Front Matter

Front Matter

International Monetary Fund
Published Date:
January 1993
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Annual Report, 1993

International Standard Serial Number: ISSN 0250-7498

International Monetary Fund

700 19th Street, N.W., Washington D.C. 20431, U.SA

Tel: (202) 623–7430 Telefax (202) 623–7201


The following symbols have been used in this Report:

  • … to indicate that data are not available;
  • — to indicate that the figure is zero or less than half the final digit shown or that the item does not exist;
  • – between years or months (e.g., 1991–92 or January–June) to indicate the years or months covered, including the beginning and ending years of months;
  • / between years (e.g., 1992/93) to indicate a crop or fiscal (financial) year.

“Billion” means a thousand million.

Minor discrepancies between constituent figures and totals are due to rounding.

All references to dollars are to U.S. dollars unless otherwise noted.

International Monetary Fund

Managing Director and Chairman of the Executive Board

Michel Camdessus

Deputy Managing Director

Richard D. Erb

Executive DirectorsAlternate Executive Directors
Thomas C. Dawson IIVacant
Stefan SchoenbergBernd Esdar
Hiroo FukuiNaoki Tabata
Jean-Pierre LandauIsabelle Martel
David PeretzJohn Dorrington
Jacques de GrooteJohann Prader
Godert A. PosthumusOleh Havrylyshyn
Roberto MarinoGerver Torres
Giulio Lanciottiloannis Papadakis
Douglas E. SmeeGarrett F. Murphy
Ingimundur FridrikssonJon A. Solheim
Muhammad Al-JasserAbdulrahman Al-Tuwaijri
Ewen L. WatermanAmando M. Tetangco, Jr.
A. Shakour ShaalanYacoob Yousef Mohammed
Konstantin G. KagalovskyAleksei V. Mozhin
Daniel KaeserKrzysztof Link
J. E. IsmaelKleo-Thong Hetrakul
Abbas MirakhorOmar Kabbaj
Alexandre KafkaJuan Carlos Jaramillo
K. P. GeethakrishnanL. Eustace N. Fernando
L. J. MwananshikuBarnabas S. Dlamini
Zhang MingWEI Benhua
A. Guillermo ZoccaliAlberto F. Jiménez de Lucio
Corentino V. SantosYves-Marie T. Koissy

Senior Officers

Sterie T. Beza*


Michael Mussa*

Economic Counsellor

Mamoudou TourÉ*


Leo Van Houtven*


Graeme F. Rea


Administration Department

Mamoudou TourÉ


African Department

Hubert Neiss


Central Asian Department

Massimo Russo


European I Department

John Odling-Smee


European II Department

Shailendra J. Anjaria


External Relations Department

Vito Tanzi


Fiscal Affairs Department

Patrick B. de Fontenay


IMF Institute

François P. Gianviti

General Counsel Legal Department

Paul Chabrier


Middle Eastern Department

J. B. Zulu


Monetary and Exchange Affairs Department

John T. Boorman


Policy Development and Review Department

Michael Mussa


Research Department

Leo Van Houtven


Secretary’s Department

Kunio Saito


Southeast Asia and Pacific Department

John B. McLenaghan


Statistics Department

David Williams


Treasurer’s Department

Sterie T. Beza


Western Hemisphere Department

Warren N. Minami


Bureau of Computing Services

Patrick Delannoy


Bureau of Language Services

Joaquín Ferrán


Office in Europe (Paris)

Helen B. Junz

Director and Special TradeRepresentative

Office in Geneva

Lindsay A. Wolfe


Office of Budget and Planning

Marcello Caiola


Office of Internal Audit and Review

Ian S. McDonald

Chief Editor

July 15, 1993


Alphabetical Listing

Letter of Transmittal to the Board of Governors

August 9, 1993

Dear Mr. Chairman:

I have the honor to present to the Board of Governors the Annual Report of the Executive Board for the financial year ended April 30, 1993, in accordance with Article XII, Section 7(a) of the Articles of Agreement of the International Monetary Fund and Section 10 of the Fund’s By-Laws. In accordance with Section 20 of the By-Laws, the administrative and capital budgets of the Fund approved by the Executive Board for the financial year ending April 30, 1994 are presented in Appendix VIII. The audited financial statements for the year ended April 30, 1993 of the General Department, the SDR Department, accounts administered by the Fund, the Staff Retirement Plan, and the Supplemental Retirement Plan, together with reports of the External Audit Committee thereon, are presented in Appendix IX.

Yours sincerely,

Michel Camdessus

Chairman of the Executive Board

Chairman of the Board of Governors

International Monetary Fund

Meeting the Challenge of a Global Monetary Order

During 1992/93, the Fund met new challenges and acted decisively to provide policy advice and financial and technical assistance to meet the urgent needs of its increasingly diverse membership. The scope and extent of its operations expanded significantly, and for the first time the institution was close to achieving the universality of membership that was a goal of its founding fathers almost fifty years ago. During the financial year, membership rose to 177 from 157. At the end of the financial year the membership applications of a further three countries were pending. (One of these countries, Micronesia, joined the Fund in June 1993.)

The Fund’s activities took place against the backdrop of a world economic environment marked by continuing difficulties. Although, overall, global economic activity recovered slightly, this recovery was below expectations and was characterized by a persistence of low or negative growth in most industrial countries, together with high levels of unemployment and continuing structural impediments to growth. Among the industrial countries, while there were signs of a gradual recovery in the United States and Canada, growth declined in Japan, and most countries in Europe experienced economic stagnation or decline. Despite the weak performance of the industrial countries, the economic situation brightened in many developing countries in Asia—particularly in the newly industrializing economies of Southeast Asia—in the Middle East, and many countries in the Western Hemisphere. By contrast, economic growth weakened further in much of Africa.

In view of the continuing problems affecting the world economy, the Interim Committee of the Fund’s Board of Governors at the end of April 1993 issued a declaration calling for a global cooperative effort to bolster confidence and strengthen prospects for a durable, noninflationary expansion of the world economy. The Committee added that the immediate and urgent need to conclude successfully the Uruguay Round of multilateral trade negotiations was crucial for increasing world prosperity.

The Committee underscored the Fund’s vital role as the central international monetary institution. It emphasized that, in the face of the challenges of an increasingly integrated world economy, the Fund’s effective surveillance over exchange rates and macroeconomic policies had become even more important. It pledged its support for the steps agreed by the Executive Board to strengthen this surveillance, including regional developments, in order promptly to identify and address problems that may give rise to tensions in the world economy and undesirable volatility in exchange rates.

During the year, the Fund continued to play a central role in the massive undertaking of supporting the transformation of the former centrally planned economies into market-based systems. A first credit tranche arrangement was approved for the Russian Federation, as well as upper credit tranche arrangements for each of the Baltic states and for many of the members in Central and Eastern Europe whose economies are in transition.

In recognition of the unique challenges facing the economies in transition, the Fund established in April 1993 a temporary systemic transformation facility (STF). This facility is designed to provide financing to members facing balance of payments difficulties arising from severe disruptions in their trade and payments arrangements owing to a shift from major reliance on trading at nonmarket prices to multilateral, market-based trade. Such members include those at the early stages of transition that have been unable, as yet, to formulate programs that the Fund could support under its existing lending facilities. Members using the facility will undertake to move rapidly toward policies that could subsequently be supported under stand-by, extended Fund facility, or enhanced structural adjustment facility (ESAF) arrangements. In May 1993, in conjunction with a stand-by arrangement with the Fund, Kyrgyzstan made the first purchase (for SDR 16 million) under this facility. Russia made a purchase (for SDR 1,078 million) in early July.

Among developing countries, a number have seen an improvement in economic conditions as a result of determined adjustment efforts to promote growth and introduce far-reaching structural reforms, often with financial and technical support from the Fund. Many others, however, still face difficult economic situations and must undertake major policy adjustments. The ESAF has proved to be effective in helping the low-income countries to implement comprehensive macroeconomic and structural policy programs in order to strengthen their balance of payments positions, foster growth, and attract external financing. Recognizing the effectiveness and importance of this concessional support, the Board agreed in April 1993 that a successor to the ESAF should be introduced in a timely manner for an additional period to provide continuity after the current cutoff date for commitments of November 1993.

To serve the needs of an expanding world economy, a substantial increase in Fund quotas became effective in November 1992. This increase, together with the quotas of new members, raised total Fund quotas by almost 60 percent, to SDR 144.6 billion at the end of April 1993, compared with SDR 91.2 billion at the end of April 1992. The initial quotas of new members that have joined the Fund since April 30, 1992, account for SDR 6.2 billion of the quota increase. The Fund’s policy on access to its resources was reviewed by the Board in October 1992 in connection with the quota increase, and new access limits were established that were intended broadly to maintain potential access for the members.

In October 1992, the Board renewed the General Arrangements to Borrow for a five-year period from December 26, 1993, and approved an amendment to the arrangements to reflect Switzerland’s membership in the Fund.

During 1992/93, the Board considered on two occasions the possible need for an allocation of SDRs and related issues. At a meeting in April 1993, the Board examined the long-term need to supplement existing reserve assets, the size of a possible SDR allocation, and issues regarding a post-allocation redistribution of SDRs. At that meeting, the broad support necessary for a new allocation was lacking. At the end of the month, the Interim Committee also had an exchange of views on the question of an SDR allocation. In its communiqué, it requested the Board to assess the long-term global need for a reserve asset supplement, the potential economic and monetary effects of an allocation, and the future of the SDR as a reserve asset. The Committee asked that a report on this work be submitted to it at its next meeting in September 1993.

With the continued implementation of the cooperative strategy to assist members to progress toward eliminating their overdue obligations to the Fund, the level of such arrears declined in 1992/93 for the first time since 1982, and one member was able to eliminate its protracted arrears to the Fund. The Third Amendment to the Fund’s Articles of Agreement also came into force during the year. This allows for the suspension of voting and related rights of a member that persists in its failure to fulfill its obligations under the Articles, including a failure to settle its overdue financial obligations.

The scope and extent of the Fund’s technical assistance and training activities continued to expand. This growth resulted from the increase in membership and the concomitant rise in the number of countries requiring technical assistance services from the Fund. In August 1992, a Technical Assistance Secretariat was set up within the Fund to provide a focal point for such activities and to coordinate technical assistance services both within the Fund and with other agencies.

The expansion of the Fund’s membership and financial operations also necessitated an increase in the ceiling of the institution’s regular staff, to more than 2,100, as well as the reorganization of some operational departments to adapt to the changing needs of member countries.

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