Chapter

Appendix II The Fund in 1985/86

Author(s):
International Monetary Fund
Published Date:
September 1986
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FUND MEMBERSHIP, PARTICIPATION IN THE SDR DEPARTMENT, AND QUOTAS

During the year ended April 30,1986, the membership of the Fund increased from 148 to 149; all members are participants in the SDR Department. The Kingdom of Tonga became a member on September 13, 1985 with a quota of SDR 3.25 million, raising the total of Fund quotas to SDR 89,305.1 million. Kiribati became the one hundred fiftieth member of the Fund on June 3, 1986 with a quota of SDR 2.5 million. Poland became the one hundred fifty-first member of the Fund on June 12, 1986, with a quota of SDR 680 million, raising the total of members’ quotas in the Fund to SDR 89,987.6 million. Both Kiribati and Poland are also participants in the SDR Department.

It is intended to initiate the preliminary discussions of the Executive Board on the Ninth General Review of Quotas in the latter part of 1986. The Executive Board is required, under Rule D-3 of the Fund’s By-Laws, Rules and Regulations, to appoint, not later than March 31, 1987, a Committee of the Whole to prepare a report on the matter.

GENERAL RESOURCES ACCOUNT

PURCHASES

During 1985/86 only three members (all developing countries) made reserve tranche purchases, for a total of SDR 160 million, compared with purchases of SDR 229 million (by 17 members) in the previous financial year. Credit tranche purchases (by 33 developing countries) were about the same level as in the previous year at SDR 2.8 billion, of which nearly half (SDR 1.1 billion) was financed from borrowed resources under the enlarged access policy (Tables II.2, II.4, and Table II.10). The largest purchases were by Argentina (SDR 709.5 million), Yugoslavia (SDR 322.5 million), and the Philippines (SDR 318.0 million). Mexico made a first credit tranche purchase of SDR 291.4 million under the provision for emergency financial assistance to members in cases of natural disaster.

STAND-BY ARRANGEMENTS

Stand-by arrangements were approved for 18 members for a total of SDR 2.1 billion, compared with SDR 3.2 billion for 24 members in 1984/85. The amounts approved ranged from SDR 400 million (Thailand) to SDR 9.2 million (Equatorial Guinea). Twelve arrangements (Central African Republic, Côte d’lvoire, Jamaica, Mali, Morocco, Niger, Panama, Thailand, Togo, Uruguay, Yugoslavia, and Zambia) were partially financed with borrowed resources totaling SDR 841.4 million under the enlarged access policy (Tables II.3 and II.6). New commitments of ordinary resources under all arrangements amounted to SDR 1.3 billion as against new commitments of borrowed resources amounting to SDR 0.8 billion. Five stand-by arrangements expired with undrawn balances and two were canceled prior to the expiration dates during 1985/86.

EXTENDED FUND FACILITY

The Executive Board decided in January 1986 that it was appropriate to retain the facility1 and will review further the decision on the facility at an appropriate future date. Total purchases under extended arrangements during 1985/86 amounted to SDR 0.5 billion, a considerable fall in comparison with the level of purchases during 1984/85 (SDR 2.0 billion) and 1983/84 (SDR 4.7 billion) (Tables II.2 and II.10). Mexico’s extended arrangement expired at end-December 1985 and Brazil’s at end-February 1986. In 1985/86 a new three-year extended arrangement was approved for Chile (SDR 750.0 million, financed equally from ordinary and borrowed resources). Besides this, only one other extended arrangement (Malawi) was in effect at the end of April 1986 (Table II.7).

COMPENSATORY FINANCING FACILITY

Under the compensatory financing facility, which was established in 1963 and was expanded in 1981, the Fund provides assistance to members experiencing balance of payments difficulties arising from temporary export shortfalls or from increases in the cost of cereal imports caused by factors largely beyond their control. The facility for members facing excesses in cereal import costs was extended by the Executive Board in May 1985 for a four-year period.2

During 1985/86 eight members purchased a total of SDR 490 million under the decision relating to export fluctuations. The steady decline in purchases from the peak of SDR 3.7 billion (1982/83) and the levelling off to SDR 1.2 billion in the two subsequent years reflects an improvement in the export earnings of many members since the world recession in 1981-82. During 1985/86 only two members (Kenya and Morocco) made purchases, totaling SDR 111 million, under the decision relating to cereal import excesses as against purchases of SDR 87 million in the previous year. The outstanding purchases under both elements of the facility as of April 1986 amounted to SDR 6.4 billion, as against a total of SDR 7.5 billion outstanding at end-April 1985 (Table II.9).

BUFFER STOCK FINANCING FACILITY

Assistance under this facility, which was established in 1969, is extended to members with a balance of payments need for financing their contributions to approved international commodity agreements. At present two agreements qualify for Fund support, the Sixth International Tin Agreement (1981) and the 1979 International Natural Rubber Agreement (extended until October 1987). No purchases under this facility have been made during the last two years. The purchases outstanding totaled SDR 73.4 million as of April 30, 1986 (Bolivia, Côte d’lvoire, Sri Lanka, and Thailand) as against SDR 236.9 million at April 30, 1985; this reduction reflected repurchases totaling SDR 163.4 million made during 1985/86, of which SDR 150 million represented repurchases by Indonesia and Malaysia.

REPURCHASES

Repurchases during 1985/86 totaled SDR 4,289 million, compared with SDR 2,730 million in 1984/85 (Tables II.5, II.8 and, II.10), and represented the third largest amount of repurchases in any one financial year, exceeded only in 1978 (SDR 4,485 million) and 1979 (SDR 4,859 million). Of this total, SDR 2,929 million, or 70 percent, related to purchases financed from ordinary resources and the remaining 30 percent (SDR 1,345 million) was in respect of purchases financed with borrowed resources. About one third of total scheduled repurchases (SDR 1,286 million) was in respect of purchases under the compensatory financing facility, which reflected the extensive recourse to this facility in 1981 and 1982 on account of shortfalls in export earnings of primary exporting countries in the global recession during that period. Two members, Indonesia (SDR 265 million) and Malaysia (SDR 260 million), made repurchases in accordance with the guidelines for early repurchase, under which members are expected to repurchase amounts in advance of the normal schedule if their balance of payments and reserve positions have improved.3 The total repurchases also included repurchases in advance of the due dates by three members, Ethiopia, Hungary, and Sri Lanka, of SDR 4.5 million, SDR 88 million, and SDR 0.123 million, respectively.

FUND LIQUIDITY

The Fund’s liquid resources comprise its usable currencies and SDRs in the General Resources Account, supplemented as and when necessary by borrowed resources4 (II.10). Of these liquid resources, usable currencies represent the largest component, comprising currencies of members whose balance of payments and gross reserve positions are considered by the Executive Board to be sufficiently strong for their currencies to be sold through the quarterly operational budget. While financial assistance to members is the principal use of the Fund’s resources, due allowance is also made in assessing the adequacy of Fund liquidity for the need to maintain the liquidity of members’ reserve positions and loan claims on the Fund (which are encashable upon representation of balance of payments need), and the need to service the Fund’s outstanding borrowing. The decline in the stock of ordinary usable resources from SDR 41.9 billion as of April 30, 1985 to SDR 37.1 billion as of April 30, 1986 reflects mainly reductions in the list of usable currencies. Several members that had earlier been considered sufficiently strong subsequently experienced a weakening in their balance of payments and reserve positions. Borrowed resources available to finance the policy on enlarged access totaled SDR 4.2 billion. Liquid claims on the Fund amounted to SDR 40.6 billion, made up of SDR 14.5 billion in loan claims and SDR 26.1 billion in reserve tranche positions; these claims were held principally by members in strong balance of payments positions.

BORROWING

The Fund has from time to time temporarily supplemented its ordinary resources by borrowing from official sources. Under the current guidelines the ratio of the Fund’s outstanding borrowing, plus unused credit lines, to the total of Fund quotas should not exceed the range of 50 to 60 percent,5 and as of April 30, 1986 this ratio was 35 percent.

Nearly three fourths of the total resources borrowed under the policy on enlarged access (SDR 15.3 billion) has been made available under the medium-term borrowing arrangement with the Saudi Arabian Monetary Agency (SAMA) for SDR 8.0 billion agreed in May 1981,6 and the supplementary short-term borrowing arrangement with SAMA for SDR 3.0 billion agreed in April 1984. The drawdown period under the medium-term agreement ends on May 6, 1987 and repayments are due in four annual installments beginning four years after each call is made. As of April 30, 1986, the Fund had borrowed SDR 6.8 billion under this agreement, leaving an undrawn balance of SDR 1.2 billion. The first repayments commenced in May 1985 and a total of SDR 0.4 billion had been repaid through end-April 1986. The Fund had also arranged for a total loan of SDR 7.3 billion under short-term borrowing agreements from several official lenders concluded in 1981 and 19847 As of April 30, 1986, all but SDR 3 billion available under these agreements had been fully utilized. The undrawn balance of SDR 3 billion represents the amount available under the short-term credit line with SAMA, which is a supplement to its 1981 medium-term borrowing agreement with the Fund. The drawdown period under this agreement also expires on May 6, 1987.

During 1985/86, the Fund borrowed SDR 2.0 billion and repaid SDR 1.6 billion under existing credit lines, with a net increase in outstanding borrowing of SDR 0.4 billion. Total outstanding borrowing rose marginally from SDR 14.2 billion at end-April 1985 to SDR 14.6 billion at end-April 1986. All new borrowing has been to finance the policy on enlarged access, whereas repayments have included borrowings both under enlarged access and the supplementary financing facility.8 As of April 30, 1986 the Fund had available credit lines totaling SDR 22.7 billion, representing unused credit lines of SDR 4.2 billion to finance the policy on enlarged access and credit arrangements under the General Arrangements to Borrow of SDR 18.5 billion.9

Unlike the Fund’s ordinary resources, which are available on demand, the borrowings to finance purchases under the policy on enlarged access require advance notice ranging downward from 90 days prior to the drawdown date. This and other features of the borrowing arrangements, coupled with the need to hold funds received in repurchases pending repayment to lenders, create a need for the temporary investment of borrowed funds to minimize net borrowing costs and exchange risk. Consequently, borrowed resources suspense accounts were established in May 1981 to hold such funds in SDR-denominated assets at prevailing SDR interest rates in order to protect their capital value in terms of the SDR, and to generate income to offset borrowing costs. During 1985/86 assets in these accounts consisted wholly of deposits with the Bank for International Settlements and totaled SDR 0.6 billion as of April 30, 1986.

SDR DEPARTMENT

Total SDRs issued remained at SDR 21.4 billion, as there have been no allocations or cancellations since January 1, 1981. Over the financial year 1985/86, the share of SDRs held by the Fund fell from 22 percent to 13 percent while that of participants rose from 78 percent to 87 percent and the share held by prescribed holders remained at less than ½ of 1 percent. The total volume of SDR transfers in 1985/86 remained at roughly the same level as in 1984/85. For the third consecutive year, transactions by agreement exceeded those under designation, with the margin between the two types of SDR transfers increasing. Transfers among participants and prescribed holders declined by 8.1 percent to SDR 4,910 million, largely owing to a further decline in the amount of transactions with designation (Table II.12). The volume of SDR transfers involving prescribed holders almost doubled from SDR 235 million in 1984/85 to SDR 439 million in 1985/86.

The amount of SDRs transferred between participants and the Fund increased modestly over the previous financial year and resulted in a net outflow of SDR 1,894 million. Transfers from participants to the General Resources Account (mainly for charges and repurchases) rose by 3.4 percent to SDR 4,415 million, and transfers from the General Resources Account to participants (mainly in purchases, remuneration, and sales to members needing SDRs for charges and interest on repayments of Fund borrowings) rose by 3.6 percent to SDR 6,309 million.

The currency amounts in the SDR’s valuation basket were adjusted on January 1, 1986 as part of a regular five-yearly review. The SDR interest rate continued to be set at 100 percent of the combined market interest rate.

PATTERN OF HOLDINGS

SDRs may be held by the Fund’s General Resources Account, by Fund members who participate in the SDR Department (currently all members), and by official entities prescribed by the Fund. The number of institutions so prescribed by the Fund as eligible to accept, hold, and use SDRs remained unchanged at 14 during the year under review.10 In April 1986 the Fund received applications from two development institutions to become prescribed holders.11 Prescribed holders cannot receive allocations of SDRs, nor use them in transactions with designation, but they can acquire and use SDRs in transactions and operations with participants in the SDR Department and other prescribed holders under the same terms and conditions as participants.

In the absence of further allocations or cancellations, the pattern of SDR holdings reflects a redistribution of the existing stock. In accordance with the Executive Board’s guideline, the Fund’s holdings of SDRs fell from SDR 4,616 million at the end of financial year 1985 to SDR 2,722 million at the end of financial year 1986 (Table II.13). The SDR 1,894 million reduction in the Fund’s holdings of SDRs was reflected in a corresponding increase in the holdings of participants, while holdings of prescribed holders did not significantly change on balance. The increase in participants’ SDR holdings was reflected in the holdings of all major country groupings, with the exception of developing countries in Africa and Europe. As a group, the developing countries increased their SDR holdings by 14.5 percent (to SDR 3,363 million), which was more than the 10.6 percent increase (to SDR 15,352 million) in industrial countries’ SDR holdings. The highest level of end-of-month holdings of prescribed holders was SDR 171 million (December 1985) and the lowest was SDR 9 million in March 1986.

TRANSACTIONS AND OPERATIONS AMONG PARTICIPANTS AND PRESCRIBED HOLDERS

Transactions with Designation

Participants with a balance of payments need can use SDRs through the designation mechanism to obtain currency from other participants designated by the Fund. During 1985/86, participants used SDR 1,809 million in transactions with designation, of which about one fourth represented use of SDRs in designation from participants’ own holdings, while the other part represented the immediate use of SDRs acquired from the Fund in purchases. About 70 percent of the SDRs received in purchases from the Fund was used in designation and the remainder was added to participants’ holdings, mainly to pay charges to the Fund. Of the 20 countries designated to provide currency in exchange for SDRs (26 countries in 1984/85), 15 industrial countries were designated for SDR 1,713 million and 5 developing countries for SDR 96 million. However, over two thirds of the total amount of currencies was provided, in order of magnitude, by only three participants (the United Kingdom, Canada, and France).

Transactions by Agreement

Participants enter into transactions by agreement mainly to acquire SDRs in order to discharge obligations to the Fund, such as charges (which must be paid in SDRs) and repurchases (which may be paid in SDRs). Such transactions (SDR 2,677 million, of which SDR 325 million involved prescribed holders) were marginally lower than in 1984/85. The positive impact on the amount of SDRs acquired in transactions by agreement that resulted from the 65 percent increase—to SDR 1,183 million—in the amount of SDRs used to make repurchases was more than offset by the sharp increase in the amount of SDRs acquired from the Fund to pay charges, thus diminishing the need to acquire SDRs in transactions by agreement. The increase in transfers of SDRs from the General Resources Account to participants needing them to pay charges was a consequence of the need to reduce the Fund’s holdings of SDRs to the target level adopted by the Executive Board.

During 1985/86 there was a further rise in the number of standing arrangements that allow the Fund to arrange transactions by agreement on behalf of participants wishing to buy or sell SDRs, thereby facilitating the matching of buyers and sellers of SDRs in voluntary transactions. Under these arrangements, participants specify the maximum amount of SDRs they wish to buy or sell, or a maximum or minimum level of holdings they wish to obtain, through one or more transactions by agreement.

Participants entering into standing arrangements to sell are generally countries with a strong balance of payments position and rising SDR holdings on account of, among other things, receipts of SDRs in designation and in remuneration on creditor positions in the Fund. They can reduce their holdings only by using SDRs in transactions or operations by agreement. Ten participants entered into standing arrangements to sell SDRs in 1985/86. Standing arrangements to buy SDRs are generally entered into by those countries that wish to add to their SDR holdings in advance of payment of charges or of repurchases. Fifteen participants entered into such arrangements in 1985/86.

A new development was the establishment of a “two-way” arrangement with one participant, which allows the Fund to sell or buy SDRs on behalf of the participant as long as its holdings are maintained within a range of approximately 25 percent on either side of its net cumulative allocation. As a result of this arrangement, it has been possible since February 1986 to buy and sell modest amounts of SDRs in transactions by agreement on any desired day. If such two-way arrangements became sufficiently numerous and large, they could materially improve the SDR’s liquidity and further reduce reliance on the designation mechanism.

Additional Uses of SDRs

The Fund permits a variety of additional uses of SDRs among participants and prescribed holders, namely, for use in settlement of financial obligations, in forward operations, swaps, donations (grants), as security for performance of financial obligations, and to borrow, lend, or pledge SDRs. During 1985/86 further additional uses were authorized whereby prescribed holders are allowed to transfer to participants SDRs held as the counterpart of SDR-denominated investments made by the Supplementary Financing Facility Subsidy Account and the Special Disbursement Account (Structural Adjustment Facility). Such transfers would be made to discharge obligations of the Fund (or the Subsidy Account) to the participant. The Managing Director may make arrangements under which participants may service their loans from the Structural Adjustment Facility in the same way.12

The overall activity involving additional uses of SDRs in 1985/86 amounted to 46 transfers totaling SDR 111 million as against 40 transfers for a total of SDR 161 million in 1984/85. This decline in the SDR total was due to the fact that, unlike in 1984/85, there were no uses of SDRs to make loans to new members paying the reserve asset portion of their quota increases and the repayment of such loans. All transfers took place under only two prescriptions, those allowing the use of SDRs in loans and in settlement of financial obligations. The bulk of these transfers was effected by one prescribed holder which uses the SDR as its unit of account and makes loans in SDRs to its members. This institution was the recipient of SDRs in 33 transfers amounting to SDR 56.1 million relating to the repayments of loans and the payment of interest in settlement of financial obligations. The same prescribed holder used SDRs in 7 transfers (SDR 52.4 million) to make loans to four of its members. Another prescribed holder settled its financial obligations in 2 transfers to a participant.

TRANSFERS INVOLVING THE FUND

Inflows

Most uses of SDRs are between participants and the Fund. Total transfers to the General Resources Account increased by 3.4 percent in 1985/86 to SDR 4,415 million, reflecting mainly the payment of charges on the use of Fund resources (SDR 2,915 million) and the repurchases made in SDRs, at participants’ option, which amounted to SDR 1,183 million, compared with SDR 717 million in 1984/85. Repurchases discharged in SDRs amounted to 28 percent of total repurchases, compared with 26 percent in 1984/85. In addition, the Fund received SDR 312 million in interest income on its holdings of SDRs (Table II.12).

Outflows

Transfers from the General Resources Account to participants increased by 3.6 percent to SDR 6,309 million in 1985/86. SDRs used in purchases, although substantially less than in 1984/85, still represented the largest outflow of SDRs, followed by SDRs acquired to pay charges to the Fund. Remuneration of creditor positions—lower by 22 percent in 1985/86—constituted the third largest outflow. The remaining outflows related to the payment of interest and principal on Fund borrowing. Interest payments in SDRs to six lenders to the Fund totaled SDR 720.9 million in 1985/86, of which SDR 365.5 million represented interest on loans under the supplementary financing facility and SDR 355.4 million, interest on borrowing for the enlarged access policy. The loan repayments of the Fund to seven countries amounted to SDR 340.6 million, of which SDR 323.5 million represented repayments under the supplementary financing facility.

The pattern of inflows and outflows of SDRs resulted in a decline from SDR 4,616 million to SDR 2,722 million in the Fund’s holdings of SDRs, which was in accord with the objectives formulated by the Executive Board to reduce progressively the Fund’s holdings to about SDR 2.5 billion by the end of May 1986 and to about SDR 1 billion by the end of May 1987.13 Such a level is deemed to be sufficient to enable the Fund to meet obligations payable in SDRs (remuneration and sales of SDRs to members needing them for charges). This planned reduction would not have a significant impact on the Fund’s income position, while being consistent with the policy objective that SDRs should generally be held in members’ reserves rather than in the Fund’s General Resources Account.

SDR AS A UNIT OF ACCOUNT AND AS A CURRENCY PEG

The SDR, which is the unit of account for Fund transactions and operations and for its administered accounts, is also used as a unit of account (or as a basis for the unit of account) by a number of international and regional organizations.14 A number of international conventions also use the SDR to express monetary magnitudes, notably those expressing liability limits in the international transportation of goods and exchange of services. The International Air Transport Association uses movements in the exchange rate of a currency against the SDR as a trigger for a review and possible revision of cargo tariffs, which are specified in local currency.

In addition, the SDR has been used to denominate financial instruments created outside the Fund (so-called private SDRs). The market for private SDR deposits is still very limited and showed only moderate growth in 1985/86; there were no new security issues or bank credits denominated in SDRs.

At the end of April 1986, the currencies of 12 member countries were pegged to the SDR. When a member pegs its currency to the SDR, the value of its currency is fixed in terms of the SDR and is set in terms of currencies by reference to the SDR value of these currencies as calculated and published by the Fund.

ACCOUNTS ADMINISTERED BY THE FUND

TRUST FUND

The Trust Fund (established in May 1976), which provided additional concessionary balance of payments assistance to eligible low-income member countries by using part of the proceeds of gold auctioned by the Fund, was terminated as of April 30, 1981.15 Thereafter, the responsibilities of the Fund have been confined to the receipt and disposition of interest and loan repayments through the Special Disbursement Account and the completion of any related business. Two installments of semiannual interest totaling SDR 11.9 million were received in June and December 1985. Repayments of loans, which began in July 1982, were made by 49 countries in 1985/86 and amounted to SDR 412.7 million as of April 30, 1986, leaving an outstanding balance of SDR 2,236.9 million.

SUPPLEMENTARY FINANCING FACILITY SUBSIDY ACCOUNT

The Supplementary Financing Facility Subsidy Account was established in December 1980 to reduce the cost for low-income developing members of using the supplementary financing facility. This Account was constituted by transfers from the Special Disbursement Account of interest on, and repayments of, Trust Fund loans (SDR 405.4 million), by donations (SDR 57.4 million) (Table II.14), and by loans and the income on investment of resources held pending disbursement (SDR 46.6 million). On May 28, 1985, the Executive Board decided to suspend further transfers to the Account from the Special Disbursement Account because the assets in hand, or pledged to the Subsidy Account, were estimated to be sufficient to discharge the known liabilities of the Subsidy Account, i.e., subsidy disbursements until 1991 at the maximum possible rates of subsidy estimated at SDR 272.1 million.16

Subsidy payments are calculated as a percentage per annum of the average daily balance of the Fund’s holdings of an eligible member’s currency resulting from purchases outstanding under the supplementary financing facility.17 Eligible countries are divided into two groups: those with per capita incomes in 1979 equal to or below the per capita income used to determine eligibility for assistance from the International Development Association (IDA), which receive the full rate of subsidy, which does not exceed 3 percent per annum; and those with a per capita income in 1979 above the IDA level, but not more than that of the member that had the highest per capita income of those countries that were eligible to receive assistance from the Trust Fund, which receive subsidies at one half the full rate. All payments to date have been made at the maximum rates of 3 percent and 1.5 percent, respectively. These amounted to SDR 82.4 million in 1985/86 and have totaled SDR 307.1 million since the inception of the Account (Table II.15). Pending further subsidy payments, the investments of the Account are held in SDR-denominated deposits with the Bank for International Settlements (BIS).18 Since January 1986, part of the Account’s short-term assets can also be held in an SDR-denominated investment account with the International Bank for Reconstruction and Development (IBRD).19 The IBRD, being a prescribed holder of SDRs, will cover the Fund’s investments by holding official SDRs to be acquired in a transaction by agreement with another participant or prescribed holder. The IBRD’s holdings of SDRs will earn the official SDR interest rate, which is generally higher than the rate earned on the Subsidy Account’s short-term investments with the BIS, and the IBRD will pass on this higher rate to the Subsidy Account. As of April 30, 1986 the interest-earning deposits of the Subsidy Account amounted to SDR 183.2 million, plus accrued income of SDR 6.1 million.

Following the suspension of transfers to the Subsidy Account, further repayments of and interest on Trust Fund loans have been kept in the Special Disbursement Account under an investment policy, adopted on May 28, 1985, similar to that of the Supplementary Financing Facility Subsidy Account.20 Under this policy, the assets of the Account are to be invested in SDR-denominated deposits with the BIS pending their use to finance the newly established structural adjustment facility of the Fund. As of April 30, 1986 the interest-earning deposits of the Special Disbursement Account amounted to SDR 427.0 million, plus accrued income of SDR 4.7 million.

NET INCOME POSITION, CHARGES, AND REMUNERATION

The Fund aims at achieving positive income each year, both to cover its expenses and to add a target amount of income to its reserves, while at the same time retaining a concessional element in the rate of charge on the use of ordinary resources and paying appropriate remuneration to creditor members for the use of their currencies in financing the Fund’s operations. To this end, the Fund reviews its income position at midyear and at the end of the financial year (May 1 to April 30) and determines the rate of charge in the light of projected developments in the cost and use of Fund resources. Income in excess of the target amount of income may be placed in reserves or used to increase the rate of remuneration or to reduce the rate of charge.

INCOME, EXPENSE, AND RESERVES

The Fund recorded net income of SDR 78 million for the year ended April 30, 1986 as against a deficit of SDR 30 million for the previous year. Income from periodic charges decreased by SDR 229 million, from SDR 2,969 million in 1984/85 to SDR 2,740 million in 1985/86. This decrease occurred primarily because of the decline in market-related interest rates on which the Fund bases the charge for the use of resources financed from Fund borrowing. The average rate of charge levied on use of resources financed from borrowing declined from 11.43 percent in 1984/85 to 9.27 percent in 1985/ 86. The average balances on which the ordinary rate of charge is levied increased somewhat, from SDR 19,535 million in 1984/85 to SDR 19,657 million in 1985/86. Income from service charges decreased by SDR 8 million, from SDR 35 million in 1984/85 to SDR 27 million in 1985/86, reflecting a smaller additional use of Fund credit than in the preceding year.

The Fund’s average holdings of SDRs were reduced from SDR 5,428 million in 1984/85 to SDR 3,538 million in 1985/86, and the average rate of interest on these holdings declined from 8.81 percent in 1984/85 to 7.44 percent in 1985/86. Consequently, the interest earned by the Fund on its SDR holdings declined by SDR 215 million, from SDR 478 million in 1984/85 to SDR 263 million in 1985/86.

Overall, operational income in 1985/86 (SDR 3,029 million) was SDR 453 million less than in 1984/85 (SDR 3,482 million). The Fund’s operational expenses, consisting of remuneration on creditor positions and interest on Fund borrowing, decreased from SDR 3,288 million in 1984/85 to SDR 2,728 million in 1985/86.

Remuneration costs were lower by SDR 269 million (SDR 1,721 million in 1984/85 and SDR 1,452 million in 1985/86), primarily because of a lower average rate of remuneration of 6.85 percent in 1985/86, compared with an average rate of 7.77 percent in 1984/85, and also because of somewhat lower average balances on which remuneration is payable. Although the remuneration coefficient increased over the financial year, this was more than offset by the fall in market interest rates to which the SDR interest rate and the rate of remuneration are linked.

Interest costs on borrowing, net of income from temporary investments of the proceeds of borrowing, declined from SDR 1,567 million in 1984/85 to SDR 1,276 million in 1985/86. Average Fund borrowing over the year was relatively unchanged (SDR 14,050 million in 1984/85 and SDR 14,064 million in 1985/ 86). However, the average rate of interest paid by the Fund on its borrowing declined from 11.14 percent in 1984/85 to 9.09 percent in 1985/86. The Fund’s total outstanding borrowing amounted to SDR 14,556 million on April 30, 1986 (SDR 14,203 million on April 30, 1985).

Net administrative expenses of the Fund in 1985/86 amounted to SDR 223 million, compared with SDR 224 million in 1984/85. Details on income and expense are shown in Appendix VIII (Financial Statements, pages 129–62).

CHARGES

Since the financial year 1981/82, the Executive Board, in considering the Fund’s income position, has established at the beginning of each year a single rate of charge for use of the Fund’s ordinary resources. This rate is determined on the basis of estimated income and expenses and the target amount of net income for the coming year. For the financial year that began May 1, 1985, the Executive Board decided to maintain the rate of charge at 7 percent per annum, the rate that prevailed in the previous year. Owing primarily to the uncertainty of the amount of deferred income from members overdue in their financial obligations to the Fund, it was projected at the midyear review of the Fund’s income position that a deficit could be expected for the year as a whole. In the absence of an agreement to do otherwise by the Executive Board, and in accordance with the Fund’s Rules and Regulations, the rate of charge on the use of the Fund’s ordinary resources was raised as of November 1, 1985 from 7 percent per annum to 7.87 percent per annum. This higher rate was calculated as being necessary, based on the projections made at that time, to attain the income target for the year of the equivalent of 5 percent of reserves at the beginning of the financial year. In the light of the improvement in the income position and the payment by some members of some significant amounts of overdue and deferred charges, the Executive Board in April 1986 decided to reduce the rate of charge, retroactively to November 1, 1985, to the previous level of 7 percent per annum. Consequently, for the year as a whole, the rate of charge was 7 percent per annum.

Members making use of borrowed resources pay charges that reflect the Fund’s costs of borrowing plus a margin. For purchases financed with borrowing under the supplementary financing facility, the rate of charge is equal to the rate of interest paid by the Fund plus a margin of 0.20 percent for the first three and one-half years a purchase remains outstanding, plus an additional 0.125 percent after three and one-half years. The rate of charge under the policy on enlarged access is the net cost of borrowing by the Fund plus 0.2 percent per annum. The average rates of charge per annum on purchases financed with borrowing in 1985/86 were 9.44 percent (supplementary financing facility) and 9.18 percent (enlarged access policy).

The Executive Board decided that, with effect from February 1, 1986, a special charge would be levied on overdue obligations of members. When the SDR interest rate is greater than the rate of charge, the rate of special charge to be imposed on overdue repurchases would be equal to the difference between the SDR interest rate and the rate of charge on ordinary resources. The rate of special charge levied on overdue charges owing to the General Department is equal to the SDR interest rate. In the last quarter of the financial year—February 1, 1986 through April 30, 1986—the special charges accruing to the Fund amounted to SDR 2.3 million, of which SDR 0.6 million was included in current income and SDR 1.7 million was deferred because the members subject to the special charge were six months or more overdue in their obligations and were also not current in the payment of charges.

REMUNERATION

A member receives remuneration whenever the Fund uses that member’s currency to the extent that the holdings of the member’s currency are reduced below the “norm” for the member. The norm varies from member to member; for those that were members of the Fund at April 30, 1978 (the time the Second Amendment of the Articles of Agreement entered into effect), it is equal to 75 percent of quota at that date, plus all increases in the member’s quota after that date. For a member admitted to membership after that date, it is calculated as the weighted average of the norms of all other members on the date of membership plus all increases in the member’s quota paid after the date on which the member joined the Fund. The average norm at the end of April 1986 for all members (91.73 percent) and the norms for individual members (between 88.49 percent and 98.95 percent)21 remained unchanged from the previous year.

The rate of remuneration is derived by multiplying the remuneration coefficient by the SDR interest rate. Since May 1, 1981, the SDR rate of interest has been maintained at 100 percent of the combined market rate of interest.22 Since August 1983 the SDR interest rate has been determined weekly, instead of quarterly (as previously), to reflect more closely movements in the combined market interest rate. Under the Articles of Agreement, the rate of remuneration may not be less than 80 percent nor more than 100 percent of the SDR interest rate. In January 1984, the Executive Board decided that this coefficient was to be raised on May 1 in each of the years 1984, 1985, and 1986 to specified levels, with provision for additional quarterly adjustments (increases as well as decreases during each year, within specified limits for that year) depending upon developments in the SDR interest rate, compared with that rate on April 30,1984 (8.91 percent). The coefficient under the agreed formula in this decision was raised successively from 85 percent to 88.33 percent of the SDR interest rate on May 1, 1984, to 90 percent on February 1, 1985, to 91.66 percent on May 1, 1985, and to 93 percent on August 1, 1985. On February 1, 1986 it was lowered to 92 percent, but was raised on May 1, 1986 to 97.49 percent. The rate of remuneration will be further reviewed before May 1, 1987, taking account of all relevant factors, including the SDR interest rate and the rate of charge. During the financial year 1985/86 the rate of remuneration averaged 6.85 percent per annum (7.77 percent per annum in 1984/85). The SDR rate of interest and the rate of remuneration applicable in 1985/86 are set out in Table II.16.

TECHNICAL ASSISTANCE AND TRAINING

In 1985/86 the technical assistance and advice provided by the Fund to its members continued to be a very important part of its overall activities. This assistance covers a variety of subjects, from broad policy issues to more specialized technical problems. Much of the general technical assistance is provided through the Fund’s consultation procedures under Article IV or in connection with adjustment programs. In helping a member to implement and monitor a program, the Fund may use the services of a staff member assigned as resident representative in a country.

The Fund extends technical assistance and training to member countries in specific economic and financial areas either at Fund headquarters or through staff missions. Requests for such assistance and training are met through the provision of staff from virtually every department of the Fund and relate to such topics as general economic policy, balance of payments programs, debt-management systems, problems arising from inflation, exchange and trade systems, tax policy and tax administration, accounting and valuation problems, statistical issues, and data processing.

The IMF Institute offers training to officials from member countries through courses and seminars in Washington and seminars abroad. In 1985/86, the Institute enlarged its activities in Washington by adding an Arabic division to the existing English, French, and Spanish divisions and by conducting up to four courses simultaneously, compared with three in previous years. During the year, it conducted a total of 14 courses, comprising one 18-week course on financial analysis and policy, one 14-week course and two 12-week courses on financial programming and policy, two 10-week courses on public finance, and eight 8-week courses on techniques of economic analysis, balance of payments methodology, and government finance statistics. The courses on public finance were conducted in collaboration with the Fiscal Affairs Department, and those on balance of payments methodology and government finance statistics in collaboration with the Bureau of Statistics.

During the same financial year, the Institute conducted three seminars on general topics at Fund headquarters. The first seminar, held in collaboration with the Central Banking Department, dealt with central banking, the second with the Fund’s role in the international monetary system, and the third with pricing policy.

The Institute also carried out external training activities. It conducted three country seminars—in Morocco on exchange rate policy, and in Papua New Guinea and Botswana on financial programming techniques and policy issues. In addition, the Institute provided lecturers to four regional organizations and arranged briefings at Fund headquarters for official visitors from member countries.

During 1985/86, 470 participants attended Institute courses and 86 senior officials attended seminars held in Washington, while 74 officials attended seminars held abroad. Since its inception in 1964, the Institute has provided training for 5,091 officials from 149 member countries in its courses and seminars in Washington.

The provision of technical assistance on fiscal matters to member countries continues to be a major activity of the Fiscal Affairs Department. During 1985/86, advice and assistance again covered a wide range of fiscal subjects, including tax policy and administration, the budget system and procedures, accounting, auditing, expenditure control, financial reporting, and public enterprise policies. Such technical assistance contributed to successful adjustment in a number of countries by promoting the effective implementation of fiscal adjustment measures. In this regard the advice provided included measures to increase revenues, improve tax administration, rationalize expenditure policies, and improve the efficiency of budgetary operations, for which detailed technical analysis was required from the Fiscal Affairs Department and the Legal Department. Technical assistance continued to be given through a mixture of staff missions and the use of members of the panel of fiscal experts, most often through field assignments. In 1985/86 technical assistance was given to 50 countries, compared with 44 in 1984/85 and 45 in 1983/84. During 1985/86, there were 27 long-term and 98 short-term assignments of experts in the field; 48 panel members and 32 Fund staff members participated in this technical assistance work. Support and guidance to experts in the field were provided from headquarters.

The Central Banking Department has continued to provide technical assistance and advisory services to member countries in a wide range of financial sector subjects. These services are furnished both through staff advisory missions and through the assignment of resident experts. During 1985/86, 149 resident experts provided 91 man-years of assistance in both executive and advisory positions to the monetary authorities of 64 member countries and 4 regional organizations. Most of the assistance was in the fields of research, bank supervision, banking operations, and foreign exchange management. The Department has also continued its program of assistance to member countries in establishing proper mechanisms for the reporting, control, and management of external debt and for the collection of debt statistics. Seventeen experts and consultants have been helping member countries under this program. Departmental staff carried out 19 advisory and assessment missions and participated in 3 missions led by area departments and in 1 World Bank mission. Topics on which advice was given included banking and financial sector legislation (in collaboration with the Legal Department), design of monetary policy instruments, development of money markets, promotion of development finance, unregulated financial institutions, and financial reform. A third seminar on central banking, attended by senior central bank officials of member countries, was conducted jointly with the IMF Institute in July 1985.

In connection with its advisory services, the Central Banking Department has continued to undertake research projects on several aspects of central banking and financial sector development, including monetary instruments and policies, banking crises, selective credit controls, and bond markets. These studies, and the ongoing work on computerized data bases on central bank and commercial banking legislation, are aimed at enhancing the quality of advisory services, as well as at ensuring the timeliness and accuracy of the information provided by the Department to member countries. The Department is now compiling a data base on central bank practices and instruments, which will permit intercountry comparisons on the use of monetary and credit instruments.

The provision of technical assistance in statistics continued to be an important part of the activities of the Bureau of Statistics. During 1985/86, priority was given to meeting requests for assistance from member countries negotiating or implementing adjustment programs with the Fund, from relatively new member countries, and from developing countries at an early stage of statistical development. The assistance was provided primarily through short missions in one or more key areas of economic statistics, but training was also provided at Fund headquarters to visiting national statisticians. Continuing the practice of recent years, the main objective of this assistance was to improve the currentness, coverage, and quality of the data needed to support the Fund’s analytical and operational work, and the principal areas of statistics covered were money and banking, government finance, balance of payments, international banking and external debt, and general economic data. During 1985/86, the staff of the Bureau of Statistics participated in 70 technical assistance missions to 53 countries and 2 regional organizations (Banque Centrale des Etats de I’Afrique de I’Ouest and Banque des Etats de I’Afrique Centrale) and provided training at headquarters to 10 officials from member countries. In addition, staff of the Bureau collaborated with the IMF Institute in conducting courses in government finance statistics (in French) and balance of payments methodology (in English and French) and assisted regional and national authorities in conducting 5 seminars in various areas of statistics.

The Bureau of Computing Services continued to receive a number of visiting officials from central banks and other international organizations. The type of technical advice, briefings, and training provided related mostly to the application of large-scale statistical data bases, econometric facilities, and the development and use of microcomputers for desk-top processing. During 1985/86, the Bureau of Computing Services also participated in technical assistance missions to the central banks of four member countries. The electronic data processing assistance provided was in direct support of the economic programs of the Fund. In Ghana, assistance was provided to the Domestic and Foreign Operations Department for the development of an economic data base. The Central Bank of Seychelles required a review of the effective exchange rate computation programs and an analysis of the reporting and storage of economic time series. In Cameroon, assistance was given in formulating a plan for the implementation of a computer system for international banking and accounting applications. The requirements in Tanzania focused on a review of previous consultants’ reports on the computerization of the operational and analytical needs of the Bank.

RELATIONS WITH OTHER INTERNATIONAL ORGANIZATIONS

The Fund’s central role in the international monetary and financial arena necessitates close and active cooperation with other international and regional organizations having related responsibilities and interests. Enhanced collaboration with the World Bank, with which the Fund has a unique relationship dating back to their shared creation at the Bretton Woods Conference in 1944 and complementary activities, was of particular importance during 1985/86. This collaboration was reflected in the regular exchange of information and expertise, the participation of staff in each other’s missions and related activities, and other joint endeavors aimed at furthering the goals of the two institutions. Close ties were also maintained with the United Nations (UN) and its relevant organs, the Organization for Economic Cooperation and Development (OECD), the General Agreement on Tariffs and Trade (GATT), the Commission of the European Communities (CEC), the Bank for International Settlements (BIS), and regional and financial institutions in Africa, Asia and the Pacific, Latin America and the Caribbean, and the Middle East. Liaison with the United Nations is the responsibility of the Fund’s Special Representative to the United Nations in New York. The Fund’s European Office in Paris has responsibility with respect to the OECD, the BIS, and the CEC; and the Office in Geneva with regard to the UN Conference on Trade and Development (UNCTAD) and the GATT. The work of these offices is supplemented by senior staff and technical experts from headquarters, staff resident representatives in certain member countries, and attendance at and participation in meetings, seminars, and training courses. Documents and other information are also exchanged.

The Managing Director delivered his annual address before the Economic and Social Council of the United Nations (ECOSOC) on July 4, 1985 in Geneva. He also participated in the ceremonies in connection with the Fortieth Anniversary of the United Nations in October 1985, and spoke at the meeting of the UN Administrative Committeeon Coordination in New York on October 28. In July 1985 he attended the monthly meeting of the BIS in Basle and on April 17, 1986 he addressed the ministerial meeting of the OECD held in Paris. The Managing Director also took part in the meetings of the ministers and governors of the Group of Ten industrial countries which were held in Tokyo on June 21, 1985, before the Interim Committee sessions in Seoul on October 6, 1985 and in Washington on April 8, 1986. In addition, he attended the thirty-second meeting of the Ministers of the Intergovernmental Group of Twenty-Four on International Monetary Affairs, which took place in Seoul on October 5, 1985. The Fund was represented at the thirty-third meeting of the Group of Twenty-Four Ministers, held in Buenos Aires on March 6, 1985, by the Economic Counsellor. The Deputy Managing Director attended the twenty-fourth high-level meeting of the OECD Development Assistance Committee in Paris on December 2, 1985, and delivered comments on the subject of collaboration between aid agencies and the Fund.

At the invitation of the World Bank, the Fund was represented at meetings of the Bangladesh, Burma, and Nepal Aid Groups, as well as the India, Pakistan, and Sri Lanka and Turkey Consortia, and the Consultative Groups for Ghana, Kenya, Malawi, Mauritania, Mauritius, the Philippines, Somalia, Yugoslavia, and Zaïre. Staff of the Fund also attended a special meeting of aid donors for The Gambia, and relevant documentation was provided to that group. In addition, the Fund provided documents for a meeting of the Intergovernmental Group on Indonesia.

EXTERNAL RELATIONS

During the financial year the Fund intensified its efforts to explain its activities and policies to a wider audience, in line with increased emphasis placed in member countries by the general public and the press on monetary reform issues, multilateral surveillance, and new initiatives to deal with the debt situation. The Managing Director and senior staff participated in a number of international and national forums where they delivered addresses on a range of international economic issues. Members of the Fund staff also delivered papers at a number of conferences, seminars, and symposia. The program of seminars for nonofficials continued to play an important role in the Fund’s external relations effort. The eleventh in the series was held in English in Wellington, New Zealand, on February 17-19, 1986. The twelfth seminar was conducted in French in Tunis, from April 28 to 30. The proceedings of these seminars will be published in the languages in which they were conducted.

During the financial year, the Fund expanded its contacts with the news media in Africa, Asia, Latin America, and the Pacific Basin in the continuing effort to improve public understanding of the institution and its role in the international monetary system. Representatives of academic, business, labor, political, and financial institutions visited Fund headquarters under the Visitors’ Program to attend presentations on the work and role of the Fund. A 24-minute film “The IMF at Work,” describing the Fund’s origins, purposes, and activities in layman’s terms, was completed and is available in four languages—English, French, German, and Spanish—to the authorities of members, television companies, and other interested parties. Work on the IMF Visitors’ Center in Washington, D.C., was also finished during the year. The Center was opened to the public on June 20, 1986.

The Fund continued to expand the number of titles available in its publications program. One highlight of this program was the publication of the third set of volumes of the Fund’s history, “The International Monetary Fund 1972-1978: Cooperation on Trial,” by the Fund’s Historian, Margaret Garritsen de Vries. Toward the end of the financial year, a new series of World Economic and Financial Surveys was established, comprising the World Economic Outlook and other staff studies of a periodic nature, dealing with such topics as commodity price developments, export credit policies, and international capital markets. The other publications issued during the financial year, including books, seminar volumes, and Occasional Papers, are listed in Appendix II, Table II.17.

EXECUTIVE DIRECTORS AND STAFF

A list of Executive Directors and their voting power on April 30, 1986 is given in Appendix V. The changes in membership of the Executive Board during 1985/86 are shown in Appendix VI.

In the financial year ended April 30, 1986, there were 114 appointments to the Fund’s regular staff and 90 separations. At the end of the financial year, the staff numbered 1,685 and was drawn from 98 countries.

Table II.1.Exchange Rate Arrangements as of June 30, 19861
Flexibility Limited vis-à-vis a Single
Pegged toCurrency or Group of CurrenciesMore flexible
Single currencyCurrency compositeAdjusted
U.S. dollarFrench francOtherSDROtherSingle currency2Cooperative arrangementsaccording to a set of indicatorsManaged floatingIndependently floating
Antigua andBeninBhutan (IndianBurmaAlgeria3Afghanistan1Belgium3Brazil4ArgentinaAustralia
BarbudaBurkina Fasorupee)BurundiAustriaBahrain5DenmarkChile3,4Costa Rica3Bolivia
The Bahamas3CameroonKiribatiIran, IslamicBangladesh3Qatar5FranceColombiaEcuador3Canada
BarbadosCentral African(AustralianRepublic ofBotswanaSaudi Arabia5Germany,PortugalEl Salvador3Dominican
BelizeRepublicdollar)JordanCape VerdeUnited ArabFederalSomalia3Republic
Emirates5Republic ofGreece
DjiboutiChadLesotho3 (SouthKenya6ChinaIrelandGuinea-BissauThe Gambia
DominicaComorosAfrican rand)Libya10CyprusIcelandJamaica
Egypt3CongoSwaziland (SouthRwandaFijiItaly7India8Japan
EthiopiaCôte d’l voireAfrican rand)Sao Tome andFinland6Luxembourg3Lebanon
GhanaPrincipeGuyanaNetherlandsIndonesiaNew Zealand
EquatorialTongaIsrael
GrenadaGuinea(AustralianSeychellesHungaryKoreaPhilippines
Guatemala3Gabondollar)VanuatuKuwaitMexico3Sierra Leone3
Guinea3MaliMadagascarMoroccoSouth Africa3
HaitiNigerMalawi
HondurasMalaysia6Nigeria3United Kingdom
SenegalPakistanUnited States
IraqTogoMaldivesSpain
Lao People’sMaltaSri LankaUruguay
DemocraticMauritaniaTurkeyZaïre
Republic3MauritiusZambia
LiberiaMozambiqueUganda3
Nicaragua3Western Samoa
OmanNepalYugoslavia
PanamaNorway
Papua New Guinea
Paraguay3Poland11
Peru3
St. Christopher andRomania
NevisSingapore
St. LuciaSolomon Islands
Sudan3
St. Vincent and the
GrenadinesSweden9
SurinameTanzania
Syrian ArabThailand
Republic3Tunisia
Trinidad andZimbabwe
Tobago
Venezuela3
Viet Nam
Yemen Arab
Republic
Yemen, People’s
Democratic
Republic of

No current information is available relating to Democratic Kampuchea.

In all cases listed in this column, the U.S. dollar was the currency against which exchange rates showed limited flexibility.

Member maintains dual exchange markets involving multiple exchange arrangements. The arrangement shown is that maintained in the major market.

Member maintains a system of advance announcement of exchange rates.

Exchange rates are determined on the basis of a fixed relationship to the SDR, within margins of up to ±7.25 percent. However, because of the maintenance of a relatively stable relationship with the U.S. dollar, these margins are not always observed.

The exchange rate is maintained within margins of ±2.25 percent.

Margins of ±6 percent are maintained with respect to the currencies of other countries participating in the exchange rate mechanism of the European Monetary System.

The exchange rate is maintained within margins of ±5 percent on either side of a weighted composite of the currencies of the main trading partners.

The exchange rate is maintained within margins of ±1.5 percent.

The exchange rate is maintained within margins of ±7.5 percent.

The buying and selling rates are set weekly within margins of 0.5 percent about the midpoint rate.

No current information is available relating to Democratic Kampuchea.

In all cases listed in this column, the U.S. dollar was the currency against which exchange rates showed limited flexibility.

Member maintains dual exchange markets involving multiple exchange arrangements. The arrangement shown is that maintained in the major market.

Member maintains a system of advance announcement of exchange rates.

Exchange rates are determined on the basis of a fixed relationship to the SDR, within margins of up to ±7.25 percent. However, because of the maintenance of a relatively stable relationship with the U.S. dollar, these margins are not always observed.

The exchange rate is maintained within margins of ±2.25 percent.

Margins of ±6 percent are maintained with respect to the currencies of other countries participating in the exchange rate mechanism of the European Monetary System.

The exchange rate is maintained within margins of ±5 percent on either side of a weighted composite of the currencies of the main trading partners.

The exchange rate is maintained within margins of ±1.5 percent.

The exchange rate is maintained within margins of ±7.5 percent.

The buying and selling rates are set weekly within margins of 0.5 percent about the midpoint rate.

Table II.2.Purchases Under Tranche Policies and Special Facilities, 1980-86(In billions of SDRs)
Financial Year Ended April 30
1980198119821983198419851986
Purchases under tranche policies1.313.605.336.178.884.813.34
First credit tranche0.160.780.020.0310.292
Upper credit tranches0.931.902.733.684.162.772.55
Extended Fund facility0.220.922.582.464.722.040.50
Purchases under special facilities0.890.781.634.091.281.250.60
Compensatory financing facility0.860.781.633.741.181.250.60
Buffer stock financing facility0.030.350.10
Total2.204.386.9610.2610.166.063.94

Less than SDR 50 million.

Emergency assistance.

Less than SDR 50 million.

Emergency assistance.

Table II.3.Fund Stand-By Arrangements for Members, Financial Year Ended April 30, 1986(In millions of SDRs)
Total NumberAmount ApprovedAmount ApprovedAmount Not
of Stand-BysCurrent Arrangementin 1984/85in 1985/86Amount NotPurchased
ApprovedOf which:Of which:Purchasedas of
for MemberDate ofDate ofborrowedborrowedat ExpirationApril 30,
MemberSince 1953inceptionexpirationTotalresourcesTotalresourcesor Cancellation1986
Argentina11Dec.28,1984May31,198611,182.50591.25236.50
Bangladesh5Dec.2,1985June30,1987180.00120.00
Belize1Dec.3,1984May31,19867.131.18
Central African5July6,1984July5,198515.00
RepublicSept.23,1985Mar.22,198715.007.5014.00
Costa Rica9Mar.13,1985Apr.12,198654.0027.0020.00
Côte d’I voire2Aug.3,1984May2,198582.7520.69
June3,1985June2,198666.2033.1013.24
Dominica1July18,1984July17,19851.400.43
Dominican Republic3Apr.15,1985Apr.14,198678.50
Ecuador11Mar.11,1985Mar.10,1986105.5052.75
Equatorial Guinea2June28,1985June27,19869.203.80
Ghana7Aug.27,1984Dec.31,1985180.0096.53
Guinea2Feb.3,1986Mar.2,198733.0024.00
Haiti20Nov.7,1983Sept.30,19852(60.00)(45.23)39.00
Jamaica5June22,1984June21,198564.00
July17,1985May31,1987115.0081.6273.40
Kenya6Feb.8,1985Feb.7,198685.2042.60
Korea16July12,1985Mar.10,1987280.00160.00
Liberia18Dec.7,1984June6,1986342.7821.3934.28
Madagascar6Apr.23,1985Apr.22,198629.5014.75
Mali8Nov.8,1985Mar.31,198722.8616.1716.36
Mauritania5Apr.12,1985Apr.25,198612.00
Apr.26,1986Apr.25,198712.0012.00
Mauritius6Mar.1,1985Aug.31,198649.0024.5014.00
Morocco10Sept.12,1985Feb.28,i987200.00100.00190.00
Nepal2Dec.23,1985Jan.22,198718.658.40
Niger3Dec.5,1984Dec.4,198516.008.00
Dec.5,1985Dec.4,198613.486.748.09
Panama16July15,1985Mar.31,198790.0045.0055.00
Philippines17Dec.14,1984June13,1986615.00307.50212.00
Senegal5Jan.16,1985July15,198676.6050.4210.50
Somalia11Feb.22,1985Sept.30,198622.1011.0520.10
Sudan9June25,1984June24,198590.0045.0070.00
Thailand4June14,1985Mar.31,1987400.00216.24250.00
Togo5May7,1984May6,198519.00
May17,1985May16,198615.368.71
Uruguay14Sept.27,1985Mar.26,1987122.8561.4387.75
Western Samoa6July9,1984July8,19853.381.69
Yugoslavia10Apr.18,1984May15,19852(370.00)(185.00)
May16,1985May15,1986300.00150.0067.50
Zaïre6Apr.24,1985Apr.23,1986162.00
Zambia6July26,1984Apr.30,19864225.00112.50145.00
Feb.21,1986Feb.28,1988229.80114.90194.80
Total3,218.341,406.932,123.40841.41329.401,792.62

Amount of arrangement reduced to SDR 1,182.50 million from SDR 1,419 million.

Arrangement approved in financial year 1983/84.

Arrangement canceled on December 6, 1985.

Arrangement canceled on February 7, 1986.

Amount of arrangement reduced to SDR 1,182.50 million from SDR 1,419 million.

Arrangement approved in financial year 1983/84.

Arrangement canceled on December 6, 1985.

Arrangement canceled on February 7, 1986.

Table II.4.Purchases of Currencies and SDRs from the Fund, Financial Year Ended April 30, 1986(In millions of SDRs)
Under Tranche PoliciesUnder Decision on
Under stand-by arrangementsExtended Fund facilityPurchases Financed with
MemberWithin reserveCreditOrdinaryEnlarged accessOrdinaryEnlarged accessCompensatoryTotalOrdinary resourcesEnlarged access
PurchasingtranchetrancheresourcesresourcesresourcesresourcesfinancingPurchasesCurrenciesSDRsresources
Argentina354.75354.75709.50135.50219.25354.75
Bangladesh60.0060.0037.0023.00
Belize3.573.570.902.67
Central African Republic7.500.508.007.500.50
Chad7.007.007.00
Chile93.7593.7570.60258.1041.21123.1493.75
Costa Rica5.005.0010.001.004.005.00
Côte d’I voire26.4826.4852.9626.4826.48
Dominican Republic50.4815.5065.9820.0045.98
Ecuador42.2042.2084.406.0036.2042.20
Equatorial Guinea5.405.405.40
Ethiopia35.3035.3035.30
Ghana53.4766.53120.002.0051.4766.53
Guinea9.009.009.00
Jamaica56.8020.8077.608.0048.8020.80
Kenya27.7027.7037.9093.3020.5045.1027.70
Korea120.00120.0080.0040.00
Madagascar13.0013.0026.000.3512.6513.00
Malawi8.0015.0023.0023.00
Mali3.253.256.503.253.25
Mauritania9.609.602.806.80
Mauritius10.5010.5021.003.507.0010.50
Mexico291.3820.06275.74587.18311.44275.74
Morocco5.005.00115.10125.1030.0090.105.00
Nepal10.2510.2510.25
Niger7.507.5014.997.507.50
Pakistan88.5788.5738.5750.00
Panama17.5017.5035.006.0011.5017.50
Philippines159.00159.00318.0025.00134.00159.00
Senegal14.8828.6243.5014.8828.62
South Africa69.9869.9869.98
Swaziland1.761.761.76
Thailand75.0075.00185.00335.0040.00220.0075.00
Togo6.658.7115.366.658.71
Uruguay17.5517.5566.10101.2030.0053.6517.55
Western Samoa0.420.420.840.420.42
Yugoslavia161.25161.25322.5054.00107.25161.25
Zaïre122.00122.0013.00109.00
Zambia17.5017.5068.80103.8044.0042.3017.50
Total160.30291.381,473.181,076.76113.81384.49601.3014,101.22674.631,965.341,461.25

Of which, SDR 111.3 million was purchased in accordance with the decision on compensatory financing of fluctuations in the cost of cereal imports, Executive Board Decision No. 6860-(81/81), adopted May 13, 1981, as amended by Decisions Nos. 7602-(84/3), January 6, 1984, and 7967-(85/69), May 3, 1985, Selected Decisions, Twelfth Issue, pages 88-93.

Of which, SDR 111.3 million was purchased in accordance with the decision on compensatory financing of fluctuations in the cost of cereal imports, Executive Board Decision No. 6860-(81/81), adopted May 13, 1981, as amended by Decisions Nos. 7602-(84/3), January 6, 1984, and 7967-(85/69), May 3, 1985, Selected Decisions, Twelfth Issue, pages 88-93.

Table II.5.Summary of Members’ Purchases and Repurchases, Financial Years Ended April 30, 1948–86(In millions of SDRs)
YearTotal Purchases by MembersTotal Repurchases by Members
1948606.04
1949119.44
195051.8024.21
195128.0019.09
195246.2536.58
195366.12184.96
1954231.29145.11
195548.75276.28
195638.75271.66
19571,114.0575.04
1958665.7386.81
1959263.52537.32
1960165.53522.41
1961577.00658.60
19622,243.201,260.00
1963579.97807.25
1964625.90380.41
19651,897.44516.97
19662,817.29406.00
19671,061.28340.12
19681,348.251,115.51
19692,838.851,542.33
19702,995.651,670.69
19711,167.411,656.86
19722,028.493,122.33
19731,175.43540.30
19741,057.72672.49
19755,102.45518.08
19766,591.42960.10
19774,910.33868.19
19782,503.014,485.01
19793,719.584,859.18
19802,433.263,775.83
19814,860.012,852.93
19828,040.622,009.88
198311,391.891,555.12
198411,517.732,017.65
19856,288.872,730.39
19864,101.224,289.01
Total97,319.54147,790.702

Includes reserve tranche purchases.

Excludes sales of currency and adjustments that have the effect of repurchase.

Includes reserve tranche purchases.

Excludes sales of currency and adjustments that have the effect of repurchase.

Table II.6.Summary of Stand-By Arrangements That Became Effective During the Financial Years Ended April 30, 1953-861(In millions of SDRs)
YearNumberAmount
1953255.00
1954262.50
1955240.00
1956247.50
195791,162.28
1958111,043.78
1959151,056.63
196014363.88
196115459.88
1962241,633.13
1963191,531.10
1964192,159.85
1965242,159.05
196624575.35
196725591.15
1968322,352.36
196926541.15
1970232,381.28
197118501.70
197213313.75
197313321.85
1974151,394.00
197514389.75
1976181,188.02
1977194,679.64
1978181,285.09
197914507.85
1980242,479.36
1981215,197.93
1982193,106.21
1983275,449.98
1984254,287.33
1985243,218.33
1986182,123.40
Total58854,660.06

Includes renewals and extensions for one year or less, except the renewals each six months of the stand-by arrangement for Belgium granted in June 1952 until that member purchased the full amount of the equivalent of SDR 50 million in April 1957.

Includes renewals and extensions for one year or less, except the renewals each six months of the stand-by arrangement for Belgium granted in June 1952 until that member purchased the full amount of the equivalent of SDR 50 million in April 1957.

Table II.7.Extended Fund Facility Arrangements for Members, July 7, 1975-April 30, 1986(In millions of SDRs)
MemberDate of

Inception
Date of

Expiration
Total

Amount of

Arrangement
Of Which:

Borrowed

Resources
Amount Not

Purchased

at Expiration or

Cancellation
Of Total

Amount Approved

Amount Not

Purchased as of

April 30, 1986
Approved in previous
financial years
Bangladesh12/8/8012/7/83800.001480.80580.00
Brazil3/1/832/28/864,239.382,842.881,496.25
Costa Rica6/17/816/16/84276.752190.65254.25
Còte d’I voire2/27/812/22/84484.50324.9038.47
Dominica2/6/812/5/848.554.49
Dominican Republic1/21/831/20/86371.253255.75247.50
Egypt7/28/787/27/81600.00525.00
Gabon6/27/8012/31/8234.0034.00
Grenada8/24/838/23/8613.5048.9812.37
Guyana6/25/796/24/8262.75435.0052.75
7/25/807/24/83150.006116.3798.27
Haiti10/25/7810/24/8132.2021.40
Honduras6/28/796/27/8247.6023.70
India11/9/8111/8/845,000.0072,595.501,100.00
Jamaica6/9/786/8/81200.008130.00
6/11/796/10/81260.009227.10175.00
4/13/814/12/84477.7010390.5574.90
Kenya7/7/757/6/7867.2059.50
Malawi9/19/839/18/8681.001162.4724.00
Mexico1/1/7712/31/79518.0012518.00
1/1/8312/31/853,410.632,287.13907.95
Morocco10/8/8010/7/83810.0013600.00663.00
3/9/8110/7/83817.0514567.00680.55
Pakistan11/24/8011/23/831,268.0015869.00919.00
12/2/8111/23/83919.00490.12189.00
Peru6/7/826/6/85650.0016311.56385.00
Philippines4/2/764/1/79217.0017
Senegal8/8/808/7/83184.8018126.00143.70
Sierra Leone3/30/812/22/84186.0019121.81152.50
Sri Lanka1/1/7912/31/81260.30
Sudan5/4/795/3/8242 7.0020303.80176.00
Zaïre6/22/816/21/84912.0021632.94737.00
Zambia5/8/815/7/84800.0022674.00500.00
Subtotal24,586.1614,518.8010,895.0624.00
Approved during
financial year 1985/86
Chile8/15/858/14/88750.00375.00562.50
Total25,336.1614,893.8010,895.06586.50

Arrangement canceled as of June 21, 1982.

Canceled as of December 20, 1982 and replaced by a stand-by arrangement.

Arrangement canceled as of January 17, 1985.

Arrangement canceled as of January 23, 1984.

Canceled as of June 24, 1980.

Arrangement augmented by SDR 50.00 million in July 1981 to a total of SDR 150.00 million. Arrangement canceled as of July 22, 1982.

Arrangement canceled as of May 1, 1984.

Canceled as of June 10, 1979.

Canceled as of April 12, 1981.

Arrangement augmented by SDR 241.30 million in June 1981 to a total of SDR 477.70 million.

Amount of arrangement decreased from SDR 100 million.

Includes augmentation by repurchase equivalent to SDR 100.00 million.

Canceled as of March 8, 1981.

Arrangement canceled as of April 25, 1982 and replaced by a stand-by arrangement.

Canceled as of December 1, 1981.

Arrangement canceled as of April 24, 1984 and replaced by a stand-by arrangement.

Includes augmentation by repurchase equivalent to SDR 38.75 million.

Canceled as of September 10, 1981 and replaced by a stand-by arrangement.

Arrangement augmented by SDR 22.30 million in June 1981 to a total of SDR 186.00 million. Arrangement canceled as of April 6, 1982.

Arrangement augmented by SDR 227.00 million in November 1980, canceled on February 17, 1982, and replaced by a stand-by arrangement.

Arrangement canceled as of June 21, 1982.

Arrangement canceled as of July 3, 1982.

Arrangement canceled as of June 21, 1982.

Canceled as of December 20, 1982 and replaced by a stand-by arrangement.

Arrangement canceled as of January 17, 1985.

Arrangement canceled as of January 23, 1984.

Canceled as of June 24, 1980.

Arrangement augmented by SDR 50.00 million in July 1981 to a total of SDR 150.00 million. Arrangement canceled as of July 22, 1982.

Arrangement canceled as of May 1, 1984.

Canceled as of June 10, 1979.

Canceled as of April 12, 1981.

Arrangement augmented by SDR 241.30 million in June 1981 to a total of SDR 477.70 million.

Amount of arrangement decreased from SDR 100 million.

Includes augmentation by repurchase equivalent to SDR 100.00 million.

Canceled as of March 8, 1981.

Arrangement canceled as of April 25, 1982 and replaced by a stand-by arrangement.

Canceled as of December 1, 1981.

Arrangement canceled as of April 24, 1984 and replaced by a stand-by arrangement.

Includes augmentation by repurchase equivalent to SDR 38.75 million.

Canceled as of September 10, 1981 and replaced by a stand-by arrangement.

Arrangement augmented by SDR 22.30 million in June 1981 to a total of SDR 186.00 million. Arrangement canceled as of April 6, 1982.

Arrangement augmented by SDR 227.00 million in November 1980, canceled on February 17, 1982, and replaced by a stand-by arrangement.

Arrangement canceled as of June 21, 1982.

Arrangement canceled as of July 3, 1982.

Table II.8.Repurchases of Currencies from the Fund, Financial Year Ended April 30, 1986(In millions of SDRs)
Repurchases in Respect of Purchases of
Borrowed ResourcesOrdinary Resources
Under
SupplementaryEnlargedExtended Compen-guidelines
MemberfinancingaccessCreditFundsatoryBufferfor early
RepurchasingfacilityresourcestranchefacilityfinancingstockrepurchaseTotal
Argentina25.165.090.1
Bangladesh27.53.516.131.478.5
Barbados0.41.82.95.1
Bolivia6.42.22.29.220.0
Brazil62.362.3
Burma13.53.216.7
Central African Republic4.93.38.2
Chad2.72.7
Chile10.236.947.0
Costa Rica4.11.60.915.121.7
Cote d’lvoire29.314.37.457.0107.9
Cyprus2.12.1
Dominica0.50.11.01.6
Dominican Republic18.818.8
Egypt12.512.5
El Salvador8.528.236.7
Equatorial Guinea1.63.14.7
Ethiopia7.316.811.3135.4
Fiji6.86.8
Gambia, The0.31.21.32.8
Grenada1.50.7__2.2
Guatemala9.638.347.8
Guinea1.41.4
Guinea-Bissau0.90.9
Haiti0.53.71.86.412.5
Honduras6.91.714.523.2
Hungary11.7249.6227.0288.3
Iceland2.72.7
India37.5112.566.5216.5
Indonesia264.9264.9
Jamaica45.32.18.216.512.784.8
Kenya21.736.022.680.3
Korea154.088.173.1315.2
Lao People’s Democratic Republic5.45.4
Liberia0.63.71.45.7
Madagascar5.61.215.711.834.3
Malawi7.08.00.815.8
Malaysia259.6259.6
Mali7.07.0
Mauritania4.08.712.7
Mauritius14.09.620.343.8
Mexico25.125.1
Morocco34.49.345.712.9118.2220.5
Nepal2.62.6
Pakistan92.131.419.045.1187.6
Panama9.418.928.2
Peru24.43.225.052.6
Philippines83.220.824.8128.8
Romania14.062.199.9176.0
St. Lucia0.90.81.6
St. Vincent0.20.70.8
Senegal10.312.23.421.047.0
Sierra Leone1.31.62.9
Solomon Islands0.40.40.8
Somalia6.212.919.2
South Africa79.579.5
Sri Lanka24.615.90.2340.6
Swaziland1.11.1
Tanzania1.11.93.0
Thailand44.985.593.04.3227.6
Togo1.83.35.1
Turkey257.54.8262.3
Uganda16.929.922.569.3
Uruguay11.811.022.8
Western Samoa0.41.01.4
Yemen, People’s Democratic Republic of5.85.8
Yugoslavia162.9167.1330.1
Zaïre26.924.52.553.5107.3
Zambia55.81.241.398.3
Zimbabwe18.718.7
Total1,034.8309.9959.9144.31,286.413.6524.54,289.0
Note: Total includes repurchases equivalent to SDR 15.6 million relating to purchases made prior to the Second Amendment and attributed to the reserve tranche.

Of which, SDR 4.500 million was repurchased in advance of the regular schedule.

Repurchases made in advance of the regular schedule.

Of which, SDR 0.123million was repurchased in advance of the regular schedule.

Note: Total includes repurchases equivalent to SDR 15.6 million relating to purchases made prior to the Second Amendment and attributed to the reserve tranche.

Of which, SDR 4.500 million was repurchased in advance of the regular schedule.

Repurchases made in advance of the regular schedule.

Of which, SDR 0.123million was repurchased in advance of the regular schedule.

Table II.9.Outstanding Fund Credit by Facility and Policy, 1980-86(In millions of SDRs)
Financial Year Ended April 30
1980198119821983198419851986
As percentAs percentAs percentAs percentAs percentAs percentAs percent
Amountof totalAmountof totalAmountof totalAmountof totalAmountof totalAmountof totalAmountof total
Regular facilities1,60620.02,34924.63,20621.74,72120.05,19716.45,51115.86,31518.2
Compensatory financing facility2,87535.82,61727.43,64324.66,83729.07,30423.07,49021.46,43018.6
Buffer stock financing facility740.93071.33751.22370.7730.2
Oil facility2,49431.01,58116.65653.8270.1
Extended Fund facility4876.198010.32,11514.33,31714.15,56817.56,52918.76,49818.8
Supplementary financing facility5026.22,01821.14,11227.86,03925.66,92021.86,31018.05,27615.2
Enlarged access policy1,1607.82,3429.96,37820.18,89625.410,04729.0
Total8,038100.09,545100.014,802100.023,590100.031,742100.034,973100.034,640100.0
Table II.10.Flow of Transactions in the General Resources Account and Resulting Stocks, 1980–86(In millions of SDRs)
Financial Year Ended April 30
Type of Transaction1980198119821983198419851986
Total purchases2,4334,8608,04111,39211,5186,2894,101
Reserve tranche2224741,0801,1341,354229160
Credit tranches1,1062,6822,7483,7034,1642,7682,841
Buffer stock financing facility26352102
Compensatory financing facility8637841,6353,7401,1801,248601
Extended Fund facility2169202,5782,4634,7182,044498
Total repurchases3,7762,8532,0101,5552,0182,7304,289
Outstanding Fund credit8,3069,54514,80223,59031,74234,97334,640
Outstanding borrowings3,7534,3236,77310,95213,79114,20314,556
In connection with oil facility2,4741,52852618
Under General Arrangements to Borrow777777777777
Supplementary financing facility5022,0184,1126,0376,9156,2395,038
Under policy on enlarged access1,3584,1206,8767,9649,518
Holdings of the General Resources Account at
end of year1
Usable currencies210,60023,00017,00014,40032,90037,30034,400
SDRs1,4075,4455,4564,3356,4374,6162,722
Gold33,6363,6203,6203,6203,6203,6203,620
Reserve tranche positions of members at end of year8,38013,12515,62120,59227,41528,29026,087

Total excludes Fund’s gold holdings.

“Usable currencies” are those that are available to the Fund for net sales through the operational budget, except for those currencies held by the Fund in excess of quota. Since the Second Amendment became effective on April 1, 1978, the criterion for including currencies for net sales is that the members concerned have a balance of payments and reserve position that the Fund considers “sufficiently strong” for that purpose.

Valued at SDR 35 a fine ounce (0.888671 gram of fine gold per SDR).

Total excludes Fund’s gold holdings.

“Usable currencies” are those that are available to the Fund for net sales through the operational budget, except for those currencies held by the Fund in excess of quota. Since the Second Amendment became effective on April 1, 1978, the criterion for including currencies for net sales is that the members concerned have a balance of payments and reserve position that the Fund considers “sufficiently strong” for that purpose.

Valued at SDR 35 a fine ounce (0.888671 gram of fine gold per SDR).

Table II.11.Borrowing in Connection with Purchases Under the Supplementary Financing Facility and Repayments to Lenders, May 29, 1980–April 30, 1986(In millions of SDRs)
LenderTotal Amount of AgreementAmount BorrowedAmount Undrawn at Expiration of Agreements1Amount Repaid2Borrowing Outstanding as of April 30, 1986
Abu Dhabi150.00105.2244.7838.7966.43
Austrian National Bank50.0050.0012.3637.64
Banque Nationale de Belgique150.0012.34137.669.263.08
Canada200.00173.6126.3912.68160.93
Deutsche Bundesbank1,050.001,050.003230.16647.83
Banco de Guatemala30.008.36421.648.36
Japan900.00886.6913.31262.54624.15
Central Bank of Kuwait400.00400.00107.33292.67
De Nederlandsche Bank, N.V.100.00100.0026.4873.52
Central Bank of Nigeria220.0069.855150.1569.85
Saudi Arabian Monetary Agency1,934.001,906.74327.26689.771,388.98
Swiss National Bank650.00650.00181.96468.04
United States1,450.001,450.00404.771,045.23
Central Bank of Venezuela500.00369.42130.58139.45229.97
Total7,784.007,232.22551.782,193.755,038.47

Agreements lapsed on February 22, 1984.

Repayments began on November 24, 1982.

Claims totaling SDR 172.01 million under the supplementary financing facility were transferred by the Deutsche Bundesbank to the Saudi Arabian Monetary Agency against U.S. dollars on November 13, 1980.

Claims totaling SDR 8.36 million were repaid in advance to the Banco de Guatemala on February 8, 1982. This encashment was refinanced by a call on the Swiss National Bank.

Claims totaling SDR 69.85 million were repaid in advance to the Central Bank of Nigeria on April 8 and 9, 1982. This encashment was financed by calls in equal amounts under the supplementary financing facility borrowing agreements with Japan and the United States, in agreement with these lenders.

Agreements lapsed on February 22, 1984.

Repayments began on November 24, 1982.

Claims totaling SDR 172.01 million under the supplementary financing facility were transferred by the Deutsche Bundesbank to the Saudi Arabian Monetary Agency against U.S. dollars on November 13, 1980.

Claims totaling SDR 8.36 million were repaid in advance to the Banco de Guatemala on February 8, 1982. This encashment was refinanced by a call on the Swiss National Bank.

Claims totaling SDR 69.85 million were repaid in advance to the Central Bank of Nigeria on April 8 and 9, 1982. This encashment was financed by calls in equal amounts under the supplementary financing facility borrowing agreements with Japan and the United States, in agreement with these lenders.

Table II.12.Transfers of SDRs, January 1, 1970–April 30, 1986(In millions of SDRs)
Annual AverageFinancial Year Ended April 30Total
January 1, 1970–January 1, 1970–
April 30, 1980198119821983198419851986April 30, 1986
Transfers among participants and prescribed holders
Transactions with designation
From own holdings21550366196889984494,989
From purchases of SDRs from Fund2351,3791,2131,7452,3132,0551,36012,492
Transactions by agreement5374181,2421,2813,1752,7062,67717,050
Prescribed operations1583961,1941611112,021
Net interest on SDRs592232452731883263132,175
Total1,0452,5253,5204,6646,9595,3454,91038,726
Transfers from participants to General
Resources Account
Repurchases3929308385663927171,1838,672
Charges3325879681,4972,1682,9272,91514,494
Quota payments215,091266836,19514111,871
Interest received on General Resources
Account holdings262666574441476063122,706
Assessments122234428
Total7736,8752,7322,5938,9054,2684,41537,771
Transfers from General Resources Account to participants and prescribed holders
Purchases3992,0332,0352,4193,8762,5951,96519,040
Repayments of Fund borrowings10161144287871295331,885
Interest on Fund borrowings6501432242024467211,852
In exchange for other members’ currencies
Acquisitions to pay charges1271623309531,5503,031
Acquisitions to make quota payments341341
Reconstitution149201,555
Remuneration482193488611,5731,9521,5316,979
Other24132320351410365
Total6362,8372,7213,7146,8036,0896,30935,049
Total transfers2,45412,2378,97210,97022,66715,70315,634111,546
General Resources Account holdings at end of period1,4075,4455,4564,3356,4374,6162,7222,722
Table II.13.Summary of Transactions and Operations in SDRs, Financial Year Ended April 30, 1986(In thousands of SDRs)
Positions as at April 30, 1986
Receipts fromTransfers toReceiptsTransfersInterest,
Participants andParticipants andfrom theto theCharges,Holdings as
TotalPrescribed HoldersPrescribed HoldersGeneralGeneralandNetpercent of
HoldingsResourcesResourcesAssess-cumulativecumulative
HoldersApril 30, 1985DesignatedOtherDesignatedOtherAccountAccountment (Net)Holdingsallocationsallocations
Participants
Afghanistan13,222-1,08512,13726,70345.5
Algeria115,2687,7509,158-777131,399128,640102.1
Antigua and Barbuda22
Argentina28,189132,341200,666244,464145,233-24,55634,539318,37010.8
Australia237,66557,0241,595-17,048279,236470,54559.3
Austria179,03917,50252,00052,98522,654+ 597218,8071 79,045122.2
Bahamas, The604421-76126410,2302.6
Bahrain13,211+ 56113,7726,200222.1
Bangladesh6,3656,00011,00040,55631,206-3,4577,25847,12015.4
Barbados6611,6472,8553,910-6156388,0397.9
Belgium418,80060,540196,04323,158-7,745298,709485,24661.6
Belize1072,6463,086548+ 22
Benin208550-732259,4090.3
Bhutan5926+ 590
Bolivia741,2265,2664,457-2,0763326,7030.1
Botswana8,807654825+ 38010,6664,359244.7
Brazil7,438181,223238,114338,542-27,59560,639358,67016.9
Burkina Faso5,627306-2965,6389,40959.9
Burma2,2222,0264,3115,109-3,3816943,4740.2
Burundi215599767-1,05552713,6973.8
Cameroon5,350-1,5333,81724,46315.6
Canada53,518333,153211,59416,508-53,780137,805779,29017.7
Cape Verde9741-419762015.6
Central African Republic1,1092,7007,52210,228-5075959,3256.4
Chad2281,1632,3657,0003,037-6272,3609,40925.1
Chile12,18937,819122,164167,47670,654-9,35615,311121,92412.6
China419,53311,802+ 14,947446,282236,800188.5
Colombia2,391116,3154,400-8,905114,201114,27199.9
Comoros239-3820171628.0
Congo1,968-6231,3469,71913.8
Costa Rica1784,1553,98817,80514,048-1,8102,29223,7269.7
Cote d’lvoire6,2635,70019,86068,36451,699-2,6996,06937,82816.0
Cyprus60530058-1,50534219,4381.8
Denmark163,67613,50010,291-781186,686178,864104.4
Djibouti39037-623661,17831.0
Dominica116887851-4510759218.1
Dominican Republic3,6663,50024,84852,50328,596-2,0894,13631,58513.1
Ecuador4,13011,73536,41122,039-2,10728,12932,92985.4
Egypt3,6996,1506,7002,955-10,5733,021135,9242.2
El Salvador642,5544,54143,358-1,9241,82024,9857.3
Equatorial Guinea42,0274805,4145,132-4221,4105,81224.3
Ethiopia1,20410,66690010,974-81897911,1608.8
Fiji8,8164,0003277,884-225,2366,95875.3
Finland149,6224,1946546,103+ 737161,309142,690113.0
France627,800310,990130,72664,26131,531840,7931,079,87077.9
Gabon4,7585003,798-82463614,0914.5
Gambia, The1,5381,132-4065,121
Germany, Federal Republic of1,400,90958,118337,663360,581+ 15,1731,497,1181,210,760123.7
Ghana7,28325012,00059,85742,868-4,2418,28162,98313.1
Greece2,1497,663-8,0231,789103,5441.7
Grenada26312264-7129300.2
Guatemala2,44930,89211,39740,870-2,1461,72127,6786.2
Guinea5598,95510,762958-1,376321 7,6040.2
Guinea-Bissau6316227-951,212
Guyana1,862725-1,13714,530
Haiti507,5176,502-1,06513,697
Honduras761,9179,74610,254-1,4632219,0570.1
Hungary9,1419,43661,95480,047+ 142625
Iceland8571,6001,1001,552-1,25574916,4094.6
India196,368540,00018,019555,153-37,974161,260681,17023.7
Indonesia11,41964,56353113,411-16,67546,426238,95619.4
Iran, Islamic Republic of322,2591211,627+ 6,273330,281244,056135.3
Iraq1,4361,2692,634-5,338168,464
Ireland92,2164,1486,462+ 599103,42587,263118.5
Israel2,2464,0003,900-8,2891,857106,3601.7
Italy737,72584,443425,000120,00059,083-62336,189702,40047.9
Jamaica38,910103,15461,008-3,13410240,6130.3
Japan2,016,365308,548104,726+ 89,6051,902,148891,690213.3
Jordan15,32216,5706,8704,144-18620,69216,887122.5
Kampuchea, Democratic15,417
Kenya3,83994,21516,90045,245118,198-2,4155,78636,99015.6
Korea10,685349,875109,650454,110-3,99812,10272,91116.6
Kuwait83,08623,147+ 5,197111,43026,744416.6
Lao People’s Democratic Republic351912310-7312219,4092.4
Lebanon1,0491,186-2342,0014,39345.5
Lesotho914246-2239373,73925.1
Liberia11,96010,665-1,29521,007
Libyan Arab Jamahiriya138,40016,979+ 6,866162,24658,771276.1
Luxembourg16,703515-817,21116,955101.5
Madagascar1,7381,8007,32819,37912,274-1,4771,83919,2709.5
Malawi1,66710,2004558,41417,755-7681,30410,97511.9
Malaysia95,61621,4618,06814,149-3,394107,602139,04877.4
Maldives725-21112823.7
Mali1,1251,6357,4045,658-1,2112415,9120.2
Malta36,6471,842+ 2,08440,57311,288359.4
Mauritania1,53318,8987,19713,6936,9732,871-6822,9609,71930.5
Mauritius1,2759957,00020,88213,911-1,1711,06915,7446.8
Mexico7387,700242,439433,655220,503-22,36836,117290,02012.5
Morocco8,94441,64258,4009,744154,038127,538-6,1952,74885,6893.2
Nepal22530210,19910,922283-6283398,1054.2
Netherlands530,64023,50012,22950,348+ 1,232593,491530,340111.9
New Zealand4,03010,000-10,6393,392141,3222.4
Nicaragua1,650107-1,54319,483
Niger1,4201,1006,84610,1633,930-6821,2259,40913.0
Nigeria7,4882,5004,721-11,9662,743157,1551.7
Norway258,6937,4601,60429,00928,530+ 6,860274,137167,770163.4
Oman9,2181,8786,6902,139+ 2536,7986,262108.6
Pakistan18,36254,00040,00099,793103,521-12,83915,795169,9899.3
Panama5,99742,48511,63852,331-1,6496,14026,32223.3
Papua New Guinea6,61426763-2445,6329,30060.6
Paraguay35,9611,958+ 1,83939,75713,697290.3
Peru10,80535,10016,15955,144-6,92091,319
Philippines9,90815,65088,358153,52670,053-8,80211,872116,59510.2
Portugal9,19149,0003044,122-3,88110,21953,32019.2
Qatar16,8592,267+ 38819,51412,822152.2
Romania64479,99673,227-5,9061,50775,9502.0
Rwanda8,266329-4288,16613,69759.6
St. Lucia13875-5857420.7
St. Vincent227143-27233546.5
São Tomé and Principe69-44246203.9
Saudi Arabia425,4671,008,523981,645+ 24,218422,807195,527216.2
Senegal2,6512,4008,87627,00318,787-1,8262,56424,46210.5
Seychelles142030-31344068.2
Sierra Leone2,8061,424-1,38117,455
Singapore59,9624,616+ 3,61068,18816,475413.9
Solomon Islands1,19681,013+ 3022165433.7
Somalia34511,80911,111-1,040213,697
South Africa18,76033,50069,976105,47653,784-16,96417,012220,3607.7
Spain185,10785,10096018,893-6,856283,204298,80594.8
Sri Lanka33012,68021,80322,934-5,4806,39970,8689.0
Sudan29,00525,930-3,07652,192
Suriname1,151-5306217,7508.0
Swaziland1,0561,7551,776-4425946,4329.2
Sweden189,84535,43012,355-3,506234,124246,52595.0
Syrian Arab Republic4,6762,5002,502-2,5522,12236,5645.8
Tanzania2,650131-2,51931,372
Thailand20,676216,999129,000220,600300,964-5,87822,43284,65226.5
Togo3,2357506,5548,5924,356-75391510,9758.3
Tonga73857385
Trinidad and Tobago104,297+ 4,644108,94246,231235.6
Tunisia1,5481,412-2,59136934,2431.1
Turkey6,63369,53871,125132,485-8,5186,292112,3075.6
Uganda2,28817,61423,93940,244-2,2401,35829,3964.6
United Arab Emirates66,593+ 2,22568,81838,737177.7
United Kingdom579,572617,37691,55084,591-96,0701,093,9201,913,07057.2
United States6,024,652750,877+ 110,6486,886,1774,899,530140.5
Uruguay3,56023,20030,90058,47340,363-3,59310,37849,97720.8
Vanuatu10153+ 10164
Venezuela392,44169,136+ 8,085469,662316,890148.2
Viet Nam47,658
Western Samoa1472,2574242,026-717311,14264.0
Yemen Arab Republic8,73334,7089,507704+ 53633,7656,160548.1
Yemen, People’s Democratic Republic of11,7106,13913,8741,054-1,2051,71722,5837.6
Yugoslavia9,62918,480105,790282,706191,438-11,7961,790155,1611.2
Zaïre9,15440,02156,230142,191128,146-6,45054186,3090.6
Zambia11142,300107,29259,421-5,36631568,2980.5
Zimbabwe3,34142,50039,062-5396,24010,20061.2
Total Participants16,805,2181,808,7832,575,4191,808,7832,566,0286,309,0674,099,066-312,70918,711,90121,433,33087.3
Prescribed Holders
Arab Monetary Fund3,606153,274153,980+ 2,1645,064
Bank of Central African States1,2114801,572+ 70189
East African Development Bank1,233654+ 69648
Eastern Caribbean Central Bank1,018+ 821,100
Islamic Development Bank1,163+ 931,256
Nordic Investment Bank859,26059,199+ 567636
Swiss National Bank9,4737,000+ 6293,102
Total Prescribed Holders17,713213,014222,405+ 3,67211,994
General Resources Account4,615,7474,099,0666,309,067+ 315,8962,721,642
Total21,438,6781,808,7836,887,4991,808,7839,097,5006,309,0674,099,066+ 6,85921,445,53721,433,330
Table II.14.Supplementary Financing Facility Subsidy Account: Donations Received to April 30, 1986(In millions of SDRs)
DonorAmount of

Donation
Australia2.0
Austria1.2
Denmark1.5
Finland1.3
France9.3
Netherlands4.1
Norway1.4
Saudi Arabia32.0
Sweden2.2
Switzerland2.4
Total57.4
Table II.15.Purchases Under Supplementary Financing Facility by Eligible Members, and Subsidy Payments(In millions of SDRs)
PurchasesSubsidy

Payments
Recipients of subsidy at
3 percent
Bangladesh110.013.93
Bolivia25.53.59
Dominica4.50.38
Gambia, The4.80.37
Guyana30.93.49
India1,200.082.79
Kenya94.810.91
Liberia42.94.91
Madagascar22.22.79
Malawi28.13.57
Mauritania16.01.82
Pakistan537.153.56
Philippines333.041.06
Senegal54.25.83
Sierra Leone17.21.65
Sri Lanka0.591
Sudan171.416.79
Tanzania16.31.81
Togo7.30.91
Zambia3.522
Subtotal2,716.2254.27
Recipients of subsidy at
1.5 percent
Cote d’I voire286.411.78
Jamaica227.113.77
Mauritius69.24.27
Morocco137.58.77
Peru195.114.24
Subtotal915.352.83
Total3,631.5307.10

Subsidy paid in respect of Fund holdings in excess of 140 percent of quota under the Fund’s policy on exceptional use.

Subsidy paid in respect of Fund holdings in excess of 200 percent of quota under the Fund’s policy on exceptional use.

Subsidy paid in respect of Fund holdings in excess of 140 percent of quota under the Fund’s policy on exceptional use.

Subsidy paid in respect of Fund holdings in excess of 200 percent of quota under the Fund’s policy on exceptional use.

Table II.16.SDR Interest Rate and Rate of Remuneration
Period

Beginning
SDR

Interest Rate
Rate of

Remuneration
1985
May 118.097.42
May 68.057.38
May 138.037.36
May 207.837.18
May 277.707.06
June 37.677.03
June 107.667.02
June 177.386.76
June 247.606.97
July 17.506.87
July 87.446.82
July 157.556.92
July 227.526.89
July 297.516.88
August 127.516.98
August 57.547.01
August 127.446.92
August 197.396.87
August 267.356.84
September 27.406.88
September 97.486.96
September 167.446.92
September 237.316.80
September 307.246.73
October 77.296.78
October 147.416.89
October 217.426.90
October 287.567.03
November 47.647.11
November 117.627.09
November 187.727.18
November 257.657.11
December 27.607.07
December 97.677.13
December 167.537.00
December 237.537.00
December 307.496.97
1986
January 67.617.08
January 137.697.15
January 207.637.10
January 277.607.07
February 137.606.99
February 37.356.76
February 107.396.80
February 177.326.73
February 247.266.68
March 37.236.65
March 106.996.43
March 176.796.25
March 246.766.22
March 316.756.21
April 76.626.09
April 146.315.81
April 216.175.68
April 286.275.77

Week began April 29, 1985. However, the first day of the financial year was May 1, 1985, at which time the remuneration coefficient increased from 90 percent to 91.66 percent of the SDR interest rate.

The remuneration coefficient increased from 91.66 percent to 93 percent of the SDR interest rate as from the first day of the financial quarter that began August 1, 1985.

The remuneration coefficient decreased from 93 percent to 92 percent of the SDR interest rate as from the first day of the financial quarter that began February 1, 1986.

Week began April 29, 1985. However, the first day of the financial year was May 1, 1985, at which time the remuneration coefficient increased from 90 percent to 91.66 percent of the SDR interest rate.

The remuneration coefficient increased from 91.66 percent to 93 percent of the SDR interest rate as from the first day of the financial quarter that began August 1, 1985.

The remuneration coefficient decreased from 93 percent to 92 percent of the SDR interest rate as from the first day of the financial quarter that began February 1, 1986.

Table II.17.Publications Issued, Financial Year Ended April 30, 1986
Reports and Other Documents
Annual Report of the Executive Board for the Financial Year Ended
April 30, 1985
(English, French, German, and Spanish). Free
Annual Report on Exchange Arrangements and Exchange Restrictions,
1985
One copy free; additional copies US$12.00 each
By-Laws, Rules and Regulations
Forty-Second Issue (English, French, and Spanish). Free
Selected Decisions of the International Monetary Fund and Selected
Documents, Eleventh Issue. Free
Summary Proceedings of the Fortieth Annual Meeting of the Board of
Governors. Free
World Economic Outlook, October 1985: A Survey by the Staff of the International Monetary Fund
US$10.00. US$6.00 to university libraries, faculty members, and students.
Subscription Publications
Balance of Payments Statistics
Vol. 37. A two-part yearbook and 12 monthly booklets. US$38.00 a year. US$19.00 to university libraries, faculty members, and students. US$12.00 for yearbook only.
Direction of Trade Statistics
Monthly, with yearbook.
US$36.00 a year. US$18.00 to university libraries, faculty members, and students. US$10.00 for yearbook only.
Government Finance Statistics Yearbook
Vol. VIII, 1984. (Introduction and title of lines in English, French, and Spanish.) US$20.00. US$10.00 to university libraries, faculty members, and students.
International Financial Statistics
Monthly, with yearbook (English, French, and Spanish) and two supplements (English). US$100.00 a year. US$50.00 to university libraries, faculty members, and students. Yearbook, US$25.00. Supplements separately, US$10.00 each.
Staff Papers
Four times a year. US$15.00 a year. US$7.50 to university libraries, faculty members, and students.
University libraries, faculty members, and students may obtain the five publications listed above at a special rate of US$80.00 for all five publications.
For users of Fund publications that have access to a computer, tape subscriptions to Balance of Payments Statistics, Direction of Trade Statistics, Government Finance Statistics Yearbook, and International Financial Statistics are available at US$1,500.00 a year each for single users and US$7,000.00 a year for time-sharing companies. This price includes the book version. The price to universities is US$500.00 a year for each publication.
Occasional Papers
No. 35 The West African Monetary Union: An Analytical Review
By Rattan J. Bhatia
No. 36 Formulation of Exchange Rate Policies in Adjustment Programs
By a Staff Team Headed by G.G. Johnson
No. 37 Export Credit Cover Policies and Payments Difficulties
By Eduard H. Brau and Chanpen Puckahtikom
No. 38 Trade Policy Issues and Developments
By Shailendra J. Anjaria, Naheed Kirmani, and Arne B. Petersen
No. 39 A Case of Successful Adjustment: Korea’s Experience During
1980-84
By Bijan B. Aghevli and Jorge Marquez-Ruarte
No. 40 Recent Developments in External Debt Restructuring
By K. Burke Dillon, C. Maxwell Watson, G. Russell Kincaid, and
Chanpen Puckahtikom
No. 41 Fund-Supported Adiustment Programs and Economic Growth
By Mohsin S. Khan and Malcolm D. Knight
No. 42 Global Effects of Fund-Supported Adjustment Programs
By Morris Goldstein
No. 43 International Capital Markets: Developments and Prospects
By Maxwell Watson, Donald Mathieson, Russell Kincaid, and Eliot
Kalter
Occasional Papers Nos. 35-43 are available for US$7.50 each, with a special price of US$4.50 each for university libraries, faculty members, and students.
World Economic and Financial Surveys
World Economic Outlook: A Survey by the Staff of the International Monetary Fund, April 1986 US$15.00 US$11.00 to university libraries, faculty members, and students.
Books
The International Monetary Fund, 1972-1978: International Monetary Cooperation on Trial

By Margaret Garritsen de Vries. US$60.00 for the three-volume set. US$25.00 a volume if purchased separately.
External Debt Management Edited by Hassanali Mehran. Cloth US$17.50 Paper US$11.50.
Ajustamento e Crescimento na Actual Conjuntura Econdmica Mundial Edited by Jose da Silva Lopes. US$10.00.
Croissance et Ajustement: Les problemes de TAfrique de I’Ouest Edited by Patrick Guillaumont. US$10.00.
Problems of International Money, 1972-85 Edited by Michael Posner. US$8.50.
The IMF in a Changing World, 1945-85 By Margaret Garritsen de Vries. US$9.50.
Pamphlet Series
No. 42 The International Monetary Fund: Its Financial Organization and Activities

By Anand G. Chandavarkar (French edition) Free.
No. 43 The Technical Assistance and Training Services of the International Monetary Fund (French and Spanish editions) Free.
Booklet
The Role and Function of the International Monetary Fund (English) Free.
Other
Finance & Development
Issued jointly with World Bank; quarterly (English, Arabic, Chinese, French, German, Portuguese, and Spanish). Free
IMF Survey
Twice monthly but only once in December (English, French, and Spanish). Private firms and individuals are charged for delivery at an annual rate of US$30.00.
Table II.18.Members That Have Accepted the Obligations of Article VIII, April 30, 1986
MemberEffective Date

of Acceptance
MemberEffective Date

of Acceptance
Antigua and BarbudaNovember 22, 1983JapanApril 1, 1964
ArgentinaMay 14, 1968KuwaitApril 5, 1963
AustraliaJuly 1, 1965LuxembourgFebruary 15, 1961
AustriaAugust 1, 1962MalaysiaNovember 11,1968
Bahamas, TheDecember 5, 1973MexicoNovember 12, 1946
BahrainMarch 20, 1973NetherlandsFebruary 15, 1961
BelgiumFebruary 15, 1961New ZealandAugust 5, 1982
BelizeJune 14, 1983NicaraguaJuly 20, 1964
BoliviaJune 5, 1967NorwayMay 11, 1967
CanadaMarch 25, 1952OmanJune 19, 1974
ChileJuly 27, 1977PanamaNovember 26, 1946
Costa RicaFebruary 1,1965Papua New GuineaDecember 4, 1975
DenmarkMay 1, 1967PeruFebruary 15, 1961
DjiboutiSeptember 19, 1980QatarJune 4, 1973
DominicaDecember 13, 1979St. Christopher and NevisDecember 3, 1984
Dominican RepublicAugust 1, 1953St. LuciaMay 30, 1980
EcuadorAugust 31, 1970St. VincentAugust 24, 1981
El SalvadorNovember 6, 1946Saudi ArabiaMarch 22, 1961
FijiAugust 4, 1972SeychellesJanuary 3, 1978
FinlandSeptember 25, 1979SingaporeNovember 9, 1968
FranceFebruary 15, 1961Solomon IslandsJuly 24, 1979
Germany, Fed. Rep. ofFebruary 15, 1961South AfricaSeptember 15, 1973
GuatemalaJanuary 27, 1947SurinameJune 29, 1978
GuyanaDecember 27, 1966SwedenFebruary 15, 1961
HaitiDecember 22, 1953United Arab EmiratesFebruary 13, 1974
HondurasJuly 1, 1950United KingdomFebruary 15, 1961
IcelandSeptember 19, 1983United StatesDecember 10, 1946
IrelandFebruary 15, 1961UruguayMay 2, 1980
ItalyFebruary 15, 1961VanuatuDecember 1, 1982
JamaicaFebruary 22, 1963VenezuelaJuly 1, 1976

Executive Board Decision No. 4377-(74/114), adopted September 13, 1974, as amended by Decisions Nos. 6339-(79/1 79), adopted December 3, 1979, and 6830-(81/65), adopted April 22, 1981, effective May 1, 1981, Selected Decisions, Twelfth Issue, pages 32-36.

Executive Board Decision No. 6860-(81/81), adopted May 13, 1981, as amended by Decisions Nos. 7602-(84/3), January 6, 1984, and 7967-(85/69), May 3, 1985, Selected Decisions, Twelfth Issue, pages 88-93.

Executive Board Decisions Nos. 5704-(78/39), adopted March 22, 1978, effective April 1, 1978, and 61 72-(79/101), adopted June 28, 1979, Selected Decisions, Twelfth Issue, pages 117-21.

The Fund’s holdings of gold (103 million ounces) are not included in the category of readily usable resources. The sale of any of this gold for any purpose requires an 85 percent majority of the total voting power of the Fund, and the use of the value in excess of SDR 35 an ounce is also subject to special majorities.

Executive Board Decision No. 7040-(82/7), adopted January 13, 1982, as amended by Decision No. 7589-(83/181), adopted December 23, 1983, Selected Decisions, Twelfth Issue, pages 271-72. In computing this ratio, the amount included for the General Arrangements to Borrow (GAB) and borrowing arrangements associated with the GAB is outstanding borrowing under these arrangements (nil as of April 30, 1986), or two thirds of the total of credit lines under these arrangements, whichever is the greater.

For the text of this agreement, see Selected Decisions, Twelfth Issue, pages 198-223.

For further details regarding these arrangements, see Annual Report, 1985, page 73.

For further details, see Annual Report, 1985, page 72.

For details regarding the General Arrangements to Borrow, see Annual Report, 1985, page 72.

The category of prescribed holders currently comprises four central banks; three intergovernmental monetary institutions; and seven development institutions: the Andean Reserve Fund, Bogota; the Arab Monetary Fund, Abu Dhabi; the Asian Development Bank, Manila; the Bank for Central African States, Yaounde; the Bank for International Settlements, Basle; the Central Bank for West African States, Dakar; the East African Development Bank, Kampala; the Eastern Caribbean Central Bank, Basseterre; the International Bank for Reconstruction and Development, Washington, D.C; the International Development Association, Washington, D.C; the International Fund for Agricultural Development, Rome; the Islamic Development Bank, Jeddah; the Nordic Investment Bank, Helsinki; and the Swiss National Bank, Zurich.

These two institutions, the African Development Bank and the African Development Fund, were prescribed as “other holders” on June 25, 1986.

Executive Board Decisions Nos. 8186-(86/9) SBS/S, adopted January 15, 1986, and 8239-(86/56) SAF, adopted March 26, 1986 (reproduced in Appendix III).

Executive Board Decision No. 7941-(85/50) S, adopted March 29, 1985, Selected Decisions, Twelfth Issue, page 111. In April 1986 the Executive Board decided to reduce further the level of the Fund’s SDR holdings to SDR 1 billion by the end of May 1987 (Executive Board Decision No. 8265-(86/70) S, adopted April 25, 1986, reproduced in Appendix III).

The international and regional organizations using the SDR as a unit of account, or as basis for a unit of account, include the African Development Bank, African Development Fund, Arab Monetary Fund, Asian Clearing Union, Asian Development Bank, Great Lakes States Development Bank, East African Development Bank, Economic Community of West African States, European Conference of Postal and Telecommunications Administrations, International Center for Settlement of Investment Disputes, International Development Association, International Fund for Agricultural Development, International Telecommunications Union, Islamic Development Bank, Nordic Investment Bank, and Universal Postal Union.

Executive Board Decision No. 6704-(80/185) TR, adopted December 17, 1980, Selected Decisions, Twelfth Issue, pages 360-61.

Executive Board Decision No. 7989-(85/81) SBS, adopted May 28, 1985, Selected Decisions, Twelfth Issue, page 369.

No subsidy is paid with respect to charges that accrue after repurchases should have been made.

Executive Board Decision No. 7990-(85/81), adopted May 28, 1985, Selected Decisions, Twelfth Issue, page 132.

Executive Board Decision No. 6854-(81/78) SBS, adopted May 8, 1981, as amended by Decision No. 8184-(86/9) SBS, adopted January 15, 1986 (reproduced in Appendix III).

Executive Board Decision No. 7990-(85/81), adopted May 28, 1985, Selected Decisions, Twelfth Issue, page 132.

Except for Democratic Kampuchea, whose norm is 75 percent of quota because there has been no change in its quota since April 1978.

The combined market interest rate is the weighted average of the market yields on three-month U.S. and U.K. Treasury bills; three-month interbank deposits in the Federal Republic of Germany; three-month interbank money against private paper in France; and the discount on two-month (private) bills in Japan.

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