Chapter

General Department

Author(s):
International Monetary Fund
Published Date:
October 2010
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Consolidated statements of financial position at April 30, 2010, and 2009

(In millions of SDRs)

2010200920102009
AssetsLiabilities (including quotas)
Usable currencies144,142151,982Remuneration payable1824
Credit outstanding (Note 6)41,23820,426Investment trades payable161167
Other liabilities301248
Other currencies36,07337,199Accrued MDRI-I Trust grants (Note 10)2102
Total currencies (Note 5)221,453209,607Special Contingent Account (Note 15)1,1881,188
SDR holdings2,6352,133Borrowings and issued notes (Note 13)6,358
Quotas, represented by (Note 5)
Interest and charges receivables (Note 11)20397Reserve tranche positions37,22128,195
Investments (Note 7)6,5666,796Subscription payments180,211189,178
Total quotas217,432217,373
Gold holdings (Note 8)4,1835,852Total liabilities (including quotas)225,460219,102
Fixed assets (Note 9)290294Reserves of the General Resources Account9,8855,905
Pension assets and other assets (Note 18)307420Retained earnings of the Investment Account
Structural Adjustment Facility loans (Note 6)99Resources of the Special Disbursement Account301201
Total assets235,646225,208Total liabilities, reserves, and resources235,646225,208
The accompanying notes are an integral part of these consolidated financial statements.These consolidated financial statements were approved by the Managing Director and the Director of Finance on June 25, 2010.
The accompanying notes are an integral part of these consolidated financial statements.These consolidated financial statements were approved by the Managing Director and the Director of Finance on June 25, 2010.
/s/ Andrew Tweedie/s/ Dominique Strauss-Kahn
Director, Finance DepartmentManaging Director

Consolidated statements of comprehensive income for the years ended April 30, 2010, and 2009

(In millions of SDRs)

20102009
Operational income
Interest and charges (Note 11)697367
Interest on SDR holdings734
Net income from investments (Note 7)153377
Service charges and commitment fees (Note 11)18685
1,043863
Operational expenses
Remuneration (Note 16)84175
Interest expense on borrowings and issued notes (Note 13)7
Administrative expenses (Note 17)725532
816707
Net operational income227156
Gains on the sales of gold (Note 8)3,753
MDRI grant assistance (Note 10)10078
Transfers from the Poverty Reduction and Growth Trust (PRG Trust)
Reserve Account to the Special Disbursement Account (SDA)38
Contribution from the SDA to the General Subsidy Account of the PRG Trust (Note 12)(38)
Other comprehensive income
Net comprehensive income4,080234
Net comprehensive income of the General Department comprises:
Net comprehensive income/(loss) of the General Resources Account3,828(218)
Net comprehensive income of the Investment Account152372
Net comprehensive income of the Special Disbursement Account10080
4,080234
The accompanying notes are an integral part of these consolidated financial statements.
The accompanying notes are an integral part of these consolidated financial statements.

Consolidated statements of changes in reserves, resources and retained earnings for the years ended April 30, 2010, and 2009

(In millions of SDRs)

General Resources AccountSpecial Disbursement Account resourcesInvestment Account retained earnings
Special reserveGeneral reserveTotal reserves
Balance at April 30, 20082,2313,5205,751121
Net comprehensive (loss)/income(218)(218)80372
Transfers372372(372)
Balance at April 30, 20092,3853,5205,905201
Net comprehensive income:
Net operational income7575100152
Gains on the sales of gold3,7533,753
Transfers152152(152)
Balance at April 30, 20106,3653,5209,885301
The accompanying notes are an integral part of these consolidated financial statements.
The accompanying notes are an integral part of these consolidated financial statements.

Consolidated statements of cash flows for the years ended April 30, 2010, and 2009

(In millions of SDRs)

20102009
Usable currencies and SDRs from operating activities
Net comprehensive income4,080234
Adjustments to reconcile net comprehensive income to usable resources generated by operations
Depreciation and amortization2624
Interest and charges(697)(367)
Interest on SDR holdings(7)(34)
Interest income from investments(163)(202)
Remuneration84175
Interest expense on borrowings and issued notes7
Realized gains on the sales of gold(3,753)
(423)(170)
Changes in interest and charges receivables, and pension and other assets110(71)
Changes in remuneration payable and other liabilities4270
Changes in accrued MDRI-I Trust grants(100)(87)
(371)(258)
Usable currencies and SDRs from credit to members
Purchases in currencies and SDRs, including reserve tranche purchases(21,087)(16,363)
Repurchases in currencies and SDRs2751,833
(21,183)(14,788)
Interest received
Interest and charges590334
Interest on SDR holdings1046
Interest from investments153196
Remuneration and interest paid
Remuneration(89)(196)
Interest on borrowing and issued notes(4)
Net usable currencies and SDRs used in operating activities(20,523)(14,408)
Usable currencies and SDRs from investment activities
Acquisition of fixed assets(22)(22)
Net disposition/(acquisition) of investments242(3)
Proceeds from gold sales5,422
Net usable currencies and SDRs provided by/(used in) investment activities5,642(25)
Usable currencies and SDRs from financing activities
Borrowings and issued notes6,358
Quota subscription payments in SDRs and usable currencies15
Changes in composition of usable currencies1,1703,624
Net usable currencies and SDRs provided by financing activities7,5433,624
Net decrease in usable currencies and SDRs(7,338)(10,809)
Usable currencies and SDRs, beginning of year154,115164,924
Usable currencies and SDRs, end of year146,777154,115
The accompanying notes are an integral part of these consolidated financial statements.
The accompanying notes are an integral part of these consolidated financial statements.

Notes to the consolidated financial statements for the years ended April 30, 2010, and 2009

1. Nature of operations

The International Monetary Fund (IMF) is an international organization with 186 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 under adequate safeguards to member countries to assist in solving their balance of payments problems in a manner consistent with the provisions of the IMF’s Articles of Agreement.

The IMF conducts its operations and transactions through the General Department and the Special Drawing Rights Department (SDR Department), which are distinct entities. The General Department consists of three accounting entities: (1) the General Resources Account (GRA), (2) the Investment Account (IA), and (3) the Special Disbursement Account (SDA). The SDA includes the Multilateral Debt Relief Initiative-I Trust (MDRI-I Trust), for which the IMF is the Trustee and over which the SDA has substantial control.

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

The IMF also administers and/or executes other trusts and administered accounts established to perform financial and technical services consistent with the IMF’s purposes. The resources of these other trusts and administered accounts are contributed by members or by the IMF through the SDA. The assets of the other trusts and administered accounts do not belong to the General Department and the IMF does not derive benefits from their activities, and therefore the financial statements of these entities are presented separately.

General Resources Account

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

Investment Account

The IA holds resources transferred from the GRA in 2006 (about SDR 6 billion) to broaden the IMF’s income base. The investment objective of the IA is to generate returns that exceed the SDR interest rate over time while minimizing the frequency and extent of negative returns and underperformance. Investments comprise primarily fixed-income securities. The earnings generated by the IA may be retained in the IA or transferred to the GRA to help meet the expenses of conducting the business of the IMF.

Special Disbursement Account

The SDA is the vehicle used to receive profits from the sale of gold held by the IMF at the time of the Second Amendment of the IMF’s Articles of Agreement (1978). SDA resources can be used for various purposes, including transfers to the GRA for immediate use in operations and transactions, transfers to the Investment Account, or to provide balance of payment assistance on special terms to developing member countries in difficult circumstances. Pending uses for other purposes, resources may also be held in the SDA and invested.

The SDA also holds claims related to outstanding loans extended under the Structural Adjustment Facility (SAF). Repayments of principal and interest from SAF loans are transferred from the SDA to the Reserve Account of the Poverty Reduction and Growth Trust (PRG Trust), which is administered separately by the IMF as Trustee.

Multilateral Debt Relief Initiative

The Multilateral Debt Relief Initiative (MDRI) provides debt relief to qualifying low-income member countries (see Note 10). For this purpose, the MDRI-I and MDRI-II Trusts were established on January 5, 2006, to provide grant assistance to eligible members under the MDRI. As the IMF has control over the MDRI-I Trust, the latter’s financial statements are consolidated with those of the General Department.

2. Basis of preparation and measurement

The consolidated financial statements of the General Department are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). They have been prepared under the historical cost convention, except for the revaluation of financial assets at fair value through profit and loss.

New International Financial Reporting Standards and Interpretations

Amended IAS 32, “Financial Instruments: Presentation” requires classification as equity instruments particular types of puttable financial instruments that represent the residual interest in the net assets of an entity even though they meet the definition of a financial liability. The amended IAS 32, which became effective for annual periods beginning on or after January 1, 2009, has no impact on the General Department’s consolidated financial statements.

Amended IFRS 7, “Financial Instruments: Disclosures” requires the disclosures of the methods and underlying assumptions applied in determining fair values of financial assets or financial liabilities. Amended IFRS 7 introduces a three-level hierarchy for fair value measurement disclosures and requires additional disclosures on the relative reliability of fair value measurements. An entity must also disclose the remaining contractual maturities for financial liabilities and how it manages the related liquidity risk. The amended IFRS 7, which became effective for annual periods beginning on or after January 1, 2009, was implemented during the financial year ended April 30, 2010, resulting in enhanced disclosures of the General Department’s financial assets and financial liabilities. No comparative information is provided in the current year as allowed for by the standard in the year of implementation.

IFRS 9, “Financial Instruments” was issued in November 2009 as the first step in replacing the IAS 39, “Financial Instruments: Recognition and Measurement” standard. Under IFRS 9, financial assets currently within the scope of IAS 39 will be divided into two categories: those measured at amortized cost and those measured at fair value. The effective date for mandatory adoption of IFRS 9 is January 1, 2013, but early adoption will be permitted. As the General Department already measures financial assets at amortized cost or fair value, the implementation of IFRS 9 is not expected to have an impact on the General Department’s financial position or results of operations.

Unit of account

The consolidated financial statements are presented in Special Drawing Rights (SDR), which is the IMF’s functional unit of account. The U.S. dollar equivalent of the SDR is determined daily by the IMF by summing specific amounts of the four basket currencies (see below) in U.S. dollar equivalents on the basis of market exchange rates. The IMF reviews the SDR valuation basket at five-year intervals, and the current composition of the SDR valuation basket became effective on January 1, 2006.

The currencies in the basket at April 30, 2010, and 2009, and their specific amounts, relative to one SDR, were as follows:

CurrencyAmount
Euro0.4100
Japanese yen18.4000
Pound sterling0.0903
U.S. dollar0.6320

At April 30, 2010, one SDR was equal to US$1.51112 (US$1.49783 at April 30, 2009).

Use of estimates and judgment

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

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

Information about areas involving estimates and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are described in Notes 3, 10, 17, and 18.

3. Summary of significant accounting policies

The accounting policies set out below comply with IFRS and have been applied consistently for all periods presented.

Basis of consolidation

The consolidated financial statements include the GRA, the IA, the SDA, and the MDRI-I Trust. Control is achieved where the IMF has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. All transactions and balances between these entities have been eliminated during consolidation.

Quotas and reserve tranche positions

The IMF’s resources are provided by its members through the payment of quotas, which broadly reflect each member’s relative economic size. Quotas also determine each member’s relative voting power, access to financing, and share in SDR allocations. The IMF conducts general reviews of all members’ quotas at five-year intervals. The reviews allow the IMF to assess the adequacy of quota resources to meet its financing needs and to allow for adjustments of members’ quotas to reflect their relative positions in the world economy. A quarter of a member’s quota is normally paid in reserve assets, and the remainder is paid in the member’s own currency. Should a member withdraw from the IMF, its quota subscription is refunded to the extent it is not needed to settle the net obligations of the member to the IMF.

A member’s reserve tranche is equivalent to its quota less the GRA’s holdings of its currency, excluding holdings that reflect the member’s use of GRA credit. Reserve tranches result from quota payments in reserve assets and from the use of the member’s currency in the GRA’s transactions or operations. A member’s reserve tranche is considered a part of its international reserves and a liquid claim against the GRA.

Quota subscriptions and the reserve tranche positions are classified as liabilities as they embody an unconditional obligation to redeem the instrument upon a member’s withdrawal from the IMF.

Currencies

Currencies consist of members’ currencies and securities held by the GRA. Usable currencies are currencies of members with a strong balance of payments and reserves position that can be used by the GRA to finance the use of resources. Usable currencies and the GRA’s SDR holdings are considered cash equivalents for financial statement presentation purposes. Other currencies are not used to finance the use of resources by members, and therefore are not considered cash equivalents for financial statement presentation purposes.

All currencies in the GRA are revalued periodically in terms of the SDR, including at each financial year end, and members are required to settle the currency valuation adjustments promptly thereafter. The currency balances in the statements of financial position include the receivables and payables arising from the revaluation.

SDR holdings

SDRs are not allocated to the IMF, but the IMF can hold SDRs, which it can acquire from members in the settlement of their financial obligations to the IMF, and it can use SDRs in a number of other transactions and operations with members. The IMF earns interest on its SDR holdings at the same rate earned by other holders of SDRs.

Credit outstanding

Credit outstanding represents financing provided to members under the various IMF credit facilities. Members receive credit in the GRA by purchasing SDRs or usable currencies in exchange for their own currencies. IMF credit is repaid by members by repurchasing holdings of their currencies in exchange for SDRs or usable currencies. Depending on the type of IMF credit facility, repayment periods for GRA credit vary from 3¼ to 10 years.

An impairment loss would be recognized 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 credit’s carrying value and the present value of the estimated future cash flows. Such cash flows take into account the proceeds from the burden sharing mechanism, explained below. No impairment losses have been recognized in the financial years ended April 30, 2010, and 2009.

Burden sharing mechanism and Special Contingent Account

The IMF excludes from income, interest charged on the use of IMF resources by members that are at least six months overdue in meeting any financial obligation to the IMF. The IMF fully recovers such income under the burden sharing mechanism, through adjustments to the rates of charge and remuneration. Members that participate in burden sharing for overdue charges receive refunds to the extent that the overdue charges are subsequently collected.

The IMF accumulates balances in the first Special Contingent Account (SCA-1) by generating resources under the burden sharing mechanism. The SCA-1 is intended to address the risks posed to the IMF by overdue financial obligations. Balances in the SCA-1 would be used first if the IMF were to incur any loss from overdue obligations. Balances in the SCA-1 are refundable to the members that shared the cost of its financing, in proportion to their contributions, when there are no outstanding overdue repurchases and charges, or at such earlier time as the IMF may decide (see Note 15). Effective November 1, 2006, the IMF’s Executive Board decided to suspend, for the time being, further additions to the SCA-1.

Investments

The IMF’s investments in the IA comprise fixed-term deposits, short-term investments, and fixed-income securities, none of which include asset-backed securities. Fixed income securities include domestic government bonds of the Euro area, Japan, the United Kingdom, and the United States, and medium-term instruments issued by the Bank for International Settlements, and bonds of other international financial organizations.

The IMF has designated its investments in fixed-income securities, other than fixed-term deposits, as financial assets held at fair value through profit or loss. Such designation may be made only upon initial recognition and cannot subsequently be changed. The designated assets are carried at fair value in the statements of financial position, with the change in fair value included in the statements of comprehensive income in the period in which they arise.

Recognition

Investments are recognized on the trade date at which the IMF becomes a party to the contractual provisions of the instrument.

Derecognition

Investments are derecognized when the contractual rights to the cash flows from the asset expire, or in transactions in which substantially all the risks and rewards of ownership of the investment are transferred.

Fair value measurement

Amendments to the IFRS 7 standard introduced a three-level fair value hierarchy under which financial instruments are categorized based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy has the following levels: quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1); inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices) (Level 2); and inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement of the instrument in its entirety. Thus, a Level 3 fair value measurement may include inputs that are both observable and unobservable.

Investment income

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

Gold holdings

The IMF values its gold holdings at historical cost using the specific identification method. In accordance with the provisions of the current Articles, whenever the IMF sells gold held on the date of the Second Amendment of the Articles, the portion of the proceeds equal to the historical cost must be placed in the GRA. Any portion of the proceeds in excess of the historical cost will be held in the SDA or transferred to the IA (see Note 8). This does not apply to gold holdings obtained after the Second Amendment. The proceeds from the sale of such gold are placed in the GRA. The IMF conducted sales of part of its holdings of “post-Second Amendment” gold during the year ended April 30, 2010, and the profits are currently retained in the GRA.

Under the new income model (see Note 4), the profits from the approved gold sales are to be invested in the IA pursuant to an endowment strategy to generate income. The proposed amendment to the Articles of Agreement to expand the investment authority of the IMF mandates the placement of the profits from the sale of post-Second Amendment gold in the IA (including any profits placed in the GRA after April 7, 2008, and prior to the effectiveness of the amendment). The amendment is currently being considered by the membership and is not yet effective.

Fixed assets

Tangible and intangible fixed assets (see Note 9) with a cost in excess of a threshold amount are capitalized and depreciated or amortized over the estimated remaining useful lives using the straight-line method. Buildings, furniture, and equipment are depreciated over 30, 7, and 3 years, respectively. Software is amortized over 3 to 5 years.

Pension assets

The IMF has a defined benefit Staff Retirement Plan (SRP) that covers substantially all eligible staff, a Supplemental Retirement Benefits Plan (SRBP) for selected participants of the SRP, and the Retired Staff Benefits Investment Account (RSBIA) to hold and invest resources set aside to fund the cost of the post-retirement benefits. The pension plans and other post-retirement assets are measured at fair value at the end of the reporting period. Pension costs and expected costs of the post-retirement medical and life insurance benefits are determined using the Projected Unit Credit Method (see Note 18).

Borrowings and issued notes

Quota resources continue to be the basic source of IMF financing, and the next review of quotas is scheduled to be completed by January 2011.

The IMF can borrow to temporarily supplement its quota resources. The Executive Board has established guidelines on borrowing by the IMF to ensure that the financing of the IMF is managed in a prudent and systematic manner. The IMF currently maintains two standing borrowing arrangements—the New Arrangements to Borrow (NAB) and the General Arrangements to Borrow (GAB)—with a total borrowing capacity of SDR 34 billion. In April 2010, the Executive Board approved a ten-fold expansion of the IMF’s NAB and modifications to the terms to allow for more flexibility as a tool of crisis management. The NAB will be increased by SDR 333.5 billion (about US$500 billion) to SDR 367.5 billion (about US$550 billion). Thirteen new participants, including a number of major emerging market economies, have indicated their willingness to join 26 current participants in the NAB. The NAB reform was not effective at April 30, 2010, and will require the concurrence of existing participants (representing at least 96 percent of total credit arrangements of current participants) and the adherence of new participants representing 70 percent of total credit arrangements of new participants.

The IMF may also borrow funds under bilateral borrowing agreements. In early 2009, the Executive Board reviewed the adequacy of the IMF’s resources to meet members’ potential demand for balance of payment support during the current global financial crisis. The Executive Board agreed on the need to boost the IMF’s lending capacity as part of the near-term response to the crisis. The G-20 committed to a tripling of the resources available to the IMF to US$750 billion. The International Monetary and Financial Committee, a policy advisory body, reaffirmed these measures and endorsed an increase in the IMF’s resources through bilateral financing from members of US$250 billion. The borrowings will subsequently be incorporated into the expanded NAB. A framework for the issuance of notes to member countries and their central banks was approved by the IMF Executive Board in July 2009. The IMF has entered into several borrowing and note purchase agreements with members or their central banks (see Note 13) and received commitments for financing by other members that will be fulfilled upon the completion of domestic and legislative actions.

The borrowing agreements provide for the IMF to draw on committed resources for initial terms of one or two years, which can be extended, depending on each agreement, for additional periods up to a maximum of five years. Normally, drawings are payable in three months but maturities can be unilaterally extended by the IMF for additional three-month periods for a total of up to five years. Under the note purchase agreements, members or their central banks may purchase IMF notes up to an agreed limit with effective maximum maturities of up to five years. Loan claims and notes are transferable within the official sector, which includes all IMF members, their central banks or other fiscal agencies, and prescribed SDR holders. The borrowings and notes are denominated in SDRs, carry the SDR interest rate, and are recorded and subsequently stated at amortized cost (see Note 13).

Reserves of the General Resources Account

The IMF’s reserves (retained earnings) consist of the General Reserve and the Special Reserve. The General Reserve may be used to meet capital losses or operational deficits or for distribution, and the Special Reserve can be used for the above purposes except distribution.

The IMF determines annually what part of its net income (if any) will be retained and placed in the General Reserve or the Special Reserve, and what part, if any, will be distributed. Net losses are charged against the Special Reserve under currently applicable Executive Board decisions.

Profits from the gold sales that took place during the financial year ended April 30, 2010, (see Note 8) were placed in the Special Reserve as part of the IMF’s net income for the financial year ended April 30, 2010. Balances in the Special Reserve attributable to gold sales profits during the financial year ended April 30, 2010, are excluded from the IMF’s concept of precautionary balances (see Note 4).

Charges

The IMF earns interest, referred to as charges, on members’ use of IMF credit. The basic rate of charge is set at the beginning of each financial year as the SDR interest rate plus a margin expressed in basis points that is determined by the Executive Board. The SDR interest rate is determined weekly by reference to the weighted average yields on short-term instruments in the capital markets of the Euro area, Japan, the United Kingdom, and the United States.

Effective August 1, 2009, credit outstanding in excess of 300 percent of quota resulting from purchases in the credit tranches (including under the Stand-By and Flexible Credit Line arrangements) and under the Extended Fund Facility is subject to a surcharge of 200 basis points per annum above the basic rate of charge. Such holdings outstanding for more than three years after August 1, 2009, are subject to an additional surcharge of 100 basis points. Prior to this regime, credit outstanding in excess of 200 percent of quota resulting from purchases in the credit tranches under Stand-By Arrangements and under the Extended Fund Facility was subject to a surcharge of 100 basis points (200 basis points for credit in excess of 300 percent of quota). Special charges are levied on members’ currency holdings that are not repaid when due and on overdue charges. Special charges do not apply to members that have overdue obligations to the Fund of six months or more. A service charge of 50 basis points is levied by the IMF on all purchases except reserve tranche purchases. A refundable commitment fee is charged on arrangements and is recorded in income only to the extent that the arrangement expires or is cancelled by a member.

Remuneration

The IMF pays interest, referred to as remuneration, on a member’s reserve tranche position. A portion of the reserve tranche is unremunerated: that portion 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 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 rate of remuneration is equal to the SDR interest rate. The rate of remuneration after burden sharing adjustments cannot be less than 80 percent of the SDR interest rate.

Special Disbursement Account

Loans under the SAF are at concessional interest rates of ½ of 1 percent per annum. The last SAF loan disbursement was made in 1995 and currently one member (Somalia) has overdue SAF repayment obligations. Repayments of SAF loans to the SDA are transferred to the PRG Trust 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. No impairment losses have been recognized in the financial years ended April 30, 2010, and 2009.

Provisions

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

4. Risk management

The IMF is exposed to various types of operational and financial risks, including credit, market, liquidity, and income risks. The principal risk facing the IMF is credit risk resulting from its financing operations and unique role in the international monetary system.

Risk management framework

The Executive Board of the IMF has overall responsibility for the establishment and oversight of the IMF’s risk management framework. The risk management framework encompasses primarily strategic, financial, and operational risks. As part of this framework, the Advisory Committee on Risk Management has been established to analyze, synthesize, and report risks. Annual assessments of risks are conducted to (i) appraise risks and efforts to mitigate these risks; (ii) report on the assessment of residual risks, after taking account of mitigation measures in place; and (iii) bring to the attention of Office of Internal Audit areas of residual risk, so that these can be taken into account in the design of annual audit plans. Financial risks are also reviewed as part of the annual comprehensive risk assessment exercise and on an on-going basis in the context of specific policies.

Credit risk

Credit outstanding

Credit risk refers to potential losses on credit outstanding owing to the inability or unwillingness of member countries to make repurchases. Credit risk is inherent since the IMF has limited ability to diversify its loan portfolio and generally provides financing when other sources are not available to a member. In addition, the IMF’s credit concentration is high.

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

20102009
(In millions of SDRs and as a percentage of total GRA credit outstanding)
Largest user of credit8,26320.0%6,32331.0%
Three largest users of credit22,90055.5%14,42870.6%
Five largest users of credit31,99077.6%17,62886.3%

The five largest users of GRA credit at April 30, 2010, in descending order, were Romania, Hungary, Ukraine, Turkey, and Pakistan (Hungary, Turkey, Ukraine, Pakistan, and Iceland at April 30, 2009).

The concentration of GRA outstanding credit by region was as follows at April 30:

20102009
(In millions of SDRs and as a percentage of total GRA credit outstanding)
Africa8842.1%6543.2%
Asia and Pacific4,85211.8%2,88614.1%
Europe29,22370.9%11,42655.9%
Latin America and Caribbean9792.4%2971.5%
Middle East and Turkey5,30012.8%5,16325.3%
Total41,238100%20,426100%

Measures to help mitigate the IMF’s credit risk include policies on access limits, program design, monitoring, pre-set qualification criteria, and conditionality attached to IMF financing; early repurchase policies; and preventative, precautionary, and remedial measures to cope with the financial consequences of protracted arrears.

The IMF has established limits on overall access to resources in the GRA, excluding access under the Flexible Credit Line (FCL) arrangements. The annual overall limit for this purpose is currently set at 200 percent of a member’s quota, with a cumulative limit of 600 percent of a member’s quota (net of scheduled repurchases). Access in excess of these limits can be granted in exceptional circumstances. There is no pre-specified maximum on such access, although the IMF will assess factors such as the size of balance of payment pressures, the member’s debt sustainability and its ability to regain access to financing from other sources, and the strength of policies to be adopted. Under such circumstances, disbursements tend to be front-loaded with smaller subsequent tranches.

The IMF generally provides financial assistance to a member under an economic program adopted by the member to help it overcome its balance of payments difficulties. IMF assistance may be disbursed in tranches or the entire amount could be made available upfront. With the exception of the FCL, which provides qualifying member countries with robust policy frameworks and strong track records access to IMF resources with no ex-post conditions, and emergency assistance provided in the form of outright purchases, IMF financial assistance is phased and subject to conditionality in the form of performance criteria and periodic reviews. Safeguards assessments of member central banks are normally undertaken to provide the IMF with reasonable assurance that each central bank’s legal structure, controls, and accounting, reporting, and auditing systems are adequate to ensure the integrity of their operations and help ensure that IMF resources are used for intended purposes. Misreporting by member countries may entail early repurchases for non-complying purchases.

The IMF maintains precautionary balances consisting of its reserves (excluding any balances in the Special Reserve attributable to profits from gold sales during the financial year ended April 30, 2010), and the SCA-1 that would be used to cover losses from possible overdue repurchase obligations. At April 30, 2010, precautionary balances amounted to SDR 7.3 billion, compared to SDR 7.1 billion at April 30, 2009. In addition, the burden sharing mechanism generates resources to offset the loss of income due to unpaid charges and thereby helps protect the IMF’s overall income and financial position.

The maximum credit risk exposure is the carrying value of the Fund’s credit outstanding and undrawn commitments (see Note 14), which amounted to SDR 117.5 billion and SDR 72.2 billion at April 30, 2010, and 2009, respectively.

Investments

Credit risk on investments represents the potential loss that the IMF may incur if obligors and counterparties default on their contractual obligations. Credit risk is managed through the conservative range of eligible investments, which at present is limited to (i) domestic government bonds of countries in the Euro area, Japan, the United Kingdom, and the United States, that is, members whose currencies are included in the SDR basket; (ii) bonds of international financial organizations; and (iii) claims on the Bank for International Settlements (BIS). Credit risk is further minimized by restricting eligible investments to financial instruments rated A or higher by a major credit rating agency. Compliance controls are enforced to ensure that the investment portfolio does not include a security whose rating is below the minimum rating required.

The credit risk exposure in the investments portfolio at April 30 was as follows:

20102009
RatingPercentageRatingPercentage
Government Bonds
FranceAAA0.2%AAA0.7%
GermanyAAA14.3%AAA13.2%
JapanAA6.1%AA6.0%
SpainAA+0.1%
United KingdomAAA2.3%AAA2.4%
United StatesAAA16.1%AAA14.6%
Non-governmental bonds
Bank for International SettlementsNot rated47.8%Not rated47.9%
Other international financial institutionsAAA8.6%AAA10.8%
Fixed-term deposits and other
Bank for International SettlementsNot rated4.6%Not rated4.3%
100%100%

The General Department previously engaged its custodian in a securities lending program, in which marketable securities were lent temporarily to other institutions in exchange for a fee and collateral, to enhance the return on its investments. This program was suspended during the financial year ended April 30, 2009, and has not been resumed since.

Market risk

Interest rate risk

Credit outstanding

Interest rate risk is the risk that future cash flows will fluctuate because of changes in market interest rates. Interest rate risk is managed through the use of a floating market interest rate (the SDR interest rate) to determine the rate of charge. Interest rate fluctuations do not affect lending income because the IMF links the rate of charge directly, by means of a fixed margin, to the cost of financing (which is equal to the SDR interest rate).

Investments

The investment portfolio is exposed to market risk due to interest rate movements. The interest rate risk is mitigated by limiting the duration of the portfolio to a weighted average of 1–3 years.

A 50 basis point increase in the average effective yields of the IMF portfolio at April 30, 2010, would result in a loss of SDR 56.2 million or approximately 0.88 percent of the portfolio (SDR 59.1 million or 0.89 percent at April 30, 2009), whereas a 50 basis point decrease would result in a gain of SDR 57.1 million or approximately 0.89 percent of the portfolio (SDR 60.0 million or 0.91 percent at April 30, 2009).

Borrowings and issued notes

Interest rate risk related to borrowings and issued notes is limited since drawings under existing borrowing and note purchase agreements would normally be subject to the SDR interest rate. The proceeds from the borrowings are used to extend credit to member countries, at the rate of charge, which is based on the SDR interest rate plus a margin, or to repay borrowings under borrowing agreements. Under certain circumstances, higher interest rates can apply, in some cases requiring the agreement of the IMF.

Exchange rate risk

Financial assets and liabilities other than investments

Exchange rate risk is the exposure to the effects of fluctuations in foreign currency exchange rates on an entity’s financial position and cash flows. The IMF has no exchange rate risk exposure on its holdings of members’ currencies in the GRA since, under the Articles of Agreement, members are required to maintain the value of such holdings in terms of the SDR. Any depreciation/appreciation in a member’s currency vis-à-vis the SDR gives rise to a currency valuation adjustment receivable or payable that must be settled promptly after the end of the financial year or at other times as requested by the IMF or the member. The IMF has other assets and liabilities, such as trade receivables and payables, denominated in currencies other than SDRs and makes administrative payments largely in U.S. dollars, but the exchange rate risk exposure from these other assets and liabilities is limited.

Investments

In accordance with current IA guidelines, exchange rate risk on investments is managed by investing in financial instruments denominated in SDRs or in constituent currencies of the SDR with the relative amount of each currency matching its weight in the SDR basket. In addition, the portfolio is regularly rebalanced to match the currency weights in the SDR basket.

The value of the SDR is the sum of the market values, in U.S. dollar equivalents, of the predetermined amounts of the four currencies in the SDR valuation basket. The effective share of each currency in the valuation of the SDR fluctuates daily and depends on the prevailing exchange rate in the London market at noon against the U.S. dollar on that day. Since the proportionate share of a currency in the SDR valuation basket is determined by reference to the market value against the U.S. dollar, the exchange risk can be measured indirectly using the exchange rate movements between that basket currency and the U.S. dollar. The net effect on the investment portfolio of a 10 percent increase in the market exchange rates of the basket currencies against the U.S. dollar, at April 30, would be as follows:

20102009
Net lossNet loss
In millions of SDRsAs a percent of investments not denominated in SDRsIn millions of SDRsAs a percent of investments not denominated in SDRs
Euro(5.46)0.09%(5.56)0.09%
Japanese yen(2.96)0.05%(3.14)0.05%
Pound sterling(3.69)0.06%(3.51)0.06%

The net effect of a 10 percent decrease in the market exchange rate of the basket currencies against the U.S. dollar, at April 30, would be as follows:

20102009
Net lossNet loss
In millions of SDRsAs a percent of investments not denominated in SDRsIn millions of SDRsAs a percent of investments not denominated in SDRs
Euro(1.06)0.02%(1.29)0.02%
Japanese yen(3.70)0.06%(3.81)0.06%
Pound sterling(2.98)0.05%(3.51)0.06%

Borrowings and issued notes

The IMF has no exchange rate exposure on its borrowing arrangements since all drawings are denominated in SDRs.

Liquidity risk

Liquidity risk is the risk to the IMF of nonavailability of resources to meet the financing needs of members and its own obligations. The IMF must have usable resources available to meet members’ demand for IMF financing. While the IMF’s resources are of a revolving nature, uncertainties in the timing and amount of credit extended to members during financial crises expose the IMF to liquidity risk. Moreover, the IMF must also stand ready to meet potential demands from members drawing upon their reserve tranche positions, which have no fixed maturity and are part of members’ reserves, and to meet repayment obligations of the immediate encashability of up to SDR 15 billion under any bilateral borrowing or note purchase agreement if a member represents that its balance of payments and reserve position justify such early repayment.

The IMF manages its liquidity risk not by matching the maturity of assets and liabilities, but by closely scrutinizing developments in its liquidity position. Long-term liquidity needs are addressed by reviewing the adequacy of quota-based resources. General reviews of members’ quotas are conducted at intervals of no more than five years in order to evaluate the adequacy of quota-based resources to meet members’ demand for IMF financing. The last general review was completed in January 2008. Further, resources from borrowing and note purchase agreements can be used toward the early repayment, at the request of a member, of the IMF’s outstanding indebtedness under other such agreements.

Short-term liquidity needs for lending activities are reviewed and approved by the Executive Board on a quarterly basis through a financial transactions plan (FTP) for SDR amounts and usable currencies to be used in transactions with members. The IMF also monitors its short-term liquidity position using objective criteria such as the forward-commitment capacity for the next 12-month period. (Schedule 2 provides the GRA’s available resources and liquidity position.)

Investments

Liquidity risk on investments is limited by investing a portion of the portfolios in readily marketable short- and medium-term financial instruments to meet anticipated liquidity needs.

Income risk

The IMF has been relying principally on income from charges levied on outstanding credit to meet its operating costs. At the same time the level of IMF lending fluctuates significantly, and in the current environment the IMF’s income risk has subsided. In May 2006, the IMF’s Managing Director appointed a committee of well-known experts to study sustainable financing options for the IMF. The committee recommended that the IMF broaden its income sources to more closely align with the IMF’s diverse activities.

Based on the recommendations of the committee, the Executive Board proposed new and sustainable income and expenditure frameworks to close the then projected income shortfall. Key elements of the new income model include establishing an endowment using the profits from the limited sale of 12.97 million ounces of post-Second Amendment gold holdings, expanding the investment authority to enhance the expected return on the IMF’s investments, and reinstating the practice of reimbursing the IMF for the cost of administering the PRG Trust. The expenditure framework proposal included significant expenditure cuts over the medium term. In May 2008, the IMF’s Board of Governors endorsed these proposals and adopted the related resolution on the amendment of the Articles of Agreement. The implementation of the income proposal will require legislative action in many member countries. The proposed amendment will enter into effect after three-fifths of the members having 85 percent of the total voting power have accepted it. At April 30, 2010, 67 members with 73.8 percent of the total voting power have communicated their acceptance of the proposed amendment.

Operational risk

Operational risk includes risk of loss attributable to errors or omissions because of failures in executing or processing transactions, inadequate controls, human factors, and/or failures in underlying support systems.

The IMF mitigates operational risk by (i) identifying key operational risks, (ii) maintaining a system of internal controls, (iii) documenting policies and procedures on administrative and accounting and reporting processes, and (iv) conducting internal audits to provide independent reviews of the effectiveness of the control processes and risk management. The design and effectiveness of controls are evaluated continuously and improvements are implemented on a timely basis. The results of the internal audits are reported by the Office of Internal Audit and Inspection both to the Managing Director and the External Audit Committee (EAC), which also exercises oversight over the external audit of the IMF’s accounts and its controls. In addition, the Office of Internal Audit provides periodic reports to the Executive Board.

5. Currencies

Net changes in the IMF’s holdings of members’ currencies for the financial years ended April 30, 2010, and 2009, were as follows:

April 30, 2008Net changeApril 30, 2009Net changeApril 30, 2010
(In millions of SDRs)
Members’ quotas217,373217,37359217,432
Members’ outstanding use of IMF credit in the GRA5,89614,53020,42620,81241,238
Members’ reserve tranche positions in the GRA(13,482)(14,713)(28,195)(9,026)(37,221)
Administrative currency balances4(1)314
Total currencies209,791(184)209,60711,846221,453

Currency holdings include receivables and payables arising from valuation adjustments at April 30, 2010, when all holdings of currencies of members were last revalued, amounted to SDR 4,192 million and SDR 7,730 million, respectively (SDR 16,359 million and SDR 6,990 million, respectively, at April 30, 2009). Settlements of these receivables or payables are required to be made by or to members promptly after the end of each financial year.

6. Credit and loans outstanding

During the financial year ended April 30, 2010, the IMF approved Stand-By Arrangements for Angola, Bosnia and Herzegovina, Dominican Republic, El Salvador, Iraq, Jamaica, Maldives, Romania, and Sri Lanka totaling SDR 19,827 million, extended arrangements for Moldova and Seychelles for SDR 205 million, and Flexible Credit Line arrangements for Colombia, Mexico, and Poland totaling SDR 52,184 million (Stand-By Arrangements for Armenia, Belarus, Costa Rica, El Salvador, Georgia, Guatemala, Hungary, Iceland, Latvia, Mongolia, Pakistan, Serbia, Seychelles, and Ukraine for SDR 34,251 million and Flexible Credit Line arrangements for Mexico for SDR 31,528 million, during the financial year ended April 30, 2009). In addition, the Stand-By Arrangements for Armenia, Belarus, Georgia, Pakistan, and Serbia were augmented by a total of SDR 5,423 million. During the same period, drawings under Stand-By Arrangements and extended arrangements amounted to SDR 21,087 million (SDR 16,363 million for the financial year ended April 30, 2009). There were no drawings under Flexible Credit Line arrangements. Credit outstanding in the GRA and SAF loans in the SDA are carried at amortized cost.

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

April 30, 2008PurchasesRepurchasesApril 30, 2009PurchasesRepurchasesApril 30, 2010
(In millions of SDRs)
Credit tranches4,98516,361(1,601)19,74521,064(228)40,581
Extended Fund Facility6762(210)46823(44)447
Enlarged access167(7)160(1)159
Compensatory and Contingency Financing Facility39(5)3434
Supplementary Financing Facility29(10)19(2)17
Total credit outstanding5,89616,363(1,833)20,42621,087(275)41,238

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

Financial year ending April 30General Resources AccountSpecial Disbursement Account
(In millions of SDRs)
20111,914
20123,267
201313,818
201416,520
20155,233
2016 and beyond194
Overdue2929
Total41,2389

Overdue obligations

At April 30, 2010, and 2009, two members were six months or more overdue in settling their financial obligations to the General Department as follows:

GRA Repurchases and SAF loansGRA Charges and SAF interest
2010200920102009
(In millions of SDRs)
Total overdue302309830826
Overdue for six months or more302309828821
Overdue for three years or more302309796776

The type and duration of the overdue amounts in the General Department were as follows at April 30, 2010:

GRA Repurchases and SAF loansGRA Charges and SAF interestTotal obligationLongest overdue obligation
(In millions of SDRs)
Somalia106116222July 1987
Sudan196714910July 1985
Total3028301,132

7. Investments

Investments are held in the Investment Account (SDR 6,272 million and SDR 6,498 million at April 30, 2010, and 2009, respectively) and the MDRI-I Trust (SDR 294 million and SDR 298 million, at April 30, 2010, and 2009, respectively) and are managed by external investment managers. These investments comprise fixed-term deposits, short-term investments, and fixed-income securities, none of which include asset-backed securities. Fixed income securities include domestic government bonds of the Euro area, Japan, the United Kingdom, and the United States, and medium-term instruments issued by the Bank for International Settlements.

At April 30, investments consisted of the following:

20102009
(In millions of SDRs)
Short-term investments47254
Fixed-term deposits28984
Fixed-income securities6,2306,458
Total investments6,5666,796

The following table presents the fair value hierarchy used to determine the fair value of investments, at April 30, 2010:

Level 1Level 2Level 3Total
(In millions of SDRs)
Short-term investments40747
Fixed-term deposits289289
Fixed-income securities6,2306,230
Total406,5266,566

The maturities of the investments were as follows:

Investments maturing in financial year ending April 30
(In millions of SDRs)
2011950
20122,900
20132,628
201429
2015 and beyond59
Total6,566

Investment income

Investment income amounted to SDR 152 million for the Investment Account and SDR 1 million for the MDRI-I Trust for the financial year ended April 30, 2010 (SDR 372 million and SDR 5 million, respectively, for the financial year ended April 30, 2009).

Investment income comprised the following for the financial years ended April 30:

20102009
(In millions of SDRs)
Interest income163202
Realized gains114130
Realized losses(25)(23)
Unrealized gains46173
Unrealized losses(145)(105)
Total153377

8. Gold holdings

The IMF acquired the majority of its gold holdings from quota subscriptions and financial transactions prior to the Second Amendment of the Articles of Agreement (April 1, 1978). The IMF also acquired gold through the settlement of obligations by members in 1992 and 1999/2000. The Articles of Agreement limit the use of gold in the IMF’s operations and transactions. Any transactions in gold provided for in the Articles require a decision adopted by an 85 percent majority of the total voting power. Under the Articles, the IMF may sell gold outright on the basis of prevailing market prices but cannot engage in any other gold transactions, such as loans, leases, swaps, or the use of gold as collateral. In addition, the IMF does not have the authority to buy gold, but it may accept payments from a member in gold instead of SDRs or currencies in any operation or transaction at the prevailing market prices.

In September 2009, the Executive Board approved gold sales in a volume strictly limited to 403.3 metric tons, with these sales to be conducted under modalities that safeguard against disruption of the gold market. Initial sales were approved to be conducted off-market to interested central banks or other official sector holders, and thereafter, an on-market phase would be initiated in a phased manner over time for any amounts remaining from the 403.3 metric tons, following the approach adopted by central banks participating in the Central Bank Gold Agreement, which has pre-announced ceilings on sales from official sources.

In October 2009, the IMF sold 200 metric tons to the Reserve Bank of India for SDR 4,230 million at prevailing market prices. In November 2009, the IMF made further sales of gold to the Bank of Mauritius (2 metric tons, for SDR 45 million) and the Central Bank of Sri Lanka (10 metric tons, for SDR 234 million) at prevailing market prices.

In February 2010, the IMF announced that it would initiate the on-market phase of its gold sales program. Subsequently, 39 metric tons were sold on-market through April 30, 2010, on the basis of prevailing market prices, for SDR 913 million. The IMF has continued the on-market gold sales after April 30, 2010.

The realized gains from sales of gold in the amount of SDR 3,753 million are included in the consolidated statements of comprehensive income and have been placed in the Special Reserve.

At April 30, 2010, the IMF held 2,966 metric tons, equal to 95.4 million fine ounces, at designated depositories (3,217 metric tons, equal to 103.4 million fine ounces, at April 30, 2009). Gold holdings were valued at a historical cost of SDR 4,183 million at April 30, 2010, compared to SDR 5,852 million at April 30, 2009.

20102009
OuncesCost Per ounceTotal costTotal cost
(In millions)(In SDRs)(In millions of SDRs)(In millions of SDRs)
Gold acquired from quota subscriptions90.474353,1673,167
Gold acquired from Cambodia in 19925
Gold acquired through off-market transactions in 1999/20004.9122071,0162,680
Total95.3864,1835,852

At April 30, 2010, the market value of the IMF’s holdings of gold was SDR 74.4 billion (SDR 61.0 billion at April 30, 2009).

9. Fixed assets

Fixed assets amounted to SDR 290 million and SDR 294 million at April 30, 2010, and 2009, respectively, and consisted of land, buildings, and equipment, furniture, and software.

LandBuildingsOtherTotal
(In millions of SDRs)
Financial year ended April 30, 2009
Cost
Beginning of the year9629898492
Additions41822
Disposals
End of the year96302116514
Accumulated depreciation and amortization
Beginning of the year14254196
Additions101424
Disposals
End of the year15268220
Net book value at April 30, 20099615048294
LandBuildingsOtherTotal
(In millions of SDRs)
Financial year ended April 30, 2010
Cost
Beginning of the year96302116514
Additions31922
Disposals
End of the year96305135536
Accumulated depreciation and amortization
Beginning of the year15268220
Additions101626
Disposals
End of the year16284246
Net book value at April 30, 20109614351290

10. Multilateral Debt Relief Initiative (MDRI)

Under the MDRI, effective January 5, 2006, debt relief is provided to qualifying Heavily Indebted Poor Countries (HIPCs) and non-HIPCs with an annual per capita income of US$380 or less, and to qualifying HIPCs with an annual per capita income of more than US$380. Grant assistance from the MDRI Trusts provides debt relief to cover the debt owed to the IMF at December 31, 2004, not covered by debt relief under the HIPC Initiative that remains outstanding at the time the member qualifies for such relief. For the financial years ended April 30, 2010, and 2009, the MDRI-I Trust disbursed SDR 2 million and SDR 9 million in grant assistance, respectively, allowing for early repayment of outstanding loans in the PRG Trust.

Since the debt that was owed to the IMF at December 31, 2004, decreases over time, the actual amount of debt eligible for MDRI assistance for the remaining qualifying members depends on the timing of their completion points. The IMF periodically reviews the qualification of members for HIPC and MDRI debt relief as these members make progress toward reaching the completion point under the HIPC Initiative.

MDRI grant assistance to the remaining eligible members is subject to the availability of resources and is accrued when it is probable that a liability has been incurred and the amount of such grant assistance needed can be reasonably estimated. The liability recorded in the MDRI-I Trust amounted to SDR 2 million and SDR 102 million at April 30, 2010, and 2009, respectively, and is based on the evaluation of available facts at the end of the reporting period with respect to each individual eligible member. It includes factors such as progress made toward reaching the completion point under the HIPC Initiative and the capacity to meet the macroeconomic performance and other objective criteria after reaching the completion point. As the qualification of members for MDRI debt relief is assessed, the amounts recorded are reviewed periodically and adjusted to reflect additional information that becomes available. During the financial years ended April 30, 2010, and 2009, the estimate for MDRI grant assistance to be provided by the MDRI-I Trust was reduced by SDR 98 million and SDR 80 million, respectively, to reflect the delay by the remaining eligible members in reaching the completion point.

The reconciliation of accrued MDRI grant assistance for the MDRI-I Trust for the financial years ended April 30, is as follows:

20102009
(In millions of SDRs)
Beginning of year102189
Additions2
Amounts utilized(2)(9)
Reversals(98)(80)
End of the year2102

11. Interest and charges

At April 30, 2010, the total credit outstanding on which the IMF levies charges amounted to SDR 41,238 million (SDR 20,426 million at April 30, 2009). For the financial years ended April 30, 2010, and 2009, the basic rate of charge was set at the SDR interest rate plus a fixed margin of 100 basis points. The average rate of charge (adjusted for burden sharing) before applicable surcharges for the financial year ended April 30, 2010, was 1.30 percent (2.84 percent for the financial year ended April 30, 2009).

Interest and charges receivable at April 30 were as follows:

20102009
(In millions of SDRs)
Periodic charges1,030920
Amount paid through burden sharing(695)(692)
Unpaid charges(134)(134)
20194
Interest receivable23
Total interest and charges receivables20397

Interest and periodic charges consisted of the following for the years ended April 30:

20102009
(In millions of SDRs)
Interest and periodic charges695363
Burden sharing adjustments24
Total interest and charges697367

Interest earned on SAF loans for the financial years ended April 30, 2010, and 2009, amounted to less than SDR 0.05 million each year.

Service charges and commitment fees on canceled or expired arrangements amounted to SDR 186 million and SDR 85 million for the years ended April 30, 2010, and 2009, respectively.

12. Special Disbursement Account

Contributions to Administered Accounts

Assets in the SDA can be used for special purposes authorized in the Articles of Agreement, including providing financial assistance on special terms to low-income member countries.

Proceeds from the repayment of SAF loans and Trust Fund loans and excess resources from the Supplementary Financing Facility Subsidy Account are transferred from the SDA to the Reserve Account of the PRG Trust as contributions. During the financial year ended April 30, 2010, no SAF or Trust Fund loan repayments (SDR 0.02 million for the financial year ended April 30, 2009) were contributed to the PRG Trust.

For the financial year ended April 30, 2010, the IMF Executive Board waived the reimbursement of expenses incurred in administering the PRG Trust, and decided to transfer SDR 38.4 million that would otherwise have been reimbursed to the GRA from the PRG Trust Reserve Account, through the SDA, to the General Subsidy Account of the PRG Trust. No transfer was made during the financial year ended April 30, 2009.

Trust Fund

The IMF is the Trustee of the Trust Fund, which was established in 1976 to provide balance of payments assistance on concessional terms to eligible members that qualified for such assistance. The Trust Fund is in liquidation following its termination in 1981. Since that date, the activities of the Trust Fund have been confined to the conclusion of its affairs. The Trust Fund has no assets other than loans and interest receivable from Somalia and Sudan amounting to SDR 89 million and SDR 88 million at April 30, 2010, and 2009, respectively. All interest income is deferred.

13. Borrowings and issued notes

During the financial year ended April 30, 2010, the IMF met part of its financing needs by drawing on bilateral borrowing agreements in the amount of SDR 4,758 million and on note purchase agreements (“issued notes”) in the amount of SDR 1,600 million with member countries or their central banks. Total committed resources from 19 agreements, converted at April 30, 2010, exchange rates, amount to SDR 173,755 million, of which SDR 167,397 million remains undrawn.

The average interest rate on outstanding borrowings and issued notes for the financial year ended April 30, 2010, was 0.25 percent per annum and the interest expense on borrowings and issued notes during the same period was SDR 7 million.

The following summarizes the borrowing and notes purchase agreements, whose terms commence on the date of the first drawing, in effect at April 30, 2010:

MemberAmount

(in billions)
Effective dateUndrawn balance

(in millions of SDRs)
Borrowings
JapanUS$100February 13, 200963,263
CanadaUS$10July 6, 20096,393
NorwaySDR 3July 14, 20092,873
United KingdomSDR 9.92September 1, 20099,660
Germany€15September 23, 200912,809
Netherlands€5.31October 5, 20094,537
Denmark€1.95November 4, 20091,664
Portugal€1.06November 30, 2009905
France€11.06December 2, 20099,319
Belgium€4.74February 12, 20104,012
Malta€0.12February 12, 2010102
Slovak Republic€0.44February 12, 2010372
Czech Republic€1.03March 31, 2010885
Sweden€2.47April 9, 20102,176
Finland€1.3April 26, 20101,145
Spain€4.14April 26, 20103,648
123,764
Issued Notes
ChinaSDR 32September 22, 200930,780
BrazilUS$10January 22, 20106,446
IndiaUS$10March 8, 20106,407
43,633
Total167,397

The borrowings and issued notes are encashable, subject to certain conditions, upon demand by the lenders. The new guidelines on IMF borrowing have set an SDR 15 billion limit per agreement on possible immediate encashment of bilateral loans and notes. Under the guidelines, the Executive Board has set the mix between borrowed resources and quota resources for IMF disbursements at a ratio of 50/50 in the context of the quarterly FTP.

Under the GAB and an associated agreement with Saudi Arabia, 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 periodically, most recently through December 26, 2013. Interest on borrowings under the GAB is set at the SDR interest rate. The NAB is the facility of first and principal recourse, but it does not replace the GAB. The NAB became effective on November 17, 1998, and has also been renewed periodically, most recently through November 17, 2013. There were no outstanding borrowings under the GAB or the NAB at April 30, 2010, and 2009.

14. Arrangements

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 agreed terms. At April 30, 2010, the undrawn balances under the 23 Stand-By and Extended Arrangements that were in effect in the GRA amounted to SDR 24,097 million (SDR 20,247 million under 15 arrangements at April 30, 2009). See Schedule 3.

At April 30, 2010, three arrangements under the Flexible Credit Line in the amount of SDR 52,184 million were active (one arrangement at April 30, 2009, in the amount of SDR 31,528 million).

15. Burden sharing and the Special Contingent Account

Under the burden sharing mechanism, the basic rate of charge is increased and the rate of remuneration is reduced to offset the effect on the IMF’s income of the nonpayment of charges and also to finance the additions to the SCA-1. Since November 1, 2006, the accumulation of further balances in the SCA-1 has been suspended.

Cumulative charges, net of settlements, that have resulted in adjustments to charges and remuneration since May 1, 1986 (the date the burden sharing mechanism was adopted) amounted to SDR 695 million at April 30, 2010 (SDR 692 million at April 30, 2009). 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 1,320 million at April 30, 2010, and 2009, respectively.

Balances in the SCA-1 are to be distributed to the members that contributed toward the SCA-1 when there are no longer any outstanding overdue repurchases and charges, or at such earlier time as the IMF may decide. Amounts collected from members for the SCA-1 are akin to refundable cash deposits and are recorded as collections of cash and as a liability to those who paid them. Losses arising from overdue obligations, if realized, would be shared by members in proportion to their cumulative contributions to the SCA-1. No additions have been made to the SCA-1 during the financial years ended April 30, 2010, and 2009.

16. Remuneration

At April 30, 2010, total creditor positions on which the IMF paid remuneration amounted to SDR 30,184 million (SDR 21,301 million at April 30, 2009). The average rate of remuneration (adjusted for burden sharing) for the financial year ended April 30, 2010, was 0.28 percent (1.74 percent for the financial year ended April 30, 2009). Remuneration consisted of the following for the years ended April 30:

20102009
(In millions of SDRs)
Remuneration86179
Burden sharing adjustments(2)(4)
84175

17. Administrative expenses

Administrative expenses, the majority of which were incurred in U.S. dollars, were as follows for the years ended April 30:

20102009
(In millions of SDRs)
Personnel344341
Pension and other long-term employee benefits24146
Travel6252
Restructuring7
Other7886
Administrative expenses, net of reimbursements725532

During the financial year ended April 30, 2008, the IMF embarked on an institutional restructuring plan that involved voluntary staff separations, and a provision of SDR 68 million was made for expected severance and other termination benefits for separating staff, as well as outplacement and other direct costs.

During the year ended April 30, 2010, costs related to separating staff amounting to SDR 28 million were charged against the provision. Other changes in the provision were (i) a reduction in estimated retraining and outplacement costs (SDR 5 million), and (ii) additional costs associated with outsourcing (SDR 5 million).

Movements in the provision were as follows for the years ended April 30:

20102009
(In millions of SDRs)
Beginning of year5568
Additions57
Reversals(5)
Amounts utilized(28)(20)
End of year2755

18. 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 gross remuneration and the IMF contributes the remainder of the cost of funding the Plans. In addition, the IMF provides other employment and post-retirement 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.

The defined benefit obligations are valued annually by independent actuaries using the Projected Unit Credit Method. The actuarial valuation carried out at April 30, 2010, include the amortization of prior service costs (SDR 4 million) and the effect of a Plan amendment approved in April 2010 (see below). The actuarial valuations at April 30, 2009, included the amortization of prior service costs (SDR 3 million) and the effect of an amendment to the Medical Benefits Plans, effective September 1, 2008. This amendment resulted in the recognition of an additional SDR 32 million of prior service cost during the financial year ended April 30, 2009, for benefits that vested immediately.

The actuarial valuation of accumulated plan benefits for the financial year ended April 30, 2010, reflected the impact of a Plan amendment, effective May 1, 2011, which increased withdrawal benefits to enhance benefit portability for shorter-term staff; increased commutation factors to reflect improvements in participant mortality; and reduced gross remuneration amounts to reflect decreases in personal income tax rates in comparator countries. The amendment resulted in the immediate recognition during the financial year ended April 30, 2010, of SDR 21 million in past service costs for vested benefits.

The amounts recognized in the statements of financial position for the SRP, the SRBP, and other employee benefits for the financial years ended April 30 are determined as follows:

20102009
SRPSRBPOtherTotalTotal
(In millions of SDRs)
Fair value of plan assets4,34275314,8803,839
Present value of the defined benefit obligation(3,815)(497)(955)(5,267)(4,368)
Unrecognized actuarial losses40878110596856
Unrecognized prior service cost191924
Net balance sheets asset/(liability)935(412)(295)228351

The IMF expects to contribute SDR 114 million to its defined benefit pension plans during the financial year ending April 30, 2011.

The reconciliation of the defined benefit obligation for financial years ended April 30 is as follows:

20102009
SRPSRBPOtherTotalTotal
(In millions of SDRs)
Defined benefit obligation at beginning of year3,1534108054,3684,000
Current service cost642946139135
Interest cost2273159317263
Staff contributions2712826
Benefits paid(117)(11)(47)(175)(163)
Prior service cost2012141
Actuarial losses/(gains)47140100611(298)
Exchange differences(30)(4)(8)(42)364
Defined benefit obligation at end of year3,8154979555,2674,368

The amounts recognized in the statements of comprehensive income for the financial years ended April 30 are as follows:

20102009
SRPSRBPOtherTotalTotal
(In millions of SDRs)
Current service cost642946139135
Interest cost2273159317263
Expected returns on assets(254)(1)(30)(285)(369)
Amortization of actuarial losses/(gains)39544(18)
Prior service cost20242635
Total expense recognized in the statements of comprehensive income96618424146
Actual return on assets1,107(1,412)

The pension and other post-retirement benefits expenses recognized in the statement of comprehensive income include the amortization, over the estimated average remaining service lives of IMF staff, of actuarial gains and losses in excess of a corridor that is the larger of 10 percent of either the defined benefit obligation or the fair value of assets at the beginning of the financial year.

The reconciliation of changes in fair value of assets for the financial years ended April 30 is as follows:

20102009
SRPSRBPOtherTotalTotal
(In millions of SDRs)
Fair value of assets at beginning of year3, 420114083,8394,940
Expected return on assets254130285369
Gains/(losses) on assets736(1)87822(1,782)
Employer contributions5565611793
Staff contributions2712826
Benefits paid(117)(11)(47)(175)(163)
Exchange differences(33)(3)(36)356
Actual fair value of assets at end of year4,34275314,8803,839

The funded status and the experience adjustments for the current and previous four financial years are as follows:

20102009200820072006
(In millions of SDRs)
Defined benefit obligation(5,267)(4,368)(4,000)(4,201)(3,834)
Plan assets4,8803,8394,9404,9284,468
(Deficit)/surplus in the Plans(387)(529)940727634
Experience adjustments on:
Plan liabilities(611)299303(195)312
Plan assets822(1,782)(20)287593
Exchange rates6(9)(33)(19)(17)

The major categories of plan assets as a percentage of the total value of plan assets at April 30 were as follows:

20102009
(In percentage)
Cash4.65.2
Fixed income17.018.9
Equity51.344.8
Real assets5.13.0
Private equity and other22.028.1
100.0100.0

The principal actuarial assumptions used in the actuarial valuations for the financial years ended April 30 were as follows:

20102009
(In percentage)
Discount rate6.007.25
Expected return on plan assets7.507.50
Future salary increases6.40–10.806.40–10.80
Health-care trend rate5.00–11.005.00–11.75

The expected return on plan assets is set by reference to historical returns on each of the main asset classes, current market indicators such as long-term bond yields, and the expected long-term strategic asset allocation of each plan.

The effects of the assumed health care costs growth rates on the defined benefits plans are as follows:

Increase of 1 percentage pointDecrease of 1 percentage point
(In millions of SDRs)
Effect on the aggregate of the service cost and interest cost19(14)
Effect on defined benefit obligation165(129)

Other assets represent miscellaneous receivables and amounted to SDR 79 million and SDR 69 million at April 30, 2010, and 2009, respectively.

19. Related-party transactions

The General Department conducts its transactions with the SDR Department on the same terms and conditions applicable to participants in the SDR Department. The expenses of conducting the SDR Department, the SRP, the RSBIA, and other accounts administered by the IMF as Trustee are borne by the GRA. In addition, reimbursements are made by the SDR Department, the SRP, and the RSBIA, and some, but not all, of the administered accounts.

The following summarizes the inter-entity balances at April 30, 2010, and 2009, and the related party transactions for the financial years then ended:

20102009
(In millions of SDRs)
SDR Department
Administrative expenses (reimbursed)22
PRG Trust
Cumulative SDA transfers to the:
Reserve Account2,8932,893
Subsidy Accounts908870
Administrative expenses (reimbursements forgone)3841
PRG-HIPC Trust
Cumulative transfers from the SDA1,2391,239
SRP and RSBIA
Administrative expenses (reimbursed)22

20. Subsequent Events

In May 2010, the IMF approved a three-year SDR 26.4 billion (Euro 30 billion) Stand-By Arrangement for Greece in support of the authorities’ economic adjustment and program. An amount of SDR 4.8 billion (about Euro 5.5 billion) was made immediately available to Greece from the IMF as part of joint financing with the European Union (EU), for a combined Euro 20.0 billion in immediate financial support. The Stand-By Arrangement, which along with EU financing for Greece amounts to €110 billion over three years, entails exceptional access to IMF resources.

On June 24, 2010, Tuvalu became the 187th member of the IMF. Tuvalu’s initial quota in the IMF is SDR 1.8 million.

On June 25, 2010, the IMF Executive Board approved the establishment of a new trust, the Post-Catastrophe Debt Relief Trust (PCDR Trust), to provide balance of payments assistance in the form of grants to eligible low-income members. The assistance shall be in the form of temporary debt flow relief and, in appropriate cases, permanent debt stock relief following an exceptional catastrophic natural disaster occurring any time after January 1, 2010. The IMF Executive Board also authorized the transfer of SDR 280 million in excess SDA resources currently in the MDRI-I Trust to the PCDR Trust to finance the debt relief operations of the PCDR Trust.

Schedule 1: Quotas, IMF’s holdings of currencies, reserve tranche positions, and outstanding credit and loans at April 30, 2010

(In millions of SDRs)

General Resources AccountOutstanding credit and loans
IMF’s holdings of currencies1Reserve tranche positionGRAPRG
MemberQuotaTotalPercent of quotaAmountPercent2SDA3Trust4Total5
(A)+(B)+(C)=(D)
Afghanistan, Islamic Republic of161.9161.9100.075.475.4
Albania48.753.9110.73.48.50.0233.341.8
Algeria1,254.71,144.691.2110.1
Angola286.3515.5180.1229.00.56229.0
Antigua and Barbuda13.513.5100.06
Argentina2,117.12,116.9100.00.2
Armenia92.0442.4480.9350.40.8569.3419.7
Australia3,236.42,540.278.5696.7
Austria1,872.31,498.180.0374.2
Azerbaijan160.9160.899.90.137.837.8
Bahamas, The130.3124.095.26.3
Bahrain135.063.847.371.2
Bangladesh533.3666.3124.90.3133.30.32287.0420.3
Barbados67.561.891.65.7
Belarus386.42,655.9687.362,269.55.502,269.5
Belgium4,605.23,678.679.9926.6
Belize18.819.3102.74.24.70.014.7
Benin61.959.796.42.224.824.8
Bhutan6.35.384.11.0
Bolivia171.5162.694.88.9
Bosnia and Herzegovina169.1473.4280.06304.40.74304.4
Botswana63.051.782.111.3
Brazil3,036.12,430.180.0606.0
Brunei Darussalam215.2201.793.713.7
Bulgaria640.2606.494.733.8
Burkina Faso60.252.887.77.470.470.4
Burundi77.076.699.50.464.664.6
Cambodia87.587.5100.0
Cameroon185.7184.999.60.8111.4111.4
Canada6,369.25,002.978.51,366.4
Cape Verde9.69.6100.066.76.7
Central African Republic55.755.599.60.250.050.0
Chad56.055.799.50.315.615.6
Chile856.1673.078.6183.1
China8,090.16,515.180.51,575.1
Colombia774.0605.378.2168.7
Comoros8.98.494.40.56.56.5
Congo, Democratic Republic of533.0533.0100.0499.5499.5
Congo, Republic of84.684.099.30.616.316.3
Costa Rica164.1144.187.820.0
Côte d’Ivoire325.2324.499.80.8218.5218.5
Croatia365.1364.999.90.2
Cyprus139.6111.379.728.4
Czech Republic819.3665.381.2154.0
Denmark1,642.81,286.378.3356.5
Djibouti15.914.893.11.19.89.8
Dominica8.210.2124.462.10.0110.412.5
Dominican Republic218.9775.1354.16556.21.35556.2
Ecuador302.3285.194.317.2
Egypt943.7943.7100.0
El Salvador171.3171.3100.0
Equatorial Guinea32.632.6100.0
Eritrea15.915.9100.06
Estonia65.265.2100.06
Ethiopia133.7126.294.47.5107.0107.0
Fiji70.354.377.216.0
Finland1,263.81,018.680.6245.2
France10,738.58,725.481.32,013.1
Gabon154.3153.899.70.5
Gambia, The31.129.695.21.520.220.2
Georgia150.3677.4450.76527.11.28114.2641.3
Germany13,008.210,386.679.82,621.7
Ghana369.0369.0100.06173.1173.1
Greece823.0652.379.3170.8
Grenada11.711.7100.017.717.7
Guatemala210.2210.2100.0
Guinea107.1107.099.90.136.336.3
Guinea-Bissau14.219.4136.60.15.30.011.06.3
Guyana90.990.9100.037.137.1
Haiti81.981.899.90.1178.1178.1
Honduras129.5120.993.48.620.320.3
Hungary1,038.48,601.6828.473.87,637.018.527,637.0
Iceland117.6869.0738.918.6770.01.87770.0
India4,158.23,270.378.6888.1
Indonesia2,079.31,933.893.0145.5
Iran, Islamic Republic of1,497.21,497.2100.06
Iraq1,188.41,314.4110.6171.1297.10.72297.1
Ireland838.4682.281.4156.2
Israel928.2743.980.1184.3
Italy7,055.55,590.179.21,465.4
Jamaica273.5687.8251.5414.31.00414.3
Japan13,312.810,675.980.22,638.0
Jordan170.5176.6103.60.36.30.026.3
Kazakhstan365.7365.7100.06
Kenya271.4258.595.212.9284.1284.1
Kiribati5.65.6100.06
Korea2,927.32,298.978.5628.4
Kosovo, Republic of59.044.875.914.2
Kuwait1,381.11,127.381.6253.8
Kyrgyz Republic88.888.8100.06102.1102.1
Lao People’s Democratic Republic52.952.9100.08.28.2
Latvia126.81,019.0803.60.1892.22.16892.2
Lebanon203.0260.3128.218.876.10.1876.1
Lesotho34.931.389.73.613.313.3
Liberia129.2471.9365.26342.80.83225.7568.5
Libya1,123.7798.971.1324.8
Lithuania144.2144.2100.06
Luxembourg279.1227.081.352.1
Macedonia, Former Yugoslav Rep. of68.968.9100.06
Madagascar122.2122.2100.0664.464.4
Malawi69.467.096.52.487.987.9
Malaysia1,486.61,204.481.0282.2
Maldives8.214.8180.51.68.20.022.110.3
Mali93.383.489.49.930.030.0
Malta102.080.278.621.8
Marshall Islands3.53.5100.06
Mauritania64.464.4100.021.421.4
Mauritius101.684.383.017.3
Mexico3,152.82,539.880.6613.1
Micronesia, Federated States of5.15.1100.06
Moldova123.2143.2116.2620.00.05136.3156.3
Mongolia51.1173.6339.70.1122.60.306.9129.5
Montenegro27.520.976.06.6
Morocco588.2517.888.070.4
Mozambique113.6113.6100.06109.1109.1
Myanmar258.4258.4100.0
Namibia136.5136.499.90.1
Nepal71.371.3100.0648.548.5
Netherlands5,162.44,274.382.8888.1
New Zealand894.6720.880.6173.8
Nicaragua130.0130.0100.095.995.9
Niger65.857.286.98.639.539.5
Nigeria1,753.21,753.1100.00.1
Norway1,671.71,346.980.6324.8
Oman194.0158.481.635.6
Pakistan1,033.75,202.9503.30.14,169.310.11568.54,737.8
Palau3.13.1100.06
Panama206.6194.894.311.9
Papua New Guinea131.6131.299.70.4
Paraguay99.978.478.521.5
Peru638.4516.480.9122.0
Philippines879.9792.290.087.7
Poland1,369.01,094.579.9274.5
Portugal867.4701.380.9166.1
Qatar263.8212.580.651.3
Romania1,030.29,293.2902.18,263.020.048,263.0
Russian Federation5,945.44,716.179.31,229.3
Rwanda80.180.1100.09.79.7
St. Kitts and Nevis8.911.0123.60.12.20.012.2
St. Lucia15.315.3100.066.96.9
St. Vincent and the Grenadines8.37.894.00.53.73.7
Samoa11.610.994.00.75.85.8
San Marino17.012.975.94.1
São Tomé and Príncipe7.47.4100.063.23.2
Saudi Arabia6,985.55,698.981.61,286.6
Senegal161.8160.198.91.7106.3106.3
Serbia, Republic of467.71,648.7352.51,180.92.861,180.9
Seychelles8.822.9260.2614.10.0314.1
Sierra Leone103.7103.7100.0658.958.9
Singapore862.5694.980.6167.6
Slovak Republic357.5289.781.067.8
Slovenia231.7189.681.842.1
Solomon Islands10.49.995.20.6
Somalia44.2140.9318.896.70.238.8112.0
South Africa1,868.51,867.099.91.5
Spain3,048.92,482.181.4566.8
Sri Lanka413.4784.1189.747.9418.61.0223.0441.6
Sudan169.7365.7215.5—6195.90.48255.1
Suriname92.186.093.46.1
Swaziland50.744.187.06.6
Sweden2,395.51,932.880.7462.7
Switzerland3,458.52,717.978.6740.7
Syrian Arab Republic293.6293.6100.06
Tajikistan87.087.0100.0626.126.1
Tanzania198.9188.995.010.0210.1210.1
Thailand1,081.9851.878.7230.1
Timor-Leste8.28.2100.06
Togo73.473.099.50.458.058.0
Tonga6.95.275.41.7
Trinidad and Tobago335.6275.482.160.2
Tunisia286.5266.392.920.2
Turkey1,191.35,998.7503.5112.84,920.211.934,920.2
Turkmenistan75.275.2100.06
Uganda180.5180.5100.066.06.0
Ukraine1,372.08,372.0610.267,000.016.987,000.0
United Arab Emirates611.7493.980.7118.4
United Kingdom10,738.58,683.780.92,055.0
United States37,149.329,579.579.67,568.6
Uruguay306.5306.5100.0
Uzbekistan275.6275.6100.06
Vanuatu17.014.585.32.5
Venezuela, Republica Bolivariana de2,659.12,337.287.9321.9
Vietnam329.1329.1100.0645.545.5
Yemen, Republic of243.5243.5100.0624.624.6
Zambia4891489.1100.06219.9219.9
Zimbabwe353.4353.199.90.372.972.9
Total217,431.7221,453.037,221.041,238.0100.008.85,036.846,349.3
The ending balances reflect rounding.

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

Represents the percentage 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 Trust (PRGT) arrangements.

For information purposes only. The PRG Trust is not a part of the General Department.

Includes outstanding Trust Fund loans: Somalia (SDR 6.5 million), and Sudan (SDR 59.2 million).

Less than SDR 50,000.

The ending balances reflect rounding.

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

Represents the percentage 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 Trust (PRGT) arrangements.

For information purposes only. The PRG Trust is not a part of the General Department.

Includes outstanding Trust Fund loans: Somalia (SDR 6.5 million), and Sudan (SDR 59.2 million).

Less than SDR 50,000.

Schedule 2: Financial resources and liquidity position in the General Resources Account at April 30, 2010, and 2009

(In millions of SDRs)

20102009
Total resources
Currencies221,453209,607
SDR holdings2,6352,133
Gold holdings4,1835,852
Other assets16,5926,875
234,863224,467
Available resources under borrowing and note purchase arrangements2167,397
Total resources402,260224,467
Less: Non-usable resources388,08670,352
of which: credit outstanding41,23820,426
Equals: Usable resources4314,174154,115
Less: Undrawn balances under GRA arrangements76,28151,775
Equals: Uncommitted usable resources237,893102,340
Plus: Repurchases one year forward51,914266
Less: Prudential balance670,73535,733
Equals: One-year forward commitment capacity (FCC)169,07266,873
Memorandum items
Resources committed under borrowing and note purchase arrangements
GAB/NAB34,00034,000
Others173,75567,000
Quotas of members that finance IMF transactions179,917178,664
Liquid liabilities37,22128,195

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.

Includes amounts available for drawing under activated borrowing and note purchase arrangements.

Resources are regarded as nonusable if they cannot be used in the financing of the IMF’s ongoing operations and transactions. These resources include (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.

Repurchases by member countries during the coming 12-month period.

Prudential balance is set at 20 percent of (i) quotas of members that issue the currencies that are used in the financing of IMF transactions and (ii) any amounts activated under GAB/ NAB borrowing arrangements, or otherwise made available under bilateral borrowing and note purchase agreements that are fully in place.

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.

Includes amounts available for drawing under activated borrowing and note purchase arrangements.

Resources are regarded as nonusable if they cannot be used in the financing of the IMF’s ongoing operations and transactions. These resources include (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.

Repurchases by member countries during the coming 12-month period.

Prudential balance is set at 20 percent of (i) quotas of members that issue the currencies that are used in the financing of IMF transactions and (ii) any amounts activated under GAB/ NAB borrowing arrangements, or otherwise made available under bilateral borrowing and note purchase agreements that are fully in place.

Schedule 3: Status of arrangements in the General Resources Account at April 30, 2010

(In millions of SDRs)

MemberDate of arrangementExpirationTotal amount agreedUndrawn balance
Stand-By Arrangements
AngolaNovember 23, 2009February 22, 2012859630
ArmeniaMarch 06, 2009July 05, 2011534183
Bosnia and HerzegovinaJuly 08, 2009June 30, 20121,015710
Costa RicaApril 11, 2009July 10, 2010492492
Dominican RepublicNovember 09, 2009March 08, 20121,095815
El SalvadorMarch 17, 2010March 16, 2013514514
GabonMay 07, 2007May 06, 20107777
GeorgiaSeptember 15, 2008June 14, 2011747220
GuatemalaApril 22, 2009October 21, 2010631631
HungaryNovember 06, 2008October 05, 201010,5382,901
IcelandNovember 19, 2008August 31, 20111,400630
IraqFebruary 24, 2010February 23, 20122,3772,080
JamaicaFebruary 04, 2010May 03, 2012821406
LatviaDecember 23, 2008December 22, 20111,522629
MaldivesDecember 04, 2009December 03, 20124941
MongoliaApril 01, 2009October 01, 201015331
PakistanNovember 24, 2008December 30, 20107,2363,067
RomaniaMay 04, 2009May 03, 201111,4433,180
Serbia, Republic ofJanuary 16, 2009April 15, 20112,6191,438
Sri LankaJuly 24, 2009March 23, 20111,6541,240
UkraineNovember 05, 2008November 04, 201011,0004,000
Total Stand-By Arrangements56,77623,915
Extended Arrangements
Moldova, Republic ofJanuary 29, 2010January 28, 2013185165
SeychellesDecember 23, 2009December 22, 20122017
Total Extended Arrangements205182
Flexible Credit Line
ColombiaMay 11, 2009May 10, 20106,9666,966
MexicoMarch 25, 2010March 24, 201131,52831,528
PolandMay 06, 2009May 05, 201013,69013,690
Total Flexible Credit Line52,18452,184
Total General Resources Account109,16576,281

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