INDEX
A
Access policy, use of Fund resources
access limits, guidelines, 307–308, 308–12
balance of payments need, 308, 310
capital account crises, modifications to Supplemental Reserve Facility, 313–15, 319–23
exceptional circumstances, 308, 313–14, 331
exceptional circumstances, review, 323–27
limits, credit tranches and Extended Fund Facility, 307–308
post-conflict countries, 290
repurchases, 308–10
revolving character of Fund resources, 287, 309, 311
review, 318–23
Accounting by members
ownership of gold and currency subscriptions, 3
Accounts. See specific accounts by name
Administrative
Borrowed Resources Suspense
Framework Administered (Technical Assistance)
General Resources
Loan
Post-conflict emergency assistance to PRGF
Post-SCA-2 Administered
PRGF Trust Subsidy
Reserve
Special Contingent
Special Disbursement
Supplementary Financing Facility (SFF) Subsidy
Administrative account
balances, 698
reserve tranche position, 697
African Development Bank
communications concerning members’ arrears to the Fund, 674–75
exchange of documents with, 590
prescribed holder of SDRs, 633
African Development Fund, 633
Africa Regional Technical Assistance Centers Subaccount, 131
Andean Reserve Fund
prescribed holder of SDRs, 632
Annual Report (IMF), 155, 190, 217
Anti-money laundering
assessing a global standard and preparing ROSCs, proposals, 117–21
FATF 40+8 Recommendations, use of, 122
Financial Action Task Force (FATF), 117–21
Fund involvement, 116
methodology document, 116, 117–21
offshore financial center assessments, 113–16, 124
twelve-month pilot, program review, 122–26
Arab Monetary Fund
exchange of documents with, 590
prescribed holder of SDRs, 633
Architecture of international financial system, 32
Archives of the Fund
access policy, 544
attorney-client privilege, 543
Executive Board minutes, access, 544
Grievance Committee proceedings, 543
Arrears
settlement of disputes between members, 88–89
lending into arrears, 302–306
Arrears, member’s failure to provide foreign exchange for current international transactions. See Exchange restrictions
Arrears of a member to creditors other than Fund
extended arrangement, performance criterion, 279
first credit tranche, 298
Fund lending into nonsovereign arrears, 300–306
Fund lending into sovereign arrears, 300–306
Fund policies and procedures, 298–99, 299–300, 300–302
performance criteria, 298, 300–302
stand-by arrangement, performance criterion, 276
Arrears to the Fund. See Overdue financial obligations to the Fund
Article I, purposes of the Fund, 222, 463, 468
Article I(v), temporary availability of Fund’s general resources, 267
Article II, Section 2, membership, 20
Article III, Section 2, adjustment of quotas, 3
Article III, Section 2(a), 3
Article III, Section 3(a), 9
Article IV consultations. See also Consultation cycles; Enhanced surveillance; Exchange of documents; Staff reports; Surveillance
ad hoc consultations, 29, 30
annual, principle of, 28, 31–32, 36
Article VIII and XIV consultations, 28
Article VIII restrictions, 471
Article XIV restrictions, 471
collaborative efforts, 574
combined with program reviews, 284
conditionality discussion, 230–31
consultation cycles, changes, 59–61
core and noncore issues, 33–34
data provision, 61–65
document exchange with WTO, 587
early warning system models, 35, 36–37
enhanced surveillance, 83–86
euro area, 66, 67–68, 68–69
European Central Bank, observer status, 579–81
evaluation and review of related programs, 230–31
exchange rate policies, 35
Financial Sector Assessment Program (FSAP), 37, 93, 96, 97–98
governance issues, 69, 75, 77
interval between, 28–29
macroeconomic relevance test, 33
military expenditures, 80–82
multiple currency practices, 575
noncore issues, 33–34
program reviews, lapse of time, 284
Public Information Notices, release, 619–21
publication of Article IV staff reports, 34, 603, 604, 609
publication of background reports, 603, 604, 609–11
Recent Economic Developments reports, 31, 587, 591, 603, 604, 609
representation of European Central Bank, 579–81
staff reports, core and noncore issues, 33–34
staff reports, data quality, 35
staff reports, release to international and multilateral agencies, 588–90
standards and codes, 37
surveillance procedures, 28–30
three-month rule for completion, 65
use of Fund resources, 230
World Bank, collaboration with, 574
World Bank, observer status, 568
World Trade Organization, observer status, 587, 785
Article IV, Section 1, general obligations of members, 25, 28
Article IV, Section 2, notification of exchange arrangements, 22
Article IV, Section 3(a), surveillance over exchange rate policies, 25, 588
Article IV, Section 3(b), surveillance over exchange rate policies, 25, 588
Article V, Section 1, designation of fiscal agency, 148, 415, 448
Article V, Section 2(b), financial and technical services, 126, 127, 213, 219, 220
Article V, Section 3, conditions governing use of Fund’s general resources
application of Fund policies to purchases of currency borrowed by Fund, 363, 412
early repurchase guidelines, 363
General Arrangements to Borrow (GAB), 429
meaning of “consistent with the provisions of this Agreement,” 222
New Arrangements to Borrow (NAB), 445
Article V, Section 3(b)(ii), balance of payments need, 168
Article V, Section 3(b)(ii), meaning of “represents” that a member has a need to make purchases, 223
Article V, Section 3(b)(iii), waiver of limitation of 200 percent of quota
Compensatory Financing Facility, 335
emergency assistance, 285
Extended Fund Facility, 269
Supplemental Reserve Facility, 334
Article V, Section 3(d), operational budgets
assessment of strength of members’ balance of payments and gross reserve position for operational budgets, 350, 351, 357
selection of currencies in purchases, 351, 354
Article V, Section 3(f), transfers of SDRs, 353
Article V, Section 4, waiver of conditions governing use of Fund general resources, 346
Article V, Section 5, limitation on use of Fund’s resources, 236, 360
Article V, Section 6(b), transfers of SDRs by the Fund, 351, 357, 362
Article V, Section 6(c), sales of SDRs by the Fund, 362
Article V, Section 7, repurchases, 346, 445
Article V, Section 7(b), early repurchases
assessment of strength of members’ balance of payments and gross reserve position, 350, 363
Article V, Section 7(c), repurchases, 365
Article V, Section 7(d), repurchases, 346
Article V, Section 7(i), selection of currencies for repurchases, 351, 352, 357, 358, 367
Article V, Section 8, charges, 373
Article V, Section 8(a), charges, 375, 377
Article V, Section 8(b), charges, 333, 365, 372, 375, 377
Article V, Section 8(b)(ii), charges, 698
Article V, Section 8(c), charges, 372, 374, 377
Article V, Section 8(d), charges, 372
Article V, Section 8(e), charges, 372
Article V, Section 9(a), remuneration, 698
Article V, Section 11, maintenance of value, 385
Article V, Section 12(f), other operations and transactions
gold sales, 402, 405
gold sales proceeds, placement in Special Disbursement Account, 405
Article V, Section 12(f)(ii), Special Disbursement Account (SDA) resources for assistance to low-income developing members, 387
Article V, Section 12(h), investment of member’s currency held in SDA, 387
Article V, Section 12(j), adoption of regulations for administration of Structural Adjustment Facility, 388
Article VI, capital transfers
use of Fund resources for, 222
WTO, information on Fund decisions requesting a member to exercise controls to prevent a large or sustained outflow of capital, 780
Article VI, Section 1, use of Fund’s resources for capital transfers
freedom to adopt regulations on capital movements, 407
Supplemental Reserve Facility, 331
Article VI, Section 3, controls on capital transfers, 407
Article VII, Section 1, replenishment and scarce resources
borrowing by the Fund, 408, 427, 436
Article VII, Section 3(b), scarce currency, 462
Article VIII, general obligations of members
acceptance of obligations, 470
bilateral payments agreements, 275, 280
bilateralism, 463
consultations, 28, 568
consultations, World Bank observer, 568
payments restrictions, 87, 463, 468–69, 470
retention quotas, 466
settlement of disputes between members, 87
Article VIII, Section 2, avoidance of restrictions on current payments
acceptance of obligations under, 468, 469
Article VIII, Section 2(a)
restrictions on current payments and transfers, 462
undue delays as payments restrictions, 470
Article VIII, Section 2(b), unenforceability of exchange contracts, interpretation, 460–61
Article VIII, Section 3, avoidance of discriminatory currency practices
acceptance of obligations under, 468, 469
multiple currency practices, 24, 468, 469, 478, 479, 484, 485
Article VIII, Section 4, convertibility of foreign-held balances, acceptance of obligations under, 468, 469
Article VIII, Section 5, furnishing of information to the Fund
consideration of report by Managing Director, time periods, 488–89
declaration of censure, 489–90
members’ obligations, 486
procedures prior to report by Managing Director to Executive Directors, 487–88
Report by Managing Director, 588
sanctions, 490–91
strengthening effectiveness of, 62, 486–91
Article VIII, Section 7, obligation to collaborate regarding policies on reserve assets, 641
Article IX, Section 5, immunity of archives, 542
Article IX, Section 7, privilege for communications, interpretation, 547–48
Article X, relations with other international organizations, 749
Article XII, Section 3(b)(i), Executive Directors, appointed, interpretation, 593
Article XII, Section 3(c), additional appointed Executive Directors
balances held in administrative accounts, 698
interpretation, 593–94
Article XII, Section 3(f), appointed Executive Directors, interpretation, 593
Article XII, Section 4, Managing Director and staff, 602
Article XII, Section 7, publication of reports, 603
Article XII, Section 7(a), 753
Article XII, Section 8, communication of Fund views to members, 609
Article XIII, Section 2, depositories, 456
Article XIV, exchange restrictions under transitional arrangements
availment of transitional provisions, 469
bilateralism, 464
commitment to current account convertibility, 470
consultations, 28
consultations, World Bank, 568
multiple currency practices, 480
retention quotas, 465, 466
settlement of disputes between members, 87
Article XIV, Section 2, exchange restrictions
multiple currency practices, 478, 479, 480–81
payments restrictions, 461, 462
transitional arrangements, 461, 468–69
undue delays as payments restrictions, 471
Article XIV, Section 3, representation by the Fund, 479, 480, 481
meaning of “exceptional circumstances,” 623
Article XVII, Section 3, other holders of SDRs, 148, 219, 425, 632, 634, 635
Article XVIII, Section 1(a), principles and considerations governing SDR allocation and cancellation, 637, 639, 640, 646, 743
Article XVIII, Sections 1(a)and 1(b), 637
Article XVIII, Section 2(a), SDR allocation and cancellation, 638, 642
Article XVIII, Section 2(b), 638, 644
Article XVIII, Section 2(c), 638, 643, 644
Article XVIII, Section 2(d), 643
Article XVIII, Section 2(e), 644
Article XVIII, Section 4, decisions on SDR allocations and cancellations, 637, 646, 743
Article XVIII, Section 4(a), 637, 638, 639
Article XVIII, Section 4(b), 637, 638, 639, 743, 744, 745
Article XVIII, Section 4(c), 637, 639, 643, 743
Article XVIII, Section 4(c)(ii), 643, 745
Article XVIII, Section 4(d), 743
Article XIX, Section 2(c), SDR operations and transactions between participants
donations, 658
forward operations, 657–58
loans, 649
other holders, 629
pledges, 651–53
settlement of financial obligations, 648
swap operations, 655–56
transfers as security for the performance of financial obligations, 653–55
Article XIX, Section 4, limit on SDR Department participant’s obligation to provide currency, 413, 432, 446
Article XIX, Section 5, designation of participants to provide currency, 659
Article XIX, Section 5(a)(i), designation plans, 350, 662
Article XIX, Section 5(c), designation rules in SDR Department, 662
Article XIX, Section 6(b), reconstitution, 664
Article XIX, Section 7(a), calculation of exchange rates, 415, 447, 648, 649, 650, 651, 653, 655
Article XX, Section 1, interest paid on holdings of SDRs, 629
Article XX, Section 2, SDR Department interest and charges, 665
Article XX, Section 5, application against unpaid charges of SDRs acquired by participants after payment date, 665
Article XXI, (a)(i), administration of General Department and SDR Department, 744
Article XXII, general obligations of participants in SDR department, 641
Article XXIII, Section 1, suspension of operations and transactions in SDRs, 631
Article XXIV, 637
Article XXVI, remedial measures on overdue obligations, 667
Article XXVI, Section 2(b), 722, 725, 730
Article XXVI, Section 3, withdrawal from membership, 416, 432, 449
Article XXVII, Section l(a)(i), suspension of exchange transactions, 416, 433, 449
Article XXIX, interpretation
General Arrangements to Borrow, interpretation outside the purview of Article XXIV, 418
New Arrangements to Borrow, interpretation outside the purview of Article XXIV, 450
transferability of claims under Saudi Arabia’s Borrowing Agreement, 433
unenforceability of exchange contracts, 409
Article XXIX(a), interpretation
Appointment of Executive Director by a member having one of five largest quotas, Article XII, Section 3(b)(i) and 3(f), 593
authority of the Fund to use its resources, 222, 717
privilege for communications, Article IX, Section 7, 547–48
unenforceability of exchange contracts under Article VIII, Section 2(b), 460–61
Article XXX(c), definition of reserve tranche purchase
exclusion of purchases and holdings from BSFF, 697
exclusion of purchases and holdings from CFF, 335, 697
exclusion of purchases and holdings from emergency assistance, 285
exclusion of purchases and holdings from SRF, 333
exclusion of purchases and holdings from STF, 698
Article XXX(c)(ii), exclusion of purchases and holdings from BSFF, 697
Article XXX(c)(iii), exclusion of purchases and holdings in credit tranches or under extended arrangements, 698
Article XXX(f), freely usable currencies, 624, 699
Article XXXI, Section 1, entry into force of Articles of Agreement, 3
Asian Development Bank
communications concerning members’ arrears to the Fund, 675
exchange of documents with, 590
prescribed holder of SDRs, 633
Attribution, rule of
members indebted to Fund, 359
reduction in Fund’s holdings of currency, 370–71
Audit
external audit firm, 622
framework Administered Account, 130
Post-SCA-2 Administered Account, 221
PRGF Trust, 150–51
PRGF-HIPC Trust, 185–86, 190–91
safeguards for use of Fund resources, 239
Supplementary Financing Facility Subsidy Account, 709
Authorized signatories, 602
B
Balance of Payments Manual (5th Ed.), 497, 508, 520, 530, 531, 534
Balance of payments need
access policy, 308–309
Compensatory Financing Facility, 337
conditionality, 223
emergency assistance, natural disasters, 286
emergency assistance, post-conflict countries, 289
extended arrangements, 268
Extended Fund Facility, 268
Fund-supported programs, 225
lenders to ESAF Trust, need because of developments in reserves, 168
PRGF loans, 136, 137
protracted balance of payments problem, 136, 390–91
Supplemental Reserve Facility, 331–34
Balance of payments position
assessment of strength for purposes of designation plans, operational budgets and repurchases, 350–51
discrimination for balance of payments reasons, 463–64, 467
Bank for International Settlements (BIS)
investment by Fund of currencies held by Borrowed Resources Suspense Accounts, 457
investment by Fund of currencies received by SFF Subsidy Account, 711
prescribed holder of SDRs, 632
Bank-Fund collaboration
conditionality, 575–79
country programs, 575–79
financial systems, 569–75
IMF-World Bank Concordat, 556–68
observer status, generally, 568–69
World Bank observer status, 568
Bank of Central African States
prescribed holder of SDRs, 633
Bilateral payments arrangements
extended arrangement, 280
stand-by arrangement, 275
three-month settlement rule, temporary exemption, 464
Bilateralism and convertibility, 463–64
Board of Governors Resolutions
Composite Resolution, 719–22
Eleventh General Review of Quotas, 3, 10–12
SDR allocation, First Basic Period, 637–38
SDR allocation, Third Basic Period, 646–47
Borrowed Resources Suspense Accounts
establishment, 456
investment by the Fund of currencies held in, 457–58
Borrowing by the Fund. See also General Arrangements to Borrow (GAB); New Arrangements to Borrow (NAB)
guidelines, 458–59
BSFF. See Buffer Stock Financing Facility
Buffer Stock Financing Facility (BSFF)
elimination, 347–48
reserve tranche purchases, exclusion, 697
Burden sharing
disposition of net income
FY 2005, 381
implementation
in FY 2001, 378–80
in FY 2005, 381–83
income position
for FY 2005, 380–81
principles of, 378, 381
rate of charge
determination of, 378, 382
for FY 2005, 380
Special Contingent Account, amounts placed to
for FY 2005, 382–83
surcharges on purchases under SRF, credit tranches, and extended Fund facility, 381
By-Laws
Section 13, vote without meeting, 11, 16
Section 20, audits, 11, 130, 151, 186, 190, 217, 221, 622, 709
Section 22, compulsory withdrawal, 676, 679, 680
C
Capital account crises
access policy, 312–18, 318–22
exceptional access policy, Supplemental Reserve Facility, 319–23, 331–34
exceptional access policy, 2004 review, 323–27
Capital flows
action to limit disequilibrating flows, Composite Resolution, 736
Eleventh General Review of Quotas, 6, 11
Supplemental Reserve Facility, 331
surveillance, 27, 35, 40
WTO, information on Fund decisions requesting a member to exercise capital controls, 784
Capital transfers
controls by members, 407
multiple currency practices applicable solely to, 485
payments arrears, 299–300
use of Fund’s resources for, 406, 485
Caribbean Development Bank
exchange of documents with, 590
CCFF. See Compensatory Financing Facility
CCLs. See Contingent Credit Lines
Censure, 675–76
draft declaration, 680
Central Bank of West African States (BCEAO)
prescribed holder of SDRs, 633
Cereal import costs
compensatory financing of fluctuations in, 335, 336, 341–44
repurchase, 365
CFF and CCFF. See Compensatory Financing Facility
CFT. See Combating the Financing of Terrorism,
Charges. See also Burden sharing
accounting for charges from members with overdue obligations, 373
accrued charges, 373
administrative account balances, 698
extended arrangements, 281
Extended Fund Facility, 270
future changes in charges, 372
interest on Trust Fund loans. See Interest
media of payment in General Resources Account, 373
payment by nonparticipant in the SDR Department, 373
payment of net charges and assessment in the SDR Department for FY ended April 30, 1982, 665–66
setoff in connection with a retroactive reduction of charges due by members in arrears, 377
special charges on overdue financial obligations to the Fund, 374–76, 377, 378
special charges system, 2004 review, 376
stand-by arrangements, 276
Supplementary Financing Facility, subsidy, 706
Supplemental Reserve Facility, 333–34
surcharge on purchases in credit tranches and under EFF, 372
use of Fund resources. See Burden sharing
value date for payment of special charges, 376
waiver of special charges, 375
Classified documents, 543
Code of Good Practices on Transparency in Monetary and Financial Policies, 241
Collateral
collateral guarantees on debt, international reserves template, 510
Combating the financing of terrorism, 102, 113, 116, 117–21, 122, 122–26
Committee on Reform of the International Monetary System Composite Resolution, 719–39
Communications, privilege for interpretation of Article IX, Section 7, 547–48
Compensatory Financing Facility (CFF; previously Compensatory and Contingency Financing Facility, CCFF)
access limits, 336–37
cereal import costs, 335, 336, 341–44
decision, 335–45
emergency assistance for natural disasters and, 287
estimated data, 337
export fluctuations, 337–40
extended arrangements and, 283, 336
general provisions, 335–36
overcompensation, 340, 344, 345–46
phasing, 337–38
PRGF Trust and, 136
receipts from services, 339
repurchase expectation, 365–66
repurchase of overcompensation, legal interpretation, 345–46
repurchases, 365
reserve tranche purchases, exclusion, 335, 697
stand-by arrangements and, 275, 336
Compulsory withdrawal, 679, 680, 681, 682, 683, 687
Concessional external debt, OECD definition, 262, 263–64
Conditionality. See also Side letters
Bank-Fund collaboration, 575–79
benchmarks, 227, 228, 229, 230, 241
Compensatory Financing Facility, 337, 340
consistency with WTO agreements, 584–85
consultation clauses, 227
cross-conditionality between Fund programs and WTO arrangements, avoidance, 585
emergency assistance, natural disasters, 287–88
emergency assistance, post-conflict countries, 290
emergency financing mechanism, 251
financing assurances reviews, 229
first credit tranche, 254
floating tranches, 230
governance issues, 54
guidelines, 223–31
indicative targets, 227, 228, 229
individual circumstances of members, 224–25
letters of intent, 227, 232
modalities, 227–30
outcomes-based, 226
ownership, 224, 230, 254, 258, 575, 576, 579
performance criteria, 228
performance criteria and phasing, relationship, 258–60
performance criteria with respect to external debt, change in coverage, 261–65
performance criteria with respect to foreign borrowing, 265–66
performance criteria with respect to foreign borrowing, discount rate, 261–62, 263, 265
PRGF arrangements, 255–56
principles, 223–26
prior actions, 228, 261–62
program design, 224–25
program review, 228–29, 230–31
stand-by arrangement, normal access to credit tranches, 253–54
streamlining, 254, 255, 257
structural benchmarks, 227, 228, 229, 230
Supplemental Reserve Facility, 334
test dates, even distribution, 259
uniformity of treatment, 224–25, 261–62
upper credit tranche stand-by arrangements, 310
waiver, adopting measures prior to granting of, 228
waiver, nonobservance of performance criteria, 230
waiver of applicability of performance criteria, 230
Confidentiality
archives, 543
exchange of documents with other international agencies, 543
FSAP Confidentiality Protocol, 105–12
side letters, 231–34
Consultation clause
extended arrangements, 282
stand-by arrangements, 277
Consultation cycles, Article IV. See also Article IV consultations, Enhanced surveillance; Surveillance
annual in principle, 28, 31, 36
changes in, 59–61
flexibility in, 31
interval between Article IV consultations, 28–29
Consultations other than under Article IV
acceptance of obligations of Article VIII, Sections 2, 3, and 4, 469
Article VIII restrictions, 28, 463–64, 468–69, 568
Article XIV restrictions, 28, 463–64, 469, 568
bilateral arrangements, 463–64
competitive depreciations, 473
conditionality, consultation clauses, 227
GATT Contracting Parties, 552–56
multiple currency practices, 474
prescribed holders of SDRs, 630
PRGF, consultation with creditors, 161
sale of members’ currencies, 354–56, 358–59
SDR allocation, 639, 744
trade and payments restrictions, escalation, 451
United Nations, 751, 753
World Trade Organization, 582–83, 584–85, 586, 784
Contingent Credit Lines (CCLs),
extended arrangements and, 275, 280
stand-by arrangements and, 275, 280
termination, 348
Convertibility
acceptance of obligations of Article VIII, Sections 2, 3, and 4, 468, 469
bilateralism, 463–64
currency, 465, 467
current account of the balance of payments, 467, 470
retention quotas, 465
Cross-conditionality, avoidance, 566
Currencies
attribution of reductions of Fund’s holdings, 370–71
charges on Fund’s holdings in excess of quota, 372
freely usable, 134, 140, 149, 214, 429, 624, 631, 699, 708
General Resources Account, 350–53, 357, 373, 384–86
guidelines for operational budget allocation of currencies, review, 356–57
harmonization, balanced positions in the Fund, 352
maintenance of value, 384–86
presently needed for making payments, 223
PRGF Trust loans, 140
repurchases, 366–67
reserve asset payments, 10, 19, 20–22
sale of currencies of members with outstanding purchases, 354–56, 358–59
SDR valuation basket, 624–26, 626–27
specification by the Fund, 351–53, 357–58
subscription to the Fund, ownership, 19
use in operational budgets, 351–53, 356–57
Currency stabilization funds, elimination, 348
Current international transactions (current account transactions)
bilateralism, 463
multiple currency practices, 475–76, 479
payments arrears, 299–300
restrictions involving WTO members, 586, 784
restrictions on payments and transfers, 26–27, 463, 468
undue delays in availability or transfers use of foreign exchange, 407, 471
use of Fund resources, 222
D
Data Dissemination Standard. See Special Data Dissemination Standard (SDDS) and General Data Dissemination System (GDDS)
Data provision to the Fund for surveillance, 61–65
Debt, external. See External debt
Debt operations
“condition precedent” clauses, 306
extended arrangements and, 280
management of the debt situation, 306
“mandatory prepayment” clauses, 306
stand-by arrangements and, 275
Debt strategy
payments of arrears to creditors, 299–300, 471–72
Declaration of censure, 675–76
draft declaration, 680
Declaration of ineligibility, 674–75, 681, 683
publicity, 617, 692
termination, 691–92
timing, 686
Declaration of noncooperation, 675–76, 682–83
draft declaration, 680
publicity upon withdrawal, 692
termination, 692
timing, 686
De-escalation of remedial measures, 693–95
Default, sovereign, 249
Designation, SDR Department
acceptance limit, 661
assessment of strength of balance of payments and governance position, 350–51
rules for designation review, 659–62
rules for designation—revision, 662–63
Development Committee (Joint Ministerial Committee on the Transfer of Real Resources to Developing Countries)
changes in the organization of work and structure of the Secretariat function, 741–42
composition, 729–30
establishment, 728–34
Executive Directors’ participation in meetings, 731
HIPC Initiative, 172, 199
Managing Director’s participation in meetings, 731
procedures, 732–34
rules of procedure, 740–41
terms of reference, 726
WTO observer, 587
Discrimination
balance of payments reasons, 467–68
disputes between members, comparable treatment of creditors, 87–88
multiple currency practices, 482
nondiscriminatory treatment of members, use of general resources, 224–25
Disputes between members
comparable treatment principle, 87–88
role of the Fund, 89, 307
Dissemination Standards Bulletin Board (DSBB). See also Special Data Dissemination Standard
certification requirement, 503
establishment, 501
removal from, 502–503
Document exchange. See Exchange of documents with other international agencies
DSBB. See Dissemination Standards Bulletin Board
E
Early repurchase expectations, Supplemental Reserve Facility, 333
Early repurchases
emergency financing mechanism, 253
guidelines, 363–65
member’s balance of payments and gross reserve position, 350–51
Early warning system models, 35, 36
East African Development Bank
prescribed holder of SDRs, 632
East Caribbean Currency Authority
prescribed holder of SDRs, 632
termination of status as prescribed holder of SDRs, 633
Eastern Caribbean Central Bank
prescribed holder of SDRs, 632
EFF. See Extended Fund Facility
EFM. See Emergency financing mechanism
Eleventh General Review of Quotas, increase in quotas of Fund members, 3
Emergency assistance
conversion to special policy, 284–85
natural disasters, 284–85, 285–86
post-conflict countries, 178, 288–91, 291–96
PRGF-HIPC Trust eligibility, 178–79
PRGF-HIPC Trust qualification, 179–80
repurchases, 365
Emergency financing mechanism, 249–53
conditions for activation, 251
early repurchase, 253
Enhanced Structural Adjustment Facility (ESAF) Trust (transformed into Poverty Reduction and Growth Facility (PRGF) Trust). See also PRGF Trust
access limits, 160, 166
access to general resources by ESAF-qualified members, 160
balance of payments need, 168
benchmarks, 165–66
blend of general and SAF/ESAF resources, 690
borrowing for Loan Account, consultation with creditors, 161
commitment amount not normally reduced, 167
commitment period, 162–63, 395
disbursement of loans, 167
eligible members, 162–63, 396–97
emergency assistance, relation to, 289
ESAF successor—initiation of operations, 162
establishment, 162–63, 398–99
gold, use of, 687, 690
gold pledge, 687, 690
interest rate on Trust loans, 160
legal documentation, 168
loans to Trust as member’s official reserves, 168
maturity of loans, 163
objectives of programs, 165
off-market gold sales, 746
operational arrangements, 162–67
overdue financial obligations to Fund, 670
performance criteria, 159, 166
phasing of disbursements, 167
policy framework papers, 165. See also Poverty Reduction Strategy Papers
prior actions, 159, 166
rescheduling not available, 164
review, 165, 169
review of arrangement, mid-year, 165, 166, 167
rights accumulation program and, 689
Special Disbursement Account, 163
Structural Adjustment Facility assistance in conjunction with, 393–94, 401–402
Subsidy account, 163, 164, 185
transfer and retransfer of resources from and to Special Disbursement Account, 399–401
transfer to the ESAF-HIPC Trust, 404
transformation to PRGF Trust, 157–58
use of SDRs, 635
Enhanced surveillance
annual and mid-year consultation reports, 83
Article IV consultations, 84, 85
Article VIII obligations, 470
criteria and procedures, 90–92
Executive Board involvement, 92
Fund’s role in assisting members with creditors, 89–92
midterm review, 83–84
quantified economic policy program, 85
revised procedures, 84–86
staff reports, transmittal by member to creditors, 83, 85–86, 92
Enlarged access
criteria for use of Fund resources, validity, 308–12
repurchases, 309
ESAF-HIPC Trust. See Trust for Special ESAF Operations for the Heavily Indebted Poor Countries and Interim ESAF Subsidy Operations
ESAF Trust. See Enhanced Structural Adjustment Facility Trust
Euro
freely usable currency, 699
rates for computation and maintenance of value, 385
reference rates, European System of Central Banks, 627
weight in SDR valuation basket, 625, 626
Euro area members
surveillance over monetary and exchange rate policies, 579–81
European Bank for Reconstruction and Development (EBRD)
exchange of documents with, 590, 591
European Central Bank (ECB)
Article IV consultations, 68–69, 580
euro reference rates, 627
observer status, 579–80
observer status, review, 581
European Commission (EC)
Article IV consultations, 68–69
exchange of documents with, 590, 591
European Investment Bank (EIB)
exchange of documents with, 590
European System of Central Banks, 627
Exceptional Access Policy, 312
Exchange arrangements. See also Exchange rates; Multiple currency practices
exchange taxes and subsidies, notification, 24
flexible, notification of significant decision, 23
intervention, 24, 26, 27
multiple currency practices, prior Fund approval, 24
notification of, 23
Exchange contracts
unenforceability, Fund’s interpretation of Article VIII, Section 2(b), 460–61
Exchange controls, See also Exchange restrictions
exchange contracts contrary to, 460–61
nonsovereign arrears stemming from imposition, 300
Exchange of documents with other international agencies
ad hoc requests, 591
agencies meeting criteria for exchange, 590
Article IV consultation staff reports, 587, 592
changes in procedures, 591
criteria for access, 589–90
Recent Economic Developments reports, 587, 592
technical assistance reports, 588
use of Fund resources staff papers, 588, 592
Exchange rate policies. See also Exchange arrangements
euro area, 66–68, 579–80
surveillance over, 24–27, 29–30, 31–32, 34–35, 41, 51–52
surveillance over, review, 59
Exchange rates. See also Exchange arrangements; Exchange rate policies; Multiple currency practices
coherence in global policymaking, 583
computations and maintenance of value, 384–86
computations and maintenance of value—value date, 384
fixed, 476
floating guidelines, 736
fluctuating, 23, 477–78
General Arrangements to Borrow, 415
New Arrangements to Borrow, 447–48
unification in multiple rate systems, 482
Exchange restrictions. See also Capital transfers; Multiple currency practices
approval by Fund, 472, 528
Article VIII, Sections 2, 3, and 4 obligations, 468–69
avoidance of escalation, 473
balance of payments reasons, 469, 470
bilateralism, 463–64
consultations with Fund, 468–69, 473
discrimination for balance of payments reasons, 467–68
emergency assistance, 287–88
Fund representation “in exceptional circumstances” under Article XIV, Section 3, 479, 623
guiding principle on whether a measure is an exchange restriction, 468
nonbalance of payments reasons, 469
payments arrears to creditors, 298
performance criteria, extended arrangement, 279
performance criteria, stand-by arrangement, 273–74
retention quotas, 465–67
security reasons, 462–64
surveillance, 26–27
transitional arrangements under Article XIV, 466, 469
undue delays, 407, 470
World Trade Organization, information on Fund approval, 784
Exchange subsidies, 24
Exchange taxes, 24, 477, 481
Executive Board
code of conduct, 594–600
cooperation with other entities, date of next review, 546
lapse of time completion of reviews under Fund arrangements, 283
meetings, procedural guidelines, 600–601
notification of exchange arrangements, 23
procedural guidelines, 600–601
report on Eleventh General Review of Quotas, 3–15
side letters procedures, 231–34
surveillance over exchange rates, 24, 26, 28, 29, 30
Executive Directors
additional appointed, meaning of “the preceding two years” in Article XII, Section 3(c), 594
appointment by members having five largest quotas, Article XII, Sections 3(b)(i) and 3(f), 593
appointment of two additional directors, Article XII, Section 3(c), 593–94
Development Committee meetings participation, 745
IMFC meetings participation, 725
procedural guidelines, 600–601
voting power, effect of adjustment of quota, 594
Export shortfalls, compensatory financing. See Compensatory Financing Facility
Extended arrangements. See also Access policy; use of Fund resources; Extended Fund Facility
applicable situations, 267
benchmarks, 261
charges, 270, 281
Compensatory Financing Facility, 280
Consultation clauses, 281–82
Contingent Credit Lines, 280
debt and debt-service reduction, 280
emergency assistance and, 290
exclusion of reserve tranche purchase, 697
form, standard, 277–82
Guidelines on Corrective Action, 236, 244, 280
ineligibility, 281, 667
lapse of time completion of reviews, 282–84
misreporting and noncomplying purchases, 235–37, 237, 238
noncomplying purchases, 280
overdue financial obligations to the Fund, 280, 667, 668
performance criteria, form, 278–79
performance criteria and phasing, guidelines, 258–60
period of arrangement, extension, 269
periods not exceeding three years to four years, 269
phasing, 258–60, 270, 277–78
repayment expectation under PRGF Trust, 281
repayment obligation under PRGF Trust, 280
repurchase expectation, 270–71, 281
repurchases, 270, 271, 281
review, completion of, 282
stand-by arrangement policies applicable, 270
Supplemental Reserve Facility and, 280, 332
suspension of transactions, 280
test dates for performance criteria, 259
Extended Fund Facility (EFF). See also Extended arrangements
applicability of policies on stand-by arrangements, 270
establishment, 267–71
review of access policy and limits, 307–308
situations to which facility could apply, 267
External Audit Committee, 622
External audit of Fund financial statements, 621–22
External debt
management of debt situation, 306–307
surveillance, 27, 40
External debt performance criteria
concessionality, definition, 261–62, 265–66
coverage, 261–65
extended arrangement, 279
external debt, definition, 261–65
leases, 264–65
loans, 264
stand-by arrangement, 274
suppliers’ credits, 264
F
FATF. See Financial Action Task Force
Federal Reserve Bank of New York, 627
Financial Action Task Force (FATF)
endorsement of methodology, 122
40+8 Recommendations, 117
Financial Sector Assessment Program (FSAP)
anti-money laundering, 102–103, 116
Article IV consultations, 93, 94, 96, 98, 101–105
confidentiality, 97, 98, 104, 105
Confidentiality Protocol, 105–12
coverage and frequency, 95–96
Financial System Stability Assessments (FSSAs), 93, 94
offshore financial centers (OFCs), 114
publication of FSAP reports not authorized, 97, 104–105
publication of FSSA reports endorsed, 98, 105
Reports on Observance of Standards and Codes (ROSCs), 94
review, 99
standards and codes, 94–95
stress tests, 94
surveillance, 94, 96, 101, 103
World Bank, collaboration with, 94, 95, 105
First credit tranche purchase
elimination of payments arrears, 298
liberal Fund attitude, 254
reasonable efforts test, 254, 298–99
First credit tranche stand-by arrangement
phasing and performance clauses omitted, 253–54
Fiscal agency
safeguards on use of Fund resources when fiscal agent not central bank, 240
transfer of claims, PRGF Trust, 148
Foreign borrowing. See External debt
Forms
draft declaration on censure or noncooperation, 680
draft first letter to all Governors regarding a member’s overdue financial obligations to the Fund, 677–78
draft second letter to all Governors regarding a member’s overdue financial obligations to the Fund, 678–79
extended arrangement, 277–82
stand-by arrangement, 272–77
Framework Administered Account for Technical Assistance Activities
adoption of Instrument to establish, 127
Africa Regional Technical Assistance Centers Subaccount, 131
Instrument to establish, 126–31
investments of resources, 129
Pacific Financial Technical Assistance Centre Subaccount, 131
Freely usable currencies (euro, Japanese yen, pound sterling, U.S. dollar), 134, 140, 149, 214, 429, 631, 703
FSAP. See Financial Sector Assessment Program
Fund-Bank collaboration, attendance at Fund Board Meetings, 598–69
Furnishing of information to the Fund, 235, 486–92
G
GAB. See General Arrangements to Borrow
GATT. See General Agreement on Tariffs and Trade
General Agreement on Tariffs and Trade (GATT). See also World Trade Organization (WTO)
arrangement for consultation and cooperation with the Contracting Parties, 552–56
Fund collaboration with, 581–88, 736
import restrictions for balance of payments reasons, 470
Voluntary Declaration on Trade and Other Current Account Measures, 736
General Arrangements to Borrow (GAB), 408–23
associated borrowing arrangements, 452
borrowing agreement with Saudi Arabia, 427–35
borrowing agreement with Saudi Arabia—renewal, 434–35
borrowing by the Fund, guidelines, 458–59
Eleventh General Review of Quotas, 7
emergency financing mechanism, 249
interest, 420
letter from France’s Minister of Finance to U.S. Secretary of the Treasury, 421–24
participants and amounts of credit, 419–20
quotas, Eleventh General Review, 730
repayment by the Fund, 413–15
sales of currencies of members indebted to Fund, 358–59
Saudi Arabia, renewal of borrowing agreement, 434
transferability of claims, 415, 424–25
transferability of claims under Saudi Arabia’s borrowing agreement, 425–27
use of credit arrangements for nonparticipants, 418
General Data Dissemination System (GDDS)
coverage, 517–27
participation, 541–42
periodicity, 527–28
phased approach, 515
purposes, 514–15
timeliness, 528
General Resources Account (GRA)
adjustment of Fund holdings of members’ currency, 384–85
designation, assessment of strength of member’s balance of payments and gross reserve position, 350–51
gold held, sale, 403
maintenance of value, 384–85
media of payment in, 373
misreporting and noncomplying purchases, 235–37
overdue charges, 375
rates for computation and maintenance of value, 484–85
repayment expectation under PRGF Trust, failure to meet, 157
repurchase expectation, failure to meet, 244
rights approach, 229
rules, applicability to PRGF Trust administration, 78
sale of currencies at the request of members with outstanding purchases, 354–55, 358–59
sale of SDRs by the Fund for payment for increase in quota, 362
special charge on overdue charges, 375
specification of currencies by the Fund, 351–53, 356–57, 357–59
Subsidy Account, reimbursement of administrative expenses, 709
transfers of SDRs instead of currencies under Article V, Section 3(f), 353
GDDS. See General Data Dissemination System
Gold
designation of SDRs, 660
ESAF-HIPC Trust, sales to benefit, 746
gold pledge for use of ESAF Trust resources, 687, 690
gold pledge for use of PRGF Trust resources under rights approach, modalities, 402–404
harmonization of excess holdings of SDRs, 660
off-market sales, 405
off-market transactions, use of investment income, 405
off-market transactions by Fund, Resolution, 746
ownership of gold and currency for subscriptions, 4
payment for repurchases, 366, 367, 405
profits, final direct distribution for developing members through Trust Fund, 701
Special Disbursement Account, use of proceeds of off-market sales, 746
use of investment income on proceeds from off-market gold transactions, 405
Governance issues
Article IV consultations, 75, 77
coordination with bilateral donors and multilateral agencies, 57–59
corruption, 70, 71, 73, 74
HIPC Initiative, 200
identification of problems, 77–78
macroeconomic impact test for Fund involvement, 70, 73, 74
policy advice, 70, 72
role of the Fund, 69–80
technical assistance, 70, 71, 72, 77
transparency, 70, 72, 74
use of Fund resources, 75–77
GRA. See General Resources Account
Grievance Committee, archives on, 543
Gross reserve position
assessment for purposes of designation plans, operational budgets, and early repurchases, 351–53, 357
Guidelines
access limits policy, 307–12
allocation of currencies, operational budget, 356–57
borrowing by the Fund, 459
conditionality, 223–31, 253–54
corrective action, 136, 152, 176, 235–37, 244
corrective action, as referenced in stand-by arrangement form, 275
corrective action, as referenced in extended arrangement form, 280
designation plans, 350–51
early repurchases, guidelines, 363–56, 371
emergency assistance, natural disasters, 284–85, 285–88
emergency assistance, post-conflict, 284–85, 288–291, 291–96
Fund staff collaboration with the WTO, 581–89
Fund support for currency stabilization funds, 137
governance issues, 69–80
misreporting and noncomplying purchases, 235–37
operational budgets, 350–51
payment of reserve assets for subscription, 19–22
performance criteria and phasing, relationship, 258–60
performance criteria with respect to external debt, 258
performance criteria with respect to foreign borrowing—discount rate for assessing concessionality, 265–66
SDR valuation basket, calculation of currency amounts, 624–26, 626–27
SDR valuation basket, conversion into euro of deutsche mark and French franc, 627–28
selection of currencies by the Fund, 351–53, 354–55, 356–57, 357–59
H
HIPC Initiative. See Trust for Special ESAF Operations for the Heavily Indebted Poor Countries and Interim ESAF Subsidy Operations (ESAF-HIPC Trust); Trust for Special PRGF Operations for the Heavily Indebted Poor Countries and Interim PRGF Subsidy Operations (PRGF-HIPC Trust)
Hong Kong Monetary Authority (HKMA), 437–38, 453
I
IMFC. See International Monetary and Financial Committee
Immunities and Privileges of Specialized Agencies, United Nations Convention, 756–78
Immunity of archives, 543
Import restrictions for balance of payments reasons
extended arrangements, 280
GATT, 298
stand-by arrangements, 275
Ineligibility to use Fund resources
declaration of ineligibility, 490, 674, 675, 680, 681–87, 692
extended arrangements, 280, 667
limitation and ineligibility under Article V, Section 5, 360
publicity, 617, 692
stand-by arrangements, 275, 667
Inter-American Development Bank (IDB)
communication regarding members’ arrears to the Fund, 675
exchange of documents with, 590
Interest
means of payment under Trust Fund, 700
PRGF-HIPC Trust, interest-free loans, 184
PRGF loans, 140
Interim Committee. See also International Monetary and Financial Committee
composition, 721–22
establishment, 720–24
governance, 239
International Monetary and Financial Committee, transformation of Interim Committee into, 724–28
participation of Executive Directors in meetings, 721
participation of Managing Director in meetings, 722
procedures, 723–24
rules of procedures, 739–40
safeguards for use of Fund resources, 239
terms of reference, 722–23
International agencies. See also specific international agencies exchange of documents with, 588–89
International Bank for Reconstruction and Development (IBRD). See World Bank
International Court of Justice, 752, 768
International Development Association (IDA)
HIPC Initiative, 200, 202
prescribed holder of SDRs, 633
International Financial Statistics (IFS), 64
International Fund for Agricultural Development (IFAD)
prescribed holder of SDRs, 633
International Monetary and Financial Committee (IMFC, formerly Interim Committee)
participation of Executive Directors in meetings, 725
participation of Managing Director in meetings, 725
procedures, 727
terms of reference, 726
transformation of Interim Committee into IMFC, 724–28
International organizations. See also specific international organizations
transmittal of Fund documents, 588–89
Interpretation
Article VI, use of Fund resources for capital transfers, 222
Article VIII, Section 2(b), unenforceability of exchange contracts, 501–502
Article IX, Section 7, privilege for communications, 547–48
Article XII, Sections 3(b)(i) and 3(f), appointment of directors by members having one of five largest quotas, 593
Article XII, Section 3(c), appointment of two additional directors, 593–94
Article XIV, Section 3, Fund representation in exceptional circumstances on withdrawal of Article XIV, Section 3 restrictions, 623
Articles of Agreement, use of Fund resources, 222
Investigation of Fund, cooperation procedures, 544–46
Investigation of Fund activities, cooperation procedures, date of next review, 546
Islamic Development Bank (IsDB)
exchange of documents with, 590
prescribed holder of SDRs, 633
J
Japanese yen
freely usable currency, 699
weight in SDR valuation basket, 625
Joint Ministerial Committee on the Transfer of Real Resources to Developing Countries. See Development Committee
Joint Staff Assessments, 203, 211
L
Lapse of time procedure, reviews under Fund arrangements, 282–84
Leases, definition of external debt, 261, 264–65
Lending into arrears, 302–306
Letters of intent
deletion from documents released to aid agencies, 592
publication, 603, 604, 610
side letters, 231–34
Limits
access to credit tranches—review, 307–308
access to Extended Fund Facility—review, 307, 308
Loan Account, PRGF Trust, 142, 144, 148
M
Maintenance of value
overdue adjustments, 670
rates for computations, 384–86
Managing Director
authorized signatories, 602
consultation by member before requesting an extended arrangement, 268
consultation with creditors for additional borrowing for PRGF Trust Loan Account, 161
consultation with member on changes in exchange rate policies, 24, 29
consultation with member with outstanding purchases on sale of currency, 354, 358–59
Development Committee, participation in meetings of, 731
General Arrangements to Borrow, proposals for calls, 411
International Monetary and Financial Committee, participation in meetings of, 725
nondiscriminatory treatment of members, 224–25
procedures for addressing overdue financial obligations, 152–53, 154–56
SDR allocation, proposals for
first basic period, 637
third basic period, 638
fourth basic period, report of Managing Director on, 743–45
use of Fund resources, recommendation regarding approval, 225
Memoranda of economic and financial policies, publication, 603, 604, 610
Military expenditure and the role of the Fund
Article IV consultations, 81, 82
performance criteria, 82
surveillance, 80–82
Misreporting and noncomplying disbursements, PRGF Trust
condition, nonobservance of, 152
corrective action, 140, 154
early repayment, 153
performance criteria, accuracy of information, 159
prior action, accuracy of information, 159
publication policy, 617
repayment expectation, 153
safeguards for use of Fund resources, 238–43
waiver of applicability or for nonobservance of performance criteria, 153, 159
waiver of early repayment, 153
Misreporting and noncomplying purchases, General Resources Account
corrective action, 235–37
performance criteria or other conditions, accuracy of information, 238, 243–44
prior actions, accuracy of information, 237
publication of cases, 617–18
safeguards for use of Fund resources, 238–43
waivers, 236, 270
Moral hazard, 249, 331
Multi-year rescheduling arrangements (MYRAs)
enhanced surveillance and, 90, 91
Multiple currency practices
approval, 24, 482
approval criteria, when imposed for balance of payments reasons, 469, 484
approval criteria, when imposed for nonbalance of payments reasons, 469, 484
Article IV consultations, 485
balance of payments reasons, 476, 484
capital transactions, 485
consultation with Fund prior to changes, 475, 476, 477
discrimination, 484
exchange taxes, 481
jurisdiction of the Fund, 478
nonbalance of payments reasons, 476, 485
official action, 483, 484
policy in 1947, 474–81
policy in 1957, 481–83
policy in 1998, 483–85
simplification of complex rate systems, 482–83
spread, 483
statement to members transmitting Fund’s decisions, 474–75
taxes on exchange drafts, 477
unification of exchange rates as basic Fund objective, 482
MYRAs. See Multi-year rescheduling arrangements
N
Natural disasters, emergency assistance, 284–85, 285–88
Need. See Balance of payments need
Net income. See Burden sharing
New Arrangements to Borrow (NAB), 436–53
credit arrangements, 438
Eleventh General Review of Quotas, 7
entry into force, 439
Hong Kong Monetary Authority, 437–48, 452
meetings of participants, 453–54
nonparticipants, 440–41
participants, 440, 452–53
relationship with the GAB and associated borrowing arrangements, 451–52
transferability of claims, 448, 455–56
Noncooperation draft declaration, 680
Nondiscriminatory treatment of members
Paris Club, 88
Use of Fund resources, 224–25
Nordic Investment Bank
prescribed holder of SDRs, 633
O
Observer status in the Fund
European Central Bank, 579–81, 581
World Bank, 568, 568–70
World Trade Organization, 587, 785
Observer status of the Fund
World Bank, 568
World Trade Organization, 785–86
OECD. See Organization for Economic Cooperation and Development
Official clearing and payments arrangements. See also Bilateralism and convertibility; Bilateral payments arrangements
temporary exemption from three-month settlement rule, 464
Offshore financial centers (OFCs)
assessment program, 113–16
inclusion in FSAP reports, 97
publication of reports, 115
separate from FSAP, 114
Operational budgets
assessment of strength of member’s balance of payments and gross reserve position, 350–51
guidelines for operational budget allocation of currencies, review, 356–57
specification of currencies by the Fund, 351–53, 356–57, 357–58
transfers of SDRs under Article V, Section 3(f), 353
Organization for Economic Cooperation and Development (OECD)
concessional external loans, definition, 262, 266
exchange of documents with, 591
Overdue financial obligations to the Fund. See also Rights accumulation programs; Rights approach
accounting for charges, 373–74
Annual Report (IMF), 674
complaint by Managing Director, 673
compulsory withdrawal, 675, 676, 681, 682, 683
declaration of censure, 675, 680
declaration of ineligibility, 674–75, 680, 681, 682, 683, 692
declaration of noncooperation, 675–76, 680, 682, 692
de-escalation of remedial measures, 693–95
draft first letter to all Governors, 677–78
draft second letter to all Governors, 678–79
Eleventh General Review of Quotas, 732
ESAF, no access, 669–70
extended arrangements and, 280, 667
Ninth General Review of Quotas, 674, 684
overdue maintenance of value adjustments, 670
preferred creditor status of Fund, 194, 671, 680, 683
prevention/deterrence measures—strengthened timetable of procedures, 685–87
PRGF arrangement, nonapproval, 136–37
procedures for dealing with members, 670–80
publication of missed repurchase expectation, 617
requests for the use of Fund resources under a stand-by or extended arrangement, management will not submit, 668
review period, 668–69
SAF, no access, 669–70
setoff in connection with retroactive reduction of charges, 377
special charges, 374–76
stand-by arrangements and, 275, 667
strengthened cooperative strategy, 681–87, 690–91, 691–92
suspension of voting rights, 684–85, 686
technical assistance suspension, 676
Overdue payments to the Fund. See Overdue financial obligations to the Fund
Overseas Economic Cooperation Fund (OECF) of Japan, 265
P
Pacific Financial Technical Assistance Centre Subaccount, 131
Paris Club
Agreed Minute, 88
debt rescheduling and Fund arrangements or programs, 684
debtors’ negotiations with, 88
rescheduling discussions, 591
rescheduling in absence of Fund arrangement, 685
rescheduling operations, Fund opposition to matching, 295
settlement of disputes between Fund members and Fund neutrality, 89
Payments arrears, capital transfers. See Capital transfers
Payments arrears, member’s failure to provide foreign exchange for current international transactions. See Exchange restrictions
Payments arrears, settlement of disputes between members, 86–89
Payments arrears of a member to other (non-Fund) creditors
Fund lending into nonsovereign arrears, 300–306
Fund lending into sovereign arrears, 300–306
Fund policies and procedures, 298–99, 299–300, 300–302
performance criteria, 298–99
Payments arrears to the Fund. See Overdue financial obligations to the Fund
Payments restrictions. See Exchange restrictions
Performance criteria under Fund arrangements
accuracy of information, 238
conditionality guidelines, 223–31
coverage initially, 259–60
definition, 228
external debt, guidelines on coverage of debt limits, 261–65
first credit tranche, not subject to, 254
foreign borrowing, guidelines on calculation of discount rate, 261, 266
number and content of, 228
omitted in stand-by arrangements within first credit tranche, 253–54
phasing, relationship, 258–60
reporting lags, 258
reporting on implementation, confidentiality relating to, 235
test dates, even distribution, 259
waiver of applicability, 153, 228, 237, 238
waiver of nonobservance, 153, 228, 237, 238
Phasing and performance criteria under Fund arrangements
omitted in stand-by arrangements within first credit tranche, 253–54
relationship, 258–60
PINs. See Public Information Notices
Position in the Fund, defined, 352, 356
Post-conflict emergency assistance, 178, 213, 284–85, 288–91, 291–96
Post-Conflict Emergency Assistance Subsidy Account for PRGF-Eligible Members
administration, 216–17
establishment, 213
fees, none, 217
instrument to establish, 213–18
investment of resources, 216
purpose, 213
rate of charge subsidy, 215
resources, 214
SDRs, use of, 219
settlement of questions, 218
termination, 217–18
use of resources, 215–16
Post-SCA-2 Administered Account
adoption of Instrument to establish, 219
Instrument to establish, 219–20
Pound sterling
freely usable currency, 699
weight in SDR valuation basket, 625
Poverty Reduction and Growth Facility (PRGF) Trust. See also Enhanced Structural Adjustment Facility (ESAF) Trust; Trust for Special PRGF Operations for the Heavily Indebted Poor Countries and Interim PRGF Subsidy Operations (PRGF-HIPC Trust)
administration of, 150–51
amendment of, 152
contributions, value date for operations and transactions, 161
cost of administration, 405
declaration of noncooperation, 156
electing lenders, 148–49
establishment, adoption of Instrument, 132
freely usable currency, 134, 140, 149
General Resources Account, no reimbursement to, 404
Instrument to establish, 133–56
investment of resources, 151
Loan Account, 134, 140–41, 145, 148, 161
Loans. See Poverty Reduction and Growth Facility Trust loans
media of payment, 134
misreporting and noncomplying disbursements, 140, 152–53
modalities of gold pledge under rights approach, 402–404
other provisions, 156–57
overdue financial obligations, 136–37
period of operation and liquidation, 151
post-conflict emergency assistance, 178, 179
post SCA-2 Administered Account, 220
Poverty Reduction Strategy Papers (PRSPs), 175, 179
prior actions, accuracy of information, 159
purposes, 133
qualifying for assistance, 179–80
removal from eligibility, 155–56
repayment expectation, 153, 156–157
Reserve Account, 134, 145, 146–48
Reserve Account, reviews, 404
Reserve Account, transfer to the PRGF-HIPC Trust, 146, 404
Special Disbursement Account, transfers from or to, 146, 147, 148
Subsidy Account, 134, 145
transfer of claims, 148–49
transformation of ESAF to PRGF, 156–58
Trust Account and resources, 177
unit of account, SDR, 134
waiver of performance criteria, accuracy of information, 159
Poverty Reduction and Growth Facility (PRGF) Trust loans
access, 137
adjustment program, 135, 137
arrangement period, extension, 138
balance of payments need, 137, 138
benchmarks, 135, 139
commitment period, 135, 136, 138
eligibility and conditions for assistance, 134–37
interest, 140, 143, 144, 145, 146, 147
misreporting and noncomplying disbursements, 140, 152–53
overdue financial obligations to Fund, 136
overdue financial obligations to PRGF Trust, 154–56
performance criteria, 136, 139, 153, 159
performance criteria, accuracy of information, 159
phasing of disbursements, 135–36, 138–39
prior action, accuracy of information, 159
protracted balance of payments problem, 136
repayment expectation, 137, 153, 157
rephasing, 138, 139
repurchase expectation, 137
rescheduling of loan repayments not possible, 140
reviews under arrangements, 136, 137, 139, 155
structural reforms, 136, 139
waiver, early repayment, 153
waiver of applicability or for nonobservance of performance criterion, 152, 159
Poverty Reduction Strategy Papers (PRSPs)
definition, 175
implementation, 208–13
flexibility regarding implementation, 205
publication policies relating to, 171, 603, 604, 605, 606, 610
role in HIPC initiative, 169, 175, 179, 180
role in PRGF operations, 108, 111
progress, 201, 208–13
Preferred creditor status of Fund, 194, 671, 680, 683
Press notices. See Public Information Notices
PRGF. See Poverty Reduction and Growth Facility
PRGF-HIPC Trust. See Trust for Special PRGF Operations for the Heavily Indebted Poor Countries and Interim PRGF Subsidy Operations
Prior actions
definition, 228
implementation under PRGF, 159
reporting on implementation, confidentiality relating to, 235
use in emergency financing mechanism, 251
use in enhanced structural adjustment facility, 166
waiver of applicability, 238
waiver of nonperformance, 238
Program Reviews, 228–29
Protracted balance of payments problem, 136, 390
Public Information Notices (PINs)
Article IV consultation, 603, 604, 605, 609, 619, 620, 621
member’s consent, 620
policy matters, 603, 607, 610
presumed publication, 613
use of Fund resources, Chairman’s Statement in lieu of PIN, 607, 618–19
Publication
Article IV and combined
Article IV/Use of Fund Resources staff reports, 603, 604, 609, 613
Article IV consultations background reports (Selected Issues Papers, Statistical Appendices), 603, 604, 609, 613
Article IV consultations staff reports, pilot project, 514, 515
Article IV staff reports, 613
Chairman’s statements, use of Fund resources, 603, 604, 606, 607, 610
deletions prior to publication, 605, 615
Financial Sector Stability Assessment (FSSA) Reports, 609, 613
Fund policy documents, 603, 607, 610
HIPC Initiative, preliminary, decision point, and completion point documents, 603, 604, 610
Joint Fund/World Bank Staff Assessments of PRSPs, Interim PRSPs, and PRSP Progress Reports, 603, 604
Letters of Intent, 603, 604, 611
Letters of Intent (LOIs)/Memoranda of Economic and Financial Progress (MEFPs) for staff-monitored programs (SMPs), 603, 604, 611
member’s statement regarding Fund staff reports, 605
Memoranda of Economic and Financial Policies, 603, 604, 611
overdue financial obligations to Fund, 610, 616–17
overdue financial obligations to PRGF Trust, 154–55
PINs following Executive Board discussions on policy issues, 603, 607, 610
PINs following Executive Board discussions on post-program monitoring, 603, 604, 610
PINs on Article IV consultations, 603, 604, 607, 610, 619, 620, 621
PINs on use of Fund resources, 613
Poverty Reduction Strategy Papers (PRSPs), Interim PRSPs, and PRSP Progress Reports, 603, 604, 606, 610
publication policies of the Fund, 603–11
Recent Economic Developments reports (REDs), Article IV consultations, 609
removal from list of PRGF-eligible countries, 155
Reports on Observance of Standards and Codes (ROSCs), 603, 604, 609, 613
repurchase expectations, failure to meet, 616–17
staff reports on staff-monitored programs, stand-alone, 603, 604, 611
staff-monitored programs, presumption of publication, 58
statistical appendices and annexes, Article IV consultations, 609
suspension of voting rights and termination of suspension, 617
Technical Memoranda of Economic and Financial Policies, 603, 604, 610
use of Fund resources—Chairman’s Statement, 603, 604, 606, 607, 610
use of Fund resources and post-program monitoring staff reports, 603, 604, 610
waivers of applicability or for nonobservance of performance criteria, 606, 610
Purchase transactions. See also Reserve tranche purchases; Use of Fund resources
resumption of purchases under extended arrangement after decision of formal ineligibility, 280
esumption of purchases under stand-by arrangement after decision of formal ineligibility, 275
suspension of transactions under extended arrangements, 281
suspension of transactions under stand-by arrangements, 276
temporary suspension under Article XXVII, effect on GAB, 416
temporary suspension under Article XXVII, effect on NAB, 449
Q
Quotas
ad hoc increases, 22
adjustment, first interval of five years, 3
Eleventh General Review, 3
Eleventh General Review, increases of quotas, new period of consent, 16
Eleventh General Review, Report of the Executive Board, 3–15
Eleventh General Review, Resolution, 10–12
Ninth General Review, 8, 9, 12, 674, 684
new period for receipt of consents to quota increases, 16
Twelfth General Review, report to Board of Governors and proposed resolution, 17–18
payment of reserve assets in connection with subscription, 19–22
sales of SDRs by Fund to members for quota payments, 362
Seventh General Review, 20, 21, 362, 642, 645, 647, 662
Sixth General Review, 20
Tenth General Review, 3, 4
voting power and adjustment of quotas, 594
R
Recent Economic Developments reports (REDs)
balance of payments consultations, WTO, 582–83
publication, 609
transmittal to multilateral agencies, 591
Reconstitution of SDRs
abrogation of rules, 664
REDs. See Recent Economic Developments reports (REDs); Article IV consultations
Repayment expectations, PRGF Trust, 137, 153, 156–57
Reports on Observance of Standards and Codes (ROSCs)
anti-money laundering initiatives, 94, 113–16, 117–21, 122–26
no longer circulated to Executive Directors in hard copy form, 112
publication policies, 603, 604, 608, 609
surveillance, 42, 53, 62, 65
Repurchase expectations
attribution of reduction of currency, 370–71
Compensatory Financing Facility, 340, 365–66
failure to meet and CFF, 366
failure to meet and extended arrangements, 237, 280, 366
failure to meet and PRGF Trust, 136–37
failure to meet and stand-by arrangements, 237, 275, 366
failure to meet under Supplemental Reserve Facility, 333
misreporting and noncomplying purchases, 235–37, 244
publication of failure to meet, 616–17
Supplemental Reserve Facility, 332–33
Repurchases. See also Repurchase expectations
access policy, 308–309
assessment of strength of members’ balance of payments and gross reserve position, 350–51
attribution of reductions in Fund’s holdings of currencies, 370–71
Compensatory Financing Facility, 340, 365–66
credit tranches, 365
currencies of other members, 366, 367
early repurchases, guidelines, 363–65
emergency assistance, 365
extended arrangements, 270, 281
gold, acceptance in payment, 367
gold, obligation to pay, 366, 367
overcompensation under CFF, legal interpretation, 340, 345–46
overdue, 374
periods, 365–66
procedures, 365–67
purchases under credit tranches and CFF, 365–66
Schedule B, 366, 367
SDRs, 252, 367
selection of currencies by Fund, 351–53, 357–58
special charges on overdue repurchases, 374–76
stand-by arrangements, 276
Systemic Transformation Facility, 347
timing of repurchases within a calendar month, 366
Reserve Account of PRGF Trust
resources, 147
transfer to the PRGF-HIPC Trust, 404
Reserve assets
payment in connection with subscriptions, 19–22
SDR allocation, 639, 744
SDR as principal reserve asset, 744
Reserve currency and specification of currencies, 353
Reserve position, gross
assessment for purposes of designation plans, operational budgets, and early repurchases, 350–51, 357
SDDS reporting, 508
Reserve tranche position
attribution of reductions in Fund’s holdings of currencies, 358–59, 370, 371
balances held in Administrative Account, 698
Eleventh General Review of Quotas, 10
extended arrangements, 697
remunerated position, 21
Reserve tranche purchases, exclusion of purchases and holdings
administrative accounts, 698
Compensatory Financing Facility, 335
credit tranches, 698
emergency assistance, 285
extended arrangements, 297
General Arrangements to Borrow, 413–14
New Arrangements to Borrow, 446
Supplemental Reserve Facility, 333, 698
Resolutions. See Board of Governors Resolutions
Restrictions. See Exchange restrictions
Retention quotas, 465–67
Reviews under Fund arrangements
extended arrangement, 697
lapse of time procedure, 282–84
PRGF arrangement, 136, 137, 138, 139
stand-by arrangement, 274
Revolving character of the Fund’s resources, 6, 309
Rights accumulation programs, 148–49, 178–79, 179
Rights approach
arrears to the Fund, reduction, 688
extension of period, 696
gold pledge, 687
modalities of gold pledge for use of PRGF Trust resources, 402–404, 690
operational modalities, 687–90
phasing, 689
PRGF-HIPC Trust eligibility, 178–79
PRGF-HIPC Trust qualification, 179–80
three-year period norm, 688
ROSCs. See Reports on Observance of Standards and Codes
Rules and Regulations
Rule G-1, fiscal agency, 415, 448
Rule G-4, request for a purchase, 360
Rule I-6(4), rate of charge, 333, 372, 374, 377, 378, 380, 382, 707
Rule I-6(4)(a), 378, 380, 382
Rule I-6(4)(b), 378, 382
Rule I-10, rate of remuneration, 378, 382
Rule K-1, 551
Rule O-1, value of SDR, 627
Rule O-2, valuation of currencies in terms of SDRs, 385, 415, 432, 648, 649, 650, 651, 653, 655
Rule O-2(a), value of U.S. dollar in terms of SDRs, 627
Rule O-10, operational budget, 353
Rule P-7, prescribed operation, 649, 651, 652, 654, 656, 657, 658
Rule P-9, recording of SDR transactions, 219, 634, 635, 636, 649, 651, 653, 655, 656, 658
Rules R-1 through R-6, rules for reconstitution (abrogated), 664
Rule T-1, interest and charges in respect of SDR, 149, 380
S
SAF. See Structural Adjustment Facility
Safeguards, use of Fund resources
benchmarks based on Code of Good Practices on Transparency in Monetary and Financial Policies, 241
publication of audited central bank financial statements, 241, 242
Safeguards assessment process
audits, 241, 242, 244
confidentiality, 242
first stage, 241
information/documents to obtain from central banks, 243–44
reports to remain confidential, 248
review, 245–48
second stage, 242
Saudi Arabia
borrowing agreement, 427–34
Schedule B, transitional provisions, 20, 366, 367
Schedule F, designation, 660
Schedule G, paragraph 1(a), reconstitution, 664
Schedule J, settlement of accounts with withdrawing members, 416, 432, 449
Schedule K, administration of liquidation, 416, 433, 449
Schedule L, suspension of voting rights, 722, 730
SDDS. See Special Data Dissemination Standard
SDRs. See Special drawing rights
Second Amendment
Article IV (surveillance over exchange rate policies), 20, 24
compensatory financing repurchase obligation, 346
payment of reserve assets in connection with subscription, 19–22
renumbered Articles, 223, 269, 372, 460, 469, 481, 547, 623
repurchases under Schedule B, 366, 367
surveillance over exchange rate policies, 20, 24
Security reasons, exchange restrictions for, 462–63
Settlement of disputes between members relating to external debt
comparable treatment of creditors, 87–88
neutrality of Fund, 89
Paris Club, 88
role of the Fund, 86–89
SFF. See Supplementary Financing Facility
Side letters, use of Fund resources, 231–34
Sovereign default, 250, 300
Special Contingent Account. See also Burden sharing
additions to, 669–70
Special Data Dissemination Standard (SDDS). See also Dissemination Standards Bulletin Board
access by the public, 499
balance sheet approach, 63, 63–64
certification requirement, 502–503
coverage, 495
debt sustainability assessments, 63
Dissemination Standards Bulletin Board (DSBB), 502–503
external debt, 63, 86
financial soundness indicators, 63
flexibility options, 498–99
integrity, 499–500
liquidity management, 63
periodicity, 496
provision for surveillance purposes, 61–65
purpose and framework, 494
quality, 500
removal from the DSBB, 502–503
review, 503
subscription, 500–501
template on international reserves/foreign currency liquidity, 508–13
timeliness, 496
Special Disbursement Account (SDA)
ESAF-HIPC Trust, 191
investment, 387–88
PRGF-HIPC Trust, 175
repayment expectation under PRGF Trust, failure to meet, 156–57
Structural Adjustment Facility administration, 388–96
termination and transfer of resources from Trust Fund, 701–703
termination of assistance from SAF in conjunction with loans from ESAF Trust, 401–402
transfer of resources to the ESAF Trust and retransfer to the SDA, 399–400
transfers to PRGF-HIPC Trust account, 177
Special drawing rights (SDRs)
allocation for first basic period, 637–38
allocation for fourth basic period, report of Managing Director, 743
allocation for third basic period, 638–47
allocations to new participants, third basic period
contributions to PRGF-HIPC Trust, 177
currency reference rates, 626
designation review rules, 659–61
designation rules, version, 662–63
euro weight in valuation basket, 625
harmonization of holdings, 352, 660
holders prescribed by the Fund
African Development Bank, 633
African Development Fund, 633
Andean Reserve Fund, 632
Arab Monetary Fund, 633
Asian Development Bank, 633
Bank for International Settlements, 632
Bank of Central African States, 633
Central Bank of West African States, 633
East African Development Bank, 633
East Caribbean Currency Authority, 633
Eastern Caribbean Central Bank, 633
European Central Bank, 633
International Bank for Reconstruction and Development (World Bank), 633
International Development Association, 633
International Fund for Agricultural Development, 633
Islamic Development Bank, 633
Nordic Investment Bank, 633
Swiss National Bank, termination of status, 633
Japanese yen
weight in valuation basket, 625
means of repayment by members on indebtedness under loan agreements, 700–701
media of payment for charges in GRA, 373 other holders, acceptance, holding or use, 629–31
payment of net charges and assessment in the SDR Department for FY ended April 30, 1982, 665
payment of subscriptions, 21, 22
pound sterling
weight in valuation basket, 625
PRGF-HIPC Trust unit of account and media of payment, 176–77
PRGF Trust unit of account and media of payment, 134, 140
reconstitution, abrogation of rules, 664
reserve asset payments, 10, 19, 20–22
sales by the Fund for payment of charges, 373–74
sales by the Fund for payment of subscriptions, 362
terms and conditions for accepting, holding, or using SDRs, 629–31
transfers of SDRs for payment of subscriptions under Article V, Section 6(b), 353, 362
transfers of SDRs for purchases under Article V, Section 3(f), 353
U.S. dollar
weight in valuation basket, 626
use in donations, 658
use in ESAF Trust operations or under an administered account, 635
use in forward operations, 657–58
use in loans, 549–50
use in payment by members on their indebtedness under loan agreements, 700, 700–701
use in payment of Trust Fund obligations, 593
use in pledges, 651–53
use in PRGF-HIPC Trust operations or under an administered account, 636
use in PRGF loans, 140
use in repurchases, 366–67
use in settlement of financial obligations, 648–49
use in Structural Adjustment Facility operations, 634
use in subsidy payment from SFF Subsidy Account, 634
use in swap operations, 655–56
use in transfers as security for the performance of financial obligations, 653–55
valuation basket, guidelines for calculation of currency amounts, 625–26
valuation basket, guidelines for calculation of currency amounts, revised, 624–25
valuation of U.S. dollar for purposes of Rule O-2(a), 627
value of SDR, method of collecting exchange rates for calculation for purposes of Rule O-2(a), 627
Specification of currencies, 351–53, 357–59
harmonization, 352
SRF. See Supplemental Reserve Facility
Staff-monitored programs, 46
Staff reports on Article IV consultations. See also Surveillance; Enhanced surveillance
document exchange with WTO, 589
military expenditure, 80–82
presumed publication, 613
publication, 603, 604, 605, 609
transmittal to international agencies, 588–89, 591, 592
Staff reports on enhanced surveillance
transmittal by members to creditors, 31–32, 83, 92, 108
Staff reports on use of Fund resources and post-program monitoring
publication policy, 612
Stand-by arrangements. See also Access policy; Use of Fund resources
access to credit tranches, normally through, 253
arrangements not international agreements, 226
charges, 276
Compensatory Financing Facility, 275
conditionality guidelines, 223–31
consultation clauses, 227, 275
Contingent Credit Lines, 275
contractual connotation avoidance, 226
debt- and debt-service-reduction operations, 275
duration, normal, 253
emergency purchases and, 286, 287, 290
external debt, performance criteria, 261–65, 273
first credit tranche, 253–54
form, standard, 272–77
Guidelines on Corrective Action, 236, 244, 275
indicative targets, 260
ineligibility, 276, 668
lapse of time procedure, reviews, 282–84
misreporting and noncomplying purchases, 235–37, 237, 238
noncomplying purchases, 237, 275
nondiscriminatory treatment, 224
overdue financial obligations to the Fund, 275, 667
performance criteria, accuracy of information, 238
performance criteria and phasing of purchases, relationship, 258–60
performance criteria with respect to external debt, 261–65, 265–66, 274
period for, 253
phasing, 253–54, 258
policies and procedures, 253–54
PRGF-HIPC Trust eligibility, 178–79
PRGF-HIPC Trust qualification, 179–80
prior actions, accuracy of information, 237
program evaluation, 230–31
repayment expectation under PRGF Trust, 157, 275
repayment obligation under PRGF Trust, 275
reporting lags, 258
repurchase, 276, 311
repurchase expectation, 236, 244, 275
reserve tranche purchases, 697
review, 231, 282, 274
review, completion, 282
review, lapse of time, 282
Supplemental Reserve Facility and, 275, 332
suspension of right to engage in transactions, 276
test dates, 259
uniform treatment of members, 224–25
waiver for nonobservance of performance criteria, 236, 237, 238
waiver of applicability of performance criteria 237, 238
Standards and codes. See also Financial Sector Assessment Program; Reports on Observance of Standards and Codes; and Special Data Dissemination Standard (SDDS)
STF. See Systemic Transformation Facility
Strengthened cooperative strategy
De-escalation of remedial measures, 693–95
Extension of deadline to enter a rights accumulation program, 690–91
extension of rights approach, 695
reversibility of actions, 691–92
review, 696
Structural Adjustment Facility (SAF)
access, potential, 389–90, 395–96
amount of assistance, 389–90
commitment period, 390, 391
commitment period, new, 395
disbursements, 391, 394
eligible members list, 395–97
income from investment and loans, 399–401
interest, 392
loans under Enhanced Structural Adjustment Facility, 393–95
PRGF-HIPC Trust qualification, 179–80
phasing, 394
protracted balance of payments problem, 136, 390
purposes, 389
qualification for assistance, 390–91
resources, 389
review, 398–99
rights accumulation programs and, 179–80
SDRs, use in operations, 395–96, 634, 635, 636
terms of loans, 392
Subscriptions. See also Quotas
accounting by members, 19
basic source of Fund financing, 458
ownership of gold and currency, 19
reserve asset payments, 19–22
Subsidy Account. See Supplementary Financing Facility Subsidy Account
Supplemental Reserve Facility (SRF)
availability through stand-by or extended arrangement, 332
commitment period, 332
conditionality, 334
contagion risk, 331
overdue financial obligations, 136–37, 275, 280
phasing, 332
PRGF Trust and, 136–37
rate of charge, 334
repurchase, 332–33
repurchase expectation, 333
repurchases, installment periods 332–33
reserve tranche purchases, exclusion, 331, 333
sudden and disruptive loss of market confidence test, 331
Supplementary Financing Facility (SFF) Subsidy Account
additional subsidy payments for May 1–June 30, 1990 and subsidy payments for July 1, 1990–June 30, 1991, 712–13
eligible members, 706
exchange rate for payment of subsidies, 713
Instrument to establish, 703–10
investment, 705, 709, 711
means of subsidy payments, 712
purpose, 704
rescheduling in cases of serious hardship, 702
resources, 704
SDRs, use of, 634
subsidy amount, 707
suspension of transfers and re-transfer of surplus, 711
transfer from Special Disbursement Account, 701–703, 704, 711
Suppliers’ credits, coverage in external debt limits, 261, 264
Surcharges on purchases, disposition for FY 2005, 381
Surveillance. See also Article IV consultations; Enhanced surveillance
ad hoc Article IV consultation, 30
architecture of international financial system, 32
balance sheet analysis, 63–64
capital flows, 27, 35
communication, 55–56
comprehensive analysis, 28
consultation cycles, changes, 59–61
core and noncore issues, 33
coverage principles, 40
data provision, 61–65
euro area, 66–68, 68–69
extension of three-month period, 65
external evaluation, 32, 33
financial sector soundness and vulnerability, 35
macroeconomic relevance tests, 33
policy dialogue with country authorities, 54–55
principles, general, 25–26
principles for guidance of members, 26
principles of Fund surveillance over exchange rate policies, 26–27
procedures, 28–29, 45, 65
review, 2004, 59
review of general implementation, two-year intervals, 38–46, 47–49, 59–61
ROSCs, 42, 62, 65
signaling, 56
Special Data Dissemination Standard, 64
staff-monitored programs, 46
supplemental procedures, 30
three-month rule, 65
use of staff resources, 57–58
World Economic Outlook, 43
Suspension of membership, 676
Suspension of voting rights
participation in Interim Committee, 722
participation in International Monetary and Financial Committee, 725
publicity, 617
timetable of procedures, 686, 687
Swiss National Bank
GAB participant, 420, 424, 426
NAB participant, 453
termination of status as prescribed holder of SDRs, 633
Systemic Transformation Facility (STF)
termination, 347
T
Technical assistance
cooperation with Trusteeship Council, 752
exchange rate system simplification, 483
Framework Administered Account for, 127–37
members not cooperating with the Fund, 675, 676
post-conflict countries, 288, 289
transmittal of reports to international agencies, 588
Terrorism financing. See Combating the Financing of Terrorism
Trade. See also World Trade Organization
structural maladjustments in trade, Extended Fund Facility, 267
Trade-related balance of payments adjustments fund, 329–30
Trade restrictions
avoidance of escalation, 473, 736
emergency assistance, 288
ESAF, 165
import restrictions for balance of payments reasons
extended arrangements, 280
GATT, 470
stand-by arrangements, 275
Voluntary Declaration on Trade and Other Current Account
Measures, 736
Tranche policies
application in connection with CFF, 335
first credit tranche, 253, 254, 298
floating tranche, 230
Transferability of claims
General Arrangements to Borrow, 416, 424–25
New Arrangements to Borrow, 455–56
Saudi Arabia, borrowing agreement with, 425–27
Transparency. See also Publication
foreign reserves management, 240
governance, 70
safeguards for use of Fund resources, 242, 246
use of Fund resources, 618–19
Trust for Special PRGF Operations for the Heavily Indebted Poor Countries and for Interim PRGF Subsidy Operations (PRGF-HIPC Trust)
administration of, 185–86
amendment of, 187
assistance amount, 180–83
completion point, 174, 179, 180, 181, 182, 183, 193, 195, 196, 197, 199, 200, 203, 204, 205, 211
contributions by other donors, 188
contributions to, 178
debt service to exports ratio, 183
debt sustainability, 174, 181, 193–94
debt sustainability analysis, 174–75, 203
debt to exports ratio, 174, 175, 183
debt to revenue ratio, 174
decision point, 174, 175, 179, 180, 181, 182, 183, 192, 193, 195, 197, 200, 203, 204, 205, 211
eligibility and eligible members, 178–79, 203
grace period on loans, 184
grants and loans, 178
Guidelines on Misreporting, 176
Instrument to establish, 173–87
Instrument to establish, adoption, 172
interest, 175, 184
interim assistance, 182
interim PRSP, 169, 201, 202, 203
investment of resources, 186, 189
maturity of loans, 183–84
Millennium Development Goals (MDGs), 208–13
off-market gold transactions, use of investment income, 405
Paris Club, 175, 179, 181, 195, 196, 201, 207
period of operation and liquidation, 187
performance-related conditions, nonobservance, 182
Poverty and Social Impact Analysis (PSIA), 170, 210
Poverty Reduction Strategy Papers (PRSPs), 175, 176, 179, 180, 196, 199, 201, 202, 203, 205, 206, 208, 209, 210, 211, 212, 213
progress in implementation, 195–99, 204–208
purposes, 176
qualification for assistance, 179–80
rescheduling of repayments not allowed, 184
reserve account review, 404
retransfers authorized, 188
SDRs, use in operations, 186, 636
self-sustained PRGF operations, 175, 187, 204
special charges on overdue interest and repayments, 375
Special Disbursement Account, transfers from, 177
streamlining preliminary HIPC documents, 203
subsidies, interim PRGF operations, 185
terms of assistance, 183–84
track record of performance, 179, 180, 194, 196, 200, 203, 204, 208
transformation of ESAF-HIPC Trust to PRGF-HIPC Trust, 157–58
Trust Account and resources, 177
Trust Fund
final direct distribution of profits, 701
means of payment of interest by members on indebtedness under loan agreements, 700–701
overdue interest and repayments, 375
SDRs, use in payment of Trust Fund obligations, 633–34
special charges on overdue financial obligations, 374–76, 701
termination and transfer of resources to Special Disbursement Account, 387, 701–703
terms of repayment of final loan disbursement and amendment of Trust instrument, 703
Twelfth General Review of Quotas
report to Board of Governors and proposed resolution, 17–18
U
Undue delay in availability or use of foreign exchange, 407, 448
Uniformity of treatment principle
consultation cycles, 36
external debt in Fund arrangements, guidelines on performance criteria, 262
post-conflict assistance, 294
settlement of disputes among members, comparable treatment, 87–88
use of Fund’s general resources, nondiscrimination, 225
United Nations
agreement with the IMF, 749–55
Convention on the Privileges and Immunities of the Specialized Agencies, 756–78
exchange of documents with, 751
“Uniting for Peace” General Assembly resolution, 718
United Nations Development Program
exchange of documents, 590
U.S. dollars
maintenance of value, rates for computation, 387
means of payment by members on indebtedness under Trust Fund loan agreements, 700–701
medium of payment, PRGF Trust, 134
payments of interest on members’ indebtedness under Trust Fund loans, 700–701
use for Subsidy Account payments, 711
valuation in terms of special drawing rights pursuant to Rule O-2(a), 627
weight in SDR valuation basket, 626
Use of Fund resources. See also Access policy; Charges; Compensatory Financing Facility; Conditionality; Contingent Credit Lines; Emergency assistance; Emergency financing mechanism; Extended arrangements; Extended Fund Facility; First credit tranche; General Resources Account; Misreporting and noncomplying purchases; Purchase transactions; Repurchases; Reserve tranche purchases; Stand-by arrangements; Supplemental Reserve Facility; Supplementary Financing Facility; Systemic Transformation Facility; Waiver of the limitation of 200 percent of quota
accordance with purposes of the Fund, 222
authority of the Fund to use its resources, resolving problem of arrears, 679
authority to use resources of Fund, interpretation of Articles of Agreement, 222
capital transfers, 222, 406
conditionality guidelines, 223–31, 253–54
financing current account deficits, 222
form, extended arrangement, 277–82
form, stand-by arrangement, 272–77
ineligibility
effect on purchases under extended arrangement, 281
effect on purchases under stand-by arrangement, 276
under Article V, Section 5, 360
interpretation of Articles of Agreement, 222
limitation and ineligibility under Article V, Section 5, 360
meaning of “consistent with the provisions of this Agreement,” Article V, Section 3, 222
meaning of “represents” in respect of need, Article V, Section 3(b)(ii), 223
monetary stabilization, 223
nondiscriminatory treatment of members, 224–25
performance criteria and phasing, 258–60
postponement and limitation under Article V, Section 5, 360–61
repayment expectation under PRGF Trust, failure to meet, 156–57
resumption of purchases under extended arrangement after decision of formal ineligibility, 281
resumption of purchases under stand-by arrangement after decision of formal ineligibility, 276
safeguards, strengthening of, 238–44
side letters, 231–34, 234–35
suspension of exchange transactions, effect on General Arrangements to Borrow, 416
suspension of transactions under extended arrangements, 281
suspension of transactions under stand-by arrangements, 276
V
Vienna Institute, Joint. See Joint Vienna Institute
Voluntary Declaration on Trade and Other Current Account Measures, 736
Voting power majority
compulsory withdrawal, 682
Eleventh General Review of Quotas, 10
SDR allocation, 744
Voting rights, suspension. See Suspension of voting rights
W
Waiver of limitation of 200 percent of quota under Article V, Section 3(b)(iii)
Compensatory Financing Facility, 335
emergency assistance, 285
Extended Fund Facility, 269
Supplemental Reserve Facility, 334
Waiver of performance criteria
applicability, 152–53, 230, 237, 238
nonobservance, 152–53, 230, 237, 259–60
Waiver of special charges, 375
World Bank (International Bank for Reconstruction and Development)
agreement with WTO, 779, 780, 782
Bank-Fund collaboration, 82, 556–58, 568–69, 569–75, 575–79
collaboration with Fund on corporate sector vulnerability analysis, 35
collaboration with Fund on shifting resources from military, 82
Development Committee, 728–34
ESAF policy framework process, 165
Financial Sector Assessment Program, 94–95, 95–96
Fund-Bank Concordat, 556–68
governance, 71, 72, 78
HIPC Initiative, 192, 199, 202
investment by Fund of currencies received by SFF Subsidy Account, 711
military expenditures, 82
observer status in Fund, 568, 568–69
post-conflict assistance, 288–89
prescribed holder of SDRs, 633
PRGF-HIPC Trust, 174
publication policies of the Fund, 603–11
rights approach, 688–89
suspension of voting rights, 685
World Economic Outlook, 431
European Central Bank, observer, 579–81
military spending, 80, 82
multilateral surveillance, 36, 43–44
surveillance procedures, 28–29
World Trade Organization (WTO)
balance of payments consultations, 582–83
coherence in global policymaking, 583, 781, 784
consistency of policy advice and obligations, 583–85
cross-conditionality, avoidance, 585
decision of IMF on IMF-WTO Agreement, 779
decision of WTO General Council on IMF-WTO Agreement, 779–83
documents exchange with, 587–88, 786
Fund staff observer at WTO meetings, 587, 785–86
guidelines/framework for Fund staff collaboration, 581–88
IMF-WTO Agreement, text, 783–88
observer status in Fund meetings, 587, 785
resolution of open jurisdictional issues, 585–86
suspension of exchange transactions, effect on General Arrangements to Borrow, 416
suspension of transactions under extended arrangements, 281
suspension of transactions under stand-by arrangements, 276
Y
Y2K Facility, 347