norway
    Poland
    South Africa
    Sweden
    United Kingdom
    Albania
    Armenia
    Congo, Dem. Rep.
    Georgia
    Madagascar
    Moldova
    Mozambique
    Tajikistan
    Tanzania
    Uganda
    Afghanistan6, 12
    Haiti4
    Japan4
    Liberia4
    Papua New Guinea4
    Somalia6, 12
    Switzerland4
    United States4
    Sources: IMF Staff Reports and International Financial Statistics.Note: The term “country,” as used in this publication, does not in all cases refer to a territorial entity that is a state as understood by international law and practice; the term also covers some territorial entities that are not states but for which statistical data are maintained and provided internationally on a separate and independent basis.

    A country with a* indicates that the country has more than one nominal anchor that may guide monetary policy. It should be noted, however, that it would not be possible, for practical purposes, to infer from this table which nominal anchor plays the principal role in conducting monetary policy.

    A country with † indicates that the country has an IMF-supported or other monetary program.

    These countries have a currency board arrangement.

    The country has no explicitly stated nominal anchor, but rather monitors various indicators in conducting monetary policy.

    Until withdrawn in February 2002, national currencies retained their status as legal tender within their home territories.

    Member maintained exchange regimes involving more than one market. The regime shown is that maintained in the major market.

    The indicated country has a de facto.regime, which differs from its de jure regime.

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

    Comoros has the same arrangement with the French Treasury as do the CFA Franc Zone countries.

    The band width for these countries is: Cyprus (±2.25%), Denmark (±2.25%), Egypt (±3%), Hungary (±15%), and Tonga (±5%).

    The band for these countries is: Belarus (±5%), Honduras (±7%), Israel (±22%), Romania (unannounced), Uruguay (±3%), and Venezuela (±7.5%).

    There is no relevant information available for the country.

    13

    For El Salvador, the printing of new colones, the domestic currency, is prohibited, but the existing stock of colones will continue to circulate, along with the U.S. dollar, as legal tender until all notes physically wear out.

    Appendix III: Principal Policy Decisions of the Executive Board

    A. Access Policy and Limits in Credit Tranches and Under Extended Fund Facility—Extension of Deadline for Completion of Review

    The Fund decides that the next annual review of the guidelines and limits for access to the Fund’s general resources in the credit tranches and under the Extended Fund Facility prescribed by paragraph 2 of Decision No. 11876-(99/2),1 as amended by Decision No. 12385-(00/129),2 shall be completed by August 31, 2001.

    Decision No. 12517-(01/68)

    June 29, 2001

    B. IMF’s Income Position

    (a) Disposition of Net Income for FY2002

    1. SDR 51 million of the Fund’s net income for FY2002 derived from the application of paragraph 2 of Decision No. 12464-(01/39),3 adopted April 16, 2001, shall be placed to the Fund’s Special Reserve after the end of the financial year.

    2. The expense derived from the application of International Accounting Standard 19—Employee Benefits during FY2002 shall be charged against the Fund’s Special Reserve and shall be recorded separately in the financial records of the Fund.

    Decision No. 12729-(02/43)

    April 26, 2002

    (b) Rate of Charge on Use of Fund Resources for FY2003

    1. Notwithstanding Rule I-6(4)(a), effective May 1, 2002, the proportion of the rate of charge referred to in Rule 1–6(4) to the SDR interest rate under Rule T-l shall be 128.0 percent.

    2. The net income target for FY2003 shall be SDR 69 million. Any net income for financial year 2003 in excess of SDR 69 million shall be used to reduce retroactively the proportion of the rate of charge for financial year 2003. If net income for financial year 2003 is below SDR 69 million, the amount of projected net income for financial year 2004 shall be increased by the equivalent of that shortfall. For the purpose of this provision, net income shall be calculated without taking into account net operational income generated by the surcharges on purchases under the Supplemental Reserve Facility and Contingent Credit Lines, the surcharge on purchases in the credit tranches and under the Extended Fund Facility or the effect on income of the implementation of International Accounting Standard 19—Employee Benefits.

    Decision No. 12730-(02/43)

    April 26, 2002

    (c) Surcharges on Purchases Under Supplemental Reserve Facility and Contingent Credit Lines, and in Credit Tranches and Under Extended Fund Facility—Disposition of Net Operating Income

    For financial year 2003, after meeting the cost of administering the PRGF Trust, any remaining net operational income generated by the surcharges on purchases under the Supplemental Reserve Facility and the Contingent Credit Lines and the surcharges on purchases in the credit tranches and under the Extended Fund Facility shall be transferred, after the end of that financial year, to the General Reserve.

    Decision No. 12733-(02/43) SRF/CCL

    April 26, 2002

    C. Post-Conflict Emergency Assistance

    (a) Administered Account to Subsidize Post-Conflict Emergency Assistance to Poverty Reduction and Growth Facility-Eligible Members—Establishment

    Pursuant to Article V, Section 2(b), the Fund adopts the Instrument to Establish an Account (“The Post-Conflict Emergency Assistance Subsidy Account for PRGF-Eligible Members”) to subsidize the rate of charge on post-conflict purchases made by PRGF-Eligible members under Decision No. 12341-(00/117),4 November 28, 2000, which is annexed to this Decision.

    Decision No. 12481-(01/45)

    May 4, 2001

    ANNEX: Instrument to Establish the Post-Conflict Emergency Assistance Subsidy Account for PRGF-Eligible Members

    To help fulfill its purposes, the International Monetary Fund (the “Fund”) has adopted this Instrument to establish an account in accordance with Article V, Section 2(b) (the “Account”) which shall be governed by, and administered in accordance with, the following provisions:

    Paragraph 1. Purpose of the Account

    The purpose of the Account shall be the administration of resources provided to the Account by Contributors for the subsidization of the rate of charge on post-conflict emergency assistance purchases made by PRGF-eligible members under Decision No. 12341-(00/117),5 November 28, 2000 (“eligible purchases”). A member is PRGF-eligible if it is included in the list of members annexed to Decision No. 8240-(86/56) SAF.6

    Paragraph 2. Resources of the Account

    The resources held in the Account shall consist of:

    • (i) grant contributions made to the Account for the purposes of paragraph 1;

    • (ii) loans, deposits, and other types of investments made by Contributors to the Account to generate income to be used for the purposes of paragraph 1; and

    • (iii) net earnings from the investment of resources held in the Account.

    Paragraph 3. Contributions to the Account

    The Fund may accept contributions of resources to the Account on such terms and conditions as may be agreed between the Fund and the respective contributors, subject to the provisions of this Account. For this purpose the Managing Director is authorized to accept grants and enter into loan, deposit, or other type of investment agreements with the Contributors to the Account.

    Paragraph 4. Unit of Account

    The SDR shall be the unit of account.

    Paragraph 5. Media of Payment of Contributions and Exchange of Resources

    • (a) Resources provided to the Account shall be in any freely usable currency or such other media as may be agreed by the Fund and the Contributor.

    • (b) Resources held in the Account may be currencies or currencies exchanged for SDRs in accordance with such arrangements as may be made by the Fund for the holding and use of SDRs.

    • (c) The Fund may exchange any of the resources held in the Account provided that any balance of a currency held in the Account may be exchanged only with the consent of the issuer of such currency.

    • (d) Payments made from the Account shall be made in SDRs or such other media as may be determined by the Fund.

    Paragraph 6. Use of the Resources

    • (a) The resources of the Account (including any net income from the investment of such resources) shall be used to provide grants to PRGF-eligible members that have made post-conflict emergency purchases under Decision No. 12341-(00/117)7 (“eligible recipients”), in order to subsidize to an annual rate of 0.5 percent the rate of charge payable to the Fund on the Fund’s holding of the member’s currency resulting from those purchases. Only charges payable after the establishment of the Account will be eligible for subsidization.

    • (b) The grants will be made available to eligible recipients at the same time as quarterly charges on eligible purchases fall due, subject to the availability of adequate resources in the Account, in an amount sufficient to reduce that quarterly rate of charge to 0.5 percent on an annual basis. If, in any quarter, the resources of the Account are insufficient to subsidize the rate of charge on all eligible purchases to 0.5 percent for that quarter, the subsidy to each eligible recipient shall be prorated to bring the effective rate of charge paid after subsidization to the closest common percentage to 0.5 percent.

    • (c) Earmarked resources contributed to the Account shall be used in accordance with the terms agreed with the Contributor and shall not be taken into consideration in the determination of the grant subsidy under subparagraph (b) above. An eligible recipient beneficiary of earmarked resources shall not receive a lower grant subsidy than provided under subparagraph (b) above.

    Paragraph 7. Authority to Invest Resources in the Account

    • (a) Resources held in the Account and not immediately needed for operations of the Account shall be invested at the discretion of the Managing Director, subject to the provisions of subparagraph (c).

    • (b) The Managing Director is authorized (i) to make all arrangements, including the establishment of accounts in the name of the Fund, with such depositories as he deems necessary to carry out the operations of the Account, and (ii) to take all other measures he deems necessary to implement the provisions of this Instrument.

    • (c) Investments may be made in any of the following:

      (i) marketable obligations issued by an international financial organization and denominated in SDRs or in the currency of a member of the Fund; (ii) marketable obligations issued by a member or by a national official financial institution of a member and denominated in SDRs or in the currency of that member; and (iii) deposits with a commercial bank, a national official financial institution of a member, or an international financial institution that are denominated in SDRs or in the currency of a member.

    Paragraph 8. Administration of the Account

    • (a) Assets held in the Account shall be kept separate from the assets and property of all other accounts of, or administered by, the Fund. The assets and property held in such other accounts shall not be used to discharge or meet any liabilities, obligations, or losses of the Fund incurred in the administration of the Account; nor shall the assets of the Account be used to discharge or meet any liabilities, obligations, or losses incurred by the Fund in the administration of such other accounts.

    • (b) The Fund shall maintain separate financial records and prepare separate financial statements for the Account. The financial statements for the Account shall be expressed in SDRs and prepared in accordance with International Accounting Standards.

    • (c) The external audit firm selected under Section 20 of the Fund’s By-Laws shall audit the operations and transactions conducted through the Account. The audit shall relate to the financial year of the Fund.

    • (d) The Fund shall report on the resources and position of the Account in the Annual Report of the Executive Board to the Board of Governors and shall include in that Annual Report the audit report of the external audit firm on the Account.

    • (e) Subject to the provisions of this Instrument, the Fund, in administering the Account, shall apply, mutatis mutandis, the same rules and procedures as apply to operations of the General Resources Account of the Fund.

    Paragraph 9. Fees

    • (a) No charge shall be levied in respect of the services rendered by the Fund in the administration, operation, and termination of this Account.

    • (b) All investment costs, including but not limited to costs associated with the exchange of currencies, purchase of securities, and hiring of external asset managers and custodian banks, shall be borne by, and deducted from, the Account.

    Paragraph 10. Termination

    • (a) The Account may be terminated at any time by the Fund.

    • (b) Termination shall be effective on the date that all Contributors have received a notice of termination or on such later date, if any, as may be specified in the notice of termination.

    • (c) Any balance remaining in the Account on the date of its termination and after discharge of all obligations of the Account shall be transferred promptly to each of the Contributors in the proportion that the SDR equivalent of its respective Contribution bears to the total Contributions; except that:

      • (i) in the case of earmarked Contributions that have been fully used, no such transfer shall be made, and

      • (ii) a Contributor may instruct that its share or a specified portion thereof be utilized for such other purposes as may be mutually agreed between the Contributor and the Managing Director.

    Paragraph 11. Amendments

    The provisions of this Instrument may be amended by a decision of the Fund. Should the Fund amend the terms and conditions of this Instrument, each Contributor shall have the right to withdraw its individual unused Contribution in the proportion that the SDR equivalent of its respective Contribution bears to the total Contributions.

    Paragraph 12. Settlement of Questions

    Any question arising under this Instrument shall be settled by mutual agreement between the Fund and the Contributors.

    (b) Administered Account to Subsidize Post-Conflict Emergency Assistance to Poverty Reduction and Growth Facility-Eligible Members – Use of SDRs

    In accordance with Article XVII, Section 3, the Fund prescribes that (i) a participant or a prescribed holder, by agreement with a participant or a prescribed holder and at the instruction of the Fund, may transfer SDRs to that participant or prescribed holder in effecting a transfer to or from “the Post-Conflict Emergency Assistance Subsidy Account for PRGF-Eligible Members” or in effecting a payment due to or by the Fund in connection with financial operations under “the Post-Conflict Emergency Assistance Subsidy Account for PRGF-Eligible Members,” (ii) operations pursuant to these prescriptions shall be recorded in accordance with Rule P-9.

    Decision No. 12482-(01/45) S

    May 4, 2001

    D. Poverty Reduction and Growth Facility (PRGF)

    (a) Overdue Financial Obligations—Procedures Applicable to PRGF Trust

    (See Section E below, subsection (c) for the full text of this decision).

    (b) PRGF Trust Borrowing for Loan Account—Consultation with Creditors

    The Managing Director, after having consulted with all creditors in accordance with Decision No. 12032-(99/87) PRGF,8 adopted August 2, 1999, is authorized to confirm that he does not intend to propose to the Executive Board borrowing of more than SDR 16 billion for the Loan Account of the Poverty Reduction and Growth Facility Trust except after consultation with all creditors regarding the justification for such additional borrowing and the adequacy of the Trust’s Reserve in relation thereto.

    Decision No. 12559-(01/85) PRGF

    August 23, 2001, effective September 23, 2001

    (c) PRGF Trust Instrument—Amendment

    1. The following changes shall be made to the Instrument of the Poverty Reduction and Growth Facility Trust established by Decision No. 8759-(87/176) PRGF,9 adopted December 18, 1987:

    • (i) In Section II, paragraph 1(d), “December 31, 2006” shall be substituted for “December 31, 2001”;

    • (ii) In Section III, paragraph 3, the following new sentence shall be added after the first sentence:

      • “The drawdown period under loan agreements to the Loan Account of the PRGF Trust for interim PRGF financing shall extend through December 31, 2009.”

    • (iii) In Section III, paragraph 4(a), “August 31, 2001” shall be substituted for “November 30, 1993”;

    • (iv) In Section III, paragraph 4(b), the following language shall be added after the second reference to “November 30, 1993,”: “or prior to June 30, 2009, in case of a commitment under a loan agreement entered into after August 31, 2001, …”

    • (v) In Section IV, “paragraph 1(d)” shall become “paragraph 1(e)” and the following new “paragraph 1(d)” shall be added:

      • “(d) transfers from the Trust for Special PRGF Operations for the Heavily Indebted Poor Countries and Interim PRGF Subsidy Operations (PRGF-HIPC Trust) in accordance with Section III bis of that Trust Instrument; and …”

    2. Paragraphs 1(iii) and 1(iv) of this decision shall become effective when all lenders to the PRGF Trust have consented to the changes proposed therein.

    Decision No. 12560-(01/85) PRGF

    August 23, 2001, effective September 19, 2001

    (d) PRGF-HIPC Trust Instrument—Amendments

    The following changes shall be made to the Instrument of the Trust for Special PRGF Operations for the Heavily Indebted Poor Countries and Interim PRGF Subsidy Operations established by Decision No. 11436-(97/10),10 adopted February 4, 1997:

    • (i) In Section I, paragraph 1(vii), “December 31, 2001” shall be substituted for “December 31, 2000” and “2001/02–2006” for “2000/01–2004”;

    • (ii) The following Section III bis shall be added after Section III:

      • “Section III bis. Subsidies for Interim PRGF Operations

        For purposes of Section I, paragraph 2(b) of this Instrument, and to the extent that resources in the Subsidy Account of the PRGF Trust are insufficient for interim PRGF subsidy operations, the Trustee shall transfer to the Subsidy Account of the PRGF Trust, as needed, resources in the Trust Account not earmarked for assistance under Section III of this Instrument. Any such transfers shall be limited to the amounts needed for subsidy payments.”

    Decision No. 12561-(01/85) PRGF

    August 23, 2001

    (e) PRGF Trust and PRGF-HIPC Trust—Reserve Account—Review

    Pursuant to Decision No. 10286 (93/23) ESAF.11 the Fund has reviewed the adequacy of the Reserve Account of the PRGF Trust, and determines that amounts held in the account are sufficient to meet all obligations which could give rise to a payment from the Reserve Account to lenders to the Loan Account of the PRGF Trust in the six months from October 1, 2001 to March 31, 2002.

    Decision No. 12568-(01/93) PRGF

    September 12, 2001

    (f) PRGF-HIPC Trust—Amendment

    The Instrument to Establish a Trust for Special PRGF Operations for the Heavily Indebted Poor Countries and Interim PRGF Subsidy Operations (annexed to Decision No. 11436-(97/10),12 adopted February 4, 1997) is amended as follows:

    • (a) The following sentence shall be added in Section I at the end of paragraph 1(v):

      • “For the purposes of these calculations, amounts that are subject to an early repurchase or repayment expectation established under the Misreporting Guidelines shall not constitute external debt.”

    • (b) The following shall be added in Section I as a new-paragraph 1(x):

      • “Misrcporting Guidelines means the Guidelines on Corrective Action for Misreporting and Noncomplying Purchases in the General Resources Account (Decision No. 12249-(00/77),13 adopted July 27, 2000), and the Provisions on Corrective Action for Misreporting and Noncomplying Disbursements in Arrangements under the Poverty Reduction and Growth Facility (Appendix I of the Instrument to Establish the Poverty Reduction and Growth Facility Trust annexed to Decision No. 8759-(87/176) ESAF,14 adopted December 18, 1987).”

    • (c) The following sentence shall be added after the first sentence of Section III, paragraph 3(e):

      • “To the extent that the Trustee, in determining the amount committed to the member under paragraph 3(b) above, included in the member’s external debt amounts that, after the decision point, were found to be subject to an early repurchase or repayment expectation under the Misreporting Guidelines, the Trustee shall recalculate and adjust the amount of its commitment, excluding from the member’s external debt the amount that was subject to the repurchase or repayment expectation.”

    Decision No. 12680-(02/17) PRGF

    February 20, 2002

    (g) Instrument to Establish Trust for Special PRGF Operations for Heavily Indebted Poor Countries and Interim PRGF Subsidy Operations—Amendment

    The Instrument to Establish a Trust for Special PRGF Operations for the Heavily Indebted Poor Countries and Interim PRGF Subsidy Operations (Decision No. 11436-(97/10)15 shall be amended as follows:

    • 1. In Section III, paragraph 3(b), the following new sentences shall be added at the end of the paragraph:

      • “The Trustee shall, subject to the conditions specified below, adjust the amount of assistance committed to a member under this provision, whether or not disbursed to the account established under paragraph 5 below, if the Trustee, on the basis of revised information, recalculates the member’s debt sustainability position used for the purposes of reaching the decision point and determines that the recalculated amount of relief to be provided under the Initiative exceeds or falls short of the amount originally committed by more than one percentage point of the targeted net present value of debt as defined in Section I, paragraph 1(v) above. In such circumstances, the amount of the commitment shall be increased or reduced as necessary to reach the amount to which the member, on the basis of such recalculation, would be entitled under the terms of this Instrument. No such adjustment shall be made: (i) after the completion point; or (ii) in the case of an excess of more than one percentage point, if such excess is attributable to incorrect information on exports, gross domestic product, or fiscal revenues that was not provided by or at the behest of the member. If the amount already disbursed by the Trustee to the account established under paragraph 5 below for the benefit of the member exceeds the adjusted amount of assistance, the Trustee shall retransfer to the Trust any amount remaining in the account equivalent to such excess.”

    • 2. In Section III, paragraph 3(d), the following new sentences shall be added at the end of the paragraph:

      • “Where the Trustee has made a disbursement of resources under this paragraph to the account established under paragraph 5 below for the benefit of the member on the understanding that all performance-related conditions specified for such disbursement have been met and subsequently determines that any such condition was not met, the Trustee shall retransfer to the Trust any amount remaining in such account from such disbursement up to the total amount of such disbursement as well as all net investment income accrued on the amounts disbursed on the basis of incorrect information provided, however, that no retransfer shall be made if (i) the member’s completion point has been reached, or (ii) the Trustee decides that such disbursement remains appropriate in view of the member’s record of policy implementation and its poverty reduction efforts. The retransfer of these amounts will not affect the amount of commitment in NPV terms to the member as established at the decision point. The Fund shall issue press releases on its decisions regarding the circumstances of the misreporting and the applicable remedies.”

    Decision No. 12696-(02/27) PRGF

    March 15, 2002

    (h) Trust for Special ESAF Operations for Heavily Indebted Poor Countries and Interim ESAF Subsidy Operations – Terms and Conditions for Administration of Account—Amendment

    The Trust for Special ESAF Operations for Heavily Indebted Poor Countries and Interim ESAF Subsidy Operations—Terms and Conditions for Administration of Account Provided Under Section III, Paragraph 5(b) of Trust (Decision No. 11698-(98/38) ESAF)16 shall be amended as follows:

    • 1. Paragraph I shall be redrafted to read as follows (with changes underscored):

      • “1. The resources of the Account shall consist of (i) the proceeds of grants and/or loans paid into the Account for the benefit of a member by the ESAF-HIPC Trust, and (ii) contributions by other donors to the reduction of a member’s debt service payments on its existing debt to the Fund, and (iii) net earnings from the investment of resources held in the Account.”

    • 2. In paragraph 3, the following new sentence shall be added at the end of the paragraph:

      • “The Trustee shall also be authorized to retransfer back to the Trust an amount equivalent to (i) resources disbursed from the Trust into a sub-account in excess of the amount needed to meet the Fund’s share of debt reduction in accordance with Section III, paragraph 3(b) of the Instrument to Establish the PRGF-HIPC Trust, or (ii) resources disbursed as interim assistance from the Trust into a sub-account on the incorrect understanding that all performance-related conditions specified for such disbursement were met, in accordance with Section III, paragraph 3(d) of the Instrument to Establish the PRGF-HIPC Trust.”

    Decision No. 12697-(02/27) PRGF

    March 15, 2002

    (i) PRGF Trust and PRGF-HIPC Trust—Reserve Account—Review

    Pursuant to Decision No. 10286-(93/23) ESAF,17 the Fund has reviewed the adequacy of the Reserve Account of the PRGF Trust, and determines that amounts held in the account are sufficient to meet all obligations which could give rise to a payment from the Reserve Account to lenders to the Loan Account of the PRGF Trust in the six months from April 1, 2002 to September 30, 2002.

    Decision No. 12720-(02/40) PRGF

    April 9, 2002

    E. Overdue Financial Obligations

    (a) Review of Progress Under Strengthened Cooperative Strategy—Extension of Rights Approach

    The availability of the rights approach is extended until end-August 2001.

    Decision No. 12512-(01/67)

    June 28, 2001

    (b) Strengthened Cooperative Strategy—Review

    The Fund has reviewed progress under the strengthened cooperative strategy with respect to overdue obligations to the Fund as described in EBS/01/122 (7/23/01). The Fund reaffirms its support for the strengthened cooperative strategy and agrees to extend the availability of the rights approach until end-August 2002.

    Decision No. 12544-(01/84)

    August 22, 2001

    (c) Procedures Applicable to PRGF Trust

    The Instrument to Establish the Poverty Reduction and Growth Facility annexed to Decision No. 8759-(87/176) ESAF18 shall be amended by adding the following Appendix:

    “APPENDIX II: Procedures for Addressing Overdue Financial Obligations to the Poverty Reduction and Growth Facility Trust

    The following procedures aim at preventing the emergence or accumulation of overdue financial obligations to the Poverty Reduction and Growth Facility Trust (the “Trust”) and at eliminating existing overdue obligations. These procedures will be implemented whenever a member has failed to make a repayment of principal or payment of interest to the Trust (“financial obligation”).

    1. Whenever a member fails to settle a financial obligation on time, the staff will immediately send a cable urging the member to make the payment promptly; this communication will be followed up through the office of the Executive Director concerned. At this stage, the member’s access to the Fund, including PRGF and HIPC resources, will have been suspended.

    2. When a financial obligation has been outstanding for two weeks, management will send a communication to the Governor for that member stressing the seriousness of the failure to meet obligations to the Trust and urging full and prompt settlement.

    3. The Managing Director will notify the Executive Board normally one month after a financial obligation has become overdue, and will inform the Executive Board of the nature and level of the arrears and the steps being taken to secure payment.

    4. When a member’s longest overdue financial obligation has been outstanding for six weeks, the Managing Director will inform the member concerned that, unless all overdue obligations are settled, a report concerning the arrears to the Trust will be issued to the Executive Board within two weeks. The Managing Director will in each case recommend to the Executive Board whether a written communication should be sent to a selected set of Fund Governors, or to all Fund Governors. If it were considered that it should be sent to a selected set of Fund Governors, an informal meeting of Executive Directors will be held to consider the thrust of the communication. Alternatively, if it were considered that the communication should be sent to all Fund Governors, a formal Board meeting will be held to consider a draft text and the preferred timing.

    5. A report by the Managing Director to the Executive Board will be issued two months after a financial obligation has become overdue, and will be given substantive consideration by the Executive Board one month later. The report will request that the Executive Board limit the member’s use of PRGF Trust resources. A brief factual statement noting the existence and amount of arrears outstanding for more than three months will be posted on the member’s country-specific page on the Fund’s external website. This statement will also indicate that the member’s access to the Fund, including PRGF and HIPC resources, has been and will remain suspended for as long as such arrears remain outstanding. A press release will be issued following the Executive Board decision to limit the member’s use of the PRGF Trust resources. A similar press release will be issued following a decision to lift such limitation. Periods between subsequent reviews of reports on the member’s arrears by the Executive Board will normally not exceed six months. The Managing Director may recommend advancing the Executive Board’s consideration of the reports regarding overdue obligations.

    6. The Annual Report and the financial statements will identify those members with overdue obligations to the Trust outstanding for more than six months.

    Removal from the list of PRGF-eligible countries

    7. When a member’s longest overdue financial obligation has been outstanding for six months, the Executive Board will review the situation of the member and may remove the member from the list of PRGF-eligible countries. Any reinstatement of the member on the list of PRGF-eligible countries will require a new decision of the Executive Board.

    The Fund shall issue a press release upon the decision to remove a member from the list of PRGF-eligible countries. A similar press release shall be issued upon reinstatement of the member on the list. The information contained in such press releases, where pertinent, shall be included in the Annual Report for the year concerned.

    Declaration of noncooperation with the PRGF Trust

    8. A declaration of noncooperation with the PRGF Trust may be issued by the Executive Board whenever a member’s longest overdue financial obligation has been outstanding for twelve months. The decision as to whether to issue such a declaration would be based on an assessment of the member’s performance in the settlement of its arrears to the Trust and of its efforts, in consultation with the Fund, to follow appropriate policies for the settlement of its arrears. Three related tests would be germane to this decision regarding (i) the member’s performance in meeting its financial obligations to the Trust taking account of exogenous factors that may have affected the member’s performance; (ii) whether the member had made payments to creditors other than the Fund while continuing to be in arrears to the Trust; and (iii) the preparedness of the member to adopt comprehensive adjustment policies. The Executive Board may at any time terminate the declaration of noncooperation in view of the member’s progress in the implementation of adjustment policies and its cooperation with the Fund in the discharge of its financial obligations.

    Upon a declaration of noncooperation, the Fund could also decide to suspend the provision of technical assistance. The Managing Director may also limit technical assistance provided to a member, if in his judgment that assistance was not contributing adequately to the resolution of the problems associated with overdues to the Trust.

    The Fund shall issue a press release upon the declaration of noncooperation and upon the termination of the declaration. The information contained in such press releases shall be included in the Annual Report(s) for the year(s) concerned.”

    Decision No. 12545-(01/84) PRGF

    August 22, 2001

    (d) Amendment to Procedures for Dealing with Members with Arrears to General and SDR Departments

    In the Procedures for Dealing with Members with Overdue Financial Obligations to the Fund adopted by the Executive Board on August 17, 1989,

    • (i) the title of the decision shall be amended to read:

      • “Procedures for Dealing with Members with Overdue Financial Obligations to the General Department and the SDR Department”;

    • (ii) the following paragraphs shall be added between the paragraph beginning with the terms “A complaint by the Managing Director …” and the paragraph beginning with the terms “The Annual Report and the financial statements …”:

      • “When a member has overdue financial obligations outstanding for more than three months, a brief factual statement noting the existence and amount of such arrears will be posted on the member’s country-specific page on the Fund’s external website. The statement will be updated as necessary. It will also indicate that the member’s access to the Fund, including PRGF and HIPC resources, has been and will remain suspended for as long as arrears remain outstanding.

      • A press release will be issued following the Executive Board’s decision to limit the member’s use of the general resources or, if the member has overdue obligations in the SDR Department, to suspend its right to use SDRs. A similar press release will be issued following a decision to lift such limitation or suspension.”; and

    • (iii) the following paragraph shall be added between the paragraph beginning with the terms “A declaration of censure or noncooperation would come as an intermediate step …” and the paragraph beginning with the terms “A draft of the declaration is set out …”:

      • “Upon a declaration of noncooperation, technical assistance to the member will be suspended unless the Executive Board decides otherwise.”

    Decision No. 12546-(01/84)

    August 22, 2001

    (e) Policy to Publish Information on Missed Repurchase Expectations

    When a member has failed for three months to meet a repurchase expectation under paragraph 1(b) of Decision No. 5703-(78/39),19 paragraph 10(a) of Decision No. 4377-(74/114),20 or paragraphs 6(b) or 19 of Decision No. 11627-(97/123) SRF/CCL,21 a brief factual statement noting such failure and the resulting suspension of use of Fund resources will be posted on the member’s country-specific page on the Fund’s external website. This statement will be removed when the Executive Board lifts the suspension, or if the member meets the missed repurchase expectation or settles the associated repurchase obligation.

    Decision No. 12547-(01/84) SRF/CCL

    August 22, 2001

    (f) Amended Decisions

    1. References in Fund decisions to Decision No. 7842-(84/165)22 on the guidelines on corrective action in cases of misreporting and noncomplying purchases in the General Resources Account shall be understood to be references to Decision No. 12249-(00/77)23 July 27, 2000.

    2. Decision No. 7931-(85/41),24 March 13, 1985, and Decision No. 7999-(85/90),25 June 5, 1985 are hereby abrogated.

    Decision No. 12548-(01/84)

    August 22, 2001

    (g) Burden Sharing—Implementation in FY2003

    Section I. Principles of Burden Sharing

    1. The financial consequences for the Fund that stem from the existence of overdue financial obligations shall be shared between debtor and creditor member countries.

    2. The sharing shall be applied in a simultaneous and symmetrical fashion.

    Section II. Determination of the Rate of Charge

    The rate of charge referred to in Rule 1–6(4) shall be adjusted in accordance with the provisions of Section IV of this decision and Section IV of Executive Board Decision No. 12189-(00/45)26 adopted April 28, 2000.

    Section III. Adjustment for Deferred Charges

    Notwithstanding paragraph 1(a) of Section IV of Executive Board Decision No. 12189-(00/45),27 adopted April 28, 2000, the rate of charge and the rate of remuneration determined under that Section shall be rounded to two decimal places.

    Section IV. Amount for Special Contingent Account-1

    1. An amount of SDR 94 million shall be generated during financial year 2003 in accordance with the provisions of this Section and shall be placed to the Special Contingent Account-1 referred to in Decision No. 9471-(90/98),28 adopted June 20, 1990.

    • 2. (a) In order to generate the amount to be placed to the Special Contingent Account-1 in accordance with paragraph 1 of this Section, notwithstanding Rule I-6(4)(a) and (b) and Rule I-10, the rate of charge referred to in Rule 1–6(4) and, subject to the limitation in (b), the rate of remuneration prescribed in Rule I-10 shall be adjusted in accordance with the provisions of this paragraph.

    • (b) Notwithstanding paragraph 1 above, adjustments to the rate of charge and the rate of remuneration under this paragraph shall be rounded to two decimal places. No adjustment in the rate of remuneration under this paragraph shall be carried to the point where the average remuneration coefficient would be reduced below 85 percent for an adjustment period.

    • (c) The adjustments under this paragraph shall be made as of May 1, 2002, August 1, 2002, November 1, 2002 and February 1, 2003; shortly after July 31 for the period May 1 to July 31; shortly after October 31 for the period from August 1 to October 31; shortly after January 31 for the period from November 1 to January 31; shortly after April 30 for the period from February 1 to April 30.

    • 3. (a) Subject to paragraph 3 of Decision No. 8780-(88/12),29 adopted January 29, 1988, the balances held in the Special Contingent Account-1 shall be distributed in accordance with the provisions of this paragraph to members that have paid additional charges or have received reduced remuneration as a result of the adjustment when there are no outstanding overdue charges and repurchases, or at such earlier time as the Fund may decide.

    • (b) Distributions under (a) shall be made in proportion to the amounts that have been paid or have not been received by each member as a result of the respective adjustments.

    • (c) If a member that is entitled to a payment under this paragraph has any overdue obligation to the Fund in the General Department at the time of payment, the member’s claim under this paragraph shall be set off against the Fund’s claim in accordance with Decision No. 8271-(86/74),30 adopted April 30, 1986, or any subsequent decision of the Fund.

    • (d) Subject to paragraph 4 of Decision No. 8780-(88/12),31 adopted January 29, 1988, if any loss is charged against the Special Contingent Account-1, it shall be recorded in accordance with the principles of proportionality set forth in (b).

    Section V. Review

    The operation of this decision shall be reviewed when the adjustment in the rate of remuneration reduces the remuneration coefficient to the limit set forth in paragraph 2(b) of Section III of this decision and Section IV of Executive Board Decision No. 12189-(00/45),32 adopted April 28, 2000.

    Decision No. 12731-(02/43)

    April 26, 2002

    (h) Review of System of Special Charges

    The Fund has reviewed the system of special charges applicable to overdue obligations to the General Reserve Account, the Structural Adjustment Facility, and the Trust Fund.

    Decision No. 12732-(02/43) G/SAF/TR

    April 26, 2002

    F. Eleventh General Review of Quotas

    (a) Period for Consent to Increases—Extension

    Pursuant to paragraph 4 of the Resolution of the Board of Governors No. 53-2,33 “Increase in Quotas of Fund Members—Eleventh General Review,” the Executive Board decides that notices of consent from members to increases in their quotas must be received in the Fund by 6:00 p.m., Washington time, on January 31, 2002.

    Decision No. 12533-(01/76)

    July 18, 2001

    (b) Period for Consent to Increases—Extension

    Pursuant to paragraph 4 of the Resolution of the Board of Governors No. 53–2,34 “Increase in Quotas of Fund Members-Eleventh General Review,” the Executive Board decides that notices of consent from members to increases in their quotas must be received in the Fund by 6:00 p.m.. Washington time, on July 31, 2002.

    Decision No. 12672-(02/11)

    January 31, 2002

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

    The instrument establishing the Framework Administered Account for Technical Assistance Activities (Decision No. 10942-(95/33)35), as amended, is hereby further amended as provided in the Annex to EBS/01/202 (11/29/01).

    Decision No. 12641-(01/126)

    December 6, 2001

    H. Biennial Review of Implementation of Fund Surveillance and of 1977 Surveillance Decision – Overview; and Extension of Deadline for Review

    In Decision No. 12178 -(00/41),36 adopted on April 10, 2000, “April 10, 2002” in the first and second paragraphs shall be replaced with “July 10, 2002.”

    Decision No. 12713-(02/38)

    April 5, 2002

    I. General Data Dissemination System—Amendment

    The Executive Board approves the draft amendments to the General Data Dissemination System as set forth in SM/01/208, Sup. 4 (11/5/01)

    Decision No. 12614-(01/117)

    November 12, 2001

    J. Reducing Work Pressures

    (a) Article IV Consultation Documentation—Recent Economic Developments

    Article IV consultation documentation shall no longer include Recent Economic Development reports. Instead the staff could incorporate, as needed, the appropriate information on recent economic developments in a Selected Issues paper as analytical background for key policy issues.

    Decision No. 12661-(02/6)

    January 22, 2002

    (b) Reports on Observance of Standards and Codes

    Individual hard copies of Reports on the Observance of Standards and Codes that are to be published shall no longer be circulated to Executive Directors.

    Decision No. 12662-(02/6)

    January 22. 2002

    (c) Summings Up for Internal Purposes on Use of Fund Resources

    Following any Executive Board meeting on the use of Fund resources by a member combined with an Article IV consultation, summings up for internal purposes on the use of Fund resources shall no longer be prepared. Instead, a paragraph or paragraphs concerning Executive Directors’ views regarding the member’s Fund-supported program shall be attached to the summing up of the Board discussion of the Article IV consultation. Such paragraph(s) shall not be published with any Public Information Notice following the meeting.

    Decision No. 12663-(02/6)

    January 22, 2002

    K. European Central Bank

    (a) Observer Status—European Union Accession Countries

    It is understood, for the purposes of paragraph 2 of the Decision on the Observer Status of the European Central Bank (ECB) (Decision No. 11875-(99/1),37 adopted December 21, 1998), that the ECB shall be invited to send a representative to meetings of the Executive Board on Fund surveillance over the policies of, and to meetings of the Executive Board on use of Fund resources by, members that are accession countries to the European Union, provided that there is no objection from the member concerned.

    Currently, the following members are accession countries to the European Union:

    Bulgaria, Cyprus, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovak Republic, Slovenia, and Turkey.

    The Executive Board will be informed by management, after consultation with the Presidency of the Council of the European Union, of any changes to that list.

    Decision No. 12479-(01/43)

    April 27, 2001

    (b) Observer Status

    The Executive Board has reviewed Decision No. 11875-(99/1),38 adopted December 21, 1998. The Decision shall be reviewed again before January 1, 2003.

    Decision No. 12652-(02/1)

    December 28, 2001

    Appendix IV: IMF Relations with Other International Organizations

    FY2002 presented many challenges as economic activity weakened throughout the world, increasing the risks faced by vulnerable countries. Restoring the momentum of global economic growth has required an unprecedented level of cooperation between international financial institutions. Collaboration among the IMF, World Bank, the United Nations (UN) and its specialized agencies, the World Trade Organization (WTO), the Organization for Economic Cooperation and Development (OECD), the Bank for International Settlements (BIS), regional development banks, and intergovernmental groups took on added significance in an uncertain global economic environment.

    Regional Representation and Technical Assistance

    The IMF’s Office in Europe, the Office in Geneva, and the Regional Office for Asia and the Pacific maintain close ties with other international organizations. The Office in Europe (Paris Office) liaises with regional and international institutions located in Europe and contributes to the IMF’s European operations, focusing on multilateral and regional surveillance. The Paris Office also provides secretariat support to the Group of Ten, liaises with bilateral donors, regularly participates in and represents the IMF at donor and surveillance committees of the OECD in Paris, and keeps close contact with the BIS in Basel and the European Commission in Brussels. Additionally, Paris Office staff attend, on an ad hoc basis, meetings of organizations such as the Financial Action Task Force (FATF), the European Parliament, and the Council of Europe.

    The Office in Geneva liaises with, monitors, and reports on activities of Geneva-based multilateral agencies in areas relevant to the IMF’s mandate. Particular emphasis is placed on the WTO and the multilateral trading system. The Office also represents the IMF in a number of multiagency initiatives, such as the Integrated Framework for Trade-Related Technical Assistance to developing countries. In addition, the Office maintains contacts with the International Labor Organization (ILO), the UN Conference on Trade and Development (UNCTAD), the International Trade Center (ITC), the UN Economic Commission for Europe (ECE), the Inter-Parliamentary Union (IPU), and a number of other Geneva-based agencies.

    The IMF’s Office for Asia and the Pacific, located in Tokyo, is responsible for enhancing surveillance and promoting the IMF’s initiatives in the Asia region. The office works closely with such regional groupings as the Asia-Pacific Economic Cooperation (APEC) forum; the Association of South East Asian Nations (ASEAN); the South Pacific Forum (FORUM); the South East Asian Central Banks (SEACEN); and the Executives’ Meeting of East Asia and Pacific Central Banks (EMEAP). It provides the secretariat for the Manila Framework Group. The office maintains close contact with two regional organizations—the Asian Development Bank (AsDB) and the United Nations Economic and Social Commission of Asia and the Pacific (ESCAP)—as well as with the World Bank’s office in Japan.

    FY2002 saw the establishment of a regional technical assistance center in Bridgetown, Barbados. The Caribbean Regional Technical Assistance Center (CARTAC), a joint initiative by the IMF, bilateral donors, and other multilateral institutions to help 20 Caribbean countries improve their economic and fiscal management practices, was inaugurated on November 5, 2001. The IMF’s Executive Board approved the establishment of two African Regional Technical Assistance Centers (AFRITACs). The Dar es Salaam and Abidjan centers will help countries build local capacity for East Africa and West Africa, respectively. The IMF provides policy-related training to public sector officials and private sector managers through its support of the Joint Africa Institute, the Joint Vienna Institute, and the Singapore Regional Training Institute. In addition, three regional training programs have been added in the past three years—the IMF-Arab Monetary Fund Regional Training Program in the United Arab Emirates, the Joint China Training Program, and in FY2002, the Joint Regional Training Center for Latin America in Brazil. Each of these regional facilities and programs offers courses and seminars on topics of relevance to regional capacity building. (For more details, see Chapter 7.)

    Liaison with Intergovernmental Groups

    One notable aspect of the altered international environment has been the increased emphasis given to collaboration with intergovernmental groups involved with devising measures to combat money laundering and the financing of terrorism. (See Chapter 3.)

    The IMF, along with the World Bank, is working with the FATF to develop a methodology for assessing anti-money-laundering and combatting the financing of terrorism (AML/CFT) measures contained in the FATF 40 Recommendations on Money Laundering and their Eight Special Recommendations on Terrorist Financing. IMF staff attended the FATF Extraordinary Plenary Meeting, on October 29–30, 2001, in Washington and the global Forum on Countering the Financing of Terrorism, on February 1, 2002, in Hong Kong SAR.

    The Financial Stability Forum (FSF) noted efforts to combat the financing of terrorism at its seventh meeting held on March 25–26, 2002, in Hong Kong SAR. As a member of the FSF, the IMF takes the lead on organizing and implementing a process for assessing offshore financial centers’ adherence to international standards. The chairman of the FSF participated as an observer at the November 2001 and April 2002 meetings of the International Monetary and Financial Committee. Contacts were established between the IMF and the Egmont Group, which comprises the Financial Intelligence Units of 58 member countries. The Basel Committee on Banking Supervision, the International Association of Insurance Commissioners, the International Organization of Securities Commissioners (IOSCO), and the Egmont Group also collaborated in the development of sector-specific contributions to the methodology for assessing anti-money-laundering and counterterrorist financing measures. Besides this stepped-up work in the AML/CFT area, the IMF continues to work closely with these bodies on other aspects of the international financial system, such as standards and codes.

    Throughout FY2002, the IMF participated actively in the meetings and activities of other major intergovernmental groups, including the Group of Seven, Group of Ten, Group of Twenty, and Group of Twenty-Four. Managing Director Horst Köhler attended the third meeting of the G-20, held in Ottawa, on November 16, 2001. On February 9, 2002, he met with finance ministers and central bank governors of the G-7 countries in Meech Lake, Canada, to review recent economic developments.

    Relations with the United Nations

    The IMF cooperates with the United Nations on a regular basis through the IMF Special Representative to the UN and other institutional contacts, including management and the Executive Board.

    During FY2002, the main issue on which the IMF and UN cooperated was the preparation for the UN International Conference on Financing for Development (FfD). On March 18–22, 2002, 51 heads of state or government, along with ministers of finance, trade, development, and foreign affairs, gathered in Monterrey, Mexico, for the conference. Throughout FY2002, IMF staff contributed to the work of the FfD Preparatory Committee, providing input for the event and its concluding document. Discussions between the chairpersons of the Preparatory Committee for the conference and the IMF Executive Board and management took place prior to the Monterrey conference. Speaking at the conference, the Managing Director noted the role that international financial institutions have in reinforcing the momentum for reform and consensus building.

    The IMF’s Managing Director participated in the High-Level Segment of the Annual Session of the Economic and Social Council (ECOSOC) on “Sustainable Development of Africa and the Role of the United Nations System” held in Geneva on July 16, 2001. He pledged the IMF’s support for a global partnership for African economic development. The New African Initiative, launched previously at the African heads of state meeting in Lusaka, provided the session’s reference point. The Initiative was subsequently renamed the New Partnership for Africa’s Development, or NEPAD. Besides issues of particular concern to Africa, subjects of general interest discussed at the session included the prospects of opening a new round of multilateral trade negotiations, overseas development assistance, the possibility of enlarging the HIPC Initiative, and the overall coherence of international policymaking.

    Deputy Managing Director Eduardo Aninat attended the High-Level Dialogue between ECOSOC, the Bretton Woods institutions, and the WTO following the Spring Meetings of the IMFC/DC. IMF management also participated in the sessions of the Chief Executives Board (CEB), which brings together the UN organizations, the IMF, the World Bank, and the WTO under the chairmanship of the UN Secretary-General.

    The UN’s announcement of the Millennium Development Goals (MDGs) on September 19, 2001, was welcomed by Managing Director Köhler. The MDG targets and indicators were the outcome of extensive consultations between the UN Secretariat and staff members of the IMF, World Bank, and OECD. They represent the harmonization of International Development Goals and the UN Millennium Declaration.

    Collaboration with the World Bank

    The collegial relationship between the IMF and the World Bank dates back to their founding at the Bretton Woods Conference of 1944. As mandated in their respective Articles of Agreements and in the joint 1989 Concordat, each institution plays an important, complementary role in ensuring the world’s economic growth and stability. Both institutions conduct regular consultations of senior staffs, participate together on missions, attend joint meetings, and share documents. Collaboration at the staff level, both in policy advice and on operational matters, is supported by the ongoing dialogue between IMF and Bank management.

    As the missions of the institutions have evolved over time, management has periodically redefined the division of labor between the two organizations, with a view toward enhancing their overall effectiveness. FY2002 saw a renewed momentum to strengthen the framework for collaboration. Building upon the joint management statements of 1998 and 2000, the institutions together reviewed IMF-Bank cooperation in supporting country development. Responsibilities were refined and clarified, as both organizations sought to ensure a more systematic working relationship.

    Particular emphasis was given to streamlining and focusing conditionality. Although policy measures critical for a program to achieve its macroeconomic goal should continue to be included, program design and the conditions attached to program financing must be founded on strong national ownership. The revised framework, detailed in a joint document dated August 23, 2001, seeks to reduce institutional overlap and reinforce sustained implementation of country economic reforms.

    An important element in this process has been the application of the “lead agency” concept for program design and monitoring. In order to better delineate roles, improve accountability, and increase transparency, one institution is identified as the agency to lead staff work on specific policy issues. Within the overall collaboration framework, each institution retains ultimate responsibility for its own lending decisions, reflecting separate accountability.

    Among the major joint initiatives completed in FY2002 were a review of the Poverty Reduction Strategy Paper (PRSP) approach and a set of joint papers discussing the status of implementation of the HIPC Initiative. Other joint initiatives to support poverty reduction and growth included a statement from the Managing Director of the IMF and the President of the Bank to the WTO, calling for unrestricted market access for poor countries; a commitment to implementing the “Monterrey Consensus,” to fund financing for development; and the establishment of regional technical assistance centers, to support local capacity building. (For more details, see Chapter 5).

    Finally, as discussed above under “Liaison with Intergovernmental Groups,” since April 2001 the IMF and the Bank have intensified their work on global anti-money-laundering efforts and, since September 2001, on combating the financing of terrorism, including assessment of the AML/CFT framework in the context of the joint IMF-Bank Financial Sector Assessment Program work.

    Cooperation with Regional Development Banks

    Whether working to prevent crisis, alleviate poverty, combat financial abuse, or strengthen the global economic system, the IMF cooperates closely with the world’s multilateral and regional development banks. This collaboration includes formulation and implementation of policies in the economic and financial areas, release of information, and exchange of staff visits. In FY2002, the IMF worked with the Asian Development Bank (AsDB) to establish a regional “early warning system,” with the European Bank for Reconstruction and Development (EBRD), the AsDB, and the World Bank to promote poverty reduction and debt sustainability in the low-income countries of the Commonwealth of Independent States, with the Inter-American Development Bank (IDB) to address the crisis in Argentina, and with the African Development Bank (AfDB) to launch the AFRITACs. IMF staff regularly attend meetings, seminars, and forums sponsored by other regional, economic, and financial organizations throughout the world. Representatives of multilateral creditors are invited to attend country-specific Board discussions of HIPC matters.

    In October 2001 and in March 2002, the IMF, together with the World Bank and 11 regional development banks, participated in semiannual meetings of multilateral creditors to HIPCs to review the progress of implementation of the HIPC Initiative. In the later part of 2001, the IMF and World Bank conducted a series of videoconferences with heads of multilateral development banks to discuss a number of significant issues, ranging from the global economic outlook to the combating of money laundering and terrorist financing.

    Role of IMF Management

    In a globalized world, close cooperation between financial, trade, and development organizations is essential. Efforts to prevent crisis and to promote growth depend upon the coordinated actions of many international institutions. This is especially true in times of economic stress and uncertainty. IMF management plays an important role in promoting this multilateral collaboration.

    From May 10 to 15, IMF Managing Director Köhler visited Saudi Arabia, Bahrain—to attend the Gulf Cooperation Council (GCC) ministerial meeting—Egypt, and Paris to meet with authorities of the Maghreb countries. On May 31, 2001, Mr. Köhler addressed the spring membership meeting of the Institute for International Finance, held in Hong Kong SAR, where he spoke on the need to build a new partnership between the private financial sector and public institutions like the IMF. At the High-Level Meeting of the ECOSOC in Geneva on July 16, 2001, he pledged the IMF’s support for a global partnership for African economic development. The Managing Director addressed the Fourth Ministerial Conference of the WTO, in Doha, Qatar, on November 10, 2001, regarding the importance of embarking on a new trade round to help build a better world. On December 14, 2001, Mr. Köhler attended the Informal Meeting of the ECOFIN Council in Laeken, Belgium, where he welcomed the introduction of euro notes and coins as an emblem of the successes and challenges of European integration. At the International Conference on Poverty Reduction Strategies in Washington on January 14, 2002, the Managing Director reviewed the ongoing process of change in the IMF’s work with poor countries. Also in Washington, while speaking to the Conference on Humanizing the Global Economy on January 28, 2002, Mr. Köhler advanced the proposition that there is an obligation to work for better globalization. At the International Conference on Financing for Development in Monterrey, Mexico, on March 21, 2002, he urged adoption of the “Monterrey Consensus” and committed the IMF to playing an active role in the fight against world poverty. On April 17, 2002, the Managing Director outlined the IMF’s agenda for promoting sustained growth and international financial stability, at the National Press Club in Washington. From April 28 to May 3, 2002, Mr. Köhler conducted his third tour of the African continent since assuming office. He visited Dar es Salaam, Kinshasa, Abidjan, Ouagadougou, and Accra, where he attended meetings with heads of state, participated in a series of workshops, and held discussions with a broad cross section of society on a range of topics of importance to Africa.

    The IMF’s Deputy Managing Directors also attended many conferences, meetings, and seminars throughout the year. On June 1, 2001, then First Deputy Managing Director Stanley Fischer addressed the Institute of Policy Studies in Singapore regarding the prospect of future relations between the IMF and member countries in Asia. In Berlin, on June 11, 2001, Deputy Managing Director Shigemitsu Sugisaki spoke to the International Policy Dialogue on the need to increase the effectiveness of conditionality, while giving maximum scope for national ownership. At the General Meeting of ELKARGI in San Sebastian, Spain, on June 29, 2001, Deputy Managing Director Eduardo Aninat reflected on the opportunities and risks of globalization. Current First Deputy Managing Director Anne Krueger proposed a new approach to sovereign debt restructuring at the National Economists’ Club Annual Dinner in Washington on November 26, 2001.

    Appendix V: External Relations

    In FY2002, the IMF accelerated its efforts to increase its transparency and communicate effectively with people around the world. With regard to public statements and publications, the main activities were:

    • Publishing a much wider range of country- and policy-related documents on the IMF’s website (www.imf.org) under the IMF’s new policy on transparency, adopted in 2000. Information and documents on the Financial Sector Assessment Program (FSAP) were added in FY2002. The website continued to be very popular, attracting users in steadily growing numbers, and a program of regular enhancements to the website’s content, usability, and search facility begun during the financial year is expected to increase further the importance of the website in the IMF’s external communications.

    • Speeches and other public appearances by management and senior staff conveyed the IMF’s views on broad policy and economic issues ranging from IMF reform to the outlook for the world economy following September 11, and on specific country and regional issues, ranging from the launch of the euro to the prospects for growth and reform in Russia. The IMF published most speeches on the website within hours of delivery.

    • Publication of economic and financial research and policy analysis papers increased, including three issues of the World Economic Outlook; the inaugural issue of the new quarterly Global Financial Stability Report; a new Annual Research Conference issue of IMF Staff Papers; and a wide array of books, manuals and guides. Occasional Papers, Working Papers, Policy Discussion Papers, pamphlets, and leaflets (see Table V.1).

    • Finance & Development (a quarterly magazine on issues in the international economy) and the IMF Survey (a biweekly journal on the activities of the IMF) were revamped to sharpen their focus on key policy concerns.

    • To make the IMF’s technical and analytical work more accessible, the IMF published new titles in its Economic Issues, Issues Briefs, and Factsheets series. Economic Issues are brief, simplified summaries of policy-related economic research findings. Issues Briefs discuss key issues facing the IMF and the global economy, while Factsheets explain in plain language how the IMF works.

    • Distribution of IMF publications was expedited and expanded in FY2002. A streamlined inventory and order-fulfillment system, using state-of-the-art technology, will ensure timely distribution of publications worldwide. In addition, over 150 libraries in 183 countries were invited to join in the IMF’s Depository Library Program—initiated to guarantee dissemination of IMF publications in member countries where people would otherwise have inadequate access to such information.

    • A study by outside consultants of user requirements and dissemination and pricing strategies for IMF publications was conducted in FY2002. Two key findings were that (1) the IMF could significantly augment the dissemination of its publications, both priced and complimentary, by using e-commerce to contact consumers and complete orders, and—for such Internet publications as International Financial Statistics—to provide online access, and (2) despite the steady spread of electronic media worldwide, print editions of many publications will be needed for an indefinite period, particularly for users in developing countries with limited technology infrastructure.

    Table V.1Publications and Videos Issued, Financial Year Ended April 30, 2002

    *Available in English and selected other languages in full text on the IMF’s website (www.imf.org).

    Reports and Other Documents
    Annual Report of the Executive Board for the Financial Year Ended April 30, 2001*
    (Chinese, English, French, German, and Spanish). Free.
    Annual Report on Exchange Arrangements and Exchange Restrictions, 2001
    $95; $47.50 to full-time university faculty members and students.
    Summary Proceedings of the Fifty-Fifth Meeting of the Board of Governors (2000).* Free.
    The IMF Committee on Balance of Payments Statistics, Annual Report, 2001.* Free.
    Selected Decisions and Selected Documents of the International Monetary Fund. Free.
    By-Laws, Rules, and Regulations, Fifty-Eighth Edition. (May 2001) (English, French, and Spanish). Free.
    IMF Financial Statement, Quarters ended April 30, 2001; October 31, 2001; January 31, 2002. Free.
    Periodic Publications
    Balance of Payments Statistics Yearbook
    Vol. 52, 2001. A two-part yearbook. $78 a year.
    Direction of Trade Statistics
    Quarterly, with yearbook. $128 a year; $89 to full-time university faculty members and students. $45 for yearbook only.
    Finance and Development*
    Quarterly (Arabic, Chinese, English, French, and Spanish). Free by subscription. Airspeed delivery, $20. Individual copies, $10.
    Government Finance Statistics Yearbook
    Vol. 25, 2001 (Introduction and titles of lines in English, French, and Spanish). $65.
    International Financial Statistics
    Monthly, with yearbook (English). $286 a year; $199 to full-time university faculty members and students. $72 for yearbook only. International Financial Statistics is also available on CD-ROM; price information is available on request.
    IMF Staff Papers*
    Three times a year. $56 a year; $28 to full-time university faculty members and students.
    IMF Staff Papers: Special Issue: Transition Economies: How Much Progress? 2001. $18.
    IMF Staff Papers: Special Issue of the Proceedings of the First Annual Research Conference, 2001. $18.
    IMF Research Bulletin*
    Quarterly. Free.
    IMF Survey*
    Twice monthly, once in December (English, French, and Spanish). Private firms and individuals are charged an annual rate of $79. Annual bound editions available for $89: Vol. 30-2001 (English), Vol. 29-2000 (English), Vol. 29-2000 (French), and Vol. 29-2000 (Spanish).
    Occasional Papers
    No. 206. The Dominican Republic: Stabilization, Structural Reform, and Economic Growth
    Alessandro Giustiniani, Werner C. Keller, and Randa E. Sab. 2001.
    No. 207. Malaysia: From Crisis to Recovery
    Kanitta Meesook, II Houng Lee, Olin Liu, Yougesh Khatri, Natalia Tamirisa, Michael Moore, and Mark H. Krysl. 2001.
    No. 208. Yemen in the 1990s: From Unification to Economic Reform
    Klaus Enders, Sherwyn Williams, Nada Choueiri, Yuri Sobolev, and Jan Walliser. 2002.
    No. 209. Methodology for Current Account and Exchange Rate Assessments
    Peter Isard, Hamid Faruqee, G. Russell Kincaid, and Martin Fetherston. 2001.
    No. 210. IMF-Supported Programs in Capital Account Crises
    Attis Ghosh, Timothy Lane, Marianne Schulze-Ghattas, Ales Bulir, Javier Hamann, and Alex Mourmouras. 2002.
    No. 211. Capital Account Liberalization and Financial Sector Stability
    A staff team led by Shogo Ishii and Karl Habermeier. 2002.
    No. 212. Financial Soundness Indicators: Analytical Aspects and Country Practices
    V. Sundararajan, Charles A. Enoch, Armida San Jose, Paul H. Hilbers, Russell C. Krueger, Marina Moretti, and Graham L. Slack. 2002.
    No. 213. The Baltic Countries: Medium-Term Fiscal Issues Related to EU and NATO Accession
    Johannes Mueller, Christian Beddies, Robert Burgess, Vitali Kramarenko, and Joannes Mongardini. 2002.
    No. 214. Advanced Country Experiences with Capital Account Liberalization
    Age Bakker and Bryan Chappie. 2002. (Forthcoming)
    No. 215. Improving Large Taxpayers’ Compliance: A Review of Country Experience
    A Staff Team led by Katherine Baer. 2002.
    Recent Occasional Papers are available for $20 each, with a price of $17.50 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 (April and September) (Arabic, English, French, and Spanish).
    $42; $35 to full-time university faculty members and students.
    World Economic Outlook Interim Assessment (December 2001)
    The Global Economy After September 11, $42; $35.
    Official Financing for Developing Countries, $42; $35.
    Global Financial Stability Report, March 2002
    Four times a year. $42; $35 to full-time university faculty members and students.
    International Capital Markets: Developments, Prospects, and Key Policy Issues* (discontinued)
    By a staff team led by Donald J. Mathieson and Garry J. Schinasi. $42; $35 to full-time university faculty members and students.
    Books and Seminar Volumes
    Can the Poor Influence Policy? Participatory Assessments in the Developing World
    Caroline M. Robb. $22.
    Capacity Building, Governance, and Economic Reform in Africa
    Michel A. Dessart and Roland E. Ubogu. $19.
    Developing Government Bond Markets: A Handbook
    Prepared by the staff of the World Bank and the International Monetary Fund. $40.
    Financial Risks, Stability, and Globalization
    Omotunde E. Johnson. $40.
    Silent Revolution: The International Monetary Fund, 1979–1989
    James M. Boughton. $75.
    Into the EU: Policy Frameworks in Central Europe
    Robert A. Feldman and C. Maxwell Watson. S26.
    Macroeconomic Management: Programs and Policies
    Mohsin S. Khan, Saleh M. Nsouli, and Chorng-Huey Wong (editors). $28.
    Macroeconomic Issues and Policies in the Middle East and North Africa
    Zubair Iqbal, Olumyiwa S. Adedeji, Rina Bhattacharya, Nigel A. Chalk, Pierre Dhonte, Mohamad H. Elhage, and S. Nuri Erbas. $28.
    The Modern VAT
    Liam P. Ebrill, Michael J. Keen, Jean-Paul Bodin, and Victoria P. Summers. $35.
    The West Bank and Gaza: Economic Performance. Prospects, and Policies: Achieving Prosperity and Confronting Demographic Challenges
    Rosa A. Valdivieso, U. Erickson von Allmen, Geoffrey J. Bannister Williams, Hamid R. Davoodi, Felix P. Fischer, and Eva R. Jenkner. $25.
    Manuals and Guides
    Financial Derivatives: A Supplement to the 5th Edition, Balance of Payments Manual (Arabic, Chinese, English, French, Russian, Spanish). $21.
    Government Finance Statistics Manual. S50.
    Guidelines for Public Debt Management. $22.
    International Reserves and Foreign Currency Liquidity: Guidelines for a Data Template (English and Spanish). Anne Y. Kester. $23.
    Monetary and Financial Statistics Manual (French, Russian, Spanish). $35.50
    Quarterly National Accounts Manual: Concepts, Data Sources, and Compilation (French, Spanish). $40.
    Manual on Fiscal Transparency (English, French). $19.50
    Programación financiera: Métodos y aplicación al caso de Colombia. $26.50
    Economic Issues*
    No. 22. The Challenge of Predicting Economic Crises (Arabic)
    Andrew Berg and Catherine Pattillo. 2000. Free.
    No. 23. Promoting Growth in Sub-Saharan Africa: Learning What Works (Arabic, Russian)
    Anupam Basu, Evangelos Calamitsis, and Dhaneshwar Ghura. 2000. Free.
    No. 24. Full Dollarization: The Pros and Cons (Arabic, Chinese, and French)
    Andrew Berg and Eduardo Borensztein. 2000. Free.
    No. 25. Controlling Pollution Using Taxes and Tradable Permits (Arabic, Chinese, French, Russian, and Spanish)
    John Norregaard and Valerie Reppelin-Hill. 2000. Free.
    No. 26. Rural Poverty in Developing Countries: Implications for Public Policy (Chinese, French, Russian, and Spanish)
    Mahmood Hasan Khan. 2001. Free.
    No. 27. Tax Policy for Developing Countries (Arabic, Chinese, French, Russian, and Spanish)
    Vito Tanzi and Howell H. Zee. 2001. Free.
    No. 28. Moral Hazard: Docs IMF Financing Encourage Imprudence by Borrowers and Lenders?
    Timothy D. Lane and Steven T. Phillips. 2002. Free.
    No. 29. The Pension Puzzle: Prerequisites and Policy Choices in Pension Design
    Nicholas Barr. 2002. Free.
    No. 30. Hiding in the Shadows: The Growth of the Underground Economy
    Friedrich Schneider, with Dominik Enste. 2002. Free.
    Pamphlets
    Debt Relief for Poverty Reduction: The Role of the Enhanced HIPC Initiative. Free.
    Macroeconomic Policy and Poverty Reduction
    Brian Ames, Ward Brown, Shanta Devarajan, and Alejandro Izquierdo. Free.
    A New Approach to Sovereign Debt Restructuring Anne O. Krueger. Free.
    The IMF and the Silent Revolution: Global Finance and Development in the 1980s. Free.
    What Is the International Monetary Fund? A Guide to the IMF (Arabic, Chinese, Russian, and Spanish). Free.
    Leaflets
    IMF—Making the Global Economy Work for All. Free.
    Working Papers and Policy Discussion Papers*
    IMF Working Papers and Policy Discussion Papers are designed to make IMF staff research available to a wider audience. They represent work in progress and reflect the views of the individual authors rather than those of the IMF.
    Working Papers 01/49-01/216 and 02/01-/02-105 were issued in FY2002.
    $10 each; $290 for annual subscription.
    Policy Discussion Papers 02/01-02/07 were issued in FY2002.
    $10 each; annual subscription is included as part of the subscription to Working Papers.
    Country Reports*
    IMF Country Reports provide comprehensive material on economic developments and trends in member countries, including key statistics.
    Country Reports 01/67-01/226 and 02/01-02/128 were issued in FY2002. $15 each.
    Videos
    Uganda: A Different Drummer (NTSC, PAL) English. $19.50
    Copies of IMF publications and videos may be obtained from Publication Services, International Monetary Fund, 700 19th Street, N.W., Washington, D.C. 20431, U.S.A.Telephone: (202) 623-7430Telefax: (202) 623-7201E-mail: publications@imf.orgInternet: http://www.imf.orgAdditional information about the IMF and its publications and videos—including the current Publications Catalog, a searchable IMF Publications Database, and ordering information and forms — is available on the World Wide Web (www.imf.org).
    Appendix VI: Press Communiques of the International Monetary and Financial Committee and the Development Committee

    International Monetary and Financial Committee of the Board of Governors of the International Monetary Fund

    PRESS COMMUNIQUÉS

    Fourth Meeting, Ottawa, Canada, November 17, 2001

    1. Recognizing the need for a determined and cooperative policy response to the challenges facing the world economy, the International Monetary and Financial Committee held its fourth meeting in Ottawa on November 17, 2001, under the Chairmanship of Mr. Gordon Brown, Chancellor of the Exchequer of the United Kingdom. The Committee expresses its gratitude to Finance Minister Paul Martin and the Canadian government for hosting this meeting and for the excellent arrangements.

    2. The Committee notes that the September 11 terrorist attacks have prolonged the slowdown in the world economy. Bold policy action has already been taken to support a robust recovery during 2002, but the outlook remains subject to considerable uncertainty. Continuing vigilance is needed, and it is essential that the international community stands ready to take timely action to maintain stability and invigorate growth. The Committee welcomes the Managing Director’s October 5 statement on the situation of the world economy and the IMF response, which outlines a collaborative approach to give a new momentum to the world economy. The IMF has a central role to play, including through a strengthened focus on surveillance, in ensuring global macroeconomic and financial stability and in ensuring that globalization works for the benefit of all.

    3. The advanced economies have a key responsibility to promote early recovery in global growth. The recent easing of monetary policy in the United States, the euro area, and other advanced economies is welcome, and the authorities stand ready to take further action if appropriate. While the scope for discretionary fiscal policy action varies across countries, the advanced economies should allow automatic stabilizers to operate. The Committee stresses that determined implementation of structural reforms to take advantage of the promise of technology for increased productivity is important to restore confidence and growth. Japan, in particular, needs to move ahead with vigorous reforms of its banking and corporate sectors, and Europe should give priority to accelerating labor and product market reforms. The United States stands ready to take further action to support growth, consistent with maintaining sound public finances in the medium term.

    4. Increased trade opportunities will play a vital role in the recovery, and the Committee strongly welcomes the outcome of the Doha meeting of the World Trade Organization and the Doha Development Agenda. All countries should stand firm against protectionist pressures, and the advanced economies, in particular, should improve access to their markets and reduce trade-distorting subsidies both for the benefit of their own citizens and to provide critical support for developing countries. The IMF should strengthen its surveillance of these issues and help promote international efforts to open markets. The Committee is vigilant on stability in the oil market at prices reasonable for consumers and producers.

    5. Emerging markets and developing countries are facing a weakening of global demand, reduced capital flows, higher risk aversion in financial markets, reduced income from tourism, and lower and more volatile commodity prices. Sound and proactive policies in these countries will be critical. The IMF stands ready to provide additional financial assistance, where needed, to those countries pursuing sound policies. The IMF has a range of instruments available and its current financial position is strong. The IMF should be ready to adjust its policies if necessary. The Contingent Credit Line (CCL) is an important signal of the strength of countries’ policies and a safeguard against contagion in financial markets, and the Committee encourages eligible countries to consider applying for it. The Committee also underscores the critical importance of involving the private sector in the prevention and resolution of financial crises. The Committee recommends an early implementation of the Fourth Amendment.

    6. The Committee expresses particular concern at the adverse impact of the global slowdown on low-income countries and heavily indebted poor countries (HIPCs). It calls on the IMF, in close collaboration with the World Bank, to respond flexibly and proactively to the needs of these countries, including through additional concessional financing and debt relief where appropriate. The Committee welcomes the additional contributions to the Poverty Reduction and Growth Facility (PRGF), and encourages further contributions. The IMF, working closely with the World Bank, should intensify its efforts within the Poverty Reduction Strategy Paper (PRSP) framework to assess the poverty and social impacts of reforms on the poor. The Committee looks forward to discussing the findings of the PRGF and the PRSP Reviews at the Spring Meetings next year. The enhanced HIPC Initiative framework provides for the consideration of additional assistance at the completion point if there has been a fundamental change in a country’s economic circumstances due to exceptional exogenous shocks. The Committee recognizes the need to take into account worsening global growth prospects and declines in terms of trade when updating HIPC Initiative debt sustainability analyses at completion point. It encourages the heavily indebted poor countries to continue to work expeditiously toward meeting the conditions that will secure access to debt relief and ensure its effective use, including through the maintenance of sound economic policies. Advanced economies must also be prepared to meet their special responsibility in providing increased development assistance and debt relief to tackle the increased challenges of poverty reduction, and to achieve the Millennium Development Goals. The Committee reiterates the importance of fully financing the enhanced HIPC Initiative, and it urges bilateral donors to fulfill this commitment.

    7. Recognizing the importance of close collaboration and effective partnership among the community of international institutions in this endeavor, Committee members look forward, with their colleagues in the Development Committee, to their joint discussion with the UN Secretary-General, Mr. Kofi Annan, on how best to work together to meet the challenges ahead, including in the context of the upcoming Conference on Financing for Development.

    8. The Committee expresses grave concern at the use of the international financial system to finance terrorist acts and to launder the proceeds of illegal activities. It therefore calls on all member countries to ratify and implement fully the UN instruments to counter terrorism, particularly United Nations Security Council Resolution 1373, and welcomes and supports the Special Recommendations of the Financial Action Task Force (FATF) to combat terrorist financing. Each member should freeze, within its jurisdiction, the assets of terrorists and their associates, close their access to the international financial system, and, consistent with its laws, make public the list of terrorists whose assets arc subject to freezing and the amount of assets frozen, if any, with monthly reports. The fight against money laundering and the financing of terrorism requires the active participation of both financial intermediaries and the public sector. The Committee endorses the IMF’s action plan to intensify, where consistent with its mandate and expertise, its contribution to this global effort, namely by:

    • extending the IMF’s involvement beyond anti-money laundering to efforts aimed at countering terrorism financing;

    • expanding its anti-money-laundering work, including through Financial Sector Assessment Programs (FSAPs), to cover legal and institutional frameworks;

    • accelerating its program of Offshore Financial Center assessments, and undertaking onshore assessments in the context of the FSAP;

    • helping countries identify gaps in their anti-money-laundering and anti-terrorist-financing regimes in the context of Article IV voluntary questionnaires;

    • enhancing its collaboration with the FATF on developing a global standard covering the FATF recommendations, and working to apply the standard on a uniform, cooperative, and voluntary basis; and

    • increasing technical assistance to enable members to implement effectively the agreed international standards.

    In addition, the Committee urges further international action to combat the financing of terrorism, and calls for:

    • all countries to establish financial intelligence units to receive and process reports of suspicious transactions from the country’s financial sector, and to monitor and analyze suspected terrorist funds;

    • provisions to ensure the sharing of information and cooperation between national financial intelligence units, building on the work of the Egmont Group; and

    • the deployment of technical assistance to ensure that every country can play its part, based on support either bilaterally or through an international trust fund.

    Countries are urged to take these measures as soon as possible, preferably by February 1, 2002.

    The IMF should report on progress at its Spring 2002 Meeting, with a full report at its Annual Meeting.

    9. The Committee encourages the IMF to continue to strengthen its surveillance and crisis prevention, including through the implementation of standards and codes (and related technical assistance), and emphasizes that these remain key priorities. It calls on the IMF to implement the agreed framework for private sector involvement, and to intensify the ongoing analysis of outstanding issues. It welcomes the progress on improving the effectiveness of conditionality through streamlining and enhancing the country ownership of IMF-supported programs, and looks forward to reviewing progress in this area at its next meeting. Quotas should reflect developments in the international economy. The Committee looks forward to further work on this issue. The Committee looks forward to the Independent Evaluation Office (IEO) finalizing its work program and to receiving a progress report on its activities at the next meeting.

    10. The Committee expresses its heartfelt appreciation to Stanley Fischer and Jack Boorman for their eminent records of service to the IMF and deep commitment to the well-being of all its member countries. Both have been pivotal in shaping the role of the IMF in the globalized economy and the evolving international financial architecture.

    11. The next meeting of the IMFC will be held in Washington, D.C. on April 21, 2002.

    Annex: International Monetary and Financial Committee Attendance November 17, 2001

    Chairman

    Gordon Brown

    Managing Director

    Horst Köhler

    Members or Alternates

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

    Sir Edward George, Governor, Bank of England (Alternate for Gordon Brown, Chancellor of the Exchequer, United Kingdom)

    Domingo Cavallo, Minister of Economy, Argentina

    Peter Costello, Treasurer, Australia

    Dai Kianglong, Governor, people’s Bank of China

    M.R. Pridiyathorn Devakula, Governor, Bank of Thailand

    Emile Doumba, Minister of Finance, Economy, Budget and Privatization, Gabon

    Ernst Welteke, President, Deutsche Bundesbank (Alternate for Hans Eichel, Federal Minister of Finance, Germany)

    Laurent Fabius, Minister of Economy, Finance and Industry, France

    Francisco Gil Diaz, Secretary of Finance and Public Credit, Mexico

    Sultan Bin Nasser Al-Suwaidi, Governor, Central Bank of the United Arab Emirates (Alternate for Mohammed K. Khirbash, Minister of State for Finance and Industry, United Arab Emirates)

    Aleksei Kudrin, Deputy Chairman of the Government and Minister of Finance, Russian Federation

    Mohammed Laksaci, Governor, Banque d’Algérie

    Pedro Sampaio Malan, Minister of Finance, Brazil

    Paul Martin, Minister of Finance, Canada

    Mrs. Linah K. Mohohlo, Governor, Bank of Botswana

    Sauli Niinistö, Minister of Finance, Finland

    Paul H. O’Neill, Secretary of the Treasury, United States

    Didier Reynders, Minister of Finance, Belgium

    Masaru Hayami, Governor, Bank of Japan (Alternate for Masajuro Shiokawa, Minister of Finance, Japan)

    Yashwant Sinha, Minister of Finance, India

    Giulio Tremonti, Minister of Economy and Finance, Italy Jean-Pierre Roth, Chairman of the Governing Board, Swiss National Bank (Alternate for Kaspar Villiger, Minister of Finance, Switzerland)

    Gerrit Zalm, Minister of Finance, Netherlands

    Observers

    Mary W. Covington, Associate Director of the Washington Branch, International Labor Organization (ILO)

    Andrew D. Crockett, Chairman, Financial Stability Forum (FSF)

    Nitin Desai, Under-Secretary-General for Economic and Social Affairs, United Nations (UN)

    Willem F. Duisenberg, President, European Central Bank (ECB)

    John William Hancock, Counsellor, Trade and Finance Division, World Trade Organization (WTO)

    André Icard, Assistant General Manager, Bank for International Settlements (BIS)

    Jan Allen Kregel, High Level Expert in International Finance, United Nations Conference on Trade and Development (UNCTAD)

    Klaus Regling, Director-General, European Commission

    Yashwant Sinha, Chairman, Joint Development Committee

    Ignazio Visco, Head, Economics Department, Organization for Economic Co-operation and Development (OECD)

    James D. Wolfensohn, President, World Bank

    Fifth Meeting, Washington, D.C., April 20, 2002

    1. The International Monetary and Financial Committee held its fifth meeting in Washington, D.C. on April 20, 2002, under the Chairmanship of Mr. Gordon Brown, Chancellor of the Exchequer of the United Kingdom. The Committee welcomes the internanational community’s decisive policy actions, especially following the tragic events of September 11, 2001, to maintain financial stability, restore the momentum of world economic growth, and reinvigorate the fight against poverty. We will also sustain our global action to combat money laundering and the financing of terrorism. Our meeting in Ottawa last November emphasized the importance of a collaborative approach for the IMF and its members. Going forward, we will continue to work together for sustained, broad-based growth, creating opportunities for productive employment, reducing vulnerabilities, opening up our economies for trade, and providing resources for durable poverty reduction.

    The Global Economy

    2. Since the Committee’s last meeting, the prospects for the world economy have improved markedly. The challenge now is for governments to help foster the global recovery that is under way. This will require continued vigilance and a further strengthening of medium-term policy frameworks—both to improve prospects for sustainable growth and stability, and to reduce vulnerabilities. The Committee notes the uncertainties associated with the international security issues around the world. The Committee notes also the deteriorating situation in the Middle East. The Committee underscores the importance of stability in oil markets at prices reasonable for consumers and producers.

    3. The advanced economies have a responsibility to promote a strong and sustained world economic recovery. While keeping inflation under control, monetary policies should remain broadly supportive of growth. In countries where the recovery is more advanced, consideration may need to be given in the months ahead to reversing earlier policy easing. Reforms should be pursued vigorously, with the aim of improving economic flexibility and resilience, contributing to high and sustainable world growth, and supporting the orderly reduction of persistent imbalances in the global economy. This process will be helped, in Japan, by decisive action to reform the banking and corporate sectors, along with monetary easing to help end deflation; in Europe, by continued progress with wide-ranging reforms to enhance its growth potential; and in the United States, by focusing on the efforts needed over the medium term to preserve fiscal balance.

    4. The recovery in industrial countries will contribute to supporting activity in emerging market and developing countries. The Committee is encouraged that many emerging market economies have become more resilient by the adoption of sound economic policies—including more sustainable exchange rate regimes. It will nevertheless remain crucial to further strengthen fiscal positions, and to press ahead with corporate, financial, and institutional reforms to support the emerging recovery and attract foreign direct investment. Improved differentiation and risk assessments by markets have served to limit so far the contagion effects of the Argentine crisis. The Committee acknowledges the steps being taken by Argentina to address its difficult economic situation, and urges the authorities, in cooperation with the Fund, to move quickly to reach agreement on a sustainable economic program that could receive the support of the international financial institutions and provide the basis for the reestablishment of stability and growth.

    5. The Committee strongly welcomes the commitment by the international community, at the UN Conference in Monterrey, to improve living standards and reduce poverty through sound policies and higher and more effective aid. It fully supports the New Partnership for Africa’s Development and its call for strong domestic ownership, sound policies, strengthened institutions, and improved governance. The Committee welcomes recent announcements of increased and more effective aid, and urges further progress. The Monterrey Consensus will constitute an important input to the World Summit on Sustainable Development in Johannesburg. The Committee also welcomes the new initiative to enhance growth and reduce poverty in low-income CIS countries.

    6. The Committee stresses the vital importance of more open trade for a durable economic recovery, and for sustained, broad-based growth in the developing countries in particular. It urges all countries to resist protectionist pressures and to continue to lower trade barriers, concluding the Doha trade round successfully and in a timely manner. Enlarging market access for developing countries and phasing out trade-distorting subsidies will benefit both developed and developing countries. The Committee welcomes the commitment, reiterated at Monterrey, to work toward the objective of duty and quota-free market access to the exports of least-developed countries. It also notes the potential for increased opportunities from lowering trade barriers among developing countries.

    Strengthening Crisis Prevention and Resolution

    7. Surveillance remains central to the IMF’s mandate to promote sound economic growth and financial stability, and to help prevent crises. The Committee is encouraged by the substantial progress in recent years to adapt and broaden the coverage of surveillance in response to a changing global environment, while focusing on issues central to economic and financial stability.

    8. The Committee calls on the IMF to spare no effort in enhancing the high quality of its policy advice, and on members to implement this advice. Surveillance will be further enhanced by:

    • strengthened assessments of vulnerabilities, with particular attention to debt sustainability and the private sector’s balance sheet exposure;

    • focusing on the global impact of the policies, including trade policies, of the largest economies;

    • more candid and comprehensive assessments of exchange arrangements and exchange rates;

    • expansion of substantive financial sector surveillance to the entire membership, including to offshore financial centers;

    • strengthened coverage of relevant structural and institutional issues;

    • on issues outside the IMF’s core expertise, more effective use of the expertise of appropriate outside institutions, in particular the World Bank;

    • further integration of multilateral, regional, and country surveillance; and

    • deeper coverage of international capital markets.

    The Committee notes that the process of surveillance should cover effective and timely reassessments of economic conditions and policies. In program countries, this may require a fresh perspective and appropriate distance from day-to-day program implementation issues.

    9. The Committee encourages the IMF to press ahead with the range of recent initiatives designed to enhance the effectiveness of surveillance and crisis prevention. These include the Financial Sector Assessment Program (FSAP) and policies on transparency, including encouraging publication of Article IV and other IMF reports. Further work on standards and codes is a crucial item in the forward agenda to strengthen their relevance and contribution to IMF surveillance, and to ensure that countries have adequate access to technical assistance. The Committee encourages eligible countries to consider applying for the Contingent Credit Line (CCL), and looks forward to a review.

    10. The Committee endorses the IMF’s work program to strengthen the existing Prague framework for crisis resolution, in particular to provide members and markets with greater clarity and predictability about the decisions the IMF will take in a crisis. This will involve:

    • improving debt sustainability assessments;

    • clarifying the policy on access to IMF resources for members facing financial crises—with access beyond normal limits requiring more substantial justification, and recognizing that some of these members’ quotas do not adequately reflect their potential financing needs;

    • strengthening the tools for securing private sector in volvement; and

    • examining a more orderly and transparent framework for addressing the exceptional cases in which a sovereign needs to restructure an unsustainable debt, as well as clarifying the conditions under which the IMF would be prepared to lend into arrears.

    The Committee welcomes the consideration of innovative proposals to improve the process of sovereign debt restructuring to help close a gap in the current framework. It encourages the Fund to continue to examine the legal, institutional, and procedural aspects of two approaches, which could be complementary and self-reinforcing: a statutory approach, which would enable a sovereign debtor and a super-majority of its creditors to reach an agreement binding all creditors; and an approach, based on contract, which would incorporate comprehensive restructuring clauses in debt instruments. The Committee looks forward to reviewing progress in this area at its next meeting.

    The IMF’s Role in Low-Income Countries

    11. The Committee folly endorses the Monterrey Consensus, which has reaffirmed that sound economic policies and institutions, together with strong, broad-ranging international support, arc the twin pillars on which to build enduring poverty reduction. It encourages the IMF to work closely with the UN, the World Bank, the regional development banks, and bilateral donors in developing a comprehensive and transparent system to monitor progress toward the Millennium Development Goals.

    12. The Committee welcomes the outcome of the recent reviews of the IMF’s Poverty Reduction and Growth Facility (PRGF) and of the Poverty Reduction Strategy Paper (PRSP) approach. The PRSP process should continue to be nurtured as the suitable framework for fostering the efforts of low-income countries and their international partners to achieve poverty reduction and higher growth. The substantial progress under PRGF-supported programs in implementing the PRSP approach will be further enhanced by better identifying the sources of sustained growth, strengthening public expenditure management, and using poverty and social impact analysis more systematically. The Committee encourages the IMF and the Bank to continue their collaboration on each of these issues and looks forward to reviewing progress at its next meeting. Capacity building will remain a potent vehicle for ensuring ownership and enhancing the implementation of effective poverty reduction strategies, and the Committee looks forward to the review of technical assistance leading to its increased effectiveness. The Committee welcomes, in particular, the African Regional Technical Assistance Centers (AFRITACs), whose establishment will support the New Partnership for Africa’s Development, and looks forward to the timely financing of this initiative.

    13. The recovery of low-income countries that have been affected by the recent economic slowdown and commodity price shocks will continue to require particular attention. The Committee supports the IMF’s continued readiness to respond flexibly and proactively to the financing needs of low-income countries, including by augmenting PRGF financing where necessary. It recognizes that there may be a need to consider mobilizing new PRGF resources if the high demand for PRGF financing continues. While the Committee is encouraged by the progress with the implementation of the HIPC Initiative, it notes that, in a number of cases, debt sustainability remains an issue and calls on the IMF and World Bank to review the situation. It urges eligible countries to step up their reform efforts to reach their decision and completion points, noting, in this context, the flexibility embedded in the HIPC Initiative framework to accommodate the special circumstances of countries emerging from conflict. The Committee notes the application within the current guidelines of the topping-up feature designed to help countries cope with exceptional exogenous shocks. It calls for further efforts to enhance debt management in HIPCs and continued close monitoring of their debt sustainability as they move toward, and beyond, their completion points.

    Streamlining Conditionality and Enhancing Ownership

    14. The Committee welcomes the initial progress made toward enhancing the effectiveness of IMF-supported programs through streamlined and focused conditionality and strong national ownership of economic reforms. It urges further progress, in cooperation with the Bank, and looks forward to a report on these issues, including on the IMF’s consideration of new conditionality guidelines, at its next meeting.

    Combating Money Laundering and the Financing of Terrorism

    15. The Committee underscores that international efforts to counter abuse of the international financial system to finance terrorism and launder the proceeds of illegal activities remain a priority. It is encouraged by the response by many countries to its call last November for all countries to ratify and implement fully the UN instruments to counter terrorism financing, to freeze terrorist assets, and to establish financial intelligence units and ensure the sharing of information. The Committee urges countries that have not as yet done so to fully implement and comply with these instruments. It also welcomes the substantial progress made by the IMF, in close collaboration with the World Bank, in implementing all elements of its action plan to intensify the work on anti-money laundering and combating the financing of terrorism (AML/CFT). The Committee notes in particular the good start made in assessing gaps in national AML/CFT regimes, and fully supports the provision of technical assistance to help countries identify and address such gaps.

    16. While reiterating the responsibility of national authorities for combating money laundering and the financing of terrorism, the Committee stresses that success will critically depend on continued vigilance and timely action at the global level. It calls on the IMF to make further progress on all elements of its work program, consistent with its mandate and expertise. In particular, efforts should now be focused on completing the comprehensive AML/CFT methodology, based on a global standard covering the Financial Action Task Force (FATF) recommendations, and the development of assessment procedures compatible with the uniform, voluntary, and cooperative nature of the ROSC1 process. Enhancing the delivery of technical assistance on AML/CFT will also be crucial. The Committee urges the Fund, in cooperating with other international organizations and donor countries, to identify and respond to needs for technical assistance. It looks forward to receiving a full report on progress in this area at its next meeting. The Committee calls on members to share information on their own actions in this field.

    Other Issues

    17. The Committee notes that the Twelfth General Review of IMF Quotas has commenced. Quotas should reflect developments in the international economy. The Committee recommends an early implementation of the Fourth Amendment.

    18. The Committee welcomes the progress report on the Independent Evaluation Office, and looks forward to receiving regular updates on its activities.

    Next Meeting

    19. The next meeting of the IMFC will be held in Washington, D.C. on September 28, 2002.

    Annex: International Monetary and Financial Committee Attendance April 20, 2002

    Chairman

    Gordon Brown

    Managing Director

    Horst Köhler

    Members or Alternates

    Ibrahim A. Al-Assaf, Minister of Finance and National Economy, Saudi Arabia

    Sir Edward George, Governor, Bank of England (Alternate for Gordon Brown, Chancellor of the Exchequer, United Kingdom)

    Ian Campbell, Parliamentary Secretary to the Treasurer, Australia (Alternate for Peter Costello, Treasurer, Australia)

    Dai Xianglong, Governor, People’s Bank of China)

    Rodrigo de Rato y Figaredo, Second Vice President and Minister of Economy, Spain

    Hans Eichel, Federal Minister of Finance, Germany

    Nicolás Eyzaguirre, Minister of Finance, Chile

    Laurent Fabius, Minister of Economy, Finance and Industry, France

    Geir H. Haarde, Minister of Finance, Iceland

    Sultan Bin Nasser Al-Suwaidi, Governor, United Arab Emirates Central Bank (Alternate for Mohammed K. Khirbash, Minister of State for Finance and Industry, United Arab Emirates)

    Aleksei Kudrin, Deputy Chairman of the Government and Minister of Finance, Russian Federation

    Mohammed Laksaci, Governor, Banque d’Algérie

    Pedro Sampaio Malan, Minister of Finance, Brazil

    Paul Martin, Minister of Finance, Canada

    Ms. Linah K. Mohohlo, Governor, Bank of Botswana

    Paul H. O’Neill, Secretary of the Treasury, United States

    Didier Reynders, Minister of Finance, Belgium

    Agus Haryanto, Secretary General, Ministry of Finance (Alternate for Syahril Sabirin, Governor, Bank of Indonesia)

    Masajuro Shiokawa, Minister of Finance, Japan

    Yashwant Sinha, Minister of Finance, India

    Paul Toungui, Minister of State, Minister of Finance, Economy, Budget and Privatization, Gabon

    Giulio Tremonti, Minister of the Economy and Finance, Italy

    Kaspar Villiger, President of the Swiss Confederation and Minister of Finance, Switzerland

    A.H.E.M. Wellink, President, De Nederlandsche Bank N.V. (Alternate for Gerrit Zalm, Minister of Finance, Netherlands)

    Observers

    Yilmaz Akyuz, Director, Division on Globalization and Development Strategies, United Nations Conference on Trade and Development (UNCTAD)

    Andrew D. Crockett, Chairman, Financial Stability Forum (FSF)

    Willem F. Duisenberg, President, European Central Bank (ECB)

    André Icard, Deputy General Manager, Bank for International Settlements (BIS)

    Donald J. Johnston, Secretary-General, Organization for Economic Cooperation and Development (OECD)

    Ian Kinniburgh, Director, Development Policy Analysis Division, Department of Economic and Social Affairs, United Nations (UN)

    Eddy Lee, Director, International Policy Group, International Labor Organization (ILO)

    Trevor A. Manuel, Chairman, Joint Development Committee

    Ms. Karen McCusker, Counsellor, World Trade Organization (WTO)

    Pedro Solbes Mira, Commissioner for Economic and Monetary Affairs, European Commission

    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

    Sixty-Fourth Meeting, Ottawa, Canada, November 18, 2001

    1. The 64th meeting of the Development Committee was held in Ottawa, Canada, on November 18, 2001 under the chairmanship of Mr. Yashwant Sinha, Minister of Finance of India. Ministers expressed their great appreciation to the Canadian Government for facilitating the holding of this meeting under unusual circumstances.

    2. Impact of Recent Events in Low- and Middle-Income Countries: Response of the World Bank Group. Ministers reviewed the impact of the September 11 terrorist attacks and their aftermath on developing countries. They recognized that poverty in many developing countries was likely to worsen as these events have deepened the preexisting global economic slowdown, which had already led to weaker exports and commodity prices, and have other more specific impacts: e.g., increased refugee movements within countries and across borders; reduced private investment flows due to increased risk aversion in financial markets; reduced tourism revenues; and increased trade transaction costs. Ministers called for further enhancing the collaboration among the Bank Group, the IMF, the regional development banks, and UN agencies, in their actions to help member countries address these additional challenges and to strengthen social safety nets. Ministers underlined the importance of renewed growth in industrialized countries to the improvement of prospects for poverty reduction in developing countries.

    3. Ministers reviewed the response of the World Bank Group. They stressed the importance of the Group using its financial capacity and the flexibility in its available instruments to respond effectively and promptly to current circumstances and emerging needs. They emphasized that financial support should continue to be linked to strong country performance and reform programs in support of poverty reduction. Ministers agreed that, from a financial standpoint, the magnitude of likely incremental demands on the Bank Group currently appears manageable, but they urged that the Board and Management keep under close review the Bank Group’s capacity to respond in more challenging circumstances. Ministers agreed that IDA had a particularly critical role in helping the poorest countries manage the adverse impact of recent events on their economies and people, and emphasized that timely agreement on a substantial IDA 13 replenishment was essential. They encouraged all member governments to complete their subscription to MIGA’s general capital increase.

    4. Ministers considered improved governance to be an important element in generating the conditions for investment, private-sector-led growth, improved productivity, job creation, and trade, and, as a result, for poverty reduction. Thus, they highlighted the need for the Bank and the Fund, in accordance with their respective mandates and comparative advantage, to pay more attention to governance-related issues, including public expenditure management, diagnostic (e.g., through the Financial Sector Assessment Program) and capacity-building work to help countries identity and address abuses such as money laundering and terrorist financing. In light of this, they also stressed the importance of working to strengthen further country procurement and financial management systems. They also recognized the need to allocate increased resources to address capacity-building concerns in many countries to help them meet new internationally agreed commitments and standards.

    5. United Nations Financing for Development Conference. Ministers expressed appreciation to United Nations Secretary-General Kofi Annan for the opportunity to discuss with him, at the joint IMFC/Development Committee dinner on November 17, issues related to the March 2002 International Conference on Financing for Development (FfD). They expressed strong interest in contributing to the Conference’s success, which they saw as an important milestone in the effort to halve the incidence of poverty by 2015 and to reach the other Millennium Development Goals (MDGs) (endorsed by Heads of State and Government in the UN General Assembly on September 8, 2000), and other agreed targets. They urged governments to involve all relevant ministries in preparing for the Conference to enhance coherence of policies with impact on development. (The Committee’s views on Conference issues are attached.)

    6. Poverty Reduction Strategies. Ministers welcomed the significant progress made in implementing the PRSP approach, noting that 38 countries had completed interim PRSPs and eight countries their first full PRSPs. They appreciated the extent to which poverty reduction strategies build on existing national strategies and processes, with a focus on broadening participation and sharpening poverty diagnosis and monitoring, as well as on prioritizing and costing policies and programs for poverty reduction. Ministers welcomed the Bank and Fund’s efforts to work with countries to analyze the poverty and social impact of programs and to help them to build their own capacity. Ministers noted that the joint Bank/Fund staff review of the PRSP approach was under way. They called for a broad-based inclusive process that would draw upon the experience of other stakeholders and development partners, and looked forward to considering the report at their next meeting.

    7. HIPC. Ministers welcome the continued progress made in implementing the HIPC Initiative, noting that twenty-four countries have now reached their decision points under the enhanced HIPC framework, qualifying for debt service relief amounting to some S36 billion; three countries have now reached their completion points and arc receiving their full relief under the enhanced Initiative. There has also been a significant reduction in debt stock and debt service in these countries, and the commitment of qualifying HIPCs to increased poverty reduction spending has been encouraging. Ministers urged the Bank and the Fund to work with remaining eligible countries to bring them to their decision and completion points, as quickly as circumstances permit.

    8. Ministers reiterated their commitment to the enhanced HIPC Initiative as a means for achieving a lasting exit from unsustainable debt for eligible countries. They stressed that long-term debt sustainability will depend upon the maintenance of sound economic policies, strengthened debt management, and the provision of appropriate financing. With regard to recent events, they noted that the enhanced HIPC Initiative framework provides for the consideration of additional assistance at the completion point if there has been a fundamental change in a country’s economic circumstances due to exceptional exogenous shocks. The Committee recognized the need to take into account worsening global growth prospects and declines in terms of trade, when updating HIPC Initiative debt sustainability analysis at completion point. Ministers noted that the relevant operational procedures for exercising such an option were recently approved by the Bank and IMF Boards. Ministers also reiterated the importance of fully financing the enhanced HIPC Initiative and urged bilateral donors to fulfill this commitment. They welcomed the agreement among donors to continue their regular consultations on the financial requirements of HIPC. They also urged those creditors that had yet to confirm their participation in the Initiative to do so as soon as possible.

    9. Education for All (EFA). Ministers consider education as one of the most powerful instruments for reducing poverty and laying the basis for sustained growth. They welcomed the World Bank’s background paper on this subject and noted the efforts of the Bank and its partners to help ensure that quality primary education is available to all children worldwide as a necessary first step towards strengthening overall education systems. Ministers looked forward to full consideration of this subject at their next meeting, based on an action plan that will address, inter alia, the policy and resource requirements needed to ensure that EFA goals are reached by 2015 through the development of sustainable and high-quality EFA programs at the country level.

    10. The Committee expressed its great appreciation to Mr. Yashwant Sinha for his valuable leadership and guidance to the Committee as its Chairman during the last fifteen months, and welcomed his successor, Mr. Trevor Manuel, Finance Minister of South Africa. The Ministers also expressed their warm thanks to Mr. Alexander Shakow upon his retirement as the Committee’s Executive Secretary, and welcomed his successor, Mr. Thomas A. Bernes.

    11. The Committee’s next meeting is scheduled for April 22, 2002 in Washington, D.C.

    Attachment to the Development Committee Communique

    (64th Meeting—Ottawa, Canada, November 18, 2001)

    Financing for Development Conference (FfD)

    1. Building Development Partnerships on a Foundation of Sound Policies and Good Governance. Ministers reaffirmed the critical importance of sound national policies and good governance as prerequisites for poverty reduction and sustained growth. They noted that the Millennium Development Goals (endorsed by Heads of State and Government in the UN General Assembly on September 8, 2000) and other internationally agreed development targets can help guide country- owned short- and medium-term national priorities on which external partnerships of support could he based. They noted that the Comprehensive Development Framework principles and Poverty Reduction Strategy Papers provide a vehicle for structuring partnerships with donors; they also provide a framework for the interventions of donors and other partners—such as through country assistance strategies and UN Development Assistance Frameworks—to ensure that external support is well integrated into national programs. An important contribution by the international community would be the strengthened provision of technical assistance to help developing countries—particularly low-income countries and those emerging from conflict—improve their capacity for sound economic management and efficient use of resources.

    2. Strengthening the Conditions for Investment and Growth. Ministers stressed that, in addition to a stable and conducive international framework, a sound national policy environment, essential infrastructure, and good governance are needed to allow the private sector to invest efficiently and create employment. They recognized that in many countries major reforms of the policy and regulatory framework will be required to encourage domestic investment and job creation. Such reforms can also help to promote foreign investment and contribute to productivity growth and the additional resources needed for sustainable development. Ministers underlined the need for coherent and comprehensive support to private sector development. They emphasized the important role that IFC, MIGA, and other agencies working directly with the private sector can play in this regard.

    3. Promoting Integration into the International Trading System. Trade is an important source of growth and poverty reduction, and developing countries need to be able to take greater advantage of the opportunities it offers. In this connection, the Committee warmly welcomed the decision reached by the WTO last week in Doha to launch a new round of trade negotiations. They endorsed the WTO Ministerial Declaration’s aim to place the needs and interests of developing countries at the heart of their Work Programme. Ministers emphasized the importance of countries integrating trade into their development strategies and improving their investment regulations, standards and technical regulations, removing obstacles to efficient transport of goods and materials, and strengthening telecommunications and business services. Ministers noted that greater access to markets would provide a major boost to development. They also stressed the priority they attach to helping developing countries strengthen their capacity to respond to market opportunities and to implement trade-related agreements.

    4. Importance of Enhancing ODA Flows. Ministers recognized that for most low-income countries the availability of Official Development Assistance (ODA) remains an essential supplement to domestic resource mobilization and foreign investment if growth and poverty reduction goals are to be achieved. Ministers agreed that special emphasis should be placed on ensuring that adequate resources are directed to countries implementing sound policies and exercising good governance. They recognized that a substantial increase in current ODA levels would be required if the opportunities emerging from policy improvements in low-income countries are to be realized and the MDGs to be met. In this context, a number of Ministers referred to the need to reach the 0.7 percent ODA/GNP target. It would also require that, among countries with sound policies and governance, ODA be allocated with greater emphasis on countries with the greatest need (in part based on the difficulties they face in the achievement of their MDGs) and with capacity to make the most effective and efficient use of the resources. Ministers also emphasized the importance of appropriate concessionality in ODA flows.

    5. Harmonization—Reducing the Transaction Costs of Aid. Ministers noted that major improvements in development effectiveness and efficiency, as well as reduced administrative burdens and costs on recipient governments, would be gained from eliminating rigidities in aid delivery mechanisms. In this regard, they highlighted the critical importance of harmonization of operational policies and procedures by the Bank, other multilateral agencies, and bilateral aid donors. Ministers welcomed the World Bank’s report on progress achieved to date in this area and commended the action programs set forth in this report. The Committee urged that the Bank and its partners continue vigorously to pursue these programs, and that the FfD Conference be encouraged to recognize the importance of, and provide broad-based support for, further progress in such harmonization and its implementation at the country level.

    6. Debt and Other Instruments. Ministers underscored the need to deploy a flexible mix of instruments so as to respond appropriately to the needs of developing countries in a manner consistent with their economic circumstances and public expenditure management capacities. While urging that the HIPC Initiative continue to be implemented expeditiously to achieve debt sustainability for the poorest countries, they noted that debt relief is only one of many possible actions and instruments to support country poverty reduction strategies.

    7. Global Public Goods. Ministers noted that FfD provides an opportunity for enhancing a common approach to global public goods and accelerating progress on the coordination of priority global public goods areas, such as those addressing HIV/AIDS and other major infectious diseases. They agreed on the importance of focusing on specific priority activities, while consolidating initiatives to achieve efficient use of resources. They stressed the need to ensure that activities are anchored in national as well as global strategies. In some cases this would require ensuring additionality in funding, while in others flexibility and reinforcement of existing mechanisms would be needed to help countries own and implement global public-goods-related national programs.

    8. Making the Most of Existing Institutions. Ministers noted that FfD offers an opportunity to establish a broad international consensus—among governments, institutions, the private sector, and civil society—for action on the basis of common objectives and for the identification of specific gaps that may require enhanced international action. This would provide a platform for individual institutions to use their respective mandates, governance structures, and strengths to undertake high-priority initiatives as well as to promote more focused and coherent action among bilateral and multilateral agencies. Ministers strongly believe in making the most of existing institutions.

    9. Integration into the Global System. Ministers agreed on the importance of promoting the greater integration of developing countries into the global financial system. They noted that progress is being achieved through the efforts of, inter alia, the international financial institutions, including in areas of crisis prevention, standards and codes, legal and regulatory frameworks, transparency, financial sector strengthening, combating terrorist financing and other abuses, debt management, and private sector participation in the resolution of financial crises. Ministers also agreed that it is important to find pragmatic and innovative ways to continue to enhance the effective participation of developing countries in international dialogues and decision-making processes.

    10. Staying Engaged. Ministers noted that the FfD Conference should be seen as part of ongoing efforts to intensify concerted international action for development and poverty reduction, to expand growth opportunities for developing countries, and to improve the effectiveness and responsiveness of development cooperation. They urged that the follow-up to the Conference be seen in this context. They believe that the dialogue among the ECOSOC and the Bretton Woods Institutions offers unrealized potential, as does further progress within the framework of the coordinating committee of the heads of United Nations agencies (ACC). Greater cooperation among existing institutions is needed, based on a clear understanding and respect for their respective responsibilities and governance structures. For example, a combined effort by the Bretton Woods institutions and the United Nations, along with the OECD, to check periodically on progress towards the MDGs, would provide an efficient and practical approach for improved cooperation.

    11. Ministers requested their Chairman to convey these conclusions to the President of the United Nations General Assembly.

    Sixty-Fifth Meeting, Washington, D.C., April 21, 2002

    1. We met today to discuss future challenges for development and an action plan for universal primary education.

    2. We welcomed the very important progress achieved in the Monterrey Consensus laying out a new partnership compact between developed and developing countries, based on mutual responsibility and accountability, to achieve measurable improvements in sustainable growth and poverty reduction. We recognized the efforts of the World Bank and the IMF, working together with the UN, in contributing to this result. We look forward to their continuing collaboration and to strengthening this new partnership as we work towards a successful World Summit on Sustainable Development.

    3. This new partnership for development recognizes that country-owned and driven development strategies embodying sound policies and good governance have to be the starting point. Such strategics need to be supported by increased and more effective development assistance and by greater efforts to integrate developing countries into the global economy. We are committed to the implementation of these strategies and partnerships, such as NEPAD, as part of the scaling up of activities that is necessary for implementing the Monterrey Consensus and to meet the Millennium Development Goals1; we will regularly review progress at future meetings. We welcomed the pledges made at Monterrey by a number of donors to increase their official development assistance.

    4. The CDF/PRSP approach is increasingly providing a common foundation for implementing the new partnership at the country level. While recognizing that scope for improvement exists, we shared the positive assessment of implementation to date, particularly in enhancing ownership. We look forward to continued progress in extending the participatory processes for the elaboration and monitoring of PRSPs, implementing pro-poor growth policies, enhancing collaboration to strengthen public expenditure management and to improve poverty and social impact analysis; and, among multilateral and bilateral development agencies, in better aligning their programs with country strategies.

    5. We reaffirmed our strong support for the current work program to harmonize operational policies and procedures of bilateral and multilateral agencies so as to enhance aid effectiveness and efficiency. We committed to further action in streamlining such procedures and requirements over the period leading to the high-level forum scheduled for early 2003.

    6. Evidence demonstrates that effective assistance in support of good policies and institutions can bring important development benefits. More attention should be given to the building of institutions and capacities as well as the timing and sequencing of the reform process. We underlined the importance of an enhanced focus on results that can be used by countries in designing and implementing their strategies, and by donors and development agencies in scaling up and allocating their support. We asked the World Bank to report to us at our next meeting on its efforts in this respect. We would also welcome a report on efforts under way to engage more effectively with weak-performing low-income countries.

    7. Economic growth requires a strong and vibrant private sector and an enabling climate that encourages investment, entrepreneurship, and job creation. However, it is not enough to strengthen the private sector in developing countries without further progress in integrating them into the global trading system. We thus strongly endorsed the call at Monterrey for coherence between development assistance and trade policies. We urged an acceleration of efforts to lower trade barriers (including trade-distorting subsidies) and we called upon the World Bank and others to provide more support in helping developing countries address policy, institutional, social, and infrastructure impediments limiting their ability to share in the benefits of trade.

    8. Education is one of the most powerful instruments for reducing poverty. We strongly endorsed the action plan presented by the Bank as a basis for reaching international consensus to help make primary education a reality for all children by 2015. We appreciated in particular that the action plan is consistent with the new partnership for development based on mutual responsibility and accountability. We called on the Bank to continue to work in partnership with UNESCO and other relevant agencies. We encourage all countries to place education at the heart of their poverty reduction strategies, reform their education policies to achieve Universal Primary Completion, and monitor progress towards the 2015 education goals in line with an enhanced focus on results. We committed ourselves to work together in a much more coherent way to help bring this about and to provide the necessary additional domestic and external resources. The Bank and all other stakeholders should strengthen their efforts to achieve the MDG on gender equality in primary and secondary education by 2005. We will review progress at our next meeting.

    9. We reviewed and welcomed the steady progress that has been made on the HIPC Initiative. We remain committed to its vigorous implementation and full financing. Our objective remains an early and enduring exit from unsustainable debt for HIPC countries. We noted that within existing guidelines, additional relief can be provided at the completion point, on a case-by-case basis. Success will require a sustained commitment by HIPC countries to improvements in policies and debt management and by the donor community to continue to provide adequate and appropriate concessional financing. We will discuss the issue of debt sustainability and, consequently, financing and policy implications, at the next meeting.

    10. Finally, we reviewed a progress report on anti-money laundering and combating terrorist financing. Recognizing the serious risks posed by these activities, we welcomed the action plans agreed by the World Bank and the IMF and the enhanced collaboration with other institutions. We encouraged the World Bank and the IMF to continue to integrate these issues into their diagnostic work in line with their respective mandates, and urged that capacity-building assistance be increased so that countries could better address these issues.

    11. The Committee’s next meeting is scheduled for September in Washington.

    Appendix VII: Executive Directors and Voting Power on April 30, 2002
    Director AlternateCasting Votes ofVotes
    by Country
    Total
    Votes1
    Percent of
    IMF Total2
    Appointed
    VacantUnited States371,743371,74317.16
    Meg Lundsager
    Ken YagiJapan133,378133,3786.16
    Haruyuki Toyama
    Karlheinz BischofbergerGermany130,332130,3326.02
    Ruediger von Kleist
    Pierre DuquesneFrance107,635107,6354.97
    Sébastien Boitreaud
    Tom ScholarUnited Kingdom107,635107,6354.97
    Martin A. Brooke
    Elected
    Willy KiekensAustria18,973
    (Belgium)Belarus4,114
    Johann PraderBelgium46,302
    (Austria)Czech Republic8,443
    Hungary10,634
    Kazakhstan3.907
    Luxembourg3,041
    Slovak Republic3,825
    Slovenia2,567
    Turkey9,890111,6965.16
    J. de Beaufort WijnholdsArmenia1,170
    (Netherlands)Bosnia and Herzegovina1,941
    Yuriy G. YakushaBulgaria6,652
    (Ukraine)Croatia3.901
    Cyprus1,646
    Georgia1,753
    Israel9,532
    Macedonia, former Yugoslav Republic of939
    Moldova1,482
    Netherlands51,874
    Romania10,552
    Ukraine13,970105.4124.87
    Fernando VarelaCosta Rica1,891
    (Spain)El Salvador1,963
    Heruán OynrzábalGuatemala2,352
    (Republica Bolivariana de Venezuela)Honduras1,545
    Mexico26,108
    Nicaragua1,550
    Spain30,739
    Venezuela, República Bolivariana de26,84192,9894.29
    Pier Carlo PadoanAlbania737
    (Italy)Greece8,480
    Harilaos VittasItaly70,805
    (Greece)Malta1,270
    Portugal8,924
    San Marino42090,6364.18
    Ian E. BennettAntigua and Barbuda385
    (Canada)Bahamas, The1,553
    Nioclás A. O’MurchúBarbados925
    (Ireland)Belize438
    Canada63,942
    Dominica332
    Grenada367
    Ireland8,634
    Jamaica2,985
    St. Kitts and Nevis339
    St. Lucia403
    St. Vincent and the Grenadines33380,6363.72
    Ólafur ĺsleifssonDenmark16,678
    (Iceland)Estonia902
    Benny AndersenFinland12,888
    (Denmark)Iceland1,426
    Latvia1,518
    Lithuania1,692
    Norway16,967
    Sweden24,20576,2763.52
    Michael J. CallaghanAustralia32,614
    (Australia)Kiribati306
    Diwa GuinigundoKorea16,586
    (Philippines)Marshall Islands285
    Micronesia, Federated States of301
    Mongolia761
    New Zealand9,196
    Palau281
    Papua New Guinea1,566
    Philippines9,049
    Samoa366
    Seychelles338
    Solomon Islands354
    Vanuatu42072,4233.34
    Sulaiman M. Al-TurkiSaudi Arabia70,10570,1053.24
    (Saudi Arabia)
    Ahmed Saleh Alosaimi
    (Saudi Arabia)
    Cyrus D.R. RustomjeeAngola3,113
    (South Africa)Botswana880
    Ismaila UsmanBurundi1,020
    (Nigeria)Eritrea409
    Ethiopia1,587
    Gambia, The561
    Kenya2,964
    Lesotho599
    Liberia963
    Malawi944
    Mozambique1,386
    Namibia1,615
    Nigeria17,782
    Sierra Leone1,287
    South Africa18,935
    Sudan1,947
    Swaziland757
    Tanzania2,239
    Uganda2,055
    Zambia5,141
    Zimbabwe3,78469,9683.23
    Dono Iskandar DjojosubrotoBrunei Darussalam1,750
    (Indonesia)Cambodia1,125
    Kwok Mun LowFiji953
    (Singapore)Indonesia21,043
    Lao People’s Democratic Republic779
    Malaysia15,116
    Myanmar2,834
    Nepal963
    Singapore8,875
    Thailand11,069
    Tonga319
    Vietnam3,54168,3673.16
    A. Shakour ShaalanBahrain1,600
    (Egypt)Egypt9,687
    Mohamad B. ChatahIraq5,290
    (Lebanon)Jordan1,955
    Kuwait14,061
    Lebanon2,280
    Libya11,487
    Maldives332
    Oman2,190
    Qatar2,888
    Syrian Arab Republic3,186
    United Arab Emirates6,367
    Yemen2,68564,0082.95
    WEI BenhuaChina63,94263,9422.95
    (China)
    WANG Xiaoyi
    (China)
    Aleksei V. MozhinRussia59,70459,7042.76
    (Russia)
    Andrei Lushin
    (Russia)
    Roberto F. CippàAzerbaijan1,859
    (Switzerland)Kyrgyz Republic1,138
    Wicslaw SzczukaPoland13,940
    (Poland)Switzerland34,835
    Tajikistan1,120
    Turkmenistan1,002
    Uzbekistan3,00656,9002.63
    Murilo PortugalBrazil30,611
    (Brazil)Colombia7,990
    Roberto JunguitoDominican Republic2,439
    (Colombia)Ecuador3,273
    Guyana1,159
    Haiti857
    Panama2,316
    Suriname1,171
    Trinidad and Tobago3,60653,4222.47
    Vijay L. KelkarBangladesh5,583
    (India)Bhutan313
    R.A. JayatissaIndia41,832
    (Sri Lanka)Sri Lanka4,38452,1122.41
    Abbas MirakhorAlgeria12,797
    (Islamic Republic of Iran)Ghana3,940
    Mohammed DairiIran, Islamic Republic of15,222
    (Morocco)Morocco6,132
    Pakistan10,587
    Tunisia3,11551,7932.39
    A. Guillermo ZoccaliArgentina21,421
    (Argentina)Bolivia1,965
    Guillermo Le FortChile8,811
    (Chile)Paraguay1,249
    Peru6,634
    Uruguay3,31543,3952.00
    Alexandre Barro ChambrierBenin869
    (Gabon)Burkina Faso852
    Damian Ondo MañeCameroon2,107
    (Equatorial Guinea)Cape Verde346
    Central African Republic807
    Chad810
    Comoros339
    Congo, Republic of1,096
    Cote d’lvoire3,502
    Djibouti409
    Equatorial Guinea576
    Gabon1,793
    Guinea1,321
    Guinea-Bissau392
    Madagascar1,472
    Mali1,183
    Mauritania894
    Mauritius1,266
    Niger908
    Rwanda1,051
    Säo Tomé and Príncipe324
    Senegal1,868
    Togo98425,1691.16
    2,159,6763,499.715

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

    Percentages of total votes 2,166,749 in the General Department and the Special Drawing Rights Department.

    This total does not include the votes of the Islamic State of Afghanistan, Somalia, and the Federal Republic of Yugoslavia, which did not participate in the 2000 Regular Election of Executive Directors. The total votes of these members is 7,073—0.33 percent of those in the General Department and Special Drawing Rights Department.

    This total does not include the votes of the Democratic Republic of the Congo, which was suspended effective June 2, 1994, 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.

    The IMF also enhanced its media relations work in FY2002:

    • Regular press briefings by the Director of the External Relations Department were held roughly every two weeks, with subsequent posting of transcripts and video on the website. Press conferences with management and senior staff, held on such occasions as the Spring and Annual Meetings, and on release of major reports such as the World Economic Outlook and the Global Financial Stability Report, were also made widely available to the public as transcripts and videos posted on the website. In addition, mission chiefs and resident representatives increased their contact with local press and media on country-related issues. To improve accessibility, new web pages—for IMF resident representatives in Angola, Bulgaria, China, Estonia, Latvia, Pakistan, and Vietnam—were established.

    • Press Releases on decisions taken by the Executive Board, and News Briefs expressing the views of management and senior staff on topical matters, were posted on the website and also distributed directly by fax to journalists and others.

    • Public information notices (PINs) on both country and pol icy issues were posted on the website. Country PINs convey summaries of the Executive Board’s review of economic surveillance or Article IV consultations with IMF member countries. Publication is authorized by the countries themselves. Policy PINs summarize discussions of IMF policies. Decisions to publish policy PINs are based on whether discussions have either reached completion or are at a point where informing the public is deemed useful.

    • Through op-eds and letters to the editor, the IMF sought to state its case directly to the public and correct misperceptions about its role. Op-eds addressed such broad policy issues as “Globalization and the Poor Countries,” “Should Countries Like Argentina Be Able to Declare Themselves Bankrupt?” and “Toward Faster Poverty Reduction.” Senior staff and resident representatives responded to specific criticism leveled against the IMF in letters to the editor, which appeared in newspapers and other publications around the world.

    To enhance awareness and understanding of its policies and operations, the IMF expanded its public outreach activities in FY2002. Participants included legislators and parliamentarians in a number of countries, the private sector (especially financial market participants), and civil society at large, including nongovernmental organizations, labor unions, religious groups, academia, and the general public. In the period leading up to the Annual Meetings—slated to take place on September 29–30, 2001—the IMF made a special effort to reach out to civil society and other critics to address their concerns. The terrorist attacks in the United States on September 11, 2001, however, led to a postponement of the Annual Meetings and dramatically changed the parameters of the debate on globalization and the role of the IMF. In the end, street protests against the IMF and the World Bank were relatively muted during the scaled-down meetings of the International Monetary and Financial Committee and the Development Committee held in Ottawa in November 2001, and the Spring Meetings held in Washington, D.C., in April 2002.

    The IMF continued to seek a constructive dialogue with civil society on globalization and other important issues throughout FY2002.

    • IMF start had numerous contacts and participated in about 60 seminars and meetings with civil society groups during FY2002, including nongovernmental, labor, and religious organizations. The Managing Director participated in two “town hall” meetings with NGO representatives—at the Ministry of Finance in Berlin in September 2001, and during the international Poverty Reduction Strategy Paper (PRSP) review conference held in Washington, D.C., in January 2002.

    • During FY2002, the Managing Director maintained regular contact with the private financial sector, including through the Capital Markets Consultative Group (CMCG). The CMCG met in Hong Kong SAR (May 2001), in New York (October 2001), and in Frankfurt (March 2002). The meetings focused generally on the world economic outlook, vulnerabilities in emerging and other markets, and cooperation between the official and private sectors on issues such as crisis prevention and resolution.

    • Management and staff continued to meet with legislators in various countries on topics ranging from IMF reform to specific country issues. IMF staff also organized and/or participated in a number of special seminars with parliamentarians from many countries. In April 2002, for example, the IMF, together with the National Assembly of Kenya, organized a workshop on managing an economy. The workshop provided an opportunity for senior IMF staff and parliamentarians to discuss various topics of common interest, including the importance of macroeconomic stability and poverty reduction, good governance, financial sector reforms, and the social dimension of reforms.

    • The IMF organized, and beginning in FY2002 broadcast live over the Internet, a series of Economic Forums on topical issues ranging from “The Euro—Ready or Not” to “New Ideas for Reducing Poverty” and “Globalization—North-South Linkages.” Economic Forums are always open to the public, free of charge.

    • IMF start became more active in engaging students and the academic and policy research community in the Washington, D.C., area. IMF staff participated in discussions and gave presentations on topics related to the work of the IMF, including globalization and trade. Two new multilingual educational segments, “IMF in Action,” intended to help students better understand what the IMF does, and “Monetary Mania,” a quiz show about money, economics, and monetary policy, were developed and added to the website.

    • The IMF Center, which opened in 2001 at IMF headquarters, hosted 12,000 visitors and held briefings on financial and monetary issues for a growing number of visiting groups in FY2002. Directly accessible to the general public, the center featured a new exhibit, “The Artistry of African Currency,” complementing its permanent exhibit, “Money Matters,” on the history of global cooperation in financial and monetary policy.

    • The IMF’s community relations program continued to assist less fortunate members of the Washington area community in FY2002. IMF staff carried out extensive volunteer work in the Washington metro region and, in some cases, overseas. Through the IMF Civic Program, over $650,000 was donated to charities working to reduce poverty in the Washington, D.C., metropolitan region and in low -income countries, and surplus goods—such as used computers and furniture—were donated to charitable and educational organizations.

    Changes in Membership of the Executive Board

    Changes in membership of the Executive Board between May 1, 2001 and April 30, 2002 were as follows:

    Bernd Esdar (Germany) relinquished his duties as Executive Director for Germany, effective May 20, 2001.

    Wolf-Dieter Donecker (Germany), formerly Alternate Executive Director to Bernd Esdar (Germany), was appointed Executive Director by Germany, effective May 21, 2001.

    Ruediger von Kleist (Germany) was appointed Alternate Executive Director to Wolf-Dieter Donecker (Germany), effective May 21, 2001.

    Riccardo Faini (Italy) relinquished his duties as Executive Director for Albania, Greece, Italy, Malta, Portugal, and San Marino, effective June 13, 2001.

    Pier Carlo Padoan (Italy) was elected Executive Director by Albania, Greece, Italy, Malta, Portugal, and San Marino, effective June 14, 2001.

    Yukio Yoshimura (Japan) relinquished his duties as Executive Director for Japan, effective July 4, 2001.

    Ken Yagi (Japan) was appointed Executive Director by Japan, effective July 5, 2001.

    Jean-Claude Milleron (France) relinquished his duties as Executive Director for France, effective July 31, 2001.

    Randal Quarles (United States) was appointed Executive Director by the United States, effective August 7, 2001

    Wolf-Dieter Donecker (Germany) relinquished his duties as Executive Director for Germany, effective August 14, 2001.

    Karlheinz Bischofberger (Germany) was appointed Executive Director by Germany, effective August 15, 2001.

    Pierre Duquesne (France) was appointed Executive Director by France, effective August 20, 2001.

    Abdelrazaq Faris Al-Faris (United Arab Emirates) relinquished his duties as Alternate Executive Director to A. Shakour Shaalan (Egypt), effective August 31, 2001.

    Mohamad B. Chatah (Lebanon) was appointed Alternate Executive Director to A. Shakour Shaalan (Egypt), effective September 14, 2001.

    Thomas A. Bernes (Canada) relinquished his duties as Executive Director for Antigua and Barbuda, The Bahamas, Barbados, Belize, Canada, Dominica, Grenada, Ireland, Jamaica, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines, effective October 7, 2001.

    Ian E. Bennett (Canada) was elected Executive Director by Antigua and Barbuda, The Bahamas, Barbados, Belize, Canada, Dominica, Grenada, Ireland, Jamaica, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines, effective October 8, 2001.

    Peter Charleton (Ireland) relinquished his duties as Alternate Executive Director to Ian E. Bennett (Canada), effective November 18, 2001.

    Nioclás O’Murchú (Ireland) was appointed Alternate Executive Director to Ian E. Bennett (Canada), effective November 19,2001.

    Stephen Pickford (United Kingdom) relinquished his duties as Executive Director for the United Kingdom, effective December 16, 2001.

    Thomas W. Scholar (United Kingdom) was appointed Executive Director by the United Kingdom, effective December 17, 2001.

    Åke Törnqvist (Sweden) relinquished his duties as Alternate Executive Director to Olli-Pekka Lehmussaari (Finland), effective December 19, 2001.

    Benny Andersen (Denmark) was appointed Alternate Executive Director to Olli-Pekka Lehmussaari (Finland), effective December 20, 2001.

    Olli-Pekka Lehmussaari (Finland) relinquished his duties as Executive Director for Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden, effective December 31, 2001.

    Ólafur Ísleifsson (Iceland) was elected Executive Director by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden, effective January 1, 2002.

    Stephen P. Collins (United Kingdom) relinquished his duties as Alternate Executive Director to Thomas W. Scholar (United Kingdom), effective January 15, 2002.

    Martin A. Brooke (United Kingdom) was appointed Alternate Executive Director to Thomas W. Scholar (United Kingdom), effective January 16, 2002.

    Gilles Bauche (France) relinquished his duties as Alternate Executive Director to Pierre Duquesne (France), effective January 31, 2002.

    Sebastien Boitreaud (France) was appointed Alternate Executive Director to Pierre Duquesne (France), effective February 1, 2002.

    Fernando Varela (Spain), formerly Alternate Executive Director to Hernàn Oyarzàbal (República Bolivariara de Venezuela), was elected Executive Director by Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Spain, and República Bolivariara de Venezuela, effective February 9, 2002.

    Hernàn Oyarzabal (República Bolivariara de Venezuela), formerly Executive Director, was appointed Alternate Executive Director to Fernando Varela (Spain), effective February 9, 2002.

    JIN Qi (China) relinquished her duties as Alternate Excutive Director to WEI Benhua (China), effective March 3, 2002.

    WANG Xiaoyi (China) was appointed Alternate Executive Director to WEI Benhua (China), effective March 4, 2002.

    Randal Quarles (United States) relinquished his duties as Executive Director for the United States, effective April 2, 2002.

    Appendix IX: Financial Statements

    April 30, 2002

    PricewaterhouseCoopers LLP

    Suite 800W

    1301 K Street NW

    Washington DC 20005

    Telephone (202) 414 1000

    Facsimile (202) 414 1301

    Report of the Independent Accountants

    To the Board of Governors of the International Monetary Fund:

    In our opinion, the accompanying balance sheets and the related statements of income, changes in resources and cash flows give a true and fair view of the financial condition of the General Department and the SDR Department of the International Monetary Fund (the “IMF”) as at April 30, 2002 and 2001, and their respective results of operations and cash flows for the years then ended in conformity with International Accounting Standards. These financial statements are the responsibility of the IMF’s management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with International Standards on Auditing, which require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

    Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 166 to 171 and 176 to 181 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audits of the financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole.

    May 24, 2002

    General Department

    Balance Sheets as at April 30, 2002 and 2001

    (In thousands of SDRs)

    2002200120022001
    Assets of the General Resources AccountLiabilities and Resources
    Credit outstanding52,080,69742,219,061Liabilities:
    Usable currencies102,460,003109,654,428Remuneration payable272,187394,281
    Other currencies54,625,24656,030,973Other liabilities120,750147,883
    Total currencies (Notes 3 and 4)209,165,946207,904,462Special Contingent Account (Note 10)1,307,0191213,019
    Total Liabilities1,699,9561,755,183
    SDR holdings1,484,9272,436,744
    Members’ Resources:
    Gold holdings (Note 5)5,851,7715,851,771Quotas, represented by:
    Reserve tranche positions (Notes 2 and 4)55,327,13946,732,986
    Receivables (Note 6)500,670561,562Subscription payments: Usable102,460,003109,654,428
    Other54,628,75856,027,486
    Other assets (Notes 7 and 14)752,987696,043Total quotas212,415,900212,414,900
    Assets of the Special Disbursement AccountReserves of the General Resources Account3,640,4453,280,499
    Investments and cash equivalents (Note 8)2,537,3012,405,928
    Structural Adjustment Facility loans (Note 3)341,692432,526Accumulated resources of the Special Disbursement Account2,878,9932,838,454
    2,878,9932,838,454
    Total Assets220,635,294220,289,036Total Liabilities and Resources220,635,294220,289,036
    The accompanying notes are an integral part of these financial statements.
    /s/ Eduard Brau/s/ Horst Köhler
    TreasurerManaging Director

    Income Statements for the Years Ended April 30, 2002 and 2001

    (In thousands of SDRs)

    20022001
    Income of the General Resources Account
    Operational Income
    Interest and charges (Note 6)2,032,9212,207,100
    Interest on SDR holdings41,284112,514
    Other charges and income (Note 6)157,49668,699
    2,231,7012,388,313
    Operational Expenses
    Remuneration (Note 9)1,246,9611,734,294
    Allocation to the Special Contingent Account94,00094,000
    1,340,9611,828,294
    Administrative Expenses (Note 13)530,794384,554
    Net Income of the General Resources Account359,946175,465
    Income of the Special Disbursement Account
    Investment income131,372150,027
    Interest on Structural Adjustment Facility loans1,1311,389
    Net Income of the Special Disbursement Account132,503151,416
    The accompanying notes are an integral part of these financial statements.

    Statements of Changes in Resources for the Years Ended April 30, 2002 and 2001

    (In thousands of SDRs)

    General Resources Account
    QuotasSpecial
    Reserve
    General
    Reserve
    Total
    Reserves
    Special
    Disbursement
    Account
    Accumulated
    Resources
    Balance at April 30, 2000210,251,4002,178,382926,6523,105,0342,767,727
    Quota subscriptions2,163,500
    Net income of the General Resources Account transferred to reserves166,6008,865175,465
    Net income of the Special Disbursement Account151,416
    Transfers from the Trust Fund131
    Transfers from the Supplementary Financing Facility Subsidy Account104
    Transfers to the PRGF Trust(25,924)
    Transfers to the PRGF-HIPC Trust(55,000)
    Balance at April 30, 2001212,414,9002,344,982935,5173,280,4992,838,454
    Quota subscriptions1,000
    Net income of General Resources Account transferred to reserves46,242313,704359,946
    Net income of the Special Disbursement Account132,503
    Transfers from the Trust Fund191
    Transfers from the Supplementary Financing Facility Subsidy Account103
    Transfers to the PRGF Trust(30,658)
    Transfers to the PRGF-HIPC Trust(61,600)
    Balance at April 30, 2002212,415,9002,391,2241,249,2213,640,4452,878,993
    The accompanying notes are an integral part of these financial statements.

    Statements of Cash Flows for the Years Ended April 30, 2002 and 2001

    (In thousands of SDRs)

    20022001
    Usable currencies and SDRs from operating activities
    Net income of the General Resources Account359,946175,465
    Net income of the Special Disbursement Account132,503151,416
    Adjustments to reconcile net income to usable resources generated by operations
    Changes in receivables and other assets3,948(153,434)
    Changes in remuneration payable and other liabilities(149,227)(6,529)
    Allocation to the Special Contingent Account94,00094,000
    Unrealized losses (gains) on investments24,415(28,587)
    Net usable currencies and SDRs provided by operating activities465,585232,331
    Usable currencies and SDRs from investment activities
    Net acquisition of investments by the Special Disbursement Account(155,788)(121,252)
    Net usable currencies and SDRs used by investment activities(155,788)(121,252)
    Usable currencies and SDRs from credit to members
    Purchases in currencies and SDRs, including reserve tranche purchases(29,194,497)(9,599,529)
    Repurchases in currencies and SDRs19,207,03611,243,299
    Repayments of Structural Adjustment Facility loans90,83479,112
    Net usable currencies and SDRs from credit to members(9,896,627)1,722,882
    Usable currencies and SDRs from financing activities
    Subscription payments in SDRs and usable currencies2501,746,500
    Changes in composition of usable currencies1,532,302367,228
    Transfers from SDA to the PRGF Trust, PRGF-HIPC Trust, and other accounts(91,964)(80,689)
    Net usable currencies and SDRs provided by financing activities1,440,5882,033,039
    Net (decrease) increase in usable currencies and SDRs(8,146,242)3,867,000
    Usable currencies and SDRs, beginning of period112,091,172108,224,172
    Usable currencies and SDRs, end of period103,944,930112,091,172
    The accompanying notes are an integral part of these financial statements.

    Notes to the Financial Statements as at April 30, 2002 and 2001

    1. Purpose and Organization

    The IMF is an international organization of 183 member countries. It was established, among other purposes, to promote international monetary cooperation and exchange stability and to maintain orderly exchange arrangements among members; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries under adequate safeguards to help ease balance of payments adjustment. The IMF conducts its operations and transactions through the General Department and the Special Drawing Rights Department (the SDR Department). The General Department consists of the General Resources Account (GRA), the Special Disbursement Account (SDA), and the Investment Account. The latter has not been activated. The IMF also administers trusts and accounts established to perform financial and technical services and financial operations consistent with the purposes of the IMF. The resources of these trusts and accounts are contributed by members or the IMF through the SDA. The financial statements of the SDR Department and these trusts and accounts are presented separately.

    General Resources Account

    The GRA holds the general resources of the IMF. Its resources reflect the receipt of quota subscriptions, use and repayment of IMF credit, collection of charges on the use of credit, payment of remuneration on creditor positions, borrowings, and payment of interest and repayment of borrowings.

    Special Disbursement Account

    The assets and resources of the SDA are held separately from other accounts of the General Department. Resources of the SDA include transfers received from the Trust Fund, an account administered by the IMF, and part of the proceeds from the sales of the IMF’s gold. There were no gold sales in financial year 2002 or 2001. Income from the investment of gold profits in the SDA is to be transferred, as needed, to the Poverty Reduction and Growth Facility-Heavily Indebted Poor Countries Trust (PRGF-HIPC Trust), in accordance with decisions of the IMF. The SDA also holds outstanding claims on loans extended under the Structural Adjustment Facility (SAF), which was established in March 1986 to provide balance of payments assistance on concessional terms to qualifying low-income developing country members.

    Assets that exceed the financing needs of the SDA, excluding investments arising from the sales of gold undertaken pursuant to the 1999 decision on gold sales by the IMF, are transferred to the Reserve Account of the Poverty Reduction and Growth Facility Trust (PRGF Trust), which is administered separately by the IMF as trustee.

    2. Summary of Significant Accounting Policies

    Basis of Presentation

    The financial statements of the IMF are prepared in accordance with International Accounting Standards (IAS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IAS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

    In financial year 2001, the IMF elected early adoption of IAS 39, Financial Instruments: Recognition and Measurement. The adoption of IAS 39 had no material effect on the IMF’s financial statements.

    Revenue and Expense Recognition

    The financial statements are prepared on the accrual basis; accordingly, income is recognized as it is earned, and expenses are recorded as they are incurred.

    Unit of Account

    The financial statements are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the SDR valuation basket. The IMF reviews the SDR valuation basket every five years. The latest review was completed in October 2000, and the new composition of the SDR valuation basket became effective on January 1, 2001. The value of the SDR in terms of U.S. dollars on the last business day prior to the change (December 29, 2000) was identical under both valuation baskets. The currencies in the basket as of April 30, 2002 and 2001 and their amounts were as follows:

    CurrencyAmount
    Euro0.426
    Japanese yen21.0
    Pound sterling0.0984
    U.S. dollar0.577

    As of April 30, 2002, one SDR was equal to 1.26771 U.S. dollars (one SDR was equal to 1.26579 U.S. dollars as of April 30, 2001).

    Credit Outstanding

    The IMF provides balance of payments assistance in accordance with established policies by selling to members, in ex change for their own currencies, SDRs or currencies of other members. When members make purchases, they incur obligations to repurchase the IMF’s holdings of their currencies arising from the purchases within specified periods by payments in SDRs or other currencies, as determined by the IMF. Fund credit is subject to specific repayment schedules over periods which vary depending on the type of facility used. Repayment schedules comprise two elements: (i) repurchase expectations, aimed at securing early repayment from members in a position to do so, in keeping with a long-standing principle of the IMF that its resources should be used only as long as there is a balance of payments need, and (ii) repurchase obligations. Repayments on the expectation schedules can be extended by a period of up to one year for Stand-By and Supplemental Reserve Facility (SRF) purchases or three years for Extended Fund Facility (EFF) purchases, upon a member’s request if its external position is not sufficiently strong. The IMF approved two such requests from Argentina to extend by one year SRF repayments due on January 17, 2002 for an amount of SDR 741 million and, subsequent to year-end, on May 22, 2002 an amount of SDR 106 million. A member is considered overdue after failure to make payment at the date of a repurchase expectation if a waiver is not granted, or after failure to make payment on a repurchase obligation. Failure to obtain a waiver for payment according to the repurchase expectations schedule date without the granting of a waiver by the IMF would result, inter alia, in a suspension of the right to make further purchases, including prospective purchases under an existing arrangement. The IMF’s policies on the use of its general resources are intended to ensure that their use is temporary and will be reversed within agreed-upon repurchase periods.

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

    Overdue Obligations and the First Special Contingent Account

    It is the policy of the IMF to exclude from current income, charges due by members that are six months or more overdue in meeting payments to the IMF, unless these members are current in the payment of charges.

    Debtor and creditor members share equally the financial consequences of overdue obligations under a mechanism referred to as burden sharing. The IMF generates compensating income equal to unpaid and deferred charges, excluding special charges, by adjusting the rates of charge and remuneration. Members that have borne the financial consequences of overdue charges will receive refunds only to the extent that overdue charges that had given rise to burden sharing adjustments are settled, and these amounts are therefore not presented as liabilities. In view of the risk resulting from overdue credit, the IMF also accumulates precautionary balances in the first Special Contingent Account (SCA-1). Allocations to the SCA-1 are financed by further adjustments to the rates of charge and remuneration and charged to the Income Statement (see Note 10).

    Currencies

    Currencies consist of members’ currencies and securities held by the IMF. Each member has the option to substitute non-negotiable and non-interest-bearing securities for the IMF’s holdings of its currency that exceed ¼ of 1 percent of the member’s quota. These securities are encashable by the IMF on demand.

    Each member is required to pay to the IMF its initial quota and subsequent quota increases partly in its own currency, with the remainder to be paid in usable currencies prescribed by the IMF, or SDRs. One exception was the quota increase of 1978, which was paid entirely in members’ own currencies.

    Usable Currencies

    Usable currencies consist of currencies of members considered by the IMF to have strong balance of payment and reserve positions. These currencies are included in the IMF’s financial transactions plan to finance purchases and other transfers of the IMF. Participation in the financial transactions plan is reviewed on a quarterly basis.

    Valuation of Currencies

    Currencies, including securities, are valued in terms of the SDR on the basis of the currency/SDR exchange rate determined for each currency. Securities are not marketable, but can be converted into cash on demand. Each member is obligated to maintain, in terms of the SDR, the SDR value of the balances of its currency held by the IMF in the GRA. This requirement is referred to as the maintenance-of-value obligation. Whenever the IMF revalues its holdings of a member’s currency, a receivable or a payable is established for the amount required to maintain the SDR value of the IMF’s holdings of that currency. The currency balances in the balance sheet include these receivables and payables. All currencies were revalued in terms of the SDR on April 30, 2002 and 2001.

    SDR Holdings

    Although SDRs are not allocated to the IMF, the IMF may acquire, hold, and dispose of SDRs through the GRA. The IMF receives SDRs from members in the settlement of their financial obligations to the IMF and uses SDRs in transactions and operations with members. The IMF earns interest on its SDR holdings at the same rate as all other holders of SDRs.

    SDR Interest Rate

    The SDR interest rate is determined weekly by reference to a combined market interest rate, which is a weighted average of yields on short-term instruments in the capital markets of the euro area, Japan, the United Kingdom, and the United States.

    Gold Holdings

    The Articles of Agreement limit the use of gold in the IMF’s operations and transactions. Any use provided for in the Articles requires a decision supported by an 85 percent majority of the total voting power. In accordance with the provisions of the Articles, whenever the IMF sells gold held on the date of the Second Amendment of the IMF’s Articles of Agreement (April 1, 1978), the portion of the proceeds equivalent at the time of sale to one SDR per 0.888671 gram of fine gold, which is equal to SDR 35 per fine troy ounce, must be placed in the GRA. Any excess over this value will be held in the SDA or transferred to the Investment Account. The IMF may also sell gold held on the date of the Second Amendment to those members that were members on August 31, 1975, in proportion to their quotas on that date, in exchange for their own currencies, at a price equivalent at the time of sale to one SDR per 0.888671 gram of fine gold.

    The IMF values its gold holdings at historical cost using the specific identification method (see Note 5).

    SAF Loans in the Special Disbursement Account

    SAF loans in the SDA are held at historical cost. Allowances for loan losses would be established if and when the IMF expected to incur a loss; no losses have been incurred in the past, and it is the current expectation that no losses will be incurred in the future. Repayments of all SAF loans are transferred to the PRGF Trust Reserve Account when received.

    Investments in the Special Disbursement Account

    The resources of the SDA are invested pending their use. Investments are made in debt securities, medium-term instruments which are fixed-income securities, and fixed-term deposits, either directly or by participation in an investment pool. Debt securities comprise securities issued by national financial organizations and domestic government bonds in the euro area, Japan, the United Kingdom and the United States; and securities issued by certain international financial institutions. Medium-term instruments offer a spread over domestic government bonds in the euro, Japanese yen, U.S. dollar and pound sterling. Investments are marked to market on the last business day of the accounting period. Purchases are valued and reflected on the trade date basis and sales are based on the actual settlement date valuations. Investment income comprises interest earned on investments, realized and unrealized gains and losses on investments, and currency valuation differences arising from exchange rate movements against the SDR.

    Interest rate risk is managed by limiting the investment portfolio to a weighted average effective duration that does not exceed three years. Currency risk is minimized by investing in securities denominated in SDRs or in the constituent currencies of the SDR valuation basket. Risk is further minimized by ensuring that the currency composition of the investment portfolio matches, as closely as possible, the currency composition of the SDR valuation basket.

    Fixed Assets

    Fixed assets with a cost in excess of a threshold amount are capitalized at cost. Buildings and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, which range from 3 years for equipment to 30 years for buildings.

    Quotas

    Each member is assigned a quota that forms the basis of its financial and organizational relationship with the IMF. A member’s quota is related to, but not strictly determined by, economic factors such as national income, the value of external trade and payments, and the level of official reserves. Quotas determine members’ subscriptions to the IMF, their relative voting power, access to financing, and their share in SDR allocations. Should a member withdraw from the Fund, quotas are repayable to the extent they are not needed to settle other net obligations of the member to the Fund.

    Reserve Tranche Position

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

    Reserves

    The IMF determines annually what part of its net income will be retained and placed to the General Reserve or the Special Reserve, and what part, if any, will be distributed. The Articles of Agreement permit the IMF to use the Special Reserve for any purpose for which it may use the General Reserve, except distribution. After meeting the expenses of conducting the PRGF Trust, net operational income generated from the surcharges on purchases under the SRF, the credit tranches, and the EFF, have been transferred to the General Reserve. All other income has been transferred to the Special Reserve.

    Charges

    The IMF levies periodic charges on members’ use of IMF credit. The rate of charge is set as a proportion of the SDR interest rate. For financial year 2002, the basic rate of charge after the retroactive reduction in charges was 116.4 percent (113.7 percent during financial year ended April 30, 2001) of the SDR interest rate. The basic rate of charge is increased to offset the effect on the IMF’s income of the deferral of unpaid charges and to finance the additions to the SCA-1. The average adjusted rate of charge before applicable surcharges for financial year 2002 was 3.44 percent (for financial year 2001 the average rate was 5.26 percent). A surcharge progressing from 150 to 500 basis points above the rate of charge applies to use of credit under the SRF and the Contingent Credit Lines (CCL). In addition, credit outstanding in excess of 200 percent of quota, resulting from purchases after November 28, 2000 in the credit tranches and under the EFF (other than those under the SRF and CCL), is subject to a surcharge of 100–200 basis points. Special charges are levied on members’ currency holdings that are not repurchased when due and on overdue charges. Special charges do not apply to members that are six months or more overdue to the IMF. A service charge is levied by the IMF on all purchases, except reserve tranche purchases. A refundable commitment fee is charged on Stand-By and Extended Arrangements. At the expiration or cancellation of an arrangement, the unrefunded portion of the commitment fee is taken into income.

    Remuneration

    The IMF pays interest, referred to as remuneration, on a member’s reserve tranche position. The rate of remuneration is equal to the SDR interest rate, adjusted downward to finance a share of the nonpayment of charges and additions to the SCA-1. The average adjusted rate of remuneration for the financial year ended April 30, 2002 was 2.65 percent (4.30 percent for the financial year 2001). A portion of the reserve tranche is unremunerated and is equal to 25 percent of the member’s quota on April 1, 1978—that part of the quota that was paid in gold prior to the Second Amendment of the Fund’s Articles. For a member that joined the Fund after that date, the unremunerated reserve tranche is the same percentage of its initial quota as the average unremunerated reserve tranche was as a percentage of the quotas of all other members when the new member joined the Fund. The unremunerated reserve tranche remains fixed for each member in nominal terms, but because of subsequent quota increases, it is now significantly lower when expressed as a percentage of quota. The average is equal to 3.8 percent of quota at April 30, 2002 and 2001, but the actual percentage is different for each member.

    Pension and Other Post-Retirement Obligations

    The IMF operates two defined-benefit pension plans and provides post-retirement benefits to retired staff.

    The pension plans are funded by payments from the staff and the IMF, taking into account the recommendations of independent actuaries. Assets of the plans are held in separate trustee-managed funds and are measured at fair value as of the balance sheet date. Pension obligations are measured using the Projected Unit Credit Method, which measures the present value of the estimated future cash outflows, using interest rates of government securities that have maturities approximating the terms of the pension liabilities.

    The assets set aside for the provision of post-retirement benefits are held in an investment account administered by the IMF. This account is funded by contributions from the IMF. The expected costs of the post-retirement medical and life insurance benefits are accrued over the period of employment using the Projected Unit Credit Method. Valuations of these obligations are carried out by independent actuaries.

    Comparatives

    When necessary, comparative figures have been reclassified to conform with changes in the presentation of the current year.

    3. Credit Outstanding

    Changes in the outstanding use of IMF credit under the various facilities of the GRA during the years ended April 30, 2002 and 2001 were as follows:

    April 30, 2000PurchasesRepurchasesApril 30, 2001PurchasesRepurchasesApril 30, 2002
    In millions of SDRs
    Regular facilities20,9684,396(8,658)16,70617,219(5,698)28,227
    Extended Fund
    Facility16,3611,013(1,417)15,957959(1,425)15,491
    Supplemental
    Reserve Facility4,0854,08510,891(9,101)5,875
    Systemic Transformation
    Facility2,718(785)1,933(622)1,311
    Enlarged Access752(322)430(109)321
    Compensatory and
    Contingency
    Financing Facility3,032(40)2,992(2,246)746
    Supplementary
    Financing Facility137(21)116(6)110
    Total credit outstanding43,9689,494(11,243)42,21929,069(19,207)52,081

    As of April 30, 2002 and 2001, SDA loans and interest receivable computed at 0.5 percent a year, consisted of the following:

    20022001
    In millions of SDRs
    Structural Adjustment
    Facility loans341432
    Interest accrued88
    Less: interest deferred(8)(7)
    341433

    Scheduled repurchases in the GRA and repayments of SAF loans in the SDA are summarized below:

    Financial Year
    Ending
    April 30
    General
    Resources
    Account
    Special
    Disbursement
    Account
    In millions of SDRs
    200312,88262
    20049,64951
    200513,80140
    20068,90636
    20072,462
    2008 and beyond3,500
    Overdue881152
    Total52,081341

    As of April 30, 2002 and 2001, use of credit in the GRA by the largest users was as follows:

    20022001
    In millions of SDRs and as a percent of total GRA credit outstanding
    Largest user of credit14,51027.9%8,54620.2%
    Three largest users of credit32,33762.1%22,30852.8%
    Five largest users of credit41,14379.0%28,72868.0%

    Overdue Obligations

    At April 30, 2002, seven members (as of April 30, 2001, six members) were six months or more overdue in settling their financial obligations to the IMF. Five (four members as of April 30, 2001) of these members were overdue to the General Department.

    GRA repurchases, GRA charges, SAF loan repayments, and SAF interest that are six or more months overdue in the General Department were as follows:

    Repurchases
    and SAF Loans
    Charges and
    SAF Interest
    2002200120022001
    In millions of SDRs
    Total overdue1,0331,0111,0551,017
    Overdue for six months or more1,0101,0111,039992
    Overdue for three years or more977985930886

    The type and duration of the overdue amounts in the General Department as of April 30, 2002, were as follows:

    Repurchases
    and SAF
    Loans
    Charges
    and SAF
    Interest
    Total
    Obligation
    Longest
    Overdue
    Obligation
    In millions of SDRs
    Congo, Democratic
    Republic of30083383May 1991
    Liberia201240441May 1985
    Somalia10691197July 1987
    Sudan3796361,015July 1985
    Zimbabwe47552February 2001
    Total1,0331,0552,088

    4. Currencies

    Changes in the IMF’s holdings of members’ currencies for the years ended April 30, 2002 and 2001 were as follows:

    April 30, 2000Net ChangeApril 30, 2001Net ChangeApril 30, 2002
    In millions of SDRs
    Members’ quotas210,2512,164212,4151212,416
    Members’ outstanding use of IMF credit in the GRA43,913(1,694)42,2199,86252,081
    Members’ reserve tranche positions in the GRA(48,872)2,139(46,733)(8,594)(55,327)
    Administrative currency balances(3)63(7)(4)
    Currencies205,2892,615207,9041,262209,166

    Receivables and payables arising from valuation adjustments at April 30, 2002, when all holdings of currencies of members were last revalued, amounted to SDR 17,953 million and SDR 3,648 million, respectively (SDR 14,736 million and SDR 3,886 million, respectively, at April 30, 2001). Settlements of these receivables or payables are required to be made promptly after the end of each financial year.

    Other currency holdings, other than those resulting from the use of credit or usable currencies, amounted to SDR 54,625 million (SDR 56,031 million as of April 30, 2001); of this amount SDR 28,996 million (SDR 33,129 million as of April 30, 2001) represents currencies of members that use IMF credit.

    5. Gold Holdings

    At April 30, 2002 and April 30, 2001, the IMF held 3,217,341 kilograms of gold, equal to 103,439,916 fine ounces of gold, at designated depositories. As of April 30, 2002, the value of the IMF’s holdings of gold calculated at the market price was SDR 25.1 billion (SDR 21.5 billion at April 30, 2001).

    6. Interest and Charges

    As of April 30, 2002, the total holdings on which the IMF levies charges amounted to SDR 52,081 million (SDR 42,219 million as of April 30, 2001). Charges and other receivables due to the IMF as of April 30, 2002 and 2001 were as follows:

    20022001
    In millions of SDRs
    Periodic charges1,5461,560
    Less: deferred income(1,053)(1,020)
    493540
    Other receivables822
    Receivables501562

    Periodic charges for the years ended April 30, 2002 and 2001 consisted of the following:

    20022001
    In millions of SDRs
    Periodic charges2,0022,174
    Add: adjustments for deferred charges, net of refunds, and for contributions to the SCA-16460
    Less: income deferred, net of settlements(33)(27)
    Total periodic charges2,0332,207

    Special charges, service charges and the unrefunded commitment fees are included in Other Charges and Income which amounted to SDR 157 million (SDR 69 million for the year ended April 30, 2001).

    7. Fixed Assets

    Other assets include capital assets, which at April 30, 2002 and 2001 amounted to SDR 238 million and SDR 223 million, respectively, and consisted of:

    20022001
    In millions of SDRs
    Land and buildings314307
    Equipment4546
    Total fixed assets359353
    Less: accumulated depreciation(121)(130)
    Net fixed assets238223

    8. Investments and Cash Equivalents

    As at April 30, the investments in the SDA consisted of the following:

    20022001
    In millions of SDRs
    Fixed-term deposits2,53739
    Medium-term instruments1,601
    Debt securities766
    Total2,5372,406

    Included in fixed-term deposits are cash equivalents amounting to SDR 2,166 million (SDR 39 million as at April 30, 2001) comprising short-term deposits with maturities of less than ninety days.

    As at April 30, the maturity profile of the investments is summarized below:

    20022001
    In millions of SDRs
    Less than 1 year2,53739
    1-3 years2,247
    3-5 years117
    Over 5 years3
    Total2,5372,406

    Investment income for the years ended April 30 included the following:

    20022001
    In millions of SDRs
    Interest income96110
    Realized gains6011
    Unrealized (losses)/gains(25)29
    Total income131150

    9. Remuneration

    At April 30, 2002, total creditor positions on which the IMF paid remuneration amounted to SDR 48,817 million (SDR 40,176 million at April 30, 2001). Remuneration for the years ended April 30, 2002 and 2001 consisted of the following:

    20022001
    In millions of SDRs
    Remuneration1,3111,794
    Less: adjustments for deferred charges net of refunds, and for contributions to the SCA-1(64)(60)
    1,2471,734

    10. Deferred Income and the First Special Contingent Account

    The SCA-1 is financed by 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 shared the cost of its financing when there are no outstanding overdue repurchases and charges, or at such earlier time as the IMF may decide. At April 30, 2002, the balances held in the SCA-1 amounted to SDR 1,307 million (SDR 1,213 million at April 30, 2001).

    Cumulative charges, net of settlements, that have been deferred since May 1, 1986 and have resulted in adjustments to charges and remuneration amounted to SDR 865 million at April 30, 2002 (SDR 832 million at April 30, 2001). The cumulative refunds for the same period, resulting from the settlements of deferred charges for which burden sharing adjustments have been made, amounted to SDR 994 million (SDR 993 million at April 30, 2001).

    11. Borrowings

    Under the General Arrangements to Borrow (GAB), the IMF 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, 2003. Interest on borrowings under the GAB is calculated at a rate equal to the SDR interest rate.

    Under the New Arrangements to Borrow (NAB), the IMF may borrow up to SDR 34 billion of supplementary resources. The NAB is the facility of first and principal recourse, but it does not replace the GAB, which will remain in force. Outstanding drawings and commitments under these two borrowing arrangements are limited to a combined total of SDR 34 billion. The NAB became effective for a five-year period on November 17, 1998 and was activated on December 2, 1998. Interest on borrowings under the NAB is payable to the participants at the SDR interest rate or any such higher rate as may be agreed between the IMF and participants representing 80 percent of the total credit arrangement.

    12. Arrangements and Commitments in the General Department

    An arrangement is a decision of the IMF that gives a member the assurance that the IMF stands ready to provide SDRs or usable currencies during a specified period and up to a specified amount, in accordance with the terms of the arrangement. Credit under these arrangements is subject to interest and charges that are uniform to all members and that reflect the cost to the IMF of financing such credit, plus a margin. In addition, certain surcharges may apply. At April 30, 2002, the undrawn balances under the 17 arrangements that were in effect in the GRA amounted to SDR 26,908 million (SDR 22,316 million under 25 arrangements at April 30, 2001).

    The IMF has committed to lease commercial office space through 2005. Expenditures totaling SDR 32 million will be incurred over this period.

    13. Administrative Expenses

    The administrative expenses for the years ended April 30, 2002 and 2001 were as follows:

    20022001
    In millions of SDRs
    Personnel338302
    Pension and other related expenses/(income)5(90)
    Travel7369
    Other117106
    Less: reimbursements for the administration of the SDR Department(2)(2)
    Total administrative expenses, net of reimbursements531385

    The majority of these expenses are incurred in U.S. dollars; exchange gains and losses incurred in the normal course of business are reflected in administrative expenses and are not significant.

    The GRA is reimbursed for the cost of administering the SDR Department.

    The GRA is to be reimbursed annually for expenses incurred in administering the SDA and the PRGF Trust. Following the establishment of the SRF and CCL and the consequent increase in net operational income, the Executive Board decided to forgo reimbursement of the expenses incurred in administering the PRGF Trust for financial years 2002 and 2001 and to transfer the amounts that would otherwise have been reimbursed to the GRA from the PRGF Trust Reserve Account, through the SDA, to the PRGF-HIPC Trust. These transfers amounted to SDR 61.6 million for financial year 2002 (SDR 55 million for financial year 2001) and have been included under transfers to the PRGF-HIPC Trust in the statement of changes in resources.

    14. Pension and Other Post-Retirement Benefits

    The IMF has a defined-benefit Staff Retirement Plan (SRP) that covers substantially all eligible staff and a Supplemental Retirement Benefits Plan (SRBP) for selected participants of the SRP. Participants contribute a fixed percentage of their pensionable remuneration. The IMF contributes the remainder of the cost of funding the plans and pays certain administrative costs of the plans. In addition, the IMF provides other employment and post-retirement benefits, including medical and life insurance benefits. In 1995, the IMF established a separate account, the Retired Staff Benefits Investment Account (RSBIA), to hold and invest resources set aside to fund the cost of these employment benefits.

    On March 23, 2001, the RSBIA was amended to include the funding and administration of all existing long-term benefits, other than pension benefits for regular staff, including separation and repatriation benefits, accrued annual leave up to 60 days, payments in lieu of pension for contractual employees, and associated tax allowances.

    The obligations of the SRP, SRBP, and RSBIA are valued by independent actuaries every year using the Projected Unit Credit Method. The latest actuarial valuations were carried out as at April 30, 2002. The key assumptions used are as shown below. The present value of the defined-benefit obligation and current service cost was calculated using the Projected Unit Credit Method.

    Amounts recognized in the balance sheets are as follows:

    20022001
    In millions of SDRs
    Fair value of plan assets3,0993,200
    Present value of the defined-benefit obligation(2,884)(2,538)
    Unrecognized actuarial (losses)/gains242(231)
    Unrecognized prior service cost13
    Net balance sheet asset470431

    Movement in the net balance sheets asset:

    20022001
    In millions of SDRs
    Net balance sheet asset, beginning of year431223
    Reclassification of related liability(6)
    Income/(expense) recognized in income statement(5)90
    Contributions paid44124
    Net balance sheet asset, end of year470431

    The amounts recognized in the income statements are as follows:

    20022001
    In millions of SDRs
    Current service cost11690
    Interest cost186184
    Expected return on assets(295)(321)
    Amortization of actuarial gain(2)(43)
    Total expense/(gain) recognized in income statement5(90)
    Actual (loss)/return on assets(79)315

    Principal actuarial assumptions used:

    20022001
    In percent
    Discount rate7.57.5
    Expected return on plan assets9.39.3
    Future salary increases6.4-10.86.6-11.0
    Ultimate health care costs growth rates5.55.5

    Schedule 1: Quotas, IMF’s Holdings of Currencies, Reserve Tranche Positions, and Members’ Use of Resources as at April 30, 2002

    (In thousands of SDRs)

    General Resources Account
    IMF’s holdings of currencies1Use of Resources
    GRAPRGF
    AmountPercent2SDA3Trust4Total5
    MemberQuotaTotalPercent of quotaReserve tranche position(A) +(B) +(C) =(D)
    Afghanistan, Islamic State of120,400115,48895.94,928
    Albania48,70048,65999.93,3553,3090.0159,44162,750
    Algeria1,254,7002,328,433185.685,0821,158,8132.231,158,813
    Angola286,300286,445100.1
    Antigua and Barbuda13,50013,499100.01
    Argentina2,117,10012,966,922612.51110,849,82120.8310,849,821
    Armenia, Republic of92,000110,286119.918,2810.04114,287132,568
    Australia3,236,4002,098,11964.81,138,329
    Austria1,872,3001,233,30065.9638,949
    Azerbaijan160,900294,811183.210133,9110.2698,000231,911
    Bahamas, The130,300124,06395.26,239
    Bahrain, Kingdom of135,00067,46350.067,568
    Bangladesh533,300618,978116.118685,8590.1614,375100,234
    Barbados67,50062,75893.04,752
    Belarus, Republic of386,400438,975113.62052,5750.1052,575
    Belgium4,605,2003,080,48466.91,524,724
    Belize18,80014,56277.54,239
    Benin61,90059,72196.52,1881,75055,54757,297
    Bhutan6,3005,28083.81,020
    Bolivia171,500162,63894.88,875161,793161,793
    Bosnia and Herzegovina169,100254,435150.585,3300.1685,330
    Botswana63,00040,83364.822,177
    Brazil3,036,1006,285,891207.03,249,1386.243,249,138
    Brunei Darussalam150,000114,72776.535,285
    Bulgaria640,2001,434,866224.132,778827,4241.59827,424
    Burkina Faso60,20052,95788.07,2466,63689,00595,641
    Burundi77,00076,64199.53601,9341,934
    Cambodia87,50089,063101.81,56366,98568,548
    Cameroon185,700185,15299.7553209,880209,880
    Canada6,369,2004,154,01465.22,215,117
    Cape Verde9,6009,598100.021,2301,230
    Central African Republic55,70055,58499.811624,48024,480
    Chad56,00055,71999.528277,23077,230
    Chile856,100550,49564.3305,605
    China6,369,2004,420,41569.41,948,831
    Colombia774,000488,20263.1285,803
    Comoros8,9008,36294.0540540540
    Congo, Democratic Republic of291,000448,109154.0157,1090.30142,910300,019
    Congo, Republic of84,60099,178117.253615,1000.0312,50627,606
    Costa Rica164,100144,11387.820,000
    Cöte d’Ivoire325,200324,88499.9320421,795421,795
    Croatia, Republic of365,100448,876122.915983,9330.1683,933
    Cyprus139,60094,23867.545,369
    Czech Republic819,300698,85885.3120,451
    Denmark1,642,8001,048,35763.8594,446
    Djibouti15,90017,4851101,1002,6850.019,08711,772
    Dominica8,2008,19299.99
    Dominican Republic218,900253,636115.9334,7380.0734,738
    Ecuador302,300511,879169.317,153226,7300.44226,730
    Egypt943,700943,716100.0
    El Salvador171,300171,303100.0
    Equatorial Guinea32,60032,609100.01,0324401,472
    Eritrea15,90015,900100.05
    Estonia, Republic of65,20073,914113.468,7190.028,719
    Ethiopia133,700126,55594.77,16916,95886,576103,534
    Fiji70,30055,30078.715,004
    Finland1,263,800831,29665.8432,559
    France10,738,5007,004,56865.23,733,980
    Gabon154,300213,770138.517959,6430.1159,643
    Gambia, The31,10029,61895.21,48520,61020,610
    Georgia150,300180,362120.01030,0630.06190,725220,788
    Germany13,008,2008,563,89165.84,444,321
    Ghana369,000369,004100.0275,505275,505
    Greece823,000553,13267.2269,870
    Grenada11,70011,701100.0
    Guatemala210,200210,206100.0
    Guinea107,100107,02699.97597,21597,215
    Guinea-Bissau14,20017,750125.03,5500.0114,74018,290
    Guyana90,90090,902100.03,19870,90074,098
    Haiti60,70073,924121.85613,2780.0315,17528,453
    Honduras129,500162,437125.48,62741,5630.08125,250166,813
    Hungary1,038,400716,44769.0321,954
    Iceland117,60099,02184.218,580
    India4,158,2003,669,47888.2488,776
    Indonesia2,079,3008,910,394428.5145,4786,976,57213.406,976,572
    Iran, Islamic Republic of1,497,2001,497,203100.0
    Iraq504,000504,013100.0
    Ireland838,400546,84765.2291,570
    Israel928,200705,84876.0222,359
    Italy7,055,5004,392,16662.32,663,338
    Jamaica273,500302,550110.629,0000.0629,000
    Japan13,312,8008,831,94966.34,481,278
    Jordan170,500499,749293.152329,2990.63329,299
    Kazakhstan, Republic of365,700365,700100.05
    Kenya271,400258,86495.412,55778,64778,647
    Kiribati5,6005,601100.0
    Korea1,633,6001,404,75986.0228,845
    Kuwait1,381,100888,03364.3493,067
    Kyrgyz Republic88,80096,863109.158,0630.02129,317137,380
    Lao People’s Democratic Republic52,90052,900100.058632,52033,106
    Latvia, Republic of126,800143,921113.55517,1560.0317,156
    Lebanon203,000184,16890.718,833
    Lesotho34,90031,36589.93,53914,04914,049
    Liberia71,300272,213381.828200,9320.39223,822
    Libya1,123,700728,20664.8395,505
    Lithuania, Republic of144,200252,430175.116108,2440.21108,244
    Luxembourg279,100180,18164.698,946
    Macedonia, former Yugoslav Republic of68,90095,197138.226,2950.0529,00455,299
    Madagascar122,200122,174100.027101,374101,374
    Malawi69,40067,13296.72,27156,57856,578
    Malaysia1,486,600878,45059.1608,156
    Maldives8,2006,64681.01,554
    Mali93,30084,46790.58,8352,032126,043128,075
    Malta102,00061,74560.540,260
    Marshall Islands3,5003,500100.01
    Mauritania64,40064,406100.068277,87178,553
    Mauritius101,60087,13285.814,474
    Mexico2,585,8002,585,407100.0409
    Micronesia, Federated States of5,1005,100100.01
    Moldova, Republic of123,200216,950176.1593,7500.1818,480112,230
    Mongolia51,10051,03899.96335,79135,791
    Morocco588,200517,76088.070,441
    Mozambique113,600113,600100.07154,365154,365
    Myanmar258,400258,402100.0
    Namibia136,500136,463100.038
    Nepal71,30065,55791.95,7464,4764,476
    Netherlands5,162,4003,447,34466.81,715,079
    New Zealand894,600580,36664.9314,237
    Nicaragua130,000130,010100.0125,330125,330
    Niger65,80057,24087.08,56172,71472,714
    Nigeria1,753,2001,753,122100.0143
    Norway1,671,7001,073,63264.2598,093
    Oman194,000125,73664.868,330
    Pakistan1,033,7001,969,508190.5115935,9221.80513,6601,449,582
    Palau3,1003,100100.01
    Panama206,600234,752113.611,86040,0000.0840,000
    Papua New Guinea131,600216,835164.831385,5400.1685,540
    Paraguay99,90078,42878.521,475
    Peru638,400879,298137.7240,8640.46240,864
    Philippines879,9002,266,916257.687,1821,474,1952.831,474,195
    Poland, Republic of1,369,0001,002,16473.2366,836
    Portugal867,400568,03165.5299,370
    Qatar263,800169,83664.493,964
    Romania1,030,2001,315,582127.7285,3770.55285,377
    Russian Federation5,945,40011,501,505193.51,1375,557,18610.675,557,186
    Rwanda80,10082,344102.82,23161,88064,111
    St. Kitts and Nevis8,90010,242115.1821,4221,422
    St. Lucia15,30015,300100.01
    St. Vincent and the Grenadines8,3007,80094.0500
    Samoa11,60010,91894.1683
    San Marino, Republic of17,00012,90075.94,101
    Säo Tom é and Principe7,4007,403100.01,9021,902
    Saudi Arabia6,985,5004,667,97666.82,317,528
    Senegal161,800160,37399.11,432202,532202,532
    Seychelles8,8008,799100.01
    Sierra Leone103,700103,685100.02410,808109,267120,075
    Singapore862,500565,37765.6297,162
    Slovak Republic357,500357,505100.0
    Slovenia, Republic of231,700148,54464.183,162
    Solomon Islands10,4009,86794.9543
    Somalia44,200140,907318.896,7010.198,840112,004
    South Africa1,868,5001,868,131100.0373
    Spain3,048,9001,989,44365.31,059,468
    Sri Lanka413,400517,319125.147,785151,6800.2950,400202,080
    Sudan169,700549,077323.611379,3570.74438,585
    Suriname92,10085,97693.46,125
    Swaziland50,70044,15487.16,552
    Sweden2,395,5001,538,36764.2857,139
    Switzerland3,458,5002,194,77463.51,263,762
    Syrian Arab Republic293,600293,603100.05
    Tajikistan, Republic of87,00093,563107.526,5630.0178,28084,843
    Tanzania198,900188,92395.09,975291,220291,220
    Thailand1,081,9002,131,895197.1201,050,0002.021,050,000
    Togo73,40073,09799.630544,20844,208
    Tonga6,9005,19775.31,710
    Trinidad and Tobago335,600287,03785.548,566
    Tunisia286,500266,33593.020,167
    Turkey964,00015,361,6881,593.5112,77514,510,46027.8614,510,460
    Turkmenistan, Republic of75,20075,200100.05
    Uganda180,500180,506100.06213,790213,790
    Ukraine1,372,0002,829,813206.331,457,8132.801,457,813
    United Arab Emirates611,700403,72966.0207,972
    United Kingdom10,738,5007,167,65666.73,570,851
    United States37,149,30024,377,03565.612,766,071
    Uruguay306,500643,357209.935,675372,5250.72372,525
    Uzbekistan, Republic of275,600333,788121.1558,1880.1158,188
    Vanuatu17,00014,50685.32,496
    Venezuela, República
    Bolivariana de2,659,1002,337,20187.9321,900
    Vietnam329,100337,153102.458,0530.02270,040278,093
    Yemen, Republic of243,500291,785119.81348,2970.09238,750287,047
    Yugoslavia, Federal Republic of (Serbia/Montenegro)467,700734,639157.1266,9250.51266,925
    Zambia489,100489,101100.018145,400636,165781,565
    Zimbabwe353,400472,029133.6328118,9550.2389,484208,439
    Total212,415,900209,165,94655,327,13952,080,697100.00%341,3726,172,84858,683,498

    Includes nonnegotiable, non-interest-bearing notes that members are entitled to issue in substitution for currencies, and outstanding currency valuation adjustments.

    Represents the percentage used by each member of total use of GRA resources (column A).

    The Special Disbursement Account (SDA) of the General Department had financed loans under Structural Adjustment Facility (SAF) and Poverty Reduction Growth Facility (PRGF) arrangements.

    For information purposes only. The PRGF Trust provides financing under PRGF arrangements and is not a part of the General Department.

    Includes outstanding Trust Fund loans to Liberia (SDR 23 million), Somalia (SDR 6 million), and Sudan (SDR 59 million).

    Less than SDR 500.

    Schedule 2: Financial Resources and Liquidity Position in the General Resources Account as at April 30, 2002 and 2001

    (In thousands of SDRs)

    20022001
    Total Resources
    Currencies209,165,946207,904,462
    SDR holdings1,484,9272,436,744
    Gold holdings5,851,7715,851,771
    Sundry assets, net of sundry liabilities1860,720715,441
    Total resources217,363,364216,908,418
    Less: Non-Usable Resources2113,418,434104,817,246
    Equals: Usable Resources3103,944,930112,091,172
    Resources Committed and Working Balances
    Undrawn balances under arrangements423,730,00918,097,849
    Minimum working balances415,466,43015,289,110
    Resources committed and working balances39,196,43933,386,959
    Net Uncommitted Usable Resources564,748,49178,704,213
    Liquid Liabilities
    Reserve tranche positions655,327,13946,732,986
    Liquidity Ratio7117.0%168.4%
    Memorandum Item
    Resources available under borrowing arrangements34,000,00034,000,000

    Sundry assets, net of sundry liabilities, reflect current assets (charges, interest, and other receivables) and other assets (which include cap ital assets such as land, buildings, and equipment), net of sundry liabilities (remuneration payable and other liabilities).

    Resources regarded as non-usable in the financing of the IMF’s ongoing operations and transactions are (1) gold holdings, (2) currencies of members that are using IMF credit, (3) currencies of other members with relatively weak external positions, and (4) sundry assets, net of sundry liabilities.

    Usable resources consist of (1) holdings of currencies of members considered by the IMF as having balance of payments and reserve positions sufficiently strong for their currencies to be used in transfers, (2) SDR holdings, and (3) any unused amounts under credit lines that have been activated.

    Amounts committed under arrangements, which reflect undrawn balances committed under operative Stand By and Extended Arrange ments, other than precautionary arrangements, are deducted from the total of usable resources, as are one half of the amounts committed under precautionary arrangements. The Executive Board has decided that the minimum working balances be set at 10 percent of the quotas of members deemed sufficiently strong for their currencies to be used in operations and transactions.

    Net uncommitted usable resources are defined as usable resources less resources committed under arrangements and minimum working balances, as described above. The amount represents the resources available to meet requests for use of IMF credit under new credit arrangements and for members’ use of their reserve positions in the IMF.

    Liquid liabilities consist of (1) members’ reserve tranche positions, and (2) the amount of any outstanding borrowing by the IMF under the UAB or NAB. There are currently no borrowings under the GAB or NAB. Both reserve tranche positions and outstanding lending under the GAB and NAB (together called members’ reserve positions in the IMF) are part of members’ international reserves. A member may draw on its reserve position when it represents that it has a need and the IMF must therefore at all times be in a position to meet such requests.

    The liquidity ratio is a measure of the IMF’s liquidity position, represented by the ratio of its net uncommitted usable resources to its liquid liabilities.

    Schedule 3: Status of Arrangements as at April 30, 2002

    (In thousands of SDRs)

    MemberDate of ArrangementExpirationTotal Amount AgreedUndrawn Balance
    General Resources Account
    Stand-By Arrangements
    ArgentinaMarch 10,2000March 9, 200316,936,80017,180,490
    BrazilSeptember 14, 2001December 13, 200212,144,40028,468,817
    BulgariaFebruary 27, 2002February 26, 2004240,000208,000
    Croatia, Republic ofMarch 19, 2001May 18, 2002200,000200,000
    GuatemalaApril 1,2002March 31, 200384,00084,000
    Latvia, Republic ofApril 20,2001December 19, 200233,00033,000
    Lithuania, Republic ofAugust 30, 2001March 29, 200386,52086,520
    PeruFebruary 1, 2002February 29, 2004255,000255,000
    RomaniaOctober 31, 2001April 29, 2003300,000248,000
    Sri LankaApril 20,2001August 19,2002200,00048,320
    TurkeyFebruary 4, 2002December 31, 200412,821,2004,627,200
    UruguayApril 1,2002March 31, 2004594,100471,500
    Yugoslavia, Federal Republic ofJune 11, 2001May 31, 2002200,00050,000
    Total Stand-By Arrangements44,095,02021,960,847
    Extended Arrangements
    ColombiaDecember 20, 1999December 19, 20021,957,0001,957,000
    IndonesiaFebruary 4, 2000December 31, 20033,638,0002,201,960
    JordanApril 15, 1999May 31, 2002127,88060,890
    UkraineSeptember 4, 1998September 3, 20021,919,950726,950
    Total Extended Arrangements7,642,8304,946,800
    Total General Resources Account51,737,85026,907,647

    Includes SDR 6.09 billion available until January 11, 2002 under the Supplemental Reserve Facility.

    Includes SDR 9.95 billion available until September 13, 2002 under the Supplemental Reserve Facility.

    SDR Department

    Balance Sheets as at April 30, 2002 and 2001

    (In thousands of SDRs)

    2002200120022001
    AssetsLiabilities
    Charges receivable119,954215,387120,458215,861
    Overdue assessments and charges (Note 3)108,86398,245
    Participants with holdings below allocations (Note 2)Participants with holdings above allocations (Note 2)
    Allocations12,484,98012,646,264SDR holdings15,778,79614,690,440
    Less: SDR holdings3,847,6683,865,939Less: allocations8,948,3508,787,066
    Allocations in excess of holdings8,637,3128,780,325Holdings in excess of allocations6,830,4465,903,374
    Holdings by the General Resources Account1,484,9272,436,744
    Holdings of SDRs by prescribed holders430,298537,978
    Total Assets8,866,1299,093,957Total Liabilities8,866,1299,093,957
    The accompanying notes are an integral part of these financial statements.
    /s/ Eduard Brau/s/ Horst Köhler
    TreasurerManaging Director

    Income Statements for the Years Ended April 30, 2002 and 2001

    (In thousands of SDRs)

    20022001
    Revenue
    Net charges from participants with holdings below allocations240,177400,216
    Assessments on SDR allocations2,4092,451
    242,586402,667
    Expenses
    Interest on SDR holdings
    Net interest to participants with holdings above allocations186,618261,127
    General Resources Account41,283112,514
    Prescribed holders12,27626,575
    240,177400,216
    Administrative expenses2,4092,451
    242,586402,667
    Net Income
    The accompanying notes are an integral part of these financial statements.

    Statements of Cash Flows for the Years Ended April 30, 2002 and 2001

    (In thousands of SDRs)

    20022001
    Cash flows from operating activities
    Receipts of SDRs
    Transfers among participants and prescribed holders5,053,5506,815,404
    Transfers from participants to the General Resources Account3,992,9915,800,216
    Transfers from the General Resources Account to participants and prescribed holders4,944,8086,087,364
    Total Receipts of SDRs13,991,34918,702,984
    Uses of SDRs
    Transfers among participants and prescribed holders4,825,9716,513,836
    Transfers from participants to the General Resources Account3,937,2185,682,687
    Transfers from the General Resources Account to participants and prescribed holders4,944,8086,087,364
    Charges paid in the SDR Department272,764426,404
    Other10,588(7,307)
    Total Uses of SDRs13,991,34918,702,984
    The accompanying notes are an integral part of these financial statements.

    Notes to the Financial Statements as at April 30, 2002 and 2001

    1. Nature of Operations

    The SDR is an international interest-bearing reserve asset created by the IMF following the First Amendment of the Articles of Agreement in 1969. All transactions and operations involving SDRs are conducted through the SDR Department. The SDR was created as a supplement to existing reserve assets and is allocated by the IMF to members participating in the SDR Department. Its value as a reserve asset derives, essentially, from the commitments of participants to hold and accept SDRs and to honor various obligations connected with its proper functioning as a reserve asset.

    At April 30, 2002, all members of the IMF were participants in the SDR Department. SDRs have been allocated by the IMF to members that are participants in the SDR Department at the time of the allocation in proportion to their quotas in the IMF. Six allocations have been made (in 1970, 1971, 1972, 1979, 1980, and 1981) for a total of SDR 21.4 billion. A proposed amendment of the IMF’s Articles of Agreement was approved by the Executive Board in January 1998 to allow for a special one-time allocation of SDRs equal to 21.4 billion. The amendment will enter into force after three-fifths of the members, having 85 percent of the total voting power, have accepted it. Upon termination of participation or liquidation of the SDR Department, the IMF will provide to holders the currencies received from the participants in settlement of their obligations. The IMF is empowered to prescribe certain official entities as holders of SDRs; at April 30, 2002 and 2001, 16 institutions were prescribed as holders. Prescribed holders do not receive allocations.

    The SDR is also used by a number of international and regional organizations as a unit of account or as the basis for their units of account. Several international conventions also use the SDR as a unit of account, notably those expressing liability limits for the international transport of goods and services.

    Uses of SDRs

    Participants and prescribed holders can use and receive SDRs in transactions and operations by agreement among themselves. Participants can also use SDRs in operations and transactions involving the General Resources Account, such as the payment of charges and repurchases. The IMF ensures, by designating participants to provide freely usable currency in exchange for SDRs, that a participant can use its SDRs to obtain an equivalent amount of currency if it has a need because of its balance of payments, its reserve position, or developments in its reserves.

    General Allocations and Cancellations of SDRs

    The IMF has the authority to create unconditional liquidity through general allocations of SDRs to participants in the SDR Department in proportion to their quotas in the IMF. The IMF cannot allocate SDRs to itself or to other holders it prescribes. The Articles also provide for the cancellation of SDRs, although to date there have been no cancellations. In its decisions on general allocations of SDRs, the IMF, as prescribed under its Articles, has sought to meet the long-term global need to supplement existing reserve assets in such a manner as will promote the attainment of the IMF’s purposes and avoid economic stagnation and deflation, as well as excess demand and inflation.

    2. Summary of Significant Accounting Policies

    Basis of Presentation

    The financial statements of the IMF are prepared in accordance with International Accounting Standards (IAS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IAS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

    In financial year 2001, IAS 39, Financial Instruments: Recognition and Measurement was adopted and had no material effect on the SDR Department’s financial statements.

    Unit of Account

    The financial statements are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the SDR valuation basket. The IMF reviews the SDR valuation basket every five years. The latest review was completed in October 2000 and the new composition of the SDR valuation basket became effective on January 1, 2001. The value of the SDR in terms of U.S. dollars on the last business day prior to the change (December 29, 2000) was identical under both valuation baskets. The currencies in the basket as of April 30, 2002 and 2001 and their amounts were as follows:

    CurrencyAmount
    Euro0.426
    Japanese yen21.0
    Pound sterling0.0984
    U.S. dollar0.577

    As of April 30, 2002, one SDR was equal to 1.26771 U.S. dollars (one SDR was equal to 1.26579 U.S. dollars as of April 30, 2001).

    Allocations and Holdings

    At April 30, 2002 and 2001, IMF net cumulative allocations to participants totaled SDR 21.4 billion. Participants with holdings in excess of their allocations have established a net claim on the SDR Department, which is represented on the balance sheet as a liability. Participants with holdings below their allocations have used part of their allocations, which results in a net obligation to the SDR Department and is presented as an asset of the SDR Department. Participants’ net SDR positions as of April 30, 2002 and 2001 were as follows:

    20022001
    TotalBelow AllocationsAbove AllocationsTotalBelow AllocationAbove Allocations
    In millions of SDRs
    Cumulative allocations21,433.312,485.08,948.321,433.312,646.38,787.0
    Holding, of SDR., by participants19,626.43,847.715,778.718,556.43,866.014,690.4
    Net SDR positions1,806.98,637.3(6,830.4)2,876.98,780.3(5,903.4)

    A summary of SDR holdings is provided below:

    20022001
    In millions of SDRs
    Participants19,626.518,556.4
    General Resources Account1,484.92,436.7
    Prescribed holders430.3538.0
    21,541.721,531.1
    Less: Overdue charges receivable108.497.8
    Total holdings21,433.321,433.3

    Administrative Expenses

    The expenses of conducting the business of the SDR Department are paid by the IMF from the General Resources Account, which is reimbursed in SDRs by the SDR Department at the end of each financial year. For this purpose, the SDR Department levies an assessment on all participants in proportion to their net cumulative allocations.

    Interest and Charges

    Interest is paid on holdings of SDRs. Charges are levied on each participant’s cumulative allocations plus any allocations in excess of holdings of the participant and unpaid charges. Interest on SDR holdings is paid quarterly. Charges on net cumulative allocations are also collected quarterly. Interest and charges are levied at the same rate and are settled by crediting and debiting individual holdings accounts on the first day of the subsequent quarter. The SDR Department is required to pay interest to each holder, whether or not sufficient SDRs are received to meet the payment of interest. If sufficient SDRs are not received because charges are overdue, additional SDRs are temporarily created.

    The rate of interest on the SDR is determined by reference to a combined market interest rate, which is a weighted average of yields or rates on short-term instruments in the capital markets of the euro area, Japan, the United Kingdom, and the United States. The combined market interest rate used to determine the SDR interest rate is calculated each Friday, using the yields or rates of that day. The SDR interest rate, which is set equal to the combined market interest rate, enters into effect on the following Monday and applies through the following Sunday. The average SDR interest rate was 2.79 percent for the year ended April 30, 2002 (4.46 percent for the year ended April 30, 2001).

    Overdue Obligations

    An allowance for losses resulting from overdue SDR obligations would be created if and when the IMF were to expect a loss to be incurred; no losses have been incurred in the past, and it is the current expectation that no losses will be incurred in the future, and consequently no allowance account has been established.

    3. Overdue Assessments and Charges

    At April 30, 2002, assessments and charges amounting to SDR 108.9 million were overdue to the SDR Department (SDR 98.2 million at April 30, 2001). At April 30, 2002 and 2001, six members were six months or more overdue in meeting their financial obligations to the SDR Department.

    Assessments and charges due from members that are six months or more overdue