Concluding Remarks by the Acting Chairman Military Expenditure and the Role of the Fund Executive Board Meeting 91/138, October 2, 1991

During the discussions on the World Economic Outlook, Directors touched on the issue of military spending in the context of the need to raise global savings and to help meet new investment demands. The scale of global resources devoted to military spending—estimated at nearly 5 percent of world GDP—underscores its importance. In the more recent discussion on Military Expenditure and the Role of the Fund, most Directors indicated that as military expenditures can have an important bearing on a member’s fiscal policy and external position, information about such expenditures may be necessary to permit a full and internally consistent assessment of the member’s economic position and policies. At the same time, Directors emphasized that national security, and judgments regarding the appropriate level of military expenditures required to assure that security, were a sovereign prerogative of national governments and were not in the domain of the work of the Fund.

While many Directors saw a limited, albeit important, role for the Fund in the collection and analysis of data on military spending, a number questioned the role of the Fund in this area. Since the collection of data from all members in the context of Article IV consultations requires the cooperation of members, Directors felt it important, in light of the diverse views expressed during this meeting, to find a common ground that commands a wide degree of support. This common ground should be based on the Fund’s mandate in the Articles.

In the context of the Fund’s surveillance responsibilities, the staff needs to request of members certain data to provide the analytic basis for an effective assessment of members’ macroeconomic policies. At a minimum and for all members, aggregate data which include fiscal expenditures (including off-budget accounts), international trade, and external assets and liabilities, must be reported fully to the Fund. These data should therefore encompass military transactions, even if not separately identified. It has been the policy and practice of the Fund staff to seek comprehensive macroeconomic data for this purpose. In those instances when inconsistencies in data suggested significant reporting gaps, Fund staff has informed the Board and supplemented data from the authorities to the extent possible with data from other sources. Most Directors agreed that the Fund staff should enhance its work to improve the comprehensiveness, comparability, and timeliness of such data reported by authorities.

As military spending is a highly sensitive area, however, several Directors expressed concern about the degree of data disaggregation that might be requested by the staff. In the past, the staff has generally requested, or been offered by authorities of members countries, more detailed information on the breakdown of government expenditures, either on a national or fiscal accounts basis, which have been part of the documentation in staff reports. Such disaggregation, say, as between consumption and capital items, may be necessary in order fully to assess growth prospects and external viability. The staff will continue to request a breakdown of government expenditures, but still at a highly aggregated level, in the context of the Article IV consultation process in order to assess the consistency and sustainability of a member’s policies. The staff will continue to rely on the voluntary cooperation of the authorities in the submission of data. Data deficiencies, which were thought to impair the ability to assess a member’s economic position and prospects and to conduct meaningful policy discussions, would be brought to the attention of the Board in the manner in which such data deficiencies are normally so reported. Directors agreed that data on military expenditures should not serve as a basis for establishing performance criteria or similar conditions associated with Fund-supported programs.

Countries, when contemplating downsizing their military establishments, may wish to be assisted by the staff in assessing the possible effects of such downsizing on macroeconomic performance. In such cases, the authorities may wish to provide such data as would permit more detailed economic analysis and facilitate economic policy discussions. The Fund staff would work closely with Bank staff in these cases on the structural issues associated with shifting domestic resources to other uses.

The macroeconomic effects of military spending could also be analyzed from a regional and global perspective in the WEO.

Summing Up by the Acting Chairman—Standards for the Dissemination of Economic and Financial Statistics to the Public by Member Countries and Implementation of the SDDS Executive Board Meeting 96/36, April 12, 1996

Executive Directors noted that the Interim Committee, in its communiqué of October 8, 1995, had endorsed the establishment by the Fund of standards to guide members in the publication of their economic and financial data. Those standards would consist of two tiers: a general standard, and a more demanding standard, now designated as the Special Data Dissemination Standard (SDDS). They recalled that the Interim Committee had requested that Fund members have the opportunity to subscribe to the SDDS by the time of the April 1996 Interim Committee meeting and were gratified that this objective would be achieved. Directors also appreciated the speedy staff work that had gone into the data dissemination initiative and the widespread consultation with users and producers of statistics, national authorities, and other international organizations that had been undertaken in preparation of the specific staff proposals.

Directors recalled their earlier approval, at the meeting of March 29, 1996, of the SDDS and of its immediate opening for subscription on a voluntary basis. They recognized that the establishment of the SDDS was an important step for the Fund and for its membership. Directors emphasized that in the initial phase the approach to its implementation would inevitably need to be both flexible and evolutionary.

Directors discussed the elaborations proposed by the staff regarding the timeliness of foreign trade data, the periodicity of foreign reserves data, some flexibility for release calendars, and procedures in case of possible non-observance of the SDDS. In light of the above considerations, the Executive Board approved those elaborations to the SDDS, whose scope and operational characteristics are set forth in the Annex to this summing up.

Executive Directors took note that a significant number of member countries had provided indications of their intention to subscribe to the SDDS and agreed that the electronic Data Standards Bulletin Board (DSBB) should be open to the public by the end of August 1996. Directors also welcomed the preparation by the staff of an operations manual that would soon become available.

Directors observed that the SDDS was ambitious. At the same time, they welcomed the several aspects of flexibility built into the standard. They also noted that reviews of the operation of, and experience with, the SDDS would provide the opportunity to make adjustments that might be called for as experience accumulated through the transition period that would end at the close of 1998.

Directors agreed that invitations for subscription should be sent by the Managing Director as soon as possible. The package of materials would comprise a communication from the Managing Director, and, to be sent separately, this summing up with its Annex, and a paper entitled/ the Special Data Dissemination Standard (SM/96/83, Sup. 2, 4/15/96, to be circulated).

Directors called for work to continue on the elaboration of the general data dissemination standard for Board consideration before the end of 1996. They also called for a review of the operation of the special and general data dissemination standards by the end of 1997, and another review before the completion of the transition period at the end of 1998.

ANNEX¹ Scope and Operational Characteristics of the Special Data Dissemination Standard

I. Purpose and Framework

The purpose of the Special Data Dissemination Standard (SDDS) is to guide member countries in the provision to the public of comprehensive, timely, accessible, and reliable economic and financial statistics in a world of increasing economic and financial integration. The SDDS thus comprises four dimensions: (a) coverage, periodicity, and timeliness of data; (b) access by the public; (c) integrity of the disseminated data; and (d) quality of the disseminated data. For each of the four dimensions, the SDDS prescribes good practices that can be observed, or monitored, by users of statistics.

II. Dimensions of the SDDS

1. Coverage, periodicity, and timeliness of data

Comprehensive economic and financial data, disseminated on a timely basis, are essential to the transparency of macroeconomic performance and policy.

(A) Definitions and general considerations

• (i) Coverage

In respect of coverage, the SDDS focuses on basic data that are most important in shedding light on economic performance and policy in four sectors across the economy—real, fiscal, financial, and external. The SDDS focuses on the minimum coverage necessary, but countries are encouraged to disseminate other data that may increase the transparency of economic performance and policy in general and for their own economic and financial situations in particular.

For each of the four sectors, the SDDS provides:

• (a) a comprehensive statistical framework—national accounts for the real sector, government operations for fiscal data, analytical accounts of the banking system for financial data, and balance of payments accounts for external transactions;

• (b) data that permit tracking of the principal measures in the comprehensive frameworks; and

• (c) other data relevant to the sector.

These other data are often in the form of a price, including interest rates and exchange rates. The comprehensive frameworks and tracking categories are indicated in the attached Table 1.

Table 1.

The Special Data Dissemination Standard: Coverage, Periodicity, and Timeliness

Sources: Periodicity and timeliness: Daily (“D”); weekly or with lapse of no more than one week (“W”) after the reference data or close of the reference week; monthly or with lapse of no more than one month (“M”); quarterly or with lapse of no more than one quarter (“Q”); annual (“A”).

^*Comprehensive statistical frameworks

^#Tracking categories

^1/Given that data are widely available from private sources, dissemination of official producers may be less time-sensitive. Although dissemination by recorded telephone messages or fax services is encouraged, dissemination of these data can be made part of other (preferably high-frequency) dissemination products.

^2/See Table 2. The data on total official reserve assets identified in Section I, item A of Table 2 are prescribed to be disseminated with monthly periodicity and weekly timeliness. The data on the currency composition of reserves identified in Section IV, Item (2)(a) of Table 2 are to be disseminated with quarterly periodicity and timeliness, and in two categories: (1) currencies included in the SDR basket, and (2) all other currencies. Unless otherwise further indicated, the dissemination of the other data specified in Table 2 is prescribed with monthly periodicity and timeliness.

^3/If external debt data are being disseminated with quarterly periodicity and timeliness by a subscriber, the subscriber may disseminate the data on international investment position with nine-month timeliness.

Table 1.

The Special Data Dissemination Standard: Coverage, Periodicity, and Timeliness

Coverage			Periodicity	Timeliness
Prescribed		Encouraged categories and/or Components
Category	Components
Real sector
National accounts: nominal, real, and associated prices*	GDP by major expenditure category and/or by productive sector	Saving, gross national income	Q	Q
Production index/indices #	Industrial, primary commodity, or sector, as relevant		M (or as relevant)	6W (M encouraged, or as relevant)
		Forward-looking indicator(s), e.g., qualitative business surveys, orders, composite leading indicators index	M or Q	M or Q
Labor market	Employment, unemployment, and wages/earnings, as relevant		Q	Q
Price indices	Consumer prices and producer or wholesale prices		M	M
Fiscal sector
General government or public sector operations, as relevant*	Revenue, expenditure, balance, and domestic (bank and nonbank) and foreign financing	Interest payments	A	2Q
Central government operations#	Budgetary accounts: revenue, expenditure, balance, and domestic (bank and nonbank) and foreign financing	Interest payments	M	M
Central government debt	Domestic and foreign, as relevant, with a breakdown by currency (including indexed), as relevant, and a breakdown by maturity; debt guaranteed by central government, as relevant	Debt service projections: interest and amortization on medium and long-term debt (Q for next 4 quarters and then A) and amortization on short-term debt(Q)
Financial sector
Analytical accounts of the banking sector*	Money aggregates, domestic credit by public and private sector, external position		M	M
Analytical accounts of the central bank #	Reserve money, domestic claims on public and private sector, external position		M (W encouraged)	2W (W encouraged)
Interest rates	Short-term and long-term government security rates, policy variable rate	Range of representative deposit and lending rates	D	1/
Stock market	Share price index, as relevant		D	1/
External sector
Balance of payments*	Goods and services, net income flows, net current transfers, selected capital (or capital and financial) account items (including reserves)	Foreign direct investment and portfolio investment	Q	Q
International reserves, reserve liabilities, and related items #	Reserve assets (gold, foreign exchange, SDRs, and Fund position); other foreign currency assets; contingent short-term drains on foreign currency assets; and related items 2/	See the Pro Memoria component in Section III, item 4 of Table 2	M (W encouraged)	W for total official reserve assets; M for all other items (W encouraged)
Merchandise trade #	Exports and imports	Major commodity breakdowns with longer time lapse	M	8W (4-6W encouraged)
International investment position	See text of Annex		A (Q encouraged)	2Q 3/ (Q encouraged)
External debt statistics	See text of Annex	See text of Annex	Q	Q
Exchange rates	Spot rates and 3-and 6-month forward market rates, as relevant		D	1/
Addendum Population		Key distributions e.g., by age and sex	A	…

Sources: Periodicity and timeliness: Daily (“D”); weekly or with lapse of no more than one week (“W”) after the reference data or close of the reference week; monthly or with lapse of no more than one month (“M”); quarterly or with lapse of no more than one quarter (“Q”); annual (“A”).

^*Comprehensive statistical frameworks

^#Tracking categories

^1/Given that data are widely available from private sources, dissemination of official producers may be less time-sensitive. Although dissemination by recorded telephone messages or fax services is encouraged, dissemination of these data can be made part of other (preferably high-frequency) dissemination products.

^2/See Table 2. The data on total official reserve assets identified in Section I, item A of Table 2 are prescribed to be disseminated with monthly periodicity and weekly timeliness. The data on the currency composition of reserves identified in Section IV, Item (2)(a) of Table 2 are to be disseminated with quarterly periodicity and timeliness, and in two categories: (1) currencies included in the SDR basket, and (2) all other currencies. Unless otherwise further indicated, the dissemination of the other data specified in Table 2 is prescribed with monthly periodicity and timeliness.

^3/If external debt data are being disseminated with quarterly periodicity and timeliness by a subscriber, the subscriber may disseminate the data on international investment position with nine-month timeliness.

View Table

Table 1.

The Special Data Dissemination Standard: Coverage, Periodicity, and Timeliness

Coverage			Periodicity	Timeliness
Prescribed		Encouraged categories and/or Components
Category	Components
Real sector
National accounts: nominal, real, and associated prices*	GDP by major expenditure category and/or by productive sector	Saving, gross national income	Q	Q
Production index/indices #	Industrial, primary commodity, or sector, as relevant		M (or as relevant)	6W (M encouraged, or as relevant)
		Forward-looking indicator(s), e.g., qualitative business surveys, orders, composite leading indicators index	M or Q	M or Q
Labor market	Employment, unemployment, and wages/earnings, as relevant		Q	Q
Price indices	Consumer prices and producer or wholesale prices		M	M
Fiscal sector
General government or public sector operations, as relevant*	Revenue, expenditure, balance, and domestic (bank and nonbank) and foreign financing	Interest payments	A	2Q
Central government operations#	Budgetary accounts: revenue, expenditure, balance, and domestic (bank and nonbank) and foreign financing	Interest payments	M	M
Central government debt	Domestic and foreign, as relevant, with a breakdown by currency (including indexed), as relevant, and a breakdown by maturity; debt guaranteed by central government, as relevant	Debt service projections: interest and amortization on medium and long-term debt (Q for next 4 quarters and then A) and amortization on short-term debt(Q)
Financial sector
Analytical accounts of the banking sector*	Money aggregates, domestic credit by public and private sector, external position		M	M
Analytical accounts of the central bank #	Reserve money, domestic claims on public and private sector, external position		M (W encouraged)	2W (W encouraged)
Interest rates	Short-term and long-term government security rates, policy variable rate	Range of representative deposit and lending rates	D	1/
Stock market	Share price index, as relevant		D	1/
External sector
Balance of payments*	Goods and services, net income flows, net current transfers, selected capital (or capital and financial) account items (including reserves)	Foreign direct investment and portfolio investment	Q	Q
International reserves, reserve liabilities, and related items #	Reserve assets (gold, foreign exchange, SDRs, and Fund position); other foreign currency assets; contingent short-term drains on foreign currency assets; and related items 2/	See the Pro Memoria component in Section III, item 4 of Table 2	M (W encouraged)	W for total official reserve assets; M for all other items (W encouraged)
Merchandise trade #	Exports and imports	Major commodity breakdowns with longer time lapse	M	8W (4-6W encouraged)
International investment position	See text of Annex		A (Q encouraged)	2Q 3/ (Q encouraged)
External debt statistics	See text of Annex	See text of Annex	Q	Q
Exchange rates	Spot rates and 3-and 6-month forward market rates, as relevant		D	1/
Addendum Population		Key distributions e.g., by age and sex	A	…

Sources: Periodicity and timeliness: Daily (“D”); weekly or with lapse of no more than one week (“W”) after the reference data or close of the reference week; monthly or with lapse of no more than one month (“M”); quarterly or with lapse of no more than one quarter (“Q”); annual (“A”).

^*Comprehensive statistical frameworks

^#Tracking categories

^1/Given that data are widely available from private sources, dissemination of official producers may be less time-sensitive. Although dissemination by recorded telephone messages or fax services is encouraged, dissemination of these data can be made part of other (preferably high-frequency) dissemination products.

^2/See Table 2. The data on total official reserve assets identified in Section I, item A of Table 2 are prescribed to be disseminated with monthly periodicity and weekly timeliness. The data on the currency composition of reserves identified in Section IV, Item (2)(a) of Table 2 are to be disseminated with quarterly periodicity and timeliness, and in two categories: (1) currencies included in the SDR basket, and (2) all other currencies. Unless otherwise further indicated, the dissemination of the other data specified in Table 2 is prescribed with monthly periodicity and timeliness.

^3/If external debt data are being disseminated with quarterly periodicity and timeliness by a subscriber, the subscriber may disseminate the data on international investment position with nine-month timeliness.

• (ii) Periodicity and timeliness

Periodicity refers to the frequency of compilation of the data. Timeliness refers to the speed of dissemination of the data—i.e., the lapse of time between a reference date (or close of a reference period) and dissemination of the data. Dissemination of statistics may take several forms, including: formal publications (including news releases); announcement of availability on request (but not necessarily without charge), including through electronic databases; diskettes, tapes, or CD-ROM of a formal publication or a database; and recorded telephone messages and facsimile services.

(B) Specifications

The SDDS specifications for coverage, periodicity, and timeliness are summarized in the attached Table 1. Further specifications which apply to international reserves, reserve liabilities and related items are set out in the attached Table 2. Where the coverage components, periodicity, or timeliness is to be provided on an “as relevant” basis, subscribing members would have the flexibility to take an approach that is the most relevant to their respective circumstances. Where the coverage components, periodicity, or timeliness is designated as “encouraged,” that feature would not be binding under the SDDS, but countries are encouraged to develop and disseminate such data categories in the indicated periodicity and timeliness.

Table 2.

Data Template on International Reserves/Foreign Currency Liquidity

¹In principle, only instruments denominated and settled in foreign currency (or those whose valuation is directly dependent on the exchange rate and that are settled in foreign currency) are to be included in categories I, II, and III of the template. Financial instruments denominated in foreign currency and settled in other ways (e.g., in domestic currency or commodities) are included as memo items under Section IV.

²Netting of positions is allowed only if they have the same maturity, are against the same counterparty, and a master netting agreement is in place. Positions on organized exchanges could also be netted.

³Monetary authorities defined according to the IMF Balance of Payments Manual, Fifth Edition.

⁴In cases of large positions vis-à-vis institutions headquartered in the reporting country, in instruments other than deposits or securities, they should be reported as separate items.

⁵The valuation basis for gold assets should be disclosed; ideally this would be done by showing the volume and price.

Table 2.

Data Template on International Reserves/Foreign Currency Liquidity

	(Information to be disclosed by the monetary authorities and other
central government, excluding social security)123
I.	Official reserve assets and other foreign currency assets (approximate
	market value)4
	A.	Official reserve asset
		(1) Foreign currency reserves (in convertible foreign currencies)
			(a)	securities of which: issuer headquartered in reporting
				country
			(b)	total deposits with:
				(i)	other central banks and BIS
				(ii)	banks headquartered in the reporting country of
					which: located abroad
				(iii)	banks headquartered outside the reporting country of
					which: located in the reporting country
		(2)	IMF reserve position
		(3)	SDRs
		(4)	gold (including gold on loan)5
		(5)	other reserve assets (specify)
	B. Other foreign currency assets (specify)

¹In principle, only instruments denominated and settled in foreign currency (or those whose valuation is directly dependent on the exchange rate and that are settled in foreign currency) are to be included in categories I, II, and III of the template. Financial instruments denominated in foreign currency and settled in other ways (e.g., in domestic currency or commodities) are included as memo items under Section IV.

²Netting of positions is allowed only if they have the same maturity, are against the same counterparty, and a master netting agreement is in place. Positions on organized exchanges could also be netted.

³Monetary authorities defined according to the IMF Balance of Payments Manual, Fifth Edition.

⁴In cases of large positions vis-à-vis institutions headquartered in the reporting country, in instruments other than deposits or securities, they should be reported as separate items.

⁵The valuation basis for gold assets should be disclosed; ideally this would be done by showing the volume and price.

View Table

Table 2.

Data Template on International Reserves/Foreign Currency Liquidity

	(Information to be disclosed by the monetary authorities and other
central government, excluding social security)123
I.	Official reserve assets and other foreign currency assets (approximate
	market value)4
	A.	Official reserve asset
		(1) Foreign currency reserves (in convertible foreign currencies)
			(a)	securities of which: issuer headquartered in reporting
				country
			(b)	total deposits with:
				(i)	other central banks and BIS
				(ii)	banks headquartered in the reporting country of
					which: located abroad
				(iii)	banks headquartered outside the reporting country of
					which: located in the reporting country
		(2)	IMF reserve position
		(3)	SDRs
		(4)	gold (including gold on loan)5
		(5)	other reserve assets (specify)
	B. Other foreign currency assets (specify)

¹In principle, only instruments denominated and settled in foreign currency (or those whose valuation is directly dependent on the exchange rate and that are settled in foreign currency) are to be included in categories I, II, and III of the template. Financial instruments denominated in foreign currency and settled in other ways (e.g., in domestic currency or commodities) are included as memo items under Section IV.

²Netting of positions is allowed only if they have the same maturity, are against the same counterparty, and a master netting agreement is in place. Positions on organized exchanges could also be netted.

³Monetary authorities defined according to the IMF Balance of Payments Manual, Fifth Edition.

⁴In cases of large positions vis-à-vis institutions headquartered in the reporting country, in instruments other than deposits or securities, they should be reported as separate items.

⁵The valuation basis for gold assets should be disclosed; ideally this would be done by showing the volume and price.

The prescribed comprehensive statistical framework for the real sector is the national accounts, consisting of nominal levels, real (price-adjusted) levels, and associated prices (deflators or price indices). The data category intended to track GDP on a more frequent basis is a single production index or a selection of production indices. For price statistics, consumer price indices and producer or wholesale price indices are prescribed.

For the fiscal sector, the prescribed comprehensive statistical framework covers the general (central plus state or provincial and local) government or the public sector, depending on which coverage is the focus of policy and analysis in a particular country. As more frequent and timely tracking indicators of fiscal stance, central government indicators are prescribed. Data for government debt are prescribed in terms of central government debt.¹

For the financial sector, the prescribed comprehensive statistical framework is the analytical accounts of the banking system. Data should cover all units of the system that are included in principal national measures of money aggregates (such as M2 or M3). The data category prescribed to track banking system data on a more timely basis is the central bank analytical accounts. Interest rates should include rates on short- and long-term government securities as appropriate to the country.

For the external sector, balance of payments data are the prescribed comprehensive statistical framework. On a more frequent and timely basis, international reserves, reserve liabilities and related items, and merchandise trade are called for as tracking categories. Dissemination of monthly total official reserve assets within one week is prescribed, and the dissemination of most of the reserves-related data required in Table 2 is prescribed with monthly periodicity and timeliness, with weekly periodicity and timeliness encouraged.² Countries that wish to have their data on reserves and related items included in the Fund’s database and re-disseminated over the Fund’s external web site should report such data in the format of Table 3 [Note: not included in this volume]. With respect to the international investment position, annual data (encompassing components consistent with the IMF Balance of Payments Manual (5th Ed.)) are to be disseminated within two quarters of the end of the reference year,¹ with quarterly periodicity and timeliness encouraged. However, if a subscriber meets the requirements for the external debt data category (see below), data on the international investment position may be disseminated with nine-month timeliness. Exchange rates should be disseminated on a daily basis, as should forward exchange rates (three- and six-month rates) on an “as relevant”basis if a robust forward market exists. There is also a separate data category for external debt, with data covering four sector categories: (1) the general government, (2) the monetary authorities, (3) the banking sector, and (4) all other sectors. These data are to be disseminated with quarterly periodicity and timeliness. Data should also be broken down by maturity—short and long-term—on an original maturity basis and by instrument, as set out in the IMF Balance of Payments Manual (5th Ed.). In addition, the SDDS encourages the dissemination of supplementary information on future debt service payments, in which the principal and interest components are separately identified, twice yearly for the first four quarters and the following two semesters ahead, with a lag of one quarter. The data should also be broken down into sectors—general government, monetary authorities, the banking sector, and other sectors. Finally, the dissemination of a domestic/foreign currency breakdown of external debt with quarterly periodicity and timeliness is encouraged.²

1. Subscription to the SDDS

Subscription to the SDDS by members of the Fund is on a voluntary basis. Members that wish to subscribe to the SDDS should first communicate this intention to the staff of the Fund, with an undertaking to provide to the staff information describing its data dissemination practices, i.e. metadata, (other than the summary descriptions of methodology) as soon as possible.

Upon receipt of the necessary metadata from a member, the Fund’s staff would work with the member to determine where its practices stood with respect to the SDDS as well as to identify any changes in practices that would be needed. If no changes were needed, the member may proceed to inform the Secretary of the Fund of its subscription to the SDDS. If changes to a member’s practices are required, the member may, after the necessary changes have been discussed with the Fund’s staff and implemented, proceed to inform the Secretary of the Fund of its subscription to the SDDS. In this regard, a member may make known publicly its intent to improve its data and dissemination practices with the goal of subscribing to the SDDS.

In all cases, the Fund’s public identification of a member’s subscription to the SDDS will be made through the posting of the member’s metadata on the Dissemination Standard Bulletin Board (“DSBB”; see section III.2 below). Within three months of the posting of the member’s metadata on the DSBB, the member would need to provide to the Fund’s staff the summary descriptions of methodology called for under the SDDS.

2. Dissemination Standard Bulletin Board

As a cornerstone of the implementation of the SDDS, the Fund will, as a service to its members, establish and maintain an electronic Dissemination Standard Bulletin Board (DSBB) on the Internet. The DSBB will identify the members subscribing to the SDDS and provide wide and easy access to the members’ respective metadata. The responsibility for the accuracy of the metadata and of the economic and financial statistics underlying the metadata rests with member countries.

Subscribers to the SDDS are required to establish a national summary data page on the Internet which will be linked to the DSBB electronically through “hyperlinks” on the latter.¹ The national summary data page would contain, at a minimum, the most recent observation for the prescribed data category and the next most recent observation, and could also contain additional information. Responsibility for the data on the national summary data page rests with individual subscribers.

3. Observance of the SDDS and Removal from the DSBB

Subscribers to the SDDS are expected to observe the elements of its four dimensions described in section II above. Deviations of any kind from SDDS undertakings would be brought immediately to the attention of the subscriber. Subsequent steps for dealing with such deviations would follow a graduated approach that distinguishes between minor and serious deviations.

The Fund’s staff would continuously monitor the observance by subscribers of the requirements of the data dimension (section II. 1 above) and the advance release calendars element of the access dimension (section II.2.(a) above). In cases of nonobservance of the practices prescribed for these items, the Fund’s staff would try to resolve the issue with the subscriber, at first directly, and then, if necessary, through the Executive Director representing the subscriber in the Fund. If these efforts failed to produce a satisfactory solution, the matter would be brought to the attention of the subscriber’s Governor for the Fund. At the same time, the Fund could post a note on the DSBB describing the problem, the subscriber’s response to the problem and the efforts underway to remedy it. If the problem persisted thereafter, the matter would be referred to the Executive Board of the Fund, which could take a decision that the subscriber was not in observance of its undertakings under the SDDS, and that a notice to that effect would be posted on the DSBB. Following this, if no satisfactory corrective measures were taken by the subscriber, the Executive Board could decide to delete the metadata of that subscriber from the DSBB.

More generally, subscribers are required to certify, on a quarterly basis, the accuracy of the metadata posted on the DSBB. Under this process, subscribers will notify the Fund’s staff, within three working days¹ of the end of each calendar quarter, that either: (1) all of the metadata posted on the DSBB are fully accurate; or (2) certain metadata are inaccurate. In the latter case, subscribers would need to provide the corrected metadata within a further five working days. The DSBB will post the date on which the metadata were last certified by the subscriber. If a subscriber failed to meet this certification requirement for two successive certification dates, the Executive Director representing the subscriber in the Fund would be approached to help resolve the issue. Thereafter, the steps described in the preceding paragraph for dealing with nonobservance of the requirements of the data dimension and the advance release calendars element of the access dimension of the SDDS would be followed in addressing a failure to observe the quarterly certification requirement.

There may be situations where a subscriber, during the period between certification dates for the metadata, makes changes to its practices that affect the accuracy of the metadata posted on the DSBB. In such situations, the subscriber should inform the Fund’s staff of these changes, and they would work together to amend the affected metadata expeditiously. In any event, subscribers would be required to provide the revised metadata at the time of the next quarterly certification. Pending revision of the metadata on the DSBB, a note may be posted on the DSBB indicating that the metadata in question were in the process of being updated.

Finally, an annual report that assesses each subscribing member’s observance of its undertakings under the SDDS will be posted on the DSBB.

4. Review, Revisions, and Withdrawal

Reviews of the SDDS will be conducted by the Fund by the end of 1997, the end of 1998, the end of 1999, and the middle of 2001, respectively. At the completion of these reviews, revisions of the SDDS may be adopted.

A member may withdraw its subscription to the SDDS at any time by sending a notification to the Managing Director of the Fund. The relevant metadata would be removed promptly from the DSBB.

II. Predetermined short-term net drains on foreign currency assets (nominal value)

¹Including interest payments due within the corresponding time horizons. Foreign currency deposits held by nonresidents with central banks should also be included here. Securities referred to are those issued by the monetary authorities and the central government (excluding social security).

²In the event that there are forward or futures positions with a residual maturity greater than one year, which could be subject to margin calls, these should be reported separately under Section IV.

	Total	Maturity breakdown (residual maturity)
		Up to 1 month	More than 1 month and up to 3 months	More than 3 months and up to 1 year
1. Foreign currency loans and securities1
2. Aggregate short and long positions in forwards and futures in foreign currencies vis-à-vis the domestic currency (including the forward leg of currency swaps)2
(a) Short positions
(b)Long positions
3. Other (specify)

¹Including interest payments due within the corresponding time horizons. Foreign currency deposits held by nonresidents with central banks should also be included here. Securities referred to are those issued by the monetary authorities and the central government (excluding social security).

²In the event that there are forward or futures positions with a residual maturity greater than one year, which could be subject to margin calls, these should be reported separately under Section IV.

View Table

	Total	Maturity breakdown (residual maturity)
		Up to 1 month	More than 1 month and up to 3 months	More than 3 months and up to 1 year
1. Foreign currency loans and securities1
2. Aggregate short and long positions in forwards and futures in foreign currencies vis-à-vis the domestic currency (including the forward leg of currency swaps)2
(a) Short positions
(b)Long positions
3. Other (specify)

¹Including interest payments due within the corresponding time horizons. Foreign currency deposits held by nonresidents with central banks should also be included here. Securities referred to are those issued by the monetary authorities and the central government (excluding social security).

²In the event that there are forward or futures positions with a residual maturity greater than one year, which could be subject to margin calls, these should be reported separately under Section IV.

III. Contingent short-term net drains on foreign currency assets (nominal value)

¹Only bonds with a residual maturity greater than one year should be reported under this item, as those with shorter maturities will already be included in Section II, above.

²Reporters should distinguish potential inflows and potential outflows resulting from contingent lines of credit and report them separately, in the specified format.

¹In the event that there are options positions with a residual maturity greater than one year, which could be subject to margin calls, these should be reported separately under Section IV.

²These “stress-tests” are an encouraged, rather than a prescribed, category of information in the IMF’s Special Data Dissemination Standard (SDDS). Could be disclosed in the form of a graph. As a rule, notional value should be reported. However, in the case of cash-settled options, the estimated future inflow/outflow should be disclosed. Positions are “in the money” or would be, under the assumed values.

			Total	Maturity breakdown (residual maturity, where applicable)
				Up to 1 month	More than 1 month and up to 3 months	More than 3 months and up to 1 year
1. Contingent liabilities in foreign currency
	(a) Collateral guarantees on debt falling due within 1 year
	(b) Other contingent liabilities
2. Foreign currency securities issued with embedded options (put-table bonds)1
3. Undrawn, unconditional credit lines2
	(a)with other central banks
	(b)with banks and other financial institutions headquartered in the reporting country
	(c) with banks and other financial institutions headquartered outside the reporting country
4. Aggregate short and long positions of options in foreign currencies vis-à-vis the domestic currency1
	(a) Short positions
		(i) Bought puts
		(ii) Written calls
	(b) Long positions
		(i) Bought calls
		(ii) Written puts
PRO MEMORIA: In-the-money options2
(1) At current exchange rates
	(a) Short position
	(b)Long position
(2) + 5 % (appreciation of 5%)
	(a) Short position
	(b) Long position
			Total	Maturity breakdown (residual maturity, where applicable)
				Up to 1 month	More than 1 month and up to 3 months	More than 3 months and up to 1 year
(3) − 5 % (depreciation of 5%)
	(a) Short position
	(b) Long position
(4) +10 %
	(a) Short position
	(b) Long position
(5) − 10 %
	(a) Short position
	(b) Long position
(6) Other (specify)

¹Only bonds with a residual maturity greater than one year should be reported under this item, as those with shorter maturities will already be included in Section II, above.

²Reporters should distinguish potential inflows and potential outflows resulting from contingent lines of credit and report them separately, in the specified format.

¹In the event that there are options positions with a residual maturity greater than one year, which could be subject to margin calls, these should be reported separately under Section IV.

²These “stress-tests” are an encouraged, rather than a prescribed, category of information in the IMF’s Special Data Dissemination Standard (SDDS). Could be disclosed in the form of a graph. As a rule, notional value should be reported. However, in the case of cash-settled options, the estimated future inflow/outflow should be disclosed. Positions are “in the money” or would be, under the assumed values.

View Table

			Total	Maturity breakdown (residual maturity, where applicable)
				Up to 1 month	More than 1 month and up to 3 months	More than 3 months and up to 1 year
1. Contingent liabilities in foreign currency
	(a) Collateral guarantees on debt falling due within 1 year
	(b) Other contingent liabilities
2. Foreign currency securities issued with embedded options (put-table bonds)1
3. Undrawn, unconditional credit lines2
	(a)with other central banks
	(b)with banks and other financial institutions headquartered in the reporting country
	(c) with banks and other financial institutions headquartered outside the reporting country
4. Aggregate short and long positions of options in foreign currencies vis-à-vis the domestic currency1
	(a) Short positions
		(i) Bought puts
		(ii) Written calls
	(b) Long positions
		(i) Bought calls
		(ii) Written puts
PRO MEMORIA: In-the-money options2
(1) At current exchange rates
	(a) Short position
	(b)Long position
(2) + 5 % (appreciation of 5%)
	(a) Short position
	(b) Long position
			Total	Maturity breakdown (residual maturity, where applicable)
				Up to 1 month	More than 1 month and up to 3 months	More than 3 months and up to 1 year
(3) − 5 % (depreciation of 5%)
	(a) Short position
	(b) Long position
(4) +10 %
	(a) Short position
	(b) Long position
(5) − 10 %
	(a) Short position
	(b) Long position
(6) Other (specify)

¹Only bonds with a residual maturity greater than one year should be reported under this item, as those with shorter maturities will already be included in Section II, above.

²Reporters should distinguish potential inflows and potential outflows resulting from contingent lines of credit and report them separately, in the specified format.

¹In the event that there are options positions with a residual maturity greater than one year, which could be subject to margin calls, these should be reported separately under Section IV.

²These “stress-tests” are an encouraged, rather than a prescribed, category of information in the IMF’s Special Data Dissemination Standard (SDDS). Could be disclosed in the form of a graph. As a rule, notional value should be reported. However, in the case of cash-settled options, the estimated future inflow/outflow should be disclosed. Positions are “in the money” or would be, under the assumed values.

IV. Memo items

• (1) To be reported with standard periodicity and timeliness:¹

  • (a) short-term domestic currency debt indexed to the exchange rate

  • (b) financial instruments denominated in foreign currency and settled by other means (e.g., in domestic currency)²

  • (c) pledged assets³

  • (d) securities lent and on repo⁴

  • (e) financial derivative assets (net, marked to market)⁵

  • (f) derivatives (forward, futures, or options contracts) that have a residual maturity greater than one year, which are subject to margin calls.

• (2) To be disclosed less frequently (e.g., once a year):

  • (a) currency composition of reserves (by groups of currencies)