Chapter

Appendix IX: Financial Statements April 30, 2004

Author(s):
International Monetary Fund
Published Date:
October 2004
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Report of Independent Auditors

To the Board of Governors of the International Monetary Fund:

In our opinion, the accompanying balance sheets and the related statements of income, changes in resources and cash flows give a true and fair view of the financial condition of the General Department of the International Monetary Fund (the “IMF”) as at April 30, 2004 and 2003, and its results of operations and cash flows for the years then ended in conformity with International Financial Reporting Standards. These financial statements are the responsibility of the IMF’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with International Standards on Auditing, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 164 to 169 is presented for purposes of adding additional analysis and is not a required part of the basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audits of the financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole.

June 7, 2004

General Department

Balance Sheets as at April 30, 2004 and 2003

(In thousands of SDRs)
2004200320042003
AssetsLiabilities and Resources
Credit outstanding62,152,68265,977,977Liabilities:
Usable currencies103,261,91197,028,740Remuneration payable212,654244,544
Other currencies46,671,52947,692,348Other liabilities100,189140,347
Total currencies (Notes 3 and 4)212,086,122210,699,065Special Contingent Account (Note 10)1,495,0191,401,019
Total Liabilities1,807,8621,785,910
SDR holdings506,029962,641Members’ Resources:
5,851,7715,851,771Quotas, represented by:
Gold holdings (Note 5)Reserve tranche positions (Notes 2 and 4)62,856,11068,008,951
Receivables (Note 6)517,002576,570Subscription payments: Usable103,261,91197,028,740
Other assets (Notes 7 and 14)Other46,675,97947,693,609
751,655714,092Total quotas212,794,000212,731,300
Investments held in the Special Disbursement Account (Note 8)2,630,8042,590,349Reserves of the General Resources Account5,110,7174,286,929
Structural Adjustment Facility loans (Note 3)85,908136,816Accumulated resources of the Special Disbursement Account2,716,7122,727,165
Total Assets222,429,291221,531,304Total Liabilities and Resources222,429,291221,531,304
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
/s/ Eduard Brau

Director, Finance Department
/s/ Rodrigo de Rato

Managing Director

Income Statements for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
20042003
Operational Income
Interest and charges (Note 6)2,231,6782,295,250
Interest on SDR holdings16,63028,038
Investment income of the Special Disbursement Account40,93861,431
Other charges and income (Note 6)90,676131,629
2,379,9222,516,348
Operational Expenses
Remuneration (Note 9)966,4041,201,347
Administrative Expenses (Note 13)548,792607,086
1,515,1961,808,433
Total Net Income864,726707,915
Net Income of the General Department comprises:
Net income of the General Resources Account823,788646,484
Income of the Special Disbursement Account40,93861,431
864,726707,915
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Statements of Changes in Resources for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
General Resources AccountSpecial

Disbursement

Account

Accumulated

Resources
QuotasSpecial

Reserve
General

Reserve
Total

Reserves
Balance at April 30, 2002212,415,9002,391,2241,249,2213,640,4452,878,993
Quota subscriptions315,400
Net (loss)/Income(9,770)656,254646,48461,431
Transfers to the PRGF Trust(149,259)
Transfers to the PRGF-HIPC Trust(64,000)
Balance at April 30, 2003212,731,3002,381,4541,905,4754,286,9292,727,165
Quota subscriptions62,700
Net income33,981789,807823,78840,938
Transfers from the Supplementary Financing Facility Subsidy Account139
Transfers from the PRGF Trust6,170
Transfers to the PRGF-HIPC Trust(57,700)
Balance at April 30, 2004212,794,0002,415,4352,695,2825,110,7172,716,712
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Statements of Cash Flows for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
20042003
Usable currencies and SDRs from operating activities
Net income864,726707,915
Adjustments to reconcile net income to usable resources generated by operations:
Changes in receivables and other assets22,005(37,005)
Changes in remuneration payable and other liabilities(72,048)(8,046)
Increase in the Special Contingent Account94,00094,000
Usable currencies and SDRs from credit to members:
Purchases in currencies and SDRs, including reserve tranche purchases(17,829,722)(21,783,516)
Repurchases in currencies and SDRs21,638,6137,783,894
Repayments of Structural Adjustment Facility loans50,908204,876
Net usable currencies and SDRs provided by (used in) operating activities4,768,482(13,037,882)
Usable currencies and SDRs from investment activities
Net acquisition of investments by the Special Disbursement Account(40,455)(53,048)
Net usable currencies and SDRs used by investment activities(40,455)(53,048)
Usable currencies and SDRs from financing activities
Subscnption payments in SDRs and usable currencies15,67578,850
Changes in composition of usable currencies1,084,2487,271,790
Transfers to the PRGF Trust, PRGF-HIPC Trust, and other accounts(51,391)(213,259)
Net usable currencies and SDRs provided by financing activities1,048,5327,137,381
Net increase (decrease) in usable currencies and SDRs5,776,559(5,953,549)
Usable currencies and SDRs, beginning of period97,991,381103,944,930
Usable currencies and SDRs, end of period103,767,94097,991,381
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Notes to the Financial Statements as at April 30, 2004 and 2003

1. Purpose and Organization

The IMF is an international organization of 184 member countries. It was established to promote international monetary cooperation and exchange stability and to maintain orderly exchange arrangements among members; to facilitate the expansion and balanced growth of international trade, and contribute thereby to the promotion and maintenance of high levels of employment; and to provide temporary financial assistance to member countries under adequate safeguards to help ease balance of payments adjustment. The IMF conducts its operations and transactions through the General Department and the Special Drawing Rights Department (the SDR Department). The General Department consists of the General Resources Account (GRA), the Special Disbursement Account (SDA), and the Investment Account. The latter has not been established. The IMF also administers trusts and accounts established to perform financial and technical services and financial operations consistent with the purposes of the IMF. The resources of these trusts and accounts are contributed by members or the IMF through the SDA. The financial statements of the SDR Department and these trusts and accounts are presented separately.

General Resources Account

The GRA holds the general resources of the IMF. Its resources reflect the receipt of quota subscriptions, use and repayment of IMF credit, collection of charges on the use of credit, payment of remuneration on creditor positions, borrowings, and payment of interest and repayment of borrowings.

Special Disbursement Account

The assets and resources of the SDA are held separately from other accounts of the General Department. Resources of the SDA include transfers received from the Trust Fund, a trust administered by the IMF as trustee (in liquidation), and part of the proceeds from the sales of the IMF’s gold in the past. Income from the investment of gold profits in the SDA is to be transferred, as needed, to the Poverty Reduction and Growth Facility—Heavily Indebted Poor Countries Trust (PRGF-HIPC Trust), in accordance with decisions of the IMF. The SDA also holds outstanding loans extended under the Structural Adjustment Facility (SAF), which was established in March 1986 to provide balance of payments assistance on concessional terms to qualifying low-income developing country members.

Assets that exceed the financing needs of the SDA, excluding investments arising from the sales of gold undertaken pursuant to the 1999 decision on gold sales by the IMF, are transferred to the Reserve Account of the Poverty Reduction and Growth Facility Trust (PRGF Trust), which is administered separately by the IMF as trustee.

2. Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the IMF are prepared in accordance with International Financial Reporting Standards (IFRS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Revenue and Expense Recognition

The financial statements are prepared on the accrual basis; accordingly, income is recognized as it is earned, and expenses are recorded as they are incurred.

Unit of Account

The financial statements are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the SDR valuation basket. The IMF reviews the SDR valuation basket every five years. The latest review was completed in October 2000, and the new composition of the SDR valuation basket became effective on January 1, 2001. The currencies in the basket as of April 30, 2004 and 2003 and their amounts were as follows:

CurrencyAmount
Euro0.4260
Japanese yen21.0000
Pound sterling0.0984
U.S. dollar0.5770

As of April 30, 2004, one SDR was equal to 1.45183 U.S. dollars (one SDR was equal to 1.38391 U.S. dollars as of April 30, 2003).

Credit Outstanding

The IMF provides balance of payments assistance in accordance with established policies by selling to members, in exchange for their own currencies, SDRs or currencies of other members. When members make purchases, they incur obligations to repurchase the IMF’s holdings of their currencies arising from the purchases within specified periods by payments in SDRs or other currencies, as determined by the IMF. IMF credit is subject to specific repayment schedules over periods which vary depending on the type of facility used. Members are entitled to repurchase, at any time, the IMF’s holdings of their currencies on which charges are levied and are expected to make repurchases as and when their balance of payments and reserve position improve.

The repurchase policies of the IMF are intended to ensure the revolving character of its resources. Programs supported by the IMF are guided by the requirement that members should be able to make repurchases in accordance with the normal terms of borrowing referred to as the obligation schedule, for the respective facilities. In keeping with a long-standing principle of the IMF that its resources should be repaid as soon as the balance of payments and reserve position improve, borrowers in a position to do so are expected to make repurchases ahead of the original schedule under predetermined expectation schedules. However, if a member’s external position is not sufficiently strong, it may request repayments on the expectation schedule be extended to the original obligation schedule by a period of up to one year for credit tranche and Supplemental Reserve Facility purchases (up to six months for purchases after February 21, 2003) or three years for Extended Fund Facility purchases. A member is considered overdue only after failure to make a payment on the repurchase obligation schedule.

Overdue Obligations and the Burden Sharing Mechanism

It is the policy of the IMF to exclude from current income charges due by members that are six months or more overdue in meeting payments to the IMF. The IMF fully recovers this lost income from unpaid charges under the burden sharing mechanism, through adjustments, in the current period, to the rates of charge and remuneration. Members that have borne the financial consequences of overdue charges receive refunds to the extent that overdue charges that had given rise to burden sharing adjustments are settled.

An impairment loss is recognized only if there is objective evidence of impairment as a result of a past event that occurred after initial recognition, and is determined as the difference between the credit oustanding’s carrying amount and the present value of the estimated future cash flows.

First Special Contingent Account

In view of the risk resulting from overdue credit, the IMF accumulates balances in the first Special Contingent Account (SCA-1). Losses arising from overdue principal, if realized, would be charged against the SCA-1. The IMF has not realized any losses on overdue financial obligations. However, the IMF considers it prudent to maintain the SCA-1 as added protection until all arrears are fully settled. Balances in the SCA-1 are to be distributed to the members that shared the cost of its financing when there are no outstanding overdue repurchases and charges, or at such earlier time as the IMF may decide.

Currencies

Currencies consist of members’ currencies and securities held by the IMF. Each member has the option to substitute non-negotiable and non-interest-bearing securities for the IMF’s holdings of its currency that exceed ¼ of 1 percent of the member’s quota. These securities are encashable by the IMF on demand.

Each member is required to pay to the IMF its initial quota and subsequent quota increases partly in its own currency, with the remainder to be paid in usable currencies prescribed by the IMF, or SDRs. One exception was the quota increase of 1978, which was paid entirely in members’ own currencies.

Usable Currencies

Usable currencies consist of currencies of members considered by the IMF to have strong balance of payments and reserve positions. These currencies are included in the IMF’s financial transactions plan to finance purchases and other transfers of the IMF. Participation in the financial transactions plan is reviewed on a quarterly basis. The IMF considers cash and cash equivalents to be usable currencies and SDR holdings. The changes in non-usable currency result from the IMF’s transactions (purchases and repurchases) where a member’s currency is exchanged for another member’s currency, or from the inclusion/exclusion of a member’s currency in the IMF’s transaction plan.

Valuation of Currencies

Currencies, including securities, are valued in terms of the SDR on the basis of the currency/SDR exchange rate determined for each currency. Securities are not marketable, but can be converted into cash on demand. Each member is obligated to maintain, in terms of the SDR, the value of the balances of its currency held by the IMF in the GRA. This requirement is referred to as the maintenance-of-value obligation. Whenever the IMF revalues its holdings of a member’s currency, a receivable or a payable is established for the amount required to maintain the SDR value of the IMF’s holdings of that currency. The currency balances in the balance sheet include these receivables and payables. All currencies were revalued in terms of the SDR on April 30, 2004 and 2003.

SDR Holdings

Although SDRs are not allocated to the IMF, the IMF may acquire, hold, and dispose of SDRs through the GRA. The IMF receives SDRs from members in the settlement of their financial obligations to the IMF and uses SDRs in transactions and operations with members. The IMF earns interest on its SDR holdings at the same rate as all other holders of SDRs.

SDR Interest Rate

The SDR interest rate is determined weekly by reference to a combined market interest rate, which is a weighted average of yields on short-term instruments in the capital markets of the euro area, Japan, the United Kingdom, and the United States.

Gold Holdings

The Articles of Agreement limit the use of gold in the IMF’s operations and transactions. Any use provided for in the Articles requires a decision adopted by an 85 percent majority of the total voting power. In accordance with the provisions of the Articles, whenever the IMF sells gold held on the date of the Second Amendment of the IMF’s Articles of Agreement (April 1, 1978), the portion of the proceeds equivalent at the time of sale to one SDR per 0.888671 gram of fine gold, which is equal to SDR 35 per fine troy ounce, must be placed in the GRA. Any excess over this value will be held in the SDA or transferred to the Investment Account. The IMF may also sell gold held on the date of the Second Amendment to those members that were members on August 31, 1975, in proportion to their quotas on that date, in exchange for their own currencies, at a price equivalent at the time of sale to one SDR per 0.888671 gram of fine gold.

The IMF values its gold holdings at historical cost using the specific identification method (see Note 5).

SAF Loans in the Special Disbursement Account

Repayments of all SAF loans are transferred to the PRGF Trust Reserve Account when received. Allowances for loan losses would be established if and when there is objective evidence that an impairment loss on loans has been incurred.

Investments in the Special Disbursement Account

Investments are made in debt securities and fixed-term deposits, which are classified as available for sale securities. Debt securities comprise securities issued by international financial organizations and domestic government bonds in the euro area, Japan, the United Kingdom and the United States. Investments are marked to market on the last business day of the accounting period. The carrying amounts of investments approximate their fair value and the unrealized gains and losses are included in the income statements. Purchases are valued and reflected on the trade date basis and sales are based on the actual settlement date valuations. Investment income comprises interest earned on investments, realized and unrealized gains and losses on investments, including currency valuation differences arising from exchange rate movements against the SDR.

Interest rate risk is managed by limiting the investment portfolio to a weighted average effective duration that does not exceed three years. Currency risk is minimized by investing in securities denominated in SDRs or in the constituent currencies of the SDR valuation basket. Risk is further minimized by ensuring that the currency composition of the investment portfolio matches, as closely as possible, the currency composition of the SDR valuation basket.

Fixed Assets

Fixed assets with a cost in excess of a threshold amount are capitalized at cost. Buildings and equipment are depreciated using the straight-line method over the estimated useful lives of the assets, which range from 3 years for equipment to 30 years for buildings.

Quotas

Each member is assigned a quota that forms the basis of its financial and organizational relationship with the IMF. A member’s quota is related to, but not strictly determined by, economic factors such as national income, the value of external trade and payments, and the level of official reserves. Quotas determine members’ subscriptions to the IMF, their relative voting power, access to financing, and their share in SDR allocations. Should a member withdraw from the Fund, quotas are repayable to the extent they are not needed to settle other net obligations of the member to the Fund.

Reserve Tranche Position

A member has a reserve tranche in the IMF when the IMF’s holdings of its currency, excluding holdings that reflect the member’s use of IMF credit, are less than the member’s quota. A member’s reserve tranche is considered a part of the member’s external reserves and the member may draw on the reserve tranche at any time when it represents that it has a balance of payments need. Reserve tranche purchases are not subject to repurchase obligations or charges.

Reserves

The IMF’s reserves, consisting of the General Reserve and the Special Reserve, provide it with protection against financial risk of a general nature. The IMF determines annually what part of its net income will be retained and placed to the General Reserve or the Special Reserve, and what part, if any, will be distributed. The Articles of Agreement permit the IMF to use the Special Reserve for any purpose for which it may use the General Reserve, except distribution. After meeting the cost of administering the PRGF Trust, net operational income generated from the surcharges on purchases under the SRF, the credit tranches, and the EFF has been transferred to the General Reserve. All other income has been transferred to the Special Reserve.

Charges

The IMF levies periodic charges on members’ use of IMF credit. The basic rate of charge is set as a proportion of the SDR interest rate, which is equivalent to the effective interest rate. For financial year 2004, the basic rate of charge was 132 percent of the SDR interest rate. The basic rate of charge is increased to offset the effect on the IMF’s income of the nonpayment of charges and to finance the additions to the SCA-1. The average adjusted rate of charge before applicable surcharges for financial year 2004 was 2.17 percent (for financial year 2003 the average rate was 2.74 percent). A surcharge progressing from 300 to 500 basis points above the rate of charge applies to use of credit under the SRF. In addition, credit outstanding in excess of 200 percent of quota, resulting from purchases after November 28, 2000 in the credit tranches and under the EFF (other than those under the SRF), is subject to a surcharge of 100-200 basis points. Special charges are levied on members’ currency holdings that are not repurchased when due and on overdue charges. Special charges do not apply to members that are six months or more overdue to the IMF. A service charge is levied by the IMF on all purchases, except reserve tranche purchases. A refundable commitment fee is charged on Stand-By and Extended Arrangements. At the expiration or cancellation of an arrangement, the unrefunded portion of the commitment fee is taken into income.

Remuneration

The IMF pays interest, referred to as remuneration, on a member’s reserve tranche position. The rate of remuneration, which is equivalent to the effective interest rate, is equal to the SDR interest rate, adjusted downward to finance a share of the nonpayment of charges and additions to the SCA-1. The average adjusted rate of remuneration for the financial year ended April 30, 2004 was 1.48 percent (1.96 percent for the financial year ended 2003). A portion of the reserve tranche is unremunerated and is equal to 25 percent of the member’s quota on April 1, 1978—that part of the quota that was paid in gold prior to the Second Amendment of the Fund’s Articles. For a member that joined the Fund after that date, the unremunerated reserve tranche is the same percentage of its initial quota as the average unremunerated reserve tranche was as a percentage of the quotas of all other members when the new member joined the Fund. The unremunerated reserve tranche remains fixed for each member in nominal terms, but because of subsequent quota increases, it is now significantly lower when expressed as a percentage of quota. The average is equal to 3.8 percent of quota at April 30, 2004 and 2003, but the actual percentage is different for each member.

Pension and Other Post-Retirement Obligations

The IMF operates two defined-benefit pension plans and provides postretirement benefits to retired staff.

The pension plans are funded by payments from the staff and the IMF, taking into account the recommendations of independent actuaries. Assets of the plans are held in separate trustee-managed funds and are measured at fair value as of the balance sheet date. Pension obligations are measured using the Projected Unit Credit Method, which measures the present value of the estimated future cash outflows, using interest rates of government securities that have maturities approximating the terms of the pension liabilities.

The assets set aside for the provision of post-retirement benefits are held in an investment account administered by the IMF. This account is funded by contributions from the IMF. The expected costs of the post-retirement medical and life insurance benefits are accrued over the period of employment using the Projected Unit Credit Method. Valuations of these obligations are carried out by independent actuaries.

The pensions and other post-retirement benefits expense recognized include the actuarial gains and losses in excess of a 10 percent corridor which is amortized over the estimated service life remaining of IMF staff. The 10 percent corridor is the higher of 10 percent of the defined benefit obligation or the fair value of assets.

Comparatives

When necessary, comparative figures have been reclassified to conform with changes in the presentation of the current year.

Accounting and Reporting Developments

In December 2003, the International Accounting Standards Board issued International Accounting Standard 32 “Financial Instruments: Disclosure and Presentation,” (IAS 32 revised). This standard clarifies, among other things, the definition of a financial liability, particularly as it relates to shareholder interests that have redemption features. The Fund will consider the implications of this revision for presentation of the balance sheet of the General Department. IAS 32 revised is effective for annual periods beginning on or after January 1, 2005, and will thus be effective for the Fund’s Financial Year 2006.

3. Credit Outstanding

Credit outstanding in the General Resources Account and SAF loans in the SDA are carried at amortized cost which is historical cost.

Changes in the outstanding use of IMF credit under the various facilities of the GRA during the years ended April 30, were as follows:

April 30,

2002
PurchasesRepurchasesApril 30,

2003
PurchasesRepurchasesApril 30,

2004
In millions of SDRs
Credit tranches28,2279,664(3,993)33,89812,874(5,042)41,730
Extended Fund Facility15,4911,451(2,000)14,9421,132(2,323)13,751
Supplemental Reserve Facility5,87510,566(741)15,7003,807(13,479)6,028
Systemic Transformation Facility1,311(667)644(490)154
Enlarged Access321(42)279(3)276
Compensatory and Contingency Financing Facility746(332)414(294)120
Supplementary Financing Facility110(9)10194
Total credit outstanding52,08121,681(7,784)65,97817,813(21,638)62,153

The IMF approved the following requests to extend the repurchase expectations by one year during financial years ended April 30:

Total Repurchase

Expectations Extended
20042003
In millions of SDRs
Argentina1,9415,818
Brazil8,096
Ecuador14
Papua New Guinea26
Serbia and Montenegro19
Sri Lanka52
Turkey8,273
Uruguay227129

During financial year 2004, the IMF also approved, under its exceptional access policy, a three-year Stand-By Arrangement with Argentina for SDR 9 billion and augmented Brazil’s Stand-By Arrangement by SDR 4.5 billion.

As of April 30, 2004 and 2003, SDA loans amounted to SDR 86 million and SDR 137 million, respectively, and interest due from members in arrears, computed at 0.5 percent a year, amounted to SDR 1 million.

Scheduled repurchases in the GRA and repayments of SAF loans in the SDA are summarized below:

Financial Year

Ending

April 30
General

Resources

Account
Special

Disbursement

Account
In millions of SDRs
200512,47840
200619,31237
200717,706
20088,583
20092,057
2009 and beyond1,274
Overdue7439
Total62,15386

The use of credit in the GRA by the largest users at April 30, was as follows:

20042003
In millions of SDRs and as a percent

of total GRA credit outstanding
Largest user of credit18,13929.2%18,19227.6%
Three largest users of credit44,02070.8%45,38268.8%
Five largest users of credit53,68086.4%56,12785.1%

The five largest users of credit as of April 30, 2004 were Brazil, Turkey, Argentina, Indonesia, and the Russian Federation. Outstanding credit, by member, is provided in Schedule 1. The concentration of GRA outstanding credit by regional geographical area as of April 30, was as follows:

20042003
In millions of SDRs and as a percent

of total GRA credit outstanding
Africa1,3972.3%1,7512.6%
Asia and Pacific8,01912.9%8,74213.3%
Europe6,1609.9%7,70411.7%
Latin America and the Caribbean30,69749.4%30,82446.7%
Middle East and Turkey15,88025.5%16,95725.7%
Total62,153100%65,978100%

Overdue Obligations

At April 30, 2004 and 2003, four members were six months or more overdue in settling their financial obligations to the General Department.

GRA repurchases. GRA charges, SAF loan repayments, and SAF interest that are six or more months overdue to the General Department were as follows:

Repurchases and

SAF Loans
Charges and

SAF Interest
2004200320042003
In millions of SDRs
Total overdue7527461,009993
Overdue for six months or more7437261,001982
Overdue for three years or more650663939900

The type and duration of the overdue amounts in the General Department as of April 30, 2004, were as follows:

Repurchases

and SAF

Loans
Charges

and SAF

Interest
Total

Obligation
Longest

Overdue

Obligation
In millions of SDRs
Liberia201249450May 1985
Somalia10596201July 1987
Sudan338654992July 1985
Zimbabwe10810118February 2001
Total7521,0091,761

4. Currencies

Changes in the IMF’s holdings of members’ currencies for the years ended April 30, 2004 and 2003 were as follows:

April 30,

2002
Net

Change
April 30,

2003
Net

Change
April 30,

2004
In millions of SDRs
Members’ quotas212,416315212,73163212,794
Members’ outstanding use of IMF credit in the GRA52,08113,89765,978(3,825)62,153
Members’ reserve tranche positions in the GRA(55,327)(12,682)(68,009)5,153(62,856)
Administrative currency balances(4)3(1)(4)(5)
Total currencies209,1661,533210,6991,387212,086

Receivables and payables arising from valuation adjustments at April 30, 2004, when all holdings of currencies of members were last revalued, amounted to SDR 9,311 million and SDR 3,139 million, respectively (SDR 20,947 million and SDR 4,985 million, respectively, at April 30, 2003). Settlements of these receivables or payables are required to be made promptly after the end of each financial year.

Other currency holdings, other than those resulting from the use of credit or usable currencies, amounted to SDR 46,672 million (SDR 47,692 million as of April 30, 2003).

5. Gold Holdings

At April 30, 2004 and April 30, 2003, the IMF held 3,217,341 kilograms of gold, equal to 103,439,916 fine ounces of gold, at designated depositories. As of April 30, 2004, the value of the IMF’s holdings of gold calculated at the market price was SDR 27.7 billion (SDR 25.2 billion at April 30, 2003).

6. Interest and Charges

As of April 30, 2004, the total holdings on which the IMF levies charges amounted to SDR 62,153 million (SDR 65,978 million as of April 30, 2003). Charges and other receivables due to the IMF as of April 30 were as follows:

20042003
In millions of SDRs
Periodic charges1,5261,568
Amount paid through burden sharing(825)(808)
Other unpaid charges(188)(188)
513572
Other receivables45
Receivables517577

Periodic interest and charges for the years ended April 30 consisted of the following:

20042003
In millions of SDRs
Periodic charges2,2242,323
Amounts paid through burden sharing adjustments, net of refunds8(28)
Total interest and charges2,2322,295

Interest earned on SAF loans for the years ended April 30, 2004 and 2003 amounted to SDR 0.5 million and SDR 8.4 million, respectively.

Special charges, service charges, and the unrefunded commitment fees are included in Other Charges and Income, which amounted to SDR 91 million (SDR 132 million for the year ended April 30, 2003).

7. Fixed Assets

Other assets include fixed assets, which at April 30, 2004 and 2003 amounted to SDR 267 million and SDR 238 million, respectively, and consisted of:

20042003
In millions of SDRs
Land and buildings363326
Equipment4439
Total fixed assets407365
Less: accumulated depreciation(140)(127)
Net fixed assets267238

8. Investments

As at April 30, 2004 the investments in the SDA consisted of fixed-term deposits with maturity of less than one year and amounted to SDR 2,631 million (SDR 2,590 million as at April 30, 2003). Fixed-term deposits include cash equivalents amounting to SDR 37 million (SDR 21 million as at April 30, 2003) comprising short-term deposits with maturities of less than ninety days.

Income of the SDA for the years ended April 30, 2004 and 2003, comprised of interest and special charges, was SDR 41 million and SDR 61 million, respectively.

9. Remuneration

At April 30, 2004, total creditor positions on which the IMF paid remuneration amounted to SDR 56,241 million (SDR 61,428 million at April 30, 2003). Remuneration for the years ended April 30, 2004 and 2003 consisted of the following:

20042003
In millions of SDRs
Remuneration9741,173
Amount paid through burden sharing adjustment, net of refunds(8)28
9661,201

10. Burden Sharing and Special Contingent Account

Cumulative charges, net of settlements, that have resulted in adjustments to charges and remuneration since May 1, 1986, amounted to SDR 825 million at April 30, 2004 (SDR 810 million at April 30, 2003). The cumulative refunds for the same period, resulting from the settlements of overdue charges for which burden sharing adjustments have been made, amounted to SDR 1,073 million (SDR 1,072 million at April 30, 2003).

The SCA-1 is financed by adjustments to the rate of charge and the rate of remuneration. Balances in the SCA-1 are to be distributed to the members that shared the cost of its financing when there are no outstanding overdue repurchases and charges, or at such earlier time as the IMF may decide. Losses arising from overdue obligations, if realized, would be shared by members in proportion to their cumulative contributions to the SCA-1. If the loss exceeded the balance in the SCA-1, the remainder would be charged to current income. At April 30, 2004, the balances held in the SCA-1 amounted to SDR 1,495 million (SDR 1,401 million at April 30, 2003).

11. Borrowings

Under the General Arrangements to Borrow (GAB), the IMF may borrow up to SDR 18.5 billion when supplementary resources are needed, in particular, to forestall or to cope with an impairment of the international monetary system. The GAB became effective on October 24,1962, and has been renewed through December 25, 2008. Interest on borrowings under the GAB is set at a rate equal to the SDR interest rate.

Under the New Arrangements to Borrow (NAB), the IMF may borrow up to SDR 34 billion of supplementary resources. The NAB is the facility of first and principal recourse, but it does not replace the GAB, which will remain in force. Outstanding drawings and commitments under these two borrowing arrangements are limited to a combined total of SDR 34 billion. The NAB became effective for a five-year period on November 17, 1998, and has been renewed through November 16, 2008. Interest on borrowings under the NAB is payable to the participants at the SDR interest rate or any such higher rate as may be agreed between the IMF and participants representing 80 percent of the total credit arrangements.

12. Arrangements and Commitments in the General Department

An arrangement is a decision of the IMF that gives a member the assurance that the IMF stands ready to provide SDRs or usable currencies during a specified period and up to a specified amount, in accordance with the terms of the arrangement. Credit under these arrangements is subject to interest and charges that are uniform to all members and that reflect the cost to the IMF of financing such credit, plus a margin. In addition, certain surcharges may apply. At April 30, 2004, the undrawn balances under the 13 arrangements that were in effect in the GRA amounted to SDR 19,799 million (SDR 23,620 million under 18 arrangements at April 30, 2003).

The IMF has committed to lease commercial office space through 2005. Expenditures totaling SDR 18.1 million will be incurred over this period.

13. Administrative Expenses

The administrative expenses for the years ended April 30, were as follows:

20042003
In millions of SDRs
Personnel337370
Pension and other related expenses3979
Travel7072
Other10488
Less: reimbursement for the administration of the SDR Department(1)(2)
Total administrative expenses, net of reimbursements549607

The majority of these expenses are incurred in U.S. dollars: exchange gains and losses incurred in the normal course of business are reflected in administrative expenses and are not significant.

The GRA is reimbursed for the cost of administering the SDR Department.

The GRA is to be reimbursed annually for expenses incurred in administering the SDA and the PRGF Trust. Following the establishment of the SRF and CCL and the consequent increase in net operational income, the Executive Board decided to forgo reimbursement of the expenses incurred in administering the PRGF Trust for financial years 2004 and 2003 and to transfer the amounts that would otherwise have been reimbursed to the GRA from the PRGF Trust Reserve Account, through the SDA, to the PRGF-HIPC Trust. These transfers amounted to SDR 57.7 million for financial year 2004 (SDR 64.0 million for financial year 2003).

14. Pension and Other Post-Retirement Benefits

The IMF has a defined-benefit Staff Retirement Plan (SRP) that covers substantially all eligible staff and a Supplemental Retirement Benefits Plan (SRBP) for selected participants of the SRP. Participants contribute 7 percent of their pensionable remuneration and the IMF contributes the remainder of the cost of funding the plans and pays certain administrative costs of the plans. In addition, the IMF provides other employment and postretirement benefits, including medical, life insurance, and other long-term benefits. In 1995, the IMF established a separate account, the Retired Staff Benefits Investment Account (RSBIA), to hold and invest resources set aside to fund the cost of the post retirement benefits.

A plan amendment was adopted in December 2002, and implemented in financial year 2004, to allow certain periods of past employment to qualify for determination of participants’ benefits in the SRP and the SRBP The estimated liability resulting from the amendment was included in the actuarial valuation (SDR 32 million) for financial year 2003.

The obligations of the SRR SRBR and RSBIA are valued annually by independent actuaries. The latest actuarial valuations were carried out as at April 30, 2004 using The Projected Unit Credit Method. The key assumptions used are as shown below.

The amounts recognized in the balance sheet are determined as follows:

20042003
SRPSRBPOtherTotalTotal
In millions of SDRs
Fair value of plan assets2,93923233,2642,747
Present value of the defined benefit obligation(2,848)(201)(520)(3,569)(2,454)
Unrecognized actuarial losses/(gains)71652(34)73499
Unrecognized prior service cost141443
Net balance sheet asset/liability)807(147)(217)443435

The movement in the net balance sheet asset is reconciled as follows:

20042003
SRPSRBPOtherTotalTotal
In millions of SDRs
Beginning of year774(122)(217)435470
Income/(expense) recognized in income statement15(28)(38)(51)(79)
Contributions paid183385944
End of year807(147)(217)443435

The expense recognized in the income statement for the year ended April 30, 2003 included SDR 40 million which represents the effect of a change in the actuarial cost resulting from a revision in some participants’ data. This expense related for the most part to the present value of the defined benefit obligation as originally estimated when International Accounting Standard (IAS) 19 was introduced in financial year 2000. The amounts recognized in the income statements are as follows:

20042003
SRPSRBPOtherTotalTotal
In millions of SDRs
Current service cost5153995106
Interest cost124726157203
Expected loss on assets(204)(22)(226)(274)
Amortization of actuarial (gain)/loss(2)(6)(8)2
Prior service cost141813342
Total (income)/expense recognized in income statement(15)28385179
Actual return on assets/(loss)60959668(72)

The principal actuarial assumptions used were as follows:

20042003
In percent
Discount rate5.76.5
Expected return on plan assets7.58.3
Future salary increases6.4-10.84.0-6.75
Ultimate health care costs growth rates4.04.0

Schedule 1 Quotas, IMF’s Holdings of Currencies, Reserve Tranche Positions, and Members’ Use of Resources as at April 30, 2004

(In thousands of SDRs)
General Resources Account
MemberQuotaIMFs holdings

of currencies1
Reserve

tranche

position
Credit Outstanding
GRASDA3

(B) +
PRGF

Trust4

(C) =
Total5

(D)
TotalPercent

of quota
AmountPercent2
(A)+
Afghanistan, Islamic State of161,900161,916100.0
Albania48,70045,35093.13,35563,27663,276
Algeria1,254,7001,750,150139.585,082580,5310.93580,531
Angola286,300286,445100.1
Antigua and Barbuda13,50013,499100.06
Argentina2,117,10012,412,772586.37410,295,74416.5710,295,744
Armenia, Republic of92,00099,036107.67,0310.01132,350139,381
Australia3,236,4002,064,21763.81,172,241
Austria1,872,3001,119,53159.8752,787
Azerbaijan160,900211,948131.71051,0480.08105,018156,066
Bahamas, The130,300124,05195.26,253
Bahrain, Kingdom of135,00065,07548.269,955
Bangladesh533,300533,119100.018699,00099,000
Barbados67,50062,46192.55,040
Belarus, Republic of386,400398,083103.02011,6830.0211,683
Belgium4,605,2002,753,35959.81,851,851
Belize18,80014,56277.54,239
Benin61,90059,72196.52,18847,83847,838
Bhutan6,3005,28083.81,020
Bolivia171,500226,958132.38,87564,3200.10115,704180,024
Bosnia and Herzegovina169,100260,637154.191,5330.1591,533
Botswana63,00038,41761.024,586
Brazil3,036,10021,175,822697.518,139,16729.1818,139,167
Brunei Darussalam215,200157,12773.058,288
Bulgaria640,2001,435,837224.332,778828,3951.33828,395
Burkina Faso60,20052,91187.97,2941,26482,30683,570
Burundi77,00076,64199.536026,40026,400
Cambodia87,50087,500100.066,90066,900
Cameroon185,700185,08799.7644225,455225,455
Canada6,369,2004,020,57163.12,348,635
Cape Verde9,6009,596100.054,9204,920
Central African Republic55,70055,54799.715923,65623,656
Chad56,00055,71999.528269,88369,883
Chile856,100562,85465.7293,247
China6,369,2004,013,67263.02,355,575
Colombia774,000488,20263.1285,803
Comoros8,9008,35893.9544
Congo, Democratic Republic of533,000533,000100.0500,067500,067
Congo, Republic of84,60093,332110.35369,2530.016,94816,201
Costa Rica164,100144,11387.820,000
Cöte d’Ivoire325,200324,63999.8572271,729271,729
Croatia, Republic of365,100364,943100.0159
Cyprus139,60084,29260.455,315
Czech Republic819,300506,90861.9312,397
Denmark1,642,8001,008,08061.4634,726
Djibouti15,90014,80093.11,10013,63013,630
Dominica8,20011,165136.292,9732,6665,639
Dominican Republic218,900350,239160.03131,3400.21131,340
Ecuador302,300513,245169.817,153228,0960.37228,096
Egypt943,700943,715100.0
El Salvador171,300171,303100.0
Equatorial Guinea32,60032,609100.014837185
Eritrea15,90015,900100.05
Estonia, Republic of65,20065,195100.06
Ethiopia133,700126,52094.67,1882,824110,491113,315
Fiji70,30055,12578.415,189
Finland1,263,800739,34658.5524,539
France10,738,5006,614,02161.64,124,429
Gabon154,300190,241123.317936,1140.0636,114
Gambia, The31,10029,61895.21,48521,43921,439
Georgia150,300161,863107.71011,5630.02168,825180,388
Germany13,008,2007,850,10260.35,158,155
Ghana369,000369,004100.06298,065298,065
Greece823,000528,59264.2294,411
Grenada11,70014,631125.12,9302,930
Guatemala210,200210,206100.0
Guinea107,100107,02699.97586,11486,114
Guinea-Bissau14,20015,265107.5–61,06511,24912,314
Guyana90,90090,902100.059,69659,696
Haiti81,90081,83399.9689,1059,105
Honduras129,500120,87493.38,627124,573124,573
Hungary1,038,400673,02364.8365,378
Iceland117,60099,01684.218,585
India4,158,2003,271,22578.7887,011
Indonesia2,079,3008,674,546417.2145,5006,740,74210.856,740,742
Iran, Islamic Republic of1,497,2001,497,204100.0
Iraq504,000504,013100.0
Ireland838,400506,11260.4332,309
Israel928,200583,54762.9344,660
Italy7,055,5004,307,66061.12,747,847
Jamaica273,500277,415101.43,8650.013,865
Japan13,312,8008,312,97062.45,000,584
Jordan170,500427,520250.769257,0810.41257,081
Kazakhstan, Republic of365,700365,700100.05
Kenya271,400258,72095.312,68075,58675,586
Kiribati5,6005,59699.99
Korea1,633,6001,125,95368.9507,657
Kuwait1,381,100859,18462.2521,923
Kyrgyz Republic88,80088,800100.05138,767138,767
Lao People’s Democratic Republic52,90052,900100.028,09128,091
Latvia, Republic of126,800128,668101.5551,9061,906
Lebanon203,000184,16890.718,833
Lesotho34,90031,35989.93,54321,00021,000
Liberia71,300272,062381,628200,7810.32223,671
Libya1,123,700728,20664.8395,505
Lithuania, Republic of144,200168,337116,71624,1500.0424,150
Luxembourg279,100170,69561.2108,419
Macedonia, former Yugoslav Republic of68,90088,595128,6619,6930.0322,63842,331
Madagascar122,200122,174100.027138,143138,143
Malawi69,40084,462121,72,29017,3500.0349,33466,684
Malaysia1,486,600925,27462.2561,331
Maldives8,2006,64681.01,554
Mali93,30084,38790.48,924105,626105,626
Malta102,00061,74160.540,261
Marshall Islands3,5003,500100.01
Mauritania64,40064,404100.065,63365,633
Mauritius101,60079,72278.521,879
Mexico2,585,8002,032,53978.6553,309
Micronesia, Federated States of5,1005,100100.01
Moldova. Republic of123,200185,075150,2561,8750.1027,72089,595
Mongolia51,10050,99699.810731,31731,317
Morocco588,200517,75888.070,443
Mozambique113,600113,600100.07136,970136,970
Myanmar258,400258,402100.0
Namibia136,500136,447100.055
Nepal71,30065,53691.95,7747,1307,130
Netherlands5,162,4003,150,90461.02,011,528
New Zealand894,600547,02661.1347,595
Nicaragua130,000130,010100.0155,749155,749
Niger65,80057,23987.08,56384,57084,570
Nigeria1,753,2001,753,121100.0143
Norway1,671,7001,038,54462.1633,166
Oman194,000129,87466.964,181
Pakistan1,033,7001,382,677133,8118349,0940.56916,1281,265,222
Palau3,1003,100100.01
Panama206,600223,918108.411,86029,1670.0529,167
Papua New Guinea131,600207,027157,339875,8190.1275,819
Paraguay99,90078,42878.521,475
Peru638,400718,683112,680,2500.1380,250
Philippines879,9001,424,592161,987,358632,0441.02632,044
Poland, Republic of1,369,000850,15162.1518,851
Portugal867,400521,06260.1346,369
Qatar263,800163,44262.0100,359
Romania1,030,2001,406,884136.6376,6790.61376,679
Russian Federation5,945,4008,863,793149.11,5462,919,8304.702,919,830
Rwanda80,10080,113100.061,83561,835
St. Kitts and Nevis8,9008,81999.182
St. Lucia15,30015,295100.07
St. Vincent and the Grenadines8,3007,80094.0500
Samoa11,60010,91894.1693
San Marino, Republic of17,00012,90075.94,101
Säo Tomé and Príncipe7,4007,403100.01,9021,902
Saudi Arabia6,985,5004,440,69963.62,544,804
Senegal161,800160,29699.11,512155,373155,373
Serbia and Montenegro467,7001,051,273224.8583,5590.94583,559
Seychelles8,8008,798100.02
Sierra Leone103,700103,685100.024117,700117,700
Singapore862,500574,30666.6288,255
Slovak Republic357,500357,505100.0
Slovenia, Republic of231,700142,00661.389,700
Solomon Islands10,4009,85294.7550
Somalia44,200140,907318.896,7010.168,840112,004
South Africa1,868,5001,867,998100.0504
Spain3,048,9001,783,76258.51,265,163
Sri Lanka413,400586,250141.847,855220,6700.3738,390259,060
Sudan169,700507,342299.011337,6220.54396,850
Suriname92,10085,97693.46,125
Swaziland50,70044,15287.16,552
Sweden2,395,5001,483,75861.9911,749
Switzerland3,458,5002,145,70662.01,312,765
Syrian Arab Republic293,600293,603100.05
Tajikistan, Republic of87,00087,000100.0276,96076,960
Tanzania198,900188,90395.09,999293,483293,483
Thailand1,081,900995,88392.086,020
Timor-Leste, The Democratic Republic of8,2008,200100.01
Togo73,40073,06999.533224,97824,978
Tonga6,9005,19575.31,712
Trinidad and Tobago335,600209,73262.5125,873
Tunisia286,500266,31193.020,195
Turkey964,00016,436,1481,705,0112,77515,584,92025.0815,584,920
Turkmenistan, Republic of75,20075,200100.05
Uganda180,500180,506100.06151,451151,451
Ukraine1,372,0002,517,802183.531,145,8021.841,145,802
United Arab Emirates611,700395,01164.6217,301
United Kingdom10,738,5006,637,39361.84,101,181
United States37,149,30023,143,65662.313,997,168
Uruguay306,5002,025,607660.91,719,1002.771,719,100
Uzbekistan, Republic of275,600300,538109.0524,9380.0424,938
Vanuatu17,00014,50685.32,496
Venezuela, Repüblica Bolivariana de2,659,1002,337,19987.9321,902
Vietnam329,100330,107100.351,007214,800215,807
Yemen, Republic of243,500281,238115.51337,7500.06225,550263,300
Zambia489,100489,101100.01872,700504,193576,893
Zimbabwe353,400470,579133.2328117,5050.1981,378198,883
Total212,794,000212,086,12262,856,11062,152,682100.0085,7766,699,72869,026,767

Includes nonnegotiable, non-interest-bearing notes that members are entitled to issue in substitution for currencies, and outstanding currency valuation adjustments.

Represents the percentage used by each member of total use of GRA resources (column A).

The Special Disbursement Account (SDA) of the General Department had financed loans under Structural Adjustment Facility (SAF) and Poverty Reduction Growth Facility (PRGF) arrangements.

For information purposes only. The PRGF Trust provides financing under PRGF arrangements and is not a part of the General Department.

Includes outstanding Trust Fund loans to Liberia (SDR 23 million). Somalia (SDR 6 million), and Sudan (SDR 59 million).

Less than SDR 500.

Includes nonnegotiable, non-interest-bearing notes that members are entitled to issue in substitution for currencies, and outstanding currency valuation adjustments.

Represents the percentage used by each member of total use of GRA resources (column A).

The Special Disbursement Account (SDA) of the General Department had financed loans under Structural Adjustment Facility (SAF) and Poverty Reduction Growth Facility (PRGF) arrangements.

For information purposes only. The PRGF Trust provides financing under PRGF arrangements and is not a part of the General Department.

Includes outstanding Trust Fund loans to Liberia (SDR 23 million). Somalia (SDR 6 million), and Sudan (SDR 59 million).

Less than SDR 500.

Schedule 2 Financial Resources and Liquidity Position in the General Resources Account as at April 30, 2004 and 2003

(In thousands of SDRs)
20042003
Total Resources
Currencies212,086,122210,699,065
SDR holdings506,029962,641
Gold holdings5,851,7715,851,771
Other assets1955,814905,771
Total resources219,399,736218,419,248
Less: Non-Usable Resources2115,631,796120,427,867
of which: Credit Outstanding62,152,68265,977,977
Equals: Usable Resources3103,767,94097,991,381
Less: Undrawn balances under GRA arrangements419,799,32223,620,403
Equals: Uncommitted usable resources83,968,61874,370,978
Plus: Repurchases one year forward56,940,39619,066,175
Less: Prudential balance632,828,72032,612,340
Equals: One year forward commitment capacity (FCC)758,080,29460,824,813
Memorandum Items:
Resources available under borrowing arrangements34,000,00034,000,000
Quotas of members that finance IMF transactions164,143,600163,061,700
Net uncommitted usable resources875,051,05660,589,269
Liquid Liabilities962,856,11068,008,951
Liquidity ratio10119.4%89.1%

Other assets reflect current assets (charges, interest, and other receivables) and other assets (which include capital assets such as land, buildings, and equipment), net of other liabilities including remuneration payable.

Resources regarded as non-usable in the financing of the IMF’s ongoing operations and transactions are (1) gold holdings. (2) currencies of members that are using IMF credit. (3) currencies of other members with relatively weak external positions, and (4) other assets.

Usable resources consist of (1) holdings of currencies of members considered by the IMF as having balance of payments and reserve positions sufficiently strong for their currencies to be used in transfers. (2) SDR holdings, and (3) any unused amounts under credit lines that have been activated.

Amounts committed under arrangements but not yet disbursed. This includes arrangements considered precautionary.

Repurchases by member countries during the coming one-year period. It is assumed that repurchases would be made on an expectation basis for SRF, and on an obligation basis under all other facilities.

Prudential balance is set at 20 percent of quotas of members that issue the currencies that are used in the financing of IMF transactions and any amounts activated under borrowing arrangements.

FCC is a measure of the resources availabe for new financial commitments in the coming year. It is equal to uncommitted usable resources plus repurchases one-year forward minus the prudential balance.

Net uncommitted usable resources are defined as usable resources less resources committed under arrangements (adjusted to exclude inoperative arrangements, one-half of the amounts committed under precautionary arrangements) and minimum working balances (set at 10 percent of the quotas of members’ deemed sufficiently strong for their currencies to be used in operations and transactions).

Liquid liabilities consist of (1) membeis’ reserve tranche positions, and (2) the amount of any outstanding borrowing by the IMF under the GAB or NAB. Both reserve tranche positions and outstanding lending under the GAB and NAB (together called members’ reserve positions in the IMF) are part of members’ international reserves. A member may draw on its reserve position when it represents that it has a need, and the IMF must therefore at all times be in a position to meet such requests.

The liquidity ratio is a measure of the IMF’s liquidity position, represented by the ratio of its net uncommitted usable resources to its liquid liabilities.

Other assets reflect current assets (charges, interest, and other receivables) and other assets (which include capital assets such as land, buildings, and equipment), net of other liabilities including remuneration payable.

Resources regarded as non-usable in the financing of the IMF’s ongoing operations and transactions are (1) gold holdings. (2) currencies of members that are using IMF credit. (3) currencies of other members with relatively weak external positions, and (4) other assets.

Usable resources consist of (1) holdings of currencies of members considered by the IMF as having balance of payments and reserve positions sufficiently strong for their currencies to be used in transfers. (2) SDR holdings, and (3) any unused amounts under credit lines that have been activated.

Amounts committed under arrangements but not yet disbursed. This includes arrangements considered precautionary.

Repurchases by member countries during the coming one-year period. It is assumed that repurchases would be made on an expectation basis for SRF, and on an obligation basis under all other facilities.

Prudential balance is set at 20 percent of quotas of members that issue the currencies that are used in the financing of IMF transactions and any amounts activated under borrowing arrangements.

FCC is a measure of the resources availabe for new financial commitments in the coming year. It is equal to uncommitted usable resources plus repurchases one-year forward minus the prudential balance.

Net uncommitted usable resources are defined as usable resources less resources committed under arrangements (adjusted to exclude inoperative arrangements, one-half of the amounts committed under precautionary arrangements) and minimum working balances (set at 10 percent of the quotas of members’ deemed sufficiently strong for their currencies to be used in operations and transactions).

Liquid liabilities consist of (1) membeis’ reserve tranche positions, and (2) the amount of any outstanding borrowing by the IMF under the GAB or NAB. Both reserve tranche positions and outstanding lending under the GAB and NAB (together called members’ reserve positions in the IMF) are part of members’ international reserves. A member may draw on its reserve position when it represents that it has a need, and the IMF must therefore at all times be in a position to meet such requests.

The liquidity ratio is a measure of the IMF’s liquidity position, represented by the ratio of its net uncommitted usable resources to its liquid liabilities.

Schedule 3 Status of Arrangementsas at April 30, 2004

(In thousands of SDRs)
MemberDate of

Arrangement
ExpirationTotal Amount

Agreed
Undrawn

Balance
General Resources Account
Stand-By Arrangements
ArgentinaSeptember 20, 2003September 19, 20068,981,0004,810,000
BoliviaApril 2, 2003June 15, 200485,75021,430
BrazilSeptember 6, 2002March 31, 200527,375,120110,175,482
ColombiaJanuary 15, 2003January 14, 20051,548,0001,548,000
Dominican RepublicAugust 29, 2003August 28, 2005437,800306,460
JordanJuly 3, 2002July 2, 200485,28074,620
Macedonia, former Yugoslav Republic ofApril 30, 2003June 15, 200420,0008,000
ParaguayDecember 15, 2003March 31, 200550,00050,000
TurkeyFebruary 4, 2002February 3, 200512,821,2001,360,800
UkraineMarch 29, 2004March 28, 2005411,600411,600
UruguayApril 1, 2002March 31, 20052,128,3002559,200
Total Stand-By Arrangements53,944,05019,325,592
Extended Arrangements
Serbia and MontenegroMay 14, 2002May 13, 2005650,000350,000
Sri LankaApril 18, 2003April 17, 2006144,400123,730
Total Extended Arrangements794,400473,730
Total General Resources Account54,738,45019,799,322

Includes SDR 7.61 billion available until September 5, 2003 under the Supplemental Reserve Facility, of which SDR 3.8 billion was drawn.

Includes SDR 129 million available under the Supplemental Reserve Facility which has been fully drawn.

Includes SDR 7.61 billion available until September 5, 2003 under the Supplemental Reserve Facility, of which SDR 3.8 billion was drawn.

Includes SDR 129 million available under the Supplemental Reserve Facility which has been fully drawn.

PricewaterhouseCoopers LLP

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Report of Independent Auditors

To the Board of Governors of the International Monetary Fund:

In our opinion, the accompanying balance sheets and the related statements of income and cash flows give a true and fair view of the financial condition of the SDR Department of the International Monetary Fund (the “IMF”) as at April 30, 2004 and 2003, and its results of operations and cash flows for the years then ended in conformity with International Financial Reporting Standards. These financial statements are the responsibility of the IMF’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with International Standards on Auditing, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 176 to 181 is presented for purposes of adding additional analysis and is not a required part of the basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audits of the financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole.

June 7, 2004

SDR Department

Balance Sheets as at April 30, 2004 and 2003

(In thousands of SDRs)
2004200320042003
AssetsLiabilities
Charges receivable84,88293,221Interest payable85,22993,562
Overdue assessments and charges (Note 3)88,93385,849Participants with holdings above allocations (Note 2)
SDR holdings16,767,77215,971,257
Participants with holdings below allocations (Note 2)Less: allocations9,594,4849,465,384
Allocations11,838,84611,967,946
Less: SDR holdings3,865,8613,953,068Holdings in excess of allocations7,173,2886,505,873
Holdings by the General Resources Account506,029962,641
Allocations in excess of holdings7,972,9858,014,878Holdings of SDRs by prescribed holders382,254631,872
Total Assets8,146,8008,193,948Total Liabilities8,146,8008,193,948
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
/s/ Eduard Brau

Director, Finance Department
/s/ Rodrigo de Rato

Managing Director

Income Statements for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
20042003
Revenue
Net charges from participants with holdings below allocations131,593173,884
Assessments on SDR allocations1,4001,600
132,993175,484
Expenses
Interest on SDR holdings
Net interest to participants with holdings above allocations106,570134,405
General Resources Account16,63028,038
Prescribed holders8,39311,441
131,593173,884
Administrative expenses1,4001,600
132,993175,484
Net Income
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Statements of Cash Flows for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
20042003
Cash flows from operating activities
Receipts of SDRs
Transfers among participants and prescribed holders2,409,7456,000,803
Transfers from participants to the General Resources Account5,472,3014,554,703
Transfers from the General Resources Account to participants and prescribed holders5,928,9145,076,989
Total Receipts of SDRs13,810,96015,632,495
Uses of SDRs
Transfers among participants and prescribed holders2,293,0095,838,527
Transfers from participants to the General Resources Account5,454,0294,524,125
Transfers from the General Resources Account to participants and prescribed holders5,928,9145,076,989
Charges paid in the SDR Department131,931215,704
Other3,077(22,850)
Total Uses of SDRs13,810,96015,632,495
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Notes to the Financial Statements as at April 30, 2004 and 2003

1. Nature of Operations

The Special Drawing Right (SDR) is an international interest-bearing reserve asset created by the IMF following the First Amendment of the Articles of Agreement in 1969. All transactions and operations involving SDRs are conducted through the SDR Department. The SDR may be allocated by the IMF, as a supplement to existing reserve assets, to members participating in the SDR Department. Its value as a reserve asset derives, essentially, from the commitments of participants to hold and accept SDRs and to honor various obligations connected with its proper functioning as a reserve asset.

The resources of the SDR Department are held separately from the assets of all the other accounts of, or administered by, the IMF. They may not be used to meet the liability, obligations or losses of the Fund, incurred in the operations of the General Department or other accounts, except that the SDR Department reimburses the General Department for expenses incurred in conducting the business of the SDR Department.

At April 30, 2004, all members of the IMF were participants in the SDR Department. SDRs have been allocated by the IMF to members that are participants in the SDR Department at the time of the allocation in proportion to their quotas in the IMF. Six allocations have been made (in 1970, 1971, 1972, 1979, 1980, and 1981) for a total of SDR 21.4 billion. A proposed amendment of the IMF’s Articles of Agreement was approved by the Board of Governors in January 1998 to allow for a special one-time allocation of SDRs equal to 21.4 billion. The amendment will enter into force after three-fifths of the members, having 85 percent of the total voting power, have accepted it. Upon termination of participation or liquidation of the SDR Department, the IMF will provide to holders the currencies received from the participants in settlement of their obligations. The IMF is empowered to prescribe certain official entities as holders of SDRs; at April 30, 2004, 15 institutions were prescribed as holders (16 institutions at April 30, 2003). Prescribed holders do not receive allocations.

The SDR is also used by a number of international and regional organizations as a unit of account or as the basis for their units of account. Several international conventions also use the SDR as a unit of account, notably those expressing liability limits for the international transport of goods and services.

Uses of SDRs

Participants and prescribed holders can use and receive SDRs in transactions and operations by agreement among themselves. Participants can also use SDRs in operations and transactions involving the General Resources Account, such as the payment of charges and repurchases. The IMF ensures, by designating participants to provide freely usable currency in exchange for SDRs, that a participant can use its SDRs to obtain an equivalent amount of currency if it has a need because of its balance of payments, its reserve position, or developments in its reserves.

General Allocations and Cancellations of SDRs

The IMF has the authority to provide unconditional liquidity through general allocations of SDRs to participants in the SDR Department in proportion to their quotas in the IMF. The IMF cannot allocate SDRs to itself or to other holders it prescribes. The Articles also provide for the cancellation of SDRs, although to date there have been no cancellations. In its decisions on general allocations of SDRs, the IMF, as prescribed under its Articles, has sought to meet the long-term global need to supplement existing reserve assets in such a manner as will promote the attainment of the IMF’s purposes and avoid economic stagnation and deflation, as well as excess demand and inflation.

2. Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the SDR Department are prepared in accordance with International Financial Reporting Standards (IFRS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Unit of Account

The financial statements are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the SDR valuation basket. The IMF reviews the SDR valuation basket every five years. The latest review was completed in October 2000 and the new composition of the SDR valuation basket became effective on January 1, 2001. The currencies in the basket as of April 30, 2004 and 2003 and their amounts were as follows:

CurrencyAmount
Euro0.4260
Japanese yen21.0000
Pound sterling0.0984
U.S. dollar0.5770

As of April 30, 2004, one SDR was equal to 1.45183 U.S. dollars (one SDR was equal to 1.38391 U.S. dollars as of April 30, 2003).

Allocations and Holdings

At April 30, 2004 and 2003, IMF net cumulative allocations to participants totaled SDR 21.4 billion. Participants with holdings in excess of their allocations have established a net claim on the SDR Department, which is represented on the balance sheet as a liability. Participants with holdings below their allocations have used part of their allocations, which results in a net obligation to the SDR Department and is presented as an asset of the SDR Department. Participants’ net SDR positions as of April 30, 2004 and 2003 were as follows:

20042003
TotalBelow

Allocations
Above

Allocations
TotalBelow

Allocations
Above

Allocations
In millions of SDRs
Cumulative allocations21,433,311,838,89,594,521,433,311,967,99,465,4
Holdings of SDRs by participants20.633.63.865.816.767.819.924.43.953.115.971.3
Net SDR positions799.77.973.0(7.173.3)1.508.98,014,8(6.505.9)

A summary of SDR holdings is provided below:

20042003
In millions of SDRs
Participants20.633.619.924.4
General Resources Account506.0962.6
Prescribed holders382.3631.8
21.521.921.518.8
Less: Overdue charges receivable88.685.5
Total holdings21,433,321,433,3

Interest and Charges

Interest is paid on holdings of SDRs. Charges are levied on each participant’s cumulative allocations plus any allocations in excess of holdings of the participant and unpaid charges. Interest on SDR holdings is paid quarterly. Charges on net cumulative allocations are also collected quarterly. Interest and charges are levied at the same rate and are settled by crediting and debiting individual holdings accounts on the first day of the subsequent quarter. The SDR Department is required to pay interest to each holder, whether or not sufficient SDRs are received to meet the payment of interest. If sufficient SDRs are not received because charges are overdue, additional SDRs are temporarily created.

The rate of interest on the SDR is determined by reference to a combined market interest rate, which is a weighted average of yields or rates on short-term instruments in the capital markets of the euro area, Japan, the United Kingdom, and the United States. The combined market interest rate used to determine the SDR interest rate is calculated each Friday, using the yields or rates of that day. The SDR interest rate, which is set equal to the combined market interest rate, enters into effect on the following Monday and applies through the following Sunday. The average SDR interest rate was 1.58 percent for the year ended April 30, 2004 (2.07 percent for the year ended April 30, 2003).

Administrative Expenses

The expenses of conducting the business of the SDR Department are paid by the IMF from the General Resources Account, which is reimbursed in SDRs by the SDR Department at the end of each financial year. For this purpose, the SDR Department levies an assessment on all participants in proportion to their net cumulative allocations.

Overdue Obligations

An allowance for losses resulting from overdue SDR obligations would be created if and when the IMF were to expect a loss to be incurred; no losses have been incurred to date.

3. Overdue Assessments and Charges

At April 30, 2004, assessments and charges amounting to SDR 88.9 million were overdue to the SDR Department (SDR 85.8 million at April 30, 2003). At April 30, 2004 and 2003, four members were six months or more overdue in meeting their financial obligations to the SDR Department.

Assessments and charges due from members that are six months or more overdue to the SDR Department were as follows as of April 30:

20042003
In millions of SDRs
Total88.985.8
Overdue for six months or more87.483.9
Overdue for three years or more75.968.1

The amount and duration of arrears as of April 30, 2004 were as follows:

TotalLongest Overdue

Obligation
In millions of SDRs
Iraq54.3November 1990
Liberia24.2April 1986
Somalia10.3February 1991
Sudan0.1April 1991
Total88.9

Schedule 1 Statements of Changes in SDR Holdings for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
ParticipantsGeneral

Resources

Account
Prescribed

Holders
Total
20042003
Total holdings, beginning of the year19,924,326962,641631,87221,518,83921,541,689
Receipts of SDRs
Transfers among participants and prescribed holders
Transactions by agreement1,078,92361,0481,139,9712,858,416
Operations
Loans15,67515,675464,746
Settlement of financial obligations113,56198,881212,442721,619
IMF-related operations
SAF/PRGF loan296,530296,530771,606
SAF repayments and interest6,4536,453159,282
Special charges on SAF, PRGF, Trust Fund95
PRGF contributions and payments221,26262,754284,016498,838
PRGF repayments and interest332,338332,338334,263
HIPC payments2,830
PRGF-HIPC contributions9374,1535,09026,174
Post-Conflict Subsidy payment494494658
Net interest on SDRs107,4829,254116,736162,276
Transfers from participants to the General Resources Account
Repurchases2,981,3922,981,3921,954,711
Charges2,455,5682,455,5682,505,183
Quota payment15,67515,67562,468
Assessment on SDR allocation (Note 2)1,3941,3941,763
Interest on SDRs18,27218,27230,578
Transfers from the General Resources Account to participants and prescribed holders
Purchases3,500,2613,500,2612,215,089
In exchange for currencies of other members acquisitions to pay charges1,398,2381,398,2381,597,594
Remuneration946,840946,8401,175,248
Other
Refunds and adjustments83,57583,57589,058
Total receipts7,763,7785,472,301574,88113,810,96015,632,495
Uses of SDRs
Transfers among participants and prescribed holders
Transactions by agreement932,718207,2531,139,9712,858,416
Operations
Loans15,67515,675464,746
Settlement of financial obligations114,55697,886212,442721,619
IMF-related operations
SAF/PRGF Loan296,530296,530771,606
SAF repayments and interest6,4536,453159,282
Special charges on SAF, PRGF, Trust Fund95
PRGF contributions and payments91,538221,401312,939498,838
PRGF repayments and interest303,415303,415334,263
HIPC payments2,830
PRGF-HIPC contributions4,1539375,09026,174
Post-Conflict Subsidy payment494494658
Transfers from participants to the General Resources Account
Repurchases2,981,3922,981,3921,954,711
Charges2,455,5682,455,5682,505,183
Quota payment15,67515,67562,468
Assessment on SDR allocation (Note 2)1,3941,3941,763
Transfers from the General Resources Account to participants and prescribed holders
Purchases3,500,2613,500,2612,215,089
In exchange for currencies of other members
Acquisitions to pay charges1,398,2381,398,2381,597,594
Remuneration946,840946,8401,175,248
Other
Refunds and adjustments83,57583,57589,058
Charges paid in the SDR department
Net charges due135,008135,008192,854
Total uses7,057,5455,928,914824,50113,810,96015,632,495
Charges not paid when due3,2403,2405,873
Settlement of unpaid charges(163)(163)(28,723)
Total holdings, end of the year20,633,633506,029382,25421,521,91621,518,839
The ending balances contain rounding.
The ending balances contain rounding.

Schedule 2 Allocations and Holdings of Participants as at April 30, 2004

(In thousands of SDRs)
ParticipantNet

Cumulative

Allocations
TotalHoldings
Percent of

Cumulative

Allocations
(+) Above

(-) Below

Allocations
Afghanistan. Islamic State of26,7032911.1(26,412)
Albania63,67363,673
Algeria128,6409,5477.4(119,093)
Angola145145
Antigua and Barbuda66
Argentina318,370843,583265.0525,213
Armenia. Republic of17,59817,598
Australia470,545117,50825.0(353,037)
Austria179,045118,80566.4(60,240)
Azerbaijan4,6304,630
Bahamas, The10,230700.7(10,160)
Bahrain, Kingdom of6,20065810.6(5,542)
Bangladesh47,1201,9824.2(45,138)
Barbados8,039710.9(7,968)
Belarus, Republic of128128
Belgium485,246520,390107.235,144
Belize1,5771,577
Benin9,409901.0(9,319)
Bhutan256256
Bolivia26,70326,763100.260
Bosnia and Herzegovina20,4811,1005.4(19,381)
Botswana4,35933,745774.229,386
Brazil358,670185,47151.7(173,199)
Brunei Darussalam8,0738,073
Bulgaria*70,51370,513
Burkina Faso9,4091862.0(9,223)
Burundi13,6972111.5(13,486)
Cambodia15,4171,77611.5(13,641)
Cameroon24,4639854.0(23,478)
Canada779,290572,05973.4(207,231)
Cape Verde62040.6(616)
Central African Republic9,325600.6(9,265)
Chad9,409490.5(9,360)
Chile121,92431,72526.0(90,199)
China236,800757,407319.9520,607
Colombia114,271113,40499.2(867)
Comoros71640.6(712)
Congo, Democratic Republic of86,3095,0275.8(81,282)
Congo, Republic of9,7191031.1(9,616)
Costa Rica23,7261700.7(23,556)
Cöte d’Ivoire37,8282810.7(37,547)
Croatia. Republic of44,2054611.0(43,744)
Cyprus19,4382,14611.0(17,292)
Czech Republic
Denmark178,86438,99321.8(139,871)
Djibouti1,178877.4(1,091)
Dominica5926110.4(531)
Dominican Republic31,5851,1203.5(30,465)
Ecuador32,92911,88836,1(21,041)
Egypt135,92448,58735.7(87,337)
El Salvador24,98524,981100.0(4)
Equatorial Guinea5,812250.4(5,787)
Eritrea
Estonia. Republic of5353
Ethiopia11,1601,63314.6(9,527)
Fiji6,9585,22275.0(1,736)
Finland142,690113,58579.6(29,105)
France1,079,870525,26348.6(554,607)
Gabon14,0913412.4(13,750)
Gambia, The5,121250.5(5,096)
Georgia1,3641,364
Germany1,210,7601,326,256109.5115,496
Ghana62,98328,71645.6(34,267)
Greece103,54415,32714.8(88,217)
Grenada930555.9(875)
Guatemala27,6785,43719.6(22,241)
Guinea17,604(17,604)
Guinea-Bissau1,21266254.6(550)
Guyana14,5302,65518.3(11,875)
Haiti13,6972,17015.8(11,527)
Honduras19,0571790.9(18,878)
Hungary32,95132,951
Iceland16,409870.5(16,322)
India681,1701,5180.2(679,652)
Indonesia238,95644,89718.8(194,059)
Iran, Islamic Republic of244,056268,488110.024,432
Iraq68,464(68,464)
Ireland87,26354,17462.1(33,089)
Israel106,3607,2276.8(99,133)
Italy702,400138,56919.7(563,831)
Jamaica40,6134591.1(40,154)
Japan891,6901,842,560206.6950,870
Jordan16,8873,06818.2(13,819)
Kazakhstan, Republic of778778
Kenya36,9901,2283.3(35,762)
Kiribati1010
Korea72,91115,74321.6(57,168)
Kuwait26,744109,744410.383,000
Kyrgyz Republic9,8669,866
Lao People’s Democratic Republic9,40911,128118.31,719
Latvia, Republic of2323
Lebanon4,39320,765472.716,372
Lesotho3,73941711.1(3,322)
Liberia21,007(21,007)
Libya58,771465,033791.3406,262
Lithuania, Republic of192192
Luxembourg16,9558,68451.2(8,271)
Macedonia, former Yugoslav Republic of8,3794,38352.3(3,996)
Madagascar19,2701240.6(19,146)
Malawi10,9751,15010.5(9,825)
Malaysia139,048121,93287.7(17,116)
Maldives282307108.625
Mali15,9125583.5(15,354)
Malta11,28830,048266.218,760
Marshall Islands
Mauritania9.719480.5(9,671)
Mauritius15,74417,301109.91,557
Mexico290,020293,258101.13,238
Micronesia. Federated States of1,2011,201
Moldova, Republic of421421
Mongolia2626
Morocco85,68970,21981.9(15,470)
Mozambique5353
Myanmar43,4742110.5(43,263)
Namibia1717
Nepal8,1055196.4(7,586)
Netherlands530,340506,13695.4(24,204)
New Zealand141,32219,90514.1(121,417)
Nicaragua19,4837133.7(18,770)
Niger9,4091611.7(9,248)
Nigeria157,1551,0650.7(156,090)
Norway167,770217,918129.950,148
Oman6,2628,128129.81,866
Pakistan169,989164,20996.6(5,780)
Palau
Panama26,3229663.7(25,356)
Papua New Guinea9,3002,00221.5(7,298)
Paraguay13,69784,971620.471,274
Peru91,3191,1431.3(90,176)
Philippines116,5954,9734.3(111,622)
Poland, Republic of38,86538,865
Portugal53,32062,380117.09,060
Qatar12,82222,159172.89,337
Romania75,9502,7493.6(73,201)
Russian Federation17,37117,371
Rwanda13,69720,061146.56,364
St. Kitts and Nevis11
St. Lucia7421,494201.4752
St. Vincent and the Grenadines35441.0(350)
Samoa1,1422,406210.71,264
San Marino, Republic of506506
São Tomé and Príncipe620152.4(605)
Saudi Arabia195,527301,365154.1105,838
Senegal24,4621,7207.0(22,742)
Serbia and Montenegro56,6656,94612.3(49,719)
Seychelles40641.0(402)
Sierra Leone17,45519,718113.02,263
Singapore16,475182,1831.105.8165.708
Slovak Republic867867
Slovenia, Republic of25,4316,42825.3(19,003)
Solomon Islands65440.6(650)
Somalia13,697(13,697)
South Africa220,360222,790101.12,430
Spain298,805282,52194.6(16,284)
Sri Lanka70,8681,4072.0(69,461)
Sudan52,1922170.4(51,975)
Suriname7,7501,29616.7(6,454)
Swaziland6,4322,46838.4(3,964)
Sweden246,525117,14147.5(129,384)
Switzerland22,69522,695
Syrian Arab Republic36,5641900.5(36,374)
Tajikistan, Republic of574574
Tanzania31,3722130.7(31,159)
Thailand84,6521,0521.2(83,600)
Timor-Leste, The Democratic Republic of
Togo10,975570.5(10,918)
Tonga222222
Trinidad and Tobago46,2319852.1(45,246)
Tunisia34,24317,00049.6(17,243)
Turkey112,307148,035131.835,728
Turkmenistan, Republic of
Uganda29,3965,01617.1(24,380)
Ukraine7,0277,027
United Arab Emirates38,7371,2613.3(37,476)
United Kingdom1,913,070222,72111.6(1,690,349)
United States4,899,5308,571,679174.93,672,149
Uruguay49,97717,29334.6(32,684)
Uzbekistan. Republic of200200
Vanuatu897897
Venezuela316,8906,6192.1(310,271)
Vietnam47,6586901.4(46,968)
Yemen, Republic of28,74332,935114.64,192
Zambia68,2982,0883.1(66,210)
Zimbabwe10,20090.1(10,191)
Above Allocations9,594,48416,767,772174.87,173,288
Below Allocations11,838,8463,865,86132.7(7,972,985)
Total Participants21,433,33020,633,633
General Resources Account506,029
Prescribed Holders382,254
Overdue Charges88,586
21,521,91621,521,916

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Report of Independent Auditors

To the Board of Governors of the International Monetary Fund:

We have audited the accompanying combined balance sheets as at April 30, 2004 and 2003, and the related combined statements of income, changes in resources, and cash flows for the years then ended of the Poverty Reduction and Growth Facility Trust.

We have audited the accompanying combined balance sheets as at April 30, 2004 and 2003, and the related combined statements of income and changes in resources for the years then ended of the Poverty Reduction and Growth Facility-Heavily Indebted Poor Countries Trust and Related Accounts.

We have also audited the accompanying balance sheets as at April 30, 2004 and 2003, and the related statements of income and changes in resources for the years then ended of the following entities:

Poverty Reduction and Growth Facility Administered Accounts

  • –Austria
  • –Belgium
  • –Botswana
  • –Greece
  • –Indonesia
  • –Islamic Republic of Iran
  • –Portugal

Other Administered Accounts

  • –Administered Account Japan
  • –Administered Account for Selected Fund Activities
  • –Japan
  • –Framework Administered Account for Technical Assistance Activities
  • –Administered Account–Spain
  • –Supplementary Financing Facility Subsidy Account
  • –Post-Conflict Emergency Assistance Subsidy Account

These financial statements are the responsibility of management of the International Monetary Fund, as trustee or administrator of the trusts and accounts listed above. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits of these statements in accordance with International Standards on Auditing, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above give a true and lair view of the financial position of the trusts and accounts listed above as at April 30, 2004 and 2003, and the results of their operations for the years then ended in conformity with International Financial Reporting Standards.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information on pages 189 to 192 and 203 to 207 is presented for purposes of adding additional analysis and is not a required part of the basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audits of the respective financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the financial statements taken as a whole.

June 7, 2004

Poverty Reduction and Growth Facility Trust

Combined Balance Sheets as at April 30, 2004 and 2003

(In thousands of SDRs)
20042003
Assets
Cash and cash equivalents2,721,6702,481,040
Investments (Note 3)3,035,1283,205,052
Loans receivable (Note 4)6,699,7286,667,296
Interest receivable20,91518,979
Total Assets12,477,44112,372,367
Liabilities and Resources
Borrowings (Note 5)7,512,6567,431,854
Interest payable34,51839,333
Other liabilities4,4832,930
Total Liabilities7,551,6577,474,117
Resources4,925,7844,898,250
Total Liabilities and Resources12,477,44112,372,367
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
/s/ Eduard Brau/s/ Rodrigo de Rato
Director, Finance DepartmentManaging Director

Combined Statements of Income and Changes in Resources for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
20042003
Balance, beginning of the year4,898,2504,695,845
Investment income [Note 3)75,377119,657
Interest on loans33,58731,058
Interest expense(106,300)(137,618)
Other expenses(3,286)(3,238)
Operational (loss)/income(622)9,859
Contributions (Note 6)34,32643,287
33,70453,146
Transfers from the Special
Disbursement Account (Note 8)51,530213,259
Transfers through the Special
Disbursement Account to the PRGF-HIPC Trust (Note 8)(57,700)(64,000)
Net changes in resources27,534202,405
Balance, end of the year4,925,7844,898,250
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Combined Statements of Cash Flows for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
20042003
Cash flows from operating activities
Net (loss)/income(622)9,859
Adjustments to reconcile net income to cash generated by operations
Changes in interest payable and other liabilities(3,262)(225)
Changes in interest receivable(1,936)(2,986)
Cash from credit to members
Loan disbursements(865,215)(1,217,527)
Loan repayments832,783723,079
Net cash used in operating activities(38,252)(487,800)
Cash flows from Investment activities
Net acquisition of investments169,924(575,767)
Net cash provided (used) by investment activities169,924(575,767)
Cash flows from financing activities
864,9781,192,875
Repayment of borrowings(784,176)(525,455)
Contributions34,32643,287
Transfers from the Special Disbursement Account51,530213,259
Transfers through the Special Disbursement Account to the PRGF-HIPC Trust(57,700)(64,000)
Net cash provided by financing activities108,958859,966
Cash and cash equivalents, beginning of year2,481,0402,684,641
Cash and cash equivalents, end of year2,721,6702,481,040
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Notes to the Combined Financial Statements as at April 30, 2004 and 2003

1. Nature of Operations

The Poverty Reduction and Growth Facility Trust (PRGF Trust or the Trust), for which the IMF is Trustee, was established in December 1987 and was extended and enlarged in February 1994 to provide loans on concessional terms to qualifying low-income developing country members. The resources of the Trust are held separately from the assets of all other accounts of, or administered by, the IMF and may not be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

The operations of the Trust are conducted through a Loan Account, a Reserve Account, and a Subsidy Account. Combining balance sheets and statements of income and changes in resources for each of these accounts are provided in Note 9 to these financial statements.

Loan Account

The resources of the Loan Account consist of the proceeds from borrowings, repayments of principal, and interest payments on loans extended by the Trust. At April 30, 2004, loans totaling SDR 6,699.7 million were outstanding (SDR 6,667.3 million at April 30, 2003). At April 30, 2004, the resources of the Loan Account included cumulative advances from the Reserve Account of SDR 74.7 million resulting from the non-payment of principal by Zimbabwe (SDR 65.5 million at April 30, 2003).

Reserve Account

The resources of the Reserve Account consist of amounts transferred by the IMF from the Special Disbursement Account and net earnings from investment of resources held in the Reserve Account and in the Loan Account.

The resources held in the Reserve Account are to be used by the Trustee, in the event that borrowers’ principal repayments and interest payments, together with the authorized interest subsidy, are insufficient to repay loan principal and interest on borrowings of the Loan Account.

Subsidy Account

The resources held in the Subsidy Account consist of contributions to the Trust, including transfers of net earnings from PRGF Administered Accounts, SDR 400 million transferred by the IMF from the Special Disbursement Account, net earnings on loans made to the Trust for the Subsidy Account, and the net earnings from investment of Subsidy Account resources.

The resources available in the Subsidy Account are drawn by the Trustee to pay the difference, with respect to each interest period, between the interest due from the borrowers under the Trust and the interest due on Loan Account borrowings.

2. Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the PRGF Trust are prepared in accordance with International Financial Reporting Standards (IFRS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Revenue and Expense Recognition

The financial statements of the Trust are maintained on the accrual basis; accordingly, income is recognized as it is earned, and expenses are recorded as they are incurred.

Unit of Account

The financial statements are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the SDR valuation basket. The IMF reviews the SDR valuation basket every five years. The latest review was completed in October 2000 and the new composition of the SDR valuation basket became effective on January 1, 2001. The currencies in the basket as of April 30, 2004 and 2003 and their amounts were as follows:

CurrencyAmount
Euro0.4260
Japanese yen21.0000
Pound sterling0.0984
U.S. dollar0.5770

As of April 30, 2004, one SDR was equal to 1.45183 U.S. dollars (one SDR was equal to 1.38391 dollars as of April 30, 2003).

Cash and Cash Equivalents

Cash and cash equivalents include short-term deposits with a maturity of less than ninety days. These deposits are denominated in SDRs or other currencies and are carried at cost, which approximates fair value. Interest on these instruments varies and is based on prevailing market rates.

Investments

The Trust invests in debt securities and fixed-term deposits, which are classified as available for sale securities. Investments are marked to market on the last business day of the accounting period. The carrying amounts of investments approximate their fair value and the unrealized gains and losses are included in the income statements. Purchases are valued and reflected on the trade date basis and sales are based on the actual settlement date valuations. Investment income comprises interest income, realized and unrealized gains and losses on investments, including currency valuation differences arising from exchange rate movements against the SDR.

Interest rate risk is managed by limiting the investment portfolio to a weighted-average effective duration that does not exceed three years. Currency risk is minimized by investing in securities denominated in SDRs or in the constituent currencies of the SDR valuation basket. Risk is further minimized by ensuring that the currency composition of the investment portfolio matches, as closely as possible, the currency composition of the SDR valuation basket.

Loans

Loans in the Trust are initially recorded at the amount disbursed provided that the present value of the cash flows from stated interest due and the Subsidy Account is equal to or exceeds the disbursed amount. Thereafter, the carrying value of the loans is amortized cost.

Overdue Obligations

It is the Trust’s policy to exclude from income interest on loans that are six months or more overdue. An impairment loss is recognized only if there is objective evidence of impairment as a result of a past event that occurred after initial recognition and is determined as the difference between the outstanding loan’s carrying amount and the present value of estimated future cash flows.

Contributions

Bilateral contributions are reflected as increases in resources after the achievement of specified conditions and are subject to bilateral agreements stipulating how the resources are to be used.

Transfers

Internal transfers of resources within the IMF are accounted for under the accrual method of accounting.

Foreign Currency Translation

Foreign currency transactions are recorded at the rate of exchange on the date of the transaction. At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are reported using the closing exchange rates. Exchange differences arising from the settlement of transactions at rates different from those at the originating date of the transaction and unrealized foreign exchange differences on unsettled foreign currency monetary assets and liabilities are included in the determination of net income.

Comparatives

When necessary, comparative figures have been reclassified to conform with changes in the presentation of the current year.

3. Investments

The maturities of the investments are as follows:

Maturity as at April 3020042003
In thousands of SDRs
Less than 1 year2,831,3902,612,829
1-3 years168,542566,905
3-5 years4,982
Over 5 years35,19620,336
Total3,035,1283,205,052

At April 30, the investments consisted of the following:

20042003
In thousands of SDRs
Debt securities2,800,2832,923,255
Fixed-term deposits234,845281,797
Total3,035,1283,205,052

At April 30, investment income comprised:

20042003
In thousands of SDRs
Interest income119,077144,544
Realized losses, net(70,151)(52,803)
Unrealized gains, net26,64729,686
Exchange rate losses, net(196)(1,770)
Total75,377119,657

4. Loans Receivable

Resources of the Loan Account are committed to qualifying members for a three-year period, upon approval by the Trustee of three-year arrangements in support of the members’ macroeconomic and structural adjustment programs. Interest on the outstanding loan balances is set at the rate of ½ of 1 percent per annum. Scheduled repayments of loans by borrowers are summarized below:

Period of Repayment,

Financial Year Ending

April 30
In thousands of SDRs
2005881,952
2006854,789
2007726,142
2008815,876
2009820,734
2010 and beyond2,525,537
Overdue74,698
Total6,699,728

The above includes one member that is overdue at the end of financial year 2004 for more than six months in the amount of SDR 74.7 million (SDR 65.5 million as at April 30, 2003).

As of April 30, use of credit in the Trust by the largest users was as follows:

20042003
In millions of SDRs and

percent of total PRGF credit
Largest user of credit916.113.7%737.611.1%
Three largest users of credit1,920,428.7%1,820,827.3%
Five largest users of credit2,512,037.5%2,469,937.0%

5. Borrowings

The following summarizes the borrowing agreements concluded as of April 30:

Amount Undrawn
20042003
In thousands of SDRs
Loan Account4,856,8125,718,318
Subsidy Account65,1673,330

The Trustee has agreed to hold and invest, on behalf of a lender, principal repayments of Trust borrowing in a suspense account within the Loan Account. Principal repayments will be accumulated until the final maturity of the borrowing, when the full proceeds are to be transferred to the lender. Amounts deposited in this account are invested by the Trustee, and payments of interest to the lender are to be made exclusively from the earnings on the amounts invested.

The Trust borrows on such terms and conditions as agreed between the Trustee and the lenders. Interest rates on borrowings as at April 30, 2004 varied between 0.5 percent and 6.5 percent a year (0.5 percent and 6.9 percent a year as at April 30, 2003). The principal amounts of the borrowings are repayable between 5½ and 16 years after the first drawing.

Scheduled repayments of borrowings are summarized below:

Period of Repayment

Financial Year

Ending April 30
In thousands of SDRs
2005953,566
20061,504,589
2007982,706
2008822,951
2009822,916
2010 and beyond2,425,928
Total7,512,656

Borrowings and repayments during the financial year ended April 30, 2004 amounted to SDR 865 million and SDR 784 million, respectively (SDR 1,194 million and SDR 526 million, respectively, for the financial year ended April 30, 2003).

6. Contributions

The Trustee accepts contributions for the Subsidy Account on such terms and conditions as agreed between the Trustee and the contributors. At April 30, 2004, cumulative contributions received, including transfers from the Special Disbursement Account, amounted to SDR 2,430.0 million (SDR 2,395.8 million at April 30, 2003).

7. Commitments Under Loan Arrangements

An arrangement is a decision of the IMF that gives a member the assurance that the institution stands ready to provide foreign exchange or SDRs during a specified period and up to a specified amount in accordance with the terms of the decision. At April 30, 2004, undrawn balances under 36 loan arrangements amounted to SDR 2,088.9 million (SDR 2,473.8 million under 36 arrangements at April 30, 2003).

8. Transfers Through the Special Disbursement Account

The expenses of conducting the business of the Trust are paid by the General Resources Account of the IMF and reimbursed by the Reserve Account of the Trust through the Special Disbursement Account; corresponding transfers are made from the Reserve Account to the Special Disbursement Account when and to the extent needed. For financial years 2004 and 2003, the Executive Board of the IMF decided to forgo such reimbursement to the General Resources Account and to transfer an equivalent amount from the Reserve Account, through the Special Disbursement Account, to the PRGF-HIPC Trust. The amounts transferred for financial years 2004 and 2003 were SDR 57.7 million and SDR 64.0 million respectively.

Resources of up to SDR 250 million may be transferred, as needed, from the Reserve Account through the Special Disbursement Account to the PRGF-HIPC Trust to be used to provide grants or loans to eligible members under the HIPC initiative. At April 30, 2004 and 2003, SDR 43.5 million had been transferred for this purpose.

9. Combining Balance Sheets, Statements of Income, and Changes in Resources

The balance sheets, statements of income and changes in resources for each of the accounts in the PRGF Trust are presented below:

Note 9 Combining Balance Sheets as at April 30, 2004 and 2003

(In thousands of SDRs)
Loan AccountReserve AccountSubsidy AccountCombined
20042003200420032004200320042003
Assets
Cash and cash equivalents627,730453,7181,050,1191,102,8401,043,821924,4822,721,6702,481,040
Investments (Note 3)234,846281,7971,999,1651,959,143801,117964,1123,035,1283,205,052
Loans receivable (Note 4)6,699,7286,667,2966,699,7286,667,296
Accrued account transfers20,20219,27048,0953,208(68,297)(22,478)
Interest receivable19,86617,3389611,3298831220,91518,979
Total Assets7,602,3727,439,4193,098,3403,066,5201,776,7291,866,42812,477,44112,372,367
Liabilities and Resources
Borrowings (Note 5)7,488,7077,333,06823,94998,7867,512,6567,431,854
Interest payable34,48437,878341,45534,51839,333
Other liabilities4,4832,9304,4832,930
Total Liabilities7,527,6747,373,87623,983100,2417,551,6577,474,117
Resources74,69865,5433,098,3403,066,5201,752,7461,766,1874,925,7844,898,250
Total Liabilities and Resources7,602,3727,439,4193,098,3403,066,5201,776,7291,866,42812,477,44112,372,367

Combining Statements of Income and Changes in Resources for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
Loan AccountReserve AccountSubsidy AccountCombined
20042003200420032004200320042003
Balance, beginning of the year65,54341,4943,066,5202,869,7911,766,1871,784,5604,898,2504,695,845
Investment income (Note 3)48,85674,91826,52144,73975,377119,657
Interest on loans33,58731,05833,58731,058
Interest expense(104,912)(135,951)(1,388)(1,667)(106,300)(137,618)
Other expenses(1,711)(1,575)(1,575)(1,663)(3,286)(3,238)
Operational (loss) income(71,325)(104,893)47,14573,34323,55841,409(622)9,859
Contributions (Note 6)34,32643,28734,32643,287
(71,325)(104,893)47,14573,34357,88484,69633,70453,146
Transfers from the Special
Disbursement Account (Note 8)51,530213,25951,530213,259
Transfers through the Special
Disbursement Account to the
PRGF HIPC Trust (Note 8)(57,700)(64,000)(57,700)(64,000)
Transfers between:
Loan and Reserve Accounts9,15525,873(9,155)(25,873)
Loan and Subsidy Accounts71,325103,069(71,325)(103,069)
Net changes in resources9,15524,04931,820196,729(13,441)(18,373)27,534202,405
Balance, end of the year74,69865,5433,098,3403,066,5201,752,7461,766,1874,925,7844,898,250

Schedule 1 Schedule of Outstanding Loans as at April 30, 2004

(In thousands of SDRs)
PRGF Loan AccountStructural Adjustment Facility1
MemberBalancePercentBalancePercent
Albania63,2750.94
Armenia, Republic of132,3501.98
Azerbaijan105,0181.57
Bangladesh99,0001.48
Benin47,8380.71
Bolivia115,7041.73
Burkina Faso82,3061.231,2641.47
Burundi26,4000.39
Cambodia66,9001.00
Cameroon225,4553.37
Cape Verde4,9200.07
Central African Republic23,6560.35
Chad69,8831.04
Congo, Democratic Republic of500,0677.46
Congo, Republic of6,9480.10
Cöte d’Ivoire271,7294.06
Djibouti13,6300.20
Dominica2,6660.04
Equatorial Guinea371480.17
Ethiopia110,4911.652,8243.29
Gambia, The21,4390.32
Georgia168,8252.52
Ghana298,0654.45
Guinea86,1141.29
Guinea-Bissau11,2490.17
Guyana59,6960.89
Haiti9,1050.14
Honduras124,5731.86
Kenya75,5851.13
Kyrgyz Republic138,7662.07
Lao People’s Democratic Republic28,0910.42
Lesotho21,0000.31
Macedonia, former Yugoslav Republic of22,6380.34
Madagascar138,1432.06
Malawi49,3330.74
Mali105,6261.58
Mauritania65,6330.98
Moldova, Republic of27,7200.41
Mongolia31,3170.47
Mozambique136,9702.04
Nepal7,1300.11
Nicaragua155,7482.32
Niger84,5701.26
Pakistan916,12813.67
Rwanda61,8350.92
São Tomé and Príncipe1,9020.03
Senegal155,3722.32
Sierra Leone117,7001.76
Somalia8,84010.31
Sri Lanka38,3900.57
Tajikistan, Republic of76,9601.15
Tanzania293,4824.38
Togo24,9780.37
Uganda151,4512.26
Vietnam214,8003.21
Yemen, Republic of225,5503.37
Zambia504,1937.5372,70084.76
Zimbabwe81,3781.21
Total loans outstanding6,699,728100.0085,776100.00

Since Structural Adjustment Facility (SAF) loans have been disbursed in connection with PRGF arrangements, the above list includes these loans, as well as loans disbursed to members under SAF arrangements. These loans are held by the Special Disbursement Account, and reflected in the financial statements of the General Department. Repayments of all SAF loans are transferred to the PRGF Reserve Account when received.

Since Structural Adjustment Facility (SAF) loans have been disbursed in connection with PRGF arrangements, the above list includes these loans, as well as loans disbursed to members under SAF arrangements. These loans are held by the Special Disbursement Account, and reflected in the financial statements of the General Department. Repayments of all SAF loans are transferred to the PRGF Reserve Account when received.

Schedule 2 Contributions to and Resources of the Subsidy Account as at April 30, 2004

(In thousands of SDRs)
Contributor1Amount
Direct contributions to the Subsidy Account
Argentina20,400
Australia6,770
Bangladesh486
Canada182,198
China8,500
Czech Republic10,004
Denmark38,299
Egypt10,002
Finland22,684
Germany132,832
Iceland3,200
India7,204
Ireland4,740
Italy150,261
Japan506,997
Korea32,191
Luxembourg8,945
Morocco7,284
Netherlands94,372
Norway28,074
Sweden110,887
Switzerland37,075
Turkey6,000
United Kingdom316,564
United States126,079
Total direct contributions to the Subsidy Account1,872,048
Net income transferred from PRGF Administered Accounts
Austria40,341
Belgium77,953
Botswana1,352
Chile2,910
Greece25,941
Indonesia4,936
Iran, Islamic Republic of1,364
Portugal3,239
Total net income transferred from Administered Accounts158,036
Total contributions received2,030,084
Transfers from Special Disbursement Account400,000
Total contributions received and transfers from Special Disbursement Account2,430,084
Cumulative net income of the Subsidy Account861,439
Resources disbursed to subsidize Trust lending(1,538,777)
Total resources of the Subsidy Account1,752,746

In addition to direct contributions, a number of members also make loans available to the Loan Account on concessional terms. See Schedule 3.

In addition to direct contributions, a number of members also make loans available to the Loan Account on concessional terms. See Schedule 3.

Schedule 3 Schedule of Borrowing Agreements as at April 30, 2004

(In thousands of SDRs)
MemberInterest Rate (In percent)Amount of AgreementAmount DrawnOutstanding Balance
Loan Account
Prior to enlargement of PRGF
CanadaFixed1300,000300,00070,671
France0.52800,000800,000114,286
GermanyVariable3700,000700,000152,802
ItalyVariable3370,000370,00073,438
JapanVariable32,200,0002,200,000540,630
KoreaVariable365,00065,0004,195
NorwayVariable390,00090,00013,000
Total prior to enlargement of PRGF4,525,0004,525,000969,022
For enlargement of PRGF
BelgiumVariable3350,000242,331242,331
CanadaVariable3400,000338,713317,330
ChinaVariable3200,000153,492140,610
DenmarkVariable3100,000100,000100,000
EgyptVariable3155,600100,00087,362
FranceVariable22,100,000935,571880,155
GermanyVariable32,050,000909,834866,852
ItalyVariable31,010,000575,392570,413
JapanVariable32,934,8001,992,7781,931,423
KoreaVariable327,70027,70025,881
NetherlandsVariable3450,000140,355140,355
NorwayVariable360,00060,00053,280
OPEC Fund for International DevelopmentVariable334,439136,99036,990
Spain-Bank of SpainVariable3425,00041,41041,410
Spain-Government of Spain (ICO)Fixed67,00067,00062,504
SwitzerlandVariable3401,700187,861160,213
Total for enlargement of PRGF10,766,2395,909,4275,657,109
Resources held pending repayment5862,5765
Total-Loan Account15,291,23910,434,4277,488,707
Subsidy Account
Malta0.501,3651,3651,365
Pakistan0.5010,0007,3377,337
Spain-Government of Spain (ICO)0.5067,0004,4964,496
Tunisia0.503,5513,5513,551
UruguayVariable67,2007,2007,200
Total-Subsidy Account89,11623,94923,949

The loans under this agreement are made at market-related rates of interest fixed at the time the loan was disbursed.

The agreement with France made before the enlargement of PRGF (SDR 800 million) provides that the interest rate shall be 0.5 percent on the first SDR 700 million drawn, and at variable, market-related rates of interest thereafter. The agreement with France made for the enlargement of the PRGF (SDR 2.1 billion) provides that the interest rate shall be 0.5 percent until the cumulative implicit interest subsidy reaches SDR 250 million, and at variable, market-related rates of interest thereafter.

The loans under these agreements are made at variable, market-related rates of interest.

The agreement with the OPEC Fund for International Development is for an amount of $50 million, or SDR 34.4 million based on the exchange rate of 0.688785 SDR per US dollar as at April 30, 2004.

This amount represents principal repayments held and invested on behalf of a lender.

The interest rate payable on the borrowing from Uruguay is equal to the rate on SDR-denominated deposits less 2.6 percent a year.

The loans under this agreement are made at market-related rates of interest fixed at the time the loan was disbursed.

The agreement with France made before the enlargement of PRGF (SDR 800 million) provides that the interest rate shall be 0.5 percent on the first SDR 700 million drawn, and at variable, market-related rates of interest thereafter. The agreement with France made for the enlargement of the PRGF (SDR 2.1 billion) provides that the interest rate shall be 0.5 percent until the cumulative implicit interest subsidy reaches SDR 250 million, and at variable, market-related rates of interest thereafter.

The loans under these agreements are made at variable, market-related rates of interest.

The agreement with the OPEC Fund for International Development is for an amount of $50 million, or SDR 34.4 million based on the exchange rate of 0.688785 SDR per US dollar as at April 30, 2004.

This amount represents principal repayments held and invested on behalf of a lender.

The interest rate payable on the borrowing from Uruguay is equal to the rate on SDR-denominated deposits less 2.6 percent a year.

Schedule 4 Status of Loan Arrangements1 as at April 30, 2004

(In thousands of SDRs)
MemberDate of ArrangementExpiration DateAmount AgreedUndrawn Balance
AlbaniaJun. 21, 2002Jun. 20, 200528,00012,000
Armenia, Republic ofMay 23, 2001May 22, 200469,00019,000
AzerbaijanJul. 6, 2001Mar. 31, 200580,45038,610
BangladeshJun. 20, 2003Jun. 19, 2006347,000248,000
Burkina FasoJun. 11, 2003Jun. 10, 200624,08017,200
BurundiJan. 23, 2004Jan. 22, 200769,30042,900
CameroonDec. 21, 2000Dec. 20, 2004111,42031,830
Cape VerdeApr. 10, 2002Apr. 9, 20058,6403,720
Congo. Democratic Republic ofJun. 12, 2002Jun. 11, 2005580,00079,933
Cöte d’IvoireMar. 29, 2002Mar. 28, 2005292,680234,140
DominicaDec. 29, 2003Dec. 28, 20067,6885,022
EthiopiaMar. 22, 2001Jul. 31, 2004100,27710,429
Gambia, TheJul. 18, 2002Jul. 17, 200520,22017,330
GhanaMay 9, 2003May 8, 2006184,500131,800
GuineaMay 2, 2001May 1, 200464,26038,556
GuyanaSep. 20, 2002Mar. 19, 200654,55043,030
HondurasFeb. 27, 2004Feb. 26, 200771,20061,029
KenyaNov. 21, 2003Nov. 20, 2006175,000150,000
Kyrgyz RepublicDec. 6, 2001Dec. 5, 200473,40019,120
Lao People’s Democratic RepublicApr. 25, 2001Apr. 24, 200531,70013,580
LesothoMar. 9, 2001Jun. 30, 200424,5003,500
MadagascarMar. 1, 2001Mar. 1, 200591,65022,695
MalawiDec. 21, 2000Dec. 20, 200445,11032,230
MauritaniaJul. 18, 2003Jul. 17, 20066,4405,520
MongoliaSep. 28, 2001Jul. 31, 200528,49016,280
NepalNov. 19, 2003Nov. 18, 200649,91042,780
NicaraguaDec. 13, 2002Dec. 12, 200597,50055,710
NigerDec. 22, 2000Jun. 30, 200459,2008,440
PakistanDec. 6, 2001Dec. 5, 20041,033,700344,560
RwandaAug. 12, 2002Aug. 11, 20054,0002,855
SenegalApr. 28, 2003Apr. 27, 200624,27017,330
Sierra LeoneSep. 26, 2001Mar. 25, 2005130,84028,003
Sri LankaApr. 18, 2003Apr. 17, 2006269,000230,610
Tajikistan, Republic ofDec. 11, 2002Dec. 10, 200565,00039,200
TanzaniaAug. 16, 2003Aug. 15, 200619,60014,000
UgandaSep. 13, 2002Sep. 12, 200513,5008,000
4,356,0752,088,942

The Saudi Fund for Development may also provide resources to support arrangements under the PRGF through loans to qualifying members in association with loans under the PRGF As at April 30, 2004, SDR 49.5 million of such associated loans had been disbursed.

The Saudi Fund for Development may also provide resources to support arrangements under the PRGF through loans to qualifying members in association with loans under the PRGF As at April 30, 2004, SDR 49.5 million of such associated loans had been disbursed.

Poverty Reduction and Growth Facility Administered Accounts

Balance Sheets as at April 30, 2004 and 2003

(In thousands of SDRs)
AustriaBelgiumBotswana
200420032004200320042003
Assets
Cash and cash equivalents80,000
Investments (Note 3)15,00025,0006,894
Advance payments to the
PRGF Trust Subsidy Account67102116
Interest receivable225
Total Assets15,06725,10280,2257,010
Liabilities and Resources
Deposits (Note 4)15,00025,00080,0006,894
Interest payable671022116
Total Liabilities15,06725,10280,0027,010
Resources223
Total Liabilities and Resources15,06725,10280,2257,010
GreeceIndonesiaIran,1. R. ofPortugal
20042003200420032004200320042003
Assets
Cash and cash equivalents25,00025,000
Investments (Note 3)7,0005,0005,0008,76410,517
Advance payments to the
PRGF Trust Subsidy Account1523234250
Interest receivable170
Total Assets7,01525,00125,0705,0235,0238,80610,567
Liabilities and Resources
Deposits (Note 4)7,00025,00025,0005,0005,0008,76410,517
Interest payable151723234250
Total Liabilities7,01525,00025,0175,0235,0238,80610,567
Resources153
Total Liabilities and Resources7,01525,00125,0705,0235,0238,80610,567
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
/s/ Eduard Brau/s/ Rodrigo de Rato
Director, Finance DepartmentManaging Director

Statements of Income and Changes in Resources for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
AustriaBelgiumBotswana
200420032004200320042003
Balance, beginning of the year22318
Investment income3358011,2271,630104178
Other expenses(13)(20)(4)(4)
Interest expense on deposits(102)(130)(399)(400)(115)(138)
Net income2206518281,230(15)36
Transfers (to)/from the:
PRGF Trust Subsidy Account(220)(651)(1,051)(1,025)15(36)
Net changes in resources(223)205
Balance, end of the year223
GreeceIndonesiaIran, I. R. ofPortugal
20042003200420032004200320042003
Balance, beginning of the year5396
Investment income8432540250881130143274
Other expenses(3)(8)(4)(3)(6)(7)
Interest expense on deposits(26)(61)(62)(25)(25)(44)(53)
Net income552564024465210293214
Transfers (to)/from the:
PRGF Trust Subsidy Account(55)(256)(454)(489)(52)(102)(93)(214)
Net changes in resources(52)(43)
Balance, end of the year153
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Notes to the Financial Statements as at April 30, 2004 and 2003

1. Nature of Operations

At the request of certain member countries, the IMF established the Poverty Reduction and Growth Facility Administered Accounts (“PRGF Administered Accounts” or “Administered Accounts”) for the benefit of the Subsidy Account of the PRGF Trust. The Administered Accounts comprise deposits made by contributors. The difference between interest earned by the Administered Accounts and the interest payable on deposits is transferred to the Subsidy Account of the PRGF Trust.

The Saudi Fund for Development (SFD) Special Account was established at the request of the SFD to provide supplementary financing in association with loans under the Poverty Reduction and Growth Facility (PRGF). IMF acts as the agent of the SFD. Disbursements from the SFD Special Account are made simultaneously with PRGF disbursements. Payments of interest and principal due to the SFD under associated loans are to be transferred to the SFD.

The resources of each administered account are held separately from the assets of all other accounts of, or administered by, the IMF and may not be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

2. Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the Administered Accounts are prepared in accordance with International Financial Reporting Standards (IFRS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The financial statements do not include a cash flow statement because the statement of income and changes in resources includes the Administered Accounts’ main cash flows.

Revenue and Expense Recognition

The financial statements are maintained on the accrual basis; accordingly, income is recognized as it is earned and expenses are recorded as they are incurred.

Unit of Account

The financial statements are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the SDR valuation basket. The IMF reviews the SDR valuation basket every five years. The latest review was completed in October 2000 and the new composition of the SDR valuation basket became effective on January 1, 2001. The currencies in the basket as of April 30, 2004 and 2003 and their amounts were as follows:

CurrencyAmount
Euro0.4260
Japanese yen21.0000
Pound sterling0.0984
U.S. dollar0.5770

As of April 30, 2004, one SDR was equal to 1.45183 U.S. dollars (1.38391 U.S. dollars as of April 30, 2003).

Cash and Cash Equivalents

Cash and cash equivalents include short-term deposits with a maturity of less than ninety days. These deposits are denominated in SDRs or other currencies and are carried at cost, which approximates fair value. Interest received on these instruments varies and is based on prevailing market rates.

Investments

Investments are made in debt securities which are classified as available for sale securities. Investments are marked to market value on the last business day of the accounting period. The carrying amounts of investments approximate their fair value and the unrealized gains and losses are included in the income statements. Purchases are valued and reflected on the trade date basis and sales are based on the actual settlement date valuations. Investment income comprises interest income, realized and unrealized gains and losses, including currency valuation differences arising from exchange rate movements against the SDR.

Interest rate risk is managed by limiting the investment portfolio to a weighted-average effective duration that does not exceed three years. Currency risk is minimized by investing in securities denominated in SDRs or in the constituent currencies of the SDR valuation basket. Risk is further minimized by ensuring that the currency composition of the investment portfolio matches, as closely as possible, the currency composition of the SDR valuation basket

Transfers

Internal transfers of resources within the IMF are accounted for under the accrual method of accounting.

Foreign Currency Translation

Foreign currency transactions are recorded at the rate of exchange on the date of the transaction. At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are reported using the closing exchange rates. Exchange differences arising from the settlement of transactions at rates different from those at the originating date of the transaction and unrealized foreign exchange differences on unsettled foreign currency monetary assets and liabilities are included in the determination of net income.

Transfers to PRGF Trust Subsidy Account

The difference between the income earned by the Administered Accounts on the amount invested and the interest payable on the deposits of the Administered Accounts, net of any cost, is to be transferred to the Subsidy Account of the PRGF Trust.

Administrative Costs

The expenses of conducting the activities of the Administered Accounts are incurred and borne by the General Department of the IMF.

3. Investments

The maturities of the Administered Accounts’ investments, consisting of debt securities, are as follows:

Maturity as at April 3020042003
In thousands of SDRs
Less than 1 year28,43350,374
1-3 years3313,950
3-5 years87
Total28,76454,411

At April 30, investment income comprised:

20042003
In thousands of SDRs
Interest income2,9284,313
Realized losses, net(696)(560)
Unrealized gains, net14493
Total2,3763,846

4. Deposits

Austria

The Administered Account Austria was established on December 27, 1988 for the administration of resources deposited in the account by the Austrian National Bank. Two deposits (one of SDR 60.0 million made on December 30, 1988 and one of SDR 50.0 million made on August 10, 1995) are to be repaid in ten equal semiannual installments beginning five and a half years after the date of each deposit and ending at the end of the tenth year after the date of each deposit. The deposits bear interest at a rate of ½ of 1 percent a year. The first deposit from Austria had been repaid in full.

Belgium

The Administered Account Belgium was established on July 27, 1988 for the administration of resources deposited in the account by the National Bank of Belgium. Four deposits (SDR 30.0 million made on July 29, 1988; SDR 35.0 million made on December 30, 1988; SDR 35.0 million made on June 30, 1989; and SDR 80.0 million made on April 29, 1994) have an initial maturity of six months and are renewable by the IMF on the same basis. The final maturity of each deposit, including renewals, will be ten years from the initial dates of the individual deposits. The deposits bear interest at a rate of ½ of 1 percent a year. In accordance with an addendum to the account, effective on July 24, 1998, the maturities of the first three deposits will be extended by the National Bank of Belgium, for further periods of six months, provided that the total maturity period of each deposit does not exceed five years. The deposits are invested by the IMF as administrator, and the IMF as administrator pays the National Bank of Belgium interest on each deposit at an annual rate of ½ of 1 percent. The difference between the interest paid to the National Bank of Belgium and the interest earned on the deposits (net of any cost to the IMF) was retained in the account and invested. As of January 31, 2001, the Ministry of Finance of Belgium authorized a transfer of SDR 8.2 million in net earnings to the PRGF-HIPC Trust. All deposits have been repaid in full.

Botswana

The Administered Account Botswana was established on July 1, 1994 for the administration of resources deposited in the account by the Bank of Botswana. The deposit, totaling SDR 6.9 million, is to be repaid in one installment ten years after the date of deposit. The deposit bears interest at a rate of 2 percent a year. The deposit was repaid in full on March 1, 2004.

Greece

The Administered Account Greece was established on November 30, 1988 for the administration of resources deposited in the account by the Bank of Greece. Two deposits of SDR 35.0 million each (December 15, 1988 and April 29, 1994) are to be repaid in ten equal semiannual installments beginning five and a half years after the date of deposit and will be completed at the end of the tenth year after the date of the deposits. The deposits bear interest at a rate of ½ of 1 percent a year. The two deposits from Greece have been repaid in full.

Indonesia

The Administered Account Indonesia was established on June 30, 1994 for the administration of resources deposited in the account by Bank Indonesia. The deposit, totaling SDR 25.0 million, is to be repaid in one installment ten years after the date the deposit was made. The interest payable on the deposit is equivalent to that obtained for the investment of the deposit less 2 percent a year.

Islamic Republic of Iran

The Administered Account Islamic Republic of Iran was established on June 6, 1994 for the administration of resources deposited in the account by the Central Bank of the Islamic Republic of Iran (CBIRI). The CBIRI has made five annual deposits, each of SDR 1.0 million. All of the deposits will be repaid at the end of ten years after the date of the first deposit. Each deposit bears interest at a rate of ½ of 1 percent a year.

Portugal

The Administered Account Portugal was established on May 16, 1994 for the administration of resources deposited in the account by the Banco de Portugal (BdP). The BdP has made six annual deposits, each of SDR 2.2 million. Each deposit is to be repaid in five equal annual installments beginning six years after the date of the deposit and will be completed at the end of the tenth year after the date of the deposit. Each deposit bears interest at a rate of ½ of 1 percent a year.

5. Associated Loans under the SFD Special Account

The SFD has provided additional resources to support arrangements under the PRGF. Funds become available under an associated loan after a bilateral agreement between the SFD and the recipient country has been effected.

Amounts denominated in SDRs, for disbursement to a recipient country under an associated loan, are placed by the SFD in the Saudi Fund for Development Special Account for disbursement by the IMF simultaneously with disbursements under a PRGF arrangement. These loans are repayable in ten equal semiannual installments commencing not later than the end of the first six months of the sixth year, and are to be completed at the end of the tenth year after the date of disbursement. Interest on the outstanding balance is currently set at a rate of ½ of 1 percent a year.

The receipts and uses of resources for the Saudi Fund for Development Special Account as of April 30 were as follows:

20042003
In thousands of SDRs
Receipts of Resources49,50049,500
Cumulative transfers from the Saudi Fund for Development46,50040,500
Cumulative repayments of associated loans1,8931,858
Cumulative receipts of interest on associated loans818
Accrued interest on associated loans97,90191,876
Uses of Resources
Associated loans49,50049,500
Cumulative repayments to the Saudi Fund for Development46,50040,500
Cumulative payments of interest on transfers1,8931,858
Accrued interest on transfers818
97,90191,876

PRGF-HIPC Trust and Related Accounts

Combined Balance Sheets as at April 30, 2004 and 2003

(In thousands of SDRs)
20042003
Assets
Cash and cash equivalents590,613999,948
Investments (Note 3)569,013316,929
Interest receivable1,3114,180
Total Assets1,160,9371,321,057
Liabilities and Resources
Borrowings (Note 5)612,918601,125
Interest payable1,3191,298
Total Liabilities614,237602,423
Resources546,700718,634
Total Liabilities and Resources1,160,9371,321,057
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
/s/ Eduard Brau

Director, Finance Department
/s/ Rodrigo de Rato

Managing Director

Combined Statements of Income and Changes in Resources for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
20042003
Balance, beginning of the year718,634863,755
Investment income (Note 3)20,87931,821
Interest expense(2,075)(1,938)
Other expenses(339)(265)
Operational income18,46529,618
Contributions received27,28735,425
Disbursements(275,141)(263,130)
(229,389)(198,087)
Transfers57,45552,966
Net changes in resources(171,934)(145,121)
Balance, end of the year546,700718,634
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Notes to the Financial Statements as at April 30, 2004 and 2003

1. Nature of Operations

The Trust for Special PRGF Operations for the Heavily Indebted Poor Countries and for Interim PRGF Subsidy Operations (the PRGF-HIPC Trust or the Trust) and Related Accounts comprise the PRGF-HIPC Trust Account, the Umbrella Account for HIPC Operations, and the Post-SCA-2 Administered Account. The PRGF-HIPC Trust Account comprises three subaccounts: the PRGF-HIPC, PRGF, and HIPC subaccounts. Combining balance sheets and income statements and changes in resources for each of these accounts are provided in Note 6. Transactions between the above accounts are eliminated on combination in the combined balance sheets and combined income statements and changes in resources.

PRGF-HIPC Trust and Related Accounts

The PRGF-HIPC Trust, for which the IMF is trustee, was established on February 4, 1997 to provide balance of payments assistance to low-income developing members by making grants or loans to eligible members for the purpose of reducing their external debt burden and for interim PRGF subsidy purposes. The resources of the PRGF-HIPC Trust are held separately from the assets of all other accounts of, or administered by, the IMF and may not be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

The operations of the PRGF-HIPC Trust are conducted through the PRGF-HIPC Trust Account and the Umbrella Account for HIPC Operations.

PRGF-HIPC Trust Account

The resources of the PRGF-HIPC Trust Account consist of grant contributions, borrowings, and other types of investments made by contributors: amounts transferred by the IMF from the Special Disbursement Account and the General Resources Account; and net earnings from investment of resources held in the PRGF-HIPC Trust Account.

The PRGF-HIPC subaccount holds resources that can finance either HIPC operations or interim PRGF subsidy operations; the PRGF subaccount holds resources earmarked for interim PRGF subsidy operations, while the HIPC subaccount holds resources earmarked for HIPC operations. PRGF-HIPC subaccount resources used to finance HIPC operations through the HIPC subaccount are repayable to the PRGF-HIPC subaccount and bear interest at a rate equal to the average return on investments in the Special Disbursement Account.

The resources held in the PRGF-HIPC Trust Account are to be used by the trustee to make grants or loans to eligible members that qualify for assistance under the HIPC Initiative and for subsidizing the interest rate on interim PRGF operations to PRGF-eligible members.

Umbrella Account for HIPC Operations

The Umbrella Account for HIPC Operations (the Umbrella Account) receives and administers the proceeds of grants or loans made to eligible members that qualify for assistance under the terms of the PRGF-HIPC Trust. Within the Umbrella Account, resources received are administered through the establishment of subaccounts for each eligible member upon the approval of disbursements under the PRGF-HIPC Trust. The resources of a subaccount of the Umbrella Account consist of (1) amounts disbursed from the PRGF-HIPC Trust Account as grants or loans for the benefit of a member, and (2) net earnings from investment of the resources held in the subaccount.

The resources held in a subaccount of the Umbrella Account are to be used to meet the member’s debt obligations to the IMF, or accounts administered by it, in accordance with the schedule agreed upon by the trustee and the member for the use of the proceeds of the PRGF-HIPC Trust disbursements.

Post-SCA-2 Administered Account

The Post-SCA-2 Administered Account, which is administered by the IMF on behalf of members, was established on December 8, 1999 for the temporary administration of resources transferred by members following the termination of the second Special Contingent Account (SCA-2) in the General Department of the IMF, prior to the final disposition of those resources.

Resources received from a member’s cumulative SCA-2 contributions, together with the member’s pro rata share of investment returns, shall be transferred to the PRGF-HIPC Trust or to the member, in accordance with the member’s instructions. The assets held in the Post-SCA-2 Administered Account are held separately from the assets and property of all other accounts of, or administered by, the IMF and may not be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

2. Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the PRGF-HIPC Trust and Related Accounts are prepared in accordance with International Financial Reporting Standards (IFRS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The financial statements do not include a cash flow statement because the statement of income and changes in resources includes the PRGF-HIPC Trust and Related Accounts’ main cash flows.

Revenue and Expense Recognition

The financial statements are prepared on the accrual basis; accordingly, income is recognized as it is earned, and expenses are recorded as they are incurred.

Unit of Account

The financial statements are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the SDR valuation basket. The IMF reviews the SDR valuation basket every five years. The latest review was completed in October 2000 and the new composition of the SDR valuation basket became effective from January 1, 2001. The currencies in the basket as of April 30, 2004 and 2003 and their amounts were as follows:

CurrencyAmount
Euro0.4260
Japanese yen21.0000
Pound sterling0.0984
U.S. dollar0.5770

As of April 30, 2004, one SDR was equal to 1.45183 U.S. dollars (one SDR was equal to 1.38391 U.S. dollars as of April 30, 2003).

Cash and Cash Equivalents

Cash and cash equivalents include short-term deposits with a maturity of less than ninety days. These deposits are denominated in SDRs or other currencies and are carried at cost which approximates fair value. Interest received on these instruments varies and is based on prevailing market rates.

Investments

The Trust invests in debt securities and fixed-term deposits, which are classified as available for sale securities. Investments are marked to market on the last business day of the accounting period. The carrying amounts of investments approximate their fair value and the unrealized gains and losses are included in the income statements. Purchases are valued and reflected on the trade date basis and sales are based on the actual settlement date valuations.

Investment income comprises interest income on investments, realized and unrealized gains and losses on investments, including currency valuation differences arising from exchange rate movements against the SDR.

Interest rate risk is managed by limiting the investment portfolio to a weighted-average effective duration that does not exceed three years. Currency risk is minimized by investing in securities denominated in SDRs or in the constituent currencies of the SDR valuation basket. Risk is further minimized by ensuring that currency composition of the investment portfolio matches as closely as possible, the currency composition of the SDR valuation basket.

Contributions

Bilateral contributions are reflected as increases in resources after the achievement of specified conditions and are subject to bilateral agreements stipulating how the resources are to be used.

Transfers

Internal transfers of resources within the IMF are accounted for under the accrual method of accounting.

Foreign Currency Translation

Foreign currency transactions are recorded at the rate of exchange on the date of the transaction. At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are reported using the closing exchange rates. Exchange differences arising from the settlement of transactions at rates different from those at the originating date of the transaction and unrealized foreign exchange differences on unsettled foreign currency monetary assets and liabilities are included in the determination of net income.

Administrative Costs

The expenses of conducting activities of the Trust and related accounts are incurred and borne by the General Department of the IMF.

3. Investments

The maturities of the investments are as follows:

Maturity as at April 3020042003
In thousands of SDRs
Less than 1 year564,272287,084
1-3 years4,74129,205
3-5 years640
Total569,013316,929

At April 30, investments consisted of the following:

20042003
In thousands of SDRs
Debt securities314,206316,929
Fixed-term deposits254,807
Total569,013316,929

At April 30, investment income was comprised of:

20042003
In thousands of SDRs
Interest income25,97834,682
Realized losses, net(7,722)(2,711)
Unrealized gains/(losses), net2,619(130)
Exchange rate gains/(losses), net4(20)
Total20,87931,821

4. Transfers Receivable and Payable

At April 30, 2004, the HIPC subaccount had transfers payable to the PRGF-HIPC subaccount arising from past disbursements to the Umbrella Account under the HIPC Initiative in the amount of SDR 1,012.0 million, including interest (SDR 797.0 million at April 30, 2003). Interest payable between subaccounts is eliminated on combination.

5. Borrowings

The Trust borrows on such terms and conditions as agreed between the Trust and the lenders. Interest rates on borrowings at April 30, 2004 and 2003 varied between 0 percent and 2 percent a year. The principal amounts of the borrowings are repayable in one installment at their maturity dates. Scheduled repayments of borrowings are summarized below:

Financial Year Ending April 30
In thousands of SDRs
200515,000
2006
2007310
200820,066
200925,000
2010 and beyond552,542
Total612,918

Borrowings, net of the effect of foreign currency fluctutations, during the financial year ended April 30, 2004 amounted to SDR 6 million (SDR 31 million for the financial year ended April 30, 2003). There were no repayments in the years ended April 30, 2004 and 2003.

6. Combining Balance Sheets and Statements of Income and Changes in Resources

The balance sheets and statements of income and changes in resources for each of the accounts and subaccounts in the PRGF-HIPC Trust and Related Accounts are presented below:

Combining Balance Sheets as at April 30, 2004 and 2003

(In thousands of SDRs)
20042003
PRGF-HIPC Trust Account

Subaccount
Umbrella

Account

for HIPC

Operations
Post-SCA-2

Administered

Account
Combined

Total
PRGF-HIPC

Trust

Account
Umbrella

Account

for HIPC

Operations
Post-SCA-2

Administered

Account
Combined

Total
PRGF-HIPCPRGFHIPCCombined
Assets
Cash and cash equivalents189,0608,105197,165353,01740,431590,613539,319420,60640,023999,948
Investments554,86414,149569,013569,013316,929316,929
Transfers to and from subaccounts1,011,958(1,011,958)
Interest receivable6826824701591,3113,3037031744,180
Total Assets1,756,56422,254(1,011,958)766,860353,48740,5901,160,937859,551421,30940,1971,321,057
Liabilities and Resources
Borrowings612,918612,918612,918601,125601,125
Interest payable1,3191,3191,3191,2981,298
Total Liabilities614,237614,237614,237602,423602,423
Accumulated resources1,142,32722,254(1,011,958)152,623353,48740,590546,700257,128421,30940,197718,634
Total Liabilities and Resources1,756,56422,254(1,011,958)766,860353,48740,5901,160,937859,551421,30940,1971,321,057

Note 6 (concluded)

Combining Statements of Income and Changes in Resources for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
20042003
PRGF-HIPC Trust Account

Subaccount
Umbrella

Account

for HIPC

Operations
Post-SCA-2

Administered

Account
Combined

Total
PRGF-HIPC

Trust

Account
Umbrella

Account

for HIPC

Operations
Post-SCA-2

Administered

Account
Combined

Total
PRGF-HIPCPRGFHIPCCombined
Balance, beginning of the year1,035,89118,247(797,010)257,128421,30940,197718,634482,352331,12850,275863,755
Investment income27,53433615,01515,22663820,87923,1077,75895631,821
Interest expense(2,075)(12,855)(2,075)1(2,075)(1,938)(1,938)
Other expenses(327)(12)(339)(339)(265)(265)
Operational income/(loss)25,132324(12,855)12,6015,22663818,46520,9047,75895629,618
Contributions received23,6043,68327,28727,28735,42535,425
Grants(202,093)(202,093)202,093(345,553)345,553
Disbursements(275,141)(275,141)(263,130)(263,130)
48,7364,007(214,948)(162,205)(67,822)638(229,389)(289,224)90,181956(198,087)
Transfers57,70057,700(245)57,45564,000(11,034)52,966
Net changes in resources106,4364,007(214,948)(104,505)(67,822)393(171,934)(225,224)90,181(10,078)(145,121)
Balance, end of the year1,142,32722,254(1,011,958)152,623353,48740,590546,700257,128421,30940,197718,634

Interest payable between subaccounts amounting to SDR 12,9 million (SDR 14.5 million at April 30, 2003) has been eliminated in the combined totals.

Interest payable between subaccounts amounting to SDR 12,9 million (SDR 14.5 million at April 30, 2003) has been eliminated in the combined totals.

Schedule 1 Post-SCA-2 Administered Account Holdings, Interest, and Transfers for the Year Ended April 30, 2004

(In thousands of SDRs)
MemberBalance

Beginning of Year
Interest EarnedTransfers to

PRGF-HIPC Trust
Balance

End of Period
Argentina5,427875,514
Dominican Republic1,004161,020
Fiji216(216)
Jordan1,141181,159
Tonga29(29)
Trinidad and Tobago2,450402,490
Vanuatu4949
Venezuela29,88147730,358
Total at April 30, 200440,197638(245)40,590

Schedule 2 PRGF-HIPC Trust Account Contributions and Transfers for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
Subaccount
PRGF-HIPCPRGFHIPCCombined
Period ended April 30, 2003
Belgium3,6253,625
Belize2020
Brazil11,033_11,033
Denmark2,1882,188
Estonia, Republic of11
Latvia, Republic of142142
Mexico7,9617,961
Netherlands3,2443,244
South Africa4,0004,000
St. Vincent and the Grenadines1111
Switzerland3,2003,200
23,6043,68327,287
Transfers from SDA57,70057,700
81,3043,68384,987
Period ended April 30, 2004
Belgium3,7453,745
Belize2020
Fiji2121
Latvia, Republic of142142
Mexico7,9147,914
Netherlands3,6833,683
Nigeria734734
Norway1,1561,156
Poland, Republic of2,6302,630
South Africa4,0004,000
St. Vincent and the Grenadines1111
Switzerland3,2283,228
Tonga33
23,6043,68327,287
Transfers from SDA57,70057,700
81,3043,68384,987

Schedule 3 Umbrella Account for HIPC Operations Grants, Interest, Disbursements and Changes in Resources for the Years Ended April 30, 2004 and 2003

(In thousands of SDRs)
MemberOpening

Balance
Grants from

PRGF-HIPC

Trust Account
Interest

Earned
DisbursementsEnding

Balance
Period ended April 30, 2003
Benin69312,680493,7359,687
Bolivia39,0577357,74632,046
Burkina Faso25,7481,3425136,96720,636
Cameroon73611325422
Chad8401,475292,32717
Ethiopia1,8574,129343,9042,116
Gambia, The6512640
Ghana9,949959,874170
Guinea272,746311,888916
Guinea-Bissau55
Guyana12,2484,1332536,7289,906
Honduras2,296132,27831
Madagascar1,4652,887282,1822,198
Malawi23124
Mali9,34332,0382397,64533,975
Mauritania4,44621,5453669,47416,883
Mozambique60,7761,08714,35247,511
Nicaragua1,88896651,232
Niger1,1011,81291,0981,824
Rwanda30983881,06887
Senegal3,414263,41327
Sierra Leone13,85923,64015623,56014,095
Tanzania70,6121,23516,15955,688
Uganda68,6391,22416,91752,946
Zambia3,620234,40011,606120,799118,827
331,128345,5537,758263,130421,309
Period ended April 30. 2004
Benin9,6871224,5535,256
Bolivia32,0464598,85823,647
Burkina Faso20,63626610,01910,883
Cameroon4223,019221,4741,989
Chad172,850152,390492
Congo, Democratic Republic of1,1319567573
Ethiopia2,11618,765333,66217,252
Gambia, The40391
Ghana17015,15011415,253181
Guinea916689428
Guinea-Bissau55
Guyana9,90623,7412558,09325,809
Honduras314,3001114,341
Madagascar2,198609162,195628
Malawi244,628232,8471,828
Mali33,9752918,88125,385
Mauritania16,8832216,94910,155
Mozambique47,5116939,17839,026
Nicaragua1,23269,2752643,57167,200
Niger1,82418,239334,75315,343
Rwanda871880
Senegal2725,636396,17419,528
Sierra Leone14,09514,75012523,6015,369
Tanzania55,68872915,77540,642
Uganda52,94669617,27336,369
Zambia118,8271783118,1331,477
421,309202,0935,226275,141353,487

Includes an additional grant contribution by the Netherlands to Zambia in the context of the HIPC Initiative.

Includes an additional grant contribution by the Netherlands to Zambia in the context of the HIPC Initiative.

Schedule 4 PRGF-HIPC Trust Account Cumulative Contributions and Transfers as at April 30, 2004

(In thousands of SDRs)
Subaccount
MemberPRGF-HIPCPRGFHIPCCombined
Algeria412412
Australia17,01917,019
Austria9,9819,981
Bangladesh1,1631,163
Barbados250250
Belgium22,19922,199
Belize120120
Brazil11,03311,033
Brunei Darussalam44
Cambodia2727
Canada32,92932,929
China13,13213,132
Colombia1313
Croatia, Republic of3131
Cyprus544544
Denmark13,06813,068
Egypt3737
Estonia, Republic of372372
Fiji2121
Finland2,5832,583
France55,89255,892
Gabon458458
Greece2,2002,200
Iceland643643
India390390
Indonesia124124
Ireland3,9373,937
Israel1,1891,189
Italy43,30943,309
Jamaica1,8001,800
Japan98,35598,355
Korea10,62510,625
Kuwait108108
Latvia, Republic of710710
Luxembourg488488
Malaysia478478
Malta706706
Mauritius4040
Mexico31,85731,857
Morocco4949
Netherlands20,01916,347136,366
New Zealand1,1581,158
Nigeria6,1506,150
Norway11,85411,854
Oman7373
Pakistan105105
Philippines4,5004,500
Poland, Republic of4,7424,742
Portugal4,4304,430
Russian Federation10,20010,200
Samoa33
San Marino, Republic of3232
Saudi Arabia978978
Singapore249249
Slovak Republic2,6692,669
Slovenia, Republic of311311
South Africa16,89516,895
Spain16,55016,550
Sri Lanka1212
St. Vincent and the Grenadines4444
Swaziland2020
Sweden5,3225,322
Switzerland12,82812,828
Thailand350350
Tonga33
Tunisia136136
United Arab Emirates353353
United Kingdom23,55133,83757,388
United States221,932221,932
Vietnam1010
474,82420,019299,116793,959
Transfers from SDA409,697409,697
Transfers from GRA72,45672,456
482,153482,153
956,97720,019299,1161,276,112

Includes an additional grant contribution by the Netherlands to Zambia in the context of the HIPC Initiative.

Includes an additional grant contribution by the Netherlands to Zambia in the context of the HIPC Initiative.

Other Administered Accounts

Balance Sheets as at April 30, 2004 and 2003

Administered

Account Japan
Administered

Account for

Selected Fund

Activities–Japan
Framework

Administered Account

for Technical

Assistance Activities
Administered

Account-Spaln
Supplementary

Financing Facility

Subsidy Account
The Post-Conflict

Emergency

Assistance

Subsidy Account
200420032004200320042003200420032004200320042003
(In thousands of U.S. dollars)(In thousands of SDRs)
Assets
Cash and cash equivalents120,235119,03722,69925,03118,91214,6592,2402,3417,8505,441
interest receivable910
Total Assets120,235119,03722,69925,03118,91214,6592,2492,3517,8505,441
Resources
Total Resources120,235119,03722,69925,03118,91214,6592,2492,3517,8505,441
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
/s/ Eduard Brau

Director, Finance Department
/s/ Rodrigo de Rato

Managing Director

Statements of Income and Changes in Resources for the Years Ended April 30, 2004 and 2003

Administered

Account Japan
Administered

Account for

Selected Fund Activities-Japan
Framework

Administered Account

for Technical

Assistance Activities
Administered

Account-Spaln
Supplementary

Financing Facility

Subsidy Account
The Post-Conflict

Emergency

Assistance

Subsidy Account
200420032004200320042003200420032004200320042003
(In thousands of U.S. dollars)(In thousands of SDRs)
Balance, beginning of the year119,036117,27725,03120,45914,6608,4842,3512,3035,441587
Interest income1,1991,7602902271481423743101103
Contributions received20,37425,50816,15614,83440402,8015,409
Payments to and on behalf of beneficiaries(22,996)(21,163)(12,052)(8,801)(40)(40)(493)(658)
Net income1,1991,760(2,332)4,5724,2526,17537482,4094,854
Transfers to the Special Disbursement Account (Note 4)(139)
Net changes in resources1,1991,760(2,332)4,5724,2526,175(102)482,4094,854
Balance, end of the year120,235119,03722,69925,03118,91214,6592,2492,3517,8505,441
The accompanying notes are an integral part of these financial statements
The accompanying notes are an integral part of these financial statements

Notes to the Financial Statements as at April 30, 2004 and 2003

1. Nature of Operations

At the request of members, the IMF has established special purpose accounts to administer contributed resources and to perform financial and technical services consistent with the purposes of the IMF. The assets of each account and each subaccount are separate from the assets of all other accounts of, or administered by, the IMF and are not to be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

Administered Account Japan

At the request of Japan, the IMF established an account on March 3, 1989 to administer resources, made available by Japan or other countries with Japan’s concurrence, that are to be used to assist certain members with overdue obligations to the IMF. The resources of the account are to be disbursed in amounts specified by Japan and to members designated by Japan.

Administered Account for Selected Fund Activities–Japan

At the request of Japan, the IMF established the Administered Technical Assistance Account-Japan on March 19, 1990 to administer resources contributed by Japan to finance technical assistance to member countries. On July 21, 1997, the account was renamed the Administered Account for Selected Fund Activities-Japan and amended to include the administration of resources contributed by Japan in support of the IMF’s Regional Office for Asia and the Pacific (OAP). The resources of the account designated for technical assistance activities are used with the approval of Japan and include the provision of scholarships. The resources designated for the OAP are used as agreed between Japan and the IMF for certain activities of the IMF with respect to Asia and the Pacific through the OAP. Disbursements can also be made from the account to the General Resources Account to reimburse the IMF for qualifying technical assistance projects and OAP expenses.

Framework Administered Account for Technical Assistance Activities

The Framework Administered Account for Technical Assistance Activities (“the Framework Account”) was established by the IMF on April 3, 1995 to receive and administer contributed resources that are to be used to finance technical assistance consistent with the purposes of the IMF. The financing of technical assistance activities is implemented through the establishment and operation of subaccounts within the Framework Account. Resources are to be used in accordance with the written understandings between the contributor and the Managing Director. Disbursements can also be made from the Framework Account to the General Resources Account to reimburse the IMF for its costs incurred on behalf of technical assistance activities financed by resources from the Framework Account.

Subaccount for Japan Advanced Scholarship Program

At the request of Japan, this subaccount was established on June 6, 1995 to finance the cost of studies and training of nationals of member countries in macroeconomics and related subjects at selected universities and institutions. The scholarship program focuses primarily on the training of nationals of Asian member countries, including Japan.

Rwanda–Macroeconomic Management Capacity Subaccount

At the request of Rwanda, this subaccount was established on December 20, 1995 to finance technical assistance to rehabilitate and strengthen Rwanda’s macroeconomic management capacity.

Australia–IMF Scholarship Program for Asia Subaccount

At the request of Australia, this subaccount was established on June 5, 1996 to finance the cost of studies and training of government and central bank officials in macroeconomic management so as to enable them to contribute to their countries’ achievement of sustainable economic growth and development. The program focuses primarily on the training of nationals of Asian countries.

Switzerland Technical Assistance Subaccount

At the request of Switzerland, this subaccount was established on August 27, 1996 to finance the costs of technical assistance activities of the IMF that consist of policy advice and training in macroeconomic management.

French Technical Assistance Subaccount

At the request of France, this subaccount was established on September 30, 1996 to cofinance the costs of training in economic fields for nationals of certain member countries.

Denmark Technical Assistance Subaccount

At the request of Denmark, this subaccount was established on August 25, 1998 to finance the costs of technical assistance activities of the IMF that consist of advising on policy and administrative reforms in the fiscal, monetary, and related statistical fields.

Australia Technical Assistance Subaccount

At the request of Australia, this subaccount was established on March 7, 2000 to finance the costs of technical assistance activities of the IMF that consist of advising on the design of policy and administrative reforms in the fiscal, monetary and related statistical fields, as well as to provide training in the formulation and implementation of macroeconomic and financial policies.

The Netherlands Technical Assistance Subaccount

At the request of the Netherlands, this subaccount was established on July 27, 2000 to finance projects that seek to enhance the capacity of the members to formulate and implement policies in the macroeconomic, fiscal, monetary, financial, and related statistical fields, including training programs and projects that strengthen the legal and administrative framework in these core areas.

The United Kingdom Department for International Development (DFID) Technical Assistance Subaccount

At the request of the United Kingdom, this subaccount was established on June 22, 2001 to finance projects that seek to enhance the capacity of the members to formulate and implement policies in the macroeconomic, fiscal, monetary, financial, and related statistical fields, including training programs and projects that strengthen the legal and administrative framework in these core areas.

Italy Technical Assistance Subaccount

At the request of Italy, this subaccount was established on November 16, 2001 to finance projects that seek to enhance the capacity of certain members to formulate and implement policies related to fiscal, financial, and statistical standards and codes, including training programs and projects that strengthen the legal and administrative framework in these core areas.

Pacific Financial Technical Assistance Centre Subaccount

At the request of Australia and New Zealand, this subaccount was established on May 22, 2002 to finance activities of the Pacific Financial Technical Assistance Centre that seek to enhance the capacity of Pacific island countries and territories to formulate and implement policies related to macroeconomic, fiscal, monetary, financial, and statistical fields, including training and activities that strengthen the legal and administrative framework in these core areas.

Africa Regional Technical Assistance Centers Subaccount

At the request of France, the Federal Republic of Germany, Italy, the Netherlands, Norway, Sweden, and the United Kingdom, this subaccount was established on August 9, 2002 to finance activities of the Africa Regional Technical Assistance Centers that seek to support the Poverty Reduction Strategy Paper process in sub-Saharan African countries through fostering the capacity for sound macroeconomic management, strong fiscal institutions and financial systems, and timely and accurate collection and dissemination of economic data, including training and activities that strengthen the legal and administrative framework in these core areas. The resources of this subaccount are contributed by the above governments and other governments or official agencies, including the Russian Federation, Luxembourg, and China, that reached an understanding with the IMF subsequent to the establishment.

Sweden Technical Assistance Subaccount

At the request of Sweden, this subaccount was established on November 25, 2002 to finance projects that seek to enhance the capacity of members to formulate and implement policies in the macroeconomic, fiscal, monetary, financial, and related statistical fields, including training programs and projects that strengthen the legal and administrative framework in these core areas.

China Technical Assistance Subaccount

At the request of the People’s Republic of China, this subaccount was established on May 23, 2003 to finance projects that seek to enhance the capacity of members to formulate and implement policies in the macroeconomic, fiscal, monetary, financial, and related statistical fields, including training programs and projects that strengthen the legal and administrative framework in these core areas.

Technical Assistance Subaccount for Iraq

At the request of Australia, Canada, Italy and the United Kingdom, this subaccount was established on July 22, 2003 to finance technical assistance activities that seek to enhance the capacity of Iraq to formulate and implement policies in the macroeconomic, fiscal, monetary, financial, and related statistical fields, including training programs and activities that strengthen the legal and administrative framework in these core areas.

Canada Technical Assistance Subaccount

At the request of Canada, this subaccount was established on January 28, 2004 to finance projects that seek to enhance the capacity of members to formulate and implement policies in the macroeconomic, fiscal, monetary, financial, and related statistical fields, including training programs and projects that strengthen the legal and administrative framework in these core areas.

Administered Account–Spain

At the request of Spain, the IMF established an account on March 20, 2001 to receive and disburse resources up to $1 billion contributed by Spain for Argentina. The resources of this account are to be used to assist Argentina in the implementation of the adjustment program supported by the IMF under the Stand-By Arrangement for Argentina approved on March 10, 2000 and augmented on January 12, 2001.

Supplementary Financing Facility Subsidy Account

The Supplementary Financing Facility Subsidy Account administered by the IMF was established in December 1980 to assist low-income developing country members to meet the costs of using resources made available through the IMF’s Supplementary Financing Facility and under the policy on exceptional use. All repurchases due under these policies were scheduled for completion by January 31, 1991, and the final subsidy payments were approved in July 1991. However, two members (Liberia and Sudan), overdue in the payment of charges, remain eligible to receive previously approved subsidy payments of SDR 2.2 million when their overdue charges are settled. Accordingly, the Account remains in operation and has retained amounts for payment to these members after the overdue charges are paid.

The Post-Conflict Emergency Assistance Subsidy Account

The Post-Conflict Emergency Assistance Subsidy Account for PRGF-Eligible Members was established in May 2001 to administer contributed resources for the purpose of providing assistance to PRGF-eligible members in support of their adjustment efforts. Contributions to the account will be used to provide grants to PRGF-eligible members that have made post-conflict emergency assistance purchases under the IMF General Resources Account, effectively subsidizing the basic rate of charge on these purchases to 0.5 percent per annum. The subsidy to each eligible member would be prorated if resources are insufficient to reduce the basic rate of charge to 0.5 percent.

Trust Fund

In addition to the aforementioned accounts, the IMF is also the trustee of the Trust Fund, which is in liquidation. The Trust Fund was established in 1976 to provide balance of payments assistance on concessional terms to eligible members that qualify for assistance.

In 1980, the IMF, as trustee, decided that, upon the completion of the final loan disbursements, the Trust Fund would be terminated as of April 30, 1981, and after that date, the activities of the Trust Fund have been confined to the conclusion of its affairs. As of April 30, 2004 and 2003, the Trust Fund had no assets other than loans receivable of SDR 88.6 million. Resources exist in the Trust Fund to the full amount of the loans and are available to absorb any losses should this occur. All interest is deferred. Cash receipts on these loans are to be transferred to the Special Disbursement Account.

Overdue loans, interest and charges at April 30, 2004 were as follows:

MemberLoansInterest

and Special

Charges
Longest Overdue

Obligation
In millions of SDRs
Liberia22,97,4June 1985
Somalia6,51,5July 1987
Sudan59.219.7June 1985
Total88.628.6

2. Summary of Significant Accounting Policies

Basis of Presentation

The financial statements of the Other Administered Accounts are prepared in accordance with International Financial Reporting Standards (IFRS). Specific accounting principles and disclosure practices are explained further below. The preparation of financial statements in conformity with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The financial statements do not include a cash flow statement because the statement of income and changes in resources includes the Other Administered Accounts’ main cash flows.

Unit of Account

Administered Account Japan, Administered Account for Selected Fund Activities–Japan, and Framework Administered Account for Technical Assistance Activities, and Administered Account–Spain

These accounts are expressed in U.S. dollars. All transactions and operations of these accounts, including the transfers to and from the accounts, are denominated in U.S. dollars, except for transactions and operations in respect of the OAP, which are denominated in Japanese yen, or transactions in other currencies as agreed between Japan and the IMF. Contributions denominated in other currencies are converted into U.S. dollars upon receipt of the funds.

The Post-Conflict Emergency Assistance Subsidy Account, Trust Fund, and the Supplementary Financing Facility Subsidy Account

These accounts are expressed in terms of SDRs. The value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of the currencies in the basket. The IMF reviews the SDR valuation basket every five years. The latest review was completed in October 2000 and the composition of the SDR valuation basket became effective from January 1, 2001. The currencies in the basket as of April 30, 2004 and 2003 and their amounts were as follows:

CurrencyAmount
Euro0.4260
Japanese yen21,0000
Pound sterling0.0984
U.S. dollar0.5770

As of April 30, 2004, one SDR was equal to 1.45183 U.S. dollars (one SDR was equal to 1.38391 U.S. dollars as of April 30, 2003).

Transactions and operations of the accounts are denominated in SDRs. Contributions denominated in other currencies are converted into SDRs upon receipt of the funds.

Revenue and Expense Recognition

The accounts are maintained on the accrual basis; accordingly, income is recognized as it is earned and expenses are recorded as they are incurred.

Cash and Cash Equivalents

Cash and cash equivalents include short-term deposits with a maturity of less than ninety days. These deposits are carried at cost which approximates fair value. Interest on these instruments varies and is based on prevailing market rates.

Contributions

Bilateral contributions are reflected as increases in resources after the achievement of specified conditions and are subject to bilateral agreements stipulating how the resources are to be used.

Payments to and on Behalf of Beneficiaries

Payments to and on behalf of beneficiaries are recognized when the specified conditions in the respective agreements are achieved.

Transfers

Internal transfers of resources within the IMF are accounted for under the accrual method of accounting.

Foreign Currency Translation

Foreign currency transactions are recorded at the rate of exchange on the date of the transaction. At the balance sheet date, monetary assets and liabilities denominated in foreign currencies are reported using the closing exchange rates. Exchange differences arising from the settlement of transaction at rates different from those at the date of the transaction and unrealized foreign exchange differences on unsettled foreign currency monetary assets and liabilities are included in the determination of net income.

Administrative Expenses

The expenses of conducting the activities of the Other Administered Accounts and the Trust Fund are incurred and borne by the General Department of the IMF. To help defray the expenses incurred by the IMF in the administration of the Administered Account for Selected Fund Activities-Japan and the Framework Administered Account for Technical Assistance Activities, reimbursement equal to 13 percent of the expenses financed from the accounts is paid to the General Department from these accounts. The Administered Account–Spain pays the General Department an annual fee of $40,000 for administrative costs incurred. As at April 30, 2004 the administrative costs for the Administered Account for Selected Fund Activities-Japan amounted to $2.8 million ($2.1 million at April 30, 2003), and for the Framework Administered Account for Technical Assistance Activities $1.6 million ($1.0 million at April 30, 2003). These amounts are included in payments to and on behalf of beneficiaries on the income statements and changes in resources.

Comparatives

When necessary, comparative figures have been reclassified to conform with changes in the presentation of the current year.

3. Cumulative Contributions and Disbursements

The cumulative contributions to and disbursements from these administered accounts are as follows:

April 30, 2004April 30, 2003
AccountCumulative

Cumulative
Contributions

Disbursements1
Cumulative

Cumulative
Contributions

Disbursements1
(In millions of U.S. dollars)
Administered Account Japan135.272.5135.272.5
Administered Account for Selected Fund Activities-Japan224.4209.3204.1186.3
Technical Assistance200.6188.3184.4169.8
Scholarships15.713.413.011.2
Office of Asia and Pacific8.17.66.75.3
Framework Administered Account for Technical Assistance Activities58.340.842.128.7
Subaccount for Japan Advanced Scholarship Program11.710.510.28.8
Rwanda-Macroeconomic Management Capacity Subaccount1.51.61.51.6
Australia–IMF Scholarship Program for Asia Subaccount2.62.62.22.2
Switzerland Technical Assistance Subaccount11.410.09.58.1
French Technical Assistance Subaccount0.80.50.80.5
Denmark Technical Assistance Subaccount3.81.62.71.1
Australia Technical Assistance Subaccount0.30.3
The Netherlands Technical Assistance Subaccount3.22.62.62.0
The United Kingdom DFID Technical Assistance Subaccount4.44.23.42.9
Italy Technical Assistance Subaccount2.80.51.80.1
Pacific Financial Technical Assistance Centre Subaccount2.31.51.10.8
Africa Regional Technical Assistance Centers Subaccount8.74.84.90.6
Sweden Technical Assistance Subaccount1.10.11.1
China Technical Assistance Subaccount0.2
Canada Technical Assistance Subaccount1.5___
Technical Assistance Subaccount for Iraq2.00.3__
Administered Accouirt-Spaln835.5835.6835.5835.6
(In millions of SDRs)
The Post Conflict Emergency Assistance Subsidy Account9.61.96.81.4

Disbursements had been made from resources contributed to these accounts as well as from interest earned on these resources.

Disbursements had been made from resources contributed to these accounts as well as from interest earned on these resources.

4. Transfer of Resources

Resources of the Supplementary Financing Facility Subsidy Account in excess of the remaining subsidy payments are to be transferred to the Special Disbursement Account. At April 30, 2004 and 2003, subsidy payments totaling SDR 2.2 million had not been made to Liberia and Sudan and were being held pending the payment of overdue charges by these members.

5. Accounts Termination

Administered Account Japan

The account can be terminated by the IMF or by Japan. Any remaining resources in the account at termination are to be returned to Japan.

Administered Account for Selected Fund Activities–Japan

The account can be terminated by the IMF or by Japan. Any resources that may remain in the account at termination, net of accrued liabilities under technical assistance projects or in respect of the OAR are to be returned to Japan.

Framework Administered Account for Technical Assistance Activities

The Framework Account or any subaccount thereof may be terminated by the IMF at any time. The termination of the Framework Account shall terminate each subaccount thereof. A subaccount may also be terminated by the contributor of the resources to the subaccount. Termination shall be effective on the date that the IMF or the contributor, as the case may be, receives notice of termination. Any balances, net of the continuing liabilities and commitments under the activities financed, that may remain in a subaccount upon its termination are to be returned to the contributor.

Administered Account–Spain

The account will be terminated when Argentina repays all the resources that were disbursed from the account to Argentina, or at an earlier time as agreed between Spain and the IMF, following consultations between Spain and Argentina. Any remaining resources in the account at termination are to be returned to Spain.

The Post-Conflict Emergency Assistance Subsidy Account

The account can be terminated by the IMF at any time. Any remaining balances after discharge of all obligations of the account upon the account’s termination are to be returned to the contributors in proportion to their contributions.

Akronyme und Abkürzungen

AFRITAC

Regionales Zentrum für technische Hilfe in Afrika

AFSSR

Beurteilung der Finanzsektoraufsicht und -regulierung

AKV

Allgemeine Kreditvereinbarungen

AML/CFT

Bekämpfung der Geldwäsche und der Terrorismusfinanzierung

APEC

Asiatisch-Pazifische Wirtschaftliche Zusammenarbeit

ASEAN

Verband Südostasiatischer Nationen

AWF

Arabischer Währungsfonds

BCEAO

Zentralbank der westafrikanischen Staaten

BEAC

Bank der zentralafrikanischen Staaten

BIP

Bruttoinlandsprodukt

BIZ

Bank für Internationalen Zahlungsausgleich

CAC

Umschuldungsklausel

CAEMC

Zentralafrikanische Wirtschafts-und Währungsgemeinschaft

CARTAC

Regionales Zentrum für technische Hilfe im karibischen Raum

CCL

Vorbeugende Kreditlinie

CFF

Fazilität zur kompensierenden Finanzierung

COBAC

Zentralafrikanische Bankenkommission

DQAF

Regelwerk für die Beurteilung der Datenqualität

DSBB

Informationstafel zu Datenveröffentlichungs-Standards

ECU

Europäische Währungseinheit

EFF

Erweiterte Fondsfazilität

ESAF

Erweiterte Strukturanpassungsfazilität

EU

Europäische Union

EWS

Europäisches Währungssystem

EWWU

Europäische Wirtschafts-und Währungsunion

EZB

Europäische Zentralbank

FATF

Aktionsgruppe zur Bekämpfung der Geldwäsche

FCC

Künftige Kreditzusagekapazität

FDI

Ausländische Direktinvestitionen

FSAP

Programm zur Bewertung des Finanzsektors

FSF

Forum für Finanzstabilität

FSI

Indikator für die Stabilität des Finanzsystems

FSSA

Beurteilung der Stabilität des Finanzsystems

GDDS

Allgemeines Datenveröffentlichungs-System

GFSR

Bericht zur Stabilität des globalen Finanzsystems

GJ

Geschäftsjahr

GRA

Allgemeines Konto

GUS

Gemeinschaft Unabhängiger Staaten

HIPC

Hochverschuldetes armes Land

IAO

Internationale Arbeitsorganisation

IAS

International Accounting Standard

IDA

Internationale Entwicklungsorganisation

IEO

Unabhängiges Evaluierungsbüro

IFC

Internationale Finanz-Corporation

IFI

Internationale Finanzinstitution

IFRS

International Financial Reporting Standards

IMFC

Internationaler Währungs-und Finanzausschuss

l-PRSP

Vorläufiges Strategiedokument zur Armutsbekämpfung

LOI

Absichtserklärung

MDG

Millennium-Entwicklungsziel

MEFP

Memorandum über die Wirtschafts-und Finanzpolitik

MIGA

Multilaterale Investitionsgarantie-Agentur

NEPAD

Neue Partnerschaft für die Entwicklung Afrikas

NGW

Nettogegenwartswert

NKV

Neue Kreditvereinbarungen

OECD

Organisation für wirtschaftliche Zusammenarbeit und Entwicklung

OFC

Offshore-Finanzplatz

OPEC

Organisation der erdölausführenden Länder

PFTAC

Pazifisches Zentrum für technische Hilfe im Finanzbereich

PIN

Öffentliche Informationsmitteilung

PRGF

Armutsbekämpfungs-und Wachstumsfazilität

PRSP

Strategiedokument zur Armutsbekämpfung

PSIA

Analyse der Armutseffekte und sozialen Auswirkungen

ROSC

Bericht über die Einhaltung von Standards und Kodizes

SAARC

Südasiatische Vereinigung für regionale Zusammenarbeit

SAF

Strukturanpassungsfazilität

SARS

Schweres Akutes Atemwegssyndrom

SCA-1

Sonderkonto für Eventualfälle

SDA

Konto für Sonderverwendungen

SDDS

Spezieller Datenveröffentlichungs-Standard

SFF

Fazilität zur zusätzlichen Finanzierung

SMP

Stabsüberwachtes Programm

S&P

Standard and Poor’s

SRF

Fazilität zur Stärkung von Währungsreserven

SWP

Stabilitäts-und Wachstumspakt

SZR

Sonderziehungsrecht

TH

Technische Hilfe

TIM

Handelsintegrations-Mechanismus

UN

Vereinte Nationen

UNCTAD

Handels-und Entwicklungskonferenz der Vereinten Nationen

UNDP

Entwicklungsprogramm der Vereinten Nationen

WAEMU

Westafrikanische Wirtschafts-und Währungsunion

WHO

Weltgesundheitsorganisation

WKM

Wechselkursmechanismus

WTO

Welthandelsorganisation

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