1. Nature of operations

The International Monetary Fund (IMF) is an international organization with 190 member countries. The IMF’s fundamental mission is to ensure the stability of the international monetary system. It does so in three ways: surveillance of the global economy and the economies of member countries; lending to countries with balance of payments difficulties; and giving practical help by providing technical assistance to members. It is headquartered in Washington, DC, USA.

The IMF conducts its operations and transactions through the General Department. The General Department comprises three accounts: (1) the General Resources Account (GRA); (2) the Investment Account (IA); and (3) the Special Disbursement Account (SDA).

1.1 General Resources Account

The financial operations of the IMF with its members are primarily conducted through the GRA. The assets and liabilities in the GRA reflect the payment of member quota subscriptions, use and repayment of GRA credit, borrowings and repayments to lenders, collection of charges from borrowers, payment of remuneration on creditor positions and interest to lenders, and other operations.

A core responsibility of the IMF is to provide financial assistance to member countries experiencing actual or potential balance of payments problems. Upon the request of a member country, GRA resources are made available either under a financing arrangement or in the form of outright purchases (disbursements). An arrangement is a decision by the IMF’s Executive Board (Executive Board) that gives a member the assurance that the IMF stands ready to provide resources to the member during a specified period and up to a specified amount, in accordance with the terms of the relevant financing instrument.

The Stand-By Arrangement (SBA) is designed for members with balance of payments problems expected to be resolved in the short to medium term. The Extended Fund Facility (EFF) is a special facility in the GRA for members with longer-term balance of payments problems, the resolution of which would require structural and more comprehensive economic reforms. Resources under the SBA and the EFF are made available in phased installments as the member implements economic policies and measures specified under the arrangement, subject to periodic reviews by the Executive Board.

The Flexible Credit Line (FCL) is available for members with very strong fundamentals, policies, and track records of policy implementation and is intended for both crisis prevention and resolution. The Short-term Liquidity Line (SLL) is designed to provide liquidity support and has several innovative features, including revolving access. It has the same qualification criteria as the FCL but is available only for members facing potential moderate short-term balance of payments needs arising due to capital account pressures. The Precautionary and Liquidity Line (PLL) is available for members with sound economic fundamentals but with some remaining vulnerabilities that preclude them from meeting the qualification criteria for the FCL and the SLL. The FCL, the SLL, and the PLL provide up-front access to GRA resources.

The financing instrument for outright purchases (disbursements) is the Rapid Financing Instrument (RFI), which is used by members that face an urgent balance of payments need without the need or capacity for a full-fledged program.

1.2 Investment Account

The IA holds resources transferred from the GRA, which are invested to broaden the IMF’s income base. The Rules and Regulations of the IA adopted by the Executive Board provide the framework for the implementation of the expanded investment authority authorized under the Fifth Amendment of the Articles of Agreement, which became effective in February 2011. The IA comprises two subaccounts: the Fixed-Income Subaccount and the Endowment Subaccount.

The Fixed-Income Subaccount holds resources transferred from the GRA that are not related to profits from gold sales. With a view to generating income while protecting the IMF’s balance sheet, the investment objective of the Fixed-Income Subaccount is to produce returns in Special Drawing Rights (SDRs) terms in excess of the three-month SDR interest rate (see Notes 2.1 and 2.2) over time while minimizing the frequency and extent of negative returns and underperformance over an investment horizon of three to four years.

The Endowment Subaccount was credited with SDR 4.4 billion in profits from gold sales during financial years 2010 and 2011. The Endowment Subaccount’s investment objective is to achieve a real return of 3 percent in US dollar terms over the long term to contribute to covering the IMF’s administrative expenditures, while preserving the long-term real value of these assets.

1.3 Special Disbursement Account

The SDA is the vehicle used to receive profits from the sale of gold held by the IMF at the time of the Second Amendment of the IMF’s Articles of Agreement (April 1978). SDA resources can be used for various purposes, as specified in the Articles of Agreement, including transfers to the GRA for immediate use in operations and transactions, transfers to the IA, or operations and transactions that are not authorized by other provisions of the Articles of Agreement but are consistent with the mandate of the IMF, in particular to provide balance of payments assistance on special terms to low-income member countries.

1.4 Other entities administered by the IMF

The IMF also administers the Special Drawing Rights Department (SDR Department), trusts (Concessional Lending and Debt Relief Trusts), and special purpose accounts (Administered Accounts) established to fund financial and technical services consistent with the IMF’s purposes. As the General Department does not have control over these entities, their financial statements are presented separately.

The resources of the SDR Department are held separately from the assets of all the other accounts owned or administered by the IMF. As specified in the IMF’s Articles of Agreement, these resources may not be used to meet the liabilities, obligations, or losses incurred in the operations of the General Department (or vice versa), except that expenses of conducting the business of the SDR Department are paid by the General Department and are then reimbursed by the SDR Department.

The resources of the trusts and special purpose accounts are contributed by members, by other financial institutions, or by the IMF through the SDA. The assets and liabilities of the trusts and special purpose accounts are separate from the assets and liabilities of the General Department. The assets of the trusts and special purpose accounts cannot be used to meet the liabilities, obligations, or losses incurred in the operations of the General Department. The General Department can be reimbursed for the expenses incurred in conducting the business of certain trusts and accounts in accordance with the IMF’s Articles of Agreement and relevant decisions of the Executive Board.

1.5 Impact of the COVID-19 pandemic

These financial statements are being prepared in the context of the ongoing COVID-19 pandemic. The pandemic has created severe disruptions in global economic activity, with many IMF members facing liquidity shortages. The IMF has responded to the crisis with unprecedented speed and magnitude of financial assistance, to help countries, notably to protect the most vulnerable and set the stage for economic recovery. A significant number of countries have benefited from emergency financing through RFI purchases since the onset of the pandemic (see Note 5.1). The IMF has also approved financial assistance under its lending arrangements and augmented existing lending arrangements to accommodate urgent new needs arising from the impact of the pandemic (see Schedule 3).

As a result of this increased financing activity, the General Department’s credit exposure has increased (see Notes 4.2.1.1 and 4.2.1.2). The General Department continues to manage its risks in accordance with its existing risk-management framework (see Note 4). As of the date of these financial statements, there had been no negative impact on the operational results of the General Department, including from the impairment analysis of its credit portfolio (see Note 5.1). As the COVID-19 pandemic continues to evolve, the magnitude and impact remain uncertain and are dependent on future developments that cannot be reasonably predicted at this time. It is thus difficult to assess the full extent and duration of the pandemic’s impact on the General Department with any degree of certainty. See also Note 2.3 for the most significant estimates and judgements used in the preparation of these financial statements.

The risk management practices described in Note 4.3 have effectively mitigated the risk exposure of the effects of the COVID-19 pandemic on the investment portfolios. The valuations of mark-to-market financial instruments experienced a brief decline in value at the onset of the pandemic but have since fully and rapidly recovered due largely to the strong equity and credit market performance. The investment portfolios suffered no permanent impairment as a result of the COVID-19 crisis. The effects of the COVID-19 pandemic on investments are also reflected in the Value at Risk (see Note 4.3.2.3). The valuation of investments held at amortized cost was not impacted by the COVID-19 pandemic.

2.1 Unit of account

The financial statements are presented in SDRs, which is the IMF’s unit of account. The value of the SDR is determined daily by the IMF by summing specific amounts of the basket currencies in US dollar equivalents on the basis of market exchange rates. The IMF generally reviews the composition of the SDR valuation basket at five-year intervals. These reviews cover the currencies to be included in the SDR valuation basket (along with the criteria for the selection of currencies), determine the relative weights of those currencies, and assess the financial instruments that are used to calculate the SDR interest rate. The current basket consists of five currencies. The specific amounts of the currencies in the basket, effective October 1, 2016, were as follows:

SDR basket currency	Amount
Chinese renminbi	1.0174
Euro	0.38671
Japanese yen	11.900
Pound sterling	0.085946
US dollar	0.58252

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SDR basket currency	Amount
Chinese renminbi	1.0174
Euro	0.38671
Japanese yen	11.900
Pound sterling	0.085946
US dollar	0.58252

At April 30, 2021, SDR 1 was equal to US$1.43599 (US$1.36640 at April 30, 2020).

The current SDR valuation basket was originally scheduled to expire by end-September 2021. However, the Board has approved a decision to extend this current basket’s effectiveness to end-July 2022.

2.2 SDR interest rate

The SDR interest rate provides the basis for basic charges levied on credit outstanding (see Note 17), interest on SDR holdings (Note 6), remuneration paid on members’ reserve tranche positions (Note 18), and interest on borrowings (Note 14).

The SDR interest rate is determined weekly by reference to a weighted average of yields or rates on short-term instruments in the money markets of the members whose currencies are included in the SDR valuation basket:

SDR basket currency	Yield or rate
Chinese renminbi	Three-month benchmark yield for China Treasury bonds as published by the China Central Depository and Clearing Co., Ltd.
Euro	Three-month spot rate for euro area central government bonds with a minimum rating of AA published by the European Central Bank
Japanese yen	Three-month Treasury discount bills
Pound sterling	Three-month Treasury bills
US dollar	Three-month Treasury bills

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SDR basket currency	Yield or rate
Chinese renminbi	Three-month benchmark yield for China Treasury bonds as published by the China Central Depository and Clearing Co., Ltd.
Euro	Three-month spot rate for euro area central government bonds with a minimum rating of AA published by the European Central Bank
Japanese yen	Three-month Treasury discount bills
Pound sterling	Three-month Treasury bills
US dollar	Three-month Treasury bills

The SDR interest rate is subject to a floor of 0.050 percent and is rounded to three decimal places.

The average SDR interest rate was 0.077 percent per annum and 0.765 percent per annum during the financial years ended April 30, 2021, and 2020, respectively.

2.3 Use of estimates and judgement

The preparation of financial statements requires management to make judgements, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

The most significant estimates and judgements used in applying accounting policies include expected credit losses measurement for credit outstanding (see Notes 3.2.1.1 and 5.1), fair value measurement of financial instruments (see Notes 3.10 and 8), and actuarial assumptions used in calculating the net assets/liabilities under retirement benefit plans (see Note 11.3).

3.1 Financial instruments

Financial instruments include financial assets and financial liabilities described in Notes 3.2 and 3.7.

Measurement at initial recognition

Financial instruments are recognized when the General Department becomes a party to the contractual provisions of the instrument. The General Department uses settlement date accounting for all financial instruments except for investments, which are accounted for using trade date accounting (see Note 3.2.3). At initial recognition, a financial instrument is measured at its fair value, which is best evidenced by the transaction amount.

Derecognition

Financial assets, or a portion thereof, are derecognized when the contractual rights to receive the cash flows from the assets have expired, or when they have been transferred and either (1) the General Department transfers substantially all the risks and rewards of ownership, or (2) the General Department neither transfers nor retains substantially all the risks and rewards of ownership but the General Department has not retained control.

Financial liabilities are derecognized when they are extinguished (i.e., when the obligation is discharged, canceled, or expires).

Classification and subsequent measurement of financial assets

A financial asset is classified on initial recognition based on two factors: the business model for managing the financial asset and its contractual cash flow characteristics.

Financial assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost (AC). Interest income from these financial assets is included in the statements of income using the effective interest method. Any gain or loss arising on derecognition is recognized in the statements of income.

Financial assets that are held for collection of contractual cash flows and for selling, where the assets’ cash flows represent solely payments of principal and interest, would be measured at fair value through other comprehensive income (FVOCI). The General Department did not have financial assets at FVOCI during the financial years ended April 30, 2021, and 2020.

All other financial assets that do not meet the criteria to be measured at AC or FVOCI are measured at fair value, with changes in fair value recognized in profit or loss (FVPL).

Impairment

At each reporting date, the General Department assesses on a forward-looking basis the expected credit losses (ECL) associated with its financial assets at AC and with the undrawn balances under its lending commitments. The measurement of ECL reflects: (1) an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes; (2) the time value of money; and (3) reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions, and forecasts of future economic conditions.

If the General Department needed to recognize ECL, they would be recorded as impairment allowances for assets at AC and as a liability provision for undrawn commitments.

Should any financial asset become credit-impaired, interest income would be calculated for it by applying the effective interest rate to its amortized cost (i.e., net of the impairment allowance).

Classification and subsequent measurement of financial liabilities

Derivative financial liabilities are measured at fair value with changes in fair value recognized in profit or loss.

All other financial liabilities are measured at amortized cost. Interest expense from these financial liabilities is included in the statements of income using the effective interest method.

3.2 Financial assets

3.3 Cash and cash equivalents

Usable currencies and SDR holdings are considered cash and cash equivalents in the statements of cash flows.

3.4 Gold holdings

Gold holdings (acquired prior to the Second Amendment of the Articles of Agreement in April 1978) are carried at historical cost using the specific identification method. The carrying value is determined by the restrictions on the use of the IMF’s gold holdings and the disposition of profits from the sale of gold. In accordance with the provisions of the Articles of Agreement, whenever the IMF sells gold that was held on the date of the effectiveness of the Second Amendment of the Articles of Agreement, that portion of the proceeds equal to the historical cost must be placed in the GRA. Any proceeds in excess of the historical cost will be held in the SDA or transferred to the Endowment Subaccount of the IA (see Note 9). The IMF may also sell such gold holdings to those members that were members on August 1, 1975, in exchange for their currencies and at a price equal to the historical cost.

3.5 Property, plant and equipment and intangible assets

Property, plant and equipment and intangible assets are measured at cost less accumulated depreciation or amortization. Property, plant and equipment and intangible assets are capitalized and depreciated or amortized over the estimated remaining useful lives using the straight-line method. Buildings are depreciated over 30 years and other property, plant and equipment over three to 20 years. Leasehold improvements are depreciated over the term of the lease agreement. Software is amortized over three to five years.

3.6 Post-employment benefits

The IMF sponsors various post-employment benefit plans for its employees, which include defined benefit and other post-employment benefits such as medical and life insurance benefits.

The net asset/liability under each retirement benefits plan recognized in the statements of financial position is the present value of the defined benefit obligation less the fair value of the plan assets. Changes resulting from remeasurements are reported in other comprehensive income/(loss). The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using market yields on high-quality corporate bonds using the projected unit credit method.

Net periodic pension cost includes service cost and net interest cost on the net assets/liabilities under retirement benefit plans.

3.7 Financial liabilities

3.8 Provisions

Provisions are recognized when the IMF has a current legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are measured at the present value of the amounts that are expected to be paid to settle the obligations.

3.9 Foreign currency translation

Transactions denominated in currencies and not in SDRs are recorded at the rate of exchange on the date of the transaction. Assets and liabilities denominated in other currencies are reported using the SDR exchange rate on the date of the financial statements. Exchange differences arising from the settlement of transactions at rates different from those at the originating date of the transactions are included in the determination of net income.

3.10 Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous market.

A three-level fair value hierarchy is used to determine fair value under which financial instruments are categorized based on the priority of the inputs to the valuation technique. The fair value hierarchy has the following levels:

Level 1:	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date
Level 2:	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)
Level 3:	Inputs for the asset or liability that are not based on observable market data (unobservable inputs)

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Level 1:	Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date
Level 2:	Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices)
Level 3:	Inputs for the asset or liability that are not based on observable market data (unobservable inputs)

When the inputs used to measure the fair value of an asset or liability fall within multiple levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest-level input that is significant to the fair value measurement of the instrument in its entirety. Thus, a Level 3 fair value measurement may include inputs that are both observable and unobservable.

The valuation techniques used to determine fair value are described in Note 8.

3.11 Amendments to existing standards effective in future years

The following new standards and amendments to existing standards issued by the IASB will become effective in future financial years.

Amendments to IFRS 9, “Financial instruments” were issued in May 2020 to clarify certain aspects of derecognition of financial liabilities. The amendments are effective for annual periods starting on or after January 1, 2022. The amendments will be adopted by the General Department for the financial year ending April 30, 2023 and are not expected to have a material effect on the General Department’s financial statements.

Amendments to IFRS 9, “Financial Instruments”, and IFRS 7, “Financial Instruments: Disclosures” were issued in August 2020 to address financial reporting issues related to the reform of an interest rate benchmark, including its replacement with alternative benchmark rates. The amendments are effective for annual periods starting on or after January 1, 2021. The amendments will be adopted by the General Department for the financial year ending April 30, 2022 and are not expected to have a material effect on the General Department’s financial statements.

Amendments to IFRS 16, “Leases” were issued in May 2020, some of which are effective for annual periods starting June 1, 2020 and some for annual periods starting January 1, 2022. These amendments will be adopted by the General Department for the financial years ending April 30, 2022, and 2023, respectively, and are not expected to have a material effect on the General Department’s financial statements.

4.1 Risk management framework

By virtue of its role established through the Articles of Agreement, the IMF faces a range of financial and nonfinancial risks. The Executive Board has approved a risk acceptance statement guiding risk acceptance and assessment across the IMF’s activities. The IMF has adopted the three lines of defense model for risk management.

• Risks inherent in day-to-day operations are mitigated by establishing and maintaining a system of internal controls.

• A risk management function is responsible for developing and maintaining the risk management framework, fostering the development of risk management tools, and reporting on the General Department’s overall risk profile, highlighting areas where additional mitigation efforts are needed.

• An internal audit function is responsible for providing an independent assessment of the effectiveness of governance and internal control processes.

Oversight is provided by committees established to monitor and make decisions in specific risk areas, which supports the cycle of risk assessment, ownership, and mitigation vis-à-vis risk acceptance.

4.2 Financial assets and liabilities other than investments

Financial assets and liabilities other than investments are exposed to credit, market, and liquidity risks.

4.2.1 Credit risk on financial assets and liabilities other than investments

Credit risk is the risk of suffering financial losses, should any of the IMF’s members fail to fulfill their financial obligations to the General Department. Credit risk arises on credit outstanding and undrawn committed amounts under approved financing commitments.

Credit risk is inherent in the IMF’s unique role in the international monetary system because the IMF has limited ability to diversify its credit portfolio and generally provides financing when other sources of credit are not available to a member. In addition, the IMF’s credit concentration is generally high due to the nature of the financial assistance provided to its member countries.

Measures to help mitigate the IMF’s credit risk in financing arrangements include program design and conditionality, which serve to help member countries solve their balance of payments problems within the period of an IMF-supported program and to provide the needed assurances that the member will be able to repay the IMF. Other risk mitigating policies include access limits, post financing assessments (formerly referred to as post-program monitoring), surcharge policies, preventive and remedial measures for dealing with overdue financial obligations, and the burden-sharing mechanism (see Note 13).

The IMF has established limits on overall access to resources in the GRA, except for the FCL arrangements that are not subject to any access limits (for limits applicable to SLL arrangements, see below). The annual limit is normally set at 145 percent of a member’s quota, with a cumulative limit of 435 percent of a member’s quota (net of scheduled repurchases). In response to the COVID-19 crisis, the annual limit was temporarily increased to 245 percent of quota annually for the period from July 13, 2020 through December 31, 2021. Further, in September 2020, the IMF established additional limits as policy safeguards when a member requests financing that entails high levels of combined access to resources from the GRA and Poverty Reduction and Growth Trust (PRG Trust) (there were no limits on combined access to GRA and PRG Trust resources prior to September 2020).

Access in excess of these limits can be granted in exceptional circumstances. Except for PLL arrangements, there is no prespecified maximum on exceptional access to IMF resources, which is assessed on a case-by-case basis in accordance with the policy framework on exceptional access. The IMF assesses factors such as the size of balance of payments needs, the member’s debt sustainability and its ability to regain access to financing from other sources, the member’s capacity to repay the Fund, and the strength of policies to be adopted.

PLL arrangements have a cumulative access limit of 500 percent of quota (net of scheduled repurchases). Access under a six-month PLL arrangement is subject to a limit of 125 percent of quota. In exceptional circumstances where a member is experiencing or has the potential to experience larger short-term balance of payments needs due to the impact of exogenous shocks, including heightened regional or global stress conditions, access under the PLL is subject to a higher limit of 250 percent of quota.

SLL arrangements have revolving access, and multiple purchases and repurchases may take place during the course of the arrangement, subject to a limit of 145 percent of quota on the total credit outstanding at any given date under current or any prior SLL arrangements.

The annual limit for RFI purchases is set at 50 percent of a member’s quota, with a cumulative limit of 100 percent of a member’s quota (net of scheduled repurchases). These limits were temporarily increased to 100 percent of quota annually and 150 percent of quota cumulatively (net of scheduled repurchases) for the period from April 6, 2020 through December 31, 2021.

Purchases under SBA and EFF arrangements are made in tranches and are subject to conditionality in the form of performance criteria, structural benchmarks, and prior actions, as well as regular reviews by the Executive Board.

In addition, the IMF has adopted a safeguards policy to mitigate the risk of misuse of resources and a misreporting policy to deal with incorrect reporting of data or performance against any conditions under an IMF-supported program. Safeguards assessments of member central banks are undertaken to provide the IMF with reasonable assurance that the central bank’s legal structure, governance, control, reporting, and auditing systems are adequate to maintain the integrity of its operations and to manage resources, including IMF disbursements. When IMF resources are provided as direct budget financing to the government, the safeguards policy also requires that IMF disbursements be deposited at the central bank, and that an appropriate framework agreement between the central bank and the government be in place to ensure timely servicing of the member’s financial obligations to the IMF. Further, a fiscal safeguards review of the state treasury is required for cases where a member requests exceptional access, and at least 25 percent of IMF funds are expected to be used for direct budget financing.

The maximum credit risk exposure is the carrying value of the IMF’s credit outstanding and undrawn commitments.

4.2.1.1 Credit outstanding

Credit outstanding comprised SDR 89,788 million and SDR 73,575 million at April 30, 2021, and 2020, respectively (see Note 5). The concentration of GRA outstanding credit by region was as follows:

	April 30, 2021		April 30, 2020
	(in millions of SDRs and as a percentage of total GRA credit outstanding)
Africa	10,438	11.6%	5,244	7.1%
Asia and Pacific	1,886	2.1%	1,110	1.5%
Europe	9,914	11.0%	12,359	16.8%
Middle East and Central Asia	24,490	27.3%	20,561	28.0%
Western Hemisphere	43,060	48.0%	34,301	46.6%
Total	89,788	100.0%	73,575	100.0%

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	April 30, 2021		April 30, 2020
	(in millions of SDRs and as a percentage of total GRA credit outstanding)
Africa	10,438	11.6%	5,244	7.1%
Asia and Pacific	1,886	2.1%	1,110	1.5%
Europe	9,914	11.0%	12,359	16.8%
Middle East and Central Asia	24,490	27.3%	20,561	28.0%
Western Hemisphere	43,060	48.0%	34,301	46.6%
Total	89,788	100.0%	73,575	100.0%

The use of credit in the GRA by the largest users was as follows:

	April 30, 2021		April 30, 2020
	(in millions of SDRs and as a percentage of total GRA credit outstanding)
Largest user of credit	31,914	35.5%	31,914	43.4%
Three largest users of credit	52,294	58.2%	46,999	63.9%
Five largest users of credit	62,067	69.1%	57,286	77.9%

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	April 30, 2021		April 30, 2020
	(in millions of SDRs and as a percentage of total GRA credit outstanding)
Largest user of credit	31,914	35.5%	31,914	43.4%
Three largest users of credit	52,294	58.2%	46,999	63.9%
Five largest users of credit	62,067	69.1%	57,286	77.9%

The five largest users of GRA credit at April 30, 2021, in descending order, were Argentina, Egypt, Ukraine, Pakistan, and Ecuador (Argentina, Egypt, Ukraine, Pakistan, and Greece at April 30, 2020). Credit outstanding by member is presented in Schedule 1.

The General Department’s credit outstanding has increased as a result of the impact of the COVID-19 pandemic (see Note 1.5). A significant number of countries have benefited from emergency financial assistance under the RFI since the onset of the pandemic (see Note 5.1), including 20 countries with a total disbursed amount of SDR 9,215 million that did not have credit outstanding from the IMF at March 31, 2020. There is no ex post program-based conditionality or reviews in the RFI, with overall conditionality limited.

4.2.1.2 Undrawn commitments

Undrawn commitments under GRA arrangements amounted to SDR 93,457 million and SDR 68,574 million at April 30, 2021, and 2020, respectively. Commitments and undrawn balances under current arrangements are presented in Schedule 3.

In addition, purchases under RFIs in the amount of SDR 630 million had been approved by the Executive Board, but not yet disbursed at April 30, 2021 (SDR 1,726 million at April 30, 2020).

The undrawn commitments under GRA arrangements have also increased as a result of the COVID-19 pandemic (see Note 1.5) as the IMF has approved new financial assistance under its lending arrangements (including to four countries that had not had a lending arrangement with, or credit outstanding to, the IMF at March 31, 2020) and augmented existing lending arrangements to accommodate urgent new needs arising from the impact of the pandemic.

4.2.3 Liquidity risk on financial assets and liabilities other than investments

Liquidity risk is the risk to the General Department of nonavailability of resources to meet the financing needs of members and its own obligations. The IMF must have usable resources available to meet members’ demand for IMF financing. While the IMF’s resources are largely of a revolving nature, uncertainties in the timing and amount of credit extended to members during financial crises expose the IMF to liquidity risk. Moreover, the IMF must also stand ready to provide resources for unexpected needs, for example, to (1) meet, upon a member’s representation of need, potential demands for a drawing on the member’s reserve tranche position and (2) authorize drawings to meet demands for encashment of creditor claims under the New Arrangements to Borrow (NAB) or the bilateral borrowing agreements (see Note 14).

The IMF manages its liquidity risk by closely scrutinizing developments in its liquidity position. The IMF’s main liquidity measure—Forward Commitment Capacity (FCC)-represents the IMF’s capacity to make new GRA resources available to its members over the following 12 months (see Schedule 2).

Long-term liquidity needs are addressed by reviewing the adequacy of quota-based resources. General reviews of members’ quotas are conducted at regular intervals to evaluate the adequacy of quota-based resources to meet members’ demand for IMF financing. The IMF may also borrow to supplement its quota resources (see Note 14).

Short-term liquidity needs for financing activities are reviewed and approved by the Executive Board on a periodic basis through a financial transactions plan for quota resources, and the resource mobilization plan for borrowed resources.

4.2.3.1 Maturity profile of financial assets and liabilities other thaninvestments

Depending on the type of financing instrument, repurchase periods for GRA credit vary from 3¼ to 10 years. Scheduled and overdue repurchases of outstanding GRA credit are summarized below:

	April 30, 2021	April 30, 2020
Financial year	(in millions of SDRs)
2021	—	3,182
2022	8,961	10,665
2023	19,777	20,742
2024	24,006	19,553
2025	18,183	9,176
2026	7,842	3,289
2027 and beyond	10,877	6,825
Overdue	142	143
Total	89,788	73,575

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	April 30, 2021	April 30, 2020
Financial year	(in millions of SDRs)
2021	—	3,182
2022	8,961	10,665
2023	19,777	20,742
2024	24,006	19,553
2025	18,183	9,176
2026	7,842	3,289
2027 and beyond	10,877	6,825
Overdue	142	143
Total	89,788	73,575

Repayments of outstanding borrowings are determined according to the schedule of repurchases of credit that was financed by borrowed resources. They also take into account the maximum maturity of outstanding borrowings, which was equal to 10 years for all outstanding borrowings. Scheduled repayments of outstanding borrowings are summarized below:

	April 30, 2021	April 30, 2020
Financial year	(in millions of SDRs)
2021	—	1,758
2022	1,402	2,682
2023	1,741	2,467
2024	1,893	1,893
2025	102	103
Total	5,138	8,903

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	April 30, 2021	April 30, 2020
Financial year	(in millions of SDRs)
2021	—	1,758
2022	1,402	2,682
2023	1,741	2,467
2024	1,893	1,893
2025	102	103
Total	5,138	8,903

Repurchases during the financial years ended April 30, 2021, and 2020, included advance repurchases of SDR 3,677 million and SDR 2,751 million, respectively. These advance repurchases resulted in earlier than scheduled repayments of outstanding borrowings of SDR 2,094 million and SDR 1,996 million, respectively.

Future interest payments on borrowings calculated at the SDR interest rate at April 30, 2021 represent SDR 2 million for the financial year ending April 30, 2022. Thereafter, a total of SDR 2 million will be paid through the last repayment date.

Usable and other currencies, SDR holdings, and quota subscriptions do not have maturity dates.

4.3 Investments

Investments are exposed to credit, market, and liquidity risks.

4.3.1 Credit risk on investments Credit risk on investments represents the potential loss if issuers and counterparties were to default on their contractual obligations.

Credit risk in the IA is minimized by limiting fixed-income investments to financial instruments with a credit rating at the time of acquisition equivalent to at least A (based on Standard & Poor’s long-term rating scale) for the Fixed-Income Subaccount, and at least BBB+ for sovereign bonds and BBB– for corporate bonds and private infrastructure debt for the Endowment Subaccount, except for instruments issued by the Bank for International Settlements (BIS), which does not have a credit rating, central bank deposits, and short-term instruments. Limited holdings in the Endowment Subaccount of corporate bonds and private infrastructure debt rated below BBB– are permitted under the Rules and Regulations of the Investment Account. See Notes 7.1 and 7.2 for eligible investment classes for the Fixed-Income and Endowment Subaccounts, respectively. Counterparty risk for derivative instruments is mitigated by strict exposure limits, credit rating requirements, and collateral requirements.

The carrying amount of the fixed-income instruments represents the maximum exposure to credit risk. The maximum exposure to credit risk for derivative instruments is the amount of any unrealized gains on such contracts.

The credit risk exposure for fixed-income instruments in the IA was as follows:

	Fixed-Income Subaccount
	April 30, 2021	April 30, 2020
	(as a percentage of total investments in fixed-income instruments)
Not rated (BIS)	15.6%	21.7%
AAA	36.2%	23.4%
AA+ to AA–	21.0%	27.1%
A+ to A	26.4%	27.3%
BBB+	0.8%	0.5%
Total	100.0%	100.0%

View Table

	Fixed-Income Subaccount
	April 30, 2021	April 30, 2020
	(as a percentage of total investments in fixed-income instruments)
Not rated (BIS)	15.6%	21.7%
AAA	36.2%	23.4%
AA+ to AA–	21.0%	27.1%
A+ to A	26.4%	27.3%
BBB+	0.8%	0.5%
Total	100.0%	100.0%

The credit risk exposure for derivative instruments in the Fixed-Income Subaccount amounted to SDR 38 million and SDR 22 million at April 30, 2021, and 2020, respectively.

	Endowment Subaccount
	April 30, 2021	April 30, 2020
	(as a percentage of total investments in fixed-income securities)
AAA	6.4%	6.4%
AA+ to AA–	56.9%	56.1%
A+ to A–	21.7%	22.1%
BBB+ to BBB–	15.0%	15.3%
BB+	—	0.1%
Total	100.0%	100.0%

View Table

	Endowment Subaccount
	April 30, 2021	April 30, 2020
	(as a percentage of total investments in fixed-income securities)
AAA	6.4%	6.4%
AA+ to AA–	56.9%	56.1%
A+ to A–	21.7%	22.1%
BBB+ to BBB–	15.0%	15.3%
BB+	—	0.1%
Total	100.0%	100.0%

The credit risk exposure for derivative instruments in the Endowment Subaccount amounted to SDR 5 million and SDR 10 million at April 30, 2021, and 2020, respectively.

4.3.2 Market risk on investments

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in market prices. Market risk for investments includes interest rate risk, exchange rate risk, and other price risks.

The investment objectives of the Fixed-Income and Endowment Subaccounts differ, and the investment strategies, including asset allocation and risk tolerance, are tailored for each of the subaccounts, thereby exposing them to different types of market risk.

4.3.2.1 Fixed-Income Subaccount

The Fixed-Income Subaccount holds debt obligations of a broad range of issuers within limits defined by the Rules and Regulations of the IA (see Note 7.1 for the eligible investments). Market risk is mitigated through asset class diversification and within asset classes through broad security selection.

The Fixed-Income Subaccount authorizes the use of derivative instruments for managing interest rate risk, currency hedging, or reducing costs in the context of portfolio balancing, benchmark replication, and market access. Safeguards are in place against short selling and financial leverage.

Exchange rate risk is mitigated by hedging investments denominated in non-SDR currencies into SDR basket currencies with the objective of preserving the Fixed-Income Subaccount’s SDR basket composition.

4.3.2.2 Endowment Subaccount

For the passively managed portion of the portfolio, investments are divided into eight categories, which are subject to varying market risks and benefits from diversification properties (see Note 7.2 for the eligible investments). For the actively managed portion of the portfolio, the Rules and Regulations of the IA establish a bond/equity allocation, but no strategic asset allocation is set for the subcomponents of these two broad asset classes. Market risk is mitigated through asset class diversification and within asset classes through broad security selection.

The passively managed portion of the Endowment Subaccount authorizes the use of derivative instruments for managing interest rate risk, currency hedging, or to reduce costs in the context of portfolio balancing, benchmark replication, and market access. The actively managed portion of the Endowment Subaccount permits wider use of derivative instruments, but subject to risk control parameters. Safeguards are in place against short selling and financial leverage.

Because the IMF’s administrative expenditures are largely in US dollars and the Endowment Subaccount’s general objective is to contribute to covering such expenditures (see Note 1.2), the performance of the Endowment Subaccount is measured in US dollars as the base currency but translated into SDRs for financial reporting. For the passively managed portion of the Endowment Subaccount, the Rules and Regulations of the IA provide for hedging against the exchange rate risk for fixed-income instruments denominated in developed market currencies vis-à-vis the US dollar. For the actively managed portion, the managers have the discretion to hedge exchange rate risks. The valuation changes from exchange rate fluctuations are included in the determination of investment income.

4.3.2.3 Value at Risk

Exposures to market risk, including interest rate, exchange rate, and other price risks, are measured using value at risk (VaR), which considers known market risks in each of the asset categories and the effect of asset class diversification. The VaR estimates reported below represent the maximum potential loss in value of the assets over the next year due to adverse market movements with a 95 percent confidence level. There is a 1 in 20 chance that annual losses on investment assets are equal to or exceed the reported VaR. Losses in a single year could exceed the reported VaR by a significant amount.

The VaR model is based on historical simulations with a three-year look back period, and monthly overlapping risk factor returns for each individual instrument in the portfolios to produce plausible future scenarios based on these simulations. In each simulation scenario, risk factor data on the valuation date is shocked according to past observations and each instrument is repriced, resulting in a hypothetical empirical distribution of returns. There is no standard methodology for estimating VaR, and the modeling of the market risk characteristics of the investments involves many assumptions and some limited proxy or substitutes. Different assumptions or methodologies would produce significantly different VaR estimates.

The VaR for the Fixed-Income Subaccount portfolio was as follows:

	April 30, 2021	April 30, 2020
	(in millions of SDRs)
Tranche 1 (see Note 7)	65	87
Tranche 2 (see Note 7)	58	50
Diversification effects	(47)	(14)
Total Fixed-Income Subaccount	76	123

View Table

	April 30, 2021	April 30, 2020
	(in millions of SDRs)
Tranche 1 (see Note 7)	65	87
Tranche 2 (see Note 7)	58	50
Diversification effects	(47)	(14)
Total Fixed-Income Subaccount	76	123

The VaR for the Endowment Subaccount portfolio was as follows:

		April 30, 2021	April 30, 2020
		(in millions of SDRs)
Passively managed portfolio:
	Developed market equities	493	343
	Emerging market equities	203	131
	Developed market sovereign bonds	65	77
	Developed market corporate bonds	51	74
	Emerging market bonds	17	13
	Inflation-linked bonds	52	40
	Real estate investment trusts	97	50
	Private infrastructure debt	5	—
	Diversification effects	(236)	(254)
Total for passively managed portfolio		747	474
Actively managed portfolio:
	Fixed-income securities	10	13
	Equity securities	39	21
	Diversification effects	(11)	(9)
Total for actively managed portfolio		38	25

View Table

		April 30, 2021	April 30, 2020
		(in millions of SDRs)
Passively managed portfolio:
	Developed market equities	493	343
	Emerging market equities	203	131
	Developed market sovereign bonds	65	77
	Developed market corporate bonds	51	74
	Emerging market bonds	17	13
	Inflation-linked bonds	52	40
	Real estate investment trusts	97	50
	Private infrastructure debt	5	—
	Diversification effects	(236)	(254)
Total for passively managed portfolio		747	474
Actively managed portfolio:
	Fixed-income securities	10	13
	Equity securities	39	21
	Diversification effects	(11)	(9)
Total for actively managed portfolio		38	25

4.3.3 Liquidity risk on investments

Liquidity risk on investments refers to the risk that an investment will not have an active buyer or seller when traded, which could negatively affect the price of the investment.

The IA’s liquidity needs are low and the liquidity risk is minimal because both subaccounts hold the majority of their resources in readily marketable short-term investments.

4.3.3.1 Maturity profile of investments

The maturities of the fixed-income securities and derivatives in the Fixed-Income Subaccount were as follows:

	April 30, 2021	April 30, 2020
Financial year	(in millions of SDRs)
2021	—	6,424
2022	6,909	3,711
2023	3,131	2,229
2024	2,179	1,343
2025	1,554	1,638
2026	1,254	184
2027 and beyond	1,579	1,352
Total	16,606	16,881

View Table

	April 30, 2021	April 30, 2020
Financial year	(in millions of SDRs)
2021	—	6,424
2022	6,909	3,711
2023	3,131	2,229
2024	2,179	1,343
2025	1,554	1,638
2026	1,254	184
2027 and beyond	1,579	1,352
Total	16,606	16,881

The maturities of the fixed-income securities and derivatives in the Endowment Subaccount were as follows:

	April 30, 2021	April 30, 2020
Financial year	(in millions of SDRs)
2021	—	309
2022	392	398
2023	376	357
2024	396	397
2025	455	449
2026	461	319
2027 and beyond	1,649	1,356
Total	3,729	3,585

View Table

	April 30, 2021	April 30, 2020
Financial year	(in millions of SDRs)
2021	—	309
2022	392	398
2023	376	357
2024	396	397
2025	455	449
2026	461	319
2027 and beyond	1,649	1,356
Total	3,729	3,585

Investments in both subaccounts largely represent liquid investments, which could be sold earlier than their maturity, whenever necessary.

4.4 Post-employment benefit plans

The General Department is exposed to investment, liquidity, and longevity risks associated with post-employment benefit plans (the Plans). These risks are balanced against the need to meet the financial obligations of each plan. The Plans have adopted general guidelines on permissible investments and plan assets are invested according to a strategic asset allocation, which is expected to generate a rate of return at or in excess of the rate of growth in the Plans’ liabilities. The strategic asset allocation is reviewed periodically by the Investment Committee. The strategic asset allocation is designed to minimize the level of portfolio market risk (volatility) for the targeted rate of return, while better aligning portfolio volatility with the potential volatility of the Plans’ liabilities. Through a global, multiple-asset-class investment approach, the portfolio risk is reduced for any targeted rate of return, because asset class returns are not perfectly correlated as regional and global economic, financial, and political events unfold. The Plans do not utilize specific, targeted asset-liability matching instruments or strategies such as annuities, longevity swaps, cash flow matching, or duration matching.

The primary objective with respect to liquidity is to have sufficient liquid resources available to pay benefits when due. This risk is monitored to ensure that payments due to the participants and beneficiaries can be met from the holdings of cash and highly liquid investments of the Plans.

5.1 Credit outstanding

At April 30, 2021, and 2020, members’ use of GRA credit was represented by currency holdings of SDR 89,788 million and SDR 73,575 million, respectively.

Changes in the outstanding use of GRA credit under the various facilities of the GRA were as follows:

¹Other facilities include legacy credit under Enlarged Access and Supplementary Financing Facility.

		April 30, 2020	Purchases	Repurchases	April 30, 2021
		(in millions of SDRs)
Credit tranches:
	SBA	34,520	4,481	(809)	38,192
	FCL	—	3,750	—	3,750
	PLL	2,151	—	(651)	1,500
	RFI	6,380	9,622	(483)	15,519
EFF		30,437	5,103	(4,800)	30,740
Other facilities1		87	—	—	87
Total credit outstanding		73,575	22,956	(6,743)	89,788

¹Other facilities include legacy credit under Enlarged Access and Supplementary Financing Facility.

View Table

		April 30, 2020	Purchases	Repurchases	April 30, 2021
		(in millions of SDRs)
Credit tranches:
	SBA	34,520	4,481	(809)	38,192
	FCL	—	3,750	—	3,750
	PLL	2,151	—	(651)	1,500
	RFI	6,380	9,622	(483)	15,519
EFF		30,437	5,103	(4,800)	30,740
Other facilities1		87	—	—	87
Total credit outstanding		73,575	22,956	(6,743)	89,788

¹Other facilities include legacy credit under Enlarged Access and Supplementary Financing Facility.

¹Other facilities include legacy credit under Enlarged Access, Compensatory and Contingency Financing Facility, and Supplementary Financing Facility.

		April 30, 2019	Purchases	Repurchases	April 30, 2020
		(in millions of SDRs)
Credit tranches:
	SBA	31,777	3,980	(1,237)	34,520
	PLL	—	2,151	—	2,151
	RFI	936	6,071	(627)	6,380
EFF		30,800	4,553	(4,916)	30,437
Other facilities1		181	—	(94)	87
Total credit outstanding		63,694	16,755	(6,874)	73,575

¹Other facilities include legacy credit under Enlarged Access, Compensatory and Contingency Financing Facility, and Supplementary Financing Facility.

View Table

		April 30, 2019	Purchases	Repurchases	April 30, 2020
		(in millions of SDRs)
Credit tranches:
	SBA	31,777	3,980	(1,237)	34,520
	PLL	—	2,151	—	2,151
	RFI	936	6,071	(627)	6,380
EFF		30,800	4,553	(4,916)	30,437
Other facilities1		181	—	(94)	87
Total credit outstanding		63,694	16,755	(6,874)	73,575

¹Other facilities include legacy credit under Enlarged Access, Compensatory and Contingency Financing Facility, and Supplementary Financing Facility.

5.2 Overdue obligations

At April 30, 2021, and 2020, Sudan was six months or more overdue in settling its financial obligations to the General Department.

During the financial year ended April 30, 2020, Somalia settled all of its overdue obligations to the General Department, including GRA credit outstanding and overdue charges of SDR 96 million and SDR 128 million, respectively, and the SAF loans and overdue interest of SDR 9 million and SDR 1 million, respectively. Settlement of the overdue charges generated burden-sharing refunds to members for amounts totaling SDR 120 million that were previously collected through burden-sharing adjustments to charges and remuneration (see Notes 13, 17, and 18).

The duration and type of overdue obligations were as follows:

	GRA repurchases		GRA charges
	April 30		April 30
	2021	2020	2021	2020
	(in millions of SDRs)
Total overdue	142	143	738	736
Overdue for six months or more	142	143	737	735
Overdue for three years or more	142	143	731	728

View Table

	GRA repurchases		GRA charges
	April 30		April 30
	2021	2020	2021	2020
	(in millions of SDRs)
Total overdue	142	143	738	736
Overdue for six months or more	142	143	737	735
Overdue for three years or more	142	143	731	728

On June 29, 2021, Sudan cleared its arrears to the GRA (see Note 22).

7.1 Fixed-Income Subaccount

The Fixed-Income Subaccount comprises two tranches, a shorter-duration Tranche 1 and a longer-duration Tranche 2. Tranche 1 is managed actively within tight risk controls against a zero- to three-year government bond benchmark index. Tranche 2 is managed according to a buy-and-hold investment approach, which in limited circumstances allows for the sale of investments in accordance with the overall investment strategy, prior to maturity. It is managed against a zero- to five-year government bond benchmark index and is being phased in over a five-year period, which commenced in 2017. Assets pending investment in Tranche 2 are placed in a short duration fixed-income portfolio.

Both tranches can be invested in fixed-income securities issued by national governments of members, their central banks and official agencies, international financial institutions, and obligations of the BIS. Eligible investments in Tranche 1 also include fixed-income securities issued by subnational governments, corporate bonds, mortgage-backed and other asset-backed securities, and cash instruments with maturities of one year or less. Assets are being invested by external managers, except for investments with the BIS and short-term investments (residual cash balances). Investments in the Fixed-Income Subaccount were as follows:

			April 30, 2021
			Tranche 1	Tranche 2	Total
			(in millions of SDRs)
At fair value through profit or loss:
	International financial institutions obligations:
		Medium-term instruments (BIS)	—	1,806	1,806
		Others	439	569	1,008
Sovereign bonds			7,786	1,615	9,401
Corporate bonds			2,757	—	2,757
Securitized assets			616	—	616
Short-term investments			215	14	229
Derivative assets			38	—	38
Total at fair value through profit or loss			11,851	4,004	15,855
At amortized cost:
	Fixed-term deposits		—	751	751
Total			11,851	4,755	16,606

View Table

			April 30, 2021
			Tranche 1	Tranche 2	Total
			(in millions of SDRs)
At fair value through profit or loss:
	International financial institutions obligations:
		Medium-term instruments (BIS)	—	1,806	1,806
		Others	439	569	1,008
Sovereign bonds			7,786	1,615	9,401
Corporate bonds			2,757	—	2,757
Securitized assets			616	—	616
Short-term investments			215	14	229
Derivative assets			38	—	38
Total at fair value through profit or loss			11,851	4,004	15,855
At amortized cost:
	Fixed-term deposits		—	751	751
Total			11,851	4,755	16,606

			April 30, 2020
			Tranche 1	Tranche 2	Total
			(in millions of SDRs)
At fair value through profit or loss:
	International financial institutions obligations:
		Medium-term instruments (BIS)	—	2,563	2,563
		Others	338	630	968
	Sovereign bonds		6,507	1,547	8,054
	Corporate bonds		3,242	—	3,242
	Securitized assets		718	—	718
	Short-term investments		236	38	274
	Derivative assets		22	—	22
Total at fair value through profit or loss			11,063	4,778	15,841
At amortized cost:
	Fixed-term deposits		—	1,040	1,040
Total			11,063	5,818	16,881

View Table

			April 30, 2020
			Tranche 1	Tranche 2	Total
			(in millions of SDRs)
At fair value through profit or loss:
	International financial institutions obligations:
		Medium-term instruments (BIS)	—	2,563	2,563
		Others	338	630	968
	Sovereign bonds		6,507	1,547	8,054
	Corporate bonds		3,242	—	3,242
	Securitized assets		718	—	718
	Short-term investments		236	38	274
	Derivative assets		22	—	22
Total at fair value through profit or loss			11,063	4,778	15,841
At amortized cost:
	Fixed-term deposits		—	1,040	1,040
Total			11,063	5,818	16,881

Fair values of derivative assets and liabilities in the Fixed-Income Subaccount at April 30, 2021 were SDR 38 million and SDR 40 million, respectively (SDR 22 million and SDR 93 million for derivative assets and liabilities, respectively, at April 30, 2020). Notional values of derivative instruments were as follows:

		April 30, 2021	April 30, 2020
		(in millions of SDRs)
Futures
	Long positions	465	421
	Short positions	2,336	2,176
Currency forwards		1,587	1,254
Interest rate swaps		643	498
Currency swaps		718	683
Swaptions		63	—

View Table

		April 30, 2021	April 30, 2020
		(in millions of SDRs)
Futures
	Long positions	465	421
	Short positions	2,336	2,176
Currency forwards		1,587	1,254
Interest rate swaps		643	498
Currency swaps		718	683
Swaptions		63	—

7.2 Endowment Subaccount

The assets of the Endowment Subaccount are invested in a globally diversified portfolio consisting of fixed-income and equity instruments (including REITs and private infrastructure debt). Assets are invested by external managers, except for short-term investments (residual cash balances).

The passively managed portfolio is invested in accordance with the strategic asset allocation in select investment categories approved by the Executive Board. Each investment category is invested to achieve exposure to broad characteristics of the specific asset class.

The actively managed portfolio represented about 4 percent at April 30, 2021 (5 percent at April 30, 2020), and may grow to up to 10 percent of the Endowment assets. The actively managed portfolio is invested in the same asset categories as the passively managed and has target shares for fixed-income instruments and equities without specific allocation requirements within those shares.

In 2019, the Executive Board approved the allocation of 5 percent of the passively managed portion of the Endowment assets to private infrastructure debt. The IMF invests in this asset class through commingled funds and its commitments are drawn down over time based on notices from the respective investment managers. At April 30, 2021, total commitments amounted to SDR 171 million (none at April 30, 2020). During the financial year ended April 30, 2021 total capital calls under the commitments totaled SDR 14 million and distributions amounting to SDR 1 million were paid back to the General Department.

Investments in the Endowment Subaccount, all of which are classified as FVPL, consisted of the following investment categories:

		April 30, 2021	April 30, 2020
		(in millions of SDRs)
Passively managed portfolio:
	Developed market sovereign bonds	894	867
	Developed market corporate bonds	1,005	1,094
	Emerging market bonds	274	268
	Inflation-linked bonds	1,214	1,113
	Developed market equities	1,565	1,266
	Emerging market equities	639	480
	Real estate investment trusts	347	214
	Private infrastructure debt	12	—
	Short-term investments	184	80
Total passively managed portfolio		6,134	5,382
Actively managed portfolio:
	Fixed-income securities	143	140
	Equity securities	134	102
	Short-term investments	10	13
Total actively managed portfolio		287	255
Derivative assets		5	10
Total		6,426	5,647

View Table

		April 30, 2021	April 30, 2020
		(in millions of SDRs)
Passively managed portfolio:
	Developed market sovereign bonds	894	867
	Developed market corporate bonds	1,005	1,094
	Emerging market bonds	274	268
	Inflation-linked bonds	1,214	1,113
	Developed market equities	1,565	1,266
	Emerging market equities	639	480
	Real estate investment trusts	347	214
	Private infrastructure debt	12	—
	Short-term investments	184	80
Total passively managed portfolio		6,134	5,382
Actively managed portfolio:
	Fixed-income securities	143	140
	Equity securities	134	102
	Short-term investments	10	13
Total actively managed portfolio		287	255
Derivative assets		5	10
Total		6,426	5,647

Investment categories comprise funds managed to achieve exposure to broad characteristics of the specific asset class. Funds may include holdings in other asset classes. Market exposure may be achieved through derivative instruments, where necessary and as determined under the IA’s Rules and Regulations.

Fair values of derivative assets and liabilities in the Endowment Subaccount at April 30, 2021 were SDR 5 million and SDR 16 million, respectively (SDR 10 million and SDR 17 million for derivative assets and liabilities, respectively, at April 30, 2020). Notional values of derivative instruments were as follows:

		April 30, 2021	April 30, 2020
		(in millions of SDRs)
Futures
	Long positions	22	34
	Short positions	29	51
Currency forwards		2,329	2,183

View Table

		April 30, 2021	April 30, 2020
		(in millions of SDRs)
Futures
	Long positions	22	34
	Short positions	29	51
Currency forwards		2,329	2,183