Chapter

APPENDIX IX: Financial Statements

Author(s):
International Monetary Fund
Published Date:
January 1991
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REPORT OF THE EXTERNAL AUDIT COMMITTEE

Washington, D.C.

June 27, 1991

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 for the year ended April 30, 1991,

—SDR Department for the year ended April 30, 1991, 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, the Administered Technical Assistance Account—Japan, the Voluntary Contribution Account—Bolivia, for the year ended April 30, 1991 and the Voluntary Contribution Account—Costa Rica for the period May 15, 1990 to May 22, 1990.

Our audit was conducted in accordance with generally accepted auditing standards and included reviews of the accounting and internal control systems, and tests of the accounting records. We evaluated the extent and results of the work of the Independent Accountants as well as that of the Office of Internal Audit and Review and also used other audit procedures as deemed necessary.

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 in the case of the Voluntary Contribution Account—Costa Rica which was in operation for the period May 15, 1990 to May 22, 1990) and give a true and fair view of the respective financial positions and the allocations and holdings of SDRs as at April 30, 1991 (except in the case of the Voluntary Contribution Account—Costa Rica which was terminated on May 22, 1990), and of the financial results of operations and transactions during the respective periods.

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

EXTERNAL AUDIT COMMITTEE

/s/ Philippe Lacarriere, Chairman (France)

/s/ Michael J. Jacobs (Australia)

/s/ Jocelyn Thompson (Trinidad and Tobago)

GENERAL DEPARTMENT BALANCE SHEET as at April 30, 1991

(In thousands of SDRs)

(Note 1)

19911990
ASSETS
GENERAL RESOURCES ACCOUNT
Currencies and securities (Notes 2 and 5)92,153,83490,936,410
SDR holdings (Note 3)694,280628 486
Gold holdings (Note 4)3,620,3963,620 396
Deferred charges receivable (Note 5)1,078,252960,666
Borrowed resources held in suspense796,68817
Charges receivable and accrued (Note 5)465,334511,335
Interest receivable on SDR holdings13,79221,681
Quota subscription receivable25,000
Other assets32,08430,792
TOTAL GENERAL RESOURCES ACCOUNT98,879,66096,709,783
SPECIAL DISBURSEMENT ACCOUNT
Currency deposits3614
Interest-earning deposits831,520844,899
Structural adjustment facility bans1,728,4881,548,619
Accrued income on investments and loans35,13640,009
TOTAL SPECIAL DISBURSEMENT ACCOUNT2,595,1802,433,541
TOTAL GENERAL DEPARTMENT101,474,84099,143,324
QUOTAS, RESERVES, LIABILITIES AND SPECIAL DISBURSEMENT ACCOUNT RESOURCES
GENERAL RESOURCES ACCOUNT
Quotas
Subscriptions of Members91,127,55090,132,550
Reserves (Note 6)1,466,8261,396,977
Special Contingent Accounts (Note 5)426,959214,816
Liabilities
Borrowing (Note 7)4,300,0003,514,162
Accrued remuneration payable (Note 5)250,150314,396
Accrued interest on borrowing82,46176,239
Other liabilities and deferred credits147,46299,977
4,780,0734,004,774
Deferred income from charges (Note 5)1,078,252960,666
TOTAL GENERAL RESOURCES ACCOUNT98,879,66096,709,783
SPECIAL DISBURSEMENT ACCOUNT
Accumulated resources2,594,8382,433,312
Deferred income342229
TOTAL SPECIAL DISBURSEMENT ACCOUNT2,595,1802,433,541
TOTAL GENERAL DEPARTMENT101,474,84099,143,324
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/ David Williams/s/ M. Camdessus
Acting TreasurerManaging Director
GENERAL DEPARTMENT STATEMENT OF INCOME AND EXPENSE for the year ended April 30, 1991

(In thousands of SDRs)

(Note 1)

19911990
GENERAL RESOURCES ACCOUNT
OPERATIONAL INCOME (Note 5)
Periodic charges1,739,1081,878,090
Addition to periodic charges114,598127,113
Special charges85,51964,283
Deduct: Income deferred, net(114,510)(244,429)
1,824,7151,825,057
Interest on SDR holdings (Note 3)70,87788,176
Service charges31,24022,201
Other3,0144,783
1,929,8461,940,217
OPERATIONAL EXPENSE
Remuneration (Note 5)1,314,0951,383,323
Reduction of remuneration (Note 5)173,597127,146
Interest on borrowing, net of income from temporary investments in Borrowed1,140,4981,256,177
Resources Suspense Accounts (SDR 7,167 in 1991 and SDR 14.857 in 1990}317,940344,962
Allocation to the Special Contingent Accounts (Note 5)212,14365,000
1,670,5811,666,139
NET OPERATIONAL INCOME259,265274,078
ADMINISTRATIVE EXPENSE (Note 9) Personnel140,439141,610
28,76026,866
Other, net (Note 1)20,21720,092
189,416188,568
NET INCOME OF GENERAL RESOURCES ACCOUNT69,84985,510
SPECIAL DISBURSEMENT ACCOUNT
Investment income74,74673,770
Interest and special charges on loans8,1286,441
82,87480,211
Exchange valuation loss22163
Administrative expense (Note 9)11,90013,100
NET INCOME OF SPECIAL DISBURSEMENT ACCOUNT70,75367,048
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, 1991

(In thousands of SDRs)

(Note 1)

19911990
RESERVES—GENERAL RESOURCES ACCOUNT
SPECIAL RESERVE (Note 6)
Balance at beginning of the year1,031,397945,887
income69,84985,510
Balance at end of the year1,101,2461,031,397
GENERAL RESERVE (Note 6)
Balance at beginning and end of the year365,580365,580
TOTAL RESERVES OF THE GENERAL RESOURCES ACCOUNT1,466,8261,396,977
RESOURCES—SPECIAL DISBURSEMENT ACCOUNT
Balance at beginning of the year2,433,3122,080,739
Transfers from Trust Fund171,633361,301
Transfers from SFF Subsidy Account6,3873,303
Transfers to ESAF Trust(87,247)(79,079)
2,524,0852,366,264
Net income70,75367,048
TOTAL RESOURCES OF THE SPECIAL DISBURSEMENT ACCOUNT2,594,8382,433,312
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, 1991. 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 has been 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 upper credit tranche purchases. Higher conditionality accompanies the use of Fund credit in the upper tranches.

Members experiencing balance of payments difficulties may request stand-by arrangements from 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 and other conditions 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 facility—to assist members encountering payments difficulties produced by temporary export shortfalls, attributable to external circumstances, or an excess in the cost of cereal imports or caused by an excess in the cost of oil imports. The compensatory financing facility includes a mechanism for contingency financing to support adjustment programs supported by the Fund.

  • Buffer stock financing facility—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 under the supplementary financing facility or the enlarged access policy financed by borrowed resources (or “substituted” resources) 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 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, 1991, there was SDR 796 million in borrowed resources held in suspense (SDR 0.02 million at April 30, 1990).

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. The final Trust Fund loan installment was due March 31, 1991. Part of the 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 to 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 invested pending loan disbursements under structural adjustment facility and enhanced structural adjustment facility arrangements through the Special Disbursement Account.

Within the Special Disbursement Account a structural adjustment facility (SAF) was established in March 1986 to provide balance of payments assistance to qualifying low-income developing members. Upon approval by the Fund, resources are committed to qualifying members for a three-year period, in support of a 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 separate from other accounts of the General Department and the income of the account is placed in 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 Trust Fund and that can no longer be used under the structural adjustment facility. Resources of the ESAF Trust Reserve Account which are determined to be in excess of its estimated needs are to be retransferred 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, 1991, SDR 87 million (SDR 79 million at April 30, 1990) 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 every five years, and 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. In accordance with these requirements, the SDR valuation basket was revised effective January 1, 1991. The currencies comprising the basket and their amounts in the basket during the year ended April 30, 1991 were as follows:

Amounts
CurrenciesMay 1-

December 31, 1990
January 1-

April 30, 1991
U.S. dollar0.4520.572
Deutsche mark0.5270.453
Japanese yen33.431.8
French franc1.020.800
Pound sterling0.08930.0812

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 fixed property, furniture and equipment purchases except for the cost of an acquisition of land, which is accumulated in an asset account pending completion of the extension of the building (SDR 13.5 million and SDR 12.1 million in 1991 and 1990, respectively). For the year ended April 30, 1991, the cost of building improvements and equipment in excess of $100,000 amounted to SDR 4.0 million (SDR 2.5 million in 1990). The total accumulated cost of land and buildings, excluding the cost of the extension which is accumulated in other assets, amounts to SDR 102 million (SDR 99 million in 1990).

2. Currencies and Securities

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

Changes in the Fund’s holdings of members’ currencies and securities for the year ended April 30, 1991 were as follows:

April 30,April 30,Net
19911990Change
In millions of SDRs
Members’ quotas91,12890,133995
Less quota subscription receivable25(25)
91,10390,133970
Members’ use of Fund resources22,90622,098808
Members’ reserve tranche positions(21,855)(21,297)(558)
Administrative currency balances2(2)
Currencies and securities92,15490,9361,218

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, 1991 accounts receivable to maintain SDR values of currency holdings amounted to SDR 14,383.8 million and accounts payable amounted to SDR 422.9 million (SDR 14,826.2 million and SDR 1,422.0 million, respectively at April 30, 1990). At June 17, 1991 the amounts receivable were SDR 9,117.3 million and the amounts payable were SDR 375.3 million.

The Fund’s holdings of members’ currencies at April 30, 1991 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 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 1991 and 1990 the Fund held 3,217,341 kilograms of gold at designated depositories.

5. Fund Operations

For the year ended April 30, 1991, members’ purchases amounted to SDR 6,955 million of which SDR 707 million were reserve tranche purchases. Over the same period, repurchases by members totaled SDR 5,440 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, 1991 were as follows:

April 30,April 30,
1990PurchasesRepurchases1991
In millions of SDRs
Regular facilities5,1191,5281,4515,196
Compensatory and contingency financing3,8232,1278085,142
Extended Fund facility5,4721,4231,0725,823
Supplementary financing facility475206269 i
Enlarged access7,2091,1701,9036,476
Total22,0986,2485,44022,906

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 refundable stand-by fee under a standby 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, 1991 amounted to SDR 3.0 million (SDR 4.8 million in 1990).

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) is below the norm. The norm is an amount equal to 75 percent of the member’s quota on April 1, 1978 plus the total of subsequent increases in the member’s quota. For members that joined the Fund after April 1, 1978, the norm is determined by adding the proportion of the member’s quota equal to the average of the norm of all other members on the date the member joined the Fund and the total of subsequent increases in the member’s quota.

At April 30, 1991, the total holdings on which the Fund levied charges amounted to SDR 22,906 million (SDR 22,098 million in 1990) and total creditor positions on which the Fund paid remuneration amounted to SDR 16,269 million (SDR 15,486 million in 1990).

Overdue Obligations

At April 30, 1991, 9 members were six months or more overdue to the Fund (11 members in 1990). Credit outstanding to these members including SAF loans amounted to SDR 2,353 million as of April 30, 1991 (SDR 2,589 million as of April 30, 1990). Four of these members (Panama, Peru, Viet Nam, Zambia) are settling obligations as they fall due and are to varying degrees formulating and implementing economic adjustment programs which could lead to the settlement of their arrears. Overdue repurchases and charges of the members were as follows:

RepurchasesCharges
1991199019911990
In millions of SDRs
Total overdue2,1652,1401,006879
Overdue for more than six months2,1112,009921765
Overdue for more than three years1,339828391238
The type and duration of the arrears of these members are as follows:
The type and duration of the arrears of these members are as follows:
MemberRepurchasesCharges

and SAF

Interest
TotalLongest Overdue

Obligation
In millions of SDRs
Cambodia18.811.530.3March 1975
Liberia198.8117.7316.5January 1985
Panama130.350.9181.2December 1987
Peru449.6175.0624.6December 1985
Sierra Leone50.322.172.4January 1987
Somalia84.733.7118.4July 1987
Sudan599.0327.3926.3July 1984
Viet Nam28.419.047.4February 1984
Zambia605.3249.2854.5June 1986
Total2,165.21,006.43,171.6

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 1,078 million (SDR 961 million as at 1990).

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 808 million (SDR 729 million in 1990).

During the year ended April 30, 1991, new deferred charges increased by SDR 118 million (SDR 244 million in 1990), of which SDR 46 million (SDR 55 million in 1990) were deferred special charges. During the same period, settlements of deferred charges amounted to SDR 184 million (SDR 53 million in 1990). Including the adjustments described in the following paragraphs, an amount of SDR 288 million (SDR 254 million in 1990) was recorded as additional periodic charges and reduced remuneration during the same period.

Special Contingent Accounts

In view of the existence of protracted overdue obligations, the Fund accumulates precautionary balances, inter alia, in the Special Contingent Accounts. At April 30, 1991 these balances amounted to SDR 427.0 million and were held in two different Special Contingent Accounts (SCA-1 and SCA-2). A total of SDR 284.7 million was held in the SCA-1 (SDR 214.8 million in 1990) and SDR 142.3 million was held in the SCA-2 as of April 30, 1991.

In order to strengthen its financial position the Fund decided at the end of financial year 1987 to place SDR 26.5 million into a Special Contingent Account (SCA-1). Since then, precautionary balances held in this account have been further increased by additional quarterly adjustments to the rate of charge and the rate of remuneration under the burden sharing mechanism. An amount of SDR 69.9 million was generated through adjustments to the rate of charge and the rate of remuneration and allocated to this account in financial year 1991. Balances in the account are to be distributed to the members that shared the cost of financing it when there are no outstanding overdue charges and repurchases, or at such earlier time as the Fund may decide.

In the context of the strengthened arrears strategy, the Fund extended, effective July 1, 1990, the mechanisms for sharing the burden associated with overdue obligations among debtor and creditor members. This extension is designed to accumulate SDR 1 billion in an additional Special Contingent Account (SCA-2) over approximately five years, which will be financed by a further adjustment of 0.35 percent to the rate of charge and a further adjustment to the rate of remuneration to yield three times the amount generated by the further adjustment to the rate of charge, subject to the floor to the rate of remuneration of 80 percent of the SDR interest rate. The amounts thus accumulated are to safeguard purchases made under a successor arrangement after a rights accumulation program has been successfully completed by members with protracted arrears to the Fund at the end of 1989, while at the same time providing additional liquidity to assist in the financing of such purchases. This scheme provides for refunds of contributions upon full repayment to the Fund of the use of such credit or at such earlier date as the Fund may determine.

Strengthened Cooperative Strategy

In March 1990, the Fund agreed on a strengthened cooperative strategy aimed at resolving the issue of overdue obligations to the Fund. Three major elements form the basis of the cooperative strategy, namely, (i) preventative measures; (ii) remedial and deterrent measures; and (iii) intensified collaboration and the rights approach. The preventative measures help ensure that all members using Fund resources meet their obligations to the Fund as they fall due. As a complement to preventative measures, the deterrent element was strengthened through, inter alia, a tightening of the timing of procedures for dealing with members with overdue financial obligations. This timetable sets time limits between the date of emergence of arrears to the Fund and a declaration of ineligibility and makes explicit the timing of a declaration of noncooperation and initiation of the procedures for compulsory withdrawal. It also includes the possible use of the suspension of voting and related rights as a measure of deterrence once the Third Amendment of the Articles of Agreement, which would make a suspension possible, is ratified. Under the intensified collaborative approach, the Fund has developed the technique of Fund-monitored programs and rights accumulation programs, which permit a member with protracted arrears to the Fund to establish a track record of performance related to policy implementation and payments. A rights accumulation program allows the member to earn rights toward future financing through the implementation of a comprehensive economic program. Rights would be encashed through a disbursement under a successor arrangement after clearance of arrears and when all the requirements for that successor arrangement are met. At April 30, 1991, one member (Zambia) had adopted a rights accumulation program, while four other members with protracted arrears were adopting or following economic adjustment programs which could lead to a rights accumulation program.

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,April 30,
1990BorrowingRepayment1991
In millions of SDRs
Supplementary financing facility124124
Enlarged access2,3501,0501,300
Other1,0401,9603,000
Total3,5141,9601,1744,300

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 was repaid in installments between three and one half to seven years after the date of borrowing. The last repayment took place in January 1991. Interest paid by the Fund on amounts borrowed under the borrowing agreements was 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 agreed to make resources available to the Fund, up to SDR 13,475 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. In September 1990, the Fund decided that once borrowed resources had been fully utilized, ordinary resources would be substituted to meet commitments of borrowed resources in financing purchases made under arrangements under the enlarged access policy, approved before the date the increase in quotas under the Ninth General Review of Quotas becomes effective, or December 31, 1991, whichever is earlier.

Bilateral Arrangements with Japan

In December 1986, the Fund and the Government of Japan agreed to an arrangement under which Japan has made available to the Fund SDR 3 billion, to help finance the Fund’s support of adjustment programs of member countries. Calls under the agreement were made by the Fund over a period of four years ending March 31, 1991. At April 30, 1991, all available resources had been fully utilized and some resources were held in the Borrowed Resources Suspense Accounts pending their use in purchases. The final maturity of each call is 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 bor-rowing, 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, 1991 was equal to 18.3 percent of quotas (19.8 percent of quotas at April 30, 1990).

8. Arrangements Under the General Department

At April 30, 1991, forty arrangements were in effect and undrawn balances under these arrangements amounted to SDR 7,498 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 lifetime 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 for the year ended April 30, 1991 is based upon an actuarial valuation as at April 30, 1989.

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 service after July 1979. These amounts are accounted for as they are earned and entitlements have been accrued.

Schedule 1GENERAL DEPARTMENT QUOTAS, FUND’S HOLDINGS OF CURRENCIES, MEMBERS’ USE OF FUND RESOURCES, AND RESERVE TRANCHE POSITIONS as at April 30, 1991(In thousands of SDRs)
Fund’s Holdings

of Currencies1
QuotasTotalPercent

of Quota
Use of

Fund

Resources
Reserve

Tranche

Positions
Afghanistan86,70081,82294.44,900
Algeria623,1001,093,999175.6470,9003
Angola145,000145,145100.1
Antigua and Barbuda5,0004,999100.01
Argentina1,113,0002,992,591268.91,879,566
Australia1,619,2001,373,98484.9245,250
Austria775,600482,61662.2292,984
Bahamas, The66,40058,86788.77,537
Bahrain48,90020,48241.928,419
Bangladesh287,500451,036156.9163,533—n
Barbados34,10032,16594.32442,180
Belgium2,080,4001,706,24682.0374,158
Belize9,5007,73581.41481,914
Benin31,30029,28193.52,021
Bhutan2,5001,93077.2570
Bolivia90,700154,575170.463,861
Botswana22,1006,71730.415,384
Brazil1,461,3002,657,998181.91,196,560
Bulgaria310,000448,100144.5138,1005
Burkina Faso31,60024,40177.27,201
Burundi42,70035,15382.37,548
Cambodia25,00037,494150.012,5007
Cameroon92,700177,451191.484,975229
Canada2,941,0002,488,32784.6452,677 I
Cape Verde4,5004,499100.01
Central African Republic30,40033,746111.03,43894
Chad30,60030,33699.1264
Chile440,5001,221,110277.2780,61512
China2,390,9002,312,44996.7224,147302,602
Colombia394,200394,201100.0
Comoros4,5004,498100.04
Congo37,30043,207115.86,375469
Costa Rica84,100146,455174.162,343
Cote d’lvoire165,500451,121272.6285,6289
Cyprus69,70051,84374.417,858
Czechoslovakia590,0001,125,725190.8535,720
Denmark711,000436,59661.4274,411
Djibouti8,0006,76484.61,237
Dominica4,0004,963124.19719
Dominican Republic112,100136,007121.323,906
Ecuador150,700308,076204.4157,347
Egypt463,400535,909115.672,500
El Salvador89,00089,003100.0
Equatorial Guinea18,40018,409100.0
Ethiopia70,60070,612100.0
Fiji36,50029,37980.57,122
Finland574,900379,28266.0195,6259
France4,482,8003,359,90275.01,122,861
Gabon73,100166,651228.093,59342
Gambia, The17,10021,066123.23,99835
Germany5,403,7002,982,51855.22,421,186
Ghana204,500405,788198.4201,284
Greece399,900325,18281.374,719
Grenada6,0006,001100.0
Guatemala108,000152,766141.544,760
Guinea57,90062,410107.84,500
Guinea-Bissau7,5007,500100.02
Guyana49,20092,833188.743,631
Haiti44,10059,931135.915,87545
Honduras67,80089,710132.321,908
Hungary530,7001,133,625213.6602,921
Iceland59,60055,57993.34,022
India2,207,7004,114,016186.31,906,32513
Indonesia1,009,7001,226,593121.5289,31372,421
Iran, isiamic Republic of660,000660,007100.0
Iraq504,000504,013100.0
Ireland343,400227,34566.2116,074
Israel446,600446,606100.0
Italy2,909,1001,458,26150.11,450,838
Jamaica145,500415,695285.7270,129
Japan4,223,3001,742,11841.32,481,185
Jordan73,900140,133189.666,2352
Kenya142,000252,451177.8122,65612,218
Kiribati2,5002,501100.0
Korea462,800213,71146.2249,104
Kuwait635,300516,06781.2119,243
Lao People’s Democratic Republic29,30029,300100.0
Lebanon78,70059,86976.118,833
Lesotho15,10013,79891.41,305
Liberia71,300272,836382.7201,55428
Libyan Arab Jamahiriya515,700272,20252.8243,505
Luxembourg77,00064,74984.112,252
Madagascar66,400106,457160.340,055
Malawi37,20065,286175.530,3022,217
Malaysia550,600365,45066.4185,150
Maldives2,0001,99699.84
Mali50,80063,954125.921,8408,688
Malta45,10024,22953.720,898
Mauritania33,90046,122136.112,213
Mauritius53,60057,866108.04,31347
Mexico1,165,5005,803,873498.04,638,354
Mongolia25,000
Morocco306,600791,996258.3485,42733
Mozambique61,00061,000100.07
Myanmar137,000137,003100.0
Namibia70,00070,000100.05
Nepal37,30035,27494.63,6755,707
Netherlands2,264,8001,652,64673.0612,397
New Zealand461,600403,17087.358,432
Nicaragua68,20068,210100.0
Niger33,70041,735123.816,5958,561
Nigeria849,500849,491100.068
Norway699,000290,80041.6408,204
Oman63,10037,26659.125,878
Pakistan546,300839,264153.6293,01249
Panama102,200278,850272.9176,64914
Papua New Guinea65,900108,753165.042,835
Paraguay48,40037,38877.211,015
Peru330,900855,124258.4524,192
Philippines440,4001,253,719284.7852,10838,826
Poland680,0001,276,602187.7596,600
Portugal376,600202,12953.7174,474
Qatar114,90097,07484.517,827
Romania523,400902,005172.3378,600
Rwanda43,80037,36785.36,438
St. Kitts and Nevis4,5004,48899.715
St. Lucia7,5007,499100.01
St. Vincent4,0004,000100.0
Sao Tome and Principe4,0004,003100.1
Saudi Arabia3,202,4002,825,34088.2377,068
Senegal85,100151,413177.967,3261,014
Seychelles3,0002,94898.354
Sierra Leone57,900111,734193.053,84524
Singapore92,40027,71330.064,704
Solomon Islands5,0004,78895.8313528
Somalia44,200140,907318.896,701
South Africa915,700915,662100.041
Spain1,286,000520,46040.5765,542
Sri Lanka223,100350,655157.2127,60047
Sudan169,700773,968456.1604,25611
Suriname49,30049,301100.0
Swaziland24,70024,68299.921
Sweden1,064,300772,47372.6291,837
Syrian Arab Republic139,100139,103100.05
Tanzania107,000123,842115.716,828
Thailand386,600271,85670.3114,745
Togo38,40059,372154.621,194223
Tonga3,2502,51277.3738
Trinidad and Tobago170,100439,145258.2269,0506
Tunisia138,200238,070172.399,89125
Turkey429,100396,82892.532,275
Uganda99,600140,032140.640,425
United Arab Emirates202,60065,65632.4136,945
United Kingdom6,194,0004,921,65579.51,272,345
United States17,3,30011,349,85063.36,567,626
Uruguay163,800224,711137.260,904
Vanuatu9,0007,39182.11,609
Venezuela1,371,5003,488,478254.42,116,975
Viet Nam176,800205,195116.128,3955
Western Samoa6,0006,392106.542231
Yemen, Republic of120,500120,490100.014
Yugoslavia613,000918,480149.8305,444
Zaïre291,000483,385166.1192,384
Zambia270,300905,261334.9634,97922
Zimbabwe191,000190,960100.046
Total91,127,55092,153,83422,905,75821,855,141

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

Less than SDR 500.

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

Less than SDR 500.

Schedule 2GENERAL DEPARTMENT SCHEDULED REPURCHASES AND REPAYMENTS OF LOANS as at April 30, 1991(In thousands of SDRs)
General Resources Account1
Financial

Year

Ending

April 30
Ordinary

Resources
Borrowed

Resources
TotalSpecial

Disbursement

Account
19924,371,2912,274,9836,652,51921,874
19932,592,317921,1363,513,45347,199
19942,411,1821,022,7023,433,884124,216
19952,658,652962,3593,621,011222,336
19961,952,238659,1582,611,396321,992
1997534,704648,8741,183,577343,824
1998517,690255,752773,442298,499
1999493,868493,868221,482
2000405,746405,746123,361
2001223,105223,10523,706
Total16,160,7946,744,96422,912,0011,728,489

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.

Includes reserve tranche purchases made prior to April 1, 1978 that are subject to repurchase (SDR 6.2 million).

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.

Includes reserve tranche purchases made prior to April 1, 1978 that are subject to repurchase (SDR 6.2 million).

Schedule 3GENERAL DEPARTMENT SCHEDULED REPAYMENTS OF FUND BORROWING as at April 30 1991(In thousands of SDRs)
Periods of Repayment1

Financial Years

Ending April 30
Enlarged

Access

Resources
OtherTotal
1992575,00015,000590,000
1993350,000350,000
1994300,000300,000
199575,0001,025,3741,100,374
19961,959,6261,959,626
Total1,300,0003,000,0004,300,000

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 4GENERAL DEPARTMENT STATUS OF ARRANGEMENTS as at April 30, 1991(In thousands of SDRs)
MemberDate of ArrangementExpirationTotal

Amount

Agreed
Undrawn

Balance
GENERAL RESOURCES ACCOUNT
STAND-BY ARRANGEMENTS BulgariaMarch 15, 1991March 14, 1992279,000201,500
CongoAugust 27, 1990May 26, 199227,97523,975
Costa RicaApril 8, 1991April 7, 199233,64012,000
CzechoslovakiaJanuary 7, 1991March 6, 1992619,500398,250
El SalvadorAugust 27, 1990August 26, 199135,60035,600
GuyanaJuly 13, 1990December 31, 199149,5006,540
HondurasJuly 27, 1990August 15, 199130,5009,250
JamaicaMarch 23, 1990May 31, 199182,00020,400
NigeriaJanuary 9, 1991April 8, 1992319,000319,000
Papua New GuineaApril 25, 1990June 24, 199126,36026,360
PhilippinesFebruary 20, 1991August 19, 1992264,200235,888
RomaniaApril 11, 1991April 10, 1992380,500249,600
UruguayDecember 12, 1990March 15, 199294,80085,800
YugoslaviaMarch 16, 1990September 15, 1991460,000394,300
2,702,5752,018,463
EXTENDED ARRANGEMENTS
HungaryFebruary 20, 1991February 19, 19941,114,000954,790
MexicoMay 26, 1989May 25, 19923,263,400932,400
PolandApril 18, 1991April 17, 19941,224,0001,147,500
TunisiaJuly 25, 1988July 24, 1991138,200138,200
VenezuelaJune 23, 1989September 22, 19923,857,1002,083,000
9,596,7005,255,890
TOTAL GENERAL RESOURCES ACCOUNT12,299,2757,274,353
SPECIAL DISBURSEMENT ACCOUNT
STRUCTURAL ADJUSTMENT FACILITY
BeninJune 16, 1989June 15, 199221,91015,650
Burkina FasoMarch 13, 1991March 12, 199422,12015,800
Equatorial GuineaDecember 7, 1988December 6, 199112,8809,200
Lao People’s Democratic RepublicSeptember 18, 1989September 17, 199220,5105,860
LesothoJune 29, 1988June 28, 199110,570
MaliAugust 5, 1988August 4, 199135,56010,160
PakistanDecember 18, 1988December 27, 1991382,410109,260
RwandaApril 30, 1991April 29, 199430,66021,900
Sao Tome and PrincipeJune 2, 1989June 1, 19922,8002,000
539,420189,830
SAF RESOURSES COMMITTED UNDER ESAF ARRANGEMENTS1
BoliviaJuly 27, 1988July 26, 199145,350
Gambia, TheNovember 23, 1988November 22, 19913,420
GhanaNovember 9, 1988November 8, 1991102,250
GuyanaJuly 13, 1990July 12, 199334,44024,600
KenyaMay 15, 1989May 14, 199271,000
MadagascarMay 15, 1989May 14, 199233,200
MalawiJuly 15, 1988July 14, 199126,040
MauritaniaMay 24, 1989May 23, 19926,7803,390
NigerDecember 12, 1988December 11, 19916,740
SenegalNovember 21, 1988November 20, 199117,0205,532
TogoMay 31, 1989May 30, 199219,200
UgandaApril 17, 1989April 16, 199219,920
385,36033,522
TOTAL SPECIAL DISBURSEMENT ACCOUNT924,780223,352
TOTAL.GENERAL DEPARTMENT13,224,0557,497,705

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, 1991(In thousands of SDRs)
19911990
ALLOCATIONS
Net cumulative allocations of SDRs to participants21,433,33021,433,330
charges due but not paid30,29644,665
21,463,62621,477,995
HOLDINGS
Participants with holdings above allocations
Allocations11,386,88911,408,282
Net receipt of SDRs5,817,9785,891,031
17,204,86717,299,313
Participants with holdings below allocations
Allocations10,046,44110,025,048
Net use of SDRs6,493,8936,494,137
3,552,5483,530,911
Total holdings by participants20,757,41520,830,224
General Resources Account694,280628,486
Prescribed Holders11,93119,285
21,463,62621,477,995
The accompanying note is an integral part of the financial statements.
The accompanying note is an integral part of the financial statements.
/s/ David Williams/s/ M. Camdessus
Acting TreasurerManaging Director
SDR DEPARTMENT STATEMENT OF RECEIPT AND USE OF SDRs for the year ended April 30, 1991(In thousands of SDRs)
GeneralTotal
ParticipantsResources

Account
Prescribed

Holders
19911990
Total holdings at beginning of the year20,830,224628,48619,28521,477,99521,468,730
Receipt of SDRs
Transfers among participants and prescribed holders
Transactions by agreement5,183,81082,5195,266,3296,776,605
Operations
Loans86,26086,260
Forward operations72,00072,000123,000
Settlement of financial obligations101,35989,714191,073146,294
Transfer of interest under swaps21,786
Fund-related operations
Subsidy payments2,0642,06414,473
SAF loans28,04028,040104,551
SAF repayments and interest2,9262,9262,668
Trust Fund repayments and interest12,18312,18341,543
Special charges on SAF, ESAF, and Trust Fund19819820
ESAF contributions and payments1,35183,28984,64047,381
ESAF repayments and interest2,0732,073537
Net interest on SDRs538,4662,950541,416482,809
Transfers from participants to General
Resources Account
Repurchases1,991,4901,991,4902,339,306
Charges2,006,4112,006,4111,897,119
Quota payments220,190220,19032,915
Interest on SDRs78,76578,76586,399
Assessment on SDR allocation3,6863,6864,270
Transfers from General Resources Account to participants and prescribed holders
Purchases1,333,7471,333,747944,823
Repayments of Fund borrowings1,089,6881,089,6881,844,841
Interest on Fund borrowings193,916929194,845333,633
In exchange for currencies of other members Acquisitions to pay charges363,894363,894363,815
Remuneration1,172,1451,172,1451,196,200
Other
Refunds and adjustments80,429________________80,42924,162
Total receipts10,247,1694,300,542276,78114,824,49216,829,150
Use of SDRs
Transfers among participants and prescribed holders
Transactions by agreement5,100,611165,7185,266,3296,776,605
Operations
Loans86,26086,260
Forward operations72,00072,000123,000
Settlement of financial obligations176,11114,962191,073146,294
Transfer of interest under swaps21,786
Fund-related operations
Subsidy payments2,0642,06414,473
SAF loans •28,04028,040104,551
SAF repayments and interest2,9262,9262,668
Trust Fund repayments and interest12,18312,18341,543
Special charges on SAF, ESAF, and Trust Fund19819820
ESAF contributions and payments83,2891,35184,64047,381
ESAF repayments and interest2,0732,073537
Transfers from participants to General Resources Account
Repurchases1,991,4901,991,4902,339,306
Charges2,006,4112,006,4111,897,119
Quota payments220,190220,19032,915
Assessment on SDR allocation3,6863,6864,270
Transfers from General Resources Account to participants and prescribed holders
Purchases1,333,7471,333,747944,823
Repayments of Fund borrowings1,089,6881,089,6881,844,841
Interest on Fund borrowings194,845194,845333,633
In exchange for currencies of other members Acquisitions to pay charges363,894363,894363,815
Remuneration1,172,1451,172,1451,196,200
Other
Refunds and adjustments80,42980,42924,162
Charges paid in the SDR Department
Net charges due620,180620,180569,208
Charges not paid when due(51,423)(51,423)(63,711)
Settlement of unpaid charges65,793____________65,79354,446
Total uses10,319,9784,234,748284,13514,838,86116,819,885
Total holdings at end of the year20,757,415694,28011,93121,463,62621,477,995
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

SDR Department

All transactions and operations involving SDRs are conducted through the SDR Department. 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. SDRs do not constitute claims by holders against the Fund to provide currency; however, in connection with the termination of participation or liquidation the Fund will provide to holders the currencies received from participants. 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 operations and transactions by agreement among themselves. Participants can also use SDRs in operations and transactions 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 a need because of its balance of payments or its reserve position or developments 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 participant 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, 1991, five members (six members at April 30, 1990) 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:

19911990
In millions of SDRs
Total overdue26.943.1
Overdue for more than six months21.836.3
Overdue for more than three years8.37.6
The duration of arrears of these members are as follows:
The duration of arrears of these members are as follows:
MemberTotalLongest Overdue

Obligation
In millions of SDRs
Cambodia8.9November 1984
Liberia5.4August 1988
Sierra Leone2.9May 1987
Sudan3.3August 1990
Viet Nam6.4February 1987
Total26.9

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, 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, 1991

(In thousands of SDRs)

(Note 1)

19911990
ASSETS
Interest-earning deposits (Note 2)3,88411,512
Accrued interest on deposits133452
Total4,01711,964
RESOURCES
Resources—Account balance4,01711,964
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ David Williams/s/ M. Camdessus
Acting TreasurerManaging Director
SUPPLEMENTARY FINANCING FACILITY SUBSIDY ACCOUNT STATEMENT OF CHANGES IN RESOURCES for the year ended April 30, 1991

(In thousands of SDRs)

(Note 1)

19911990
Balance at beginning of the year11,96428,426
Investment income5041,314
Transfers to the Special Disbursement Account(6,387)(3,303)
Balance before subsidy payments6,08126,437
Subsidy payments (Note 3)2,06414,473
Balance at end of the year4,01711,964
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 to be 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, 1991 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 of resources received from the Trust Fund by the Special Disbursement Account 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, 1991, the cumulative amount of transfers to the Special Disbursement Account from the Subsidy Account amounted to SDR 81.8 million (SDR 75.4 million at April 30, 1990).

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 specific currencies. The Fund’s procedures require that the SDR valuation basket be reviewed every five years, and 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. In accordance with these requirements, the SDR valuation basket was revised effective January 1, 1991. The currencies comprising the basket and their amounts in the basket during the year ended April 30, 1991 were as follows:

Amounts
CurrenciesMay 1-

December 31, 1990
January 1-

April 30, 1991
U.S. dollar0.4520.572
Deutsche mark0.5270.453
Japanese yen33.431.8
French franc1.020.800
Pound sterling0.08930.0812

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, 1991, subsidy payments totaling SDR 2.5 million have not been made to four members (at April 30, 1990, SDR 3.7 million to five members).

TRUST FUND BALANCE SHEET as at April 30, 1991

(In thousands of SDRs)

(Note 1)

19911990
ASSETS
Loans (Note 2)157,817325,621
Interest and charges receivable and accrued (Note 3)22,70518,252
Investments, at cost (which approximates market value)3,0263,252
Accrued interest on investments8295
Total183,630347,220
TRUST RESOURCES AND LIABILITIES
Trust resources158,000326,075
Liabilities
Undistributed profits from sale of gold (Note 4)2,9773,064
Deferred income (Note 3)22,65317,891
Borrowing189
Accrued interest on borrowing1
Total183,630347,220
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ David Williams/s/ M. Camdessus
Acting TreasurerManaging Director
TRUST FUND STATEMENT OF INCOME AND EXPENSE for the year ended April 30, 1991

(In thousands of SDRs)

(Note 1)

19911990
Income
Interest and charges on loans (Note 2)8,0989,463
Deduct income deferred (Note 3)4,7625,104
3,3364,359
Investment income225269
3,5614,628
Expense
Exchange valuation loss327
Interest expense on borrowing1
Net income3,5584,600
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, 1991

(In thousands of SDRs)

(Note 1)

19911990
Balance at beginning of the year326,075682,776
Net income3,5584,600
Balance before transfers to the Special
Disbursement Account329,633687,376
Transfers to the Special Disbursement
Account (Note 5)171,633361,301
Balance at end of the year158,000326,075
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. In 1980, the Fund, as Trustee, decided that upon the completion of the final loan disbursements, the Trust Fund shall be terminated as of April 30, 1981. After that date, the activities of the Trust Fund have been confined to the completion of any unfinished business of the Trust Fund and the winding up of its affairs. The resources of the Trust Fund are separate from the assets of all other accounts of or administered by the Fund and cannot 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 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 five specific currencies. The Fund’s procedures require that the SDR valuation basket be reviewed every five years, and 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. In accordance with these requirements, the SDR valuation basket was revised effective January 1, 1991. The currencies comprising the basket and their amounts in the basket during the year ended April 30, 1991 were as follows:

Amounts
CurrenciesMay 1-

December 31, 1990
January 1-

April 30, 1991
U.S. dollar0.4520.572
Deutsche mark0.5270.453
Japanese yen33.431.8
French franc1.020.800
Pound sterling0.08930.0812

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 Resources Account 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 as of April 30, 1981, residual administrative costs have been absorbed by the General Resources Account. 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. Interest on the outstanding loan balances is charged at the rate of ½ of 1 percent per annum, and special charges are levied on late payments of interest and principal.

3. Overdue Obligations

At April 30, 1991, six members with obligations to the Trust Fund were six months or more late in discharging their obligations to the Fund and were not current in settling interest (eight members at April 30, 1990). For these members the recognition of income from interest on the outstanding loans and special charges is being deferred. At April 30, 1991, the total amount of deferred income, reflected in the balance sheet as interest and charges receivable and accrued and as deferred income amounts to SDR 22.7 million (SDR 17.9 million at April 30, 1990). Overdue loan repayments and interest and special charges due from these members were as follows:

LoansInterest and

Special Charges
1991199019911990
In millions of SDRs
Total overdue157.8172.020.815.7
Overdue for more than six months157.3160.518.113.1
Overdue for more than three years112.475.46.63.4

The type and duration of the arrears of these members at April 30, 1991 were as follows:

MemberLoansInterest

and

Special

Charges
TotalLongest Overdue

Obligation
In millions of SDRs
Liberia25.04.029.0January 1985
Sierra Leone9.21.110.3January 1987
Somalia6.50.67.1July 1987
Sudan67.410.978.3July 1984
Viet Nam43.13.546.6February 1984
Zambia6.60.77.3April 1989
Total157.820.8178.6

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 Cambodia, will continue to be held in the Trust Fund until relations with that member have been restored.

5. Transfer of Resources

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 loan obligations and to make transfers to the Special Disbursement Account.

ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST COMBINED BALANCE SHEET as at April 30, 1991

(In thousands of SDRs)

(Note 1)

Loan

Account
Reserve

Account
Subsidy

Account
Combined

1991
Combined

1990
ASSETS
Investments (Note 2)91,459381,831458,273931,563708,235
Loans810,957810,957415,986
Accrued interest receivable2,39316,12722,84041,36019,100
Accrued account transfers8,3911,238(9,629)
Currency9312
Total913,209399,196471,4871,783,8921,143,321
LIABILITIES AND RESOURCES
Resources399,196379,270778,466487,311
Berrowing (Note 4)900,81391,365992,178647,352
Accrued interest on borrowing12,34685213,1988,630
Other liabilities505028
Total913,209399,196471,4871,783,8921,143,321
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/ David Williams/s/ M. Camdessus
Acting TreasurerManaging Director
ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST COMBINED STATEMENT OF INCOME AND EXPENSE for the year ended April 30, 1991

(In thousands of SDRs)

(Note 1)

LoanReserveSubsidyCombinedCombined
AccountAccountAccount19911990
Income
Investment income10,97529,31534,65774,94752,218
Interest on loans2,9802,9801,422
Exchange valuation gain(7)(19)25823267
13,94829,29634,91578,15953,707
Expense
Interest expense on borrowing31,4951,14332,63815,843
Other expenses505028
31,5451,14332,68815,871
Net income (loss)(17,597)29,29633,77245,47137,836
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, 1991

(In thousands of SDRs)

(Note 1)

LoanReserveSubsidyCombinedCombined
AccountAccountAccount19911990
Balance at beginning of the year272,577214,734487,311245,083
Contributions (Note 3)158,437158,437125,313
Transfers from Special Disbursement Account87,24787,24779,079
Subsidy Account transfers27,673(27,673)
Loan Account transfers(10,076)10,076
Net income (loss)(17,597)29,29633,77245,47137,836
Balance at end of the year399,196379,270778,466487,311
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 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 are 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 ½ of 1 percent per annum. At April 30, 1991, SDR 811.0 million in loans had been disbursed. (SDR 416.0 million at April 30, 1990).

Reserve Account

The resources of the Reserve Account consist of amounts transferred 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 to the Trust for the Subsidy Account including transfers of net earnings on resources temporarily placed to administered accounts; the proceeds of loans made to the Trust for 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 from 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 specific currencies. The Fund’s procedures require that the SDR valuation basket be reviewed every five years, and 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. In accordance with these requirements, the SDR valuation basket was revised effective January 1, 1991. The currencies comprising the basket and their amounts in the basket during the year ended April 30, 1991 were as follows:

Amounts
CurrenciesMay 1-

December 31, 1990
January 1-

April 30, 1991
U.S. dollar0.4520.572
Deutsche mark0.5270.453
Japanese yen33.431.8
French franc1.020.800
Pound sterling0.08930.0812

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, and corresponding transfers from the Trust’s Reserve Account may be made to the Special Disbursement Account, when and to the extent needed.

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, 1991 amounted to SDR 362.3 million (SDR 203.9 million at April 30, 1990) 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, 1991 (in thousands of SDRs):

AmountsAmountsAmounts
AgreedBorrowedAvailable
Loan Account4,945,000900,8134,044,187
Subsidy Account101,36591,36510,000

At April 30, 1990 borrowing agreements had been concluded for the Loan Account and the Subsidy Account amounting to SDR 4,575 million and SDR 101 million, respectively. Amounts available under these agreements at April 30, 1990 were SDR 4,009 million for the Loan Account and SDR 20 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, 1991 resources of the Loan Account were committed to members under 14 loan arrangements and undrawn balances under those arrangements amounted to SDR 617 million. At April 30, 1990 undrawn balances under 11 loan arrangements amounted to SDR 621 million. Loan arrangements are listed in Schedule 3. Scheduled repayments of outstanding loans are shown in Schedule 4.

Schedule 1ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST CONTRIBUTIONS TO THE SUBSIDY ACCOUNT1 as at April 30, 1991(In thousands of SDRs)
Cumulative
ContributorContribution
Austria9,448
Belgium15,506
Canada4,300
Denmark22,521
Finland22,684
Germany8,985
Greece5,372
Iceland200
Italy56,069
Japan74,228
Korea27,700
Luxembourg1,506
Netherlands10,480
Norway11,468
Sweden55,309
United Kingdom34,361
United States2,189
Total contributions received362,326

The Subsidy Account also benefits from the net investment earnings of the proceeds of loans or investments, which amounted to SDR 91.4 million at April 30, 1991.

The Subsidy Account also benefits from the net investment earnings of the proceeds of loans or investments, which amounted to SDR 91.4 million at April 30, 1991.

Schedule 2ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST SCHEDULE OF REPAYMENTS OF BORROWING as at April 30, 1991(In thousands of SDRs)
Periods of Repayment

Financial Years

Ending April 301
Loan AccountSubsidy Account
19941,465
199556,739
1996130,771
1997180,163
1998180,163
1999178,69860,000
2000123,42420,000
200149,39210,000
2002
20031,365
Total900,81391,365

Dates of repayment are the dates provided in the borrowing agreements between the Trustee and lenders.

Dates of repayment are the dates provided in the borrowing agreements between the Trustee and lenders.

Schedule 3ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST STATUS OF LOAN ARRANGEMENTS1 as at April 30, 1991(In thousands of SDRs)
Amount AgreedUndrawn Balance
MemberDate of

Arrangement
ExpirationESAF

Loan

Account
Structural

adjustment

facility
TotalESAF

Loan

Account
Structural

adjustment

facility
Total
BangladeshAug. 10, 1990Aug. 9, 1993258,750258,750215,625215,625
BoliviaJuly 27, 1988July 26, 199190,70045,350136,05045,35045,350
Gambia, TheNov. 23, 1988Nov. 22, 199117,1003,42020,5203,4203,420
GhanaNov. 9, 1988Nov. 8, 1991286,300102,250388,55048,00048,000
GuyanaJuly 13, 1990July 12, 199347,08434,44081,52410,82424,60035,424
KenyaMay 15, 1989May 14, 1992170,40071,000241,40060,46760,467
MadagascarMay 15, 1989May 14, 199243,70033,20076,90025,63325,633
MalawiJuly 15, 1988July 14, 199129,76026,04055,800
MauritaniaMay 24, 1989May 23, 199244,0706,78050,85030,5103,39033,900
MozambiqueJune 1, 1990May 31, 199385,40085,40061,00061,000
NigerDec. 12, 1988Dec. 11, 199140,4406,74047,18023,59023,590
SenegalNov. 21, 1988Nov. 20, 1991127,65017,020144,67037,0195,53242,550
TogoMay 31, 1989May 30, 199226,88019,20046,08015,36015,360
UgandaApr. 17, 1989Apr. 16, 1992159,36019,920179,28039,84039,840
Total1,427,594385,3601,812,954616,63733,522650,159

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.

Schedule 4ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST SCHEDULE OF REPAYMENTS OF LOANS as at April 30, 1991(In thousands of SDRs)
Periods of Repayment

Financial Years

Ending April 30
Loan

Account
19941,466
199540,534
1996103,691
1997162,191
1998162,191
1999160,726
2000121,657
200158,501
Total810,957
ENHANCED STRUCTURAL ADJUSTMENT FACILITY ADMINISTERED ACCOUNTS BALANCE SHEET as at April 30, 1991

(In thousands of SDRs)

(Note 1)

19911990
AustriaBelgiumGreeceAustriaBelgiumGreece
ASSETS
Investments (Note 2)60,000100,00935,00060,000100,00035,000
Accrued interest receivable1,7212,6661,1491,7502,7141,133
Total61,721102,67536,14961,750102,71436,133
LIABILITIES AND RESOURCES
Resources1,6212,5221,0841,6502,5631,067
Deposits (Note 3)60,000100,00035,00060,000100,00035,000
Accrued interest on deposits1001536510015166
Total61,721102,67536,14961,750102,71436,133
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ David WilliamsIs/ M. Camdessus
Acting TreasurerManaging Director
ENHANCED STRUCTURAL ADJUSTMENT FACILITY ADMINISTERED ACCOUNTS STATEMENT OF INCOME AND EXPENSE for the year ended April 30, 1991

(In thousands of SDRs)

(Note 1)

19911990
AustriaBelgiumGreeceAustriaBelgiumGreece
Income
Investment income5,2858,8543,0124,9807,8062,871
Deduct: Interest expense on deposits300500175300471175
Net income4,9858,3542,8374,6807,3352,696
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 STATEMENT OF CHANGES IN RESOURCES for the year ended April 30, 1991

(In thousands of SDRs)

(Note 1)

19911990
AustriaBelgiumGreeceAustriaBelgiumGreece
Balance at beginning of year1,6502,5631,0671,4041,392922
Net income4,9858,3542,8374,6807,3352,696
Transfers to Enhanced Structural
Adjustment Facility Trust
Subsidy Account(5,014)(8,395)(2,820)(4,434)(6,164)(2,551)
Balance at end of year1,6212,5221,0841,6502,5631,067
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 specific currencies. The Fund’s procedures require that the SDR valuation basket be reviewed every five years, and 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. In accordance with these requirements, the SDR valuation basket was revised effective January 1, 1991. The currencies comprising the basket and their amounts in the basket during the year ended April 30, 1991 were as follows:

Amounts
CurrenciesMay 1-

December 31, 1990
January 1-

April 30, 1991
U.S. dollar0.4520.572
Deutsche mark0.5270.453
Japanese yen33.431.8
French franc1.020.800
Pound sterling0.08930.0812

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 on 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 of ½ of 1 percent per annum.

ADMINISTERED ACCOUNT—JAPAN BALANCE SHEET as at April 30, 1991

(In thousands of U.S. dollars)

(Note 1)

19911990
ASSETS
Investments (Note 2)86,70060,900
Currency deposit11
Accrued interest receivable97
Total86,71160,997
RESOURCES
Resources—Account balance86,71160,997
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ David Williams/s/ M. Camdessus
Acting TreasurerManaging Director
ADMINISTERED ACCOUNT—JAPAN STATEMENT OF CHANGES IN RESOURCES for the year ended April 30, 1991

(In thousands of U.S. dollars)

(Note 1)

19911990
Balance at beginning of the year60,99743,852
Contribution received29,75016,260
Income earned on investments (Note 2)4,9643,885
95,71163,997
Payment to beneficiary9,0003,000
Balance at end of the year86,71160,997
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 from Japan that resources should be disbursed. Cumulative contributions amount to $89.7 million, of which $12 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. 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 as at April 30, 1991

(In thousands of U.S. dollars)

(Note 1)

ASSETS19911990
Investments (Note 2)3216,218
Accrued interest receivable58
3216,276
RESOURCES
Resources—Account balance3216,276
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ David Williams/s/ M. Camdessus
Acting TreasurerManaging Director
ADMINISTERED ACCOUNT—GUYANA STATEMENT OF CHANGES IN RESOURCES for the year ended April 30, 1991

(In thousands of U.S. dollars)

(Note 1)

19911990
Balance at beginning of year6,276
Contributions received235,4587,925
Income earned on investments (Note 2)417127
242,1518,052
Payments to beneficiary241,8541,700
Net exchange valuation gain (loss)24(76)
Balance at end of the year3216,276
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 to be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

Contributions received by the Account are temporarily invested pending the receipt of notification that resources, including investment income, are to be disbursed. Cumulative contributions amount to $244.4 million, and an amount of $244.6 million including interest earned on contributions has been 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 or in the form of interest-earning deposits. Account resources have been temporarily invested in SDR-denominated obligations in anticipation of Guyana’s settlement of obligations denominated in SDR. 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 transferors, unless otherwise indicated by them.

ADMINISTERED TECHNICAL ASSISTANCE ACCOUNT—JAPAN BALANCE SHEET as at April 30, 1991

(In thousands of U.S. dollars)

(Note 1)

ASSETS19911990
Investments (Note 2)1,059290
RESOURCES
Resources—Account balance1,059290
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ David Williams/s/ M. Camdessus
Acting TreasurerManaging Director
ADMINISTERED TECHNICAL ASSISTANCE ACCOUNT—JAPAN STATEMENT OF CHANGES IN RESOURCES for the year ended April 30, 1991

(In thousands of U.S. dollars)

(Note 1)

19911990
Balance at beginning of the year290
Contributions received2,206288
Income earned on investments (Note 2)742
2,570290
Payments to beneficiaries1,511
Balance at end of the year1,059290
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 are to be used with the approval of Japan, to assist members in strengthening 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 qualifying 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 to be 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 and are available for the purposes of the Account. Cumulative contributions amount to $2.5 million, of which $1.5 million has been disbursed.

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 may remain in the Administered Technical Assistance Account at termination, net of accrued liabilities under Technical Assistance Projects, are to be returned to Japan.

VOLUNTARY CONTRIBUTION ACCOUNT—BOLIVIA BALANCE SHEET as at April 30, 1991

(In thousands of U.S. dollars)

(Note 1)

19911990
ASSETS
Investments (Note 2)2,0048,284
RESOURCES
Resources—Account balance2,0048,284
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ David Williams/s/ M. Camdessus
Acting TreasurerManaging Director
VOLUNTARY CONTRIBUTION ACCOUNT—BOLIVIA STATEMENT OF CHANGES IN RESOURCES for the year ended April 30, 1991

(In thousands of U.S. dollars)

(Note 1)

19911990
Balance at beginning of the year8,28473
Contributions received14,537
Income earned on investments (Note 2)266322
8,55014,932
Payments to beneficiary6,5466,648
Balance at end of the year2,0048,284
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

At the request of Bolivia, the Fund established an account on October 21, 1987, to administer contributions to assist Bolivia in discharging a portion of the external indebtedness owed or guaranteed by it to nonofficial creditors. The Fund administers the Voluntary Contribution Account, performs financial services at the request of Bolivia, and makes disbursements from the Account as instructed by Bolivia. The resources of the 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 by the Voluntary Contribution Account are invested pending the receipt of notification of their disbursement. Cumulative contributions amount to $50.4 million, of which $49.9 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 Account, pending their disbursement, are held in the form of repurchase agreements or in the form of interest-earning deposits. 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.

VOLUNTARY CONTRIBUTION ACCOUNT—COSTA RICA STATEMENT OF CHANGES IN RESOURCES for the period May 15, 1990 to May 22, 1990

(In thousands of U.S. dollars)

(Note 1)

253,452
Income earned on investments (Note 2)104
253,556
Payments to beneficiary253,556
Balance, May 22, 1990
The accompanying notes are an integral part of the financial statement.
The accompanying notes are an integral part of the financial statement.
/s/ David Williams/s/ M. Camdessus
Acting TreasurerManaging Director

VOLUNTARY CONTRIBUTION ACCOUNT—COSTA RICA NOTES TO THE FINANCIAL STATEMENTS

Purpose

At the request of Costa Rica, the Fund established an account on April 25, 1990, to administer resources to finance Costa Rica’s debt and debt-service reduction and refinancing operations. Resources were used for operations relating to external indebtedness owed or guaranteed by the Republic of Costa Rica, its Central Bank, or any other governmental agency to nonofficial creditors. The Fund administered this Account and performed financial services at the request of Costa Rica. The resources of the Voluntary Contribution Account were separate from the assets of all other accounts of or administered by the Fund and could not be used to discharge liabilities or to meet losses incurred in the administration of other accounts.

Cumulative contributions during the operation of the Voluntary Contribution Account amounted to $253.5 million, and these contributions and investment income equal to $253.6 million have been disbursed. Resources received by the Account were temporarily invested until the Fund was notified that resources, including investment income, were to be disbursed.

1. Accounting Practices

Unit of Account

The accounts of the Voluntary Contribution Account were expressed and denominated in U.S. dollars. All transfers to and disbursements from the Account were denominated in U.S. dollars.

Basis of Accounting

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

2. Investments

The assets of the Voluntary Contribution Account, before their disbursement, were held in the form of repurchase agreements. Interest received on these assets varied and was market related.

3. Account Termination

At the instruction of Costa Rica, the Voluntary Contribution Account was terminated by the Fund on May 22, 1990.

STAFF RETIREMENT PLAN REPORT OF THE EXTERNAL AUDIT COMMITTEE

Washington, D.C.

June 27, 1991

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, 1991.

Our audit was conducted in accordance with generally accepted auditing standards and included reviews of the accounting and internal control systems, and tests of the accounting records. We evaluated the extent and results of the work of the Independent Accountants as well as that of the Office of Internal Audit and Review and also used other audit procedures as deemed necessary.

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, 1991 and of the changes in financial status for the year then ended.

EXTERNAL AUDIT COMMITTEE

/s/ Philippe Lacarriere, Chairman (France)

/s/ Michael J. Jacobs (Australia)

/s/ Jocelyn Thompson (Trinidad and Tobago)

STAFF RETIREMENT PLAN STATEMENT OF ACCUMULATED PLAN BENEFITS AND NET ASSETS AVAILABLE FOR BENEFITS as at April 30, 1991

(In thousands of U.S. dollars)

(Note 1)

19911990
Accumulated Plan Benefits
Actuarial present value of accumulated Plan benefits
vested benefits
Retired participants341,100286,800
Active participants266,900211,600
Nonvested benefits429,400308i300
Total actuarial present value of accumulated Plan benefits1,037,400806,700
Net Assets Available for Benefits
Investments, at current value (Note 3)
Portfolio denominated in U.S. dollars959,203860,297
Portfolio denominated in other currencies398,721366,033
1,357,9241,226,330
Receivables
Contributions283318
Accrued interest and dividends8,7189,201
Other411,904
9,04211,423
Cash at banks9443
Total assets1,367,0601,237,796
Liabilities
Accounts payable2,5861,669
Net assets available for benefits1,364,4741,236,127
Excess of net assets available for benefits over actuarial present value of accumulated Plan benefits (Note 2)327,074429,427
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ David Williams/s/ M. Camdessus
Acting TreasurerManaging Director
STAFF RETIREMENT PLAN STATEMENT OF CHANGES IN ACCUMULATED PLAN BENEFITS for the year ended April 30, 1991

(In thousands of U.S. dollars)

(Note 1)

19911990
Actuarial present value of accumulated Plan benefits at beginning of the year806,700726,400
Increase (decrease) during the year attributable to Benefits accumulated (Note 1)183,11943,399
Increase for interest due to decrease in discount period76,10060,700
Benefits paid(28,519)(23,799)
230,70080,300
Actuarial present value of accumulated Plan benefits at end of the year1,037,400806,700
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, 1991

(In thousands of U.S. dollars)

(Note 1)

19911990
Investment Income
Net gain in current value of investments (Note 3)76,72523,491
Interest and dividends68,30471,100
145,02994,591
Contributions (Note 2)
International Monetary Fund6,28915,141
Participants12,03812,555
Participants restored to service343117
Net transfers to retirement plans of
other international organizations(11)(350)
18,65927,463
Total additions163,688122,054
Benefits
Pension23,34820,687
Withdrawal2,4851,866
Commutation2,2561,118
Death430128
28,51923,799
Investment Fees
Custodian824814
Manager5,9986,298
6,8227,112
Total payments35,34130,911
Net additions128,34791,143
Net Assets Available for Benefits at
Beginning of year1,236,1271,144,984
End of year1,364,4741,236,127
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 in 1990. The first amendment, which limits the compensation on which benefits may be based, had an effective date of May 1, 1989. The second amendment, which makes the changes referred to below as the new Plan provisions, had an effective date of May 1, 1990.

Annual Pension

Participants are entitled to an unreduced pension beginning at normal retirement age of 62 (65 under the old Plan provisions). The amount of the pension is based on the number of years of service, age at retirement, and highest average gross remuneration. Beginning May 1, 1989 the gross remuneration on which pensions from the Plan are based is limited to a predetermined amount which is periodically adjusted. Pension benefits attributable to gross remuneration in excess of this amount are paid from the Supplemental Retirement Benefit Plan. The provisions determining gross remuneration have been amended under the new Plan.

The accrual rate of benefits under the old Plan was 2 percent of gross remuneration for each year of service, while the accrual rate under the new Plan is 2.2 percent for the first 25 years of service and 1.8 percent for the next 10 years of service. 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, using the time period 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. 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 between the agés of 50 and 55 may retire with a reduced pension if their age and years of service total at least 75. Participants age 55 and older may retire with an unreduced pension if the sum of their age and years of service equals 85 or more (90 under the old 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 increases during a financial year, 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 increase 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 a former participant’s age and years of service is at least 50 (55 under the old 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 50 (if age and years of service add to 75) or age 55 with shorter service. 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 is 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, but based on a participant’s actual contributions.

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 at retirement 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 of deceased participants. Under the old Plan, surviving spouses and children of pensioners receive benefits only if certain age and eligible service requirements had been met by the deceased retiree. Under the new Plan these benefits are 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 residence. 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. As a result of an amendment to the Plan that became effective on May 1, 1991, the additional cost of paying pensions in local currency, formerly paid by the administrative budget, is now paid by the Plan.

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 presently 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 1991 the administrative costs met by the Employer were approximately $0.2 million ($0.7 million in 1990).

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 and that salaries will continue to rise, 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 the with the estimated effect of projected salary increases on benefits expected to be paid.

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, 1991. 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 does it take into account the fact that the market value of investments may fluctuate from year to year, which is significant because the employer’s liability is the excess of the present value of accumulated benefits over the value of the assets. Accordingly, the financial statements do not measure the amount which the Employer will be required to fund in the future.

The increase during financial year 1991 in accumulated benefits referred to in the Statement of Changes in Accumulated Plan Benefits, equal to $183.1 million, includes an amount equal to $45.3 million relating to changes in actuarial assumptions and an amount equal to $57.1 million resulting from Plan amendments.

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, but that no new participant will join the Plan (the “closed method”).

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 which 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, 1989 this rate was 8.45 percent and was 3.91 percent for the year which began on May 1, 1990 based upon the valuation at April 30, 1989. The proposed rate for the year beginning May 1, 1991 is 10.46 percent of the new gross remuneration.

The actuarial assumptions used in the valuation to determine the employer contribution in recent years include (a) life expectancy based upon the 1980 and 1982 United Nations mortality tables for men and women, respectively, (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 a five-year moving average method. The April 30, 1990 valuation was based upon the new Plan and its transitional provisions because this valuation projects the cost of future benefits.

Several of the actuarial assumptions used to determine the employer contribution have been changed for years beginning after April 30, 1991. The changes include (1) basing life expectancies on the 1984 and 1982 United Nations mortality tables for men and women, respectively, with each table set back one year and (2) increasing the liabilities of the Plan by 1 percent to reflect the May 1, 1991 incorporation into the Plan of the Pension Parity Adjustment System.

The results of the April 30, 1990 and 1989 valuations are:

19901989
In millions of U.S. dollars
Present value of benefits payable1,3731,193
Less: Assets for valuation purposes1,155999
Required future funding218194
Less: Present value of prospective contributions from participants (7 percent of gross remuneration)127129
Present value of future funding required from the Employer9165

3. Investments

A summary of investments at market values is as follows:

19911990
In thousands of U.S. dollars
Portfolio denominated in U.S. dollars
U.S. Government securities174,085140,676
Corporate bonds and debentures82,55072,949
Common and preferred stock613,570503,121
Mortgage2,639
Real estate46,73546,523
Venture capital1,5354,053
Short-term investments38,08992,975
959,203860,297
Portfolio denominated in other currencies398,721366,033
1,357,9241,226,330

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 27, 1991

Authority and Scope of the Audit

In accordance with Section 20(b) of the By-Laws of the International Monetary Fund, we haveaudited the financial statements of the Supplemental Retirement Benefit Plan for the year ended April 30, 1991.

Our audit was conducted in accordance with generally accepted auditing standards and included reviews of the accounting and internal control systems, and tests of the accounting records. We evaluated the extent and results of the work of the Independent Accountants as well as that of the Office of Internal Audit and Review and also used other audit procedures as deemed necessary.

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 year, and give a true and fair view of the financial status of the Supplemental Retirement Benefit Plan as at April 30, 1991 and of the changes in financial status for the year then ended.

EXTERNAL AUDIT COMMITTEE

/s/ Philippe Lacarriere, Chairman (France)

/s/ Michael J. Jacobs (Australia)

/s/ Jocelyn Thompson (Trinidad and Tobago)

SUPPLEMENTAL RETIREMENT BENEFIT PLAN STATEMENT OF ACCUMULATED PLAN BENEFITS AND ASSETS AVAILABLE FOR BENEFITS as at April 30, 1991

(In thousands of U.S. dollars)

(Note 1)

19911990
Accumulated Plan Benefits
Actuarial present value of accumulated Plan benefits
Vested benefits1,700900
Nonvested benefits—100100
Total actuarial present value of
accumulated Plan benefits1,8001,000
Assets Available for Benefits
Receivable
Contributions1
Other15
151
Cash at bank (Note 3)461166
Assets available for benefits476167
Excess of actuarial present value of accumulated Plan
benefits over assets available for benefits1,324833
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.
/s/ David Williams/s/ M. Camdessus
Acting TreasurerManaging Director
SUPPLEMENTAL RETIREMENT BENEFIT PLAN STATEMENT OF CHANGES IN ACCUMULATED PLAN BENEFITS for the year ended April 30, 1991

(In thousands of U.S. dollars)

(Note 1)

19911990
Actuarial present value of accumulated
Plan benefits at the beginning of the year1,000800
Increase (decrease) during the period attributable to
Benefits accumulated846197
Increase for interest due to decrease
in discount period100100
Benefits paid(146)(97)
Net increase800200
Actuarial present value of accumulated
Plan benefits at the end of the year1,8001,000
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, 1991

(In thousands of U.S. dollars)

(Note 1)

19911990
Interest income205
Contributions
International Monetary Fund39362
Participants4271
435133
Total additions455138
Benefits
Pension10897
Commutation38
Total payments14697
Net additions30941
Net Assets Available for Benefits at
Beginning of the year167126
End of the year476167
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.

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.

In financial year 1991, 15 pensioners received benefits from the SRBP (ten in 1990).

Contributions

Before financial year 1990 the SRBP was entirely funded by the Employer. Beginning May 1, 1989, participants with gross remuneration exceeding a 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 present value of accumulated Plan benefits is stated as at the date of the most recent actuarial valuation, which was April 30, 1991. 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 used in the valuation to determine the employer contribution in recent years include (a) life expectancy based upon the 1980 and 1982 United Nations mortality tables for men and women, respectively, (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 a five-year moving average method. The April 30, 1990 valuation was based upon the new Plan and its transitional provisions because this valuation projects the costs of future benefits.

Several of the actuarial assumptions used to determine the employer contribution have been changed for years beginning after April 30, 1991. The changes include (1) basing life expectancies on the 1984 and 1982 United Nations mortality tables for men and women, respectively, with each table set back one year and (2) increasing the liabilities of the Plan by one percent to reflect the May 1, 1991 incorporation into the Plan of the Pension Parity Adjustment System.

3. Assets

Cash balances are maintained in a money market account.

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