Chapter

APPENDIX IX Financial Statements

Author(s):
International Monetary Fund
Published Date:
January 1993
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REPORT OF THE EXTERNAL AUDIT COMMITTEE

Washington, D.C.

June 30, 1993

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 financial year ended April 30, 1993,

  • SDR Department for the financial year ended April 30, 1993, and

  • Accounts Administered by the Fund, for the financial year ended April 30, 1993, which consist of the:

    • Enhanced Structural Adjustment Facility Trust,

    • Enhanced Structural Adjustment Facility Administered Accounts:

      • — Austria,

      • — Belgium,

      • — Greece,

      • — Saudi Fund for Development (SFD) Special Account,

    • Other Administered Accounts:

      • — Administered Account—Japan,

      • — Administered Technical Assistance Account—Japan,

      • — Administered Account—Guyana (for the period from May 1, 1992 to December 31, 1992),

      • — Voluntary Contribution Account—Bolivia (for the period from May 1, 1992 to December 31, 1992),

    • Trust Fund,

    • Supplementary Financing Facility Subsidy Account.

Our audit was conducted in accordance with generally accepted auditing standards and included reviews of accounting and internal control systems, and tests of the accounting records. We evaluated the extent and results of the work of the outside accounting firm 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 to three), 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 and give a true and fair view of the respective financial positions and the allocations and holdings of SDRs as at April 30, 1993, and of the financial results of operations and transactions during the respective periods (except in the cases of the Administered Account—Guyana and the Voluntary Contribution Account—Bolivia which were terminated on December 31, 1992).

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

EXTERNAL AUDIT COMMITTEE:

Mohammed Zouhair Tallaj, Chairman (Syrian Arab Republic)

José Manuel Palenque (Bolivia)

Koji Yamazaki (Japan)

GENERAL DEPARTMENT

BALANCE SHEETS as at April 30, 1993 and 1992

(In thousands of SDRs)

(Note 1)

19931992
ASSETS
GENERAL RESOURCES ACCOUNT
Currencies and securities (Notes 2 and 5)138,828,27892,719,917
SDR holdings (Note 3)7,930,129680,338
Gold holdings (Note 4)3,624,7973,620,396
Charges receivable (Note 5)1,408,2181,603,520
Interest receivable on SDR holdings102,76513,267
Quota subscriptions receivable73,50069,000
Other receivables82,397
Other assets50,05240,718
TOTAL GENERAL RESOURCES ACCOUNT152,100,13698,747,156
SPECIAL DISBURSEMENT ACCOUNT
Interest-earning and currency deposits615,315680,675
Structural adjustment facility loans1,879,2521,864,596
Interest receivable7,36226,112
TOTAL SPECIAL DISBURSEMENT ACCOUNT2,501,9292,571,383
TOTAL ASSETS154,602,065101,318,539
QUOTAS, RESERVES, LIABILITIES, AND RESOURCES
GENERAL RESOURCES ACCOUNT
Quotas (Note 2)144,606,20091,221,550
Reserves (Note 6)1,627,3231,556,752
Special Contingent Accounts (Note 5)911,897656,632
Liabilities
Borrowing (Note 7)3,360,0003,710,000
Remuneration payable (Note 5)241,719210,452
Accrued interest41,32059,725
Other liabilities253,727150,338
3,896,7664,130,515
Deferred income from charges (Note 5)1,057,9501,181,707
TOTAL GENERAL RESOURCES ACCOUNT152,100,13698,747,156
SPECIAL DISBURSEMENT ACCOUNT
Accumulated resources2,499,8842,570,314
Deferred income2,0451,069
TOTAL SPECIAL DISBURSEMENT ACCOUNT2,501,9292,571,383
TOTAL QUOTAS, RESERVES, LIABILITIES, AND RESOURCES154,602,065101,318,539
The accompanying notes and schedules are an integral part of the financial statements.
The accompanying notes and schedules are an integral part of the financial statements.
/s/ David Williams/s/ M. Camdessus
TreasurerManaging Director

INCOME STATEMENTS for the years ended April 30, 1993 and 1992

(In thousands of SDRs)

(Note 1)

19931992
GENERAL RESOURCES ACCOUNT
OPERATIONAL INCOME (Note 5)
Periodic charges1,392,0231,654,165
Interest on SDR holdings217,38056,942
Service charges26,42226,472
Stand-by, special charges, and other income37,68023,495
Burden-sharing contributions
net of refunds: (Note 5)
Additional charges52,795127,753
Reduction of remuneration103,489168,649
Settlements in excess (less than)
of deferred charges98,300(66,293)
1,928,0891,991,183
OPERATIONAL EXPENSES
Remuneration (Note 5)1,116,8391,152,812
Interest expense (Note 7)222,072286,551
Allocation to the Special Contingent
Accounts (Note 5)255,265229,673
1,594,1761,669,036
NET OPERATIONAL INCOME333,913322,147
ADMINISTRATIVE EXPENSES (Notes 1 and 9)263,342232,221
NET INCOME OF GENERAL RESOURCES ACCOUNT70,57189,926
SPECIAL DISBURSEMENT ACCOUNT
Investment income39,72062,534
Interest and special charges8,5218,232
48,24170,766
Administrative expenses (Note 9)16,50215,306
NET INCOME OF SPECIAL DISBURSEMENT ACCOUNT31,73955,460
The accompanying notes and schedules are an integral part of the financial statements.
The accompanying notes and schedules are an integral part of the financial statements.

STATEMENTS OF CHANGES IN RESERVES AND RESOURCES for the years ended April 30, 1993 and 1992

(In thousands of SDRs)

(Note 1)

19931992
RESERVES—GENERAL RESOURCES ACCOUNT
SPECIAL RESERVE (Note 6)
Balance, beginning of the year1,191,1721,101,246
Net income70,57189,926
Balance, end of the year1,261,7431,191,172
GENERAL RESERVE (Note 6)
Balance, beginning and end of the year365,580365,580
TOTAL RESERVES1,627,3231,556,752
RESOURCES—SPECIAL DISBURSEMENT ACCOUNT
Balance, beginning of the year2,570,3142,594,838
Transfers from Trust Fund1,6011,115
Transfers from SFF Subsidy Account1,227
Transfers to ESAF Trust(103,770)(82,326)
2,468,1452,514,854
Net income31,73955,460
TOTAL RESOURCES2,499,8842,570,314
The accompanying notes and schedules are an integral part of the financial statements.
The accompanying notes and schedules are an integral part of the financial statements.

NOTES TO THE FINANCIAL STATEMENTS April 30, 1993 and 1992

General Department

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, 1993. The Borrowed Resources Suspense Accounts were established in May 1981 within the General Department.

General Resources Account

Most of the transactions between member countries and the Fund take place through the General Resources Account. This account reflects the receipt of quota subscriptions, purchases and repurchases, collection of charges and payment of remuneration on member’s use of Fund credit and on creditor positions in the Fund, and repayment of principal to the Fund’s lenders. Assets held in the General Resources Account include (i) currencies (including securities) of the Fund’s member countries, (ii) SDR holdings, and (iii) gold.

The Fund makes its resources available to its members under policies on the use of its resources by selling to members, in exchange for their own currencies, SDRs or currencies of other members. When members make purchases, they incur an obligation to repurchase the Fund’s holdings of their currencies, within the periods specified by the Fund, by the payment to the Fund of SDRs or currencies of other members specified by the Fund. The Fund’s policies on the use of its resources are intended to assure that their use 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 transactions, including purchases and repurchases. Currencies and securities consist of holdings of currencies or notes payable on demand that substitute for the members’ currencies, 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 that reflect the member’s use of Fund credit, are less than the member’s quota. A member’s reserve tranche is considered a part of the member’s external reserves, which it may draw at any time when it represents that it has a need. Reserve tranche purchases are not considered a use of Fund credit.

A member is entitled to repurchase at any time the Fund’s holdings of its currency on which the Fund levies charges and is expected to make repurchases as and when its balance of payments and reserve position improves.

On April 23, 1993, the systemic transformation facility (STF) was established as a temporary facility to provide assistance at an early stage to members experiencing serious balance of payments difficulties as a result of disruptions in their traditional trade and payments arrangements. This facility provides assistance to members that are significantly affected by these systemic shocks. As of April 30, 1993, no drawings had been made under this facility.

Special Disbursement Account

The Special Disbursement Account was activated on June 30, 1981 to receive transfers from the Trust Fund, which is in the process of being wound up. A structural adjustment facility (SAF) was established in March 1986 within the Special Disbursement Account to provide balance of payments assistance to qualifying low-income developing members.

Pending their use, resources held in the Special Disbursement Account are placed in SDR-denominated investments. Balances may be placed temporarily in U.S. dollar-denominated investments.

The Special Disbursement Account is a part of the General Department of the Fund. The assets and income of the account are held separate from resources of other accounts of the General Department. Assets that exceed the need of the account are transferred to the Reserve Account of the Enhanced Structural Adjustment Facility Trust (ESAF Trust), which is separately administered by the Fund as Trustee. Resources of the ESAF Trust Reserve Account that are determined to be in excess of its estimated needs are to be transferred back to the Special Disbursement Account. Upon liquidation of the ESAF Trust, the amounts remaining in the Reserve Account after the discharge of remaining liabilities shall be transferred to the Special Disbursement Account.

1. Accounting Practices

The accounts of the General Department are expressed in terms of the SDR. SDRs are interest-earning assets allocated to participants in the Fund’s SDR Department. 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 currencies. The Fund’s procedures require that the SDR valuation basket be reviewed every five years, and that it include the currencies of the members having the largest exports of goods and services during the five-year period ending one year prior to the date of the revisions. The SDR valuation basket was last reviewed in financial year 1991. The currencies comprising the basket and their amounts in the basket are as follows:

CurrencyAmount
U.S. dollar0.572
Deutsche mark0.453
Japanese yen31.8
French franc0.800
Pound sterling0.0812

Currencies are valued in terms of the SDR on the basis of the representative exchange rate determined for each currency in accordance with the Rules of the Fund.

The Fund maintains its accounts on the 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 settling 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).

Until April 30, 1993, it had been the Fund’s policy to charge as an expense of each accounting period the total costs incurred for property, furniture, and equipment except that the costs of land acquisition, land improvements, and design costs of a proposed extension of the Fund’s headquarters building are accumulated in an asset account pending completion of the project (SDR 19.3 million and SDR 15.5 million at April 30, 1993 and 1992, respectively). For the year ended April 30, 1993, the cost of other building improvements and equipment in excess of $100,000 amounted to SDR 3.0 million (SDR 1 million for financial year 1992). The cumulative costs of land and buildings, excluding the cost of the extension, amount to SDR 109 million (SDR 105 million for financial year 1992).

On May 1, 1993, the Fund will commence depreciation accounting by capitalizing and depreciating all assets (with a cost in excess of $100,000) over their estimated useful lives. On that date, the Fund will also reinstate the estimated net book value of land and buildings on May 1, 1993 that had previously been written off. The net book value of buildings and land is equal to historical cost less estimated depreciation expense and is estimated at SDR 48.4 million.

2. Quotas, Currencies, and Securities

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 in 1978 members were permitted to pay the entire increase in their own currencies. A member’s quota is not increased until the member consents to the increase and pays the subscription. 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.

The increase under the Ninth General Review of Quotas became effective on November 11, 1992, after members having 70 percent of the total quotas on May 30, 1990 consented to the increase in quotas and after the adoption of the Third Amendment to the Fund’s Articles of Agreement. The Third Amendment provides that a member’s voting and certain related rights may be suspended by a 70 percent majority of the total voting power, if the member persists in its failure to fulfill its obligations under the Articles. When all members will have consented and paid the increase, the quotas of members in the Fund will increase to SDR 146.0 billion. At April 30, 1993, 162 members had made increases of quota payments amounting to SDR 47.5 billion.

During the year ended April 30, 1993, the Fund’s membership increased by seventeen new members. These include fourteen states of the former Soviet Union (Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Moldova, the Russian Federation, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan), the Marshall Islands, San Marino, and Switzerland. In addition, the successor states to the former Czech and Slovak Federal Republic and some successor states to the former Socialist Federal Republic of Yugoslavia became members of the Fund.

On January 1, 1993, the former Czech and Slovak Federal Republic ceased to exist and to be a member of the Fund, and the Czech Republic and the Slovak Republic succeeded to the assets and liabilities of the former Czech and Slovak Federal Republic in the Fund for respectively 69.61 percent and 30.39 percent of the share of the former Czech and Slovak Federal Republic, and became members of the Fund with a share of the quota of the former Czech and Slovak Federal Republic equal to their share in the assets and liabilities.

On December 14, 1992, the former Socialist Federal Republic of Yugoslavia ceased to exist and to be a member of the Fund, and the Fund determined that the respective shares of the successor states to the assets and liabilities of the former Socialist Federal Republic of Yugoslavia were as follows:

Share
In percent
Republic of Bosnia and Herzegovina13.20
Republic of Croatia28.49
Former Yugoslav Republic of Macedonia5.40
Republic of Slovenia16.39
Federal Republic of Yugoslavia
(Serbia/Montenegro)36.52
Total100.00

Each successor state has agreed to its share in the assets and liabilities of the former Socialist Federal Republic of Yugoslavia in the Fund as determined by the Fund. Each successor may succeed to the membership of the former Socialist Federal Republic of Yugoslavia in the Fund if certain conditions are met, including the settlement of its proportionate share of the overdue obligations to the Fund. As at April 30, 1993, the Republic of Croatia, the Republic of Slovenia, and the former Yugoslav Republic of Macedonia had succeeded to membership in the Fund, effective December 14, 1992. An amount of SDR 82.4 million included in other receivables represents the net claim of the Fund (the Fund’s holdings of currencies and securities less quota) against the two successor states to the former Socialist Federal Republic of Yugoslavia that have not succeeded to membership in the Fund as of April 30, 1993.

Changes in the Fund’s holdings of members’ currencies and securities for the year ended April 30, 1993 were as follows:

April 30,

1993
April 30,

1992
Net

Change
In millions of SDRs
Members’ quotas144,60691,22253,384
Less quota subscription receivable(74)(69)(5)
Less other receivable(82)(82)
144,45091,15353,297
Members’ outstanding use of Fund resources24,63523,4321,203
Members’ outstanding reserve tranche positions(30,264)(21,869)(8,395)
Administrative currency balances743
Currencies and securities138,82892,72046,108

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 amounts 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, a receivable or a payable is established for the amount of currency payable by or to the member in order to maintain the SDR value of the Fund’s holdings of the currency. The balances of the receivables or payables are reflected in the Fund’s total currency holdings. At April 30, 1993, when all holdings of currency of members were revalued, receivables and payables arising from valuation adjustments amounted to SDR 21,700.8 million and SDR 804.6 million, respectively (SDR 11,012.3 million and SDR 494.5 million, respectively, at April 30, 1992). At June 21, 1993, the amounts receivable were SDR 15,065.9 million and the amounts payable were SDR 766.2 million.

The Fund’s holdings of members’ currencies at April 30, 1993 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. The Fund receives SDRs from members in the settlement of their financial obligations to the Fund and uses SDRs in transactions and operations between the Fund and its members. The Fund earns interest on its SDR holdings at the same rate as all other holders of SDRs.

4. Gold Holdings

At April 30, 1993 and April 30, 1992, the Fund held 3,217,341 kilograms equal to 103,439,916 fine ounces of gold at designated depositories. Gold held by the Fund is valued on the basis of 0.888671 gram of fine gold per SDR, which is equivalent to SDR 35 per fine ounce, except that 21,396 fine ounces held by the Fund on behalf of a member were acquired on December 14, 1992 at market value, for a total amount of SDR 5.1 million in partial settlement of the member’s overdue obligations.

5. Fund Operations

Changes in the outstanding use of Fund credit under various facilities during the year ended April 30, 1993 were as follows:

April 30,

1992
PurchasesRepurchasesApril 30,

1993
In millions of SDRs
Regular facilities5,8691,9051,0086,766
Compensatory and contingency financing5,322901,2054,207
Extended Fund facility5,5832,1508646,869
Supplementary financing facility26062198
Enlarged access6,3981,1399426,595
Total23,4325,2844,08124,635

Members’ use of Fund credit is shown in Schedule 1.

Charges

The Fund levies periodic charges on its holdings of members’ currencies that derive from their use of Fund credit. The rate of charge on the use of the Fund’s own resources is set to attain a positive net income after considering the Fund’s estimated income and expense. This rate is adjusted periodically to offset the effect on income as a result of the deferral of charges and to finance the additions to Special Contingent Accounts, which are further discussed below. A separate rate of charge, based on the average cost of borrowing, was levied on the use of resources financed by the Fund’s borrowing. However, effective May 1, 1993, a single unified rate of charge shall apply to the use of Fund resources, and burden-sharing adjustments will also be made to the use of the Fund’s borrowed resources. Special charges are also levied on holdings that are not repurchased when due, and on charges that are not settled when due, except that these charges do not apply to members that are six months or more overdue to the Fund.

A service charge of ½ of 1 percent is also levied by the Fund on each purchase, except a reserve tranche purchase. The Fund charges a stand-by fee of ¼ of 1 percent under a stand-by or extended arrangement, which is refunded in proportion to purchases made under the 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, 1993 amounted to SDR 12.1 million (SDR 3.7 million in 1992).

At April 30, 1993, the total holdings on which the Fund levied charges amounted to SDR 24,635 million (SDR 23,432 million at April 30, 1992).

Remuneration

The Fund pays remuneration on a member’s remunerated reserve tranche position. The rate of remuneration is equal to the SDR interest rate, and is adjusted within limits to offset the effect on income as a result of the deferral of charges and to finance the additions to the Special Contingent Accounts. 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 member’s norm.

At April 30, 1993, the total creditor positions on which the Fund paid remuneration amounted to SDR 23,876 million (SDR 16,275 million at April 30, 1992). The norm varies for each member and on average amounted to 94.45 percent of quota at April 30, 1993.

Overdue Obligations

At April 30, 1993, ten members were six months or more overdue in settling their financial obligations to the Fund (ten members at April 30, 1992); nine of these members were overdue to the General Department (nine at April 30, 1992). Credit extended to these members through the General Resources Account and the Special Disbursement Account, including SAF loans, amounted to SDR 1,951 million as of April 30, 1993 (SDR 2,463 million as of April 30, 1992). Three of these members (Sierra Leone, Viet Nam, and Zambia) have been settling obligations as they fall due and are to varying degrees formulating and implementing economic adjustment programs that could lead to the settlement of their arrears. On March 18, 1993, Peru fully settled its overdue financial obligations to the Fund. This restored Peru’s eligibility to use the Fund’s general resources.

Overdue repurchases, and charges of the nine members (nine at April 30, 1992) that are six months or more overdue to the General Department were as follows:

RepurchasesCharges
1993199219931992
In millions of SDRs
Total overdue1,7082,1521,0261,122
Overdue for six months or more1,6872,1129881,045
Overdue for three years or more1,4271,682615578

The type and duration of the arrears of these members were as follows:

MemberRepurchasesCharges

and SAF

Interest
TotalLongest Overdue

Obligation
In millions of SDRs
Cambodia10.812.823.6August 1975
Haiti4.81.76.5November 1991
Liberia201.6157.5359.1January 1985
Sierra Leone48.628.076.6January 1987
Somalia95.151.5146.6July 1987
Sudan604.3444.21,048.5July 1984
Viet Nam28.423.251.6February 1984
Zaïre122.123.4145.5February 1991
Zambia592.7283.5876.2July 1986
Total1,708.41,025.82,734.2

In addition, the Republic of Bosnia and Herzegovina and the Federal Republic of Yugoslavia (Serbia/Montenegro) were also six months or more overdue in meeting financial obligations to the Fund. Overdue repurchases and charges due by three successor states to the former Socialist Federal Republic of Yugoslavia amounted to SDR 33.8 million at April 30, 1993.

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. Under the intensified collaborative approach, the Fund has developed the 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 under a successor arrangement after clearance of arrears and when all the requirements for that successor arrangement are met.

Deferred Income and Special Contingent Accounts

It is the policy of the Fund to exclude from current income charges due 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 income. Charges due and accrued by members that are six months or more overdue and that have been deferred amounted to SDR 1,058 million at April 30, 1993 (SDR 1,182 million at April 30, 1992).

Since May 1, 1986, the Fund adopted decisions to give effect to the Principles of Burden Sharing whereby debtor and creditor members share the financial consequences of overdue obligations. An amount equal to deferred charges (excluding special charges) is generated and included in the Fund’s income 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 for the financing of deferred charges and the first Special Contingent Account (SCA-1). The proceeds from the 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.

In view of the existence of protracted overdue obligations, the Fund accumulates precautionary balances, inter alia, in the Special Contingent Accounts. At April 30, 1993, SDR 911.9 million was held in the first and second Special Contingent Accounts (SCA-1 and SCA-2). A total of SDR 435.8 million was held in the SCA-1 (SDR 358.0 million at April 30, 1992) and SDR 476.1 million was held in the SCA-2 at April 30, 1993 (SDR 298.6 million at April 30, 1992). The Special Contingent Accounts are financed by quarterly adjustments to the rate of charge and the rate of remuneration, and balances in the SCA-1 are to be distributed to the members that share the cost of financing it when there are no outstanding overdue charges and repurchases, or at such earlier time as the Fund may decide.

The SCA-2 became effective on July 1, 1990 (as part of the strengthened cooperative strategy) and it is projected to accumulate SDR 1 billion over a period of approximately five years. It is financed by a further adjustment to the rate of charge and to the rate of remuneration, subject to the floor to the rate of remuneration of 80 percent of the SDR interest rate. Resources accumulated in SCA-2 are to safeguard against potential losses arising from 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. Refunds of contributions are to be made after all repurchases under the rights approach have been made, or at such earlier date as the Fund may determine. Purchases following the completion and encashment of a rights accumulation program amount to SDR 621 million.

The allocations to the SCA-1 and SCA-2, the costs of deferred charges and corresponding adjustments to charges and remuneration during financial year 1993 were as follows:

Total Costs

and Allocation
Adjustments to
ChargesRemuneration
In millions of SDRs
Deferred Charges1487474
SCA-1783939
SCA-217763114
Total255102153
Refunds of deferred charges246123123
Settlements in excess of deferred charges984949
Burden-sharing contributions net of refunds15653103

The cumulative charges that have been deferred since May 1, 1986, and have resulted in adjustments to charges and remuneration, amount to SDR 779 million (SDR 878 million at April 30, 1992). The cumulative refunds for the same period amount to SDR 556.8 million (SDR 319.0 million at April 30, 1992).

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. An 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,

1992
Repayment of

Borrowings
April 30,

1993
In millions of SDRs
Enlarged access725350375
Other2,9852,985
Total3,7103503,360

Scheduled repayments of outstanding borrowing by the Fund are as follows:

Financial

Year
In millions

of SDRs
1994300
19951,100
19961,960
Total3,360

Bilateral Arrangements with Japan

In December 1986, the Government of Japan agreed to make available to the Fund SDR 3 billion to help finance the Fund’s support of adjustment programs of member countries. Calls were made by the Fund over a period of four years until this borrowing was fully drawn by the end of March 1991. The final maturity of each call is five years from the initial date of the call. Interest on amounts borrowed is based on the weighted average of six-month domestic interest rates in the countries that make up the currency basket of the SDR.

Enlarged Access

The policy on enlarged access became operational in May 1981. The Fund entered into borrowing agreements under which the lenders made resources equal to SDR 13,475 million available to the Fund to finance purchases by members under the policy. The maturities of borrowing by the Fund under these agreements vary from two to seven years. Interest rates on amounts borrowed vary and are based on Eurocurrency deposit rates and weighted average yields of domestic instruments denominated in the five currencies in the SDR valuation basket.

After full use of the borrowing agreements, the Fund decided in September 1990 that ordinary resources would be substituted to meet commitments of borrowed resources in financing purchases under arrangements approved under the enlarged access policy. Access to the use of credit under the enlarged access policy was terminated on November 11, 1992, following the effectiveness of quota increases under the Ninth General Review.

General Arrangements to Borrow

Under the General Arrangements to Borrow (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 on October 24, 1962 and has been extended through December 25, 1998. At April 30, 1993 the GAB had not been activated.

Borrowed Resources Suspense Accounts

At April 30, 1993, there were no borrowed resources held in suspense pending disbursement.

8. Arrangements in the General Department

At April 30, 1993, 34 arrangements were in effect and undrawn balances under these arrangements amounted to SDR 5,380 million. These arrangements are listed in Schedule 3.

9. Administrative Expenses

In financial year 1993, the Fund incurred administrative expenses for personnel (SDR 189.6 million), travel (SDR 47.4 million), and other administrative needs (SDR 26.3 million). 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 a defined benefit Staff Retirement Plan (“the Plan”). All contributions to the Plan and all other assets, liabilities, and income of the Plan are administered separately from 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 their 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 Fund’s contributions, including those for cost of living adjustments and for experience gains and losses, are spread over the expected future working lifetimes of the participants in the Plan and are determined annually as a percent of pensionable remuneration of the participants. The funding and cost of the Plan for the year ended April 30, 1993 is based upon an actuarial valuation at April 30, 1991. The retirement plan is administered by the Staff Retirement Plan and Supplemental Retirement Benefit Plan.

The Fund’s current policy is to account for the cost of retirement benefits other than pensions, such as contribution to the medical and group life insurance plans on a pay-as-you-go basis.

Schedule 1 QUOTAS, FUND’S HOLDINGS OF CURRENCIES, MEMBERS’ USE OF FUND RESOURCES, AND RESERVE TRANCHE POSITIONS as at April 30, 1993

(In thousands of SDRs)

QuotasFund’s Holdings

of Curreincies1
Use of

Fund

Resources
Reserve

Tranche

Positions
TotalPercent

of Quota
Afghanistan120,400115,48895.94,928
Albania35,30048,425137.213,1255
Algeria914,4001,433,711156.8519,3133
Angola207,300207,445100.1
Antigua and Barbuda8,5008,499100.01
Argentina1,537,1003,971,686258.42,434,560
Armenia67,50067,500100.05
Australia2,333,2001,921,48382.4411,735
Austria1,188,300802,32767.5385,986
Azerbaijan117,000117,000100.010
Bahamas, The94,90088,66393.46,239
Bahrain82,80042,94151.939,868
Bangladesh392,500419,424106.926,95356
Barbados48,90085,723175.336,84025
Belarus280,400280,400100.020
Belgium3,102,3002,534,66681.7567,685
Belize13,50010,58778.42,914
Benin45,30043,24495.52,060
Bhutan4,5003,93087.3570
Bolivia126,200122,99997.55,6608,875
Botswana36,60021,81759.614,790
Brazil2,170,8002,670,580123.0499,367
Bulgaria464,900886,075190.6459,90038,730
Burkina Faso44,20037,00183.77,201
Burundi57,20051,34689.85,860
Cambodia25,00030,325121.36,250926
Cameroon135,100169,840125.735,038318
Canada4,320,3003,614,44383.7705,888
Cape Verde7,0006,999100.01
Central African Republic41,20041,515100.840694
Chad41,30041,02699.3275
Chile621,7001,098,525176.7476,83312
China3,385,2002,870,41884.8514,786
Colombia561,300494,15688.067,145
Comoros6,5005,99892.3504
Congo57,90061,431106.14,000469
Costa Rica119,000169,568142.559,2808,725
Côte d’Ivoire238,200417,135175.1178,96030
Croatia, Republic of261,600288,069110.126,458
Cyprus100,00074,56174.625,453
Czech Republic589,6001,440,276244.3850,6763
Denmark1,069,900745,54969.7324,355
Djibouti11,5009,38881.62,112
Dominica6,0006,085101.4939
Dominican Republic158,800246,161155.087,361
Ecuador219,200263,267120.161,16317,125
Egypt678,400771,862113.8147,20053,750
El Salvador125,600125,603100.0
Equatorial Guinea24,30024,309100.0
Estonia46,50059,288127.512,7883
Ethiopia98,30091,33692.96,978
Fiji51,10041,17080.69,934
Finland861,800622,29872.2239,504
France7,414,6005,642,92676.11,772,021
Gabon110,300161,016146.050,76052
Gambia, The22,90021,41893.51,485
Georgia111,000111,000100.010
Germany8,241,5005,268,82663.92,972,759
Ghana274,000360,189131.5103,56017,375
Greece587,600470,74680.1116,854
Grenada8,5008,501100.0
Guatemala153,800164,996107.311,190
Guinea78,70078,671100.031
Guinea-Bissau10,50010,500100.02
Guyana67,200116,702173.749,500
Haiti44,10059,056133.915,00045
Honduras95,000169,571178.574,570
Hungary754,8001,566,380207.5867,67456,097
Iceland85,30074,83287.710,470
India3,055,5006,259,309204.93,416,405212,603
Indonesia1,497,6001,303,20587.0194,396
Iran, Islamic Republic of1,078,5001,078,508100.0
Iraq504,000504,013100.0
Ireland525,000361,85268.9163,152
Israel666,200844,844126.8178,640
Italy4,590,7002,867,29962.51,723,402
Jamaica200,900444,728221.4243,763
Japan8,241,5005,086,44561.73,155,070
Jordan121,700201,317165.479,6192
Kazakhstan247,500247,500100.05
Kenya199,400208,933104.821,73812,218
Kiribati4,0004,001100.0
Korea799,600480,53360.1319,075
Kuwait995,200818,38382.2176,826
Kyrgyzstan64,50064,500100.05
Lao People’s Democratic Rep.39,10039,100100.0
Latvia91,500126,575138.335,0755
Lebanon78,70059,86976.118,833
Lesotho23,90020,39385.33,512
Liberia71,300272,836382.7201,55428
Libya817,600498,62861.0318,980
Lithuania103,500133,975129.430,4755
Luxembourg135,500110,57781.624,931
Macedonia, former Yugoslav Rep. of33,5005,015
Madagascar90,400100,468111.110,0682
Malawi50,90051,795101.83,1122,224
Malaysia832,700604,04072.5228,666
Maldives5,5004,62184.0879
Mali68,90070,851102.810,6378,688
Malta67,50042,93763.624,586
Marshall Islands2,5002,500100.01
Mauritania47,50047,509100.0
Mauritius73,30067,08991.56,216
Mexico1,753,3005,906,211336.94,152,893
Moldova90,000103,500115.013,5005
Mongolia37,10050,850137.113,7505
Morocco427,700695,243162.6297,85430,313
Mozambique84,00084,000100.07
Myanmar184,900184,903100.0
Namibia99,60099,593100.09
Nepal52,00046,27789.05,730
Netherlands3,444,2002,647,06476.9797,251
New Zealand650,100543,46583.6106,636
Nicaragua96,100113,140117.717,030
Niger48,30044,21991.64,4798,561
Nigeria1,281,6001,281,591100.068
Norway1,104,600669,55160.6435,054
Oman119,40080,14867.139,364
Pakistan758,2001,163,374153.4405,22664
Panama149,600214,572143.476,82111,861
Papua New Guinea95,300138,101144.942,83542
Paraguay72,10055,16376.516,940
Peru466,1001,118,077239.9651,944
Philippines633,4001,459,867230.5913,55387,104
Poland988,5001,507,977152.6596,60077,125
Portugal557,600335,78960.2221,823
Qatar190,500154,08480.936,417
Romania754,1001,505,005199.6750,900
Russian Federation4,313,1005,031,746116.7719,000702
Rwanda59,50049,72783.69,791
St. Kitts and Nevis6,5006,48899.815
St. Lucia11,00011,000100.01
St. Vincent6,0005,50091.7500
San Marino10,0007,65076.52,352
Sao Tome and Principe5,5005,503100.1
Saudi Arabia5,130,6004,396,85585.7733,751
Senegal118,900127,195107.09,3631,075
Seychelles6,0005,19786.6804
Sierra Leone57,900106,480183.948,59124
Singapore357,600247,43969.2110,213
Slovak Republic257,400598,229232.4340,824
Slovenia, Republic of150,500152,852101.615,22112,875
Solomon Islands7,5006,96792.9538
Somalia44,200140,907318.896,701
South Africa1,365,4001,365,355100.046
Spain1,935,4001,135,53058.7799,876
Sri Lanka303,600283,41493.420,189
Sudan169,700773,976456.1604,25611
Suriname49,30049,301100.0
Swaziland36,50033,52391.83,002
Sweden1,614,0001,162,63772.0451,366
Switzerland2,470,4001,895,42276.7575,004
Syrian Arab Republic139,100139,103100.05
Tajikistan40,000
Tanzania146,900136,93993.29,975
Thailand573,900342,97759.8230,930
Togo54,30061,755113.77,698248
Tonga5,0003,81876.41,184
Trinidad and Tobago246,800425,536172.4178,7449
Tunisia206,000413,278200.6207,30025
Turkey642,000609,72895.032,275
Turkmenistan48,00048,000100.05
Uganda133,900133,907100.0
Ukraine997,300997,300100.010
United Arab Emirates392,100239,60061.1152,501
United Kingdom7,414,6006,008,48281.01,406,132
United States26,526,80017,877,29067.48,653,476
Uruguay225,300244,042108.334,11015,375
Uzbekistan199,500199,500100.05
Vanuatu12,50010,01280.12,488
Venezuela1,951,3003,906,240200.22,099,888144,950
Viet Nam176,800205,195116.128,3955
Western Samoa8,5007,83792.2664
Yemen, Republic of176,500176,490100.013
Zaïre291,000475,807163.5184,807
Zambia270,300863,011319.3592,72919
Zimbabwe261,300363,747139.2102,50060
Total144,606,200138,828,27524,558,08830,264,339

Includes nonnegotiable, non-interest-bearing notes that members are entitled to issue in substitution for currencies. These notes are encashable by the Fund on demand.

Less than SDR 500.

Includes nonnegotiable, non-interest-bearing notes that members are entitled to issue in substitution for currencies. These notes are encashable by the Fund on demand.

Less than SDR 500.

Schedule 2 SCHEDULE OF REPURCHASES AND REPAYMENTS OF LOANS as at April 30, 1993

(In thousands of SDRs)

Financial Year

Ending April 30
General Resources

Account1
Special

Disbursement

Account
19945.150.5692135,586
19954,088,233222,336
19964,780,904321,992
19973,992,707345,129
19982,543,815328,619
19991,511,346259,176
20001,102,643161,055
2001699,57761,399
2002459,23736,388
2003310,9957,572
Total24,640,0261,879,252

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, which are subject to repurchase, amounting to SDR 4.6 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, which are subject to repurchase, amounting to SDR 4.6 million.

Schedule 3 STATUS OF ARRANGEMENTS as at April 30, 1993

(In thousands of SDRs)

MemberDate of ArrangementExpirationTotal

Amount

Agreed
Undrawn

Balance
GENERAL RESOURCES ACCOUNT
STAND-BY ARRANGEMENTS
AlbaniaAugust 26, 1992August 25, 199320,0006,875
BarbadosFebruary 7, 1992May 31, 199323,8909,220
BrazilJanuary 29, 1992August 31, 19931,500,0001,372,500
Costa RicaApril 19, 1993February 18, 199421,04021,040
Czech RepublicMarch 17, 1993March 16, 1994177,000107,000
EgyptMay 17, 1991May 31, 1993234,40087,200
EstoniaSeptember 16, 1992September 15, 199327,90015,113
GuatemalaDecember 18, 1992March 17, 199454,00054,000
IndiaOctober 31, 1991June 30, 19931,656,000231,000
JordanFebruary 26, 1992August 25, 199344,40011,100
LatviaSeptember 14, 1992September 13, 199354,90019,825
LithuaniaOctober 21, 1992September 20, 199356,92526,450
PanamaFebruary 24, 1992December 23, 199393,68058,830
PolandMarch 8, 1993March 7, 1994476,000476,000
UruguayJuly 1, 1992June 30, 199350,00034,025
TOTAL STAND-BY ARRANGEMENTS4,490,1352,530,178
EXTENDED ARRANGEMENTS
ArgentinaMarch 31, 1992March 30, 19952,483,1501,182,163
HungaryFebruary 20, 1991February 19, 19941,114,000556,765
JamaicaDecember 11, 1992December 10, 1995109,125100,125
MexicoMay 26, 1989May 25, 19933,729,600466,200
PeruMarch 18, 1993March 17, 19961,018,100375,414
ZimbabweSeptember 11, 1992September 10, 1995114,60083,300
TOTAL EXTENDED ARRANGEMENT8,568,5752,763,967
TOTAL GENERAL RESOURCES ACCOUNT13,058,7105,294,145
SPECIAL DISBURSEMENT ACCOUNT
STRUCTURAL ADJUSTMENT FACILITY
ComorosJune 21, 1991June 20, 19943,1502,250
EthiopiaOctober 28, 1992October 27, 199549,42035,300
RwandaApril 24, 1991April 23, 199430,66021,900
TOTAL STRUCTURAL ADJUSTMENT FACILITY83,23059,450
SAF RESOURCES COMMITTED UNDER ESAF PROGRAMS1
BeninJanuary 25, 1993January 24, 19967,0003,500
BoliviaJuly 27, 1988September 10, 199345,350
Burkina FasoMarch 31, 1993March 30, 199615,80011,060
Equatorial GuineaFebruary 3, 1993February 2, 19962,9501,475
GuyanaJuly 13, 1990December 20, 199334,4404,920
MalawiJuly 15, 1988May 31, 199326,040
MaliAugust 28, 1992August 27, 199510,1605,080
MauritaniaDecember 9, 1992December 8, 19943,410
TogoMay 31, 1989May 19, 199319,200
UgandaApril 17, 1989November 24, 199319,920
184,27026,035
TOTAL SPECIAL DISBURSEMENT ACCOUNT267,50085,485
TOTAL GENERAL DEPARTMENT13,326,2105,379,630

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

STATEMENTS OF ALLOCATIONS AND HOLDINGS as at April 30, 1993 and 1992

(In thousands of SDRs)

19931992
ALLOCATIONS
Net cumulative allocations of SDRs21,433,33021,433,330
Overdue charges49,86037,979
TOTAL ALLOCATIONS21,483,19021,471,309
HOLDINGS
Participants with holdings above allocations
Allocations6,663,53710,486,306
Net receipts of SDRs2,196,1476,063,552
8,859,68416,549,858
Participants with holdings below allocations
Allocations14,769,79310,947,024
Net uses of SDRs10,124,2056,760,012
4,645,5884,187,012
Total holdings of participants13,505,27220,736,870
General Resources Account7,930,129680,338
Holdings of SDRs by Prescribed Holders47,78954,101
TOTAL HOLDINGS21,483,19021,471,309
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
TreasurerManaging Director

STATEMENTS OF RECEIPT AND USE for the years ended April 30, 1993 and 1992

(In thousands of SDRs)

ParticipantsGeneral

Resources

Account
Prescribed

Holders
Total
19931992
Total holdings at beginning of the year20,736,870680,33854,10121,471,30921,463,626
Receipt of SDRs
Transfers among participants and prescribed holders
Transactions by agreement4,989,32466,6595,055,9835,018,750
Operations
Loans2,766,9792,766,97911,350
Settlement of financial obligations2,772,49170,8922,843,383228,938
Fund-related operations
Subsidy payments120120194
SAF/ESAF loans27,74527,74552,385
SAF repayments and interest12,59912,5993,367
Trust Fund repayments and interest65654
Special charges on SAF, ESAF, and Trust Fund254254118
ESAF contributions and payments6,64040,49147,13187,458
ESAF repayments and interest6,0366,0364,996
Net interest on SDRs333,5493,628337,177440,537
Transfers from participants to General Resources Account
Repurchases583,122583,1221,838,436
Charges1,797,8111,797,8111,882,573
Quota payments12,643,19212,643,19211,350
Interest on SDRs127,881127,88157,467
Assessment on SDR allocation2,8342,8344,053
Adjustments55400
Transfers from General Resources Account to participants and prescribed holders
Purchases5,768,5245,768,5241,881,392
Repayments of Fund borrowings350,000350,000500,000
Interest on Fund borrowings91,81291,81276,704
In exchange for currencies of other members Acquisitions to pay charges699,354699,354252,626
Remuneration922,414922,4141,008,574
Other
Refunds and adjustments72,95072,95088,925
Total receipts18,801,90215,154,845200,62434,157,37113,450,597
Use of SDRs
Transfers among participants and prescribed holders
Transactions by agreement4,889,065166,9185,055,9835,018,750
Operations
Loans2,766,9792,766,97911,350
Settlement of financial obligations2,837,8705,5132,843,383228,938
Fund-related operations
Subsidy payments120120194
SAF/ESAF loans27,74527,74552,385
SAF repayments and interest12,59912,5993,367
Trust Fund repayments and interest65654
Special charges on SAF, ESAF, and Trust Fund254254118
ESAF contributions and payments40,4916,64047,13187,458
ESAF repayments and interest6,0366,0364,996
Transfers from participants to General Resources Account
Repurchases583,122583,1221,838,436
Charges1,797,8111,797,8111,882,573
Quota payments12,643,19212,643,19211,350
Assessment on SDR allocation2,8342,8344,053
Adjustments55400
Transfers from General Resources Account to participants and prescribed holders
Purchases5,768,5245,768,5241,881,392
Repayments of Fund borrowings350,000350,000500,000
Interest on Fund borrowings91,81291,81276,704
In exchange for currencies of other members Acquisitions to pay charges699,354699,354252,626
Remuneration922,414922,4141,008,574
Other
Refunds and adjustments72,95072,95088,925
Charges paid in the SDR Department
Net charges due465,058465,058498,004
Charges not paid when due(36,307)(36,307)(35,794)
Settlement of unpaid charges24,42624,42628,111
Total uses26,033,5007,905,054206,93634,145,49013,442,914
Total holdings at end of the year13,505,2727,930,12947,78921,483,19021,471,309
The accompanying note is an integral part of the financial statements.
The accompanying note is an integral part of the financial statements.

NOTE TO THE FINANCIAL STATEMENTS April 30, 1993 and 1992

SDR Department

All transactions and operations involving SDRs are conducted through the SDR Department. Each member of the Fund can become a participant in the SDR Department. At April 30, 1993, all members of the Fund were participants in 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, upon termination of participation or liquidation of the SDR Department, the Fund will provide to holders the currencies received from the withdrawing participants. The Fund is empowered to prescribe certain official entities as holders of SDRs: at April 30, 1993, fifteen institutions have been prescribed as holders. These prescribed holders do not receive allocations and cannot use or receive SDRs in designation.

Uses of SDRs

The Fund ensures, by designating participants to provide freely usable currency in exchange for SDRs, that a participant can use its SDRs to obtain an equivalent amount of 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 obligated 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 this limit. Participants and prescribed holders can also use and receive SDRs in transactions and operations by agreement among themselves. Participants can also use SDRs in transactions and operations involving the General Resources Account, such as the payment of charges and repurchases.

Interest, Charges, and Assessment

Interest is paid on 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 to meet the payment of interest. If sufficient SDRs are not received, because charges are overdue, additional SDRs are temporarily created. At April 30, 1993, charges of SDR 49.9 million were overdue (SDR 38.0 million at April 30, 1992). At April 30, 1993, ten members (ten members at April 30, 1992) were six months or more overdue in meeting financial obligations to the Fund and six of these members were six months or more overdue to the SDR Department (six members at April 30, 1992).

Unpaid charges of these members to the SDR Department were as follows:

19931992
In millions of SDRs
Total overdue charges47.537.2
Overdue for six months or more41.230.5
Overdue for three years or more9.98.0

The duration of arrears of these members were as follows:

MemberTotalLongest Overdue

Obligation
In millions of SDRs
Cambodia12.4November 1984
Haiti1.4November 1991
Iraq13.5November 1990
Liberia9.2August 1988
Somalia2.3February 1991
Sudan8.7November 1990
Total47.5

The rate of interest on the SDR 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 on all participants in proportion to their net cumulative allocation.

Participants in the SDR Department

On January 1, 1993, the former Czech and Slovak Federal Republic ceased to exist and the Fund determined that the Czech Republic and the Slovak Republic would be the successors to the assets and liabilities of the former Czech and Slovak Federal Republic in the Fund for respectively 69.61 percent and 30.39 percent of the share of the former Czech and Slovak Federal Republic. Simultaneously, each successor member had satisfied the conditions for membership and became members of the Fund and participants in the SDR Department.

On December 14, 1992, the membership of the former Socialist Federal Republic of Yugoslavia and its participation in the SDR Department were terminated and the Fund determined that the respective shares of the successor states in the SDR allocation of the former Socialist Federal Republic of Yugoslavia were as follows:

ShareSDR Allocation
In percentIn millions
Republic of Bosnia and Herzegovina13.2020.5
Republic of Croatia28.4944.2
Former Yugoslav Republic of Macedonia5.408.4
Republic of Slovenia16.3925.4
Federal Republic of Yugoslavia (Serbia/Montenegro)36.5256.7
Total100.00155.2

Each successor may formally succeed to the membership of the former Socialist Federal Republic of Yugoslavia including its participation in the SDR Department after certain conditions are met, including the settlement of overdue obligations in the Fund, and after each has indicated its agreement to its share in the assets and liabilities of the former Socialist Federal Republic of Yugoslavia in the Fund as determined by the Fund. Once membership is effective, the successor will be considered to have continued, for its proportionate share, the membership of the former Socialist Federal Republic of Yugoslavia. As of April 30, 1993, the Republic of Croatia, the former Yugoslav Republic of Macedonia, and the Republic of Slovenia had satisfied the conditions for membership and, therefore, became members of the Fund and participants in the SDR Department effective December 14, 1992. Accrued charges of SDR 2.2 million were owed and outstanding as at April 30, 1993 from the two remaining successors.

ENHANCED STRUCTURAL ADJUSTMENT FACILITY TRUST

COMBINED BALANCE SHEETS as at April 30, 1993 and 1992

(In thousands of SDRs)

(Note 1)

Loan

Account
Reserve

Account
Subsidy

Account
Combined

1993
Combined

1992
ASSETS
Loans1,804,5471,804,5471,263,790
Investments (Note 2)25,795658,897722,2611,406,9531,163,755
Accrued interest2,9283,7382,3819,04742,083
Currencies9927
Accrued account transfers16,03510(16,045)
TOTAL ASSETS1,849,305662,645708,6063,220,5562,469,655
RESOURCES AND LIABILITIES
Resources662,645606,2551,268,9001,026,445
Borrowing (Note 4)1,827,587101,3651,928,9521,423,760
Accrued interest21,67498622,66019,401
Other liabilities444449
TOTAL RESOURCES AND LIABILITIES1,849,305662,645708,6063,220,5562,469,655
The accompanying notes and schedules are an integral part of the financial statements.
The accompanying notes and schedules are an integral part of the financial statements.
/s/ David Williams/s/ M. Camdessus
TreasurerManaging Director

COMBINED INCOME STATEMENTS for the years ended April 30, 1993 and 1992

(In thousands of SDRs)

(Note 1)

Loan

Account
Reserve

Account
Subsidy

Account
Combined

1993
Combined

1992
INCOME
Investment income1,83734,94841,04477,82982,529
Interest on loans8,0388,0385,551
9,87534,94841,04485,86788,080
EXPENSE
Interest expense71,1641,40772,57158,369
Exchange valuation loss (gain)81031112(62)
Other expenses444460
71,2161031,40872,72758,367
NET INCOME (LOSS)(61,341)34,84539,63613,14029,713
The accompanying notes and schedules are an integral part of the financial statements.
The accompanying notes and schedules are an integral part of the financial statements.

COMBINED STATEMENTS OF CHANGES IN RESOURCES for the years ended April 30, 1993 and 1992

(In thousands of SDRs)

(Note 1)

Loan

Account
Reserve

Account
Subsidy

Account
Combined

1993
Combined

1992
Balance, beginning of the year522,194504,2511,026,445778,466
Contributions (Note 3)125,545125,545135,940
Transfers from Special Disbursement Account103,770103,77082,326
Subsidy Account transfers63,177(63,177)
Loan Account transfers(1,836)1,836
Net income (loss)(61,341)34,84539,63613,14029,713
Balance, end of the year662,645606,2551,268,9001,026,445
The accompanying notes and schedules are an integral part of the financial statements.
The accompanying notes and schedules are an integral part of the financial statements.

NOTES TO THE FINANCIAL STATEMENTS April 30, 1993 and 1992

Purpose

The Enhanced Structural Adjustment Facility Trust (“the Trust”) for which the Fund is Trustee, was established in December 1987 to provide loans on concessional terms to qualifying low-income developing members. The resources of the 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 of the 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 from borrowing and principal and interest payments on loans extended by the Trust. Resources of the Account are committed to qualifying members for a three-year period, upon approval by the Trustee, in support of the member’s macroeconomic and structural adjustment programs. Interest on the outstanding loan balances is currently set at the rate of one ½ of 1 percent per annum. At April 30, 1993, SDR 1,804.5 million in loans had been disbursed (SDR 1,263.8 million at April 30, 1992).

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 Account or in the Loan Account; receipts of overdue principal or interest payments under Loan Account loans or interest under Loan Account loans when 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 borrowing 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 donations to the Trust, including transfers of net earnings from administered accounts; the proceeds of loans made to the Trust for the Subsidy Account; and the net earnings from investment of Account resources.

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 Trust and the interest due on resources borrowed for Loan Account loans.

1. Accounting Practices

The accounts of the Trust are expressed in terms of the SDR. SDRs are interest-earning assets allocated to participants in the Fund’s SDR Department. 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 currencies. The Fund’s procedures require that the SDR valuation basket be reviewed every five years, and that it include the currencies of the members having the largest exports of goods and services during the five-year period ending one year prior to the date of the revisions. The SDR valuation basket was last reviewed in financial year 1991. The currencies comprising the basket and their amounts in the basket were as follows:

CurrencyAmount
U.S. dollar0.572
Deutsche mark0.453
Japanese yen31.8
French franc0.800
Pound sterling0.0812

Members are not obligated to maintain the SDR value of their currencies held in the Accounts of the Trust.

The Accounts of the Trust are maintained on the accrual basis and, accordingly, income is recognized as it is earned and expenses are recorded as they are incurred. The expenses of conducting the business of the 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 Trust are invested pending their use in operations. Investments are 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 contributions of resources for the Subsidy Account on such terms and conditions as agreed between the Trust and the contributors. Cumulative contributions received as at April 30, 1993 amounted to SDR 624.0 million (SDR 498.4 million at April 30, 1992) and are listed in Schedule 1.

4. Borrowing

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

The following summarizes the borrowing agreements concluded as at April 30, 1993 (in thousands of SDRs):

Amount

Agreed
Amount

Borrowed
Amount

Available
Loan Account4,945,0001,827,5873,117,413
Subsidy Account101,365101,365

At the end of financial year 1993, borrowing agreements had been concluded for the Loan Account and the Subsidy Account amounting to SDR 4,945 million and SDR 101 million, respectively. Amounts available under these agreements at April 30, 1993 were SDR 3,117 million for the Loan Account and nil for the Subsidy Account.

Scheduled repayments of outstanding borrowing are shown in Scheduled 2.

5. Commitments Under Loan Arrangements

At April 30, 1993, resources of the Loan Account were committed to members under twenty loan arrangements and undrawn balances under those arrangements amounted to SDR 753.8 million. At April 30, 1992, undrawn balances under sixteen loan arrangements amounted to SDR 876.7 million. Loan arrangements are listed in Schedule 3. Scheduled repayments of outstanding loans are shown in Schedule 4.

Schedule 1 CONTRIBUTIONS TO THE SUBSIDY ACCOUNT1 as at April 30, 1993

(In thousands of SDRs)

ContributorCumulative

Contribution
Austria18,874
Belgium30,541
Canada13,700
Denmark27,028
Finland22,684
Germany31,030
Greece10,935
Iceland700
Italy103,599
Japan159,152
Korea27,700
Luxembourg2,512
Netherlands25,347
Norway16,931
Sweden73,302
United Kingdom48,313
United States11,602
Total contributions received623,950

The Subsidy Account also benefits from the net investment earnings of the proceeds of loans or investments, which amounted to SDR 101.4 million at April 30, 1993.

The Subsidy Account also benefits from the net investment earnings of the proceeds of loans or investments, which amounted to SDR 101.4 million at April 30, 1993.

Schedule 2 SCHEDULE OF REPAYMENTS OF BORROWING as at April 30, 1993

(In thousands of SDRs)

Periods of Repayment

Financial Year

Ending April 30
Loan

Account
Subsidy

Account
19941,465
199556,739
1996130,771
1997211,583
1998302,221
1999364,05260,000
2000308,77920,000
2001234,74710,000
2002153,93410,000
200363,2961,365
Total1,827,587101,365

Schedule 3 STATUS OF LOAN ARRANGEMENTS1 as at April 30, 1993

(In thousands of SDRs)

MemberDate of

Arrangement
ExpirationAmount AgreedUndrawn Balance
ESAF

loan

account
Structural

adjustment

facility
TotalESAF

loan

account
Structural

adjustment

facility
Total
BangladeshAug. 10, 1990Sep. 13, 1993345,000345,000
BeninJan. 25, 1993Jan. 24, 199639,9507,00046,95035,6253,50039,125
BoliviaJuly 27, 1988Sep. 10, 1993117,91045,350163,26013,60513,605
Burkina FasoMar. 31, 1993Mar. 30, 199632,82015,80048,62028,72011,06039,780
BurundiNov. 13, 1991Nov. 12, 199442,70042,70023,49023,490
Equatorial GuineaFeb. 03, 1993Feb. 02, 19969,9302,95012,8808,6451,47510,120
GuineaNov. 06, 1991Nov. 05, 199457,90057,90040,53040,530
GuyanaJuly 13, 1990Dec. 20, 199347,08434,44081,5243,9364,9208,856
HondurasJuly 24, 1992Jul. 23, 199540,68040,68033,90033,900
LesothoMay 22, 1991May 21, 199418,12018,1207,5507,550
MalawiJuly 15, 1988May 31, 199340,92026,04066,9605,5805,580
MaliAug. 28, 1992Aug. 27, 199550,80010,16060,96045,7205,08050,800
MauritaniaDec. 09, 1992Dec. 08, 199430,4903,41033,90025,42525,425
MozambiqueJune 01, 1990Sep. 30, 1993100,650100,65015,25015,250
NepalOct. 05, 1992Oct. 04, 199533,57033,57027,97527,975
Sri LankaSep. 13, 1991Sep. 12, 1994336,000336,000168,000168,000
TanzaniaJuly 29, 1991July 28, 1994181,900181,90096,30096,300
TogoMay 31, 1989May 19, 199326,88019,20046,0807,6807,680
UgandaApr. 17, 1989Nov. 24, 1993199,20019,920219,12019,92019,920
ZimbabweSep. 11, 1992Sep. 10, 1995200,600200,600145,900145,900
Total1,953,104184,2702,137,374753,75126,035779,786

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. The Saudi Fund for Development may also provide resources to support arrangements under the enhanced structural adjustment facility through loans to qualifying members in association with loans under the enhanced structural adjustment facility. As at April 30, 1993, SDR 19.5 million in such associated loans had been disbursed.

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. The Saudi Fund for Development may also provide resources to support arrangements under the enhanced structural adjustment facility through loans to qualifying members in association with loans under the enhanced structural adjustment facility. As at April 30, 1993, SDR 19.5 million in such associated loans had been disbursed.

Schedule 4 SCHEDULE OF REPAYMENTS OF LOANS as at April 30, 1993

(In thousands of SDRs)

Periods of Repayment

Financial Year

Ending April 300
Loan

Account
19941,465
199540,534
1996103,691
1997196,737
1998293,550
1999359,444
2000320,375
2001257,219
2002164,173
200367,359
Total1,804,547

ENHANCED STRUCTURAL ADJUSTMENT FACILITY ADMINISTERED ACCOUNTS

BALANCE SHEETS as at April 30, 1993 and 1992

(In thousands of SDRs)

(Note 1)

19931992
AustriaBelgiumGreeceAustriaBelgiumGreece
ASSETS
Investments (Note 2)60,000100,01035,00060,000100,00935,000
Accrued interest receivable813676691,116304
Advance Payments to ESAF Subsidy Account92131
TOTAL ASSETS60,100100,15435,06760,669101,12535,304
RESOURCES AND LIABILITIES
Resources2568971238
Deposits (Note 3)60,000100,00035,00060,000100,00035,000
Accrued interest on deposits1001546510115466
TOTAL RESOURCES AND LIABILITIES60,100100,15435,06760,669101,12535,304
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
TreasurerManaging Director

INCOME STATEMENTS for the years ended April 30, 1993 and 1992

In thousands of SDRs)

(Note 1)

19931992
AustriaBelgiumGreeceAustriaBelgiumGreece
Investment income3,5055,8342,0674,8087,5492,763
Interest expense on deposits300500175301501175
NET INCOME3,2055,3341,8924,5077,0482,588
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

STATEMENTS OF CHANGES IN RESOURCES for the years ended April 30, 1993 and 1992

(In thousands of SDRs)

(Note 1)

19931992
AustriaBelgiumGreeceAustriaBelgiumGreece
Balance, beginning of the year5689712381,6212,5221,084
Net income3,2055,3341,8924,5077,0482,588
Transfers to Enhanced Structural

Adjustment Facility Trust

Subsidy Account
(3,773)(6,305)(2,128)(5,560)(8,599)(3,434)
Balance, end of the year2568971238
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

SAUDI FUND FOR DEVELOPMENT SPECIAL ACCOUNT

STATEMENTS OF RECEIPT AND USE OF RESOURCES

(In thousands of SDRs)

(Note 1)

For the Year

Ended

April 30, 1993
July 31, 1991 to

April 30, 1992
RECEIPT OF RESOURCES
Transfers from Saudi Fund for Development19,50017,500
Receipts of interest on associated loans11421
Accrued interest on associated loans3229
19,64617,550
USE OF RESOURCES
Associated loans (Note 4)19,50017,500
Payment of interest on transfers11421
Accrued interest on transfers3229
19,64617,550
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

NOTES TO THE FINANCIAL STATEMENTS April 30, 1993 and 1992

Purpose

The Administered Accounts for Austria, Belgium, and Greece were established for the administration of resources deposited in the accounts. The difference between interest earned by the Administered Accounts and the interest on deposits due is transferred to the Subsidy Account of the Enhanced Structural Adjustment Facility Trust.

The Saudi Fund for Development (SFD) Special Account was established at the request of the SFD for the disbursement of amounts under loans made by the SFD to recipient countries in association with loans (associated loans) under the enhanced structural adjustment facility (ESAF), simultaneously with ESAF disbursements, and to receive payments of loan charges and repayments of principal due to the SFD under associated loans to be transferred to the SFD. The Fund acts as agent of the SFD in that respect.

The resources of each Administered Account 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

The accounts of the Administered Accounts are expressed in terms of the SDR. SDRs are interest-earning assets allocated to participants in the Fund’s SDR Department. 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 currencies. The Fund’s procedures require that the SDR valuation basket be reviewed every five years, and that it include the currencies of the members having the largest exports of goods and services during the five-year period ending one year prior to the date of the revisions. The SDR valuation basket was last reviewed in financial year 1991. The currencies comprising the basket and their amounts in the basket were as follows:

CurrencyAmount
U.S. dollar0.572
Deutsche mark0.453
Japanese yen31.8
French franc0.800
Pound sterling0.0812

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.

2. Investments

The resources of the Administered Accounts for Austria, Belgium, and Greece are invested in SDR-denominated deposits and valued at costs, which approximate market value.

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 is to be repaid in ten equal semiannual installments beginning five and a 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 bears interest at a rate of ½ of 1 percent per annum.

The Administered Account Belgium was established on July 27, 1988 for the administration of resources deposited in the account by the National Bank of Belgium. The deposits, totaling SDR 100 million each, had an initial maturity of six months and are 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 bear interest at a rate of ½ of 1 percent per annum.

The Administered Account Greece was established on November 30, 1988 for the administration of resources deposited in the account by the Bank of Greece. The deposit totaling SDR 35 million is to be repaid in ten equal semiannual installments beginning five and a 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 bears interest at a rate of ½ of 1 percent per annum.

4. Associated Loans

SFD will provide resources up to the equivalent of SDR 200 million to support arrangements under the ESAF through loans to qualifying members in association with loans under the ESAF. Funds become available under an associated loan after a bilateral agreement between the SFD and the recipient country has been effected and when the recipient country satisfies the requisites and procedures for all or part of the loan amount. Amounts denominated in SDRs, for disbursement to a recipient country under an associated loan are placed by the SFD in the Special Account for disbursement by the Fund simultaneously with disbursements under an ESAF arrangement. These loans are repayable in ten equal 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 on the outstanding balance is currently set at the rate of ½ of 1 percent per annum.

OTHER ADMINISTERED ACCOUNTS ESTABLISHED AT THE REQUEST OF MEMBERS

BALANCE SHEETS as at April 30, 1993 and 1992

(In thousands of U.S. dollars)

(Note 1)

Administered

Account—

Japan
Administered

Technical

Assistance

Account—

Japan
Administered

Account—

Guyana
Voluntary

Contribution

Account—

Bolivia
19931992199319921993199219931992
ASSETS
Investments (Note 2)100,20097,0004,7941,07535210
Currency deposit9250352979
TOTAL ASSETS100,29297,0504,7941,075352989
RESOURCES
TOTAL RESOURCES100,29297,0504,7941,075352989
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
TreasurerManaging Director

INCOME STATEMENTS AND CHANGES IN RESOURCES

(In thousands of U.S. dollars)

(Note 1)

For the Years Ended April 30, 1993 and 1992
Administered

Account—

Japan
Administered

Technical

Assistance Account—

Japan
From May 1, 1992 to December 31, 1992 and for the Year Ended April 30, 1992
Administered

Account—

Guyana
Voluntary

Contribution Account—

Bolivia
19931992199319921993199219931992
Resource balance, beginning of the year97,05086,7111,0751,0593523219892,004
Contributions received7,7528,7602,326
Income earned on investments3,2424,58799641524855
Net exchange valuation gain17
100,29299,0509,9343,4493683529972,059
Payments to beneficiaries2,0005,1402,3743689971,070
Resource balance, end of the year100,29297,0504,7941,075352989
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

NOTES TO THE FINANCIAL STATEMENTS April 30, 1993 and 1992

Purpose

At the request of members, the Fund has established special purpose accounts to administer contributed resources, and to perform financial and technical services consistent with the purposes of the Fund. The assets of each 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.

Administered Account—Japan

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 Account are to be disbursed as specified by Japan and to members designated by Japan. At April 30, 1993, and 1992, cumulative contributions amounted to $97.4 million, of which $14 million has been disbursed.

Administered Technical Assistance Account—Japan

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 are to be used with the approval of Japan to assist members in resolving debt-related difficulties. Disbursements can also be made from the Account to the General Resources Account to reimburse the Fund for qualifying technical assistance projects. At April 30, 1993, cumulative contributions received by the Account amounted to $13.6 million, ($4.8 million at April 30, 1992) of which $9 million has been disbursed ($3.9 million at April 30, 1992).

Administered Account—Guyana

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. Cumulative contributions amounted to $253.4 million and disbursed to $253.9 million, including interest earned on contributions.

Voluntary Contribution Account—Bolivia

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. Cumulative contributions received by the Account amounted to $50.4 million, and $51.9 million, including interest earned on contributions, was disbursed.

1. Accounting Practices

The Accounts are expressed in U.S. dollars. All transactions and operations of the Accounts, including the transfers to and from the Accounts, are denominated in U.S. dollars except for the Administered Account—Guyana where they also were expressed in other freely usable currencies.

The Accounts are maintained on the accrual basis and, accordingly, income is recognized as it is earned and expenses are recorded as they are incurred.

2. Investments

The assets of the Accounts, pending their disbursement, are held in the form of repurchase agreements or interest-earning deposits and are valued at cost, equal to market value.

3. Accounts Termination

Administered Account—Japan

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

Administered Technical Assistance Account—Japan

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

Administered Account—Guyana

The Account was terminated by the Fund on December 31, 1992 and the remaining assets were returned to Guyana.

Voluntary Contribution Account—Bolivia

The Account was terminated by the Fund on December 31, 1992 and the remaining assets were returned to Bolivia.

TRUST FUND

BALANCE SHEETS as at April 30, 1993 and 1992

(In thousands of SDRs)

(Note 1)

19931992
ASSETS
Loans (Note 2)157,723157,723
Interest and charges receivable and accrued (Note 3)31,78028,105
Investments, at cost (which approximates market value)3,001
TOTAL ASSETS189,503188,829
RESOURCES AND LIABILITIES
Trust resources157,723157,861
Liabilities
Undistributed profits from sale of gold (Note 4)2,913
Deferred income (Note 3)31,78028,055
TOTAL RESOURCES AND LIABILITIES189,503188,829
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
TreasurerManaging Director

INCOME STATEMENTS for the years ended April 30, 1993 and 1992

(In thousands of SDRs)

(Note 1)

19931992
INCOME
Interest and charges on loans (Note 2)5,1386,215
Less income deferred (Note 3)3,7455,403
1,393812
Investment income72165
1,465977
EXPENSE
Exchange valuation loss21
NET INCOME1,463976
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

STATEMENTS OF CHANGES IN TRUST RESOURCES for the years ended April 30, 1993 and 1992

(In thousands of SDRs)

(Note 1)

19931992
Balance, beginning of the year157,861158,000
Net income1,463976
Balance before transfers to the Special Disbursement Account159,324158,976
Transfers to the Special Disbursement Account (Note 5)1,6011,115
Balance, end of the year157,723157,861
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

NOTES TO THE FINANCIAL STATEMENTS April 30, 1993 and 1992

Purpose

The Trust Fund, for which the Fund is 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 the 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 Fund accounts.

1. Accounting Practices

The accounts of the Trust Fund are expressed in terms of the SDR. SDRs are interest-earning assets allocated to participants in the Fund’s SDR Department. 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 currencies. The Fund’s procedures require that the SDR valuation basket be reviewed every five years, and that it include the currencies of the members having the largest exports of goods and services during the five-year period ending one year prior to the date of the revisions. The SDR valuation basket was last reviewed in financial year 1991.

The currencies comprising the basket and their amounts in the basket were as follows:

CurrencyAmount
U.S. dollar0.572
Deutsche mark0.453
Japanese yen31.8
French franc0.800
Pound sterling0.0812

The accounts are maintained on the accrual basis and, accordingly, income is recognized as it is earned, and expenses are recorded as they are incurred except that interest income from members that are overdue in settling 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). Following the termination of the Trust Fund as of April 30, 1981, residual administrative costs have been absorbed by the General Resources Account of the Fund.

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 Trust Fund loan installment was due on March 31, 1991. Interest on the outstanding loan balances is charged at the rate of ½ of 1 percent per annum, while special charges have been levied on late payments of interest and principal since February 1986. Beginning May 1, 1993, special charges on overdue obligations to the Trust Fund will be suspended for members who are more than six months overdue.

3. Overdue Obligations

At April 30, 1993, six members (six members at April 30, 1992) with obligations to the Trust Fund were six months or more late in discharging their obligations to the Trust Fund. The recognition of interest income on the loans outstanding to these members and special charges due from them is being deferred. At April 30, 1993, total deferred income amounted to SDR 31.8 million (SDR 28.1 million at April 30, 1992). Overdue loan repayments and interest and special charges due from these members were as follows:

LoansInterest and

Special Charges
April 30,April 30,
1993199219931992
In millions of SDRs
Total overdue157.7157.730.626.6
Overdue six months or more157.7157.729.023.6
Overdue three years or more156.7140.415.310.4

The type and duration of the arrears of these members at April 30, 1993, were as follows:

MemberLoansInterest

and Special

Charges
TotalLongest Overdue

Obligation
In millions of SDRs
Liberia25.05.930.9January 1985
Sierra Leone9.11.510.6January 1987
Somalia6.51.17.5July 1987
Sudan67.416.083.4July 1984
Viet Nam43.15.348.4February 1984
Zambia6.60.87.5April 1989
Total157.730.6188.3

4. Direct Distribution of Profits

The Fund as Trustee decided that the Trust Fund would make 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. On December 14, 1992, the undistributed profits from the sale of gold held on behalf of Cambodia were utilized by Cambodia to settle in part their overdue obligations to the Fund, completing the direct distribution of profits.

5. Transfer of Resources

The resources of the Trust Fund held on April 30, 1981 or received thereafter have been employed to pay interest and principal when due on loan obligations and to make transfers to the Special Disbursement Account.

SUPPLEMENTARY FINANCING FACILITY SUBSIDY ACCOUNT

BALANCE SHEETS as at April 30, 1993 and 1992

(In thousands of SDRs)

(Note 1)

19931992
ASSETS
Deposits (Note 2)2,8282,773
Accrued interest on deposits3645
TOTAL ASSETS2,8642,818
RESOURCES
TOTAL RESOURCES2,8642,818
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
TreasurerManaging Director

STATEMENTS OF CHANGES IN RESOURCES for the years ended April 30, 1993 and 1992

(In thousands of SDRs)

(Note 1)

19931992
Balance, beginning of the year2,8184,017
Investment income166222
Transfers to the Special Disbursement Account(1,227)
Balance before subsidy payments2,9843,012
Subsidy payments (Note 3)120194
Balance, end of the year2,8642,818
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

NOTES TO THE FINANCIAL STATEMENTS April 30, 1993 and 1992

Purpose

The Supplementary Financing Facility Subsidy Account (“the 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 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. All repurchases due under these policies were scheduled for completion by January 31, 1991 and the final subsidy payments were approved in July 1991. However, three members (Liberia, Sierra Leone, and Sudan), overdue in the payment of charges, remain ineligible to receive previously approved subsidy payments until their overdue charges are settled. Accordingly, the Account remains in operation and has retained amounts for payment to these members after the overdue charges are paid. At April 30, 1993, subsidy payments totaling SDR 2.4 million had not been made to the three members (at April 30, 1992, SDR 2.5 million to four members).

The Fund determined that the resources of the Account are sufficient to meet its estimated needs, and resources in excess of the unpaid subsidy payments were to be re-transferred to the Special Disbursement Account. As of April 30, 1993, the cumulative amount of transfers to the Special Disbursement Account from the Subsidy Account amounted to SDR 83.1 million (SDR 83.1 million at April 30, 1992).

1. Accounting Practices

The accounts of the Supplementary Financing Facility Subsidy Account are expressed in terms of the SDR. SDRs are interest-earning assets allocated to participants in the Fund’s SDR Department. 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 currencies.

The Fund’s procedures require that the SDR valuation basket be reviewed every five years, and that it include the currencies of the members having the largest exports of goods and services during the five-year period ending one year prior to the date of the revisions. The SDR valuation basket was last reviewed in financial year 1991. The currencies comprising the basket and their amounts in the basket were as follows:

CurrencyAmount
U.S. dollar0.572
Deutsche mark0.453
Japanese yen31.8
French franc0.800
Pound sterling0.0812

The accounts are maintained on the accrual basis and, accordingly, income is recognized as it is earned and expenses are recorded as they are incurred.

2. Interest-Earning Deposits

The assets of the Subsidy Account, pending their disbursement, are held in the form of interest-earning time deposits denominated in SDRs and are valued at costs which approximate market value.

3. Subsidy Payments

The amount of the subsidy was 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 paid was determined by the Fund in the light of the resources available. The subsidy could 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.

REPORT OF THE EXTERNAL AUDIT COMMITTEE

STAFF RETIREMENT PLAN

Washington, D.C.

June 30, 1993

Authority and Scope of 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 financial year ended April 30, 1993.

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 outside accounting firm 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, 1993, and of the changes in financial status for the year then ended.

EXTERNAL AUDIT COMMITTEE:

Mohammed Zouhair Tallaj, Chairman (Syrian Arab Republic)

José Manuel Palenque (Bolivia)

Koji Yamazaki (Japan)

STATEMENTS OF ACCUMULATED PLAN BENEFITS AND NET ASSETS AVAILABLE FOR BENEFITS as at April 30, 1993 and 1992

(In thousands of U.S. dollars)

(Note 1)

19931992
Accumulated Plan Benefits
Actuarial present value of accumulated Plan benefits
Vested benefits
Retired participants406,000368,400
Active participants374,600346,200
Nonvested benefits490,400456,200
Total actuarial present value of accumulated Plan benefits1,271,0001,170,800
Net Assets Available for Benefits
Investments, at current value (Note 3)
Portfolio denominated in other currencies895,919536,458
Portfolio denominated in U.S. dollars823,122981,078
1,719,0411,517,536
Receivables
Accrued interest and dividends12,0179,391
Contributions1,223818
Other910
13,24910,219
Cash at bank1254
Total assets1,732,3021,527,809
Liabilities
Accounts payable2,2002,060
Net assets available for benefits1,730,1021,525,749
Excess of net assets available for benefits over actuarial present value of accumulated Plan benefits (Note 2)459,102354,949
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
TreasurerManaging Director

STATEMENTS OF CHANGES IN ACCUMULATED PLAN BENEFITS for the years ended April 30, 1993 and 1992

(In thousands of U.S. dollars)

(Note 1)

19931992
Actuarial present value of accumulated
Plan benefits, beginning of the year1,170,8001,037,400
Increase (decrease) during the year attributable to
Benefits accumulated (Note 1)38,78877,139
Increase for interest due to decrease in discount period98,00086,900
Benefits paid(36,588)(30,639)
Net increase100,200133,400
Actuarial present value of accumulated
Plan benefits, end of the year1,271,0001,170,800
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS for the years ended April 30, 1993 and 1992

(In thousands of U.S. dollars)

(Note 1)

19931992
Investment Income
Net gain in current value of investments (Note 3)141,24494,996
Interest and dividends60,56068,451
201,804163,447
Contributions (Note 2)
International Monetary Fund29,39820,440
Participants15,42413,739
Participants restored to service634239
Net transfers (to) from retirement plans of other international organizations(117)628
45,33935,046
Total additions247,143198,493
Benefits
Pension28,33625,922
Commutation5,5362,832
Withdrawal1,9861,687
Death730198
36,58830,639
Investment Fees
Manager5,1755,655
Custodian1,027924
6,2026,579
Total payments42,79037,218
Net additions204,353161,275
Net Assets Available for Benefits at
Beginning of the year1,525,7491,364,474
End of the year1,730,1021,525,749
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

NOTES TO THE FINANCIAL STATEMENTS as at April 30, 1993 and 1992

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

Annual Pension

Participants are entitled to an unreduced pension beginning at normal retirement age of 62. The amount of the pension is based on the number of years of service, age at retirement, and highest average gross remuneration. The provisions for determining gross remuneration are different for benefits earned before and after May 1, 1990. 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 accrual rate of benefits earned before May 1, 1990 was 2 percent of gross remuneration for each year of service, while the accrual rate of benefits earned after May 1, 1990 is 2.2 percent for the first 25 years of service and 1.8 percent for the next 10 years of service. The pensions of participants hired before May 1, 1990 are based on a prorated combination of the old and new accrual rates, using the time period of service before and after May 1, 1990.

Participants between the ages 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. Early retirement pensions are based on normal pensions.

Cost of Living Adjustment

Whenever the cost of living increases during a financial year, pensions shall be augmented by a pension supplement that, 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.

Withdrawal Benefit

Upon termination, a participant with at least three years of eligible service may elect to receive either a withdrawal benefit or a deferred pension to commence after the participant has reached the age of 55 or age 50 if age and years of service add to at least 75. The withdrawal benefit is a percentage of the participant’s highest average gross remuneration.

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.

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 or 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.

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 1993, the administrative costs met by the Employer were approximately $0.13 million ($0.06 million in 1992).

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 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 that had been accumulated by April 30, 1993. 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, is 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 that the Employer will be required to fund in the future.

Valuation of Investments

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

Investment Income

Dividend and interest income from investments are recognized as they are 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 that include provision for experience gains and losses and cost of living increases. Required Employer contributions are expressed as a percentage to be applied to the gross remuneration of participants and are based upon the valuation completed 12 months previously. For the financial year that began on May 1, 1991, this rate was 10.46 percent and was 13.41 percent for the year that began on May 1, 1992 based upon the valuation at April 30, 1991. The proposed rate for the year beginning May 1, 1993 is 16.05 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 that vary with age, and (f) valuation of assets using a five-year moving average method.

Several of the actuarial assumptions used to determine the Employer contribution were 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, which are reflected in the 1991 and 1990 valuations.

The results of the April 30, 1992 and 1991 valuations are:

19921991
In millions of U.S. dollars
Present value of benefits payable1,8471,632
Less: Assets for valuation purposes1,3691,259
Required future funding478373
Less: Present value of prospective contributions from participants (7 percent of gross remuneration)154136
Present value of future funding required from the Employer324237

3. Investments

A summary of investments at market values is as follows:

19931992
In thousands of U.S. dollars
Portfolio denominated in U.S. dollars
Common and preferred stock526,368651,847
Short-term investments101,770159,493
U.S. Government securities96,62886,727
Real estate49,12745,012
Corporate bonds and debentures48,42436,141
Venture capital8051,858
823,122981,078
Portfolio denominated in other currencies895,919536,458
1,719,0411,517,536

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.

The Plan enters into forward foreign currency exchange contracts to reduce the impact of foreign currency fluctuations relative to investments in its international portfolio and also invests in financial futures contracts. Although the face amount of these contracts is not included in net assets available for plan benefits, the changes in value of such contracts are recognized currently in the financial statements. At April 30, 1993 the Plan had $57 million in open equity and fixed income futures contracts, $43 million in open foreign currency futures contracts, and $177 million in open forward foreign exchange contracts.

REPORT OF THE EXTERNAL AUDIT COMMITTEE

SUPPLEMENTAL RETIREMENT BENEFIT PLAN

Washington, D.C.

June 30, 1993

Authority and Scope of Audit

In accordance with Section 20(b) of the By-Laws of the International Monetary Fund, we have audited the financial statements of the Supplemental Retirement Benefit Plan for the financial year ended April 30, 1993.

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 outside accounting firm 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, 1993, and of the changes in financial status for the year then ended.

EXTERNAL AUDIT COMMITTEE:

Mohammed Zouhair Tallaj, Chairman (Syrian Arab Republic)

José Manuel Palenque (Bolivia)

Koji Yamazaki (Japan)

STATEMENTS OF ACCUMULATED PLAN BENEFITS AND ASSETS AVAILABLE FOR BENEFITS as at April 30, 1993 and 1992

(In thousands of U.S. dollars)

(Note 1)

19931992
Accumulated Plan Benefits
Actuarial present value of accumulated Plan benefits
Vested benefits6,4004,600
Nonvested benefits100100
Total actuarial present value of accumulated Plan benefits6,5004,700
Assets Available for Benefits
Receivable Contributions42
Cash at bank (Note 3)401340
Assets available for benefits405342
Excess of actuarial present value of accumulated Plan benefits over assets available for benefits6,0954,358
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
TreasurerManaging Director

STATEMENTS OF CHANGES IN ACCUMULATED PLAN BENEFITS for the years ended April 30, 1993 and 1992

(In thousands of U.S. dollars)

(Note 1)

19931992
Actuarial present value of accumulated Plan benefits, beginning of the year4,7001,800
Increase (decrease) during the period attributable to Benefits accumulated1,9483,129
Increase for interest due to decrease in discount period400100
Benefits paid(548)(329)
Net increase1,8002,900
Actuarial present value of accumulated
Plan benefits, end of the year6,5004,700
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

STATEMENTS OF CHANGES IN ASSETS AVAILABLE FOR BENEFITS for the years ended April 30, 1993 and 1992

(In thousands of U.S. dollars)

(Note 1)

19931992
Interest income1121
Contributions
International Monetary Fund534123
Participants6651
600174
Total additions611195
Benefits
Pension359293
Commutation18936
Total payments548329
Net increase (decrease)63(134)
Assets Available for Benefits at
Beginning of the year342476
End of the year405342
The accompanying notes are an integral part of the financial statements.
The accompanying notes are an integral part of the financial statements.

NOTES TO THE FINANCIAL STATEMENTS as at April 30, 1993 and 1992

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 that would otherwise have been payable if these limits had not been adopted.

In 1993, 27 pensioners received benefits from the SRBP (20 in 1992).

Contributions

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-US. 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.

SRBP 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 SRBP Benefits

The actuarial present value of accumulated SRBP benefits is stated as at the date of the most recent actuarial valuation, which was April 30, 1993. 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 from investments is recognized as it is 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.

Several of the actuarial assumptions used to determine the employer contribution were 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 SRBP by 1 percent to reflect the May 1, 1991 incorporation into the SRBP of the Pension Parity Adjustment System.

3. Assets

Cash balances are maintained in a money market account.

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