Chapter

General Department

Author(s):
International Monetary Fund
Published Date:
September 2012
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Independent Auditors’ Report

Deloitte.

Deloitte & Touche LLP

Suite 500

555 12th Street N.W.

Washington, DC 20004-1207

USA

Tel: +1 202 879 5600

Fax: +1 202 879 5309

www.deloitte.com

To the Board of Governors of the

International Monetary Fund

Washington, DC

We have audited the accompanying consolidated statements of financial position of the General Department of the International Monetary Fund and subsidiary (the “Department”) as of April 30, 2012 and 2011, and the related consolidated statements of comprehensive income, of changes in reserves, resources and retained earnings, and cash flows for the years then ended. These financial statements are the responsibility of the Department’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with International Standards on Auditing and auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Department’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of the General Department of the International Monetary Fund at April 30, 2012 and 2011, and the results of its operations and its cash flows for the years then ended in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Our audits were conducted for the purpose of forming an opinion on the basic consolidated financial statements taken as a whole. The supplemental schedules listed on pages 21 to 27 are presented for the purpose of additional analysis and are not a required part of the basic consolidated financial statements. These schedules are the responsibility of the Department’s management. Such schedules have been subjected to the auditing procedures applied in our audits of the basic consolidated financial statements and, in our opinion, are fairly stated in all material respects when considered in relation to the basic consolidated financial statements taken as a whole.

June 21, 2012

Member of

Deloitte Touche Tohmatsu

Consolidated statements of financial position at April 30, 2012, and 2011

(In millions of SDRs)

2012201120122011
AssetsLiabilities (including quotas)
Usable currencies135,049144,279Remuneration payable1949
Credit outstanding (Note 5)94,18265,539Investment trades payable309131
Other currencies37,17436,827Other liabilities648436
Total currencies (Note 5)266,405246,645Special Contingent Account (Note 10)1,1881,188
SDR holdings10,5228,644Borrowings (Note 11)40,04619,659
Interest and charges receivables (Note 6)525387Quotas, represented by (Note 5)
Reserve tranche positions65,77556,252
Investments (Note 7)14,25713,184Subscription payments172,341181,104
Gold holdings (Note 8)3,1673,167Total quotas238,116237,356
Fixed assets (Note 9)281289Total liabilities (including quotas)280,326258,819
Pension assets and other assets (Note 16)421282Reserves of the General Resources Account15,20613,764
Structural Adjustment Facility loans (Note 5)99Retained earnings of the Investment Account332
Resources of the Special Disbursement Account2222
Total assets295,587272,607Total liabilities, reserves, and resources295,587272,607
The accompanying notes are an integral part of these consolidated financial statements.These consolidated financial statements were approved by the Managing Director and the Director of Finance on June 21, 2012.
The accompanying notes are an integral part of these consolidated financial statements.These consolidated financial statements were approved by the Managing Director and the Director of Finance on June 21, 2012.
/s/ Andrew Tweedie/s/ Christine Lagarde
Director, Finance DepartmentManaging Director

Consolidated statements of comprehensive income for the years ended April 30, 2012, and 2011

(In millions of SDRs)

20122011
Operational income
Interest and charges (Note 6)1,9451,234
Interest on SDR holdings2815
Net income from investments (Note 7)16956
Service charges and commitment fees (Note 6)186298
2,3281,603
Operational expenses Remuneration (Note 12)159125
Interest expense on borrowings (Note 11)8349
Administrative expenses (Note 13)613649
855823
Net operational income1,473780
Gains on the sales of gold (Note 8)3,100
MDRI grant assistance2
Transfer from the Poverty Reduction and Growth Trust (PRG Trust) Reserve Account to the Special Disbursement Account (SDA)6346
Contribution from the SDA to the PRG Trust General Subsidy Account (Note 14)(63)(46)
Contribution from the MDRI-I Trust through the SDA to the Post-Catastrophe Debt Relief (PCDR) Trust (Note 7)(280)
Other comprehensive income
Net comprehensive income1,4733,602
Net comprehensive income of the General Department comprises:
Net comprehensive income of the General Resources Account1,3043,825
Net comprehensive income of the Investment Account16956
Net comprehensive loss of the Special Disbursement Account(279)
1,4733,602
The accompanying notes are an integral part of these consolidated financial statements.
The accompanying notes are an integral part of these consolidated financial statements.

Consolidated statements of changes in reserves, resources and retained earnings for the years ended April 30, 2012, and 2011

(In millions of SDRs)

General Resources /AccountInvestment Account retained earningsSpecial Disbursement Account resources
Special reserveGeneral reserveTotal reserves
Balance at April 30, 20106,3653,5209,885301
Net comprehensive income:
Net operational income219506725561
Gains on the sales of gold6502,4503,100
Transfers5454(54)(280)
Balance at April 30, 20117,2886,47613,764222
Net comprehensive income3979071,304169
Transfer138138(138)
Balance at April 30, 20127,8237,38315,2063322
The accompanying notes are an integral part of these consolidated financial statements.
The accompanying notes are an integral part of these consolidated financial statements.

Consolidated statements of cash flows for the years ended April 30, 2012, and 2011

(In millions of SDRs)

20122011
Usable currencies and SDRs from operating activities
Net comprehensive income1,4733,602
Adjustments to reconcile net comprehensive income to usable resources generated by operations
Depreciation and amortization3131
Interest and charges(1,945)(1,234)
Interest on SDR holdings(28)(15)
Interest income from investments(136)(128)
Remuneration159125
Interest expense on borrowings8349
Realized gain on the sale of fixed assets(13)
Realized gains on the sales of gold(3,100)
(376)(670)
Changes in interest and charges receivables, and pension assets and other assets(18)31
Changes in other liabilities39889
Changes in accrued MDRI-I Trust grants(2)
4(552)
Usable currencies and SDRs from credit to members
Purchases, including reserve tranche purchases(32,270)(26,616)
Repurchases3,5612,268
(28,705)(24,900)
Interest received
Interest and charges1,8051,055
Interest on SDR holdings3110
Interest from investments149134
Remuneration and interest paid
Remuneration(188)(96)
Interest on borrowings(91)(31)
Net usable currencies and SDRs used in operating activities(26,999)(23,828)
Usable currencies and SDRs from investment activities
Acquisition of fixed assets(24)(30)
Proceeds received from the sale of fixed assets14
Net acquisition of investments(1,086)(6,630)
Proceeds received from gold sales4,116
Net usable currencies and SDRs used in investment activities(1,096)(2,544)
Usable currencies and SDRs from financing activities
Borrowings20,42513,301
Repayments of borrowings(38)
Quota subscription payments in SDRs and usable currencies36919,187
Changes in composition of usable currencies(13)30
Net usable currencies and SDRs provided by financing activities20,74332,518
Net (decrease)/increase in usable currencies and SDRs(7,352)6,146
Usable currencies and SDRs, beginning of year152,923146,777
Usable currencies and SDRs, end of year145,571152,923
The accompanying notes are an integral part of these consolidated financial statements.
The accompanying notes are an integral part of these consolidated financial statements.

Notes to the consolidated financial statements for the years ended April 30, 2012, and 2011

1. Nature of operations

The International Monetary Fund (IMF or “the Fund”) is an international organization with 188 member countries. It was established to promote international monetary cooperation and exchange stability and to maintain orderly exchange arrangements among members; to facilitate the expansion and balanced growth of international trade, and contribute thereby to the promotion and maintenance of high levels of employment; and to provide temporary financial assistance under adequate safeguards to member countries to assist in solving their balance of payments problems in a manner consistent with the provisions of the IMF’s Articles of Agreement.

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

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

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

General Resources Account

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

Investment Account

The IA holds resources transferred from the GRA, which are invested to broaden the IMF’s income base. The current investment objective of the IA is to generate returns that exceed the SDR interest rate over time while minimizing the frequency and extent of negative returns and underperformance. Investments currently comprise primarily fixed-income securities and short-term deposits. The earnings generated by the IA may be retained in the IA or transferred to the GRA to help meet the expenses of conducting the business of the IMF.

Special Disbursement Account

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

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

Multilateral Debt Relief Initiative

The Multilateral Debt Relief Initiative (MDRI) provides debt relief to qualifying low-income member countries. For this purpose, the MDRI-I and MDRI-II Trusts were established on January 5, 2006, to provide grant assistance to eligible members under the MDRI. As the IMF has control over the MDRI-I Trust, the latter’s financial statements are consolidated with those of the General Department through the SDA. Grant assistance from the MDRI Trusts provides debt relief to cover debt owed to the IMF at December 31, 2004 that is not covered by debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative and that has not been repaid at the time the member qualifies for HIPC relief. At April 30, 2012 and 2011, only one of the five remaining MDRI-eligible members was expected to have debt outstanding from 2004 upon reaching completion point. Since this debt is expected to be covered by resources in the PRG-HIPC Trust, no liability was recorded for the MDRI-I Trust.

2. Basis of preparation and measurement

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

New and Revised International Financial Reporting Standards and Interpretations

Revised IAS 24, “Related Party Disclosures” was issued in November 2009 and superseded IAS 24 (as revised in 2003). The major revisions include simplifying the definition of a related party and providing partial exemption for government-related entities. The revised standard, which became effective for annual periods beginning on or after January 1, 2011, had no impact on the General Department’s consolidated financial statements.

The following new standards and amendments to existing standards have been issued by the IASB but are not yet effective and have not yet been implemented by the General Department.

IFRS 9, “Financial Instruments” was issued in November 2009 as the first step in replacing IAS 39, “Financial Instruments: Recognition and Measurement”. Under IFRS 9, financial assets currently within the scope of IAS 39 will be divided into two categories: those measured at amortized cost and those measured at fair value. The effective date for adoption of IFRS 9 is for annual periods beginning on or after January 1, 2015, but early adoption is permitted. As the General Department already measures financial assets at amortized cost or fair value, the implementation of IFRS 9 is not expected to have an impact on the General Department’s financial position or results of operations.

IFRS 10, “Consolidated Financial Statements” was issued in May 2011 and replaces the parts of IAS 27, “Consolidated and Separate Financial Statements” that deal with consolidated financial statements and SIC-12, “Consolidation – Special Purpose Entities”. The standard establishes a new control model for determining which entities should be consolidated. The standard also provides guidance on how to apply the principle of control to specific situations in order to identify whether an investor controls an investee. The effective date is for annual periods beginning on or after January 1, 2013 with earlier application permitted under certain circumstances. The implementation of IFRS 10 is not expected to have a significant impact on the General Department’s financial position or results of operations.

IFRS 13, “Fair Value Measurement” was issued in May 2011 and defines fair value, sets out a framework for measuring fair value, and requires more extensive disclosures about fair value. The effective date is for annual periods beginning on or after January 1, 2013. The implementation of IFRS 13 is expected to result in additional disclosures in the General Department’s financial statements, but will not have a significant impact on the recognition and measurement of assets and liabilities.

Amended IAS 19, “Employee Benefits” was issued in June 2011. The amendments include removal of the option to defer actuarial gains and losses under the “corridor” method and a new approach for calculating the asset return amount included in the reporting period’s income statement. All actuarial gains and losses will be recognized immediately in other comprehensive income and the net pension asset or liability recognized in the consolidated statement of financial position will reflect the full excess or deficit of plan assets over the defined benefit obligation, respectively. The amendment to IAS 19 is effective for annual periods beginning on or after January 1, 2013. The immediate recognition of actuarial gains and losses will result in increased volatility of the pension asset in the General Department’s financial position and the associated changes that will be recognized in other comprehensive income.

The following new standards and amendments to existing standards issued by the IASB are expected to have little or no impact on the General Department’s consolidated financial statements:

Amendments to IFRS 7, “Disclosures – Transfers of Financial Assets” (effective for annual periods beginning on or after July 1, 2011).

Amendments to IAS 1, “Presentation of Items of Other Comprehensive Income” (effective for annual periods beginning on or after July 1, 2012).

IFRS 11, “Joint Arrangements” was issued in May 2011 (effective for annual periods beginning on or after January 1, 2013).

IFRS 12, “Disclosure of Interests in Other Entities” was issued in May 2011 (effective for annual periods beginning on or after January 1, 2013).

IAS 28 (as revised in 2011), “Investments in Associates and Joint Ventures” was issued in May 2011 (effective for annual periods beginning on or after January 1, 2013).

IAS 27 (as revised in 2011), “Separate Financial Statements” was issued in May 2011 (effective for annual periods beginning on or after January 1, 2013).

Unit of account

The consolidated financial statements are presented in Special Drawing Rights (SDRs), which is the IMF’s functional unit of account. The U.S. dollar equivalent of the SDR is determined daily by the IMF by summing specific amounts of the four basket currencies (see below) in U.S. dollar equivalents on the basis of market exchange rates. The IMF reviews the SDR valuation basket at five-year intervals. The last review was completed in November 2010. No changes were made to the basket currencies, but the weights of the four currencies in the basket were changed and became effective on January 1, 2011. The currencies in the basket at April 30, 2012, and 2011 and their specific amounts, relative to one SDR, were as follows:

CurrencyAmount
Euro0.423
Japanese yen12.1
Pound sterling0.111
U.S. dollar0.660

At April 30, 2012, one SDR was equal to US$1.55055 (US$1.62096 at April 30, 2011).

Use of estimates and judgment

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

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

Information about areas involving estimates and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are described in Notes 3, 13, and 16.

3. Summary of significant accounting policies

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

Basis of consolidation

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

Quotas and reserve tranche positions

The IMF’s resources are provided by its members through the payment of quotas, which broadly reflect each member’s relative position in the global economy. Quotas also determine each member’s relative voting power, access to IMF financing, and share in SDR allocations. The IMF conducts general reviews of all members’ quotas at five-year intervals. The reviews allow the IMF to assess the adequacy of quota resources to meet its financing needs and to allow for adjustments of members’ quotas to reflect their relative positions in the world economy.

Member quota increases are recorded when a member consents to the quota increase and makes the actual payment.

A quarter of a member’s quota is normally paid in reserve assets, and the remainder is paid in the member’s own currency. Should a member withdraw from the IMF, its quota subscription is refunded to the extent it is not needed to settle the net obligations of the member to the IMF. A member’s reserve tranche is equivalent to its quota less the GRA’s holdings of its currency, excluding holdings that reflect the member’s use of GRA credit. Reserve tranches result from quota payments in reserve assets and from the use of the member’s currency in the GRA’s transactions or operations. A member’s reserve tranche is considered a part of its international reserves and a liquid claim against the GRA.

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

Currencies

Currencies consist of members’ currencies held by the GRA and securities (issued by members), which are non-interest bearing and are encashable by the IMF on demand. Usable currencies are currencies of members considered to have a strong balance of payments and reserves position that can be used by the GRA to finance the use of resources through a quarterly financial transactions plan, for lending activities, approved by the Executive Board. Usable currencies and the GRA’s SDR holdings are considered cash equivalents for the presentation of the statement of cash flows. Other currencies are not used to finance the use of resources by members, and therefore are not considered cash equivalents in the presentation of the statement of cash flows.

All currencies in the GRA are revalued in terms of the SDR, at each financial year end, and members are required to settle the currency valuation adjustments promptly thereafter. Member currencies are also revalued in SDR terms whenever used by the IMF in a transaction with another member or at the request of a member during the year, for example, at the end of each month. The currency balances in the statements of financial position include the receivables and payables arising from the revaluation.

SDR holdings

SDRs are not allocated to the IMF, but the IMF, through the GRA, can hold SDRs, which it can acquire from members in the settlement of their financial obligations to the IMF. In addition, SDRs can be used in a number of transactions and operations with members, including the provision of SDRs to purchasing members and the payment of remuneration on reserve tranche positions or interest on GRA borrowings. The IMF earns interest on its SDR holdings at the same rate as other holders of SDRs.

Credit outstanding

Credit outstanding represents financing provided to members under the various IMF credit facilities. Members receive credit in the GRA by purchasing SDRs or usable currencies in exchange for their own currencies. IMF credit is repaid by members by repurchasing holdings of their currencies in exchange for SDRs or usable currencies. Depending on the type of IMF credit facility, repurchase periods for GRA credit vary from 3% to 10 years.

An impairment loss would be recognized if there is objective evidence of impairment as a result of a past event that occurred after initial recognition, and is determined as the difference between the outstanding credit’s carrying value and the present value of the estimated future cash flows. Such cash flows take into account the proceeds from the burden sharing mechanism, explained below. Accordingly, no impairment losses have been recognized in the financial years ended April 30, 2012, and 2011, and there are no allowances against the overdue positions.

Burden sharing mechanism and Special Contingent Account

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

The IMF accumulates balances in the first Special Contingent Account (SCA-1) under the burden sharing mechanism. The SCA-1 is intended to address the risks posed to the IMF by overdue financial obligations. Balances in the SCA-1 would be used first if the IMF were to incur any loss from overdue obligations. Balances in the SCA-1 are refundable to the members that shared the cost of its financing, in proportion to their contributions, when there are no outstanding overdue repurchases and charges, or at such earlier time as the IMF may decide (see Note 10). Effective November 1, 2006, the IMF’s Executive Board decided to suspend, for the time being, further additions to the SCA-1.

Investments

The IMF has designated its investments in fixed-income securities (see Note 7), other than fixed-term deposits, as financial assets held at fair value through profit or loss. Such designation may be made only upon initial recognition and cannot subsequently be changed. The designated assets are carried at fair value in the statements of financial position, with the change in fair value included in the statements of comprehensive income in the period in which they arise.

Recognition

Investments are recognized on the trade date at which the IMF becomes a party to the contractual provisions of the instrument. A corresponding investment trade payable is recognized pending settlement of a transaction.

Derecognition

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

Fair value measurement

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

Investment income

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

Interest income is recognized on an accrual basis by reference to the principal outstanding and the effective interest rate.

Gold holdings

The IMF values its gold holdings at historical cost using the specific identification method. In accordance with the provisions of the Articles, whenever the IMF sells gold held on the date of the Second Amendment of the Articles, the portion of the proceeds equal to the historical cost must be placed in the GRA. Any portion of the proceeds in excess of the historical cost will be held in the SDA or transferred to the IA (see Note 8). Profits from sale of gold acquired after the Second Amendment are to be placed in the IA under the amendment to the Articles on the expanded investment authority of the IMF, while an amount equivalent to the acquisition price is placed in the GRA.

Fixed assets

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

Gains or losses arising from the sale of fixed assets are determined as the difference between sale proceeds and the carrying amount of those fixed assets and are recognized in the consolidated statement of comprehensive income.

Pension assets

The IMF has a defined benefit Staff Retirement Plan (SRP) that covers substantially all eligible staff, a Supplemental Retirement Benefits Plan (SRBP) for selected participants of the SRP, and the Retired Staff Benefits Investment

Account (RSBIA) to hold and invest resources set aside to fund the cost of the post-retirement benefits. The pension plans and other post-retirement assets are measured at fair value at the end of the reporting period. Pension costs and expected costs of the post-retirement medical and life insurance benefits are determined using the Projected Unit Credit Method (see Note 16).

Borrowings

The IMF can borrow to temporarily supplement its quota resources. The Executive Board has established guidelines on borrowing by the IMF to ensure that the financing of the IMF is managed in a prudent and systematic manner. The IMF’s main standing borrowing arrangement is the enlarged and expanded New Arrangements to Borrow (NAB). The IMF may also borrow under bilateral agreements, in particular loan and note purchase agreements (bilateral borrowing agreements), the General Arrangements to Borrow (GAB), and an associated agreement with Saudi Arabia (see Note 11).

Borrowings are denominated in SDRs, and currently carry the SDR interest rate. The drawings under borrowings are stated at amortized cost.

Reserves of the General Resources Account

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

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

Charges

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

Effective August 1, 2009, credit outstanding in excess of 300 percent of quota resulting from purchases in the credit tranches (including under the Stand-By, Flexible Credit Line (FCL), and Precautionary and Liquidity Line (PLL), formerly Precautionary Credit Line (PCL) arrangements) and under the Extended Fund Facility is subject to a surcharge of 200 basis points per annum above the basic rate of charge. Such holdings outstanding for more than three years after August 1, 2009, are subject to an additional surcharge of 100 basis points. Special charges are levied on members’ currency holdings that are not repaid when due and on overdue charges. Special charges do not apply to members that have overdue obligations to the Fund of six months or more. A service charge of 50 basis points is levied by the IMF on all purchases except reserve tranche purchases. A refundable commitment fee is charged on arrangements. Commitment fees are refundable if drawings are made under an arrangement and therefore income from the fees is only recognized at the cancellation or expiration of the arrangement, or to the extent access under an arrangement is reduced.

Remuneration

The IMF pays interest, referred to as remuneration, on a member’s reserve tranche position. A portion of the reserve tranche is unremunerated: that portion is equal to 25 percent of the member’s quota on April 1, 1978 (that part of the quota that was paid in gold prior to the Second Amendment of the Articles). For a member that joined the IMF after that date, its unremunerated reserve tranche is a percentage of its initial quota equivalent to the average percentage of unremunerated reserve tranche positions of all other members of the IMF in relation to their quotas when the new member joined the IMF.

The rate of remuneration is equal to the SDR interest rate. The rate of remuneration is the same for all members and (after taking into account burden sharing adjustments) cannot be less than 80 percent of the SDR interest rate.

Special Disbursement Account

Loans under the SAF are at concessional interest rates of ½ of 1 percent per annum. The last SAF loan disbursement was made in 1995 and currently one member (Somalia) has overdue SAF repayment obligations. Repayments of SAF loans to the SDA are transferred to the PRG Trust when received. Allowances for loan losses would be established if and when there is objective evidence that an impairment loss on loans has been incurred. No impairment losses have been recognized in the financial years ended April 30, 2012, and 2011, and there are no allowances against the overdue positions.

Provisions

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

4. Risk management

The IMF is exposed to various types of operational and financial risks, including credit, market, liquidity, and income risks.

Risk management framework

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

Credit risk

Credit outstanding

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

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

20122011
(In millions of SDRs and as a percentage of total GRA credit outstanding)
Largest user of credit18,94120.1%12,73619.4%
Three largest users of credit48,72351.7%32,55549.7%
Five largest users of credit68,16772.4%45,42569.3%

The five largest users of GRA credit at April 30, 2012, in descending order, were Greece, Portugal, Ireland, Romania, and Ukraine (Greece, Romania, Ukraine, Hungary, and Pakistan at April 30, 2011).

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

20122011
(In millions of SDRs and as a percentage of total GRA credit outstanding)1
Africa8850.9%7081.1%
Asia and Pacific1,5791.7%1,3722.1%
Europe82,98488.1%54,57083.3%
Western Hemisphere1,4261.5%1,2831.9%
Middle East and Central Asia7,3087.8%7,60611.6%
Total94,182100%65,539100%

During the financial year ended April 30, 2012, certain minor changes were made to align members’ regional groupings with the IMF’s internal classifications.

During the financial year ended April 30, 2012, certain minor changes were made to align members’ regional groupings with the IMF’s internal classifications.

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

The IMF has established limits on overall access to resources in the GRA. The annual limit is currently set at 200 percent of a member’s quota, with a cumulative limit of 600 percent of a member’s quota (net of scheduled repurchases), except for the FCL arrangements, which are not subject to these access limits. Two arrangements approved during the financial year ended April 30, 2012 had access in excess of these limits (five arrangements during the financial year ended April 30, 2011). Access in excess of these limits is granted in exceptional circumstances. There is no pre-specified maximum on exceptional access (except for PLL arrangements which have a cumulative cap of 1,000 percent of quota, net of scheduled repurchases), although the IMF assesses factors such as the size of balance of payment pressures, the member’s debt sustainability and its ability to regain access to financing from other sources, and the strength of policies to be adopted. Under such circumstances, disbursements tend to be front-loaded with smaller subsequent tranches. Access under a 6-month PLL arrangement is subject to a limit of 250 percent of quota per arrangement and, in exceptional circumstances where a member is experiencing or has the potential to experience larger short-term balance of payments needs due to the impact of exogenous shocks including heightened regional or global stress conditions, access is subject to a higher limit of 500 percent of quota, net of scheduled repurchases, per arrangement. A 500 percent of quota access cap applies to total access under 6-month PLL arrangements.

The IMF generally provides financial assistance to a member under an economic program adopted by the member to help it overcome its balance of payments difficulties. IMF financial assistance may be disbursed in tranches or the entire amount could be made available upfront. Apart from IMF arrangements, members can also have access to IMF financing through reserve tranche purchases, first credit tranche purchases, and outright purchases under policies on emergency assistance. Safeguards assessments of member central banks are normally undertaken to provide the IMF with reasonable assurance that each central bank’s legal structure, controls, and accounting, reporting, and auditing systems are adequate to ensure the integrity of their operations and help ensure that IMF resources are used for intended purposes. Misreporting by member countries may entail early repurchases for non-complying disbursements.

The IMF maintains precautionary balances consisting of its reserves (excluding any balances in the Special Reserve and General Reserve attributable to profits from gold sales during the financial years ended April 30, 2010, and 2011), and the SCA-1 that would be used to cover losses from possible overdue repurchase obligations. At April 30, 2012, precautionary balances amounted to SDR 9.5 billion, compared to SDR 8.1 billion at April 30, 2011. In addition, the burden sharing mechanism generates resources to offset the loss of income due to unpaid charges and thereby helps protect the IMF’s overall income and financial position.

The maximum credit risk exposure is the carrying value of the Fund’s credit outstanding and undrawn commitments (see Note 15), which amounted to SDR 215.8 billion and SDR 181.5 billion at April 30, 2012, and 2011, respectively.

Investments

Credit risk on investments represents the potential loss that the IMF may incur if obligors and counterparties default on their contractual obligations. Credit risk is managed through the conservative range of investments, which at present is limited to (i) domestic government bonds of countries in the Euro area, Japan, the United Kingdom, and the United States, that is, members whose currencies are included in the SDR basket; (ii) bonds of international financial organizations; (iii) claims on the Bank for International Settlements (BIS); and (iv) short-term deposits held at the BIS. Credit risk is currently further minimized by restricting investments to financial instruments rated A or higher by a major credit rating agency.

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

20122011
RatingPercentageRatingPercentage
Government bonds
AustriaAAA1
BelgiumAA1
FranceAAA1
GermanyAAA5.0%AAA7.1%
JapanAA–2.4%AA2.1%
United KingdomAAA1.6%AAA1.8%
United StatesAA+10.2%AAA8.5%
Non-governmental bonds
Bank for International SettlementsNot rated25.4%Not rated23.8%
Other international financial institutionsAAA5.6%AAA3.5%
AA+0.2%
Fixed-term deposits and other Bank for International SettlementsNot rated49.6%Not rated53.2%
100%100%

Less than 0.1%.

Less than 0.1%.

Market risk

Interest rate risk

Credit outstanding

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

Investments

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

The following sensitivity analysis assumes a 10 basis point change in yields reflecting the low global interest rate environment. The gold profits currently held in short-term deposits (see Note 7) are excluded from the sensitivity analysis. A 10 basis point increase in the average effective yields of the remaining IMF portfolio at April 30, 2012, would result in a loss of SDR 13.6 million or approximately 0.19 percent of the portfolio (SDR 11.2 million or 0.18 percent at April 30, 2011). A 10 basis point decrease would result in a gain of SDR 13.7 million or approximately 0.19 percent of the portfolio (SDR 11.1 million or 0.18 percent at April 30, 2011).

Borrowings

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

Exchange rate risk

Financial assets and liabilities other than investments

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

Investments

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

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

20122011
Net lossNet gain/(loss)
In millions of SDRsAs a percent of investments not denominated in SDRsIn millions of SDRsAs a percent of investments not denominated in SDRs
Euro(0.76)0.01%(2.16)0.04%
Japanese yen(0.76)0.01%
Pound sterling(0.29)(0.75)0.01%

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

20122011
Net gain/(loss)Net gain/(loss)
In millions of SDRsAs a percent of investments not denominated in SDRsIn millions of SDRsAs a percent of investments not denominated in SDRs
Euro0.810.01%0.770.01%
Japanese yen(0.01)(0.75)0.01%
Pound sterling0.28(0.76)0.01%

Borrowings

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

Liquidity risk

Liquidity risk is the risk to the IMF of nonavailability of resources to meet the financing needs of members and its own obligations. The IMF must have usable resources available to meet members’ demand for IMF financing. While the IMF’s resources are largely of a revolving nature, uncertainties in the timing and amount of credit extended to members during financial crises expose the IMF to liquidity risk. Moreover, the IMF must also stand ready to meet potential demands from members drawing upon their reserve tranche positions, which have no fixed maturity and are part of members’ reserves, and for encashment of creditor claims under bilateral borrowing agreements or the NAB in case of balance of payments need of the relevant creditor member.

The IMF manages its liquidity risk not by matching the maturity of assets and liabilities, but by closely scrutinizing developments in its liquidity position. Long-term liquidity needs are addressed by reviewing the adequacy of quota-based resources. General reviews of members’ quotas are conducted at intervals of no more than five years in order to evaluate the adequacy of quota-based resources to meet members’ demand for IMF financing. The last general review was completed in December 2010 with a proposal for doubling quotas. Moreover, the bilateral borrowing agreements, and the enlarged and amended NAB, allow for drawings under these agreements/ arrangements in certain circumstances to meet requests for encashment by creditor members, or their institutions, in case of balance of payments needs.

Short-term liquidity needs for lending activities are reviewed and approved by the Executive Board on a quarterly basis through a financial transactions plan (FTP) for quota resources and borrowed resources under bilateral borrowing agreements, and the resource mobilization plan (RMP) for use of resources under the NAB. The IMF also monitors its short-term liquidity position using objective criteria such as the forward-commitment capacity. (Schedule 2 provides the GRA’s available resources and liquidity position.)

Investments

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

Income risk

The IMF has been relying principally on income from charges levied on outstanding credit to meet its operating costs. Due to its role in the world economy, the level of IMF lending fluctuates significantly, and in light of the current global crisis and increased lending activities, the IMF’s income risk has subsided in the current environment.

In 2008, the Executive Board proposed new and sustainable income and expenditure frameworks to close the then projected income shortfall. The proposals were based on the recommendations of a committee of well-known experts, appointed by the IMF’s Managing Director in 2006, to study sustainable financing options for the IMF. Key elements of the new income model include establishing an endowment using the profits from the limited sale of 12.97 million ounces (403.3 metric tons) of post-Second Amendment gold holdings, expanding the investment authority to enhance the expected return on the IMF’s investments, and reinstating the practice of reimbursing the IMF for the cost of administering the PRG Trust. The expenditure framework proposal included significant expenditure cuts over the medium term. In May 2008, the IMF’s Board of Governors endorsed these proposals and adopted the related resolution on the amendment of the Articles of Agreement. The gold sales were completed in December 2010, and in February 2011 the amendment to expand the investment authority of the IMF entered into effect after the required majority of IMF members had accepted it. The Executive Board is considering new rules and regulations to implement the broadened investment authority.

Operational risk

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

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

5. Currencies and credit outstanding

Net changes in the IMF’s holdings of members’ currencies for the financial years ended April 30, 2012, and 2011, were as follows:

April 30, 2010Net changeApril 30, 2011Net changeApril 30, 2012
(In millions of SDRs)
Members’ quotas217,43219,924237,356637237,9931
Members’ outstanding use of IMF credit in the GRA41,23824,30165,53928,64394,182
Members’ reserve tranche positions in the GRA(37,221)(19,031)(56,252)(9,523)(65,775)
Administrative currency balances4(2)235
Total currencies221,45325,192246,64519,760266,405

At April 30, 2012, quotas exclude SDR 123.0 million receivable from South Sudan for its quota, which was paid in May 2012.

At April 30, 2012, quotas exclude SDR 123.0 million receivable from South Sudan for its quota, which was paid in May 2012.

On June 24, 2010, and April 18, 2012, Tuvalu and South Sudan became the 187th and 188th members of the IMF with quotas of SDR 1.8 million and SDR 123.0 million, respectively.

Under the 2008 Quota and Voice reforms, which became effective in March 2011, 54 member countries were eligible for quota increases. At April 30, 2011, 36 members had consented and paid in full their quota increases which amounted to SDR 19.9 billion. During the financial year ended April 30, 2012, an additional eight members consented and paid their quota increases amounting to SDR 0.6 billion.

A reform package, approved by the Board of Governors in December 2010, will result in a doubling of quotas to SDR 476.8 billion. To become effective, the proposed quota increases will have to be consented to by members having 70 percent of the total quotas as of November 5, 2010 and the proposed amendment on the reform of the Executive Board needs to have entered into force. Members have committed to use best efforts to complete the required steps by the 2012 Annual Meetings.

Currency holdings include receivables and payables arising from valuation adjustments at April 30, 2012, when all holdings of currencies of members were last revalued, and amounted to SDR 11,597 million and SDR 4,737 million, respectively (SDR 8,259 million and SDR 6,811 million, respectively, at April 30, 2011). Settlements of these receivables or payables are required to be made by or to members promptly after the end of each financial year.

During the financial year ended April 30, 2012, the IMF approved Stand-By Arrangements (SBAs) for Georgia, Kosovo, Serbia, and St. Kitts and Nevis totaling SDR 1,204 million, extended arrangements for Greece and Portugal for SDR 47,527 million, and a Flexible Credit Line (FCL) arrangement for Colombia for SDR 3,870 million (for the financial year ended April 30, 2011, SBAs for Antigua and Barbuda, Greece, Honduras, Kosovo, Romania, and Ukraine totaling SDR 39,762 million, extended arrangements for Armenia and Ireland for SDR 19,599 million, FCL arrangements for Colombia, Mexico, and Poland totaling SDR 82,470 million (this includes a cancelled arrangement for Poland amounting to SDR 13,690 million) and a PLL arrangement for Macedonia in the amount of SDR 413 million). No arrangements were augmented during the financial years ended April 30, 2012, and 2011.

During the same period, drawings under SBAs and extended arrangements amounted to SDR 32,204 million (SDR 26,569 million for the financial year ended April 30, 2011 under SBAs, extended arrangements and PLL arrangement). There were no drawings under FCL arrangements during the financial years ended April 30, 2012 and 2011. Credit outstanding in the GRA and SAF loans in the SDA are carried at amortized cost.

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

April 30, 2010PurchasesRepurchasesApril 30, 2011PurchasesRepurchasesApril 30, 2012
(In millions of SDRs)
Credit tranches40,58121,485(1,918)60,1485,930(3,551)62,527
Extended Fund Facility4475,084(345)5,18626,274(4)31,456
Enlarged access159(3)156(3)153
Compensatory and Contingency Financing Facility34(2)32(3)29
Supplementary Financing Facility171717
Total credit outstanding41,23826,56(2,268)65,53932,204(3,561)94,182

Scheduled repurchases in the GRA are summarized below (in addition, SDR 9 million in repayments of SAF loans in the SDA are also overdue):

Financial year ending April 30General Resources Account
(In millions of SDRs)
201313,732
201420,914
201517,469
201610,834
20176,650
2018 and beyond24,304
Overdue279
Total94,182

Overdue obligations

At April 30, 2012, and 2011, two members were six months or more overdue in settling their financial obligations to the General Department as follows:

GRA Repurchases and SAF loansGRA Charges and SAF interest
2012201120122011
(In millions of SDRs)
Total overdue288295838834
Overdue for six months or more288295836832
Overdue for three years or more288295826815

The type and duration of the overdue amounts in the General Department were as follows at April 30, 2012:

GRA Repurchases and SAF loansGRA Charges and SAF interestTotal obligationLongest overdue obligation
(In millions of SDRs)
Somalia106119225July 1987
Sudan182719901July 1985
Total2888381,12

6. Interest and charges

At April 30, 2012, the credit outstanding on which the IMF levies charges amounted to SDR 94,182 million (SDR 65,539 million at April 30, 2011). For the financial years ended April 30, 2012, and 2011, the basic rate of charge was set at the SDR interest rate plus a fixed margin of 100 basis points. The average rate of charge (adjusted for burden sharing) before applicable surcharges for the financial year ended April 30, 2012, was 1.30 percent (1.35 percent for the financial year ended April 30, 2011).

Interest and charges receivable at April 30 were as follows:

20122011
(In millions of SDRs)
Periodic charges1,3581,213
Amount paid through burden sharing(703)(699)
Unpaid charges(134)(134)
521380
Interest receivable42
Total interest and charges receivables525387

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

20122011
(In millions of SDRs)
Interest and periodic charges1,9431,232
Burden sharing adjustments22
Total interest and charges1,9451,234

Interest earned on SAF loans for the financial years ended April 30, 2012, and 2011, amounted to less than SDR 0.05 million each year.

Service charges and commitment fees on canceled, reduced, or expired arrangements amounted to SDR 186 million and SDR 298 million for the years ended April 30, 2012, and 2011, respectively.

7. Investments

Investments are held in the IA (SDR 14,244 million and SDR 13,171 million at April 30, 2012, and 2011, respectively) and the MDRI-I Trust (SDR 13 million, at April 30, 2012, and 2011) and are managed by external investment managers. Gold profits in the amount of SDR 6,853 million, from the limited gold sale program, were transferred to the IA in March 2011, and have been placed in short-term fixed-term deposits pending decisions on new rules and regulations for a broadened investment authority. A contribution of SDR 280 million was effected in June 2010 from the MDRI-I Trust, through the SDA, to the newly established Post-Catastrophe Debt Relief (PCDR) Trust. The investments comprise fixed-term deposits, short-term investments, and fixed-income securities, none of which include asset-backed securities. Fixed-income securities include domestic government bonds of the Euro area, Japan, the United Kingdom, and the United States, and medium-term instruments issued by the Bank for International Settlements.

At April 30, investments consisted of the following:

20122011
(In millions of SDRs)
Short-term investments292,383
Fixed-term deposits6,8994,583
Fixed-income securities7,3296,218
Total investments14,25713,184

The following table presents the fair value hierarchy used to determine the fair value of investments, at April 30, 2012:

Level 1Level 2Level 3Total
(In millions of SDRs)
Short-term investments21829
Fixed-term deposits6,8996,899
Fixed-income securities7,2397,329
Total2114,23614,257

The following table presents the fair value hierarchy used to determine the fair value of investments, at April 30, 2011:

Level 1Level 2Level 3Total
(In millions of SDRs)
Short-term investments502,3332,383
Fixed-term deposits4,5834,583
Fixed-income securities6,1286,218
Total5013,13413,184

The maturities of the investments were as follows:

Investments maturing in financial year ending April 30
(In millions of SDRs)
20137,442
20143,533
20153,250
201610
2017 and beyond22
Total14,257

Investment income

Investment income amounted to SDR 169 million for the IA and SDR 0.05 million for the MDRI-I Trust for the financial year ended April 30, 2012 (SDR 56 million and SDR 0.2 million, respectively, for the financial year ended April 30, 2011). Investment income includes interest income of SDR 31 million from the investment of the gold profits in fixed-term deposits (total income of SDR 2 million for the financial year ended April 30, 2011).

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

20122011
(In millions of SDRs)
Interest income136128
Realized gains1986
Realized losses(85)(41)
Unrealized gains16241
Un realized losses(63)(158)
Total16956

8. Gold holdings

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

In September 2009, the Executive Board approved gold sales in a volume strictly limited to 403.3 metric tons. The gold sales are a central element of the new income model, which includes establishing an endowment to finance the IMF’s activities on a long-term sustainable basis (see Notes 3 and 4). For an initial period, sales were approved to be conducted only directly with official sector purchasers such as interested central banks (“off-market sales”). In February 2010, the IMF also began market sales with the involvement of agents with expertise in the conduct of such sales (“on-market sales”) but continued to stand ready for off-market sales. Sales on-market were phased over time and were conducted in a manner that ensured that such sales could be accommodated within the limit on official gold sales set forth in the August 7, 2009 Central Bank Gold Agreement.

The gold sales were completed during the financial year ended April 30, 2011. The total profits realized from the gold sales program amounted to SDR 6,853 million, after taking account of the book value (SDR 2,685 million) of gold that was sold. The realized gains from the sales of gold during the financial year ended April 30, 2011 in the amount of SDR 3,100 million were included in the consolidated statements of comprehensive income.

At April 30, 2012, and 2011, the IMF held 2,814 metric tons, equal to 90.474 million fine ounces, at designated depositories. Gold holdings were valued at a historical cost of SDR 3,167 million at April 30, 2012, and 2011, based on a cost per troy ounce of SDR 35.

At April 30, 2012, the market value of the IMF’s holdings of gold was SDR 96.4 billion (SDR 85.7 billion at April 30, 2011).

9. Fixed assets

Fixed assets amounted to SDR 281 million and SDR 289 million at April 30, 2012, and 2011, respectively, and consisted of land, buildings, equipment, furniture, and software.

LandBuildingsOtherTotal
(In millions of SDRs)
Financial year ended April 30, 2012
Cost
Beginning of the year96315155566
Additions42024
Disposals(1)(1)(2)
End of the year95318175588
Accumulated depreciation and amortization
Beginning of the year173104277
Additions112031
Disposals(1)(1)
End of the year183124307
Net book value at April 30, 20129513551281
LandBuildingsOtherTotal
(In millions of SDRs)
Financial year ended April 30, 2011
Cost
Beginning of the year96305135536
Additions102030
Disposals
End of the year96315155566
Accumulated depreciation and amortization
Beginning of the year16284246
Additions112031
Disposals
End of the year173104277
Net book value at April 30, 20119614251289

Disposals include the sale of land and a building for sales proceeds of SDR 14 million in January 2012. Net gain on the sale amounted to SDR 13 million.

10. Burden sharing and the Special Contingent Account

Under the burden sharing mechanism, the basic rate of charge is increased and the rate of remuneration is reduced to offset the effect on the IMF’s income of the nonpayment of charges that are overdue for more than six months and also to finance the additions to the SCA-1.

Cumulative charges, net of settlements, that have resulted in adjustments to charges and remuneration since May 1, 1986 (the date the burden sharing mechanism was adopted) amounted to SDR 706 million at April 30, 2012 (SDR 699 million at April 30, 2011). The cumulative refunds for the same period, resulting from the settlements of overdue charges for which burden sharing adjustments have been made, amounted to SDR 1,320 million at April 30, 2012, and 2011.

Balances in the SCA-1 are to be distributed to the members that contributed toward the SCA-1 when there are no longer any outstanding overdue repurchases and charges, or at such earlier time as the IMF may decide. Amounts collected from members for the SCA-1 are akin to refundable cash deposits and are recorded as collections of usable currencies or SDRs and as a liability to those who paid them. Losses arising from overdue obligations, if realized, would be shared by members in proportion to their cumulative contributions to the SCA-1. No additions have been made to the SCA-1 during the financial years ended April 30, 2012, and 2011.

11. Borrowings

The IMF may potentially borrow up to SDR 368.1 billion under the enlarged and amended NAB, bilateral borrowing agreements and the GAB. During the financial year ended April 30, 2012, the IMF met part of its financing needs by drawing on bilateral borrowing agreements and the enlarged and amended NAB, in the amount of SDR 20,425 million (SDR 13,301 million from bilateral borrowing agreements during the financial year ended April 30, 2011). During the financial year ended April 30, 2012, borrowing claims totaling SDR 38 million were repaid following an early repurchase of credit outstanding by Iceland in the amount of SDR 288.8 million (none during the financial year ended April 30, 2011). With the coming into effect of the enlarged and amended NAB in April 2011, creditor claims under bilateral borrowing agreements may be folded into the enlarged and amended NAB at the election of the NAB participant. At April 30, 2012, most of the claims under bilateral borrowing agreements were folded into the NAB (see Schedule 4). Total borrowings at April 30, 2012 were SDR 40,046 million, an increase of 104 percent compared with borrowings of SDR 19,659 million at April 30, 2011 (see Schedule 4).

The NAB is a standing set of credit lines under which participants are committed to provide supplementary resources to the IMF when these are needed to forestall or cope with a threat to the international monetary system. Fourteen new participants, including a number of major emerging market economies, have joined 26 participants in the previous NAB (two of the new participants with commitments of SDR 3.5 billion had not completed the domestic process for adherence as at April 30, 2012). Total NAB commitments were SDR 366.5 billion at April 30, 2012 (see Schedule 4). Total bilateral borrowing commitments of members that are not NAB participants were SDR 1.6 billion at April 30, 2012.

The average interest rate on outstanding borrowings for the financial year ended April 30, 2012, was 0.30 percent per annum (0.35 percent per annum during the financial year ended April 30, 2011) and the interest expense on outstanding borrowings during the same period was SDR 83 million (SDR 49 million during financial year ended April 30, 2011).

Most of the claims under the borrowing arrangements are encashable, subject to certain conditions, upon demand by the lenders. IMF borrowing guidelines have set an SDR 15 billion limit per agreement on possible immediate encashment of bilateral loans and notes. The enlarged and amended NAB allows for drawings in certain circumstances to meet requests for encashment by members or their institutions in case of balance of payments needs. During the financial years ended April 30, 2012 and 2011, the Executive Board set the mix between quota resources and bilateral borrowing agreements for IMF disbursements at a ratio of 1:1. Upon activation of the enlarged and amended NAB, the mix between borrowed resources under the expanded NAB and quota resources for IMF disbursements was set at 3:1.

In November 2011, the Executive Board, with the concurrence of the NAB participants, extended the maximum maturity of NAB claims from five to ten years, effective November 17, 2012. The new maturity will apply not only to new claims following that date, but also to outstanding claims. The bilateral borrowing agreements generally provide for initial terms of one or two years, which could be extended for additional periods up to a maximum of five years. Normally, drawings are repayable in three months but maturities can be unilaterally extended by the IMF for additional three-month periods for a total of up to five years to match the maturity of IMF credit under Stand-By Arrangements. Claims on borrowings and notes are transferable within the official sector, which includes all IMF members, their central banks or other fiscal agencies, and prescribed SDR holders.

Under the General Arrangement to Borrow (GAB) and an associated agreement with Saudi Arabia, the IMF may potentially borrow up to SDR 17 billion and SDR 1.5 billion, respectively, when supplementary resources are needed to forestall or to cope with an impairment of the international monetary system. The GAB became effective on October 24, 1962, and has been renewed periodically, most recently through December 26, 2013. The borrowing agreement with Saudi Arabia entered into force on December 26, 1983 and was last renewed through December 26, 2013.

In April 2012, the International Monetary and Finance Committee (IMFC) and Group of Twenty (G-20) Finance Ministers and Governors jointly announced an agreement to further enhance IMF resources through a new round of bilateral borrowing. At that time, firm commitments were made for over US$430 billion. This bolsters IMF resources that would be available for crisis prevention and resolution and to meet the potential financing needs of all IMF members. These additional resources will serve as a second line of defense to the IMF’s quota and NAB resources and as a bridge to the Fifteenth General Review of Quotas.

Scheduled repayments of outstanding borrowings are summarized below:

Financial year ending April 30
(In millions of SDRs)
2013
2014
20156,320
201613,300
201720,426
Total40,046

12. Remuneration

At April 30, 2012, total creditor positions on which the IMF paid remuneration amounted to SDR 58,712 million (SDR 49,192 million at April 30, 2011). The average rate of remuneration (adjusted for burden sharing) for the financial year ended April 30, 2012, was 0.30 percent (0.35 percent for the financial year ended April 30, 2011).

Remuneration consisted of the following for the years ended April 30:

20122011
(In millions of SDRs)
Remuneration161127
Burden sharing adjustments(2)(2)
159125

13. Administrative expenses

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

20122011
(In millions of SDRs)
Personnel393369
Pension and other long-term employee benefits100148
Travel6962
Other5170
Administrative expenses, net of reimbursements613649

For the financial year ended April 30, 2012, other expenses include the gain of SDR 13 million (see Note 9) on sale of fixed assets (none during the financial year ended April 30, 2011). During the financial year ended April 30, 2008, the IMF embarked on an institutional restructuring plan that involved voluntary staff separations, and a provision of SDR 68 million was made for expected severance and other termination benefits for separating staff, as well as outplacement and other direct costs. The restructuring costs were largely utilized during FY 2009-11. The provision at April 30, 2012 amounted to SDR 2 million (SDR 8 million at April 30, 2011).

14. Special Disbursement Account

Contributions to Administered Accounts

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

Proceeds from the payments of SAF loans, Trust Fund loans, and excess resources from the Supplementary Financing Facility Subsidy Account are transferred from the SDA to the Reserve Account of the PRG Trust as contributions. During the financial year ended April 30, 2012, there were no contributions from the Supplementary Financing Facility Subsidy Account to the Reserve Account of the PRG Trust as contributions (SDR 0.1 million in excess resources were contributed during the financial year ended April 30, 2011).

For the financial year ended April 30, 2012, the IMF Executive Board waived the reimbursement of expenses incurred in administering the PRG Trust, and decided to transfer SDR 63.1 million (SDR 46.4 million for the financial year ended April 30, 2011), which would otherwise have been reimbursed to the GRA from the PRG Trust Reserve Account, through the SDA, to the PRG Trust General Subsidy Account.

Trust Fund

The IMF is the Trustee of the Trust Fund, which was established in 1976 to provide balance of payments assistance on concessional terms to eligible members that qualified for such assistance. The Trust Fund is in liquidation following its termination in 1981. Since that date, the activities of the Trust Fund have been confined to the conclusion of its affairs. The Trust Fund has no assets other than loans and interest receivable from Somalia and Sudan amounting to SDR 89 million at April 30, 2012, and 2011, respectively. All interest income is deferred.

15. Arrangements

An arrangement is a decision of the IMF that gives a member the assurance that the IMF stands ready to provide usable currencies or SDRs during a specified period and up to a specified amount, in accordance with the terms of the arrangement. At April 30, 2012, the undrawn balances under 19 Stand-By and extended arrangements that were in effect in the GRA amounted to SDR 51,104 million (SDR 46,944 million under 22 Stand-By and extended arrangements at April 30, 2011).

In addition, at April 30, 2012, three arrangements under the FCL in the amount of SDR 70,328 million (three arrangements at April 30, 2011 in the amount of SDR 68,780 million), and one arrangement under the PLL with an undrawn balance of SDR 216 million (unchanged from April 30, 2011) were active; see Schedule 3.

16. Pension and other post-retirement benefits

The IMF has a defined benefit Staff Retirement Plan (SRP) that covers substantially all eligible staff and a Supplemental Retirement Benefits Plan (SRBP) for selected participants of the SRP. Participants contribute 7 percent of their pensionable gross remuneration and the IMF contributes the remainder of the cost of funding the Plans. In addition, the IMF provides other employment and post-retirement benefits, including medical, life insurance, and other long-term benefits. In 1995, the IMF established a separate account, the Retired Staff Benefits Investment Account (RSBIA), to hold and invest resources set aside to fund the cost of the post-retirement benefits.

The defined benefit obligations are valued annually by independent actuaries using the Projected Unit Credit Method. The actuarial valuation carried out at April 30, 2012, includes the amortization of prior service costs of SDR 3 million (SDR 4 million for the financial year ended April 30, 2011). The amounts recognized in the statements of financial position for the SRP, the SRBP, and other employee benefits for the financial years ended April 30 are determined as follows:

20122011 Total
SRPSRBPOtherTotal
(In millions of SDRs)
Fair value of plan assets4,78036565,4395,301
Present value of the defined benefit obligation(4,652)(620)(1,285)(6,557)(5,018)
Unrecognized actuarial losses/(gains)943962871,326(103)
Unrecognized prior service cost121214
Net balance sheet asset/(liability)1,071(521)(330)220194

The IMF expects to contribute SDR 118 million to its defined benefit pension plans during the financial year ending April 30, 2013.

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

20122011 Total
SRPSRBPOtherTotal
(In millions of SDRs)
Defined benefit obligation at beginning of year3,5124591,0475,0185,267
Current service cost692755151180
Interest cost1972761285320
Staff contributions2612728
Benefits paid(124)(13)(36)(173)(168)
Actuarial losses/(gains)803961061,005(223)
Exchange differences1692352244(386)
Defined benefit obligation at end of year4,6526201,2856,5575,018

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

20122011 Total
SRPSRBPOtherTotal
(In millions of SDRs)
Current service cost692755151180
Interest cost1972761285320
Expected returns on assets(303)(40)(343)(363)
Amortization of actuarial losses447
Prior service cost334
Total expense recognized in the statements of comprehensive income(37)5483100148
Actual return on assets(79)809

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

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

20122011 Total
SRPSRBPOtherTotal
(In millions of SDRs)
Fair value of assets at beginning of year4,7006015,3014,880
Expected return on assets30340343363
(Losses)/gains on assets(375)(47)(422)446
Employer contributions401570125114
Staff contributions2612728
Benefits paid(124)(13)(36)(173)(168)
Exchange differences21028238(362)
Actual fair value of assets at end of year4,78036565,4395,301

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

20122011201020092008
(In millions of SDRs)
Defined benefit obligation(6,557)(5,018)(5,267)(4,368)(4,000)
Plan assets5,4395,3014,8803,8394,940
(Deficit)/surplus in the Plans(1,118)283(387)(529)940
Experience adjustments on:
Plan liabilities1,005223(611)299303
Plan assets(422)446822(1,782)(20)
Exchange rates(6)256(9)(33)

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

20122011
(In percentage)
Cash3.54.6
Fixed income17.718.3
Equity46.648.9
Real assets7.86.6
Private equity and other24.421.6
100.0100.0

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

20122011
(In percentage)
Discount rate4.555.60
Expected return on plan assets6.506.50
Future salary increases4.60-9.004.60-9.00
Health-care trend rate5.00-8.005.00-10.25

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

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

Increase of 1 percentage pointDecrease of 1 percentage point
(In millions of SDRs)
Effect on the aggregate of the service cost and interest cost25(18)
Effect on defined benefit obligation268(204)

Other assets represent miscellaneous receivables that amounted to SDR 201 million and SDR 88 million at April 30, 2012, and 2011, respectively.

17. Related party transactions

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

The following summarizes the inter-entity balances at April 30, 2012, and 2011 and the related party transactions for the financial years then ended:

20122011
(In millions of SDRs)
SDR Department
Administrative expenses (reimbursed)23
PRG Trust
Cumulative SDA transfers to the:
Reserve Account2,8932,893
Subsidy Accounts1,018954
Administrative expenses (reimbursements forgone)6346
PRG-HIPC Trust
Cumulative transfers from the SDA1,2391,239
PCDR Trust
Cumulative transfers from the SDA280280
Administrative expenses (reimbursed)11
SRP and RSBIA
Administrative expenses (reimbursed)22

Less than SDR 500,000.

Less than SDR 500,000.

18. Subsequent events

In June 2012 at the G-20 Leaders Summit held in Los Cabos, Mexico, further commitments were made for additional IMF resources through bilateral borrowing. This increased the second line of defense, in addition to the IMF’s quota and NAB resources, to US$456 billion from the commitments made in April 2012 of over US$430 billion (see Note 11). In addition, in June 2012 the IMF Executive Board approved modalities for member countries to make these resources available through bilateral loan or note purchase agreements.

Schedule 1: Quotas, IMF’s holdings of currencies, reserve tranche positions, and outstanding credit and loans at April 30, 2012

(In millions of SDRs)

General Resources Account
IMF’s holdings of currencies1Outrtanding credit and loans
Reserve tranche positionGRA
AmountPercent2SDA3PRG Trust4Total5
MemberQuotaTotalPercent of quota(A)+(B) +(C) =(D)
Afghanistan, Islamic Republic of161.9161.9100.087.487.4
Albania60.061.3102.26.27.50.0119.426.9
Algeria1,254.7846.867.5407.9
Angola286.31,145.3400.0858.90.91858.9
Antigua and Barbuda13.540.5300.00.127.00.0327.0
Argentina2,117.12,116.9100.00.2
Armenia92.0512.4557.0420.40.45115.5535.9
Australia3,236.42,135.766.01,101.2
Austria2,113.91,453.568.8660.4
Azerbaijan160.9160.899.90.116.716.7
Bahamas, The130.3124.095.26.3
Bahrain135.063.847.371.2
Bangladesh533.3599.6112.40.466.70.07285.4352.1
Barbados67.561.791.45.8
Belarus386.42,591.2670.662,204.82.342,204.8
Belgium4,605.23,095.267.21,510.0
Belize18.819.3102.74.24.74.7
Benin61.959.796.42.267.067.0
Bhutan6.35.384.11.0
Bolivia171.5162.694.88.9
Bosnia and Herzegovina169.1507.3300.06338.20.36338.2
Botswana87.859.768.028.1
Brazil4,250.52,941.369.21,309.3
Brunei Darussalam215.2201.793.713.7
Bulgaria640.2606.194.734.1
Burkina Faso60.252.787.57.591.891.8
Burundi77.076.699.50.486.886.8
Cambodia87.587.5100.0
Cameroon185.7184.899.50.9110.4110.4
Canada6,369.24,544.771.41,824.5
Cape Verde9.69.6100.063.33.3
Central African Republic55.755.499.50.358.758.7
Chad66.663.795.62.94.14.1
Chile856.1558.165.2298.0
China9,525.97,018.573.72,507.4
Colombia774.0522.467.5251.6
Comoros8.98.494.40.59.69.6
Congo, Democratic Republic of the533.0533.0100.0308.8308.8
Congo, Republic of84.684.099.30.620.320.3
Costa Rica164.1144.187.820.0
Côte d’Ivoire325.2324.399.70.9393.5393.5
Croatia365.1364.999.90.2
Cyprus158.2101.464.156.8
Czech Republic1,002.2673.267.2329.1
Denmark1,891.41,321.669.9569.8
Djibouti15.914.893.11.116.916.9
Dominica8.29.2112.261.010.411.4
Dominican Republic218.91,033.2472.06814.30.86814.3
Ecuador347.8319.391.828.5
Egypt943.7943.7100.0
El Salvador171.3171.3100.0
Equatorial Guinea52.347.490.64.9
Eritrea15.915.9100.06
Estonia93.986.792.37.2
Ethiopia133.7126.294.47.5187.2187.2
Republic of Fiji70.353.976.716.4
Finland1,263.8847.567.1416.3
France10,738.57,321.768.23,416.9
Gabon154.3153.799.60.6
Gambia, The31.129.695.21.522.522.5
Georgia150.3687.0457.16536.70.5779.3616.0
Germany14,565.510,001.468.74,564.1
Ghana369.0369.0100.06357.9357.9
Greece1,101.819,802.01,797.2240.718,940.920.1118,940.9
Grenada11.711.7100.018.618.6
Guatemala210.2210.2100.0
Guinea107.1107.099.90.144.144.1
Guinea-Bissau14.214.098.60.27.27.2
Guyana90.990.9100.027.827.8
Haiti81.981.899.90.126.226.2
Honduras129.5120.993.48.614.214.2
Hungary1,038.48,074.7777.673.87,110.17.557,110.1
Iceland117.61,140.1969.518.71,041.31.111,041.3
India5,821.54,066.969.91,754.8
Indonesia2,079.31,933.893.0145.5
Iran, Islamic Republic of1,497.21,497.2100.06
Iraq1,188.42,086.9175.6171.11,069.61.141,069.6
Ireland1,257.614,835.51,179.7258.613,836.414.6913,836.4
Israel1,061.1735.669.3325.5
Italy7,882.35,322.767.52,559.6
Jamaica273.5815.3298.1541.80.58541.8
Japan15,628.511,817.375.63,811.5
Jordan170.5175.3102.80.35.10.015.1
Kazakhstan365.7365.7100.06
Kenya271.4258.495.213.0523.5523.5
Kiribati5.65.6100.06
Korea3,366.42,148.963.81,217.5
Kosovo59.067.9115.114.223.00.0223.0
Kuwait1,381.1967.470.0414.0
Kyrgyz Republic88.888.8100.06112.0112.0
Lao People’s Democratic Republic52.952.9100.01.81.8
Latvia142.11,057.4744.10.1915.30.97915.3
Lebanon266.4253.995.334.722.20.0222.2
Lesotho34.931.389.73.638.138.1
Liberia129.2129.2100.0637.737.7
Libya1,123.7827.973.7295.8
Lithuania183.9183.9100.06
Luxembourg418.7264.563.2154.2
Macedonia, former Yugoslav Republic of68.9265.9385.96197.00.21197.0
Madagascar122.2122.2100.0659.159.1
Malawi69.467.096.52.493.493.4
Malaysia1,773.91,246.070.2527.9
Maldives10.016.2162.02.08.20.012.110.3
Mali93.383.389.310.065.865.8
Malta102.068.967.533.2
Marshall Islands3.53.5100.06
Mauritania64.464.4100.054.554.5
Mauritius101.669.268.132.5
Mexico3,625.72,389.165.91,236.7
Micronesia, Federated States of5.15.1100.06
Moldova123.2236.2191.76113.00.12244.7357.7
Mongolia51.1173.6339.70.1122.60.132.4125.0
Montenegro27.520.976.06.6
Morocco588.2517.888.070.5
Mozambique113.6113.6100.06121.7121.7
Myanmar258.4258.4100.0
Namibia136.5136.499.90.1
Nepal71.371.3100.0671.371.3
Netherlands5,162.43,498.467.81,664.1
New Zealand894.6612.668.5282.0
Nicaragua130.0130.0100.0115.6115.6
Niger65.857.286.98.647.647.6
Nigeria1,753.21,753.1100.00.1
Norway1,883.71,297.168.9586.6
Oman237.0162.068.475.1
Pakistan1,033.76,008.2581.20.14,974.65.28224.05,198.6
Palau3.13.1100.06
Panama206.6194.894.311.9
Papua New Guinea131.6131.299.70.4
Paraguay99.978.478.521.5
Peru638.4430.967.5207.5
Philippines1,019.3711.869.8307.5
Poland1,688.41,106.365.5582.1
Portugal1,029.716,768.01,628.4207.815,946.016.9315,946.0
Qatar302.6204.267.598.4
Romania1,030.211,599.21,125.910,569.011.2210,569.0
Russian Federation5,945.43,901.965.62,043.6
Rwanda80.180.1100.09.29.2
St. Kitts and Nevis8.944.7502.20.135.80.0435.8
St. Lucia15.316.8109.861.510.712.2
St. Vincent and the Grenadines8.37.894.00.57.17.1
Samoa11.610.994.00.75.85.8
San Marino22.416.975.45.5
Sâo Tomé and Príncipe7.47.4100.063.23.2
Saudi Arabia6,985.54,583.765.62,401.8
Senegal161.8160.098.91.8134.5134.5
Serbia467.71,835.5392.51,367.71.451,367.7
Seychelles10.936.4333.90.526.10.0326.1
Sierra Leone103.7103.7100.0679.079.0
Singapore1,408.0952.667.7455.7
Slovak Republic427.5288.567.5139.0
Slovenia275.0185.767.589.4
Solomon Islands10.49.995.20.612.512.5
Somalia44.2140.9318.896.70.108.8112.0
South Africa1,868.51,866.799.91.8
South Sudan123.0
Spain4,023.42,742.168.21,281.4
Sri Lanka413.41,747.0422.647.91,381.41.477.71,389.1
Sudan169.7352.4207.76182.70.19241.9
Suriname92.186.093.46.1
Swaziland50.744.187.06.6
Sweden2,395.51,671.969.8723.6
Switzerland3,458.52,093.760.51,364.8
Syrian Arab Republic293.6293.6100.06
Tajikistan87.087.0100.0691.491.4
Tanzania198.9188.995.010.0227.5227.5
Thailand1,440.51,009.170.1431.4
Timor-Leste8.28.2100.06
Togo73.473.099.50.495.395.3
Tonga6.95.275.41.7
Trinidad and Tobago335.6226.567.5109.1
Tunisia286.5230.380.456.2
Turkey1,455.82,842.0195.2112.81,499.01.591,499.0
Turkmenistan75.275.2100.06
Tuvalu1.81.477.80.4
Uganda180.5180.5100.064.24.2
Ukraine1,372.010,247.0746.968,875.09.428,875.0
United Arab Emirates752.5508.567.6244.6
United Kingdom10,738.56,955.964.83,782.7
United States42,122.427,091.764.315,030.3
Uruguay306.5206.967.599.6
Uzbekistan275.6275.6100.06
Vanuatu17.014.585.32.5
Venezuela, República Bolivariana de2,659.12,337.287.9321.9
Vietnam460.7460.7100.064.14.1
Yemen, Republic of243.5243.5100.0695.795.7
Zambia489.1489.1100.06269.1269.1
Zimbabwe353.4353.199.90.369.569.5
Total238,116.4266,404.965,774.994,182.2100.008.85,432.999,689.5
The ending balances reflect rounding.

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

Represents the percentage of total use of GRA resources (column A).

The Special Disbursement Account (SDA) of the General Department had financed loans under Structural Adjustment Facility (SAF) and Poverty Reduction Growth Facility (PRGF) arrangements.

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

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

Less than SDR 50,000.

The ending balances reflect rounding.

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

Represents the percentage of total use of GRA resources (column A).

The Special Disbursement Account (SDA) of the General Department had financed loans under Structural Adjustment Facility (SAF) and Poverty Reduction Growth Facility (PRGF) arrangements.

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

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

Less than SDR 50,000.

Schedule 2: Financial resources and liquidity position in the General Resources Account at April 30, 2012, and 2011

(In millions of SDRs)

20122011
Total resources
Currencies266,405246,645
SDR holdings10,5228,644
Gold holdings3,1673,167
Other assets114,18113,362
Available resources under borrowing arrangements2294,275271,818
Total resources250,836270,507
545,111542,325
Less: Non-usable resources3148,704118,895
of which: Credit outstanding94,18265,539
Equals: Usable resources4396,407423,430
Less: Undrawn balances under GRA arrangements121,648115,940
Equals: Uncommitted usable resources274,759307,490
Plus: Repurchases one year forward513,7323,265
Less: Repayments of borrowing one year forward61,082
Less: Prudential balance739,99640,074
Equals: One-year Forward Commitment Capacity (FCC)247,413270,681
Memorandum items
Resources committed under borrowings arrangements
NAB366,457363,247
Others1,5981,700
Quotas of members that finance IMF transactions198,381198,672
Liquid liabilities65,77556,252

Other assets reflect current assets (charges, interest, non–MDRI-I Trust investments, and other receivables) net of other liabilities including remuneration payable.

Includes amounts available for drawing under activated borrowing and note purchase arrangements. Includes (1) activated amount of the NAB and portion of NAB financing from prior activation periods not yet drawn; (2) amounts available under bilateral borrowing and note purchase agreements of NAB participants needed to cover financing of undrawn balances under pre-NAB approved arrangements based on the current 1:1 bilateral borrowed to quota resources financing ratio; (3) undrawn balances under bilateral agreements of non-NAB participants fully available to finance both pre- and post-NAB commitments. The available resources exclude a prudential balance set at 20 percent of amounts made available under the NAB and other items, such as the initial and subsequent folding in of bilateral claims into the NAB.

Resources are regarded as nonusable if they cannot be used in the financing of the IMF’s ongoing operations and transactions. These resources include (1) gold holdings, (2) currencies of members that are using IMF credit, (3) currencies of other members with relatively weak external positions, and (4) other assets.

Usable resources consist of (1) holdings of currencies of members considered by the IMF as having balance of payments and reserve positions sufficiently strong for their currencies to be used in transfers, (2) SDR holdings, and (3) any unused amounts under credit lines that have been activated.

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

Repayments of borrowings during the coming 12-month period.

Prudential balance is set at 20 percent of (1) quotas of members that issue the currencies that are used in the financing of IMF transactions and (2) any amounts made available under bilateral borrowing and note purchase agreements. The prudential balance excludes amounts under bilateral and note purchase agreements of NAB participants.

Other assets reflect current assets (charges, interest, non–MDRI-I Trust investments, and other receivables) net of other liabilities including remuneration payable.

Includes amounts available for drawing under activated borrowing and note purchase arrangements. Includes (1) activated amount of the NAB and portion of NAB financing from prior activation periods not yet drawn; (2) amounts available under bilateral borrowing and note purchase agreements of NAB participants needed to cover financing of undrawn balances under pre-NAB approved arrangements based on the current 1:1 bilateral borrowed to quota resources financing ratio; (3) undrawn balances under bilateral agreements of non-NAB participants fully available to finance both pre- and post-NAB commitments. The available resources exclude a prudential balance set at 20 percent of amounts made available under the NAB and other items, such as the initial and subsequent folding in of bilateral claims into the NAB.

Resources are regarded as nonusable if they cannot be used in the financing of the IMF’s ongoing operations and transactions. These resources include (1) gold holdings, (2) currencies of members that are using IMF credit, (3) currencies of other members with relatively weak external positions, and (4) other assets.

Usable resources consist of (1) holdings of currencies of members considered by the IMF as having balance of payments and reserve positions sufficiently strong for their currencies to be used in transfers, (2) SDR holdings, and (3) any unused amounts under credit lines that have been activated.

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

Repayments of borrowings during the coming 12-month period.

Prudential balance is set at 20 percent of (1) quotas of members that issue the currencies that are used in the financing of IMF transactions and (2) any amounts made available under bilateral borrowing and note purchase agreements. The prudential balance excludes amounts under bilateral and note purchase agreements of NAB participants.

Schedule 3: Status of arrangements in the General Resources Account at April 30, 2012

(In millions of SDRs)

MemberDate of arrangementExpirationTotal amount agreedUndrawn balance
Stand-By Arrangements
Antigua and BarbudaJune 7, 2010June 6, 20138154
Bosnia and HerzegovinaJuly 8, 2009June 30, 20121,015676
El SalvadorMarch 17, 2010March 16, 2013514514
GeorgiaApril 11, 2012April 10, 2014125125
IraqFebruary 24, 2010July 23, 20122,3771,307
JamaicaFebruary 4, 2010May 3, 2012821279
KosovoApril 27, 2012December 26, 20139187
MaldivesDecember 4, 2009December 3, 20124941
RomaniaMarch 31, 2011March 30, 20133,0913,091
St. Kitts and NevisJuly 27, 2011July 26, 20145319
SerbiaSeptember 29, 2011March 28, 2013935935
Sri LankaJuly 24, 2009July 23, 20121,654276
UkraineJuly 28, 2010December 27, 201210,0007,750
Total Stand-By Arrangements20,80615,154
Extended Arrangements
ArmeniaJune 28, 2010June 27, 201313363
GreeceMarch 15, 2012March 14, 201623,78522,386
IrelandDecember 16, 2010December 15, 201319,4665,629
MoldovaJanuary 29, 2010January 28, 201318572
PortugalMay 20, 2011May 19, 201423,7427,796
SeychellesDecember 23, 2009December 22, 2012204
Total Extended Arrangements67,33135,950
Precautionary and Liquidity Line1
Macedonia, former Yugoslav Republic ofJanuary 19, 2011January 18, 2013413216
Total Precautionary and Liquidity Line413216
Flexible Credit Line
ColombiaMay 6, 2011May 5, 20133,8703,870
MexicoJanuary 10, 2011January 9, 201347,29247,292
PolandJanuary 21, 2011January 20, 201319,16619,166
Total Flexible Credit Line70,32870,328
Total General Resources Account158,878121,648

Formerly Precautionary Credit Line.

Formerly Precautionary Credit Line.

Schedule 4: Status of borrowings in the General Resources Account at April 30, 2012, and 201

Member Central BankCommitment amountCumulative bilateral claims folded inOutstanding borrowingsBilateral claims folded inOutstanding borrowings
20122011
(In millions of SDRs)(In millions of SDRs)
NAB commitments1
Australia4,370n/a446n/a
Austria3,579223365223223
Belgium7,862898898485485
Brazil8,741750892750750
Canada7,624857857741741
Banco Central de Chile1,360n/a139n/a
China31,2173,7003,6673,7003,700
Cyprus340n/a35n/a
Danmarks Nationalbank3,208366366191191
Deutsche Bundesbank25,3712,8982,8981,5321,532
Finland2,232113228113113
France18,6572,1302,1301,0561,056
Hong Kong Monetary Authority340n/a35n/a
India8,741990990750750
Bank of Israel500n/a51n/a
Italy13,5781,5501,5502142
Japan65,9537,4547,4547,0707,070
Korea6,583n/a507n/a
Kuwait341n/a35n/a
Luxembourg971n/a99n/a
Malaysia340n/a35n/a
Mexico4,995n/a510n/a
Netherlands9,0441,0171,017543543
New Zealand624n/a64n/a
Norway3,871435435351351
Bangko Sentral ng Pilipinas340n/a35
National Bank of Poland2,530n/a258
Banco de Portugal1,54264646464
Russian Federation8,741n/a892n/a
Saudi Arabia11,126n/a1,135n/a
Singapore1,277n/a130n/a
South Africa340n/a35n/a
Spain6,702765765361361
Sveriges Riksbank4,440507507225225
Swiss National Bank10,905n/a1,113n/a
Thailand340n/a35n/a
United Kingdom18,6572,0982,0981,1261,126
United States69,074n/a7,049n/a
366,45726,81519,281
Borrowing Agreements(In millions)
Central Bank of Malta€ 1201510
Slovak Republic€ 4405338
Czech National Bank€ 1,03012590
Slovenia€ 2803424
Total40,04619,659
The ending balances reflect rounding.

At April 30, 2012 bilateral borrowing agreements for the following remained open but with creditor claims folded into the expanded NAB: National Bank of Belgium, Canada, People’s Bank of China, Danmarks Nationalbank, Deutsche Bundesbank, France, Reserve Bank of India, Banca d’Italia, Japan, De Nederlandsche Bank NV, Norges Bank, Banco de Portugal, Spain, Sveriges Riksbank, and United Kingdom. On November 18, 2011, the National Bank of Poland joined the NAB. On January 24, 2012, Bangko Sentral ng Pilipinas also joined the NAB. In addition to the NAB, the IMF may also borrow under the GAB, and an associated agreement with Saudi Arabia, amounts up to SDR 17 billion and SDR 1.5 billion, respectively, but with maximum borrowings under the NAB and GAB of SDR 366.5 billion.

Represents outstanding borrowings from Banca d’Italia which were folded into the NAB on May 12, 2011.

The ending balances reflect rounding.

At April 30, 2012 bilateral borrowing agreements for the following remained open but with creditor claims folded into the expanded NAB: National Bank of Belgium, Canada, People’s Bank of China, Danmarks Nationalbank, Deutsche Bundesbank, France, Reserve Bank of India, Banca d’Italia, Japan, De Nederlandsche Bank NV, Norges Bank, Banco de Portugal, Spain, Sveriges Riksbank, and United Kingdom. On November 18, 2011, the National Bank of Poland joined the NAB. On January 24, 2012, Bangko Sentral ng Pilipinas also joined the NAB. In addition to the NAB, the IMF may also borrow under the GAB, and an associated agreement with Saudi Arabia, amounts up to SDR 17 billion and SDR 1.5 billion, respectively, but with maximum borrowings under the NAB and GAB of SDR 366.5 billion.

Represents outstanding borrowings from Banca d’Italia which were folded into the NAB on May 12, 2011.

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