Front Matter

Front Matter

International Monetary Fund
Published Date:
October 2012
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The International Monetary Fund

The IMF is the world’s central organization for international monetary cooperation. With 188 member countries, it is an organization in which almost all of the countries in the world work together to promote the common good. The IMF’s primary purpose is to safeguard the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to buy goods and services from one another. This is essential for achieving sustainable economic growth and raising living standards.

All of the IMF’s member countries are represented on its Executive Board, which discusses the national, regional, and global consequences of each member’s economic policies. This Annual Report covers the activities of the Executive Board and IMF management and staff during the financial year May 1, 2011, through April 30, 2012.

The main activities of the IMF include

  • providing advice to members on adopting policies that can help them prevent or resolve a financial crisis, achieve macroeconomic stability, accelerate economic growth, and alleviate poverty;

  • making financing temporarily available to member countries to help them address balance of payments problems, that is, when they find themselves short of foreign exchange because their payments to other countries exceed their foreign exchange earnings; and

  • offering technical assistance and training to countries, at their request, to help them build the expertise and institutions they need to implement sound economic policies.

The IMF is headquartered in Washington, D.C., and, reflecting its global reach and close ties with its members, also has offices around the world.

Additional information on the IMF and its member countries can be found on the Fund’s website,

Ancillary materials for the Annual Report—Web Boxes, Web Tables, Appendixes (Including the IMF’s financial statements for the financial year ended April 30, 2012), and other pertinent documents—can be accessed via the Annual Report web page at Print copies of the financial statements are available from IMF Publication Services, P.O. Box 92780, Washington, DC 20090. A CD-ROM version of the Annual Report, including the ancillary materials posted on the web page, is also available from IMF Publication Services.

Acronyms and Abbreviations


anti-money laundering


anti-money laundering and combating the financing of terrorism


Bank for International Settlements


Currency Composition of Foreign Exchange Reserves


civil society organization


External Audit Committee


Extended Fund Facility


Offices in Europe


Financial Action Task Force


Flexible Credit Line


Fiscal Monitor


Financial Stability Board


financial year


Group of Twenty


General Data Dissemination System


gross domestic product


Global Financial Stability Report


General Resources Account


Heavily Indebted Poor Countries


main headquarters


Independent Evaluation Office


International Labour Organization


International Monetary Fund


International Monetary and Financial Committee


information technology


Mutual Assessment Process


Multilateral Debt Relief Initiative


New Arrangements to Borrow


Office for Asia and the Pacific


Office of Internal Audit and Inspection


Precautionary Credit Line


Public Information Notice


Precautionary and Liquidity Line


press release


Poverty Reduction and Growth Trust


Policy Support Instrument


Regional Economic Outlook


regional technical assistance center


Stand-By Arrangement


Special Data Dissemination Standard


Statistical Data and Metadata Exchange


technical assistance


Triennial Surveillance Review


topical trust fund


World Economic Outlook





The IMF’s financial year is May 1 through April 30. The unit of account of the IMF is the SDR; conversions of IMF financial data to U.S. dollars are approximate and provided for convenience. On April 30, 2012, the SDR/U.S. dollar exchange rate was US$1 = SDR 0.644934, and the U.S. dollar/SDR exchange rate was SDR 1 = US$1.55055. The year-earlier rates (April 30, 2011) were US$1 = SDR 0.616919 and SDR 1 = US$1.62096.

“Billion” means a thousand million; “trillion” means a thousand billion; minor discrepancies between constituent figures and totals are due to rounding.

As used in this Annual Report, the term “country” does not in all cases refer to a territorial entity that is a state as understood by international law and practice. As used here, the term also covers some territorial entities that are not states but for which statistical data are maintained on a separate and independent basis.

Message from The Managing Director and Chair of The Executive Board

Christine Lagarde, Managing Director and Chair of the Executive Board

The past year was a deeply challenging one for many IMF members and for the Fund itself. The global financial crisis continued to flare up across the world, especially in the euro area. We saw many false hopes and too many cases of two steps forward and one step back. The result is a continued lack of confidence, continued financial market stress, and a continued weak recovery. Meanwhile, unemployment remains unacceptably high in too many regions and the social fabric is becoming increasingly stretched.

Clearly, it is more important than ever to restore global economic and financial stability and put the global economy on a course of sustained growth.

Especially in these circumstances, the IMF must continue to apply all of its analytical excellence and forward-thinking creativity to help its members overcome current problems and build a bridge to that better world.

In this respect, I am proud of the strong, independent role played by the IMF over the past financial year. We tried to be as objective and evenhanded as possible in assessing economic plans and giving advice to countries. Consider the following examples.

We called for an aggressive strategy to recapitalize European banks, to build a larger firewall to reduce contagion and restore confidence, and to use these funds to take direct stakes in banks. The Fund also called for a comprehensive plan for greater European financial and fiscal integration. We tried to bring balance to the fiscal debate, noting that an overly zealous approach to cutting budget deficits could make global economic conditions worse. And we continued to work toward better financial sector regulation and supervision, to ensure we do not return to the financial system that produced the crisis.

The Fund continued to innovate over the period and has worked hard to improve the way we do business. Following the findings of the Triennial Surveillance Review, we took steps to improve the Fund’s surveillance methods and outputs, and to focus more on the risks and interconnections that pervade the modern global economy. We set out to develop a work plan for financial sector surveillance, and in the area of external stability, the Executive Board continued work to broaden systematic multilateral analysis beyond exchange rates to include external balances. The Executive Board also worked to update the existing legal framework to enable more effective conduct of surveillance.

In our surveillance, we paid greater attention to employment, inclusive growth, and social issues, and we looked carefully at the issues facing the low-income countries, including from commodity price fluctuations. The Fund also focused its work on several broader core macro areas, including managing capital flows and modernizing the fiscal framework and debt sustainability analysis.

David Lipton, First Deputy Managing Director

On the lending front, we responded flexibly to our members’ financing needs, all across the world. We intensified dialogue with the Arab transition countries, laying the groundwork for possible financing support, and we maintained our support for our low-income members. Recognizing that prevention is better than cure, the Executive Board agreed to reforms to the Fund’s lending toolkit that are designed to provide better liquidity and emergency assistance to our global membership. The new more flexible Precautionary and Liquidity Line, which replaced the Precautionary Credit Line, can be used in broader circumstances, including as insurance against future shocks and as a short-term liquidity window, to address the needs of members with sound economic fundamentals and policy frameworks. At the same time, our new Rapid Financing Instrument allows us to support a full range of urgent balance of payments needs, including those arising from exogenous shocks.

Naoyuki Shinohara, Deputy Managing Director

Over the past financial year, we also stepped up our technical assistance program. Aided by generous donor contributions, the Fund delivered significantly more technical assistance than in previous years. In addition, after a strategic review, we merged two operational units to create a new department to oversee and manage training and technical assistance delivery—the Institute for Capacity Development.

Nemat Shafik, Deputy Managing Director

All in all, I believe the IMF had a productive year. Our members expressed their confidence in us by boosting our resources by US$456 billion (US$430 billion at the end of the 2012 financial year). The Executive Board also endorsed the use of a portion of the windfall profits from IMF gold sales to help raise additional funds to subsidize the Poverty Reduction and Growth Trust’s concessional financing. It remains imperative to ensure adequate resources for concessional lending, so this is a welcome contribution toward subsidizing the interest rate on concessional financing arrangements with low-income members.

Min Zhu, Deputy Managing Director

Looking ahead, it is important to move forward with the governance reforms agreed in 2010. The IMF must be representative of its entire membership and be seen as truly legitimate. And on this basis, the IMF will continue working with its members to find collective solutions to collective problems and chart the course to a more prosperous future.

I am deeply honored to be the Managing Director of the IMF. I am impressed by our staff, and proud of our work. I have the greatest respect for the professionalism and integrity of the IMF’s Executive Board, and its tireless efforts to carry out the mandate of the IMF, day in and day out.

The Annual Report of the IMF’s Executive Board to the Fund’s Board of Governors is an essential instrument in the IMF’s accountability. The Executive Board is responsible for conducting the Fund’s business and consists of 24 Executive Directors appointed by the IMF’s 188 member countries, while the Board of Governors, on which every member country is represented by a senior official, is the highest authority governing the IMF. The publication of the Annual Report represents the accountability of the Executive Board to the Fund’s Board of Governors.

Executive Board

Alternate Executive Directors are indicated in italics.

Meg Lundsager


United States

Mitsuhiro Furusawa

Tomoyuki Shimoda


Hubert Temmeyer

Steffen Meyer


Ambroise Fayolle

Alice Terracol


Arrigo Sadun

Thanos Catsambas

Albania, Greece, Italy, Malta, Portugal, San Marino, Timor-Leste

Der Jiun Chia

Aida Budiman

Brunei Darussalam, Cambodia, Fiji, Indonesia, Lao P.D.R., Malaysia, Myanmar, Nepal, Philippines, Singapore, Thailand, Tonga, Vietnam

Tao Zhang

Ping Sun


Christopher Legg

Hoseung Lee

Australia, Kiribati, Korea, Marshall Islands, Micronesia, Mongolia, New Zealand, Palau, Papua New Guinea, Samoa, Seychelles, Solomon Islands, Tuvalu, Uzbekistan, Vanuatu

Arvind Virmani

P. Nandalal Weerasinghe

Bangladesh, Bhutan, India, Sri Lanka

Paulo Nogueira Batista, Jr.

María Angélica Arbeláez

Brazil, Colombia, Dominican Republic, Ecuador, Guyana, Haiti, Panama, Suriname, Trinidad and Tobago

Ahmed Alkholifey

Fahad I. Alshathri

Saudi Arabia

René Weber


Azerbaijan, Kazakhstan, Kyrgyz Republic, Poland, Serbia, Switzerland, Tajikistan, Turkmenistan

Alexander Gibbs

Robert Elder

United Kingdom

Willy Kiekens

Johann Prader

Austria, Belarus, Belgium, Czech Republic, Hungary, Kosovo, Luxembourg, Slovak Republic, Slovenia, Turkey

Carlos Pérez-Verdía

José Rojas Ramirez

Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Spain, Venezuela

Menno Snel

Yuriy G. Yakusha

Armenia, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Georgia, Israel, former Yugoslav Republic of Macedonia, Moldova, Montenegro, Netherlands, Romania, Ukraine

Thomas Hockin

Mary O’Dea

Antigua and Barbuda, The Bahamas, Barbados, Belize, Canada, Dominica, Grenada, Ireland, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines

Benny Andersen

Audun Grønn

Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, Sweden

Moeketsi Majoro

Momodou Saho

Angola, Botswana, Burundi, Eritrea, Ethiopia, The Gambia, Kenya, Lesotho, Liberia, Malawi, Mozambique, Namibia, Nigeria, Sierra Leone, South Africa, Sudan, Swaziland, Tanzania, Uganda, Zambia, Zimbabwe

A. Shakour Shaalan

Sami Geadah

Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Maldives, Oman, Qatar, Syria, United Arab Emirates, Yemen

Aleksei V. Mozhin

Andrei Lushin

Russian Federation

Jafar Mojarrad

Mohammed Daïri

Afghanistan, Algeria, Ghana, Islamic Republic of Iran, Morocco, Pakistan, Tunisia

Alfredo Mac Laughlin

Pablo Garcia-Silva

Argentina, Bolivia, Chile, Paraguay, Peru, Uruguay

Kossi Assimaidou

Nguéto Tiraina Yambaye

Benin, Burkina Faso, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Democratic Republic of the Congo, Republic of Congo, Côte d’Ivoire, Djibouti, Equatorial Guinea, Gabon, Guinea-Bissau, Mali, Mauritania, Mauritius, Niger, Rwanda, São Tomé and Príncipe, Senegal, Togo

Letter of Transmittal to the Board of Governors

July 26, 2012

Dear Mr. Chairman:

I have the honor to present to the Board of Governors the Annual Report of the Executive Board for the financial year ended April 30, 2012, in accordance with Article XII, Section 7(a) of the Articles of Agreement of the International Monetary Fund and Section 10 of the IMF’s By-Laws. In accordance with Section 20 of the By-Laws, the administrative and capital budgets of the IMF approved by the Executive Board for the financial year ending April 30, 2013, are presented in Chapter 5. The audited financial statements for the year ended April 30, 2012, of the General Department, the SDR Department, and the accounts administered by the IMF, together with reports of the external audit firm thereon, are presented in Appendix VI, which appears on the CD-ROM version of the Report, as well as at The external audit and financial reporting processes were overseen by the External Audit Committee, comprising Ms. Amelia Cabal (Chair), Mr. Arfan Ayass, and Mr. Jian-Xi Wang, as required under Section 20(c) of the Fund’s By-Laws.

Christine Lagarde

Managing Director and Chair of the Executive Board

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