The IMF's 2013 Annual Report chronicles the response of the institution's Executive Board and staff to the global financial crisis and other events during financial year 2013, which covers the period from May 1, 2012, through April 30, 2013. The print version of the report is available in eight languages (Arabic, Chinese, English, French, German, Japanese, Russian, and Spanish), along with a CD-ROM (available in English only) that includes the report text and ancillary materials, including the IMF's Financial Statements for FY2013.
MESSAGE FROM THE MANAGING DIRECTOR AND CHAIR OF THE EXECUTIVE BOARD
LETTER OF TRANSMITTAL TO THE BOARD OF GOVERNORS
1 | OVERVIEW
The Global Economy
A Changing IMF
2 | GLOBAL ECONOMIC AND FINANCIAL DEVELOPMENTS
Turning the Corner at Different Speeds
Achieving a Full-Speed Global Economy
3 | ADAPTING TO A RAPIDLY CHANGING WORLD
Monitoring Global Interconnections
Pilot External Sector Report
Fiscal sustainability and structural reforms
Capital flow management and macro-prudential policy
Review of facilities for low-income countries and eligibility for concessional financing
Vulnerability Exercise for Low-Income Countries
Enhanced financial sector surveillance in low-income countries
Heavily Indebted Poor Countries Initiative/Multilateral Debt Relief Initiative
Macroeconomic issues in small states and implications for IMF engagement
2011 review of conditionality
4 | CONFRONTING THE ONGOING GLOBAL CRISIS
Managing Director’s Global Policy Agenda
Supporting jobs and growth
Strengthening financial systems
Global imbalances and spillovers
Poverty Reduction and Growth Trust
Distribution of remaining windfall gold sales profits
Extension of temporary interest waiver for low-income countries
Nonconcessional financing activity during the year
Concessional financing activity during the year
Engagement with Other Organizations
European Commission and European Central Bank
Group of Twenty
Financial Stability Board
World Bank Group
Technical assistance initiatives
Data and Data Standards Initiatives
Standards for data dissemination
Other data-related activities
5 | FINANCES, ORGANIZATION, AND ACCOUNTABILITY
Quota and Governance Reform
Progress on the 2010 quota and governance reforms
2012 Executive Board election
Quota formula review
Fifteenth General Review of Quotas
Budget and Income
Resources for providing financing to members
Gold sales and new income model
Charges, remuneration, burden sharing, and income
Administrative and capital budgets
Arrears to the IMF
Human Resources Policies and Organization
Human resources during the year
EXECUTIVE DIRECTORS AND ALTERNATES
IMF ORGANIZATION CHART
3.1. IMF engagement in Europe
3.2. Policy advice and assistance to Arab countries in transition
3.3. Call for greater coordination on global development
4.1. Balancing growth and fiscal consolidation
4.2. Fiscally sustainable and equitable pension systems for Asia
4.3. Safeguards assessments: Policy and outreach
5.1. Building renovations
5.2. Outreach to youth
5.3. Conference on capital flow management in Asia
4.1. Arrangements approved during financial years ended April 30, 2004–13
4.4. Technical assistance field delivery in FY2008–13 by country income group
4.5. Technical assistance field delivery in FY2008–13 by country status
4.6. Technical assistance field delivery during FY2013 by subject and region
4.7. Expansion of capacity development through donor support
4.8. Technical assistance field delivery in FY2008–13 by subject and topic
4.9. Training by department, FY2013
4.10. Training by provider, FY2000–13
4.11. Training by country income group, FY2000–13
4.12. Training by region, FY2000–13
4.1. IMF financing facilities
4.2. Arrangements under main facilities approved in FY2013
4.3. Arrangements approved and augmented under the Poverty Reduction and Growth Trust in FY2013
5.1. Budget by major expenditure category, FY2012–16
5.2. Administrative expenses reported in the financial statements
5.3. Arrears to the IMF of countries with obligations overdue by six months or more and by type, as of April 30, 2013
The IMF’s financial year is May 1 through April 30.
The unit of account of the IMF is the special drawing right (SDR); conversions of IMF financial data to U.S. dollars are approximate and provided for convenience. On April 30, 2013, the SDR/U.S. dollar exchange rate was US$1 = SDR 0.662691, and the U.S. dollar/SDR exchange rate was SDR 1 = US$1.509. The year-earlier rates (April 30, 2012) were US$1 = SDR 0.644934 and SDR 1 = US$1.55055.
“Billion” means a thousand million; “trillion” means a thousand billion; minor discrepancies between constituent figures and totals are due to rounding.
As used in this Annual Report, the term “country” does not in all cases refer to a territorial entity that is a state as understood by international law and practice. As used here, the term also covers some territorial entities that are not states but for which statistical data are maintained on a separate and independent basis.
Message from the Managing Director and Chair of the Executive Board
At our 2012 Annual Meetings in Tokyo, the International Monetary and Financial Committee (IMFC) called on the global community to act decisively to put the world economy on a path of strong, sustainable, and balanced growth. As I reflect on the past year, the fifth since the crisis began, this rallying call for policy action remains imperative.
Decisive actions by policymakers during the year successfully defused the most immediate risks to the global economy. Yet the road to a robust and comprehensive recovery remains bumpy. Global growth is still too weak and too uneven, and the outlook is clouded with risks, old and new. In far too many countries, improvements in financial markets have not translated into improvements in the real economy—and in the lives of people.
The challenges ahead are great and the need for concerted action is a responsibility that the IMF shares with its 188 member countries. In this spirit, the IMF presented a new product to the IMFC in October 2012 and again at the 2013 Spring Meetings—a Global Policy Agenda that outlines policy priorities for the membership and how the IMF can assist.
Our key responsibility is to adjust to the changing nature of the global economy, and to better discharge our mandate and serve the shifting and diverse needs of our member countries. Thanks to a close partnership between management, staff, and the Executive Board, the IMF continued to make progress on a wide range of fronts to strengthen the institution’s operations in support of all members—advanced, emerging, and low-income economies alike.
Several innovations to the Fund’s surveillance framework came to fruition, following the recommendations of the 2011 Triennial Surveillance Review. Three important upgrades include the new Integrated Surveillance Decision, as well as the launch of a Pilot External Sector Report and Spillover Report. These initiatives bring together the bilateral and multilateral perspectives of the Fund’s policy advice, sharpening our analysis of spillovers and cross-border effects, and focusing on the stability of the system as a whole.
The Fund also stepped up its analytic agenda to provide a better basis for tailored policy advice. We have redoubled our efforts in areas that might best be described as the legacy issues of the crisis, with greater focus on the analysis of jobs and growth, fiscal consolidation and growth, and the critically important financial sector. Work in this last area will also be reinforced by the newly adopted financial sector strategy. Another key area was the culmination of work on capital flows, in which the Fund developed a comprehensive, flexible, and balanced institutional view on the management of global capital flows to help give countries clear and consistent policy advice.
As the recovery has been slow to take hold, lending continued to be a key element of IMF support for its member countries. While this is critically important for those countries at the center of the crisis, the Fund needs to be able to stand behind all its members. The earlier enhancements to the Flexible Credit Line continued to prove useful, with successor arrangements in Mexico and Poland. The Fund also increased its engagement with Arab countries in transition.
To help strengthen the global financial safety net, members made additional pledges to boost the Fund’s borrowed resources, bringing the total to US$461 billion. The institution also took important steps to meet the needs of its low-income members. The Executive Board approved the use of US$2.7 billion in remaining windfall gold sales profits as part of a strategy to ensure the long-term sustainability of the Fund’s concessional financing facilities. This came on top of the assurances provided by members to use US$1.1 billion of gold sales profits to bolster our concessional resources in the near term.
We also achieved a number of milestones in the Fund’s capacity development and training activities, the third pillar of our work. The year began with the creation of the new Institute for Capacity Development to make technical assistance and training better aligned and more effective. The Fund further expanded its capacity-building presence on the ground, with an agreement to establish a regional training center in Mauritius and preparations for the new regional technical assistance center in West Africa.
A final but crucial note: the Fund must truly reflect its global ownership. A point that bears repeating is that we need an IMF that represents and looks like the world today. During the year we made progress. We achieved most of the conditions for the 2010 quota and governance reforms to enter into force. Our top priority must be to follow through, to complete those reforms and build on the work already done toward a new quota formula so that the institution more effectively represents its membership.
I am proud of the IMF’s accomplishments over the past year and the tireless efforts of our dedicated staff, and have been honored to serve as Managing Director. I look forward to continuing to work closely with all our member countries—and their representatives on the Executive Board—in tackling the many challenges still facing the global economy.
The Annual Report of the IMF’s Executive Board to the Fund’s Board of Governors is an essential instrument in the IMF’s accountability. The Executive Board is responsible for conducting the Fund’s business and consists of 24 Executive Directors appointed by the IMF’s 188 member countries, while the Board of Governors, on which every member country is represented by a senior official, is the highest authority governing the IMF. The publication of the Annual Report represents the accountability of the Executive Board to the Fund’s Board of Governors.
Executive Board as of April 30, 2013
Alternate Executive Directors are indicated in italics.
Letter of Transmittal to the Board of Governors
July 29, 2013
Dear Mr. Chairman:
On behalf of the Executive Board of the International Monetary Fund, I have the honor to transmit for consideration by the Board of Governors: (i) the Financial Statements of the International Monetary Fund for the Financial Year Ended April 30, 2013, which include the independent auditors’ reports issued by the Fund’s external audit firm Deloitte & Touche and (ii) the Letter of Transmittal from the External Audit Committee to the Board of Governors.
The audits were conducted by Deloitte & Touche, in accordance with International Standards on Auditing, auditing standards generally accepted in the United States of America, and the requirements of Section 20(b) of the Fund’s By-Laws. The External Audit Committee, comprising Mr. Ayass (Chairman), Mr. Wang, and Mr. Ramos, had general oversight of the annual audit, as required under Section 20(c) of the Fund’s By-Laws.
Yours very truly,
Managing Director and Chair of the Executive Board