Chapter

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

Author(s):
International Monetary Fund
Published Date:
September 1984
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Report of the External Audit Committee

Washington, D.C.

June 29, 1984

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, 1984, covering the

  • —General Department (including the General Resources Account, Borrowed Resources Suspense Accounts, and Special Disbursement Account),

  • —SDR 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 SDR 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, and give a true and fair view of the respective financial positions and the allocations and holdings of SDRs as at April 30, 1984, and of the financial results of operations and transactions during that year.

External Audit Committee:

/s/ Walter Scholz, Chairman (Germany)

/s/ M. Ijadur Rahman (Bangladesh)

/s/ Abdelmalek Ouenniche (Morocco)

International Monetary Fund General Department: Balance Sheet as at April 30, 1984

(In thousands of SDRs)

(Note 1)

19841983
Assets
Currencies and Securities (Notes 2 and 5)93,574,68164,064,554
SDR Holdings (Note 3)6,436,7304,334,909
Gold Holdings(Note 4)3,620,3963,620,396
Borrowed Resources Held in Suspense601,6421,780,609
Charges Receivable and Accrued (Note 5)786,931505,334
Accrued Interest on SDR Holdings224,704
Other Assets20,87313,231
Total Assets105,265,95774,319,033
Quotas, Reserves, and Liabilities
Quotas
Subscriptions of Members89,236,30061,059,800
Reserves (Note 6)1,073,7741,000,715
Liabilities
Borrowing (Note 7)13,791,22910,952,479
Remuneration Payable (Note 5)667,752981,121
Accrued Interest Payable (Note 7)435,258268,868
Other Liabilities and Deferred Credits (Note 5)61,64456,050
Total Quotas, Reserves, and Liabilities105,265,95774,319,033
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/ W. O. Habermeier/s/ J. DE Larosière
TreasurerManaging Director
International Monetary Fund General Department: Statement of Income and Expense for the year ended April 30, 1984

(In thousands of SDRS)

(Note 1)

19841983
Operational Income
Periodic charges (Note 5)2,363,8011,545,412
Interest on SDR holdings371,631444,258
Service charges50,82051,291
Other5,7444,336
2,791,9962,045,297
Operational Expense
Remuneration (Note 5)1,286,320981,121
Interest on borrowing, net of income from temporary investments held in Borrowed
Resources Suspense Accounts (SDR 117.015 in 1984 and SDR 27.513 in 1983)1,239,845807,383
Other11
2,526,1761,788,504
Net Operational Income265,820256,793
Administrative Expense (Note 9)
Personnel132,549122,208
Travel23,14021,750
Other, net33,20320,930
Fixed property (Note 1)3,86915,480
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 Expense192,761191,398
Net Income73,05965,395
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.
International Monetary Fund General Department: Statement of Changes in Reserves for the year ended April 30, 1984

(In thousands of SDRs)

(Note 1)

19841983
Special Reserve (Note 6)
Balance at beginning of the year635,135569,740
Net income for the year73,05965,395
Balance at end of the year708,194635,135
General Reserve (Note 6)
Balance at beginning and end of the year365,580365,580
Total Reserves1,073,7741,000,715
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.

International Monetary Fund General Department

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, 1984. 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 is 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. A member’s quota cannot be increased until it consents to the increase and pays the subscription in full. In March 1983, the Board of Governors of the Fund authorized an increase in quotas from their then current levels to approximately SDR 90 billion. Twenty-five percent of the quota increases were to be paid in SDRs or in the currencies of other members prescribed by the Fund, subject to their concurrence. Members had until March 15, 1984 to consent to the proposed increase. 142 members having 98 percent of quotas on March 31, 1983 consented to the proposed quota increases and have completed increased quota payments amounting to SDR 28.18 billion.

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 the member 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 percent 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 0 to 25 percent of quota. Subsequent purchases are made in three successive tranches, each equal to 25 percent of quota, to a level of no more than 100 percent 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 conditionality 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 resources available under stand-by and extended arrangements, 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 in the upper credit tranches.

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 purchase 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. Reserve tranche purchases made after April 1, 1978 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 of purchases financed with borrowed resources under the supplementary financing facility or 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 (other than purchases financed with borrowed resources under the supplementary financing facility or policy on enlarged access) 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, 1984 borrowed resources held in suspense amounted to SDR 601.64 million (SDR 1,780.61 million at April 30, 1983) and included accrued income of SDR 5.01 million (SDR 3.37 million at April 30, 1983).

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 resources received by the Trust Fund after April 30, 1981 are 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, 1984 SDR 174.92 million (SDR 48.80 million at April 30, 1983) 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, 1984 and 1983.

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 accounts 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, 1984, the cost of property, furniture, and equipment charged as an expense amounted to SDR 7.05 million (SDR 20.60 million in 1983).

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 percent 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, 1984 were as follows:

In millions of SDRs
April 30,

1983
April 30,

1984
Net

Change
Members’ quotas61,06089,23628,176
Members’ use of Fund credit23,59031,7428,152
Members’ reserve tranche positions(20,592)(27,415)(6,823)
Administrative currency balances7125
Currencies and securities64,06593,57529,510

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, 1984 accounts receivable to maintain SDR values of currency holdings amounted to SDR 12,542.42 million and accounts payable amounted to SDR 728.95 million. At June 25, 1984 the amounts receivable were SDR 1,716.25 million and amounts payable were SDR 523.26 million.

The Fund’s holdings of members’ currencies at April 30, 1984 are shown in Schedule 1.

3. SDR Holdings

SDRs are reserve assets created by the Fund and allocated to members participating in the SDR 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, 1984 the Fund held 3,217,341 kilograms of gold at designated depositories.

5. Fund Operations

For the year ended April 30, 1984, members’ purchases amounted to SDR 11,518 million, of which SDR 1,354 million were reserve tranche purchases. Over the same period, repurchases by members totaled SDR 2,015 million, including repurchases of SDR 3 million relating to purchases made prior to the Second Amendment and attributed to the reserve tranche. The members’ purchases subject to repurchase are shown in Schedule 2.

Changes in the outstanding use of Fund credit under various facilities for the year ended April 30, 1984, were as follows:

In millions of SDRs
April 30,

1983
PurchasesRepurchasesApril 30,

1984
Regular facilities4,7211,4689925,197
Compensatory

financing
6,8371,1807137,304
Buffer stock financing30710234375
Extended Fund

facility
3,3172,295445,568
Oil facility2727
Supplementary

financing facility
6,0391,0832026,920
Enlarged access2,3424,0366,378
Total23,59010,1642,01231,742

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.

The Fund pays remuneration on a member’s remunerated reserve tranche position. A remunerated reserve tranche position is the amount by which the Fund’s holdings of a member’s currency (excluding holdings that derive from use of the Fund’s credit) is below the “norm.” The “norm” is an amount equal to 75 percent of the member’s quota on April 1, 1978 plus the total of subsequent increases in the member’s quota. For members that joined the Fund after April 1, 1978, the “norm” is determined by adding the proportion of the member’s quota equal to the average of the “norm” of all other members on the date the member joined the Fund and the total of subsequent quota increases in the member’s quota.

At April 30, 1984, the total holdings on which the Fund levied charges amounted to SDR 31,742 million (SDR 23,590 million in 1983) and total creditor positions on which the Fund paid remuneration amounted to SDR 21,200 million (SDR 14,997 million in 1983).

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, 1984, purchases by Democratic Kampuchea to be repurchased amounted to SDR 18.74 million and unpaid charges receivable from Democratic Kampuchea amounted to SDR 6.38 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, 1984 was placed to the Special Reserve.

7. Borrowing

Outstanding borrowing by the Fund was as follows:

In millions of SDRs
April 30,

1983
BorrowingRepaymentApril 30,

1984
Oil facility1818
Supplementary

financing facility
6,0371,0832056,915
Enlarged access4,1202,855996,876
General Arrangements

to Borrow
777777
10,9523,9381,09913,791

Scheduled repayments of outstanding borrowing by the Fund are shown in Schedule 3.

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 were under the 1975 borrowing agreements and carried an interest rate of 7¼ percent. Calls made by the Fund under these agreements were repayable in installments beginning not later than three and one-half years, and to be completed not later than seven years, after the dates of the calls. The last repayment of borrowing under the oil facility was made in 1983.

Supplementary Financing Facility

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 between 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

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 15,305 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)

Under the General Arrangements to Borrow the Fund may borrow up to specified amounts from adherents when supplementary resources are needed to forestall or to cope with an impairment of the international monetary system. The GAB first became effective from October 24, 1962 and has been renewed until October 23, 1985.

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 arrangements with nonparticipants (SDR 1.5 billion). 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, including one associated agreement with the Saudi Arabian Monetary Authority (SDR 1.5 billion), became effective on December 26, 1983 when all ten participants had notified the Fund of their concurrence in the amendments and in the increased credit limits. The Swiss National Bank adhered to these arrangements in April 1984.

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 percent of the total of Fund quotas. Since all GAB lines of credit are unlikely to be called upon at the same time, the total of outstanding borrowing shall include either outstanding borrowing by the Fund under the GAB, or two thirds of the total credit lines under the GAB and associated agreements, whichever is the greater. The borrowing guidelines are subject to review by the Executive Board. Following the increase in quotas, total outstanding borrowing and unused credit lines, calculated in accordance with these guidelines, at April 30, 1984 were equal to 38.6 percent of quotas (33.1 percent of quotas at April 30, 1983).

8. Commitments Under Stand-By and Extended Arrangements

At April 30, 1984, thirty-five arrangements were in effect and undrawn balances under these arrangements amounted to SDR 9,269.48 million. These arrangements are listed in Schedule 4.

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. Expenses for building are authorized outside of the annual administrative budget. The Fund is reimbursed for expenses incurred in administering the SDR 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, 1984 amounted to SDR 60.3 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 78.5 million (at the April 30, 1984 SDR/US$ rate), of which SDR 7.7 million was paid on May 1, 1984.

Contributions by the employer to the Staff Retirement Fund for the year ended April 30, 1984 amounted to SDR 27.5 million, including SDR 6.9 million for the amortization of actuarial experience losses (SDR 7.5 million in 1983) and SDR 4.5 million to fund cost of living supplements to beneficiaries (SDR 6.8 million in 1983).

The Fund staff is 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 the year ended April 30, 1983, the Fund accounted for these amounts of accumulated leave and earned termination grants only as they were paid. Since the year ended April 30, 1983, the Fund has elected to account for these amounts as an expense as they are earned.

Schedule 1International Monetary Fund General Department: Quotas, Fund’s Holdings of Currencies, Members’ Useof Fund Resources, and Reserve Tranche Positions as at April 30, 1984(In thousands of SDRs)
Fund’s Holdings of Currencies1Use of Fund ResourcesReserve Tranche Positions
QuotasTotalPercent of quota
Afghanistan86,70081,89694.54,806
Algeria623,100450,73972.3172,363
Antigua and Barbuda5,0005,000100.02
Argentina1,113,0002,233,626200.71,120,610
Australia1,619,2001,503,55792.9115,649
Austria775,600378,95048.9396,656
Bahamas66,40055,51983.610,882
Bahrain48,90027,24255.721,661
Bangladesh287,500677,554235.7412,44522,395
Barbados34,10071,639210.139,6912,152
Belgium2,080,4001,599,41476.9480,992
Belize9,50011,207118.03,6001,896
Benin31,30029,28193.62,024
Bhutan2,5001,93177.2570
Bolivia90,700170,248187.779,5274
Botswana22,10010,78848.811,319
Brazil1,461,3004,361,089298.42,899,720
Burma137,000212,813155.382,6876,877
Burundi42,70036,05484.42,7509,418
Cameroon92,70085,50992.27,196
Canada2,941,0002,397,52081.5543,516
Cape Verde4,5003,55078.9951
Central African Republic30,40054,880180.524,568111
Chad30,60034,243111.97,1003,464
Chile440,5001,019,502231.4579,000
China2,390,9002,209,16992.4181,734
Colombia394,200394,205100.0
Comoros4,5004,25094.4251
Congo37,30034,33392.02,982
Costa Rica84,100264,204314.2180,082
Cyprus69,70069,27099.44,2364,675
Denmark711,000509,44171.7201,563
Djibouti8,0006,76584.61,237
Dominica4,00015,235380.911,2372
Dominican Republic112,100343,602306.5231,500
Ecuador150,700342,829227.5203,52511,425
Egypt463,400512,716110.649,311
El Salvador89,000201,875226.8112,873
Equatorial Guinea18,40031,509171.213,100
Ethiopia70,600165,114233.994,500
Fiji36,50042,216115.713,5007,789
Finland574,900451,94178.6122,961
France4,482,8003,190,99771.21,292,521
Gabon73,10066,98891.69127,028
Gambia, The17,10046,191270.129,11339
Germany, Federal Republic of5,403,7002,594,34548.02,809,382
Ghana204,500515,804252.2311,3001
Greece399,900313,73078.586,172
Grenada6,00011,427190.45,425
Guatemala108,000260,981241.6152,975
Guinea57,90069,410119.911,500
Guinea-Bissau7,5009,350124.71,8502
Guyana49,200122,947249.973,745
Haiti44,100130,206295.386,15070
Honduras67,800207,793306.5139,991
Hungary530,7001,166,280219.8674,50038,925
Iceland59,60077,084129.321,5004,025
India2,207,7005,820,309263.64,099,500486,911
Indonesia1,009,7001,362,380134.9425,10072,425
Iran, Islamic Republic of660,000589,23689.370,765
Iraq504,000504,008100.0
Ireland343,400229,24666.8114,155
Israel446,600446,605100.0
Italy2,909,1001,942,92266.8966,184
Ivory Coast165,500754,989456.2589,4882
Jamaica145,500728,542500.7582,976
Japan4,223,3002,820,55966.81,402,761
Jordan73,90066,68190.27,225
Kampuchea, Democratic25,00037,494150.012,5007
Kenya142,000512,110360.6380,34710,267
Korea462,8001,750,546378.31,287,741
Kuwait635,300294,51446.4340,791
Lao People’s Democratic Republic29,30041,675142.212,375
Lebanon78,70059,87076.118,831
Lesotho15,10013,85591.81,248
Liberia71,300275,353386.2204,041
Libyan Arab Jamahiriya515,700272,20252.8243,498
Luxembourg77,00064,79584.112,208
Madagascar Malawi66,400194,553293.0128,151
37,200133,506358.998,4922,189
Malaysia550,600706,354128.3315,078159,332
Maldives2,0001,99899.93
Mali50,80091,049179.248,9258,680
Malta45,10016,31236.228,820
Mauritania33,90070,137206.936,225
Mauritius53,600221,050412.4167,46313
Mexico1,165,5002,605,202223.51,504,68565,036
Morocco306,6001,285,414419.2978,81318
Nepal37,30039,474105.87,8685,693
Netherlands2,264,8001,446,69463.9818,112
New Zealand461,600433,14393.828,472
Nicaragua68,20081,499119.513,290
Niger33,70058,740174.333,6008,560
Nigeria849,500849,496100.05
Norway699,000287,15141.1411,850
Oman63,10032,62851.730,479
Pakistan546,3001,774,937324.91,317,18088,554
Panama102,200311,336304.6209,13514
Papua New Guinea65,900105,584160.245,0005,324
Paraguay48,40016,15833.432,249
Peru330,900945,319285.7635,61721,227
Philippines440,4001,271,876288.8832,7451,326
Portugal376,600771,342204.8424,40029,663
Qatar114,90077,71067.637,194
Romania523,4001,586,186303.11,062,781
Rwanda43,80034,16278.09,643
St. Lucia7,50010,050134.02,5502
St. Vincent4,0005,150128.71,500350
São Tomé and Principe4,0004,001100.0
Saudi Arabia3,202,4001,183,29137.02,019,111
Senegal85,100286,651336.8202,494946
Seychelles3,0003,001100.0
Sierra Leone57,900139,522241.081,6225
Singapore92,40023,88125.868,526
Solomon Islands5,0007,884157.73,360478
Somalia44,200150,329340.1106,117
South Africa915,7001,590,739173.7745,00069,966
Spain1,286,000964,49375.0321,509
Sri Lanka223,100564,883253.2347,7335,951
Sudan169,700776,228457.4606,524
Suriname49,30049,301100.0
Swaziland24,70032,980133.59,9751,698
Sweden1,064,300823,58577.4240,721
Syrian Arab Republic139,100139,103100.0
Tanzania107,000148,342138.641,325
Thailand386,6001,218,719315.2860,90828,792
Togo38,40076,756199.938,554206
Trinidad and Tobago170,10048,84428.7121,256
Tunisia138,200108,07278.230,129
Turkey429,1001,898,891442.51,502,06032,275
Uganda99,600447,953449.8351,8643,522
United Arab Emirates202,60089,27344.1113,329
United Kingdom6,194,0004,177,30967.42,016,711
United States17,918,3008,251,59746.19,676,933
Upper Volta31,60024,06776.27,535
Uruguay163,800381,160232.7226,8009,450
Vanuatu9,0007,42782.51,575
Venezuela1,371,500860,58062.7510,930
Viet Nam176,800205,195116.128,3955
Western Samoa6,00013,270221.27,268
Yemen Arab Republic43,30047,098108.89,7505,953
Yemen, People’s Democratic Republic of77,20092,576119.915,375
Yugoslavia613,0002,535,510413.61,922,503
Zaïre291,000843,904290.0552,900
Zambia270,300948,538350.9678,2437
Zimbabwe191,000461,669241.7270,69427
Totals89,236,30093,574,68131,741,55327,415,316

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 2International Monetary Fund General Department: Members’ Purchases Subject to Repurchase by Year of Scheduled Repurchase1 as at April 30, 1984(In thousands of SDRs)
Financial Years

Ending April 30
Credit

Tranches
Compensatory

Financing
Buffer

Stock
Extended

Facility
Total2
19851,443,9781,005,716279,4872,735,432
19861,890,3131,467,36726,932717,3634,101,975
19872,900,0662,597,815155,4301,309,4656,962,776
19883,263,0801,935,752161,8891,990,4707,351,191
19891,921,689297,25631,0942,107,8814,357,920
19901,082,6021,746,3502,828,952
1991494,9451,343,1461,838,091
1992760,382760,382
1993546,598546,598
1994303,904303,904
Totals12,996,6737,303,906375,34511,105,04631,787,2212

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 members’ purchases subject to repurchase exceeds the outstanding use of Fund credit by SDR 45.67 million because certain purchases made prior to the Second Amendment of the Articles of Agreement effective on April 1, 1978 which do not represent the extension of Fund credit must be repurchased in accordance with the repurchase terms then in effect.

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 members’ purchases subject to repurchase exceeds the outstanding use of Fund credit by SDR 45.67 million because certain purchases made prior to the Second Amendment of the Articles of Agreement effective on April 1, 1978 which do not represent the extension of Fund credit must be repurchased in accordance with the repurchase terms then in effect.

Schedule 3International Monetary Fund General Department: Scheduled Repayments of Fund Borrowing as at April 30, 1984(In thousands of SDRs)
Periods of Repayment1

Financial Years

Ending April 30
Supplementary

Financing

Facility
Enlarged

Access

Resources
Total
1985675,5041,141,39421,816,898
19861,200,856347,00021,547,856
19871,657,732890,0002,547,732
19881,585,7951,425,0003,010,795
19891,152,1451,425,0002,577,145
1990519,0151,113,0001,632,015
1991123,788535,000658,788
Totals6,914,8356,876,39413,791,229

Dates of repayment are the dates provided in the borrowing agreements between the Fund and lenders, including maximum periods of renewals which are at the Fund’s option. The borrowing agreements also permit earlier repayments in certain circumstances.

Includes short-term borrowing with original maturities not exceeding three years.

Dates of repayment are the dates provided in the borrowing agreements between the Fund and lenders, including maximum periods of renewals which are at the Fund’s option. The borrowing agreements also permit earlier repayments in certain circumstances.

Includes short-term borrowing with original maturities not exceeding three years.

Schedule 4International Monetary Fund General Department: Status of Stand-By Arrangements and Extended Arrangements as at April 30, 1984(In thousands of SDRS)
MemberDate of ArrangementExpirationTotal Amount Agreed1Undrawn Balance1
Stand-By Arrangements
BarbadosOctober 1, 1982May 31, 198431,8753,900
ChileJanuary 10, 1983January 9, 1985500,000216,000
EcuadorJuly 25, 1983July 24, 1984157,50039,375
Gambia, TheApril 23, 1984July 22, 198512,83010,200
GhanaAugust 3, 1983August 2, 1984238,50047,700
GuatemalaAugust 31, 1983December 31, 1984114,75057,375
HaitiNovember 7, 1983September 30, 198560,00039,000
HungaryJanuary 13, 1984January 12, 1985425,000297,500
KenyaMarch 21, 1983September 20, 1984175,95046,150
KoreaJuly 8, 1983March 31, 1985575,775319,775
LiberiaSeptember 14, 1983September 13, 198455,00013,000
MadagascarApril 10, 1984March 31, 198533,00030,000
MaliDecember 9, 1983May 31, 198540,50024,500
MauritiusMay 18, 1983August 17, 198449,50016,500
MoroccoSeptember 16, 1983March 15, 1985300,000170,000
NigerOctober 5, 1983December 4, 198418,0008,400
PanamaJune 24, 1983December 31, 1984150,00075,000
PeruApril 26, 1984July 31, 1985250,000250,000
PortugalOctober 7, 1983February 28, 1985445,000278,600
SenegalSeptember 19, 1983September 18, 198463,00015,750
Sierra LeoneFebruary 3, 1984February 2, 198550,20031,200
Solomon IslandsJune 22, 1983June 21, 19842,4001,440
Sri LankaSeptember 14, 1983July 31, 1984100,00050,000
TurkeyApril 4, 1984April 3, 1985225,000168,750
UgandaSeptember 16, 1983September 15, 198495,00030,000
UruguayApril 22, 1983April 21, 1985378,000226,800
Western SamoaJune 27, 1983June 26, 19843,375
YugoslaviaApril 18, 1983April 17, 1985370,000370,000
ZaïreDecember 27, 1983March 26, 1985228,000150,000
ZimbabweMarch 23, 1983September 22, 1984300,0003,111,915
5,448,1553,111,915
Extended Arrangements
BrazilMarch 1, 1983February 28, 19864,239,3752,618,500
Dominican RepublicJanuary 21 1983January 20, 1986371,250247,500
IndiaNovember 9, 1981November 8, 19845,000,0001,100,000
MalawiSeptember 19, 1983September 18, 1986100,00085,000
MexicoJanuary 1, 1983December 31, 19853,410,6252,106,565
13,121,2506,157,565
Totals18,569,4059,269,480

Details may not add to totals due to rounding.

Details may not add to totals due to rounding.

International Monetary Fund SDR Department: Statement of Allocations and Holdings as at April 30, 1984(In thousands of SDRs)
19841983
Allocations
Net cumulative allocations of SDRs to participants21,433,33021,433,330
Charges due but not paid (Note)1,03825,580
21,434,36821,458,910
Holdings
Participants
With holdings above allocations
Allocations8,424,7895,519,349
Net receipt of SDRs2,114,8233,345,988
10,539,6128,865,337
With holdings below allocations
Allocations13,008,54115,913,982
Net use of SDRs8,587,5857,671,777
4,420,9568,242,205
Total holdings by participants14,960,56817,107,542
General Resources Account6,436,7304,334,909
Prescribed holders37,07016,459
21,434,36821,458,910
The accompanying note is an integral part of the financial statements
The accompanying note is an integral part of the financial statements
/s/ W. O.Habermeier/s/ J. de Larosière
TreasurerManaging Director
International Monetary Fund SDR Department: Statement of Receipt and Use of SDRs for the year ended April 30, 1984(In thousands of SDRs)
ParticipantsGeneral

Resources

Account
Prescribed

Holders
Total
19841983
Total holdings at beginning of financial Year17,107,5424,334,90916,45921,458,91021,448,750
Receipt of SDRs
Transfers among participants and prescribed holders
Transactions with designation2,401,9882,401,9882,713,44188,919
Transactions with agreement3,086,24088,9193,175,1591,281,428
Operations
Loans623,9345,000628,934121,322
Settlement of financial obligations548,11017,355565,465275,090
Net interest on SDRs186,0621,783187,845272,517
Transfer’s from participants to General Resources Account
Repurchases391,706391,706565,880
Charges2,159,2312,159,2311,496,619
Quota payments6,194,7596,194,75983,368
Interest on SDRs146,926146,926444,258
Assessment on SDR allocation2,9742,9742,494
Transfers from General Resources Account to participants and prescribed holders
Purchases3,875,7943,875,7942,418,576
Repayments of Fund borrowing787,429787,42928,279
Interest on Fund borrowing201,659201,659223,764
Refunds and adjustments25,80725,80720,099
In exchange for currencies of other member
Acquisitions to pay charges329,739329,739162,463
Remuneration1,573,347______________1,573,347860,614
13,640,1098,895,596113,05722,648,76210,970,212
Use of SDRs
Transfers among participants and prescribed holders
Transactions with designation2,401,9892,401,9892,713,441
Transactions by agreement3,162,40912,7503,175,1591,281,428
Operations551,15077,784628,934121,322
Settlement of financial obligations563,5521,912565,464275,090
Transfers from participants to General Resources Account
Repurchases391,706391,706565,880
Charges2,159,2302,159,2301,496,619
Quota payments6,194,7596,194,75983,368
Assessment on SDR allocation2,9742,9742,494
Transfers from General Resources Account to participants and prescribed holders
Purchases3,875,7943,875,7942,418,576
Repayments of Fund borrowing787,429787,42928,279
Interest on Fund borrowing201,659201,659223,764
Refunds and adjustments25,80725,80720,099
In exchange for currencies of other members

Acquisitions to pay charges
329,739329,739162,463
Remuneration1,573,3471,573,347860,614
Charges in the SDR Department334,772334,772716,775
Net charges due
Charges not paid when due-12,709-12,709-25,580
Settlement of unnaid charges37,251__________________37,25115,420
Total uses15,787,0836,793,77502,44622,673,30410,960,052
Total holdings at end of financial year14,960,5686,436,73037,07021,434,36821,458,910
The accompanying note is an integral part of the financial statements.
The accompanying note is an integral part of the financial statements.

International Monetary Fund SDR Department Note to the Financial Statements

SDR Department

All transactions and operations involving SDRs are conducted through the SDR 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 SDR Department in proportion to their quotas in the Fund. Three allocations were made in 1970, 1971, and 1972, totaling SDR 9.3 billion. Three further allocations were made, in 1979, 1980, and 1981, totaling SDR 12.1 billion. The Fund is empowered to prescribe certain official entities as holders of SDRs: to date, 14 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 development 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 ration each participant’s net cumulative allocation plus any negative balance of the participants or unpaid charges. The SDR interest rate is determined by reference to a combined market interest rate, which is a weighted average of yields or rates on short-term instruments in the capital markets of France, the Federal Republic of Germany, Japan, the United Kingdom, and the United States. Effective August 1, 1983, the SDR interest rate is determined on a weekly basis rather than on a quarterly basis and interest on SDR holdings is paid and charges on net cumulative allocations are collected on a quarterly basis. Interest and charges accrued between May 1, 1983 and July 31, 1983, before the decision became effective, are payable on May 1, 1984. Interest and charges are settled by crediting and debiting individual holdings accounts on the first day of the subsequent quarter. The Fund is required to pay interest to each holder, whether or not sufficient SDRs are received in payment of charges. As of April 30, 1984 the amount of unpaid charges amounted to SDR 1,037,692, which represents the amount of net charges in the SDR Department by Viet Nam for the financial quarter ended January 31, 1984 that remained unpaid as of April 30, 1984.

The combined market interest rate used to determine the SDR interest rate is calculated each Friday, using the yields or rates of that day. The SDR interest rate, which is set equal to the combined market interest rate, enters into effect on the following Monday and applies until the end of the following Sunday.

The expenses of conducting the business of the SDR 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 allocation.

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 SDR Department.

International Monetary Fund Subsidy Account: Statement of Financial Position as at April 30, 1984

(In thousands of SDRs)

(Note 1)

May 1, 1983 to

April 30, 1984
Cumulative

August 1, 1975

to April 30, 1984
Balance at beginning of period13,555
Contributions received (Note 1)160,293
Interest earned on investments33024,032
330184,325
Valuation gain3412,439
671186,764
14,226186,764
Less: Subsidy payments (Notes 2 and 3)14,226186,764
Balance at end of period (Note 3)
The accompanying notes are an integral part of the financial statement.
The accompanying notes are an integral part of the financial statement.
/s/ W. O. Habermeier/s/ J. DE Larosière
TreasurerManaging Director

International Monetary Fund Subsidy Account: 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 or administered by 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 accounting period.

Contributions

Contributions to the 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.

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 were scheduled to be fully repurchased—was set by the Fund at 5 percent 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.

3. Termination

The balances remaining in the Subsidy Account, after completion of repurchases under the oil facility and payment of subsidies at a rate of 5 percent, were used for payment of an additional subsidy at a rate of 0.334 percent on the Fund’s holdings during the period May 1975 to May 1983 of currencies of members eligible to receive the subsidy. The final payment, which fully utilized the remaining resources of the Subsidy Account, amounted to SDR 11.7 million and was made after all charges due at the end of July 1983 in connection with the oil facility were paid. The Subsidy Account was terminated with the final payment on August 15, 1983.

International Monetary Fund Supplementary Financing Facility: Subsidy Account Balance Sheet as at April 30, 1984

(In thousands of SDRs)

(Note 1)

Assets19841983
Currencies1273
Interest-earning deposits(Note 2)98,37231,498
Accrued income2,2501,104
Total100,63432,675
Resources and Liabilities
Resources-Account balance96,03428,075
Borrowing(Note 3)4,6004,600
Total100,63432,675
The accompanying notes are an integral part of the financial statements
The accompanying notes are an integral part of the financial statements
/s/ W. O. Habermeier/s/ J. de Larosière
TreasurerManaging Director
International Monetary Fund Supplementary Financing Facility: Subsidy Account Statement of Changes in Resources for the year ended April 30, 1984

(In thousands of SDRs)

(Note 1)

19841983
Balance at beginning of year28,07529,183
Transfers from Special Disbursement Account126,11633,808
Contributions (Note 1)5,8806,862
Investment income4,3472,548
Exchange valuation gain (loss)79(56)
Balance before subsidy payments164,49772,345
Subsidy payments (Note 4)68,46344,270
Balance at end of year96,03428,075
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

International Monetary Fund Supplementary Financing Facility Subsidy Account: 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 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 or administered by 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 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 accounting period.

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, 1984 amounted to SDR 47.01 million.

2. Interest-Earning Deposits

To avoid exchange risks, the assets of the Account, pending their disbursement, are held in the form of interest-earning SDR-denominated time deposits.

3. Borrowing

Certain members have made loans to the 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.

4. 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 percent 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.

International Monetary Fund Trust Fund: Balance Sheet

as at April 30, 1984

(In thousands of SDRs)

(Note 1)

Assets
19841983
Loans (Note 2)2,861,9162,972,886
Accrued interest on loans4,7644,894
Investments, at cost (and approximate market value)3,8243,724
Accrued interest on investments134111
Total2,870,6382,981,615
Trust Resources and Liabilities
Trust resources2,864,4912,975,589
Liabilities—
Undistributed profits from sale of gold (Note 3)3,8113,690
Borrowing (Note 4)2,3322,332
Accrued interest on borrowing44
Total2,870,6382,981,615
The accompanying notes are an integral part of the financial statements
The accompanying notes are an integral part of the financial statements
/s/ W. 0. Habermeier/s/ J. de Larosièere
TreasurerManaging Director
International Monetary Fund Trust Fund: Statement of Income and Expense for the year ended April 30, 1984

(In thousands of SDRs)

(Note 1)

19841983
Income:
Interest income on loans14,67814,927
Investment income367447
Exchange valuation gain (loss)(15)5
15,03015,379
Less—Interest expense on borrowing (Note 4)1212
Net income15,01815,367
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
International Monetary Fund Trust Fund: Statement of Changes in Trust Resources for the year ended april 30, 1984

(In thousands of SDRS)

(Note 1)

19841983
Balance, beginning of year2,975,5892,994,030
Net income for the year15,01815,367
Balance before transfers to the Special Disbursement Account2,990,6073,009,397
Transfers to the Special Disbursement Account (Note 5)126,11633,808
Balance, end of year2,864,4912,975,589
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

International Monetary Fund Trust Fund Notes to the Financial Statements

Purpose

The Trust Fund, 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 Fund are separate from the assets of all other accounts of or administered by 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 Fund are reimbursed by the Trust Fund on the basis of an estimate of these expenses. Following the termination of the Trust Fund on April 30, 1981, residual administrative costs have been absorbed by the Fund’s 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 period.

Valuation Adjustments

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

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 Fund 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 percent 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 percent per annum.

3. Direct Distribution of Profits

The 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 was calculated on the basis of its share in total Fund 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 five equal annual installments beginning not later than the end 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 percent 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 have been 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, 1984 SDR 174.92 million 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.

June 29, 1984

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, 1984, 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, 1984 and of the financial results of operations and transactions during that year.

External Audit Committee:

/s/ Walter Scholz, Chairman (Germany)

/s/ M. Ijadur Rahman (Bangladesh)

/s/ Abdelmalek Ouenniche (Morocco)

International Monetary Fund Staff Retirement Plan: Statement of Accumulated Plan Benefits and Net Assets Available for Benefits as at April 30, 1984

(In thousands of U.S. dollars)

(Note 1)

19841983
Accumulated Plan benefits (Note 1):
Actuarial present value of accumulated Plan benefits
Vested benefits
Retired participants120,700111,000
Other Darticioants104,50089,500
Nonvested benefits43,20038,200
Total actuarial present value of accumulated Plan benefits268,400238,700
Net assets available for benefits:
Investments, at current value (Note 1)
Portfolio managed within the United States344,921316,755
Portfolio managed outside the United States69,81248,377
414,733365,132
Receivables:
Contributions772596
Accrued interest and dividends (Note 1)3,6723,610
Other1,251
5,6954,206
Cash at banks3213
Total assets420,460369,351
Liabilities:
Accounts payable919804
Net assets available for benefits419,541368,547
Excess of net assets available for benefits over actuarial present value of accumulated Plan benefits151,141129,847
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/S/ W.O. Habermeier/S/ J. de Larosière
TreasurerManaging Director
International Monetary Fund Staff Retirement Plan: Statement of Changes in Accumulated Plan Benefits for the year ended April 30, 1984

(In thousands of U.S.dollars)

(Note 1)

19841983
Actuarial present value of accumulated Plan benefits at beginning of year238,700211,700
Increase (decrease) during the year attributable to:
Benefits accumulated17,74817,258
Increase for interest due to decrease in discount period23,30020,600
Benefits paid(11,348)(10,858)
Net increase29,70027,000
Actuarial present value of accumulated Plan benefits at end of year (Note 1)268,400238,700
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
International Monetary Fund Staff Retirement Plan Statement of Changes in Net Assets Available for Benefits for the year ended april 30, 1984

(In thousands of U.S. dollars)

(Note 1)

19841983
Investment income (Note 1):
Net appreciation in current value of investments (Note 3)79880,460
Interest14,54412,561
Dividends9,5397,726
24,881100,747
Contributions (Note 2):
International Monetary Fund28,86030,515
Participants8,3577,378
Participants restored to service7428
Net transfers from (to) retirement plans of other international organizations170(197)
37,46137,724
Total additions62,342138,471
Benefits:
Pensions10,0388,917
Withdrawal benefits784925
Commutation benefits172751
Death benefits354265
Total payments11,34810,858
Net additions50,994127,613
Net assets available for benefits at:
Beginning of year368,547240,934
End of year—April 30, 1984.419,541368,547
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

International Monetary Fund Staff Retirement Plan 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 employment, regular staff members are required to participate in the Plan and to contribute 7 percent 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 1984, these administrative costs were approximately $2.4 million ($1.1 million in 1983).

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 employer makes normal contributions to the Plan equal to 14 percent 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 percent. If the increase in the cost of living for a year exceeds 2 percent, pensions shall be augmented by an additional supplement to be paid from contributions from the employer equal to the difference between 2 percent 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 percent.

3. Investments

The net appreciation in the current value of investments for the periods April 30, 1984 and 1983 is as follows (in U.S. dollars):

19841983
Portfolio managed within the United States(11,522,052)70,817,228
Portfolio managed outside the United States
—Net market appreciation12,493,25111,698,045
—Net exchange valuation loss(172,841)(2,055,401)
12,320,4109,642,644
Total appreciation798,35880,459,872

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 loss.

At April 30, 1984, 9.69 percent of the net assets available for benefits was held in the Grantham, Mayo, Van Otterloo Managed Market Trust, which has underlying investments in approximately 300 equity issues. There were no other investments which represented 5 percent 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, 1983. 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 percent per annum. 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 percent. 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, 1983) showed an experience loss of $5.4 million for the year then ended. Unamortized experience losses amounted to $63.1 million at April 30, 1984, of which $8.0 million was paid by the employer on May 1, 1984.

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