Chapter

APPENDIX IX

Author(s):
International Monetary Fund
Published Date:
January 1990
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Financial Statements

REPORT OF THE EXTERNAL AUDIT COMMITTEE

Washington, D.C.

June 29, 1990

Authority and Scope of the Audit

In accordance with Section 20(b) of the By-Laws of the International Monetary Fund we have audited the financial statements of the Fund covering the

—General Department (including the General Resources Account, Borrowed Resources Suspense

Accounts and Special Disbursement Account) for the year ended April 30, 1990,—SDR Department for the year ended April 30, 1990, and

—Accounts administered by the Fund, which consist of the Supplementary Financing Facility Subsidy Account, the Trust Fund, the Enhanced Structural Adjustment Facility Trust, the Enhanced Structural Adjustment Facility Administered Accounts, the Administered Account—Japan, the Administered Account—Guyana, and the Voluntary Contribution Account—Bolivia for the year ended April 30, 1990; and the Administered Technical Assistance Account—Japan for the period March 19, 1990 to April 30, 1990.

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

Audit Opinion

In our opinion, the financial statements of the General Department (including the related supplemental schedules one through four), the SDR Department, and the Accounts Administered by the Fund have been prepared in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding year (except for the Administered Technical Assistance Account—Japan which was established in financial year 1990) and give a true and fair view of the respective financial positions and the allocations and holdings of SDRs as at April 30, 1990, and of the financial results of operations and transactions during the respective periods.

In connection with our examination of the Voluntary Contribution Account, in our opinion the operation of the Voluntary Contribution Account administered on behalf of Bolivia has been conducted in accordance with the Instrument establishing the Account.

EXTERNAL AUDIT COMMITTEE

/s/ Abdulaziz Al-Nasrullah, Chairperson (Saudi Arabia)

/s/ Michael Jacobs (Australia)

/s/ Mamadou A. Sow (Senegal)

GENERAL DEPARTMENT

BALANCE SHEET

as at April 30, 1990

(In thousands of SDRs)

(Note 1)

19901989
ASSETS
GENERAL RESOURCES ACCOUNT
Currencies and securities (Notes 2 and 5)90,936,41092,016,728
SDR holdings (Note 3)628,486975,951
Gold holdings (Note 4)3,620,3963,620,396
Borrowed resources held in suspense17350,362
Charges receivable and accrued (Note 5)511,335491,646
Deferred charges receivable (Note 5)960,666716,237
Interest receivable on SDR holdings21,68119,904
Other assets30,79217,462
TOTAL GENERAL RESOURCES ACCOUNT96,709,78398,208,686
SPECIAL DISBURSEMENT ACCOUNT
Currency deposits143,232
Interest-earning deposits844,8991,072,473
Structural adjustment facility loans1,548,619964,555
Accrued income on investments and loans40,00940,679
TOTAL SPECIAL DISBURSEMENT ACCOUNT2,433,5412,080,939
TOTAL GENERAL DEPARTMENT99,143,324100,289,625
QUOTAS, RESERVES, LIABILITIES, AND

SPECIAL DISBURSEMENT ACCOUNT RESOURCES
GENERAL RESOURCES ACCOUNT
Quotas
Subscriptions of members90,132,55089,987,550
Reserves (Note 6)1,396,9771,311,467
Special Contingent Account (Note 5)214,816149,816
Liabilities
Borrowing (Note 7)3,514,1625,607,483
Remuneration payable (Note 5)314,396272,717
Accrued interest on borrowing76,239113,954
Other liabilities and deferred credits99,97749,462
4,004,7746,043,616
Deferred income from charges (Note 5)960,666716,237
TOTAL GENERAL RESOURCES ACCOUNT96,709,78398,208,686
SPECIAL DISBURSEMENT ACCOUNT
Accumulated resources2,433,3122,080,739
Deferred income229200
TOTAL SPECIAL DISBURSEMENT ACCOUNT2,433,5412,080,939
TOTAL GENERAL DEPARTMENT99,143,324100,289,625
The accompanying notes and Schedules 1–4 are an integral part of the financial statements.
The accompanying notes and Schedules 1–4 are an integral part of the financial statements.

/s/Gerhard Laske

Treasurer

/s/M. Camdessus

Managing Director

GENERAL DEPARTMENT

STATEMENT OF INCOME AND EXPENSE

for the year ended April 30, 1990

(In thousands of SDRs)

(Note 1)

19901989
GENERAL RESOURCES ACCOUNT
OPERATIONAL INCOME (Note 5)
Periodic charges1,878,0901,786,166
Addition to periodic charges127,113141,648
Special charges64,28342,457
Deduct: Income deferred, net244,429250,839
1,825,0571,719,432
Interest on SDR holdings (Note 3)88,17661,286
Service charges22,20110,641
Other4,7832,001
1,940,2171,793,360
OPERATIONAL EXPENSE
Remuneration (Note 5)1,383,3231,130,046
Reduction of remuneration (Note 5)127,146141,415
1,256,177988,631
Interest on borrowing, net of income from temporary

investments in Borrowed Resources Suspense Accounts
(SDR 14,857 in 1990 and SDR 24,397 in 1989)344,962514,952
Allocation to the Special Contingent Account (Note 5)65,00062,862
1,666,1391,566,445
NET OPERATIONAL INCOME274,078226,915
ADMINISTRATIVE EXPENSE (Note 9)
Personnel141,610127,663
Travel26,86624,509
Other, net (Note 1)20,09220,519
188,568172,691
NET INCOME OF GENERAL RESOURCES ACCOUNT85,51054,224
SPECIAL DISBURSEMENT ACCOUNT
Investment income73,77071,719
Interest and special charges on loans6,4413,561
80,21175,280
Gain (loss) in SDR value pending investment and loan disbursements(63)247
Administrative expense (Note 9)13,10011,100
NET INCOME OF SPECIAL DISBURSEMENT ACCOUNT67,04864,427
The accompanying notes and Schedules 1–4 are an integral part of the financial statements.
The accompanying notes and Schedules 1–4 are an integral part of the financial statements.

GENERAL DEPARTMENT

STATEMENT OF CHANGES IN RESERVES AND RESOURCES

for the year ended April 30, 1990

(In thousands of SDRs)

(Note 1)

19901989
RESERVES—GENERAL RESOURCES ACCOUNT
SPECIAL RESERVE (Note 6)
Balance at beginning of the year945,887891,663
Net income85,51054,224
Balance at end of the year1,031,397945,887
GENERAL RESERVE (Note 6)
Balance at beginning and end of the year365,580365,580
TOTAL RESERVES OF THE GENERAL RESOURCES

ACCOUNT
1,396,9771,311,467
RESOURCES—SPECIAL DISBURSEMENT ACCOUNT
Balance at beginning of the year2,080,7391,618,771
Transfers from Trust Fund361,301452,482
Transfers from SFF Subsidy Account3,3035,000
Transfers to ESAF Trust(79,079)(59,941)
2,366,2642,016,312
Net income67,04864,427
TOTAL RESOURCES OF THE SPECIAL DISBURSEMENT

ACCOUNT
2,433,3122,080,739
The accompanying notes and Schedules 1-4 are an integral part of the financial statements.
The accompanying notes and Schedules 1-4 are an integral part of the financial statements.

GENERAL DEPARTMENT

NOTES TO THE FINANCIAL STATEMENTS

Under the Articles of Agreement, the General Department consists of the General Resources Account, the Special Disbursement Account, and the Investment Account. The Investment Account had not been activated at April 30, 1990. The Executive Board also established in May 1981, the Borrowed Resources Suspense Accounts.

General Resources Account

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

Each member is required to pay to the Fund the amount of its initial quota and subsequent increases partly in the member’s own currency and the remainder in the form of reserve assets, except that for the increases proposed in 1978, members were permitted to pay the entire increase in their own currencies. A member’s quota cannot be increased until the member consents to the increase and pays the subscription.

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

When members make purchases, they incur an obligation to repurchase, within the periods specified by the Fund, the Fund’s holdings of their currencies by the payment to the Fund of SDRs or the currencies of other members specified by the Fund. The Fund’s policies on the use of its resources are intended to assure that use of its resources is temporary and will be reversed within time periods specified by the Fund.

The composition of the Fund’s holdings of members’ currencies changes as a result of the Fund’s operations and transactions, including purchase and repurchase transactions in currencies as noted above. The caption “Currencies and securities” in the Balance Sheet reflects holdings of currencies of all members, including those of members that make use of the Fund’s resources and those used to finance the Fund’s operations and transactions.

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

Members may make use of Fund resources under various policies and the amount of such use is related to a member’s quota in the Fund. Under the credit tranche policy, credit is at present made available to members in a range consisting of four tranches or segments each equal to 25 percent of a member’s quota. A first credit tranche purchase is defined as one that raises the Fund’s holdings of a member’s currency in the credit tranche from 0 to 25 percent of quota. Subsequent purchases are referred to as tipper credit tranche purchases. Higher conditionally accompanies the use of Fund credit in the upper tranches.

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

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

  • Compensatory and contingency financing—to assist members, particularly exporters of primary commodities, encountering payments difficulties produced by temporary export shortfalls attributable to circumstances beyond their control and in addition, at their option, to assist members encountering payments difficulties produced by an excess in the cost of their cereal imports. The compensatory financing facility includes a mechanism for contingency financing to support adjustment programs supported by the Fund.

  • Buffer stock financing—to assist members in connection with the financing of international buffer stocks of primary products.

  • Extended Fund facility—to provide, through extended arrangements not exceeding three years (and where appropriate, at the request of a member, up to four years), medium-term assistance to members to make structural adjustments in their economies. Purchases under these arrangements depend upon the member’s meeting the performance criteria included in the arrangements.

  • Supplementary financing facility and the policy on enlarged access—to make resources available under stand-by and extended arrangements, in addition to those available in the credit tranches or under the extended Fund facility, to members facing serious payments imbalances that are large in relation to their quotas. These policies are temporary and may be utilized only in conjunction with the use of resources in the upper credit tranches.

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

Borrowed Resources Suspense Accounts

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

At April 30, 1990, there were SDR 0.02 million in borrowed resources held in suspense (SDR 350.36 million at April 30, 1989).

Special Disbursement Account

The Fund administers a Trust Fund, established in 1976 to provide balance of payments assistance (loans) on concessional terms to certain members. The Special Disbursement Account was activated on June 30, 1981, to receive transfers from the Trust Fund (repayments of loans and interest) which is in the process of being wound up. Amounts received into the Special Disbursement Account from the Trust Fund were transferred on a same-day pass-through to the Supplementary Financing Facility Subsidy Account, which was established for the purpose of reducing the cost of eligible members that used the Fund’s resources under the supplementary financing facility. In July 1985, the Fund determined that the resources of the Supplementary Financing Facility Subsidy Account were sufficient to meet its estimated needs, and transfers to that account from the Special Disbursement Account were terminated. Amounts received from the Trust Fund are now being transferred to the Enhanced Structural Adjustment Facility Trust through the Special Disbursement Account.

Within the Special Disbursement Account a structural adjustment facility was established in March 1986 to provide balance of payments assistance to qualifying low-income developing members. Resources are committed to qualifying members for a three-year period, upon approval by the Fund, in support of a three-year macroeconomic and structural adjustment program presented by the member,

Loans disbursed under the structural adjustment facility are repayable in ten semiannual installments commencing not later than the end of the first six months of the sixth year, and to be completed at the end of the tenth year after the date of the disbursement. Interest is charged on the outstanding loan balances at the rate of ½ of 1 percent per annum.

Members are not obligated to maintain the SDR value of their currency held by the Fund in the Special Disbursement Account. Pending their use, the resources held in the Special Disbursement Account are placed in SDR-denominated investments. Prior to an SDR-denominated investment, balances may be placed temporarily in U.S. dollar-denominated investments. Thus, there may be valuation gains and losses in terms of the SDR on these resources from the time they are received until they can be invested in SDR-denominated investments.

The Special Disbursement Account is a part of the General Department of the Fund. However, the assets of the account are to be held separately from other accounts of the General Department and the income of the account is placed to the Special Disbursement Account.

The Fund administers the Enhanced Structural Adjustment Facility Trust (ESAF Trust) which was established in December 1987 to provide loans on concessional terms to eligible members to support programs to strengthen substantially and in a sustainable manner their balance of payments position and to foster growth. The Special Disbursement Account transfers the following resources to the Reserve Account of the ESAF Trust: (i) all income received from the investment of the resources available for the structural adjustment facility; (ii) all interest received, including from special charges, on loans under the structural adjustment facility; (iii) all repayments of loans under the structural adjustment facility; and (iv) all the resources held in the Special Disbursement Account that are derived from the termination of the 1976 Trust Fund and that can no longer be used under the structural adjustment facility. Resources of the ESAF Trust Reserve Account which may be in excess of its estimated needs are to be transferred back to the Special Disbursement Account. Upon liquidation of the ESAF Trust, the amounts remaining in the Reserve Account after the discharge of remaining liabilities shall be transferred to the Special Disbursement Account. Transfers to the ESAF Trust Reserve Account commenced in March 1988. For the year ended April 30, 1990, SDR 79 million (SDR 60 million at April 30, 1989) had been transferred from the Special Disbursement Account to the ESAF Trust Reserve Account.

1. Accounting Practices

Unit of Account

The accounts of the General Department are expressed in terms of the SDR. At present, the currency value of the SDR is determined by the Fund each day by summing the values in U.S. dollars, based on market exchange rates, of a basket of five specific currencies. The Fund’s procedures require that the SDR valuation basket be reviewed each five years, and provide that the basket is to include the currencies of the members having the largest exports of goods and services during the five-year period ending one year prior to the date of the revisions. The currencies comprising the basket and their amounts in the basket are as follows:

CurrenciesAmounts
U.S. dollar0.452
Deutsche mark0.527
French franc1.02
Japanese yen33.4
Pound sterling0.0893

Members’ currencies are valued in terms of the SDR on the basis of the representative rate of exchange determined in accordance with the Rules of the Fund. Gold held by the Fund is valued on the basis that one SDR is equivalent to 0.888671 gram of fine gold (see Note 4).

Basis of Accounting

The Fund maintains its accounts on an accrual basis and, accordingly, recognizes income as it is earned and records expenses as they are incurred except that income from charges from members that are overdue in their obligations to the Fund by six months or more is deferred and is recognized as income only when paid unless the member has remained current in settling charges when due (see discussion of deferred charges in Note 5). It is the practice of the Fund to make all calculations on the basis of the exact number of days in the accounting period.

The established policy of the Fund is to charge as an expense of each accounting period the total costs incurred for property, furniture and equipment, except for the cost of an acquisition of land which is accumulated in other assets pending completion of the project (SDR 12.1 million and SDR 0.2 million in 1990 and 1989, respectively). For the year ended April 30, 1990, the cost of building improvements and equipment in excess of $100,000 amounted to SDR 2.5 million (SDR 2.0 minion in 1989). The total accumulated cost of land and buildings, excluding the cost of the project which is accumulated in other assets, amounts to SDR 99 million (SDR 96 million in 1989).

2. Currencies and Securities

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

Changes in the Fund’s holdings of members’ currencies and securities for the year ended April 30, 1990 were as follows:

April 30,

1990
April 30,

1989
Net

Change
In millions of SDRs
Members’ quotas90,13389,988145
Members’ use of Fund resources22,09823,700(1,602)
Members’ reserve tranche positions(21,297)(21,675)378
Administrative currency balances24(2)
Currencies and securities90,93692,017(1,081)

Each member is obligated to maintain the value of the balances of its currency held by the Fund in terms of the SDR except for holdings which may be held in Borrowed Resources Suspense Accounts, the Special Disbursement Account, and the Investment Account. Whenever the Fund revalues its holdings of a member’s currency, an account receivable or an account payable is established for the amount of currency payable by or to the member in order to maintain the value of the Fund’s holdings of the currency in terms of the SDR. The balances of the accounts receivable or payable are reflected in the Fund’s total currency holdings. At April 30, 1990 accounts receivable to maintain SDR values of currency holdings amounted to SDR 14,826.2 million and accounts payable amounted to SDR 1,422.0 million (SDR 14,369.4 million and SDR 2,117.8 million, respectively at April 30, 1989). At June 25, 1990 the amounts receivable were SDR 5,030.2 million and the amounts payable were SDR 483.7 million.

The Fund’s holdings of members’ currencies at April 30, 1990 are shown in Schedule 1.

3. SDR Holdings

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

4. Gold Holdings

At April 30, 1990 and 1989, the Fund held 3,217,341 kilograms of gold at designated depositories.

5. Fund Operations

For the year ended April 30, 1990, members’ purchases amounted to SDR 4,502 million of which SDR 62 million were reserve tranche purchases. Over the same period, repurchases by members totaled SDR 6,042 million. Members’ purchases subject to repurchase are shown in Schedule 2.

The outstanding use of Fund credit under various facilities and changes during the year ended April 30, 1990 were as follows:

April 30,

1989
PurchasesRepurchasesApril 30,

1990
In millions of SDRs
Regular facilities5,9648371,6825,119
Compensatory and contingency financing3,6898086743,823
Extended Fund facility5,0551,4271,0105,472
Supplementary financing facility1,126651475
Enlarged access7,8661,3682,0257,209
Total23,7004,4406,04222,098

Periodic Charges and Remuneration

The Fund levies charges, which are payable periodically, on its holdings of a member’s currency that derive from the member’s use of Fund credit. With effect from February 1, 1986, special charges are levied on holdings that are not repurchased when due and on charges that are not settled when due. These special charges are designed to recover the direct financial costs to the Fund arising from members’ overdue financial obligations. A service charge is levied by the Fund on each purchase involving use of Fund resources other than reserve tranche purchases.

The Fund also charges a stand-by fee payable at the beginning of each 12-month period on the balance available during the subsequent 12-month period of a stand-by or extended arrangement. This fee is refunded proportionally to purchases made under an arrangement. If the full amount of an arrangement is not drawn, the balance of the stand-by fee is taken into income by the Fund upon the expiration of the arrangement. Stand-by fees included in other income for the year ended April 30, 1990 amounted to SDR 4.8 million (SDR 2.0 million in 1989).

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

At April 30, 1990, the total holdings on which the Fund levied charges amounted to SDR 22,098 million (SDR 23,700 million at April 30, 1989) and total creditor positions on which the Fund paid remuneration amounted to SDR 15,486 million (SDR 15,892 million in 1989).

Overdue Obligations

At April 30, 1990 and 1989, 11 members were six months or more overdue to the Fund. Credit outstanding to these members amounted to SDR 2,569 million as of April 30, 1990 (SDR 3,067 million as of April 30, 1989). Overdue repurchases and charges of these members were as follows:

RepurchasesCharges
1990198919901989
In millions of SDRs
Total overdue of which:2,1401,951879643
Overdue for more than six months2,0091,698765524
Overdue for more than three years82834823898

The type and duration of arrears of these members are as follows:

MemberRepurchasesCharges

and SAF

Interest
TotalLongest Overdue

Obligation
In millions of SDRs
Guyana66.429.996.3May 1983
Honduras19.32.922.2November 1988
Kampuchea,

Democratic
18.810.729.5March 1975
Liberia186.091.1277.1January 1985
Panama127.449.5176.9December 1987
Peru450.6175.7626.3December 1985
Sierra Leone43.115.458.5January 1987
Somalia74.122.796.8July 1987
Sudan564.3249.4813.7July 1984
Viet Nam28.415.043.4February 1984
Zambia561.5216.4777.9June 1986
Total2,139.9878.73,018.6

Deferred Charges

It is the policy of the Fund to exclude from current income charges owed by members that are six months or more overdue in meeting payments to the Fund unless the member is current in the payment of charges. Charges subsequently accrued will also be excluded from income unless the member becomes current in the payment of charges. Charges excluded from income are recorded as deferred charges and deferred income. Charges due and accrued by members that are six months or more overdue and that have been deferred amounted to SDR 961 million (SDR 716 million in 1989).

Effective May 1, 1986, the Fund adopted a policy under which debtor and creditor members share the financial consequences of overdue obligations (“burden sharing”). An amount equal to deferred charges (excluding special charges) is generated each quarter by an adjustment of the rate of charge and the rate of remuneration. However, the average rate of remuneration is not to be reduced below 85 percent of the SDR interest rate. The amounts received

in settlement of overdue charges are distributed to members that paid additional charges or received reduced remuneration when (and to the extent that) deferred charges that gave rise to adjustments are paid. The cumulative amount of deferred charges outstanding which have arisen subsequent to May 1, 1986, and have resulted in adjustments to charges and remuneration, amounts to SDR 729 million (SDR 539 million in 1989).

During the year ended April 30, 1990, new deferred charges net of settlement amounted to SDR 244 million (SDR 251 million in 1989), of which SDR 55 million (SDR 42 million in 1989) were deferred special charges. Including the adjustments described in the following paragraph, an amount of SDR 254 million (SDR 299 million in 1989) was recorded as additional periodic charges and reduced remuneration during the same period.

Special Contingent Account

In view of protracted overdue obligations, the Fund decided at the end of financial year 1987 further to strengthen its financial position by, inter alia, placing SDR 26.5 million into a Special Contingent Account. Additional amounts of SDR 60.4 million and SDR 62.9 million, generated through adjustments of the rate of charge and the rate of remuneration, were allocated to the Special Contingent Account in financial years 1988 and 1989, respectively. An amount of SDR 65.0 million also generated through adjustments of the rate of charge and the rate of remuneration was allocated to this account in financial year 1990. Balances in the Special Contingent Account are to be distributed to the members that contributed to the balances in the account when there are no outstanding overdue charges and repurchases, or at such earlier time as the Fund may decide.

6. Reserves

The Fund determines annually what part of its net income shall be placed to the General Reserve or to the Special Reserve, and what part, if any, shall be distributed. The Articles of Agreement permit the Fund to use the Special Reserve for any purpose for which it may use the General Reserve, except distribution. Any administrative deficit for any financial year must be charged first against the Special Reserve.

7. Borrowing

Outstanding borrowing by the Fund was as follows:

April 30,

1989
BorrowingRepaymentApril 30,

1990
In millions of SDRs
Supplementary financing facility639515124
Enlarged access4,9532,6032,350
Other151,0251,040
Total5,6071,0253,1183,514

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

Supplementary Financing Facility

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

Enlarged Access

The policy on enlarged access became operational in May 1981. The Fund entered into borrowing agreements with seven members, or institutions within their territories, the Bank for International Settlements, and the Swiss National Bank under which the lenders have agreed to make resources available to the Fund, up to SDR 15,305 million, to finance purchases by members under the policy. The maturities of borrowing by the Fund under these agreements vary from three months to seven years. Interest paid by the Fund on amounts borrowed under these agreements is at variable rates of interest which are established periodically, and are related to market interest rates, based on Eurocurrency deposit rates and weighted average yields of domestic instruments denominated in the five currencies in the SDR valuation basket.

Bilateral Arrangement with Japan

In December 1986, the Fund and the Government of Japan agreed to an arrangement under which Japan will make available to the Fund SDR 3 billion, of which SDR 2 billion remains available, to help finance the Fund’s support of adjustment programs of member countries. Calls under the agreement may be made by the Fund over a period of four years beginning March 31, 1987. This period may be extended for up to two years if an extension is considered to be warranted in the light of the Fund’s liquidity and borrowing needs. Each call is for a period of six months and will be renewable, at the option of the Fund, on the same basis. The final maturity of each call, including renewals, will be five years from the initial date of the call. Interest on amounts borrowed under the arrangement is based on the weighted average of six-month domestic interest rates in the countries that make up the currency basket of the SDR.

General Arrangements to Borrow

Under the General Arrangements to Borrow (GAB) and an associated agreement with a nonparticipant to the GAB, the Fund may borrow up to SDR 18.5 billion when supplementary resources are needed to forestall or to cope with an impairment of the international monetary system. The GAB became effective from October 24, 1962 and has been renewed until December 25, 1993.

Borrowing Guidelines

The Fund has established guidelines for borrowing, which provide that the Fund will not allow the total of outstanding borrowing, plus unused credit lines, to exceed the range of 50 to 60 percent of the total of Fund quotas. Since all GAB lines of credit are unlikely to be called upon at the same time, the total of outstanding borrowing shall include either outstanding borrowing by the Fund under the GAB, or two thirds of the total credit lines under the GAB and associated agreements, whichever is the greater. The borrowing guidelines are subject to review by the Executive Board. Total outstanding borrowing and unused credit lines, calculated in accordance with these guidelines, at April 30, 1990 was equal to 19.8 percent of quotas (25.3 percent of quotas at April 30, 1989).

8. Arrangements Under the General Department

At April 30, 1990, 51 arrangements were in effect and undrawn balances under these arrangements amounted to SDR 8,258.1 million. These arrangements are listed in Schedule 4.

9. Administrative Expenses

The Fund incurs administrative expenses, primarily for salaries, travel, and other administrative needs, in accordance with an administrative budget approved by the Executive Board. The General Resources Account is reimbursed for expenses incurred in administering the SDR Department, the Special Disbursement Account, and the Enhanced Structural Adjustment Facility Trust.

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

In addition to the payment of various allowances to or on behalf of Executive Directors and staff, the Fund has a contributory retirement plan. All contributions to the Plan and all other assets, liabilities, and income of the Plan are administered separately outside of the General Department and can be used only for the benefit of the participants in the Plan and their beneficiaries. Participants contribute a fixed percentage of pensionable remuneration. The Fund contributes the remainder of the cost of funding the Plan and pays certain administrative costs of the Plan.

The Fund uses the aggregate actuarial method for determining its pension cost and for funding the Plan. Under this method the employer’s contributions, including those for cost of living adjustments and for experience gains and losses, are spread over the expected future working lifetimes of the active participants in the Plan and are determined annually as a percent of pensionable remuneration of the active participants. The funding and cost of the Plan during the year ended April 30, 1990 were based upon an actuarial valuation as at April 30, 1988.

The Fund also has established a Supplemental Retirement Benefit Plan (SRBP) for the purpose of paying certain benefits not payable from the Staff Retirement Plan. Payments to the SRBP are made from the Administrative Budget. The assets of the SRBP are maintained separately from other assets of the Fund and are held on behalf of the participants and beneficiaries entitled to these payments.

The Fund staff is entitled to accumulated annual leave, up to a maximum of 60 days, which may be commuted into a cash payment upon termination of employment. In addition, upon the completion of five years’ service, each member of the staff is entitled to a termination grant, subject to maximum amounts based on years of service after July 1979. These amounts are accounted for as they are earned and entitlements have been accrued.

Schedule 1

GENERAL DEPARTMENT

QUOTAS, FUND’S HOLDINGS OF CURRENCIES, MEMBERS’ USE OF FUND RESOURCES, AND RESERVE TRANCHE POSITIONS

as at April 30,1990

(in thousands of SDRs)

Fund’s Holdings

of Currencies1
QuotasTotalPercent

of quota
Use of

Fund

Resources
Reserve

Tranche

Positions
Afghanistan86,70081,83394.44,884
Algeria623,1001,093,999175.6470,9003
Angola145,000145,145100.1
Antigua and Barbuda5,0004,999100.01
Argentina1,113,0003,277,124294.42,164,099
Australia1,619,2001,374,07684.9245,135
Austria775,600520,42767.1255,174
Bahamas, The66,40057,76287.08,642
Bahrain48,90019,88240.729,019
Bangladesh287,500596,315207.4308,812
Barbados34,10034,223100.42,2982,177
Belgium2,080,4001,760,04484.6320,358
Belize9,5009,22497.11,6311,908
Benin31,30029,28093.52,024
Bhutan2,5001,93077.2570
Bolivia90,700185,933205.095,2114
Botswana22,1003,54216.018,565
Brazil1,461,3003,213,872219.91,752,435
Burkina Faso31,60024,06476.27,540
Burundi42,70033,55678.69,156
Cameroon92,700177,457191.484,975218
Canada2,941,0002,542,54486.5398,470
Cape Verde4,5004,500100.01
Central African Republic30,40038,683127.28,375111
Chad30,60032,090104.91,750264
Chile440,5001,367,988310.6927,4905
China2,390,9002,611,312109.2523,009302,608
Colombia394,200394,201100.0
Comoros4,5004,498100.0;—5
Congo37,30043,957117.87,125482
Costa Rica84,100105,473125.421,352
Côste d’Ivoire165,500408,276246.7242,7782
Cyprus69,70052,32075.117,395
Denmark711,000480,64767.6230,358
Djibouti8,0006,76584.61,237
Dominica4,0005,886147.21,8949
Dominican Republic112,100186,801166.674,700
Ecuador150,700398,639264.5247,910
Egypt463,400579,407125.0116,0006
El Salvador89,00089,003100.0
Equatorial Guinea18,40020,247110.01,838
Ethiopia70,60088,263125.017,650
Fiji36,50028,62078.47,888
Finland574,900401,16569.8173,740
France4,482,8003,462,83277.21,020,031
Gabon73,100179,963246.2106,90138
Gambia, The17,10025,967151.98,89846
Germany, Federal Republic of5,403,7003,215,25559.52,188,458
Ghana204,500481,957235.7277,4532
Greece399,900317,34979.482,552
Grenada6,0006,142102.4141
Guatemala108,000162,652150.654,645
Guinea57,90072,900125.914,991
Guinea-Bissau7,5007,500100.02
Guyana49,200120,125244.270,922
Haiti44,10065,604148.821,54870
Honduras67,80091,116134.423,315
Hungary530,700728,487137.3197,784
Iceland59,60055,57993.34,025
India2,207,7002,826,705128.01,106,250487,244
Indonesia1,009,7001,400,180138.7462,90072,425
Iran, Islamic Republic of660,000660,007100.0
Iraq504,000504,013100.0
Ireland343,400221,65464.5121,748
Israel446,600446,606100.0
Italy2,909,1001,829,04362.91,080,059
Jamaica145,500420,028288.7274,462
Japan4,223,3001,752,35941.52,470,962
Jordan73,900140,133189.666,2352
Kampuchea, Democratic25,00037,494150.012,5007
Kenya142,000315,095221.9185,30012,218
Kiribati2,5002,501100.0
Korea462,800263,28856.9199,526
Kuwait635,300508,16580.0127,144
Lao People’s Democratic Republic29,30029,300100.0
Lebanon78,70059,86976.118,833
Lesotho15,10013,80791.41,294
Liberia71,300273,063383.0201,78228
Libyan Arab Jamahiriya515,700272,20052.8243,505
Luxembourg77,00064,76284.112,251
Madagascar66,400139,311209.872,909
Malawi37,20078,752211.743,7582,209
Malaysia550,600376,15868.3174,453
Maldives2,0001,99699.84
Mali50,80073,068143.830,9558,688
Malta45,10022,45149.822,677
Mauritania33,90056,672167.222,763
Mauritius53,60090,700169.237,14041
Mexico1,165,5005,952,561510.74,787,041
Morocco306,600897,019292.6590,44933
Mozambique61,00061,000100.07
Myanmar137,000137,003100.0
Nepal37,30043,317116.111,7195,707
Netherlands2,264,8001,759,44877.7505,360
New Zealand461,600417,42590.444,189
Nicaragua68,20068,210100.0
Niger33,70051,071151.525,9328,561
Nigeria849,500849,490100.068
Norway699,000278,13139.8420,869
Oman63,10036,42857.726,716
Pakistan546,300935,524171.2389,27249
Panama102,200333,178326.0230,97614
Papua New Guinea65,90065,919100.0
Paraguay48,40036,36375.112,041
Peru330,900898,072271.4567,139
Philippines440,4001,182,487268.5780,87038,826
Poland680,000850,002125.0170,000
Portugal376,600271,10372.0105,498
Qatar114,90096,11083.618,791
Romania523,400523,405100.0
Rwanda43,80036,71083.87,104
St. Kitts and Nevis4,5004,48899.715
St. Lucia7,5007,500100.02
St. Vincent4,0004,000100.0
Sao Tome and Principe4,0004,003100.1
Saudi Arabia3,202,4002,759,15986.2443,242
Senegal85,100189,815223.0105,7221,014
Seychelles3,0002,94898.354
Sierra Leone57,900113,332195.755,44324
Singapore92,40012,95214.079,449
Solomon Islands5,0005,413108.3938528
Somalia44,200142,794323.198,588
South Africa915,700915,665100.041
Spain1,286,000429,13033.4856,873
Sri Lanka223,100382,034171.2158,96834
Sudan169,700774,998456.7605,30111
Suriname49,30049,301100.0
Swaziland24,70024,692100.08
Sweden1,064,300803,74775.5260,560
Syrian Arab Republic139,100139,103100.05
Tanzania107,000145,016135.538,003
Thailand386,600411,659106.553,86128,804
Togo38,40068,200177.630,013219
Tonga3,2502,51277.3738
Trinidad and Tobago170,100364,147214.1194,0506
Tunisia138,200325,184235.3186,99616
Turkey429,100408,07895.111,25032,275
Uganda99,600166,407167.166,800
United Arab Emirates202,60067,83133.5134,770
United Kingdom6,194,0004,989,65280.61,204,342
United States17,918,30011,249,75762.86,669,399
Uruguay163,800288,621176.2124,814
Vanuatu9,0007,39682.21,607
Venezuela1,371,5002,300,694167.8929,191
Viet Nam176,800205,195116.128,3955
Western Samoa6,0006,872114.589626
Yemen Arab Republic43,30043,289100.015
Yemen, People’s Democratic Republic of77,20077,201100.0
Yugoslavia613,0001,128,072184.0515,038
Zaϊre291,000578,813198.9287,812
Zambia270,300944,780349.5674,49822
Zimbabwe191,000203,205106.412,24439
Total390,132,55090,936,41022,098,00121,296,477

includes nonnegotiable, non-interest-bearing notes which members are entitled to issue in substitution for currency.

Less than SDR 500.

Details may not add to totals due to rounding.

includes nonnegotiable, non-interest-bearing notes which members are entitled to issue in substitution for currency.

Less than SDR 500.

Details may not add to totals due to rounding.

Schedule 2

GENERAL DEPARTMENT

MEMBERS’ PURCHASES SUBJECT TO REPURCHASE BY YEAR OF SCHEDULED REPURCHASE1

as at April 30,1990

(In thousands of SDRs)

Ordinary ResourcesBorrowed Resources
Financial

Year

Ending

April 30
Credit

tranches
Extended

Fund

facility
Compensatory

and

contingency

financing
Supplementary

financing
Enlarged

access
Total
19911,832,9401,336,2781,444,297474,8412,477,4587.572.0572, 3
19921,102,430971,5691,014,9881,395,3724,484,358
19931,019,109781,606791,602947,4483,539,765
1994885,955627,035468,609966,5302,948,128
1995278,546434,882103,864699,2561,516,548
1996317,356366,645684,000
1997297,455356,360653,815
1998280,441280,441
1999256,619256,619
2000168,497168,497
Total45,118,9805,471,7393,823,358474,8417,209,06922,104,228

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

This total includes SDR 6.244 million of reserve tranche purchases made prior to April 1, 1978 that are subject to repurchase.

The total of members’ purchases subject to repurchase exceeds the outstanding use of Fund credit by SDR 6.23 million because certain purchases made prior to the Second Amendment of the Articles of Agreement effective on April 1,1978, which do not represent the extension of Fund credit, must be repurchased in accordance with the repurchase terms then in effect.

Details may not add to totals due to rounding.

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

This total includes SDR 6.244 million of reserve tranche purchases made prior to April 1, 1978 that are subject to repurchase.

The total of members’ purchases subject to repurchase exceeds the outstanding use of Fund credit by SDR 6.23 million because certain purchases made prior to the Second Amendment of the Articles of Agreement effective on April 1,1978, which do not represent the extension of Fund credit, must be repurchased in accordance with the repurchase terms then in effect.

Details may not add to totals due to rounding.

Schedule 3

GENERAL DEPARTMENT SCHEDULED REPAYMENTS OF FUND BORROWING

as at April 30,1990

(In thousands of SDRs)

Periods of Repayment1

Financial Years

Ending April 30
Supplementary

Financing

Facility
Enlarged

Access,

Resources
OtherTotal
1991123,7881,050,0001,173,788
1992575,00015,000590,000
1993350,000350,000
1994300,000300,000
199575,0001,025,3741,100,374
Total123,7882,350,0001,040,3743,514,162

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

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

Schedule 4

GENERAL DEPARTMENT

STATUS OF ARRANGEMENTS

as at april 30, 1990

(in thousands of SDRs)

MemberDate of ArrangementExpirationTotal

Amount

Agreed
Undrawn

Balance
GENERAL RESOURCES ACCOUNT
STAND-BY ARRANGEMENTS
AlgeriaMay 31,1989May 30, 1990155,700
ArgentinaNovember 10, 1989March 31, 19911,104,000920,000
CameroonSeptember 19, 1988June 30, 199061,80023,175
ChileNovember 8, 1989November 7, 199064,000
Costa RicaMay 23, 1989May 22, 199042,00042,000
Côte d’I voireNovember 20, 1989April 19, 1991175,800146,500
EcuadorSeptember 15, 1989February 28, 1991109,90070,650
GabonSeptember 15, 1989March 14, 199143,00032,500
HaitiSeptember 18, 1989December 31, 199021,0006,000
HungaryMarch 14, 1990March 13, 1991159,210127,370
JamaicaMarch 23, 1990May 31, 199182,00068,300
JordanJuly 14, 1989January 13, 199160,00033,200
MaliAugust 5, 1988June 4, 199012,7002,540
PakistanDecember 28, 1988June 30, 1990273,15078,670
Papua New GuineaApril 25, 1990June 24, 199126,36026,360
PolandFebruary 5, 1990March 4, 1991545,000375,000
Trinidad and TobagoApril 20, 1990March 31, 199185,00075,000
YugoslaviaMarch 16, 1990September 15, 1991460,000394,300
ZaϊreJune 9, 1989June 8, 1990116,40041,400
3,597,0202,462,965
EXTENDED ARRANGEMENTS
MexicoMay 26, 1989May 25, 19923,263,4001,655,010
PhilippinesMay 23, 1989May 22, 1992660,600424,680
TunisiaJuly 25, 1988July 24, 1991207,300207,300
VenezuelaJune 23, 1989June 22, 19923,703,1003,116,784
7,834,4005,403,774
TOTAL GENERAL RESOURCES ACCOUNT11,431,4207,866,739
SPECIAL DISBURSEMENT ACCOUNT
STRUCTURAL ADJUSTMENT FACILITY
BeninJune 16, 1989June 15, 199221,91015,650
Central African RepublicJune 1, 1987May 31, 199021,2806,080
ChadOctober 30, 1987October 29, 199021,4206,120
Equatorial GuineaDecember 7, 1988December 6, 199112,8809,200
GuineaJuly 29, 1987July 28, 199040,53011,580
Guinea-BissauOctober 14, 1987October 13, 19905,2501,500
Lao People’s Democratic RepublicSeptember 18, 1989September 17, 199220,51014,650
LesothoJune 29, 1988June 28, 199110,5703,020
MaliAugust 5, 1988August 4, 199135,56010,160
MozambiqueJune 8, 1987June 7, 199042,700
NepalOctober 14, 1987October 13, 199026,110
PakistanDecember 28, 1988December 27, 1991382,410109,260
Sao Tome and PrincipeJune 2, 1989June 1, 19922,8002,000
SomaliaJune 29, 1987June 28, 199030,94022,100
Sri LankaMarch 9, 1988March 8, 1991156,17044,620
TanzaniaOctober 30, 1987October 29, 199074,900
ZaϊreMay 15, 1987May 14, 1990203,70058,200
1,109,640314,140
SAF RESOURCES COMMITTED UNDER ESAF ARRANGEMENTS1
BoliviaJuly 27, 1988July 26, 199136,260
Gambia, TheNovember 23, 1988November 22, 19913,420
GhanaNovember 9, 1988November 8, 1991102,25020,450
KenyaMay 15, 1989May 14, 199271,00028,400
MadagascarMay 15, 1989May 14, 199233,20013,280
MalawiJuly 15, 1988July 14, 199126,0407,440
MauritaniaMay 24, 1989May 23, 19923,390
NigerDecember 12, 1988December 11, 19916,740
SenegalNovember 21, 1988November 20, 199111,489
TogoMay 31, 1989May 30, 199219,2007,680
UgandaApril 17, 1989April 16, 199219,920
332,92977,250
TOTAL SPECIAL DISBURSEMENT ACCOUNT1,442,569391,390
TOTAL GENERAL DEPARTMENT12,873,9898,258,129

Resources under enhanced structural adjustment facility arrangements may be provided from the structural adjustment facility within the Special Disbursement Account and from the Enhanced Structural Adjustment Facility Trust.

Resources under enhanced structural adjustment facility arrangements may be provided from the structural adjustment facility within the Special Disbursement Account and from the Enhanced Structural Adjustment Facility Trust.

SDR DEPARTMENT

STATEMENT OF ALLOCATIONS AND HOLDINGS as at April 30,1990

(In thousands of SDRs)

19901989
ALLOCATIONS
Net cumulative allocations of SDRs to participants21,433,33021,433,330
Charges due but not paid44,66535,400
21,477,99521,468,730
HOLDINGS
Participants with holdings above allocations

Allocations
11,408,28210,453,514
Net receipt of SDRs5,891,0315,125,641
17,299,31315,579,155
Participants with holdings below allocations

Allocations
10,025,04810,979,816
Net use of SDRs6,494,1376,611,927
3,530,9114,367,889
Total holdings by participants20,830,22419,947,044
General Resources Account628,486975,951
Prescribed holders19,285545,735
21,477,99521,468,730
The accompanying note is an integral part of the financial statements.
The accompanying note is an integral part of the financial statements.

/s/ Gerhard Laske

Treasurer

/s/ M. Camdessus

Managing Director

SDR DEPARTMENT

STATEMENT OF RECEIPT AND USE OF SDRs

for the year ended April 30,1990

(In thousands of SDRs)

Total
ParticipantsGeneral

Resources

Account
Prescribed

Holders
19901989
Total holdings at beginning of the year19,947,044975,951545,73521,468,73021,458,767
Receipt of SDRs
Transfers among participants and prescribed holders
Transactions by agreement6,493,988282,6176,776,6056,686,288
Operations

Forward operations
123,000123,00012,437
Settlement of financial obligations

Swaps
80,37865,916146,294154,525 1,510,026
Transfer of interest under swaps21,78621,78612,410
Fund-related operations Subsidy payments14,47314,47334,968
SAF loan104,551104,551165,277
SAF repayments and interest2,6682,6681,397
Trust Fund repayments and interest41,54341,54357,138
Special charges on SAF, ESAF, and Trust Fund202019
ESAF contributions and payments .1,01646,36547,38175,076
ESAF repayment and interest5375378
Net interest on SDRs457,55025,259482,809355,519
Transfers from participants to General Resources Account
Repurchases2,339,3062,339,3062,465,717
Charges1,897,1191,897,1191,733,707
Quota payments32,91532,915
Interest on SDRs86,39986,39956,453
Assessment on SDR allocation4,2704,2703,671
Transfers from General Resources Account to

participants and prescribed holders
Purchases944,823944,823623,799
Repayments of Fund borrowings1,844,8411,844,8411,782,368
Interest on Fund borrowings328,2945,339333,633489,850
In exchange for currencies of other

members

Acquisitions to pay charges
363,815363,815244,045
Remuneration1,196,2001,196,200894,252
Other

Refunds and adjustments
24,16224,16219,589
Total receipts11,875,8774,360,009593,26416,829,15017,378,539
Use of SDRs
Transfers among participants and

prescribed holders
Transactions by agreement5,879,095897,5106,776,6056,686,288
Operations
Forward operations123,000123,00012,437
Settlement of financial obligations65,91680,378146,294154,525
Swaps1,510,026
Transfer of interest under swaps21,78621,78612,410
Fund-related operations
Subsidy payments14,47314,47334,968
SAF loan104,551104,551165,277
SAF repayments and interest2,6682,6681,397
Trust Fund repayments and interest41,54341,45357,138
Special charges on SAF, ESAF, and Trust Fund202019
ESAF contributions46,3651,01647,38175,076
ESAF repayment and interest5375378
Transfers from participants to General
Resources Account Repurchases2,339,3062,339,3062,465,717
Charges1,897,1191,897,1191,733,707
Quota adjustment32,91532,915
Assessment on SDR allocation4,2704,2703,671
Transfers from General Resources Account to

participants and prescribed holders
Purchases944,823944,823623,799
Repayments of Fund borrowings1,844,8411,844,8411,782,368
Interest on Fund borrowings333,633333,633489,850
In exchange for currencies of other members
Acquisitions to pay charges363,815363,815244,045
Remuneration1,196,2001,196,200894,252
Other

Refunds and adjustments
24,16224,16219,589
Charges oaid in the SDR Department
Net charges due569,208569,208411,972
Charges not paid when due(63,711)(63,711)(40,835)
Settlement of unpaid charaes54,44654,44630,872
Total uses10,992,6974,707,4741,119,71416,819,88517,368,576
Total holdinas at end of the year20,830,224628,48619,28521,477,99521,468,730
The accompanying note is an integral part of the financial statements.
The accompanying note is an integral part of the financial statements.

SDR DEPARTMENT

NOTE TO THE FINANCIAL STATEMENTS

All transactions and operations involving SDRs are conducted through the SDR Department SDRs do not constitute claims by holders against the Fund to provide currency, except in connection with the termination of participation or liquidation. SDRs are allocated by the Fund to members that are participants in the SDR Department in proportion to their quotas in the Fund. Allocations were made in 1970, 1971, and 1972, totaling SDR 9.3 billion. Further allocations were made in 1979, 1980, and 1981, totaling SDR 12.1 billion. The Fund is empowered to prescribe certain official entities as holders of SDRs: to date, 16 institutions have been prescribed as holders. These prescribed holders do not receive allocations and cannot use or receive SDRs in designation.

Uses of SDRs

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

Interest, Charges, and Assessment

Interest is paid to each holder on its holdings of SDRs. Charges are levied on each participant’s net cumulative allocation plus any negative balance of the participants or unpaid charges. Interest on SDR holdings is paid and charges on net cumulative allocations are collected on a quarterly basis. Interest and charges are levied at the same rate and settled by crediting and debiting individual holdings accounts on the first day of the subsequent quarter. The Fund is required to pay interest to each holder, whether or not sufficient

SDRs are received in payment of charges. At April 30, 1990, six members (six members at April 30, 1989) were six months or more overdue to the SDR Department. The amount of unpaid charges of these members to the SDR Department was as follows:

19901989
In millions of SDRs
Total overdue, of which:43.135.0
Overdue for more than six months36.328.0
Overdue for more than three years7.65.5

The duration of arrears of these members is as follows:

MemberTotalLongest Overdue

Obligation
In millions of SDRs
Kampuchea, Democratic6.8November 1984
Liberia3.1August 1988
Panama4.6February 1988
Sierra Leone2.0May 1987
Viet Nam11.1November 1985
Zambia15.5May 1987
Total43.1

The SDR interest rate is determined by reference to a combined market interest rate, which is a weighted average of yields or rates on short-term instruments in the capital markets of France, the Federal Republic of Germany, Japan, the United Kingdom, and the United States. The combined market interest rate used to determine the SDR interest rate is calculated each Friday, using the yields or rates of that day. The SDR interest rate, which is set equal to the combined market interest rate, enters into effect on the following Monday and applies until the end of the following Sunday.

The expenses of conducting the business of the SDR Department are paid by the Fund from the General Resources Account, which is reimbursed in SDRs at the end of each financial year. For this purpose, the Fund levies an assessment, at the same rate for all participants, on their net cumulative allocation.

SUPPLEMENTARY FINANCING FACILITY SUBSIDY ACCOUNT

BALANCE SHEET

as at April 30,1990

(In thousands of SDRs)

(Note 1)

19901989
ASSETS
Interest-earning deposits (Note 2)11,51227,220
Accrued interest on deposits4521,206
Total11,96428,426
RESOURCES
Resources—Account balance11,96428,426
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

/s/ Gerhard Laske

Treasurer

/s/ M. Camdessus

Managing Director

SUPPLEMENTARY FINANCING FACILITY SUBSIDY ACCOUNT

STATEMENT OF CHANGES IN RESOURCES

for the year ended April 30,1990

(In thousands of SDRs)

(Note 1)

19901989
Balance at beginning of the year28,42665,936
Investment income1,3142,458
Transfers to the Special Disbursement Account(3,303)(5,000)
Balance before subsidy payments26,43763,394
Subsidy payments (Note 3)14,47334,968
Balance at end of the year11,96428,426
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

SUPPLEMENTARY FINANCING FACILITY SUBSIDY ACCOUNT

NOTES TO THE FINANCIAL STATEMENTS

Purpose

The Supplementary Financing Facility Subsidy Account, which is administered by the Fund, was established in December 1980 to assist low-income developing members to meet the cost of using resources made available through the Fund’s supplementary financing facility and under the policy on exceptional use. The assets of the Supplementary Financing Facility Subsidy Account are separate from the assets of all other accounts of, or administered by, the Fund and are not used to discharge liabilities or to meet losses incurred in the administration of other accounts. The Supplementary Financing Facility Subsidy Account became operational in May 1981 and the first subsidy payments were made in December of that year. The resources of the Account arise from contributions and loans from members, interest income earned on investments, and transfers of amounts received in interest and loan repayments from the Trust Fund through the Special Disbursement Account. Cumulative contributions from members to the Supplementary Financing Facility Subsidy Account at April 30, 1990 amounted to SDR 57.4 million. In July 1985, the Fund determined that the resources of the Supplementary Financing Facility Subsidy Account were sufficient to meet its estimated needs, and transfers from the Trust Fund were terminated. Resources considered to be in excess of the estimated subsidy payments are transferred back to the Special Disbursement Account. As of April 30, 1990, the cumulative amount of transfers to the Special Disbursement Account from the Subsidy Account amounted to SDR 75.4 million (SDR 72.1 million at April 30, 1989).

1. Accounting Practices

Unit of Account

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

CurrenciesAmount
U.S. dollar0.452
Deutsche mark0.527
French franc1.02
Japanese yen33.4
Pound sterling0.0893

Basis of Accounting

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

2. Interest-Earning Deposits

The assets of the account, pending their disbursement, are held in the form of interest-earning time deposits denominated in SDRs.

3. Subsidy Payments

The amount of the subsidy is calculated as a percentage per annum of the average daily balances in each year of the Fund’s holdings of recipient members’ currencies subject to the schedule of charges applicable to the supplementary financing facility. The rate of subsidy to be paid is determined by the Fund in light of the resources available. The subsidy may not exceed the equivalent of 3 percent per annum of the currency holdings resulting from purchases under the supplementary financing facility nor reduce the effective rate on the use of credit under the supplementary financing facility below the rate of charge on the use of the Fund’s ordinary resources. Subsidy payments are withheld from members that have not paid the charges to which the subsidy applies. At April 30, 1990, subsidy payments totaling SDR 3.7 million have not been made to five members (at April 30, 1989, SDR 4.5 million to the same members).

TRUST FUND

BALANCE SHEET

as at April 30, 1990

(In thousands of SDRs)

(Note 1)

19901989
ASSETS
Loans (Note 2)325,621682,168
Interest and special charges receivable and accrued (Note 3)18,25213,789
Investments, at cost (which approximates market value)3,2523,107
Accrued interest on investments95100
Total347,220699,164
TRUST RESOURCES AND LIABILITIES
Trust resources326,075682,776
Liabilities—
Undistributed profits from sale of gold (Note 4)3,0643,080
Deferred income (Note 3)17,89112,787
Borrowing (Note 5)189520
Accrued interest on borrowing11
Total347,220699,164
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

Is/ Gerhard Laske

Treasurer

fs/ M. Camdessus

Managing Director

TRUST FUND

STATEMENT OF INCOME AND EXPENSE

for the year ended April 30,1990

(In thousands of SDRs)

(Note 1)

19901989
Income
Interest and special charges on loans (Note 2)9,4639,662
Deduct income deferred (Note 3)5,1044,890
4,3594,772
Investment income269230
4,6285,002
Less
Exchange valuation loss2714
Interest expense on borrowing (Note 5)13
Net income4,6004,985
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

TRUST FUND

STATEMENT OF CHANGES IN TRUST RESOURCES

for the year ended April 30,1990

(In thousands of SDRs)

(Note 1)

19901989
Balance at beginning of the year682,7761,130,273
Net income4,6004,985
Balance before transfers to the Special
Disbursement Account687,3761,135,258
Transfers to the Special Disbursement
Account (Note 6)361,301452,482
Balance at end of the year326,075682,776
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

TRUST FUND

NOTES TO THE FINANCIAL STATEMENTS

Purpose

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

1. Accounting Practices

Unit of Account

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

CurrenciesAmounts
U.S. dollar0.452
Deutsche mark0.527
French franc1.02
Japanese yen33.4
Pound sterling0.0893

Basis of Accounting

The accounts are maintained on an accrual basis and, accordingly, income is recognized as it is earned and expenses are recorded as they are incurred except that income from interest from members that are overdue in their obligations to the Fund by six months or more is deferred and is recognized as income only when paid unless the member has remained current in settling charges when due (see Note 3). The expenses of conducting the business of the Trust Fund that are paid from the General Department of the Fund are reimbursable by the Trust Fund on the basis of an estimate of these expenses. Following the termination of the Trust Fund on April 30, 1981, residual administrative costs have been absorbed by the General Department. It is the practice of the Fund to make all calculations on the basis of the exact number of days in the accounting period.

2. Loans

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

3.Overdue Obligations

At April 30, 1990, eight members (seven members at April 30, 1989) with obligations to the Trust Fund were late by six months or more in discharging their obligations to the Fund and were also not current in settling interest. For these members the recognition of

income from interest on the outstanding loans and special charges is ; being deferred. At April 30, 1990, the total amount of deferred income, reflected in the balance sheet as interest and special charges receivable and accrued and as deferred income amounts to SDR 17.9 million (SDR 12.8 million at April 30, 1989). Overdue loan repayments and interest and special charges due from these members were as follows:

LoansInterest and

Special Charges
1990198919901989
In millions of SDRs
Total overdue, of which172.0161.215.711.0
Overdue for more than six months160.5147.813.18.6
Overdue for more than three years75.442.33.41.2

The type and duration of the arrears of these members at April 30, 1990 were as follows:

MemberLoansInterest

and

Special

Charges
TotalLongest

Overdue

Obligation
In millions of SDRs
Guyana7.70.48.1March 1987
Honduras3.40.13.5November 1988
Liberia24.72.827.5January 1985
Sierra Leone9.80.610.4January 1987
Somalia6.30.36.6July 1987
Sudan66.87.674.4July 1984
Viet Nam46.63.450.0February 1984
Zambia6.70.57.2April 1989
Total172.015.7187.7

4. Direct Distribution of Profits

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

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

5. Borrowing

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

6. Termination and Transfer of Resources

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

The resources of the Trust Fund held on the termination date or subsequently received by the Trustee have been employed to pay interest and principal when due on borrowing. The remaining resources are transferred to the Special Disbursement Account.

ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST

COMBINED BALANCE SHEET

as at April 30,1990

(In thousands of SDRs)

(Note 1)

Loan

Account
Reserve

Account
Subsidy

Account
Combined

1990
Combined

1989
ASSETS
Investments (Note 2)150,523261,384296,328708,235459,298
Loans415,986415,986173,793
Accrued interest receivable4,0497,7807,27119,10010,780
Accrued account transfers3,3683,413(6,781)
Currency4
Total573,926272,577296,818143,321643,875
LIABILITIES AND RESOURCES
Resources272,577214,734487,311245,083
Borrowing (Note 4)565,98781,365647,352395,842
Accrued interest on borrowing7,9117198,6302,933
Other liabilities 282817
Total573,926272,577296,8181,143,321643,875
The accompanying notes and Schedules 1-4 are an integral part of the financial statements.
The accompanying notes and Schedules 1-4 are an integral part of the financial statements.

/s/Gerhard Laske

Treasurer

/s/ M. Camdessus

Managing Director

ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST

COMBINED STATEMENT OF INCOME AND EXPENSE

for the year ended April 30, 1990

(In thousands of SDRs)

(Note 1)

Loan

Account
Reserve

Account
Subsidy

Account
Combined

1990
Combined

1989
Income
Investment income13,01218,23420,97252,21819,027
Interest on loans1,4221,422254
Exchange valuation gain2656779
Deduct: Interest expense on borrowing(14,923)(920)(15,843)(3,347)
Other expenses(28)(28)(17)
Net income (loss)(517)18,23620,11737,83615,996
The accompanying notes and Schedules 1-4 are an integral part of the financial statements.
The accompanying notes and Schedules 1-4 are an integral part of the financial statements.

ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST

COMBINED STATEMENT OF CHANGES IN RESOURCES

for the year ended April 30, 1990

(In thousands of SDRs)

(Note 1)

Loan

Account
Reserve

Account
Subsidy

Account
Combined

1990
Combined

1989
Balance at beginning of the year318160,10684,659245,08395,972
Contributions (Note 3)125,313125,31373,174
Transfers from Special
Disbursement Account79,07979,07959,941
Subsidy Account transfers15,355(15.355)
Loan Account transfers(15,156)15,156
Net income (loss)(517)18,23620,11737,83615,996
Balance at end of the year272,577214,734487,311245,083
The accompanying notes and Schedules 1-4 are an integral part of the financial statements.
The accompanying notes and Schedules 1-4 are an integral part of the financial statements.

ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST

NOTES TO THE FINANCIAL STATEMENTS

Purpose

The Enhanced Structural Adjustment Facility Trust, which is administered by the Fund as Trustee, was established in December 1987 to provide loans on concessional terms to low-income developing members that qualify for assistance in order to support programs to strengthen substantially and in a sustainable manner their balance of payments position and to foster growth. The resources of the Enhanced Structural Adjustment Facility Trust are separate from the assets of all other accounts of, or administered by, the Fund and may not be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

The operations and transactions of the Enhanced Structural Adjustment Facility Trust are to be conducted through a Loan Account, a Reserve Account, and a Subsidy Account.

Loan Account

The resources of the Loan Account consist of the proceeds of loans made to the Enhanced Structural Adjustment Facility Trust for the Loan Account, and payments of principal and interest on loans extended by the Enhanced Structural Adjustment Facility Trust. Resources of the Loan Account are committed to qualifying member countries for a three-year period, upon approval by the Trustee, in support of a three-year macroeconomic and structural adjustment program submitted by the member. Loans disbursed under the Enhanced Structural Adjustment Facility Trust are repayable in ten

semiannual installments commencing not later than the end of the first six months of the sixth year, and to be completed at the end of the tenth year after the date of disbursement. Interest is charged on the outstanding loan balances and is currently set at the rate of ½of 1 percent per annum. At April 30, 1990, SDR 416.0 million in loans had been disbursed (SDR 173.8 million at April 30, 1989).

Reserve Account

The resources of the Reserve Account consist of transfers by the Fund from the Special Disbursement Account; net earnings from investment of resources held in the Reserve Account; net earnings from investment of any resources held in the Loan Account pending use of these resources in operations; payment of overdue principal or interest thereon under Loan Account loans; and payments of interest under Loan Account loans to the extent that payment has been made to a lender from the Reserve Account.

The resources held in the Reserve Account are to be used by the Trustee to make payments of principal and interest on its borrowings for the Loan Account to the extent that the amounts available from receipts of repayments and interest from borrowers under the Loan Account, together with the authorized interest subsidy, are insufficient to cover payments to lenders as they become due and payable.

Subsidy Account

The resources held in the Subsidy Account consist of the proceeds of donations made for the Subsidy Account including transfers of net earnings on resources temporarily placed to administered accounts; the proceeds of loans made to the Subsidy Account; and the net earnings from investment of donated or borrowed resources held in the Subsidy Account.

The resources available in the Subsidy Account are drawn by the Trustee to pay the difference, with respect to each interest period, between the interest due by the borrowers under the Enhanced Structural Adjustment Facility Trust and the interest due on resources borrowed for Loan Account loans.

1. Accounting Practices

Unit of Account

The Accounts of the Enhanced Structural Adjustment Facility Trust are expressed in terms of the SDR. At present, the currency value of the SDR is determined by the Fund each day by summing the values in U.S. dollars, based on market exchange rates, of a basket of five specified currencies as follows:

CurrenciesAmounts
U.S. dollar0.452
Deutsche mark0.527
French franc1.02
Japanese yen33.4
Pound sterling0.0893

Members are not obligated to maintain the SDR value of their currency held by the Accounts of the Enhanced Structural Adjustment Facility Trust.

Basis of Accounting

The Accounts of the Enhanced Structural Adjustment Facility Trust are maintained on the accrual basis and, accordingly, income is recognized as it is earned and expenses are recorded as they are incurred. It is the practice of the Trustee to make all calculations on the basis of the exact number of days in the accounting period. The expenses of conducting the business of the Enhanced Structural Adjustment Facility Trust that are paid by the General Resources Account of the Fund are reimbursed on an annual basis by the Special Disbursement Account.

2. Investments

The resources of the Enhanced Structural Adjustment Facility Trust are invested pending their use in operations and transactions. Investments may be denominated in SDRs or in currency. Balances held in currency-denominated investments may give rise to valuation gains and losses. Pending their investment, resources may be temporarily held in currency, which also may give rise to valuation gains and losses.

3. Contributions

The Trustee accepts donations of resources for the Subsidy Account on such terms and conditions as agreed between the Trustee and the respective contributors. Cumulative contributions received as at April 30, 1990 amounted to SDR 203.9 million (SDR 78.6 million at April 30, 1989) and are listed in Schedule 1.

4. Borrowing

The Trustee borrows resources for the Loan Account and for the Subsidy Account on such terms and conditions as agreed between the Trustee and the respective lenders.

The following summarizes borrowing agreements concluded as at April 30, 1990 (in thousands of SDRs):

Amounts

Agreed
Amounts

Borrowed
Amounts

Available
Loan Account4,575,000565,9874,009,013
Subsidy Account101,36581,36520,000

At April 30, 1989 borrowing agreements had been concluded for the Loan Account and the Subsidy Account amounting to SDR 4,575 million and SDR 100 million, respectively. Amounts available under these agreements at April 30, 1989 were SDR 4,239 million for the Loan Account and SDR 40 million for the Subsidy Account.

Scheduled repayments of outstanding borrowing by the Trustee are shown in Schedule 2.

5. Commitments under Loan Arrangements

At April 30, 1990 resources of the Loan Account were committed to members under eleven loan arrangements and undrawn balances under those arrangements amounted to SDR 621 million. At April 30, 1989 undrawn balances under seven loan arrangements amounted to SDR 560 million. Loan arrangements are listed in Schedule 3. Scheduled repayments of outstanding loans are shown in Schedule 4.

Schedule 1

ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST

CONTRIBUTIONS TO THE SUBSIDY ACCOUNT1

as at April 30,1990

(In thousands of SDRs)

ContributorCumulative

Contributions
Austria4,434
Belgium7,111
Canada1,300
Denmark22,521
Finland13,782
Germany, Federal Republic of4,455
Greece2,551
Japan37,509
Korea27,700
Luxembourg1,003
Netherlands3,477
Norway9,102
Sweden36,571
United Kingdom32,374
Total contributions received203,890

The Subsidy Accounts also benefits from the net investment earnings of the proceeds of loans on investments which amounted to SDR 81.4 million at April 30, 1990.

The Subsidy Accounts also benefits from the net investment earnings of the proceeds of loans on investments which amounted to SDR 81.4 million at April 30, 1990.

Schedule 2

ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST

SCHEDULE OF REPAYMENTS OF BORROWING

as at April 30,1990

(In thousands of SDRs)

Periods of Repayment

Financial Years

Ending April 301
Loan

Account
Subsidy

Account
19941,465
199556,739
1996113,197
1997113,197
1998113,197
1999111,73260,000
200056,45820,000
2001
2002
20031,365
Total2565,98781,365

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

Details may not add to total due to rounding.

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

Details may not add to total due to rounding.

Schedule 3

ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST

STATUS OF LOAN ARRANGEMENTS 1

as at April 30,1990

(In thousands of SDRs)

Amount AgreedUndrawn Balance
MemberDate of

Arrangement
ExpirationESAF

Loan

Account
Structural

adjustment

facility
TotalESAF

Loan

Account
Structural

adjustment

facility
Total
BoliviaJuly 27, 1988July 26, 199199,77036,280136,05068,02568,025
Gambia, TheNov. 23, 1988Nov. 22, 199117,1003,42020,52010,26010,260
GhanaNov. 9, 1988Nov. 8, 1991265,850102,250368,100123,55020,450144,000
KenyaMay 15, 1989May 14, 1992170,40071,000241,400132,53328,400160,933
MadagascarMay 15, 1969May 14, 199243,70033,20076,90037,98713,28051,267
MalawiJuly 15, 1988July 14, 199129,76026,04055,80011,1607,44018,600
MauritaniaMay 24, 1989May 23, 199247,4603,39050,85033,90033,900
NigerDec. 12, 1988Dec. 11, 199143,8106,74050,55033,70033,700
SenegalNov. 21, 1988Nov. 20, 1991133,18211,488144,67042,55042,550
TogoMay 31, 1989May 30, 199226,88019,20046,08023,0407,68030,720
UgandaApr. 17, 1989Apr. 16, 1992159,36019,920179,280104,580104,580
Total21,037,272332,9281,370,200621,28677,250698,535

Resources under enhanced structural adjustment facility arrangements may be provided from the structural adjustment facility within the Special Disbursement Account and from the Enhanced Structural Adjustment Facility Trust.

Details may not add to totals due to rounding.

Resources under enhanced structural adjustment facility arrangements may be provided from the structural adjustment facility within the Special Disbursement Account and from the Enhanced Structural Adjustment Facility Trust.

Details may not add to totals due to rounding.

Schedule 4

ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST

SCHEDULE OF REPAYMENTS OF LOANS

as at April 30,1990

(In thousands of SDRs)

Periods of Repayment

Financial Years

Ending April 30
Loan Account
19941,465
199540,534
199683,197
199783,197
199883,197
199981,732
200042,663
Total1415,986

Details may not add to total due to rounding.

Details may not add to total due to rounding.

ENHANCED STRUCTURAL ADJUSTMENT FACILITY ADMINISTERED ACCOUNTS

BALANCE SHEET

as at April 30,1990

(In thousands of SDRs)

(Note 1)

19901989
AustriaBelgiumGreeceAustriaBelgiumGreece
ASSETS
Investments (Note 2)60,000100,00035,00060,00065,02835,000
Accrued interest receivable1,7502,7141,1331,5041,460988
Total61,750102,71436,13361,50466,48835,988
LIABILITIES AND RESOURCES
Resources1,6502,5631,0671,4041,392922
Deposits (Note 3)60,000100,00035,00060,00065,00035,000
Accrued interest on deposits100151661009666
Total61,750102,71436,13361,50466,48835,988
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

/s/ Gerhard Laske

Treasurer

/s/ M. Camdessus

Managing Director

ENHANCED STRUCTURAL ADJUSTMENT FACILITY ADMINISTERED ACCOUNTS

STATEMENT OF INCOME AND EXPENSE

for the year ended April 30, 1990

(In thousands of SDRs)

(Note 1)

19901989
AustriaBelgiumGreeceAustriaBelgiumGreece
Income
Investment income4,9807,8062,8711,5042,511988
Deduct: Interest expense on deposits30047117510017266
Net income4,6807,3352,6961,4042,339922
The accompanying notes area an integral part of the financial statements
The accompanying notes area an integral part of the financial statements

ENHANCED STRUCTURAL ADJUSTMENT FACILITY ADMINISTERED ACCOUNTS

STATEMENT OF CHANGES IN RESOURCES

for the year ended April 30, 1990

(In thousands of SDRs)

(Note 1)

19901989
AustriaBelgiumGreeceAustriaBelgiumGreece
Balance at beginning of year1,4041,392922
Net income4,6807,3352,6961,4042,339922
Transfers to Enhanced Structural
Adjustment Facility Trust
Subsidy Account(4,434)(6,164)(2,551)(947)
Balance at end of year1,6502,5631,0671,4041,392922
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

ENHANCED STRUCTURAL ADJUSTMENT FACILITY ADMINISTERED ACCOUNTS

NOTES TO THE FINANCIAL STATEMENTS

Purpose

The Administered Accounts were established for the administration of resources deposited in the accounts. The difference, net of any investment cost, between interest earned by the Fund on the investment of resources and the interest on deposits due will be transferred to the Subsidy Account of the Enhanced Structural Adjustment Facility Trust.

The resources of each of the Administered Accounts are separate from the assets of all other accounts of, or administered by, the Fund and may not be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

1. Accounting Practices

Unit of Account

The accounts of the Administered Accounts are expressed in terms of the SDR. At present, _the currency value of the SDR is determined by the Fund each day by summing the values in U.S. dollars, based on market exchange rates, of a basket of five specified currencies as follows:

CurrenciesAmounts
U.S. dollar0.452
Deutsche mark0.527
French franc1.02
Japanese yen33.4
Pound sterling0.0893

Basis of Accounting

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

2. Investments

The resources of the Administered Accounts are invested by the Fund in SDR-denominated deposits.

3. Deposits

The Administered Account Austria was established December 27, 1988 for the administration of resources deposited in the account by the Austrian National Bank. The deposit totaling SDR 60 million will be repaid in ten equal semiannual installments which begin five and one half years after the date of the deposit and will be completed at the end of the tenth year after the date of the deposit. The deposit will bear interest at an annual rate of ½ of 1 percent per annum.

The Administered Account Belgium was established July 27, 1988 for the administration of resources deposited in the account by the National Bank of Belgium. The deposits totaling SDR 100 million will each have an initial maturity of six months and will be renewable, at the option of the Fund, on the same basis. The final maturity of each deposit, including renewals, will be ten years from the initial date of the deposit. The deposits will bear interest at an annual rate of ½ of 1 percent per annum.

The Administered Account Greece was established November 30, 1988 for the administration of resources deposited in the account by the Bank of Greece. The deposit totaling SDR 35 million will be repaid in ten equal semiannual installments which begin five and one half years after the date of deposit and will be completed at the end of the tenth year after the date of the deposit. The deposit will bear interest at an annual rate of½ of 1 percent per annum.

ADMINISTERED ACCOUNT—JAPAN

BALANCE SHEET

as at April 30,1990

(In thousands of U.S. dollars)

(Note 1)

19901989
ASSETS
Investments (Note 2)60,90043,800
Currency deposit pending investment9727
Accrued interest receivable25
Total60,99743,852
RESOURCES
Resources—Account balance60,99743,852
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

/s/ Gerhard Laske

Treasurer

/s/ M. Camdessus

Managing Director

ADMINISTERED ACCOUNT—JAPAN

STATEMENT OF CHANGES IN RESOURCES

for the year ended April 30, 1990

(In thousands of U.S. dollars)

(Note 1)

19901989
Balance at beginning of the year43,852
Contributions received16,26043,644
Income earned on investments (Note 2)3,885208
63,99743,852
Payment to beneficiary3,000
Balance at end of the year60,99743,852
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

ADMINISTERED ACCOUNT—JAPAN

NOTES TO THE FINANCIAL STATEMENTS

Purpose

At the request of Japan, the Fund established an account on March 3, 1989, to administer resources contributed by Japan that are to be used to assist certain members with overdue obligations to the Fund. The resources of the Administered Account are to be disbursed in amounts specified by Japan and only to members designated by Japan. The Fund performs financial services in the administration of the resources contributed, and the assets of the Account are separate from the assets of all other accounts of, or administered by, the Fund and are not to be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

Contributions received by the Administered Account are held in temporary investment accounts pending the receipt of notification to the Fund from Japan that resources should be disbursed. Cumulative contributions since the inception of the Administered Account amount to $59.9 million of which $3 million has been disbursed.

1. Accounting Practices

Unit of Account

The accounts of the Administered Account are expressed in U.S. dollars. All transactions and operations of the Administered Account, including the transfers to and by the Account, are denominated in U.S. dollars.

Basis of Accounting

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

2. Investments

The assets of the Administered Account, pending their disbursement, are held in the form of repurchase agreements with the Federal Reserve Bank of New York. Interest received on these assets varies and is market related.

3. Account Termination

The Administered Account can be terminated by the Fund or by Japan. Any resources in the account at termination are to be returned promptly to Japan.

ADMINISTERED ACCOUNT—GUYANA

BALANCE SHEET

as at April 30,1990

(In thousands of U.S. dollars)

(Note 1)

19901989
ASSETS
Investments (Note 2)6,218
Accrued interest receivable58
Total6,276
RESOURCES
Resources—Account balance6,276
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

/s/ Gerhard Laske

Treasurer

/s/ M. Camdessus

Managing Director

ADMINISTERED ACCOUNT—GUYANA

STATEMENT OF CHANGES IN RESOURCES

for the year ended April 30, 1990

(In thousands of U.S. dollars)

(Note 1)

19901989
Balance at beginning of year
Contributions received7,9251,000
Income earned on investments (Note 2)127
8,0521,000
Payment to beneficiary1,7001,000
Unrealized translation loss (Note 2)76
Balance at end of the year6,276
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

ADMINISTERED ACCOUNT—GUYANA

NOTES TO THE FINANCIAL STATEMENTS

Purpose

At the request of Guyana, the Fund established an account on April 5, 1989, to administer resources made available by various contributors in connection with Guyana’s adjustment effort. The Fund administers this Account and performs financial services at the request of Guyana. The resources of the Administered Account are separate from the assets of all other accounts of, or administered by, the Fund and are not used to discharge liabilities or to meet losses incurred in the administration of other accounts.

Cumulative contributions since the inception of the Administered Account amount to $8.9 million, of which $2.7 million has been disbursed. Contributions received by the account are temporarily invested pending the receipt of notification to the Fund that resources, including investment income, are to be disbursed.

1. Accounting Practices

Unit of Account

The accounts of the Administered Account are expressed and denominated in U.S. dollars. All transfers to and by the Account are denominated in U.S. dollars or in other freely usable currencies.

Basis of Accounting

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

2. Investments

The assets of the Administered Account, pending their disbursement, are held in the form of repurchase agreements with the Federal Reserve Bank of New York or in the form of interest-earning deposits with the Bank for International Settlements. Account resources have been temporarily invested at the Bank for International Settlements in SDR-denominated obligations in anticipation of Guyana’s settlement of obligations denominated in SDRs. Interest received on these assets varies and is market related.

3. Account Termination

The Administered Account can be terminated by the Fund, by Guyana, or by the Chairman of the Support Group for Guyana. Otherwise, the Administered Account shall be terminated on December 31, 1991, or such later date as may be agreed. Any proceeds that remain in the Account at termination shall be returned to the transferor, unless otherwise indicated by them.

ADMINISTERED TECHNICAL ASSISTANCE ACCOUNT—JAPAN

BALANCE SHEET

as at April 30,1990

(In thousands of U.S. dollars)

(Note 1)

ASSETS
Investments (Note 2)290
RESOURCES
Resources—Account balance290
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

/s/ Gerhard Laske

Treasurer

/s/ M. Camdessus

Managing Director

ADMINISTERED TECHNICAL ASSISTANCE ACCOUNT—JAPAN

STATEMENT OF CHANGES IN RESOURCES

for the period March 19,1990 to April 30,1990

(In thousands of U.S. dollars)

(Note 1)

Contribution received288
Income earned on investments (Note 2)2
Balance at end of the period290
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

ADMINISTERED TECHNICAL ASSISTANCE ACCOUNT—JAPAN

NOTES TO THE FINANCIAL STATEMENTS

Purpose

At the request of Japan, the Fund established an account on March 19, 1990, to administer resources contributed by Japan that are to be used to finance technical assistance to member countries. Resources of the Administered Technical Assistance Account will be used to help Fund members strengthen their administrative capacity and their capacity to formulate, implement, and maintain macroeconomic programs and structural adjustment programs aimed, inter alia, at helping to resolve or to avoid debt-related difficulties. Disbursements can also be made from the Administered Technical Assistance Account to the Fund’s General Resources Account to reimburse the Fund for expenditures incurred on behalf of Technical Assistance Projects.

The assets of the account are accounted for separately from the assets of all other accounts of, or administered by, the Fund and are not used to discharge liabilities or to meet losses incurred in the administration of other accounts. Contributions received by the Administered Technical Assistance Account are invested by the Fund pending disbursement. Net investment earnings of the account accrue to and are available for the purposes of the account. Cumulative contributions since the inception of the Administered Technical Assistance Account amount to $0.3 million.

1. Accounting Practices

Unit of Account

The accounts of the Administered Technical Assistance Account are expressed in U.S. dollars. All transactions and operations of the Administered Technical Assistance Account, including the transfers to and by the account, are denominated in U.S. dollars.

Basis of Accounting

The accounts of the Administered Technical Assistance Account are maintained on the accrual basis and, accordingly, income is recognized as it is earned and expenses are recorded as they are incurred. It is the practice of the Fund to make all calculations on the basis of the exact number of days in the accounting period.

2. Investments

The assets of the Administered Technical Assistance Account, pending their disbursement, are invested. Interest received on these investments varies and is market related.

3. Account Termination

The Administered Technical Assistance Account can be terminated by the Fund or by Japan. Any resources that remain in the Administered Technical Assistance Account at termination, net of accrued liabilities under Technical Assistance Projects, are returned to Japan.

VOLUNTARY CONTRIBUTION ACCOUNT—BOLIVIA

BALANCE SHEET

as at April 30,1990

(In thousands of U.S. dollars)

(Note 1)

19901989
ASSETS
Investments (Note 2)8,28473
RESOURCES
Resources—Account balance8,28473
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

/s/ Gerhard Laske

Treasurer

/s/ M. Camdessus

Managing Director

VOLUNTARY CONTRIBUTION ACCOUNT—BOLIVIA

STATEMENT OF CHANGES IN RESOURCES

for the year ended April 30, 1990

(In thousands of U.S. dollars)

(Note 1)

19901989
Balance at beginning of the year7322,391
Contributions received14,53713,668
Interest earned on investments (Note 2)322681
14,53736,740
Payment to beneficiary6,64836,667
Balance at end of the year8,28473
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

VOLUNTARY CONTRIBUTION ACCOUNT—BOLIVIA

NOTES TO THE FINANCIAL STATEMENTS

Purpose

Voluntary Contribution Accounts may be established by the Fund at the request of a member to perform financial services including the administration of contributed resources. The resources of each Voluntary Contribution Account are separate from the assets of all other accounts of, or administered by, the Fund and are not available to discharge liabilities or to meet losses incurred in the administration of other accounts. Contributions received are held in temporary investments pending the receipt of notification to the Fund that resources should be disbursed.

Effective October 21, 1987, the Fund established, at the request of Bolivia, a Voluntary Contribution Account to be administered by the Fund in order to assist Bolivia to discharge a portion of the external indebtedness owed or guaranteed to nonofficial creditors. Cumulative contributions received since the inception of the Voluntary Contribution Account amount to $50.4 million, of which $43.3 million has been disbursed.

1. Accounting Practices

Unit of Account

The accounts of the Voluntary Contribution Account are expressed in U.S. dollars. All transactions and operations of the

Voluntary Contribution Account, including the transfers to and by the account, are denominated in U.S. dollars.

Basis of Accounting

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

2. Investments

The assets of the accounts, pending their disbursement, are held in the form of repurchase agreements with the Federal Reserve Bank of New York or in the form of interest-earning deposits with the Bank for International Settlements. Interest paid on these assets varies and is market related.

3. Account Termination

The Voluntary Contribution Account can be terminated by the Fund or Bolivia. Any resources in the Voluntary Contribution Account at its termination are to be returned to those that transferred assets to the Account or, in accordance with their instructions, to Bolivia.

STAFF RETIREMENT PLAN

REPORT OF THE EXTERNAL AUDIT COMMITTEE

Washington, D.C. June 29, 1990

Authority and Scope of the Audit

In accordance with Section 20(b) of the By-Laws of the International Monetary Fund, we have audited the financial statements of the Staff Retirement Plan for the year ended April 30, 1990.

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

Audit Opinion

In our opinion, the financial statements of the Staff Retirement Plan have been prepared in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding year, and give a true and fair view of the financial status of the Staff Retirement Plan as at April 30, 1990 and of the changes in financial status for the year then ended.

EXTERNAL AUDIT COMMITTEE

/s/ Abdulaziz Al-Nasrullah, Chairperson (Saudi Arabia)

/s/ Michael Jacobs (Australia)

/s/ Mamadou A. Sow (Senegal)

STAFF RETIREMENT PLAN

STATEMENT OF ACCUMULATED PLAN BENEFITS AND NET ASSETS AVAILABLE FOR BENEFITS

as at April 30,1990

(In thousands of U.S. dollars)

(Note 1)

19901989
Accumulated Plan Benefits
Actuarial present value of accumulated Plan benefits
Vested benefits
Retired participants286,800256,400
Active participants211,600186,000
Nonvested benefits308,300284,000
Total actuarial present value of accumulated Plan benefits806,700726,400
Net Assets Available for Benefits
Investments, at current value (Note 3)
Portfolio denominated in U.S. dollars860,297810,656
Portfolio denominated in other currencies366,033324,005
1,226,3301,134,661
Receivables
Contributions318256
Accrued interest and dividends9,2019,188
Other1,9042,467
11,42311,911
Cash at banks43146
Total Assets1,237,7961,146,718
Liabilities
Accounts payable1,6691,734
Net assets available for benefits1,236,1271,144,984
Excess of net assets available for benefits over actuarial
present value of accumulated Plan benefits (Note 2)429,427418,584
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

/s/ Gerhard Laske Treasurer

/s/ M. Camdessus Managing Director

STAFF RETIREMENT PLAN

STATEMENT OF CHANGES IN ACCUMULATED PLAN BENEFITS

for the year ended April 30, 1990

(In thousands of U.S. dollars)

(Note 1)

19901989
Actuarial present value of accumulated
Plan benefits at beginning of the year726,400673,900
Increase (decrease) during the year attributable to
Benefits accumulated43,39917,375
Increase for interest due to decrease in discount period60,70056,400
Benefits paid(23,799)(21,275)
Net increase80,30052,500
Actuarial present value of accumulated
Plan benefits at end of the year806,700726,400
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

STAFF RETIREMENT PLAN

STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS

for the year ended April 30, 1990

(In thousands of U.S. dollars)

(Note 1)

19901989
Investment Income
Net gain in current value of investments (Note 3)23,49187,633
Interest and dividends71,10070,457
94,591158,090
Contributions (Note 2)
International Monetary Fund15,14119,918
Participants12,55511,271
Participants restored to service11795
Net transfers to retirement plans of
other international organizations(350)(78)
27,46331,206
Total additions122,054189,296
Benefits
Pension20,68718,828
Withdrawal1,8661,853
Commutation1,118230
Death128364
23,79921,275
Investment Fees
Custodian814771
Manager6,2985,085
7,1125,856
Total payments30,91127,131
Net additions91,143162,165
Net Assets Available for Benefits at
Beginning of year1,144,984982,819
End of year1,236,1271,144,984
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

STAFF RETIREMENT PLAN

NOTES TO THE FINANCIAL STATEMENTS

Description of the Plan

General

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

Benefits

The Plan was amended twice during financial year 1990. The first amendment, which limits the compensation on which benefits may be based, has an effective date of May 1, 1989. The second amendment, which makes the changes referred to below as the new Plan provisions, has an effective date of May 1, 1990.

Annual Pension

Participants are entitled to an annual pension beginning at normal retirement age of 65 (62 under the new Plan provisions). The amount of the pension is based on the number of years of service, age at retirement, and highest average gross remuneration. The provisions determining gross remuneration have been amended under the new Plan.

The accrual rate of benefits under the old Plan is 2 percent of gross remuneration for each year of service, while the accrual rate under the new Plan will be 2.2 percent for the first 25 years of service and 1.8 percent for the next 10 years of service.

Beginning May 1, 1989 the gross remuneration on which pensions from the Plan are based is limited to a predetermined amount that is periodically adjusted. Pension benefits attributable to gross remuneration in excess of this amount are paid from the Supplemental Retirement Benefit Plan.

Transitional arrangements provide that the pensions of participants hired before May 1, 1990 will be based on a prorated combination of the old and new Plan provisions, based on the number of years of service before and after May 1, 1990.

Under the new Plan, a grandfathering option allows certain participants to receive pension benefits based on the larger of old Plan benefits or transitional benefits. Participants electing the grandfathering option will be eligible for three of the new Plan provisions described below; they will be able to begin receiving their pensions before age 55, they may elect the split currency option, and their survivors will receive improved benefits. Those electing the grandfathering option will continue to make contributions on the basis of the (higher) gross remuneration determined in accordance with the provisions of the old Plan.

Participants who have reached the age of 55 (50 under the new Plan, if their age and years of service total at least 75) may retire with a reduced pension, or with an unreduced pension if the sum of their age and years of service equals 90 or more (85 under the new Plan). Early retirement pensions are based on normal pensions, determined under the old Plan provisions or the transitional rules discussed above, whichever is applicable.

Cost of Living Adjustment

Whenever the cost of living for a financial year increases, pensions shall be augmented by a pension supplement which, expressed in percentage terms, shall be equal to the increase in the cost of living for the financial year. If the cost of living for a financial year

should exceed 3 percent, the Employer has the right, for good cause, to reduce prospectively the additional supplement to not less than 3 percent. Deferred pensions become subject to cost of living adjustments when the sum of participant’s age and years of service is at least 55 (50 under the new Plan).

Withdrawal Benefit

Upon termination a participant with at least three years of eligible service may elect to receive either a withdrawal benefit or a deferred pension to commence after the participant has reached the age of 55 (50 under the new Plan). Under the old Plan the withdrawal benefit was equal to the sum of the accumulated contributions of the participant and a percentage of such accumulated contributions, the percentage being based on the number of months of eligible service. Under the new Plan the withdrawal benefit will be a percentage of the participant’s highest average gross remuneration. However, the withdrawal benefit under the new Plan is guaranteed to be at least what it would have been under the old Plan provisions.

Commutation

A pensioner entitled to receive a normal, early retirement, or deferred pension may elect to commute up to one third of his or her pension, and receive a lump-sum amount in lieu of the amount of pension commuted. A participant entitled to receive a disability pension may elect to commute one third of the early retirement pension that would otherwise have been applicable.

Disability Pensions, Death Benefits, and Survivor Benefits

The Plan also provides for disability pensions, death benefits, and benefits to surviving spouses and children. Under the old Plan, surviving spouses and children receive benefits only if certain age and eligible service requirements are met. Under the new Plan these benefits will be paid without regard to age and eligible service.

Currency of Pension Payments

A participant may elect to have his pension paid in the currency of the country in which he has established permanent residency. Under the new Plan participants may receive their pensions in a combination of two currencies—the U.S. dollar and the currency of the country in which the participant is a permanent resident.

Contributions

Participants

As a condition of employment, regular staff members are required to participate in and to contribute to the Plan. The contribution rate is at present 7 percent of the participant’s gross remuneration. Certain other categories of staff members may elect to participate in the Plan. Contributions of participants electing the grandfathering option are based on the grossing-up formula in effect on April 30, 1990.

Employer

The Employer meets certain administrative costs of the Plan, such as the actuary’s fees, and contributes any additional amount not provided by the contribution of participants to pay costs and expenses of the Plan not otherwise covered. In financial year 1990 the costs met by the Employer were approximately $0.7 million ($0.2 in 1989).

Plan Termination

In the event of the termination of the Plan by the Employer, the assets of the Plan shall be used to satisfy all liabilities to participants, retired participants and their beneficiaries, and all other liabilities of the Plan. Any remaining balance of the assets shall be returned to the Employer.

1. Accounting Practices

Accumulated Plan Benefits

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

The amount of nonvested benefits represents the total of the withdrawal benefits of all participants with less than three years of eligible service together with the estimated effect of projected salary increases on benefits expected to be paid.

The valuation of accumulated Plan benefits is based on Plan provisions in effect on April 30, 1990. It does not reflect the benefits provided for in the new Plan because participants were not entitled to those benefits as of that date.

In contrast to the actuarial valuation for funding purposes, the actuarial valuation used for the financial statements represents the portion of the benefit obligation which had been accumulated by April 30, 1990. It reflects only the service to that date and does not take into account the fact that the value of accumulated benefits, which are the Plan’s liabilities, are expected to increase each year nor that the market value of investments may fluctuate from year to year. Accordingly, the financial statements do not measure the amount which the Employer will be required to fund in the future nor that the excess of assets over the present value of accumulated benefits is needed to meet the obligation to pay benefits in the future.

Valuation of Investments

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

Investment Income

Dividend and interest income from investments are recorded as earned.

2. Actuarial Valuation and Funding Policy

Under the actuarial valuation used for funding calculations, it is assumed that the Plan will continue to exist and that active participants will continue to earn pension benefits beyond the date of the valuation until the date of withdrawal, disability, death, or retirement.

Funding by the Employer is based upon a valuation method, known as the “aggregate method,” which expresses liabilities and contribution requirements as single consolidated figures that include provision for experience gains and losses and cost of living increases. Required Employer contributions are expressed as a percentage to be applied to the gross remuneration of participants and are based upon the valuation completed 12 months previously. For the financial year which began on May 1, 1988 this rate was 12.62 percent and was 8.45 percent for the year that began on May 1, 1989 based upon the valuation at April 30, 1988. The proposed rate for the year beginning May 1, 1990 is 3.91 percent of the new gross remuneration.

The actuarial assumptions used in the valuation include (a) life expectancy based upon United Nations staff life expectancy, (b) withdrawal or retirement of a certain percentage of staff at each age, differentiated by sex, (c) an average rate of return on investments of 8.5 percent per annum, (d) an average inflation rate of 5 percent per annum, (e) salary increase percentages which vary with age, and (f) valuation of assets using the five-year moving average method.

The results of the April 30, 1989 and 1988 valuations are:

19891988
In millions of U.S. dollars
Present value of benefits payable1,1931,106
Less: Assets for valuation purposes999842
Required future funding194264
Less: Present value of prospective
contributions from participants
(7 percent of gross remuneration)129122
Present value of future funding required
from the Employer65142

3. Investments

A summary of investments at market values is as follows:

19901989
In thousands of U.S. dollars
Portfolio denominated in U.S. dollars
U.S. Government securities140,676152,608
Corporate bonds and debentures72,94948,912
Common and preferred stock503,121480,555
Real estate46,52336,767
Venture capital4,0534,393
Short-term investments92,97587,421
Subtotal860,297810,656
Portfolio denominated in other currencies366,033324,005
Total1,226,3301,134,661

The net gain in the current value of investments represents the gains (and losses) realized during the year from the sale of investments, the unrealized appreciation (and depreciation) of the market value of investments, and, for investments denominated in currencies other than U.S. dollars, valuation differences arising from exchange rate changes of other currencies against the U.S. dollar.

SUPPLEMENTAL RETIREMENT BENEFIT PLAN

REPORT OF THE EXTERNAL AUDIT COMMITTEE

Washington, D.C. June 29, 1990

Authority and Scope of the Audit

In accordance with Section 20(b) of the By-Laws of the International Monetary Fund, we have audited the financial statements of the Supplemental Retirement Benefit Plan for the year ended April 30, 1990.

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

Audit Opinion

In our opinion, the financial statements of the Supplemental Retirement Benefit Plan have been prepared in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding period, and give a true and fair view of the financial status of the Supplemental Retirement Benefit Plan as at April 30, 1990 and of the changes in financial status for the year then ended.

EXTERNAL AUDIT COMMITTEE

/s/ Abdulaziz Al-Nasrullah, Chairperson (Saudi Arabia)

/s/ Michael Jacobs (Australia)

/s/ Mamadou A. Sow (Senegal)

SUPPLEMENTAL RETIREMENT BENEFIT PLAN

STATEMENT OF ACCUMULATED PLAN BENEFITS AND ASSETS AVAILABLE FOR BENEFITS

as at April 30, 1990

(In thousands of U.S. dollars)

(Note 1)

19901989
Accumulated Plan Benefits
Actuarial present value of accumulated Plan benefits
Vested benefits900700
Nonvested benefits100100
Total actuarial present value of
accumulated Plan benefits1,000800
Assets Available for Benefits
Receivables:
Contributions1
Cash at bank (Note 3)166126
Assets available for benefits167126
Excess of actuarial present value of accumulated Plan
benefits over assets available for benefits833674
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

/s/ Gerhard Laske

Treasurer

/s/ M. Camdessus

Managing Director

SUPPLEMENTAL RETIREMENT BENEFIT PLAN

STATEMENT OF CHANGES IN ACCUMULATED PLAN BENEFITS

for the year ended April 30, 1990

(In thousands of U.S. dollars)

(Note 1)

19901989
Actuarial present value of accumulated
Plan benefits at the beginning of the year8001,200
Increase (decrease) during the period attributable to
Benefits accumulated197(424)
Increase for interest due to decrease
in discount period100100
Benefits paid(97)(76)
Net increase (decrease)200(400)
Actuarial present value of accumulated
Plan benefits at the end of the year1,000800
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

SUPPLEMENTAL RETIREMENT BENEFIT PLAN

STATEMENT OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS

for year ended April 30,1990

(In thousands of U.S. dollars)

(Note 1)

19901989
Interest income59
Contributions
International Monetary Fund62
Participants71
133
Total additions1389
Payments9776
Pension
Total payments9776
Net increase (decrease)41(67)
Net assets available for benefits at
Beginning of the year126193
End of the year167126
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

SUPPLEMENTAL RETIREMENT BENEFIT PLAN

NOTES TO THE FINANCIAL STATEMENTS

Description of Supplemental Retirement Benefit Plan

General

The Supplemental Retirement Benefit Plan (SRBP) is a defined benefit pension plan covering all participants of the Staff Retirement Plan of the International Monetary Fund (Employer) and operates as an adjunct to that Plan. All assets and income of the SRBP are the property of the Employer and are held and administered by it separately from all its other property and assets and are to be used solely for the benefit of participants and retired participants and their beneficiaries.

The SRBP was amended during financial year 1990 with an effective date of May 1, 1989.

Benefits

The Staff Retirement Plan has adopted limits to pensions payable from that plan. The SRBP provides for the payment of any benefit which would otherwise have been payable if these limits had not been adopted. An additional limitation was adopted by the Staff Retirement Plan in financial year 1990. This limit requires that the gross compensation on which pensions are based be no greater than a predetermined amount which is periodically adjusted.

In financial year 1990, ten pensioners received benefits from the SRBP (seven in 1989).

Contributions

Before financial year 1990, the SRBP was entirely funded by the Employer. Beginning May 1, 1989, participants with gross remuneration exceeding the predetermined limit are required to contribute 7 percent of their gross remuneration in excess of this limit to the SRBP. The Employer meets administrative costs of the SRBP and contributes any additional amounts not provided by the contributions of participants to pay costs and expenses of the SRBP not otherwise covered.

The Employer makes regular contributions in relation to non-U. S. citizens whose calculated gross remuneration exceeds the predetermined limit, as adjusted. There is also a partial prefunding by the Employer, just prior to retirement, when non-U. S. citizens retire in the United States, so that the taxable income of the participant is approximately equal to, but not more than, such income that would have accrued if the entire benefit had been payable from any of the prefunded assets of the Staff Retirement Plan. The contributions of

participants and the prefunded amounts are used to pay any of the benefits payable, whether for U.S. or non-U.S. staff. Should the assets of the SRBP be exhausted, benefits will be paid from current contributions by the Employer.

Termination

In the event of the termination of the SRBP by the Employer, the assets of the SRBP shall be used to satisfy all liabilities to participants, retired participants and their beneficiaries, and all other liabilities of the SRBP.

1. Accounting Practices

Accumulated Plan Benefits

The actuarial value of benefits is presented for two categories. The vested benefits relate to retired participants and the amount presented equals the present value of the benefits expected to be paid over the future lifetime of the pensioner, and, if applicable, the surviving spouse of the pensioner.

The nonvested benefits relate to active participants and the amount presented equals the present value of the supplemental deferred pension earned to the valuation date for a participant, taking into account the estimated effect of projected salary increases. For the purpose of determining the actuarial value of the benefits at the end of the period, it is assumed that the SRBP will continue to exist but that participants will not accumulate further contributory service beyond the date of the calculation.

Interest Income

Interest income is recorded as earned.

2. Actuarial Valuation

The actuarial assumptions include (a) life expectancy based upon the 1982 United Nations valuation, (b) withdrawal or retirement of a certain percentage of staff at each age, differentiated by sex, (c) an average inflation rate of 5 percent per annum, and (d) salary increase percentages which vary with age.

3. Assets

Cash balances are maintained in a money market account.

Purposes of the Fund

(i) To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration on international monetary problems.

(ii) To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy.

(iii) To promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation.

(iv) To assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions which hamper the growth of world trade.

(v) To give confidence to members by making the general resources of the Fund temporarily available to them under adequate safeguards, thus providing them with opportunity to correct maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity.

(vi) In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members.

The Fund shall be guided in all its policies and decisions by the purposes set forth in this Article.

Article I of the Fund’s Articles of Agreement

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