Chapter

Appendix VIII Financial Statements of the General Department, Special Drawing Rights Department, Subsidy Account, Supplementary Financing Facility Subsidy Account, Trust Fund, and Staff Retirement Plan

Author(s):
International Monetary Fund
Published Date:
September 1983
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Report of the External Audit Committee

Washington, D.C.

July 1, 1983

Authority and Scope of the Audit

In accordance with Section 20(b) of the By-Laws of the International Monetary Fund we have audited the financial statements of the Fund for the year ended April 30, 1983, covering the

  • —General Department (including the General Resources Account, Borrowed Resources Suspense Accounts and Special Disbursement Account) together with supplemental schedules one through four,
  • —Special Drawing Rights Department, and
  • —Accounts Administered by the Fund which consist of the
    • Subsidy Account,
    • Supplementary Financing Facility Subsidy Account, and
    • Trust Fund.

The audit was conducted in accordance with international auditing guidelines and, accordingly, included reviews of accounting and control systems, tests of accounting records, evaluation of the extent and results of work performed by the Internal Auditor, and other audit procedures.

Audit Opinion

In our opinion, the financial statements of the General Department (including the related supplemental schedules one through four), the Special Drawing Rights Department, and the Accounts Administered by the Fund have been prepared in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding year, except for the change, with which we concur, in the method of accounting for compensated absences and termination grants as described in Note 9 to the General Department financial statements, and give a true and fair view of the respective financial positions and the allocations and holdings of Special Drawing Rights as at April 30, 1983, and of the financial results of operations and transactions during that year.

External Audit Committee:

/s/ Gerardo Rueda-Rábago, Chairman (Mexico)

/s/ Walter Scholz (Germany)

/s/ David G. Njoroge (Kenya)

International Monetary Fund

General Department

Balance Sheet

as at April 30, 1983

(In thousands of SDRs)

(Note 1)

19831982
Assets
Currencies and Securities (Notes 2 and 5)64,064,55459,861,433
SDR Holdings (Note 3)4,334,9095,456,084
Gold Holdings (Note 4)3,620,3963,620,396
Subscriptions Receivable10,800
Borrowed Resources Held in Suspense1,780,609236,447
Charges Receivable and Accrued (Note 5)505,334370,749
Other Assets13,23113,920
Total Assets74,319,03369,569,829
Quotas, Reserves, and Liabilities
Quotas
Subscriptions of Members61,059,80060,684,800
Reserves (Note 6)1,000,715935,320
Liabilities
Borrowing (Note 7)10,952,4796,772,754
Remuneration Payable (Note 5)981,121908,633
Interest Payable and Accrued (Note 7)268,868239,956
Other Liabilities and Deferred Credits (Note 5)56,05028,366
Total Quotas, Reserves, and Liabilities74,319,03369,569,829
The accompanying notes and schedules 1–4 are an integral part of the financial statements.
The accompanying notes and schedules 1–4 are an integral part of the financial statements.
/s/ David Williams/s/ J. de Larosière
Acting TreasurerManaging Director

Statement of Income and Expense

for the year ended April 30, 1983

(In thousands of SDRs)

(Note 1)

19831982
Operational Income
Periodic charges (Note 5)1,545,4121,092,055
Interest on SDR holdings444,258657,245
Service charges51,29134,801
Other4,3364,767
2,045,2971,788,868
Operational Expense
Remuneration (Note 5)981,121908,633
Interest on borrowing, net of income from temporary investments held in Borrowed
Resources Suspense Accounts (SDR 27,513 in 1983 and SDR 39,651 in 1982)807,383634,860
Other11
1,788,5041,543,504
Net Operational Income256,793245,364
Administrative Expense (Note 9)
Personnel122,208109,219
Travel21,75018,175
Other, net20,93014,497
Fixed property (Note 1)15,48011,438
Cumulative effect (to April 30, 1982) of changing the method of accounting for
compensated absences and accumulated termination grants (Note 9)11,030
Total Administrative Expense191,398153,329
Net Income65,39592,035
The accompanying notes and schedules 1–4 are an integral part of the financial statements.
The accompanying notes and schedules 1–4 are an integral part of the financial statements.

Statement of Changes in Reserves

for the year ended April 30, 1983

(In thousands of SDRs)

(Note 1)

19831982
Special Reserve (Note 6)
Balance at beginning of the year569,740477,705
Net income for the year65,39592,035
Balance at end of the year635,135569,740
General Reserve (Note 6)
Balance at beginning and end of the year365,580365,580
Total Reserves1,000,715935,320
The accompanying notes and schedules 1–4 are an integral part of the financial statements.
The accompanying notes and schedules 1–4 are an integral part of the financial statements.

Sources of Financing and Applications of Resources

for the year ended April 30, 1983

(In thousands of SDRs)

(Note 1)

April 30
19831982Net

Change
Sources of Financing
Members’ reserve tranche positions (Notes 2 and 5)
Remunerated positions14,997,4089,626,4455,370,963
Nonremunerated positions5,594,6065,991,093(396,487)
20,592,01415,617,5384,974,476
Borrowing (Note 7)10,952,4796,772,7544,179,725
Other liabilities, net of other assets780,579788,725(8,146)
Reserves1,000,715935,32065,395
33,325,78724,114,3379,211,450
Applications of Resources
Members’ use of Fund credit (Notes 2 and 5)23,589,87314,801,4108,788,463
SDR holdings4,334,9095,456,084(1,121,175)
Gold holdings3,620,3963,620,396
Borrowed resources held in suspense1,780,609236,4471,544,162
33,325,78724,114,3379,211,450
The accompanying notes and schedules 1–4 are an integral part of the financial statements.
The accompanying notes and schedules 1–4 are an integral part of the financial statements.

Notes to the Financial Statements

General Department

Under the Articles of Agreement, the General Department consists of the General Resources Account, the Special Disbursement Account, and the Investment Account. The Investment Account had not been activated at April 30, 1983. The General Department also includes Borrowed Resources Suspense Accounts, the establishment of which was authorized by the Executive Board in May 1981.

General Resources Account

Assets held in the General Resources Account comprise (i) currencies of the Fund’s member countries (including securities), (ii) SDR holdings, and (iii) gold.

Each member has been required to pay to the Fund the amount of its initial quota and subsequent increases partly in the member’s own currency and the remainder in the form of reserve assets, except that for the increases proposed in 1978, members were permitted to pay the entire increase in their own currencies. In March 1983, the Board of Governors of the Fund authorized an increase in quotas from their current levels to approximately SDR 90 billion. Twenty-five per cent of the quota increases are to be paid in SDRs or in the currencies of other members prescribed by the Fund, subject to their concurrence. Members have until November 30, 1983 to consent to the proposed increase. A member’s quota cannot be increased until it has consented to the increase and paid the subscription in full. No increase in quotas becomes effective before the date of the Fund’s determination that members having not less than 70 per cent of present quotas have consented to the increases proposed for them.

The Fund makes its resources available to its members by selling SDRs or currencies to members in exchange for their own currency in accordance with Fund policies on the use of its resources. Use of the Fund’s resources by a member is dependent on its having a balance of payments need.

When members make a purchase, they undertake to repurchase, within the period specified by the Fund, the Fund’s holdings of their currencies against the payment to the Fund of SDRs or the currencies of other members specified by the Fund. The Fund’s policies on the use of its resources, which indicate the time period for which purchases may be outstanding, are intended to assure that use of its resources is temporary and will be reversed within time periods specified by the Fund.

The composition of the Fund’s holdings of members’ currencies changes as a result of the Fund’s operations and transactions, including purchase and repurchase transactions in currencies as noted above. The currency holdings reflect both the counterpart of purchases by those members that have a need to use the Fund’s resources, and also the currencies of those members whose balance of payments and reserve positions are determined by the Fund on a quarterly basis to be sufficiently strong for their currencies to be used in all the Fund’s operations and transactions in accordance with the policies of the Fund.

A member has a reserve tranche position in the Fund to the extent that the Fund’s holdings of its currency, excluding holdings which reflect the member’s use of Fund credit, are less than the member’s quota. A member’s reserve tranche position is regarded as a part of the member’s external reserves and a member may purchase up to the amount of its full reserve tranche at any time. Reserve tranche purchases are not regarded as a use of Fund credit.

Members may make use of Fund credit under various policies and the amount of such use is related to a member’s quota in the Fund. Under the credit tranche policy, the Fund’s credit is at present made available to members in a range consisting of four tranches or segments each equal to 25 per cent of a member’s quota. A first credit tranche purchase is defined as one that raises the Fund’s holdings of a member’s currency in the credit tranche from zero to 25 per cent of quota. Subsequent purchases are made in three successive tranches, each equal to 25 per cent of quota, to a level of no more than 100 per cent of quota. Purchases in these three tranches are referred to as upper credit tranche purchases. The distinction between first and upper credit tranches also reflects the higher conditionally that accompanies the use of Fund credit in the upper tranches.

Members experiencing balance of payments difficulties may enter into stand-by arrangements with the Fund under which the Fund commits itself to provide resources to be made available over periods of up to three years from the date of the arrangements. Purchases under these arrangements in the upper credit tranches depend upon the member’s meeting the performance criteria included in the arrangements.

In addition to purchases under the Fund’s credit tranche policies, members may use the Fund’s resources under decisions on:

  • Compensatory financing—to assist members, particularly primary exporters, encountering payments difficulties produced by temporary export shortfalls attributable to circumstances beyond their control and in addition, at their option, to assist members encountering payments difficulties produced by an excess in the cost of their cereal imports.
  • Buffer stock financing—to assist members in connection with the financing of international buffer stocks of primary products.
  • Extended Fund facility—to provide through extended arrangements of up to three years medium-term assistance to members to make structural adjustments in their economies. Purchases under these arrangements depend upon the member’s meeting the performance criteria included in the arrangements.
  • Supplementary financing facility and the policy on enlarged access—to make available under stand-by and extended arrangements resources, in addition to those available in the credit tranches or under the extended Fund facility, to members facing serious payments imbalances that are large in relation to their quotas. These policies are temporary and may be utilized only in conjunction with the use of resources under the upper credit tranche policy.

Members were also able to use the oil facility until May 1976 for balance of payments problems caused by increases in the cost of petroleum and petroleum products.

Members that have purchased resources from the Fund undertake to repurchase the Fund’s holdings of their currencies against the payment to the Fund of SDRs or the currencies of other members specified by the Fund, except in the case of reserve tranche purchases made after April 1, 1978, which are not subject to repurchase. Under the Fund’s repurchase policies, purchases in the credit tranches, under the compensatory financing facility and under the buffer stock facility are to be repurchased in quarterly installments beginning three years, and ending not later than five years, after the date of purchase; repurchases under the supplementary financing facility and the enlarged access policy are to be made in semiannual installments beginning three and one-half years, and ending not later than seven years, after the date of purchase; and repurchases under the extended Fund facility are to be made in semiannual installments beginning four years, and ending not later than ten years, after the date of purchase. However, a member is entitled to repurchase at any time holdings of its currency on which the Fund levies charges, and is expected to make repurchases prior to the periods mentioned above as and when its balance of payments and reserve position improves.

Borrowed Resources Suspense Accounts

Borrowed Resources Suspense Accounts have been established in order to hold, transfer, convert, and invest (i) currencies borrowed by the Fund before they are transferred to the General Resources Account for use in transactions or operations; and (ii) currencies received by the Fund in repurchases financed with borrowed resources before repayments to lenders can be made. Members are not obligated to maintain the SDR value of their currencies held by the Fund in the Borrowed Resources Suspense Accounts and as far as practicable, the currencies are invested in SDR-denominated obligations.

At April 30, 1983 borrowed resources held in suspense amounted to SDR 1,780.61 million (SDR 236.45 million at April 30, 1982) and included accrued income of SDR 3.37 million (SDR 6.66 million at April 30, 1982).

Special Disbursement Account

The Special Disbursement Account was activated on June 30, 1981. The Fund administers a Trust Fund, established in 1976 to provide balance of payments assistance on concessional terms to certain members. This Trust Fund is at present being wound up and the Fund has decided that resources received by the Trust Fund after April 30, 1981 will be transferred to the Special Disbursement Account, of which up to SDR 750 million is to be placed to the Supplementary Financing Facility Subsidy Account. At April 30, 1983 SDR 48.80 million (SDR 14.99 million at April 30, 1982) had been received into the Special Disbursement Account from the Trust Fund and placed to the Supplementary Financing Facility Subsidy Account. There were no resources held in the Special Disbursement Account at April 30, 1983 and 1982.

1. Accounting Practices

Unit of Account

The accounts of the General Department are expressed in terms of the SDR, the currency value of which is determined daily by the Fund, at present, by summing the values in U.S. dollars, based on market exchange rates, of a basket of five specified currencies, as follows:

CurrenciesAmount
U.S. dollar0.54
Deutsche mark0.46
French franc0.74
Japanese yen34
Pound sterling0.071

Members’ currencies are valued in terms of the SDR on the basis of the representative rate of exchange determined in accordance with the Rules of the Fund. Gold with depositories is valued on the basis that one SDR is equivalent to 0.888671 gram of fine gold.

Basis of Accounting

The Fund maintains its books of account on an accrual basis and, accordingly, recognizes income as it is earned and records expenses as they are incurred. It is the practice of the Fund to make all calculations on the basis of the exact number of days in the accounting period.

The established policy of the Fund is to charge as an expense of each accounting period the total costs incurred for fixed property, furniture, and equipment. For the year ended April 30, 1983, the cost of property, furniture, and equipment charged as an expense amounted to SDR 20.60 million (SDR 12.48 million in 1982).

2. Currencies and Securities

Each member has the option to substitute nonnegotiable and noninterest-bearing securities for the amount of its currency held by the Fund in the General Resources Account that is in excess of ¼ of 1 per cent of the member’s quota. These securities, which are part of the Fund’s currency holdings, are encashable by the Fund on demand.

Changes in the Fund’s holdings of members’ currencies and securities for the year ended April 30, 1983 were as follows:

In millions of SDRs
April 30,

1983
April 30,

1982
Net

Members’ quotas61,06060,685375
Less subscriptions receivable1111
61,06060,674386
Members’ use of Fund credit23,59014,8018,789
Members’ reserve tranche positions(20,592)(15,618)(4,974)
Administrative currency balances743
Currencies and securities64,06559,8614,204

Each member is obligated to maintain the value of the Fund’s holdings of its currency in terms of the SDR except for holdings which may be held in Borrowed Resources Suspense Accounts, the Special Disbursement Account, and the Investment Account. Whenever the Fund revalues its holdings of a member’s currency, an account receivable or an account payable is established for the amount of currency payable by or to the member in order to maintain the value of the Fund’s holdings of the currency in terms of the SDR. The balances of the accounts receivable or payable are reflected in the Fund’s total currency holdings. At April 30, 1983, accounts receivable to maintain SDR values of currency holdings amounted to SDR 7,963.08 million and accounts payable amounted to SDR 717.10 million. At June 15, 1983, the amounts receivable were SDR 4,716.52 million and amounts payable were SDR 137.61 million.

3. SDR Holdings

SDRs are reserve assets created by the Fund and allocated to members participating in the Special Drawing Rights Department. Although SDRs are not allocated to the Fund, the Fund may acquire, hold, and dispose of them through the General Resources Account. SDRs held by the Fund are received from its members in the settlement of their financial obligations to the Fund (quota payments, repurchases, and charges) and may be used by the Fund in transactions and operations between the Fund and its members (sold to members in purchases or transferred to members in the settlement of remuneration and interest on Fund borrowing). The Fund earns interest on its SDR holdings.

4. Gold Holdings

At April 30, 1983 the Fund held 3,217,341 kilograms of gold at designated depositories.

5. Fund Operations

For the year ended April 30, 1983, members’ purchases amounted to SDR 11,392 million, of which SDR 1,134 million were reserve tranche purchases. Over the same period, repurchases by members totaled SDR 1,470 million.

Changes in the outstanding use of Fund credit under various facilities for the period ended April 30, 1983, were as follows:

In millions of SDRs
April 30,

1982
PurchasesRepurchasesApril 30,

1983
Regular facilities3,2061,8052904,721
Compensatory financing3,6433,7405466,837
Buffer stock financing35245307
Extended Fund facility2,1151,220193,316
Oil facility56553827
Supplementary financing facility4,1121,959326,039
Enlarged access resources1,1601,1822,342
Total14,80110,2581,47023,589

Periodic Charges and Remuneration

The Fund levies charges, which are payable periodically, on its holdings of a member’s currency that derive from the member’s use of Fund credit. A service charge is levied by the Fund on each purchase involving use of Fund resources other than reserve tranche purchases.

Remuneration is paid by the Fund on that part of a member’s reserve tranche position which is the difference between holdings of currency (excluding those that derive from use of Fund credit) and the amount of its quota equal to 75 per cent of quota on April 1, 1978 and the total of subsequent increases in quota. For members joining the Fund after that date, the proportion of quota is equal to the average of all other members on the date the member joined the Fund plus subsequent increases in the member’s quota.

At April 30, 1983 the total holdings on which the Fund levied charges amounted to SDR 23,589 million (SDR 14,801 million in 1982) and total creditor positions on which the Fund paid remuneration amounted to SDR 14,997 million (SDR 9,626 million in 1982).

One member, Democratic Kampuchea, has not fulfilled its financial obligations to the General Department, either to repurchase a part of the Fund’s holdings of the member’s currency, or to pay charges on currency balances held by the Fund. At April 30, 1983, purchases by Democratic Kampuchea to be repurchased amounted to SDR 18.74 million and unpaid charges receivable from Democratic Kampuchea amounted to SDR 5.63 million and these unpaid charges are included in the balance sheet as charges receivable and as a deferred credit. On December 19, 1978 the Executive Board decided that Democratic Kampuchea may not make use of the general resources of the Fund until such time as Democratic Kampuchea is fulfilling its obligations under the Articles of Agreement.

6. Reserves

The Fund determines annually what part of its net income shall be placed to the General Reserve or to the Special Reserve, and what part, if any, shall be distributed. The Articles of Agreement do not limit the use that the Fund may make of the General Reserve, and permit the Fund to use the Special Reserve for any purpose for which it may use the General Reserve, except distribution. Any administrative deficit for any financial year must be written off first against the Special Reserve. Net income for the year ended April 30, 1983 was placed to the Special Reserve.

7. Borrowing

Outstanding borrowing by the Fund was as follows:

In millions of SDRs
April 30,

1983
April 30,

1982
Oil facilitySDR 18SDR 526
Supplementary financing facility6,0374,112
Enlarged access resources4,1201,358
General Arrangements to Borrow777777
SDR 10,952SDR 6,773

Oil Facility

In 1974 and 1975, the Fund entered into borrowing agreements with various members and Switzerland, or institutions within their territories, under which these lenders agreed to provide the Fund with specified currencies to finance purchases of currencies from the Fund by other members under the oil facility. The outstanding borrowings carry an interest rate of 7¼ per cent per annum. Calls made by the Fund under these arrangements are repayable in installments beginning not later than three and one-half years, and are to be completed not later than seven years, after the dates of the calls.

Supplementary Financing Facility (SFF)

The supplementary financing facility became operational in May 1979. The Fund has entered into borrowing agreements with 14 members, or institutions within their territories, and with the Swiss National Bank under which the lenders have agreed to make resources available to the Fund, at call, up to SDR 7,784 million until February 1984 to finance purchases by members under this facility. Borrowing by the Fund under these agreements is to be repaid in installments from three and one-half to seven years after the date of borrowing. Interest paid by the Fund on amounts borrowed under the borrowing agreements is based on the average yield on U.S. Government securities with a constant maturity of five years.

Enlarged Access Resources (EAR)

The policy on enlarged access became operational in May 1981. The Fund has entered into borrowing agreements with various members, or institutions within their territories, the Bank for International Settlements, and the Swiss National Bank under which the lenders have agreed to make resources available to the Fund, up to SDR 9,305 million, to finance purchases by members under the policy. The maturities of borrowing by the Fund under these agreements vary from six months to seven years. Interest paid by the Fund on amounts borrowed under these agreements is at variable rates of interest which are established periodically, and are related to market interest rates, based on weighted average yields of domestic instruments denominated in the five currencies in the SDR valuation basket.

General Arrangements to Borrow (GAB)

Ten members, or institutions within their territories, have adhered to the General Arrangements to Borrow under which the Fund may borrow their currencies up to specified amounts when supplementary resources are needed to forestall or to cope with an impairment of the international monetary system. The GAB may be activated only to finance purchases by a participant. These arrangements first became effective from October 24, 1962 and have been renewed until October 23, 1985. The Swiss Confederation has been associated with the GAB since June 1964. The present arrangement with the Swiss Confederation expires on July 15, 1985. Amounts available to the Fund under these arrangements are expressed in the currency of the lender. Based on rates in effect at April 30, 1983, the amounts available to the Fund amounted to SDR 6,449.5 million. The Fund pays a transfer charge of ½ of 1 per cent on amounts borrowed under these arrangements, and, in addition, pays interest at the rate at which the Fund levies charges on the holdings of currencies resulting from purchases for which it incurred the indebtedness, provided that the rate of interest shall be not less than 4 per cent per annum on any part of the indebtedness. Any calls made by the Fund under the GAB are repayable within five years and amounts outstanding at April 30, 1983 are to be repaid no later than November 1983.

In February 1983, the Fund approved an enlargement of the GAB to SDR 17 billion including provision for the adherence of the Swiss National Bank as a participant, and for associated agreements with nonparticipants. It also approved amendments that would allow the Fund to borrow under the GAB in certain circumstances in order to finance purchases by nonparticipants. These changes will become effective when all ten participants have notified the Fund that they concur in the amendments and in the increased credit limits. Participants were asked to notify the Fund of their concurrence by December 31, 1983.

Borrowing Guidelines

The Fund has established guidelines for borrowing, which provide that the Fund will not allow the total of outstanding borrowing, plus unused credit lines, to exceed the range of 50 to 60 per cent of the total of Fund quotas. Since at present, all GAB lines of credit may not be called upon at the same time, the total of outstanding borrowing shall include, either outstanding borrowing by the Fund under the GAB, or one half of the total credit lines under the GAB, whichever is the greater. The borrowing guidelines are subject to review by the Executive Board. At April 30, 1983 total outstanding borrowing and unused credit lines, calculated in accordance with these guidelines, were equal to 33.1 per cent of quotas (34.3 per cent at April 30, 1982).

8. Commitments Under Stand-By and Extended Arrangements

At April 30, 1983, thirty-nine arrangements were in effect and undrawn balances under these arrangements amounted to SDR 16,405.1 million.

9. Administrative Expenses

The Fund incurs administrative expenses primarily for salaries, travel, and other administrative needs, which are expended in accordance with an administrative budget approved by the Executive Board. Expenditures for building costs are authorized outside of the annual administrative budget. The Fund is reimbursed in respect of the expenses incurred in administering the Special Drawing Rights Department.

The Fund has certain commercial deposits and receivables relating to its administrative activities. These deposits and receivables are not subject to the maintenance of value obligations.

The Fund pays various allowances to or on behalf of Executive Directors and staff including the employer’s contribution to the Staff Retirement Plan. All contributions to the Plan and all other assets, liabilities, and income of the Plan are held separately outside of the General Department and can be used or incurred only for the benefit of the participants in the Plan and their beneficiaries. The employer contributes that part of the costs and expenses of the Plan not provided by the contributions of the participants. In addition, experience gains and losses of the Plan, as determined by the actuary engaged by the Pension Committee, are amortized over a period of 15 years. The unamortized experience losses at April 30, 1983 amounted to SDR 57.0 million (calculated at the SDR value of the U.S. dollar on that date). Payments over the next 15 years to amortize the actuarial experience losses are estimated to be approximately SDR 75.2 million (at the April 30, 1983 SDR/US$ rate) of which SDR 6.9 million was paid on May 2, 1983.

Contributions by the employer to the Staff Retirement Fund for the year ended April 30, 1983 amounted to SDR 30.3 million, including SDR 7.5 million for the amortization of actuarial experience losses (SDR 5.3 million in 1982) and SDR 6.8 million to fund cost of living supplements to beneficiaries (SDR 7.3 million in 1982).

The Fund staff are entitled to accumulate annual leave, up to a maximum of 60 days, which may be commuted into a cash payment upon termination of employment. In addition, upon the completion of five years’ service, each member of the staff is entitled to a termination grant, subject to maximum amounts based on years of service after July 1979. Prior to 1983, the Fund accounted for these amounts of accumulated leave and of earned termination grants only as they were paid. In 1983, the Fund elected to account for these amounts as an expense as they are earned. The effect of this change was to reduce the Fund’s income in 1983 by SDR 14.7 million, of which SDR 11.0 million represents the effect of the change for years prior to 1983.

Schedule 1 Quotas, Fund’s Holdings of Currencies, Members’ Use of Fund Resources, and Reserve Tranche Positions

as at April 30, 1983

(In thousands of SDRs)

Fund’s Holdings of Currencies 1Use of Fund ResourcesReserve Tranche Positions
QuotasTotalPer cent of quota
Afghanistan67,50052,41677.715,086
Algeria427,500301,91470.6125,587
Antigua and Barbuda3,6003,600100.02
Argentina802,5001,623,356202.3820,840
Australia1,185,0001,217,406102.732,46367
Austria495,000189,00038.2306,004
Bahamas49,50042,85086.66,651
Bahrain30,00014,48948.315,514
Bangladesh228,000597,127261.9376,6447,520
Barbados25,50049,590194.524,0912
Belgium1,335,0001,034,88577.5300,153
Belize7,2005,88281.71,321
Benin24,00021,98191.62,024
Bhutan1,7001,33178.3370
Bolivia67,500159,766236.792,2454
Botswana13,5004,35132.29,152
Brazil997,5002,336,756234.31,339,250
Burma109,500174,290159.264,788
Burundi34,50034,655100.57,5007,368
Cameroon67,50053,87879.826813,896
Canada2,035,5001,725,21084.8310,436
Cape Verde3,0002,42580.8576
Central African Republic24,00044,180184.121,3681,211
Chad24,00026,043108.57,1005,064
Chile325,500742,510228.1417,004
China1,800,0002,249,999125.0450,0001
Colombia289,50060,74321.0228,762
Comoros3,5003,500100.01
Congo25,50022,21987.13,297
Costa Rica61,500158,600257.997,077
Cyprus51,00059,455116.68,4472
Denmark465,000367,19079.097,813
Djibouti5,7004,46578.31,237
Dominica2,90012,817442.09,9182
Dominican Republic82,500262,065317.7179,563
Ecuador105,000105,029100.0
Egypt342,000392,039114.650,029
El Salvador64,500161,875251.097,373
Equatorial Guinea15,00029,748198.314,739
Ethiopia54,000166,499308.3112,50016
Fiji27,00035,103130.013,5005,405
Finland393,000322,72982.17,19477,486
France2,878,5002,010,10769.8868,701
Gabon45,00052,442116.57,47438
Gambia, The13,50042,423314.228,94636
Germany, Federal Republic of3,234,000852,58926.42,381,431
Ghana159,000174,995110.115,9901
Greece277,500221,93280.055,569
Grenada4,5008,802195.64,300
Guatemala76,500172,100225.095,6006
Guinea45,00055,060122.411,5001,450
Guinea-Bissau5,9008,438143.02,5382
Guyana37,500113,123301.775,620
Haiti34,50082,105238.047,65070
Honduras51,000160,393314.5109,391
Hungary375,000672,605179.4297,600
Iceland43,50065,009149.421,500
India1,717,5004,019,243234.02,666,000364,269
Indonesia720,000785,105109.065,100
Iran, Islamic Republic of660,000589,23689.370,765
Iraq234,100234,103100.0
Ireland232,500157,34167.775,165
Israel307,500325,601105.918,1004
Italy1,860,0001,229,39966.1630,613
Ivory Coast114,000587,091515.0473,0872
Jamaica111,000665,274599.3554,206
Japan2,488,5001,231,66649.51,256,838
Jordan45,00028,43863.216,567
Kampuchea, Democratic25,00037,494150.012,5007
Kenya103,500445,335430.3343,9422,137
Korea255,9001,394,125544.81,138,221
Kuwait393,300141,73436.0251,567
Lao People’s Democratic Republic24,00036,944153.912,944
Lebanon27,90021,77178.06,130
Lesotho10,50010,41599.285
Liberia55,500231,544417.2176,032
Libyan Arab Jamahiriya298,400109,22736.6189,173
Luxembourg46,50034,29673.812,208
Madagascar51,000186,568365.8136,7441,178
Malawi28,500117,736413.189,2417
Malaysia379,500579,028152.6316,050116,537
Maldives1,4001,09878.4303
Mali40,50067,299166.235,4758,680
Malta30,0004,42414.725,606
Mauritania25,50067,588265.142,076
Mauritius40,500191,703473.3151,20513
Mexico802,5001,103,492137.5300,935
Morocco225,0001,088,944484.0863,93818
Nepal28,50034,484121.011,6785,693
Netherlands1,422,000767,87254.0654,136
New Zealand348,000347,970100.041
Nicaragua51,00068,549134.417,540
Niger24,00017,86574.46,135
Nigeria540,000540,000100.05
Norway442,50094,16521.3348,341
Oman30,0007,64925.522,361
Pakistan427,5001,590,876372.11,222,17958,822
Panama67,500142,736211.575,23514
Papua New Guinea45,00089,938199.945,00067
Paraguay34,5005,57816.228,929
Peru246,000811,356329.8565,3302
Philippines315,0001,277,095405.4962,034
Portugal258,000209,23181.148,770
Qatar66,20041,42462.624,781
Romania367,5001,227,396334.0859,891
Rwanda34,50027,19678.87,308
St. Lucia5,4007,950147.22,549
St. Vincent2,6004,100157.71,500
São Tomé and Principe3,0002,34878.3654
Saudi Arabia2,100,000434,78920.71,665,212
Senegal63,000223,627355.0161,563937
Seychelles2,0001,55978.0442
Sierra Leone46,500113,224243.566,723
Singapore92,40022,20024.070,213
Solomon Islands3,2005,577174.32,40023
Somalia34,500114,790332.780,276
South Africa636,0001,430,972225.0795,00032
Spain835,500629,93575.4205,564
Sri Lanka178,500486,497272.5313,9005,907
Sudan132,000681,450516.3549,445
Suriname37,50029,62579.07,876
Swaziland18,00018,973105.497510
Sweden675,000531,67678.8143,330
Syrian Arab Republic94,50094,503100.0
Tanzania82,500151,011183.068,493
Thailand271,500959,445353.4687,95917
Togo28,50048,418169.920,116206
Trinidad and Tobago123,00024,86520.298,138
Tunisia94,50075,30879.719,204
Turkey300,0001,768,588589.51,468,582
Uganda75,000336,152448.2264,6623,522
United Arab Emirates202,600106,16452.496,439
United Kingdom4,387,5002,765,83863.01,621,703
United States12,607,5005,479,72943.57,132,991
Upper Volta24,00018,36776.55,635
Uruguay126,000201,616160.075,600
Vanuatu6,9005,86585.01,039
Venezuela990,000563,02056.9426,991
Viet Nam135,000164,708122.029,7085
Western Samoa4,5008,076179.53,574
Yemen Arab Republic19,50029,250150.09,7503
Yemen, People’s Democratic Republic of61,50077,340125.815,839
Yugoslavia415,5002,159,941519.81,747,7323,297
Zaïre228,000609,071267.1381,066
Zambia211,500783,677370.5572,173
Zimbabwe150,000303,579202.4153,59517
Totals61,059,80064,064,55423,589,87320,592,014

Includes nonnegotiable, noninterest-bearing notes, which members are entitled to issue in substitution for currency.

Less than SDR 500.

Includes nonnegotiable, noninterest-bearing notes, which members are entitled to issue in substitution for currency.

Less than SDR 500.

Schedule 2 Members’ Purchases Subject to Repurchase by Year of Scheduled Repurchase1

as at April 30, 1983

(In thousands of SDRs)

Financial Years Ending April 30Credit TranchesCompensatory FinancingBuffer StockExtended FacilityOil FacilityTotal2
1984671,383729,70881,94727,3151,516,5972
19851,660,093979,995276,6202,916,708
19862,135,1881,474,39230,990717,3634,357,933
19872,427,0242,306,809152,7301,175,6586,062,221
19881,854,9091,345,767123,0651,306,2044,629,945
1989837,5961,119,7101,957,306
1990408,567758,1791,166,746
1991488,781488,781
1992377,856377,856
1993164,072164,072
Totals9,994,7606,836,671306,7856,466,39027,31523,638,1652

A member is entitled to repurchase at any time holdings of its currency subject to charges and is expected to make repurchases as and when its balance of payments and reserve position improves.

The total of outstanding purchases includes SDR 6.244 million of purchases in the reserve tranche made prior to April 1, 1978, and which are subject to repurchase. Purchases in the reserve tranche made after the Second Amendment of the Articles of Agreement effective on April 1, 1978 are not subject to repurchase.

A member is entitled to repurchase at any time holdings of its currency subject to charges and is expected to make repurchases as and when its balance of payments and reserve position improves.

The total of outstanding purchases includes SDR 6.244 million of purchases in the reserve tranche made prior to April 1, 1978, and which are subject to repurchase. Purchases in the reserve tranche made after the Second Amendment of the Articles of Agreement effective on April 1, 1978 are not subject to repurchase.

Schedule 3 Scheduled Repayments of Fund Borrowing

as at April 30, 1983

(In thousands of SDRs)

Periods of Repayment1 Financial Years Ending April 30Oil Facility 1975 AgreementsGeneral Arrangements to BorrowSupplementary Financing FacilityEnlarged Access ResourcesTotal
198418,252777,254199,478560,103 21,555,087
1985655,997655,997
19861,200,856312,0001,512,856
19871,563,542890,0002,453,542
19881,320,759890,0002,210,759
1989768,837890,0001,658,837
1990327,401578,000905,401
Totals18,252777,2546,036,8704,120,10310,952,479

Dates of repayment are the scheduled dates as provided in the borrowing agreements between the Fund and lenders. The borrowing agreements also permit earlier repayments in certain circumstances.

Short-term borrowing with original maturities not exceeding three years. At maturity, the amounts are subject to renewal in accordance with the provisions of the borrowing agreements, under which, within certain time limits, the Fund has the option to renew borrowing.

Dates of repayment are the scheduled dates as provided in the borrowing agreements between the Fund and lenders. The borrowing agreements also permit earlier repayments in certain circumstances.

Short-term borrowing with original maturities not exceeding three years. At maturity, the amounts are subject to renewal in accordance with the provisions of the borrowing agreements, under which, within certain time limits, the Fund has the option to renew borrowing.

Schedule 4 Status of Stand-By Arrangements and Extended Arrangements

as at April 30, 1983

(In thousands of SDRs)

MemberDate of ArrangementExpirationTotal Amount AgreedUndrawn Balance
Stand-By Arrangements
ArgentinaJanuary 24, 1983April 23, 19841,500,0001,199,260
BangladeshMarch 28, 1983August 31, 198368,40045,600
BarbadosOctober 1, 1982May 31, 198431,87519,500
Central African RepublicApril 22, 1983April 21, 198418,00018,000
ChileJanuary 10, 1983January 9, 1985500,000378,000
Costa RicaDecember 20, 1982December 19, 198392,25073,800
El SalvadorJuly 16, 1982July 15, 198343,00015,500
GuineaDecember 1, 1982November 30, 198325,00013,500
HaitiAugust 9, 1982September 30, 198334,50017,500
HondurasNovember 5, 1982December 31, 198376,50045,900
HungaryDecember 8, 1982January 7, 1984475,000249,400
KenyaMarch 21, 1983September 20, 1984175,950130,750
LiberiaSeptember 29, 1982September 28, 198355,00020,000
MadagascarJuly 9, 1982July 8, 198351,00010,200
MalawiAugust 6, 1982August 5, 198322,0006,000
MaliMay 21, 1982May 20, 198330,375
PhilippinesFebruary 25, 1983February 28, 1984315,000265,000
RomaniaJune 15, 1981June 14, 19841,102,500560,500
SenegalNovember 24, 1982November 23, 198347,25041,340
SomaliaJuly 15, 1982January 14, 198460,00026,250
South AfricaNovember 3, 1982December 31, 1983364,000205,000
SudanFebruary 23, 1983February 22, 1984170,000102,000
ThailandNovember 17, 1982December 31, 1983271,500176,700
TogoMarch 4, 1983April 3, 198421,37519,375
TurkeyJune 18, 1980June 17, 19831,250,00090,000
UgandaAugust 11, 1982August 10, 1983112,50037,500
UruguayApril 22, 1983April 21, 1985378,000378,000
YugoslaviaJanuary 30, 1981December 31, 19831,662,000379,000
ZambiaApril 18, 1983April 17, 1984211,500180,000
ZimbabweMarch 23, 1983September 22, 1984300,000240,000
9,464,4754,943,575
Extended Arrangements
BrazilMarch 1, 1983February 28, 19864,239,3754,114,500
DominicaFebruary 6, 1981February 5, 19848,5502,138
Dominican RepublicJanuary 21, 1983January 20, 1986371,250297,000
IndiaNovember 9, 1981November 8, 19845,000,0002,600,000
Ivory CoastFebruary 27, 1981February 22, 1984484,500153,900
JamaicaApril 13, 1981April 12, 1984477,700149,700
MexicoJanuary 1, 1983December 31, 19853,410,6253,310,315
PakistanDecember 2, 1981November 23, 1983919,000284,000
PeruJune 7, 1982June 6, 1985650,000550,000
15,561,00011,461,553
Totals25,025,47516,405,128

Special Drawing Rights Department

Balance Sheet

as at April 30, 1983

(In thousands of SDRs)

19831982
Allocations
Net cumulative allocations of special drawing rights to participants21,433,33021,433,330
Charges due but not paid (Note 1)25,58015,420
21,458,91021,448,750
Holdings
Participants
With holdings above allocations
Allocations5,519,3495,195,459
Net receipt of SDRs3,345,9881,995,336
8,865,3377,190,795
With holdings below allocations
Allocations15,913,98216,237,871
Net use of SDRs7,671,7777,440,255
8,242,2058,797,616
Total holdings by participants17,107,54215,988,411
General Resources Account4,334,9095,456,084
Prescribed holders16,4594,255
21,458,91021,448,750
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ David Williams/s/ J. de Larosière
Acting TreasurerManaging Director

Statement of Source and Use of Special Drawing Rights

as at April 30, 1983

(In thousands of SDRs)

ParticipantsGeneral

Resources

Account
Prescribed

Holders
Total
19831982
Total holdings at beginning of year15,988,4115,456,0844,25521,448,75021,433,330
Receipt of SDRs
Transfers among participants and prescribed holders
Transactions with designation2,713,4412,713,4411,874,681
Transactions by agreement1,223,16358,2651,281,4281,242,038
Operations
Loans121,322121,32224,309
Settlement of financial obligations206,99668,094275,090133,309
Net interest on SDRs270,8921,625272,517245,365
Transfers from participants to General
Resources Account
Repurchases565,880565,880838,081
Charges1,496,6191,496,619968,483
Quota payments83,36883,368266,010
Interest on SDRs444,258444,258657,244
Assessments on SDR allocations2,4942,4942,095
Adjustment of underpayment of interest1
Transfers from General Resources Account to
participants and prescribed holders
Purchases2,418,5762,418,5762,035,221
Repayments of Fund borrowings28,27928,279143,989
Interest on Fund borrowings212,70911,055223,764143,186
Refunds and adjustments20,09920,09923,237
In exchange for currencies of other members
Acquisitions for net charges (Special
Drawing Rights Department)35,83535,8352,921
Acquisitions to pay charges (General Resources
Account)126,628126,62824,062
Remuneration860,614860,614348,221
8,238,5542,592,619139,03910,970,2128,972,453
Use of SDRs
Transfers among participants and prescribed holders
Transactions with designation2,713,4412,713,4411,874,681
Transactions by agreement1,226,59654,8321,281,4281,242,038
Operations
Loans53,00068,323121,32324,309
Settlement of financial obligations271,4103,680275,090133,309
Transfers from participants to General
Resources Account
Repurchases565,880565,880838,081
Charges1,496,6191,496,619968,483
Quota payments83,36883,368266,010
Assessments on SDR allocations2,4942,4942,095
Transfers from General Resources Account to
participants and prescribed holders
Purchases2,418,5762,418,5762,035,221
Repayments of Fund borrowings28,27928,279143,989
Interest on Fund borrowings223,763223,763143,186
Refunds and adjustments20,09920,09923,237
In exchange for currencies of other members
Acquisitions for net charges (Special Drawing
Rights Department)35,83535,8352,921
Acquisitions to pay charges (General
Resources Account)126,628126,62824,062
Remuneration860,614860,614348,221
Charges in the Special Drawing Rights Department
Net charges due716,775716,775902,609
Charges due but not paid–25.580–25,580–15,420
Settlement of unpaid charges15,42015,420
Return of excess interest received1
7,119,4233,713,794126,83510,960,0528,957,033
Total holdings at end of financial year17,107,5424,334,90916,45921,458,91021,448,750
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

Notes to the Financial Statements

Special Drawing Rights Department

All transactions and operations involving SDRs are conducted through the Special Drawing Rights Department. SDRs do not constitute claims by holders against the Fund to provide currency, except in connection with the termination of participation or liquidation. SDRs are allocated by the Fund to members that are participants in the Special Drawing Rights Department in proportion to their quotas in the Fund. Three allocations were made, in 1970, 1971, and 1972, aggregating SDR 9.3 billion. Three further allocations were made, in 1979, 1980, and 1981, aggregating SDR 12.1 billion. The Fund is empowered to prescribe certain official entities as holders of SDRs; to date, 13 institutions have been prescribed as holders. These prescribed holders do not receive allocations and cannot use or receive SDRs in designation.

Uses of SDRs

Participants and prescribed holders can use and receive SDRs in transactions and operations by agreement among themselves. Participants can also use SDRs in operations involving the General Resources Account, such as the payment of charges and repurchases. In addition, the Fund ensures, by designating participants to provide freely usable currency in exchange for SDRs, that a participant can use its SDRs to obtain such currency if it has need because of its balance of payments or its reserve position or developments in its reserves. A participant is not obliged to provide currency for SDRs beyond the point at which its holdings of SDRs in excess of its net cumulative allocation are equal to twice its net cumulative allocation. A participant may, however, provide currency in excess of the obligatory limit or any agreed higher limit.

Interest, Charges, and Assessment

Interest is paid to each holder on its holdings of SDRs and charges are levied at the same rate on each participant’s net cumulative allocation plus any negative balance of the participant or unpaid charges. Interest and charges are settled by crediting and debiting individual holdings accounts on April 30 each year. The Fund is required to pay interest to each holder, whether or not sufficient SDRs are received in payment of charges. The expenses of conducting the business of the Special Drawing Rights Department are paid by the Fund from the General Resources Account which is reimbursed in SDRs at the end of each financial year. For this purpose, the Fund levies an assessment, at the same rate for all participants, on their net cumulative allocations.

Suspension of Right to Use SDRs

On December 19, 1978 the Executive Board suspended the right of Democratic Kampuchea to use SDRs acquired after the date of the suspension because the Fund found that Democratic Kampuchea had failed to meet certain obligations in the Special Drawing Rights Department.

1. Charges Due but not Paid

Charges due but not paid represent the amount of unpaid charges by Comoros, Equatorial Guinea, Grenada, Guinea, Guinea-Bissau, Jamaica, Lao People’s Democratic Republic, Liberia, St. Lucia, Senegal, Viet Nam, and Zaïre for the financial year ended April 30, 1983. Under Article XX, Section 1, the Fund is required to pay interest to each holder, whether or not sufficient SDRs are received in payment of charges. The total of SDRs held by all holders on April 30, 1983 exceeds the total of net cumulative allocations to the extent of these unpaid charges. At June 15, 1983 charges due from three participants amounting to SDR 0.9 million remained outstanding.

Subsidy Account

Statement of Financial Position

Changes during year and Position as at April 30, 1983

(In thousands of SDRs)

(Note 1)

19831982
Balance at beginning of year20,32962,090
Contributions received (Note 1)3813,477
Interest earned on investments1,7232,730
2,1046,207
Valuation gain4622,083
2,5668,290
22,89570,380
Less: Subsidy payments (Note 2)9,34050,051
Balance at end of year13,55520,329
Balance represented by:
Currency on deposit41372
Investments in United States Government obligations, at cost (market value: SDR 13,733—1983; SDR 19,227—1982)12,69319,224
Accrued interest receivable821733
Total assets13,55520,329
The accompanying notes are an integral part of the financial statement.
The accompanying notes are an integral part of the financial statement.
/s/ David Williams/s/ J. de Larosière
Acting TreasurerManaging Director

Notes to the Financial Statement

Purpose

The Subsidy Account, which is administered by the Fund, was established to assist the most seriously affected members to meet the interest cost of using resources made available through the Fund’s oil facility for 1975. The assets of the Subsidy Account are separate from the assets of all other accounts of the Fund and are not used to discharge liabilities or to meet losses incurred in the administration of other accounts.

1. Accounting Practices

Unit of Account

The accounts of the Subsidy Account are expressed in terms of the SDR, the currency value of which is determined daily by the Fund, at present, by summing the values in U.S. dollars, based on market exchange rates, of a basket of five specified currencies, as follows:

CurrenciesAmount
U.S. dollar0.54
Deutsche mark0.46
French franc0.74
Japanese yen34
Pound sterling0.071

Basis of Accounting

The accounts are maintained on an accrual basis and, accordingly, income is recognized as it is earned. It is the practice of the Fund to make all calculations on the basis of the exact number of days in the calendar year.

Contributions

Contributions to the Subsidy Account are made in currencies which are valued in terms of the SDR on the basis of exchange rates against the SDR at the time of receipt.

2. Subsidy Payments

The rate of subsidy for the financial years ended April 30, 1976 through 1982 and for the period from May 1, 1982 to May 11, 1983—the latter being the date by which the last outstanding balances from purchases under the 1975 oil facility are scheduled to be fully repurchased—was set by the Fund at 5 per cent per annum of the average daily balances in each year of the Fund’s holdings of recipient members’ currencies subject to the schedule of charges applicable to the 1975 oil facility. Subsidy payments are made in U.S. dollars at the SDR/US$ rate determined for the date of payment. Subsidy payments for the period from May 1, 1982 to May 11, 1983 amounted to SDR 2.5 million and were made on June 15, 1983. A decision on the disposition of the remaining assets of the Subsidy Account will be taken by the Fund at a later date.

Supplementary Financing Facility Subsidy Account

Balance Sheet

as at April 30, 1983

(In thousands of SDRs)

(Note 1)

Assets19831982
Currency7318
Interest-earning deposits31,49830,890
Accrued income1,1041,536
Total32,67532,444
Resources and Liability
Resources—Account balance28,07529,183
Borrowing (Note 2)4,6003,261
Total32,67532,444
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ David Williams/s/ J. de Larosière
Acting TreasurerManaging Director

Statement of Changes in Resources

for the year ended April 30, 1983

(In thousands of SDRs)

(Note 1)

19831982
Balance at beginning of year29,183
Transfers from Special Disbursement Account33,80814,991
Contributions (Note 1)6,86234,265
Investment income2,5482,785
Exchange valuation gain (loss)(56)63
Balance before subsidy payments72,34552,104
Subsidy payments (Note 3)44,27022,921
Balance at end of year28,07529,183
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

Notes to the Financial Statements

Purpose

The Supplementary Financing Facility Subsidy Account, which is administered by the Fund, was established in December 1980 to assist the low-income developing members to meet the cost of using resources made available through the Fund’s supplementary financing facility and under the policy on exceptional use. The assets of the Supplementary Financing Facility Subsidy Account are separate from the assets of all other accounts of the Fund and are not used to discharge liabilities or to meet losses incurred in the administration of other accounts. The Supplementary Financing Facility Subsidy Account became operational in May 1981 and the first subsidy payments were made in December of that year. The resources of the Account arise from contributions and loans from members, interest income earned on investments, and transfers of amounts received in interest and loan repayments from the Trust Fund through the Special Disbursement Account.

1. Accounting Practices

Unit of Account

The accounts of the Supplementary Financing Facility Subsidy Account are expressed in terms of the SDR, the currency value of which is determined daily by the Fund, at present, by summing the values in U.S. dollars, based on market exchange rates, of a basket of five specified currencies, as follows:

CurrenciesAmount
U.S. dollar0.54
Deutsche mark0.46
French franc0.74
Japanese yen34
Pound sterling0.071

Basis of Accounting

The accounts are maintained on an accrual basis and, accordingly, income is recognized as it is earned and expenses are recorded as they are incurred. It is the practice of the Fund to make all calculations on the basis of the exact number of days in the financial year.

Contributions

Contributions to the Supplementary Financing Facility Subsidy Account are made in currencies which are valued in terms of SDRs on the basis of exchange rates against the SDR at the time of receipt. Cumulative contributions to the Supplementary Financing Facility Subsidy Account at April 30, 1983 amounted to SDR 41.13 million.

2. Borrowing

Certain members have made loans to the International Monetary Fund in its capacity as trustee of the Supplementary Financing Facility Subsidy Account. These loans, which are without interest, are to be repaid on December 31, 1984.

3. Subsidy Payments

The amount of the subsidy is calculated as a percentage per annum of the average daily balances in each year of the Fund’s holdings of recipient members’ currencies subject to the schedule of charges applicable to the supplementary financing facility and the policy on exceptional use. The rate of subsidy to be paid is determined by the Fund in the light of the resources available and the subsidy may not exceed the equivalent of 3 per cent per annum of the currency holdings to which the supplementary financing facility and exceptional use charges apply nor reduce the effective charge on such holdings below the rate of charge which would have been applicable had they been acquired under the Fund’s policies on the regular use of its resources.

Trust Fund

Balance Sheet

as at April 30, 1983

(In thousands of SDRs)

(Note 1)

19831982
Assets
Loans (Note 2)2,972,8862,991,335
Accrued interest on loans4,8944,917
Investments, at cost (and approximate market value)3,7243,600
Accrued interest on investments11147
Total2,981,6152,999,899
Trust Resources and Liabilities
Trust resources2,975,5892,994,030
Liabilities—
Undistributed profits from sale of gold (Note 3)3,6903,533
Borrowing (Note 4)2,3322,332
Accrued interest on borrowing44
Total2,981,6152,999,899
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ David Williams/s/ J. de Larosière
Acting TreasurerManaging Director

Statement of Income and Expense

for the year ended April 30, 1983

(In thousands of SDRs)

(Note 1)

19831982
Income:
Interest income on loans14,92714,957
Investment income447547
Exchange valuation gain510
15,37915,514
Less—Interest expense on borrowing (Note 4)1212
Net income15,36715,502
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

Statement of Changes in Trust Resources

for the year ended April 30, 1983

(In thousands of SDRs)

(Note 1)

19831982
Balance, beginning of year2,994,0302,993,518
Net income for the year15,36715,502
Balance before transfers to the Special Disbursement Account3,009,3973,009,020
Transfers to the Special Disbursement Account (Note 5)33,80814,990
Balance, end of year2,975,5892,994,030
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

Notes to the Financial Statements

Purpose

The Trust, which is administered by the Fund as Trustee, was established in 1976 to provide balance of payments assistance on concessional terms to eligible members that qualify for assistance. The resources of the Trust are separate from the assets of all other accounts of the Fund and are not used to discharge liabilities or to meet losses incurred in the administration of other accounts.

1. Accounting Practices

Unit of Account

The accounts of the Trust Fund are expressed in terms of the SDR, the currency value of which is determined daily by the Fund, at present, by summing the values in U.S. dollars, based on market exchange rates, of a basket of five specified currencies, as follows:

CurrenciesAmount
U.S. dollar0.54
Deutsche mark0.46
French franc0.74
Japanese yen34
Pound sterling0.071

Basis of Accounting

The accounts are maintained on an accrual basis and, accordingly, income is recognized as it is earned and expenses are recorded as they are incurred. The expenses of conducting the business of the Trust Fund that are paid from the General Department of the IMF are reimbursed by the Trust Fund on the basis of an estimate of these expenses by the IMF. Following the termination of the Trust Fund on April 30, 1981, residual administrative costs have been absorbed by the General Department. It is the practice of the Fund to make all calculations on the basis of the exact number of days in the accounting year.

Valuation Adjustments

Valuation adjustments arising from changes in the SDR rate of currencies held by the Trust Fund are charged to net income.

2. Loans

Loans were made from the Trust Fund to those eligible members that qualified for assistance in accordance with the provisions of the Trust Instrument. The final loan disbursements were made on March 31, 1981. Each loan disbursement is repayable in ten semiannual installments which shall begin not later than the end of the first six months of the sixth year, and be completed at the end of the tenth year, after the date of disbursement, except that most of the final loan disbursements made to members on March 31, 1981 that amounted to about 0.4 per cent of quotas are to be repaid in a single installment not later than ten years after the date of that disbursement. Interest on the outstanding loan balances is charged at the rate of ½ of 1 per cent per annum.

3. Direct Distribution of Profits

The International Monetary Fund decided that the Trustee make, through the Trust Fund, the direct distribution of part of the profits from the sale of gold for the benefit of developing members. The share of each developing member in this direct distribution of profits is calculated on the basis of its share in total IMF quotas as at August 31, 1975 and on the basis of the actual profits realized in the gold auctions.

The direct distribution of profits has been completed, except that an amount of US$3,990,776 representing the share of Democratic Kampuchea will continue to be held in the Trust Fund until relations with that member have been restored.

4. Borrowing

One beneficiary of the direct distribution of profits from the Trust Fund has lent a part of its entitlements to the Trust Fund. The amounts borrowed by the Trust Fund are repayable in ten semiannual installments beginning not later than the end of the first six months of the sixth year after the date of borrowing. Interest on the amounts outstanding is paid at the same rate as interest is charged on Trust Fund loans, provided that the rate shall not be less than ½ of 1 per cent per annum.

5. Termination and Transfer of Resources

The Fund, as Trustee, decided that upon the completion of the final loan disbursements, the Trust Fund shall be terminated as of April 30, 1981. After that date, the activities of the Trust Fund shall be confined to the completion of any unfinished business of the Trust Fund and the winding up of its affairs.

The resources of the Trust Fund held on the termination date or subsequently received by the Trustee will be employed first to satisfy current administrative expenses, second to pay interest and principal as it falls due on loan obligations, and third to make transfers to the Special Disbursement Account, the first SDR 750 million of which will flow through to the Supplementary Financing Facility Subsidy Account. At April 30, 1983 SDR 48.80 million (SDR 14.99 million at April 30, 1982) had been transferred through the Special Disbursement Account to the Supplementary Financing Facility Subsidy Account.

Report of the External Audit Committee

Staff Retirement Plan

Washington, D.C.

July 1, 1983

Authority and Scope of the Audit

In accordance with Section 20(b) of the By-Laws of the International Monetary Fund we have audited the financial statements of the Staff Retirement Plan for the year ended April 30, 1983, which consist of statements of

  • —Accumulated plan benefits and net assets available for benefits,
  • —Changes in accumulated plan benefits, and
  • —Changes in net assets available for benefits.

The audit was conducted in accordance with international auditing guidelines and, accordingly, included reviews of accounting and control systems, tests of accounting records, evaluation of the extent and results of work performed by the Internal Auditor, and other audit procedures.

Audit Opinion

In our opinion, the financial statements have been prepared in accordance with generally accepted accounting principles, applied on a basis consistent with that of the preceding year, and give a true and fair view of the financial position of the Staff Retirement Plan as at April 30, 1983 and of the financial results of operations and transactions during that year.

External Audit Committee:

/s/ Gerardo Rueda-Rábago, Chairman (Mexico)

/s/ Walter Scholz (Germany)

/s/ David G. Njoroge (Kenya)

Statement of Accumulated Plan Benefits and Net Assets Available for Benefits

as at April 30, 1983

(In thousands of U.S. dollars)

19831982
Accumulated Plan benefits (Note 1):
Actuarial present value of accumulated Plan benefits
Vested benefits
Retired participants111,00097,600
Other participants89,50086,600
Nonvested benefits38,20027,500
Total actuarial present value of accumulated Plan benefits238,700211,700
Net assets available for benefits:
Investments, at current value (Note 1)
Portfolio managed within the United States316,755212,631
Portfolio managed outside the United States48,37726,115
365,132238,746
Receivables:
Contributions596523
Accrued interest and dividends (Note 1)3,6101,984
Other1
4,2062,508
Cash on deposit1357
Total assets369,351241,311
Liabilities:
Accounts payable804377
Net assets available for benefits368,547240,934
Excess of net assets available for benefits over actuarial present value of accumulated Plan benefits129,84729,234
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ David Williams/s/ J. de Larosière
Acting TreasurerManaging Director

Statement of Changes in Accumulated Plan Benefits

for the year ended April 30, 1983

(In thousands of U.S. dollars)

19831982
Actuarial present value of accumulated Plan benefits at beginning of year211,700175,300
Increase (decrease) during the year attributable to:
Benefits accumulated37,85845,436
Benefits paid(10,858)(9,036)
Net increase27,00036,400
Actuarial present value of accumulated Plan benefits at end of year (Note 1)238,700211,700
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

Statement of Changes in Net Assets Available for Benefits

for the year ended April 30, 1983

(In thousands of U.S. dollars)

19831982
Investment income (Note 1):
Net appreciation (depreciation) in current value of investments (Note 3)80,460(18,745)
Interest12,5619,780
Dividends7,7266,575
100,747(2,390)
Contributions (Note 2):
International Monetary Fund30,51528,945
Participants7,3787,082
Participants restored to service2842
Net transfers from (to) retirement plans of other international organizations(197)259
37,72436,328
Total additions138,47133,938
Benefits:
Pensions8,9177,842
Withdrawal benefits925715
Commutation benefits751444
Death benefits26535
Total payments10,8589,036
Net additions127,61324,902
Net assets available for benefits at:
Beginning of year240,934216,032
End of year368,547240,934
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

Notes to the Financial Statements

Description of Plan

General

The Staff Retirement Plan (Plan) is a defined benefit pension plan covering nearly all staff members of the International Monetary Fund (employer). All assets and income of the Plan are the property of the employer and are held and administered by it separately from all its other property and assets and are to be used solely for the benefit of participants and retired participants or their beneficiaries. The account is valued in U.S. dollars.

Benefits

Participants are entitled to an annual pension beginning at normal retirement age (65). The amount of the pension is based on number of years of service and highest average gross remuneration. Participants who have reached the age of 55 may retire with a reduced pension (or with an unreduced pension if the sum of their age and years of service equals 90 or more). The Plan also provides for disability retirement and death benefits to a surviving spouse and minor children. Upon termination before age 55 a participant with at least three years of eligible service may elect to receive either a withdrawal benefit (accumulated contributions of the participant plus an amount equal to a percentage of such accumulated contributions, the percentage being based on number of months of eligible service) or a deferred pension to commence after the participant has reached the age of 55. A participant entitled to receive a normal, early retirement, or deferred pension may elect to commute up to one third of his or her pension, and receive a lump sum amount in lieu of the amount of pension commuted. A participant entitled to receive a disability pension may elect to commute one third of the early retirement pension that would otherwise have been applicable.

Contributions

As a condition of participation, regular staff members are required to participate in the Plan and to contribute 7 per cent of their gross remuneration to the Plan. Certain other categories of staff members may elect to participate in the Plan. The employer meets the administrative costs of the Plan, such as actuarial, management, and custodial fees, and is to contribute any additional amounts not provided by the contributions of participants to pay costs and expenses of the Plan not otherwise covered. In 1983, the administrative costs for actuarial, management, and custodial fees were approximately $1.1 million.

1. Accounting Practices

Valuation of Investments

Investments in securities listed in stock exchanges are valued at the last reported sales price on the last business day of the accounting period. Over-the-counter securities are valued at their bid price on the last business day of the year. Purchases and sales made by U.S. investment managers are recorded on the settlement date basis and transactions made by the non-U.S. investment manager are recorded on the trade date basis.

Accumulated Benefits—Vested and Nonvested

The actuarial value of vested benefits is shown for two categories. For retired participants, the amount shown equals the present value of the benefits expected to be paid over the future lifetime of the pensioner, and, if applicable, the surviving spouse of the pensioner. For other participants, the amount shown equals the present value of the deferred pension earned to the valuation date for a participant, or, if greater, the value of the withdrawal benefit for that participant, summed over all participants. For the purpose of determining the actuarial value of the vested benefits at the end of the Plan year, it is assumed that the Plan will continue to exist but that participants will not earn pension benefits beyond the date of the calculation.

The amount of nonvested benefits represents the total of the withdrawal benefits for all participants with less than three years of eligible service.

Other

Dividend and interest income from investments are recorded as earned.

2. Funding

The empoyer makes normal contributions to the Plan equal to 14 per cent of gross remuneration. Whenever the cost of living for a financial year increases, pensions shall be augmented by a pension supplement, which shall be the lesser of the increase in the cost of living for the financial year or 2 per cent. If the increase in the cost of living for a year exceeds 2 per cent, pensions shall be augmented by an additional supplement to be paid from contributions from the employer equal to the difference between 2 per cent and the increase in the cost of living. The employer has the right for good cause to reduce the additional supplement to not less than 1 per cent.

3. Investments

The net appreciation (depreciation) in the current value of investments for the periods ending April 30, 1983 and 1982 were as follows:

In thousands of U.S. dollars
19831982
Portfolio managed within the United States70,817(15,387)
Portfolio managed outside the United States:
—Net market appreciation (depreciation)11,698(2,197)
—Net exchange valuation loss(2,055)(1,161)
9,643(3,358)
Total appreciation (depreciation)80,460(18,745)

The net exchange loss was calculated by converting the book value of securities in currencies other than U.S. dollars to U.S. dollars at the exchange rates in effect at both the beginning and the end of the accounting period (or at the time a security was purchased or sold if this occurs during the accounting period) and subtracting one from the other to determine the exchange gain or loss.

There were no investments which represented 5 per cent or more of the net assets available for benefits.

4. Actuarial Valuation

The most recent valuation of the Plan by the actuary engaged by the Pension Committee was made as at April 30, 1982. Actuarial assumptions used in the valuation were (a) life expectancy of participants as based on the 1960 United Nations Service Tables, (b) certain percentages of staff, differing by sex, would retire at each age between 55 and 65, and (c) an assumed average rate of return on investments of 6 per cent per annum. The valuation method used is a projected benefit cost method. The purpose of the annual valuation is to determine, on the basis of the actuarial assumptions used, the level of additional employer contributions necessary to fund experience losses and cost of living increases beyond the first 2 per cent. It is further assumed that the Plan will continue to exist and that participants will continue to earn pension benefits beyond the date of the valuation until the date of withdrawal, disability, death, or retirement. This valuation therefore differs from that in which the actuarial value of vested benefits is determined (Note 1).

Experience gains and losses of the Plan, as determined by the actuary, are amortized over a period of 15 years. The most recent valuation (at April 30, 1982) showed an experience gain of $9.1 million for the year then ended. Unamortized experience losses amounted to $61.6 million at April 30, 1983, of which $7.5 million was paid by the employer on May 2, 1983.

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