Executive Directors welcomed the inaugural report on the Evaluation of Prolonged Use of IMF Resources prepared by the Fund’s Independent Evaluation Office (IEO) which was established by the Fund in 2001.1 The report presents a candid, comprehensive, and broad-ranging analysis which raises key issues about the Fund’s approach to the prolonged use of resources by members, and makes a number of recommendations to address them. In addition the IEO report deals with several related aspects of the Fund’s core activities.