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Back Matter

International Monetary Fund
Published Date:
January 1995
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    APPENDIX I International Reserves

    This appendix reviews recent developments in international reserves and liquidity that relate to the evolution of holdings of official assets and to the currency composition and distribution of foreign exchange reserves.

    Recent Evolution of Official Reserve Assets

    During 1994 total international reserves measured in SDR terms increased by 3.4 percent to SDR 1,052 billion, reflecting growth in non-gold reserves that more than offset a decline in the market value of official holdings of gold (Table I.1). The increase in non-gold reserves resulted from a substantial rise in foreign exchange reserves held by developing countries and a more modest increase in the stocks held by industrial countries. The decline in the value of gold holdings was largely attributable to a significant fall in the price of gold, although there was also a reduction in the quantity held that continued a trend begun in 1989 and accelerated in 1992. Although total Fund related assets remained essentially unchanged in 1994, the composition of these assets has continued to adjust since late 1992, when most Fund members completed payment for their quota under the Ninth General Review.


    All countries
    Total reserves excluding gold
    Fund-related assets
    Reserve positions in the Fund25.523.725.933.932.831.733.7
    Subtotal, Fund-related assets46.044.146.446.847.447.553.2
    Foreign exchange545.0593.6625.2646.3710.1765.2751.8
    Total reserves excluding gold590.9637.7671.7693.1757.2812.7804.9
    Quantity (millions of ounces)940.9938.9937.8929.3912.6909.8900.2
    Value at London market price287.1254.1231.8225.2259.5238.8223.0
    Total reserves including gold878.0891.8903.5918.31,016.81,051.51,028.0
    Industrial countries
    Total reserves excluding gold
    Fund-related assets
    Reserve positions in the Fund19.620.022.829.528.327.429.2
    Subtotal, Fund-related assets37.237.640.240.039.839.944.5
    Foreign exchange345.0376.5360.4356.8373.7393.9391.4
    Total reserves excluding gold382.2414.1400.7396.7413.4433.8435.9
    Quantity (millions of ounces)797.8795.8793.7785.2770.8768.0757.1
    Value at London market price243.4215.4196.2190.3219.2201.6187.6
    Total reserves including gold625.7629.5596.9587.1632.7635.5623.5
    Developing countries
    Total reserves excluding gold
    Fund-related assets
    Reserve positions in the Fund5.
    Subtotal, Fund-related assets8.
    Foreign exchange200.0217.1264.8289.6336.4371.3360.4
    Total reserves excluding gold208.7223.6271.0296.3343.8378.9369.0
    Quantity (millions of ounces)143.1143.1144.1144.0141.7141.7143.1
    Value at London market price43.738.735.634.940.337.235.5
    Total reserves including gold252.4262.3306.7331.2384.1416.1404.4
    Net debtors
    Total reserves excluding gold
    Fund-related assets
    Reserve positions in the Fund1.
    Subtotal, Fund-related assets3.
    Foreign exchange120.3144.9183.8207.2253.7286.8276.5
    Total reserves excluding gold123.5147.9187.3211.7258.6292.1282.8
    Quantity (millions of ounces)112.5112.6113.6113.5111.2111.2112.6
    Value at London market price34.330.528.127.531.629.227.9
    Countries without debt-servicing problems
    Total reserves excluding gold
    Fund-related assets
    Reserve positions in the Fund1.
    Subtotal, Fund-related assets2.
    Foreign exchange86.499.5122.6126.4155.9194.4194.3
    Total reserves excluding gold89.0101.7125.0129.5159.2198.1198.7
    Quantity (millions of ounces)66.063.464.864.664.664.965.6
    Value at London market price20.
    Note: Components may not sum to totals because of rounding.Source: International Monetary Fund, International Financial Statistics.

    Non-Gold Reserves

    Total non-gold reserves increased by over 7 percent during 1994 to SDR 813 billion by the end of the year. This rise was a continuation of a steady trend that has been evident since the late 1980s. Non-gold reserves held by developing countries have increased every year since the mid-1980s, although the rate of increase in 1994 was slower than in 1993, whereas the stock held by industrial countries rose for the second year in a row after two years of modest decline. The 10 percent increase in 1994 on the part of developing countries was significantly larger than the 5 percent increase of the industrial countries, and developing countries now account for 47 percent of non-gold reserves compared with 35 percent in 1989. The increase in the holdings of developing countries in 1994 was largely attributable to non-oil developing countries, primarily the net debtor countries without debt-servicing problems, whose non-gold reserves increased by 26 percent in 1994 after an increase of 25 percent in 1993. By contrast, the net debtor countries with debt-servicing problems decreased their non-gold reserves by 5 percent after an increase of 21 percent in 1993. The stock of non-gold reserves held by the net creditor countries increased by 2 percent in 1994, about the same as in 1992 and 1993, whereas that held by oil exporting countries declined by 5 percent.

    Foreign Exchange Reserves

    Foreign exchange reserves rose by 8 percent during 1994 to SDR 765 billion. Although it was below the 10 percent rate of increase experienced in 1993, this rise was substantially above the 5 percent and 3 percent growth rates realized in 1991 and 1992, respectively. The change in the stock of foreign exchange reflected an SDR 35 billion (10 percent) increase in the holdings of developing countries, and an SDR 20 billion (5 percent) increase in the holdings of industrial countries. The rise in the foreign exchange holdings of the industrial countries in 1994 was comparable to the increase in 1993 after two years of modest declines. The increase in the holdings of developing countries continued the trend of accumulation of foreign exchange reserves that began in 1987 and is attributable, in part, to an inflow of private capital.

    Holdings of Fund-Related Reserve Assets

    Total holdings of Fund-related assets remained largely unchanged in 1994 at SDR 47.5 billion, although there was a change in the composition of these assets. The quota increase arising from the Ninth General Review resulted in major changes in the composition of Fund-related reserve assets in 1992, as most members used their holdings of SDRs to pay for the reserve asset portion of the quota increase. Members’ reserve positions in the Fund, which comprise their reserve tranche position and their creditor position, had fallen by SDR 6 billion from 1987 to the end of 1991 but subsequently rose by SDR 8 billion in 1992. Members’ holdings of SDRs, which had remained virtually unchanged from 1987 to 1991, declined by SDR 8 billion in 1992. This pattern of offsetting changes in reserve positions in the Fund and SDRs was evident for both developing and industrial countries. Developments in 1993 and 1994 reflected the Fund’s decision, adopted early in 1993, to reduce its own SDR holdings from SDR 8.6 billion at the end of 1992 to SDR 1–1.5 billion by the end of 1995 in order to replenish members’ holdings and facilitate their use of SDRs. In implementing this policy, the Fund reduced its holdings by about SDR 2 billion during 1993 and by SDR 1.2 billion during 1994 by providing SDRs to members in purchases and other transfers, thus generating an increase in members’ SDR holdings for both industrial and developing countries.


    After rising by 15 percent in 1993, the market value of the stock of official gold reserves declined by 8 percent in 1994, to SDR 239 billion. This decline appears to be a return to the trend that began in the late 1980s, which saw the value of gold reserves decrease by 43 percent between 1987 and 1992. Gold reserves now account for only 23 percent of total reserves, compared with 33 percent in 1989. The decline in value in 1994 resulted primarily from an 8 percent fall in the SDR price of gold, but it also reflected a modest reduction in the quantity of gold held by members. The decline in the stock of gold reserves in 1994 continued the trend that began in the late 1980s; the quantity has declined every year since 1987. Although the reduction in holdings in 1994 was concentrated in the industrial countries, the distribution of the stock held was approximately the same at the end of 1994 as it was in 1988: 84 percent by industrial countries and 16 percent by developing countries.

    Developments in the First Quarter of 1995

    In the first quarter of 1995, total international reserves declined by SDR 23 billion. This was about equally divided between a 2 percent decline in foreign exchange and a fall in the value of gold reserves resulting from a decline in the price of gold. The SDR 13 billion decline in foreign exchange reserves was distributed across all of the country classifications in the table. During this period of declining total international reserves. Fund-related assets rose from SDR 47.5 billion to SDR 53.2 billion, with a large proportion of the increase reflected in members’ SDR holdings. The substantial increase in Fund-related assets reflected the unprecedented net financing provided by the Fund to its members in the first quarter of 1995, in particular to Mexico.

    Currency Composition of Reserves

    During the past ten years there has been some modest diversification in the currency composition of reserves. Nevertheless, there are several important patterns that can be seen in Table I.2.1 Although the share of the U.S. dollars in total foreign exchange reserves is at roughly the same level in 1994 (57 percent) as it was in 1986. it has varied substantially during this period, reaching a low of 49 percent in 1990. The fluctuations in these shares have been similar for both industrial and developing countries, but the diversification of reserves tended to be more concentrated in industrial countries. The industrial countries’ share of U.S. dollar-denominated reserves, which is now 51 percent, has been around 50 percent over the past decade, reaching a high of almost 55 percent and a low of44 percent. Over the same period, the developing countries’ share has averaged approximately 60 percent, with a high of 66 percent and a low of 54 percent. However, the fluctuations in these shares have occurred at different times. Since 1988, the share of the dollar in the total reserve holdings of developing countries has risen by 10 percentage points, compared with a decrease of 3 percentage points for industrial countries. For industrial countries, the 1994 shares held in the three major currencies (the dollar, deutsche mark, and Japanese yen) are about the same as they were ten years ago. By contrast, over the same period there appears to be some tendency of increased holdings of pounds sterling and French francs and reduced holdings of Swiss francs, Netherlands guilders, and, especially, European currency units (ECUs).

    1985198619871988198919901991199219931994Memorandum: ECU-Dollar Swaps Included with Dollars2 1994
    All countries
    U.S. dollar55.356.455.154.551.149.150.755.156.757.163.3
    Pound sterling2.
    Deutsche mark13.913.213.014.417.617.515.713.614.714.815.5
    French franc0.
    Swiss franc2.
    Netherlands guilder0.
    Japanese yen7.
    Unspecified currencies35.
    Industrial countries
    U.S. dollar50.154.254.754.548.145.343.548.750.351.562.5
    Pound sterling1.
    Deutsche mark16.714.614.115.720.520.418.515.317.216.918.3
    French franc0.
    Swiss franc1.
    Netherlands guilder0.
    Japanese yen7.
    Unspecified currencies31.
    Developing countries
    U.S. dollar62.560.456.254.458.457.763.465.165.564.364.3
    Pound sterling4.
    Deutsche mark9.810.710.811.010.611.110.810.911.312.312.3
    French franc1.
    Swiss franc2.
    Netherlands guilder0.
    Japanese yen6.
    Unspecified currencies411.311.614.815.614.313.
    Note: Components may not sum to totals because of rounding.

    Because of the large, although declining, share of the “unspecified currency” component of developing countries’ foreign exchange reserves, an accurate assessment of the trends in their shares is somewhat problematic, but some important observations can be made based on the available data.2 The share of dollars, deutsche mark, and yen have all increased over the past ten years, but this may simply be the result of improved reporting by these countries. Although the dollar is unquestionably the most widely held currency in their portfolios, the largest percentage increase has been in the yen and deutsche mark, and the share of yen holdings in the developing countries’ portfolios (9.0 percent) is now greater than for industrial countries (8.0 percent).

    In the calculation of the shares in Table I.2, the SDR value of ECU official reserves, which were introduced in 1979 and accounted for 8 percent of the value of total official holdings of foreign exchange and 14 percent for industrial countries at the end of 1994, is treated as a separate currency. ECU official reserves are in the form of claims on both the private sector and the European Monetary Institute (EMI). The EMI-backed ECU reserves are issued in exchange for deposits equal to 20 percent of both gold and dollar reserves. These swaps are renewed every three months, and changes in members’ holdings of dollars and gold, as well as changes in the market price of gold and in the foreign exchange value of the dollar, affect the amount of ECUs outstanding.3 Quantity changes in ECU holdings depend, therefore, in part on the evolution of the two components of the EMI swap.4 The other component of ECU foreign exchange reserves are official claims on the private sector, usually in the form of ECU deposits and bonds. ECUs, which are held mostly by European countries, reached 20 percent of industrial country reserves in the mid-1980s before beginning a gradual decline, and since 1992 this share has fallen from 16.5 percent to just under 14 percent. Most of the recent fall in the share of ECUs is a result of a decline in official ECU reserves in the form of claims on the private sector. If the SDR value of ECU swaps issued against dollars is counted as part of the dollar component of foreign exchange reserves (last column of Table I.2), the overall picture of the trend in the currency composition of foreign exchange reserves is similar, although the dollar share of total official foreign exchange is about 11 percent higher for the industrial countries.

    Changes in the SDR value of foreign exchange reserves can be decomposed into valuation (or price) and quantity changes for each of the major currencies as well as the ECU. These are shown in Table I.3, In 1994 total identified foreign exchange reserves increased by SDR 48 billion as a result of a positive quantitative change of SDR 61 billion that more than offset a valuation loss of SDR 13 billion. The table sheds light on recent movements in reserve-holding behavior. Despite the substantial decline in the SDR value of the dollar in 1994 (6 percent), the quantity of dollar holdings increased even more in 1994 (15 percent) than in the previous year, and more in percentage terms than any other currency (except for the pound sterling). As was shown in Table I.2, these developments left the share of dollars in total identifiable reserves roughly unchanged. However, the dollar share for developing countries as a whole declined, primarily because of valuation losses. Of the identifiable reserve currencies, the deutsche mark and the Japanese yen were the only reserve assets that experienced both quantitative and valuation increases in 1994. The increase in the deutsche mark share was attributable equally to an increase in holdings of that currency and to a substantial rise in its price. The more modest increase in the share of Japanese yen was predominantly a result of an increase in the SDR price of the yen. Following a large decline in 1993, the SDR value of ECUs remained largely unchanged in 1994, as a reduction in ECU holdings was offset by an increase in the SDR price of the ECU.

    U.S. dollar
    Change in holdings17,69910,89216,54921,41835,02545,31532,418
    Quantity change5,4235,27136,81023,86622,96943,96155,550
    Price change12,2755,621–20,261–2,44912,0561,354–23,132
    Year-end value239,213250,105266,654288,072323,097368,412400,829
    Pound sterling
    Change in holdings2,3551,2275,1041,922–5452,0344,698
    Quantity change2,1712,3703,6072,4753,1472,3934,838
    Price change184–1,1441,497–553–3,692–359–141
    Year-end value11,04912,27617,37919,30218,75720,79125,489
    Deutsche mark
    Change in holdings10,74522,9969,068–6,143–9,41115,8298,730
    Quantity change14,38916,6814,436–4,183–7,81421,7384,006
    Price change–3,6446,3154,631–1,961–1,597–5,9094,724
    Year-end value63,12186,11795,18589,04279,63095,460104,190
    French franc
    Change in holdings1,2172,3985,4383,146–1,5226048
    Quantity change1,4801,9585,0833,144–1,339937–437
    Price change–2634393552–183–876485
    Year-end value4,1916,58912,02815,17413,65213,71213,760
    Swiss franc
    Change in holdings674–921350–181–3571,595–576
    Quantity change1,406–875–323169–1611,687–1,051
    Price change–733–46674–350–196–93475
    Year-end value7,7316,8107,1616,9806,6228,2177,641
    Netherlands guilder
    Change in holdings–241729560164–2,249442–504
    Quantity change59397330240–2,258685–682
    Price change–300332231–769–244178
    Year-end value4,2694,9985,5595,7223,4733,9153,411
    Japanese yen
    Change in holdings3,4314,4509,5325,032–3,2827,3203,422
    Quantity change2,4258,0529,7171,843–5,4902,004454
    Price change1,005–3,602–1853,1892,2085,3162,968
    Year-end value30,63635,08744,61949,65146,36953,68957,111
    European currency unit
    Change in holdings–5,9853644924,8392,031–4,225218
    Quantity change–3,296–1,878–2,1075,7396,306–18–1,636
    Price change–2,6892,2422,600–900–4,275–4,2071,854
    Year-end value51,25751,62152,11356,95258,98354,75854,977
    Sum of the above2
    Change in holdings29,89442,13547,09530,19619,69068,37048,543
    Quantity change24,05831,97657,55333,29215,35973,38761,043
    Price change5,83610,159–10,458–3,0964,331–5,017–12,590
    Year-end value411,468453,603500,698530,894550,584618,954667,407
    Total official holdings3
    Change in holdings38,37550,75348,63131,65421,07363,73455,153
    Year-end value494,211544,965593,596625,250646,323710,057765,210
    Note: Components may not sum to totals because of rounding.
    APPENDIX II Financial Operations and Transactions of the Fund

    The tables in this appendix supplement the information given in the section on the Fund’s financial operations and polices.


    Number of ArrangementsAmounts Committed Under Arrangements

    (in millions of SDRs)

    Number of Arrangements

    as of April 30
    Amounts Committed Under Arrangements

    as of April 30

    (in millions of SDRs)
    MemberUndisbursed Balance
    Arrangement DatesAmounts ApprovedAt date of terminationOf current arrangements at April 30, 1995
    Effective dateExpiration dateThrough April 30, 1994In 1994/95
    Central African Rep.03/28/9403/27/95166
    El Salvador305/10/9312/31/944747
    Kazakhstan 401/26/9405/31/9512450
    Lithuania 510/22/9310/24/942621
    Slovak Republic07/22/9403/21/9611684
    Viet Nam1110/06/9311/11/9414536
    MemberArrangement DatesAmounts ApprovedUndisbursed Balance

    Of current


    at April 30, 1995



    April 30, 1994
    In 1994/95
    MemberDate of

    Amounts Approved

    and Disbursed


    April 30, 1995


    at Expiration/

    Burkina Faso03/13/916161
    Central African Republic06/01/8721
    Equatorial Guinea12/07/88941
    Gambia, The09/17/86931
    Lao People’s Democratic Republic09/18/8921
    São Tomé and Príncipe06/02/8912
    Sierra Leone11/14/861229
    Sierra Leone03/28/9427
    Sri Lanka03/09/88156
    MemberArrangement Dates1Approved


    April 30, 1994

    in 1994/95


    April 30, 19952

    Balance of Current


    at April 30, 1995
    Date of

    Date of

    Burkina Faso03/31/9303/30/96492722
    Côte d’Ivoire03/11/9403/10/97333119214
    Equatorial Guinea02/03/9302/02/961358
    Gambia, The11/23/8811/25/912121
    Kyrgyz Republic07/20/9407/19/97712447
    Lao People’s Democratic Republic06/04/9306/03/96351818
    Sierra Leone03/28/9403/27/97896920
    Sri Lanka09/13/9107/31/9533628056
    Viet Nam11/11/9411/10/9736260302
    DisbursementsRepurchases and RepaymentsTotal Fund Credit Outstanding
    Financial YearPurchases1Trust Fund loansSAF loansESAF loans2TotalRepurchasesTrust Fund repaymentsSAF/ESAF repaymentsTotal


    Credit Tranche

    Fund Facility

    and Contingency

    Financing Facility



    Slovak Republic326497
    Viet Nam481260




    Compensatory and

    Contingency Financing


    Costa Rica111728
    Côte d’Ivoire461259
    Czech Republic1403236639
    Dominican Republic1111
    Macedonia, former Yugoslav Republic of11
    Papua New Guinea1616
    Slovak Republic415697
    Trinidad and Tobago4646
    Millions of SDRs
    Stand-by arrangements111,9499,9939,3239,46910,5789,48515,117
    Extended arrangements8,0638,2828,4408,6419,8499,56610,155
    Compensatory and contingency financing facility3,6893,8235,1425,3224,2083,7563,021
    Systemic transformation facility2,7253,848
    Subtotal (GRA)23,70022,09822,90623,43224,63525,53232,140
    SAF arrangements8741,2931,3771,5001,4841,4401,277
    ESAF arrangements22646721,1631,6462,2192,8123,318
    Trust Fund682326158158158105102
    Percent of total
    Stand-by arrangements146.841.036.435.437.131.741.0
    Extended arrangements31.634.033.032.334.632.027.6
    Compensatory and contingency financing facility14.515.720.119.914.812.68.2
    Systemic transformation facility9.110.4
    Subtotal (GRA)92.990.689.587.686.585.487.2
    SAF arrangements3.
    ESAF arrangements21.
    Trust Fund2.
    Subsidies (Grant or Grant Equivalent)1Loans2
    ContributorPrior to


    TotalPrior to


    Czech Republic1111
    Iran, Islamic Republic of(2)(2)
    United Kingdom33574409
    United States12364187
    Saudi Arabia(84)(84)2004
    Subtotal (bilateral)2,38551,2913,6765,1414,517
    OPEC Fund326
    MemberTotal Holdings April 30, 1994Receipts from the General AccountTransfers to the General Resources AccountInterest, Charges, and Assessment (Net)Positions as at April 30, 1995
    Receipts from Participants and Prescribed HoldersTransfers to Participants and Prescribed HoldersHoldingsNet cumulative allocationsHoldings as percent of cumulative allocations
    Afghanistan, Islamic State of1,757–1,11564226,7032.4
    Antigua and Barbuda44
    Bahamas, The9631547–449910,2300.1
    Bosnia and Herzegovina120,481
    Burkina Faso5,570145–1705,5459,40958.9
    Cape Verde1550–26396206.3
    Central African Republic39291526426492–4071709,3251.8
    Costa Rica1,0443,650882,796–1,02995723,7264.0
    Côte d’Ivoire2,3638,0002636,951–1,6212,05437,8285.4
    Czech Republic11,320135,0002,901427144,02425779
    Dominican Republic8,4253961687,190–1,14065931,5852.1
    El Salvador2531,2257876–1,09438524,9851.5
    Equatorial Guinea18914015–251825,8121.4
    Gambia, The5893,3392,8656–2028675,12116.9
    Iran, Islamic Republic of103,4071,0004–6,33396,078244,05639.4
    Kyrgyz Republic1,63015,51020422,3464214,859
    Lao People’s Democratic Republic7,690743–986,8499,40972.8
    Macedonia, former Yugoslav Republic of1862,518181,941–3593228,3793.8
    Marshall Islands
    Micronesia, Federated States of83937877
    New Zealand1,0413,5001,850–6,204187141,3220.1
    Papua New Guinea4511,15032975–4022559,3002.7
    St. Kitts and Nevis
    St. Lucia1,344271,370742184.6
    St. Vincent and the Grenadines896–128435423.7
    San Marino58654127
    São Tomé and Príncipe17422–2786201.3
    Saudi Arabia316,51898,7179,141424,376195,527217.0
    Sierra Leone8,7701,99847308–4636,04817,45534.6
    Slovak Republic4,9655,10016,73081,47455,3921,53220,950
    Solomon Islands24106–28126541.8
    South Africa13,19541,60033832,859–9,45912,815220,3605.8
    Sri Lanka1,79820,00017,671126–3,0411,21270,8681.7
    Syrian Arab Republic3721,695–1,60646036,5641.3
    Trinidad and Tobago1,7176,0001734,268–2,0131,61046,2313.5
    United Arab Emirates54,31521069155,21538,737142.5
    United Kingdom228,4501,210,5031,092,17823,424–71,874298,3061,913,07015.6
    United States6,641,756504,1504,150243,05780,6667,465,4794,899,530152.4
    Viet Nam3,54625,68638,6235,996–1,8408,64847,65818.1
    Western Samoa1,9637362,0061,142175.7
    Yemen, Republic of17,11217,0109651–22232,93528,743114.6
    Yugoslavia, Federal Republic of (Serbia/Montenegro)156,665
    Total participants15,219,6228,305,3909,076,6727,893,6582,590,499–278,27019,473,22821,433,33090.9
    Prescribed holders
    Arab Monetary Fund22,29974,35943,7991,12453,983
    Bank of Central African States138,8627,035221,862
    Bank for International Settlements197,7611,031,004284,8365,634942,922
    East African Development Bank1497155
    Eastern Caribbean Central Bank1,828811,910
    International Bank for Reconstruction and Development (World Bank)2,7816321182,268
    Islamic Development Bank2,146952,242
    Nordic Investment Bank39918417
    Total prescribed holders227,3761,114,225336,3017,1001,005,759
    General Resources Account6,037,7612,590,4997,893,658266,0521,000,655
    Developing Countries
    Net debtor countries







    All net


    With recent


    Without recent


    Holdings of SDRs as percent of cumulative allocations
    Holdings of SDRs as percent of non-gold reserves
    Table II.14KEY IMF RATES, FINANCIAL YEAR ENDED APRIL 30, 1995(In percent)
    Period BeginningSDR Interest Rate and Unadjusted Rate of Remuneration1Basic Rate of Charge1Period BeginningSDR Interest Rate and Unadjusted Rate of Remuneration1Basic Rate of Charge1
    1994November 74.685.24
    April 254.114.56November 144.715.28
    May 24.134.75November 214.755.32
    May 94.214.85November 284.755.32
    May 164.164.79December 54.935.52
    May 234.144.77December 124.985.58
    May 304.194.82December 194.985.58
    December 264.865.44
    June 64.144.77
    June 134.114.731995
    June 204.134.75January 24.895.48
    June 274.134.75January 95.005.60
    July 44.154.78January 164.885.47
    July 114.224.86January 234.965.56
    July 184.204.83January 304.965.56
    July 254.224.86February 65.005.60
    August 14.264.90February 134.975.57
    August 84.324.97February 204.935.52
    August 154.334.98February 274.955.54
    August 224.365.02March 65.005.60
    August 294.395.05March 135.185.80
    September 54.385.04March 205.185.80
    September 124.385.04March 275.115.72
    September 194.435.10April 34.905.49
    September 264.495.17April 104.835.41
    October 34.475.14April 174.775.34
    October 104.595.28April 244.775.34
    October 174.565.25May 14.824.94
    October 244.605.29
    October 314.605.29
    MemberEffective Date

    of Acceptance
    MemberEffective Date

    of Acceptance
    Antigua and BarbudaNovember 22, 1983LithuaniaMay 3, 1994
    ArgentinaMay 14, 1968LuxembourgFebruary 15, 1961
    AustraliaJuly 1, 1965MalaysiaNovember 11, 1968
    AustriaAugust 1, 1962MaltaNovember 30, 1994
    Bahamas, TheDecember 5, 1973Marshall IslandsMay 21, 1992
    BahrainMarch 20, 1973MauritiusSeptember 29, 1993
    BangladeshApril 11, 1994MexicoNovember 12, 1946
    BarbadosNovember 3, 1993Micronesia, Federated States ofJune 24, 1993
    BelgiumFebruary 15, 1961MoroccoJanuary 21, 1993
    BelizeJune 14, 1983NepalMay 30, 1994
    BoliviaJune 5, 1967NetherlandsFebruary 15, 1961
    CanadaMarch 25, 1952New ZealandAugust 5, 1982
    ChileJuly 27, 1977NicaraguaJuly 20, 1964
    Costa RicaFebruary 1, 1965NorwayMay 11, 1967
    CyprusJanuary 9, 1991OmanJune 19, 1974
    DenmarkMay 1, 1967PakistanJuly 1, 1994
    DjiboutiSeptember 19, 1980PanamaNovember 26, 1946
    DominicaDecember 13, 1979Papua New GuineaDecember 4, 1975
    Dominican RepublicAugust 1, 1953ParaguayAugust 22, 1994
    EcuadorAugust 31, 1970PeruFebruary 15, 1961
    El SalvadorNovember 6, 1946PortugalSeptember 12, 1988
    EstoniaAugust 15, 1994QatarJune 4, 1973
    FijiAugust 4, 1972St. Kitts and NevisDecember 3, 1984
    FinlandSeptember 25, 1979St. LuciaMay 30, 1980
    FranceFebruary 15, 1961St. Vincent and the GrenadinesAugust 24, 1981
    Gambia, TheJanuary 21, 1993San MarinoSeptember 23, 1992
    GermanyFebruary 15, 1961Saudi ArabiaMarch 22, 1961
    GhanaFebruary 21, 1994SeychellesJanuary 3, 1978
    GreeceJuly 7, 1992SingaporeNovember 9, 1968
    GrenadaJanuary 24, 1994Solomon IslandsJuly 24, 1979
    GuatemalaJanuary 27, 1947Spain

    South Africa
    September 15, 1973

    July 15, 1986
    GuyanaDecember 27, 1966Sri LankaMarch 15, 1994
    HaitiDecember 22, 1953SurinameJune 29, 1978
    HondurasJuly 1, 1950SwazilandDecember 11, 1989
    IcelandSeptember 19, 1983


    February 15, 1961
    IndiaAugust 20, 1994SwitzerlandMay 29, 1992
    IndonesiaMay 7, 1988ThailandMay 4, 1990
    IrelandFebruary 15, 1961TongaMarch 22, 1991
    IsraelSeptember 21, 1993Trinidad and TobagoDecember 13, 1993
    ItalyFebruary 15, 1961
    TunisiaJanuary 6, 1993
    JamaicaFebruary 22, 1963TurkeyMarch 22, 1990
    JapanApril 1, 1964UgandaApril 5, 1994
    JordanFebruary 20, 1995United Arab EmiratesFebruary 13, 1974
    KenyaJune 30, 1994United KingdomFebruary 15, 1961
    KiribatiAugust 22, 1986
    United StatesDecember 10, 1946
    KoreaNovember 1, 1988UruguayMay 2, 1980
    KuwaitApril 5, 1963VanuatuDecember 1, 1982
    Kyrgyz RepublicMarch 29, 1995VenezuelaJuly 1, 1976
    LatviaJune 10, 1994Western SamoaOctober 6, 1994
    LebanonJuly 1, 1993ZimbabweFebruary 3, 1995
    Single currencyCurrency composite
    U.S. dollarFrench francOtherSDROther
    Antigua and BarbudaBeninBhutan (Indian rupee)Libyan ArabBangladesh
    ArgentinaBurkina FasoEstonia (deutsche mark)Jamahiriya3,4Botswana
    Bahamas, The4CameroonKiribati7 (Australian dollar)MyanmarBurundi
    BarbadosCentral African Rep.Lesotho (South African rand)SeychellesCape Verde
    BelizeChadNamibia (South African rand)Cyprus8
    DjiboutiComorosSan Marino7 (Italian lira)Czech Republic4
    DominicaCongoSwaziland (South African rand)Fiji
    GrenadaCôte d’IvoireTajikistan, Republic of4,7Iceland9
    IraqEquatorial Guinea(Russian ruble)Jordan
    Marshall Islands7NigerMauritania4
    Micronesia, FederatedSenegalMorocco11
    States of7TogoNepal
    Nigeria4Slovak Republic4
    OmanSolomon Islands
    St. Kitts and NevisTonga
    St. LuciaVanuatu
    St. Vincent and theWestern Samoa
    Syrian Arab Rep.4
    More Flexible
    Flexibility Limited vis-à-vis a Single Currency or Group of CurrenciesAdjusted according to a set of indicatorsOther managed floatingIndependently floating
    Single currency1Cooperative arrangements2
    Qatar5BelgiumEcuador4AngolaIslamic State of4Mongolia
    Saudi Arabia5DenmarkNicaragua4BelarusAlbaniaMozambique
    United ArabFranceBrazilArmenia4New Zealand
    IrelandChina, People’s Republic ofAzerbaijan
    Papua New Guinea
    SpainCosta RicaRomania
    Eritrea4El Salvador
    GeorgiaRussian Federation
    Guinea-BissauFinlandSão Tomé and
    Honduras4Gambia, ThePríncipe4
    HungaryGhanaSierra Leone
    KoreaGuineaSouth Africa
    Lao People’s DemocraticGuyanaSuriname
    Macedonia, FormerIran, IslamicTanzania
    Yugoslav Republic ofRep. of4Trinidad and
    PakistanKazakhstanUnited Kingdom
    Poland4KenyaUnited States
    SloveniaKyrgvz RepnUzbekistan
    Sri LankaLebanonZaïre4
    Viet Nam
    APPENDIX III Technical Assistance and Training

    Technical assistance and training are extended by the Fund to members in a wide range of economic and financial areas, at Fund headquarters, at the Joint Vienna Institute, or through staff missions to a member country. Staff from almost every department and bureau of the Fund may be provided in response to a member’s request. Assistance may relate to a whole range of subjects, including economic policy, balance of payments adjustments programs, legal matters, debt management, exchange and trade issues, financial sector topics, accounting, statistics, and data processing.

    IMF Institute

    The IMF Institute trains officials from member and prospective member countries through courses and seminars at Fund headquarters, at the Joint Vienna Institute, and in regional or national centers. Courses in Washington are offered in Arabic, English, French, and Spanish; courses in Vienna are offered in English, with Russian interpretation, and in French; and courses in other overseas locations are offered in Arabic, English, French, or Spanish, with interpretation into local languages as needed. The Institute also arranges scholarships to train junior officials at universities in Japan and Australia, and it gives lecturing assistance to other regional or national training institutions. Institute staff also organize briefings at headquarters for visiting officials.

    During 1994/95, training at headquarters consisted of 17 courses and 5 seminars for senior officials, attended by 757 participants. The program included five ten-week courses on financial programming and policy, three eight-week courses on techniques of financial analysis and programming, two six-week courses on external sector policies, and one five-week course on the economics of transition for trainers (given jointly with the Economic Development Institute of the World Rank). The financial programming and policy course covered financial programming and adjustment issues for officials with substantial macro-economic background and practical experience; the course on techniques of financial analysis and programming provided a review of similar issues for officials with limited background in economics; while the external sector policies course gave senior and midlevel officials a deeper understanding of the issues involved in formulating such policies in the context of a macroeconomic framework for adjustment and growth. Two six-week courses on balance of payments methodology, two six-week courses on money and banking statistics, and one six-week course on government finance statistics were presented, all in collaboration with the Statistics Department. In addition, an eight-week course on public finance was presented in collaboration with the Fiscal Affairs Department. Seminars for senior officials were held on current legal issues affecting central banks (in collaboration with the Legal Department), orientation for senior officials from economies in transition, pension reform (with support from the Government of Japan), tax policy in transition economies (in collaboration with the Fiscal Affairs Department), and trade policy issues (in collaboration with the Policy Development and Review Department).

    During 1994/95, Fund training at the joint Vienna Institute consisted of 15 courses and 6 modules in the comprehensive course, attended by 491 participants. The program included one two-week course on public expenditure policy and fiscal policy management, one two-week course on the social safety net, one two-week course on value-added tax (VAT), one two-week course on public expenditure and treasury management, one two-week course on fiscal policy management, one two-week module on tax policy and administration, one two-week module on public expenditure policy and management, and one two-week module on fiscal policy management (in collaboration with the Fiscal Affairs Department); one one-week course on central bank accounting, one one-week course on large value payments systems, one one-week course on human resource management, one two-week course on bank supervision, and one two week course on foreign exchange policies and operations (in collaboration with the Monetary and Exchange Affairs Department); one four-week course on macroeconomic statistics for users and one three-week course on government finance statistics (in collaboration with the Statistics Department); one five-week course and one nine-week course on macroeconomic analysis and policy, one three-week course on macroeconomic analysis and policy (in French), two two-week modules on comparative experience of market economies, and one two-week module on macroeconomic policy.

    In addition to residential training courses in Washington and Vienna, the Institute conducted 30 overseas courses and 10 seminars for high-level officials covering some 1,100 participants. It also provided lecturing assistance to three training organizations. The courses were primarily on financial programming and policies, while the regional seminars also introduced the subject of structural adjustment policies. The Institute also organized I 7 briefings at headquarters for a total of 343 visiting officials from member countries. Except for staff and teaching materials provided by the Institute, costs of overseas training are increasingly covered either by local partners or through cofinancing arrangements with other collaborating institutions and national authorities, including the United Nations Development Program (UNDP), the European Union, the World Bank, the Asian Development Bank, the Islamic Development Bank, the U.S. Agency for International Development, and the Governments of France, Japan, and Portugal.

    The Japan–IMF Scholarship Program for Asia, financed by the Japanese authorities, was launched in September 1993. Scholarships are awarded to attend specially designed courses either at Saitama University (near Tokyo) or at the Australian National University in Canberra. The program is designed to train young officials from economies in transition for a period of one year, following which some are assigned to internships in the region. In 1994, an introductory course in China was added to the program to prepare candidates for the more advanced courses at Saitama and Australian National Universities. The second offering of the introductory course is under way with 30 participants. Nine officials have completed the one-year course at either Saitama University or the Australian National University. Another 18 officials are currently studying at these universities. Internships have been arranged for graduates of the one-year course in Australia, Hong Kong, Korea, Malaysia, New Zealand, and Thailand.

    The Institute, in cooperation with the Research Department, has also been conducting an internal training program for Fund economists. Five internal training courses and seminars took place in fiscal year 1995, attended by some 230 economists. The Institute also hosted visits by individual special participants (normally senior officials who are attached to Fund departments for short periods).

    Fiscal Affairs Department

    In 1994/95, the technical assistance program of the Fiscal Affairs Department remained diverse both geographically and by fiscal discipline. The demand for fiscal technical assistance continued to rise, with more requests received than in the previous year. Strict priorities therefore had to be established. However, with the considerable external financial support available, notably from the Government of Japan (Administered Technical Assistance Account Japan), the UNDP, and the World Bank, the department was able to deliver more technical assistance than ever before. A total of some 95 person-years of technical assistance was provided to over 100 member countries.

    Within the total, more assistance was provided to Africa, the Baltic countries, Russia and other countries of the former Soviet Union, and eastern Europe than in preceding years. Ongoing commitments, particularly for institution-building projects in areas such as tax administration and the development of treasury systems, generated a further expansion of assistance to Russia and other countries of the former Soviet Union and to certain east European economies. Nonetheless, the department had sufficient flexibility within the resources available to respond quickly to emergency situations. It was also possible to accommodate urgent, high-priority requests for policy advice—including advice on energy taxation in Russia and on social safety nets in a number of former centrally planned economies.

    The pattern of assistance continued to evolve more toward the use of fiscal experts not on the Fund staff but drawn from a panel maintained by the department. In 1994/95, there were over 270 such expert assignments. A further increase was recorded in the number of long-term resident expert assignments—that is, those lasting for six months or longer; most of the experts work on tax administration and public expenditure management, or as general fiscal advisors. Many expert assignments (both short- and long-term) were financed externally; external financing now represents over 70 percent of the total funding for experts. The largest single source of external financing was the Government of Japan (Administered Technical Assistance Account Japan); substantial support was also received, however, from the UNDP and, to a lesser extent, from the World Bank. In a few instances, member countries themselves met the full costs of an expert assignment.

    As in 1993/94, the bulk of the department’s technical assistance activity was in the disciplines of tax and customs administration and public expenditure management. These lend themselves to resident expert assignments; taken together, they accounted for some 80 percent of the total technical assistance provided. However, the department also remained active in providing policy advice. There were approximately the same number of missions as last year in tax policy and in policy matters related to social safety nets and social security. Moreover, there has been an expanding interest from member countries in receiving policy advice on general fiscal management and on intergovernmental fiscal relations (fiscal federalism). Missions to both eastern Europe and Latin America demonstrated the importance of setting appropriate financial relationships between central and local government in securing Overall fiscal control.

    The department also remained active in providing training, both at headquarters to visiting delegations (for example, from China and India) and through specific courses offered both in Africa (Ghana and Kenya) and through the Joint Vienna Institute.

    Legal Department

    During the financial year, the Legal Department continued to meet an increasing demand from member countries for assistance in drafting monetary, fiscal, and foreign exchange legislation. This continued demand reflects an increased awareness that economic stability and development require the support of an appropriate legal system.

    Although the Legal Department’s technical assistance work is primarily in banking, fiscal, and foreign exchange law, it has also included bankruptcy and securities law. In the areas of banking and foreign exchange legislation, legal assistance has included central bank and commercial banking law, law for the foreign exchange system, and exchange control regulation. The work in bankruptcy law results from requests for this essential element of commercial law for economies in transition that have considerable need to resolve insolvent enterprises. The work in securities law has related to government securities issues and the organization and powers of the capital markets regulatory authority. In the area of fiscal law, the work of the department has included corporate and personal income tax, VAT, and tax administration.

    In carrying out these tasks, the Legal Department cooperates closely with the area departments of the fund, whose programs often anticipate progress in the legal infrastructure, and with the Fiscal Affairs and Monetary and Exchange Affairs Departments, so as to ensure that the legal advice and assistance, including the drafting of legislation, accommodate and reflect sound policy objectives.

    To function effectively, a legal system must include not only adequate legislation but also an efficient institutional infrastructure for the design and administration of the law. Accordingly, increasing attention has been given to the need to extend legal assistance to the establishment of institutions and procedures that can ensure the proper conception, administration, and enforcement of legislation. The need for such extended legal assistance is particularly felt in the countries with economies in transition. In this connection, the Legal Department in cooperation with the IMF Institute prepared a program on financial sector legislation for presentation at the Joint Vienna Institute in June 1995 for judges and legislators of countries with economies in transition.

    The Legal Department performs its technical assistance in close consultation with the legal staffs of national and other international organizations, such as the World Bank and the European Bank for Reconstrction and Development (EBRD), in order to arrive at a reasonable division of technical assistance tasks and to avoid duplication of work.

    The Legal Department provides assistance to member countries partly from Fund headquarters and partly during missions. In providing this assistance, the Legal Department draws on its staff as well as on outside legal experts. During the financial year, the Legal Department provided advice on legislation to 54 member countries, often in regard to more than one area of legislation, and staff and experts traveled for the department on 55 missions to 30 member countries. In addition, members of the department participated in several seminars and workshops in Which technical assistance was provided to a number of countries under the sponsorship of the Fund, other international organizations, and central banks.

    Monetary and Exchange Affairs Department

    During 1994/95, the Monetary and Exchange Affairs Department provided technical assistance to 107 countries. This assistance was provided through 131 advisory and assessment missions, of which 106 were advisory missions. In addition, 14 workshops were delivered, of which 8 were of a regional nature. As in the previous years, comprehensive technical assistance was provided to a number of countries in transition. The department continued to rely on subject-specific technical assistance workshops for a third year, the bulk of which were targeted toward the Baltic countries, Russia, and other countries of the former Soviet Union. The interactive learning environment of the workshop setting and its focus on concrete policy and operational matters promoted the cross-fertilization of ideas and strategies, facilitating the subsequent implementation of reforms. The workshops also seek t o improve the effectiveness of technical assistance by encouraging skill building among participants. These countries accounted for almost 60 percent of staff advisory missions and about 70 percent of short-term expert assignments. Within this group, the largest pro portion of advisory missions was to the Baltic countries, Russia, and other countries of the former Soviet Union. This work amounted to about 33 percent of total advisory missions, about half of all short-term expert assignments, and just under 80 percent of workshops delivered by the department. Technical assistance to eastern and central Europe accounted for an additional 18 percent of missions and 10 percent of short-term expert assignments.

    As in the past, the department’s technical assistance program was supported by a large number of outside experts, many of them drawn from cooperating central banks to support the comprehensive programs of technical assistance, notably in the Baltic countries, Russia, and other countries of the former Soviet Union. In 1994/95, a total of 518 short-term expert assignments and 138 long-term assignments (including renewals) were undertaken. This assistance totaled about 90 person years, of which approximately 60 person-years were provided by long-term experts residing in member countries. The remaining 30 person-years consisted of short-term assignments involving either experts accompanying departmental missions or stand-alone, short-term visits organized by the department.

    External—financing from the UNDP, the Government of Japan (Administered Technical Assistance Account Japan), and other sources—for the technical assistance provided by the department has grown in importance. In 1994/95, it accounted for about 30 person-years, compared with 25 person-years in the previous financial year. In addition, in an effort to leverage project-specific parallel assistance from other donors, the department supervises financial sector technical assistance for other organizations.

    The coordination of technical assistance with cooperating central banks and other multilateral and bilateral institutions continued at a high level in 1994/95. The scope and frequency of coordination meetings, especially with Washington-based multilateral institutions, increased in 1994/95. This reflects not only intensified collaboration with other institutions providing financial sector technical assistance in the Baltic countries, Russia, and other countries of the former Soviet Union, but also technical assistance to other regions of the world. During the course of the year, the department assumed the coordinating role in the European Commission training project for the Central Bank of Russia, under which a number of cooperating central banks provided technical assistance. In addition, the department continued with its coordinating role in the reform of the Russian payment system through its chairmanship of the International Steering Committee on Payment System Reform in Russia.

    In 1994/95, the department continued with its efforts to integrate the analysis, review, and jurisdiction functions of the department with its technical assistance activities. Its principal objective is to ensure consistency in policy advice on monetary and exchange rate issues across the membership, and to improve the integration of technical assistance work on the institutional and structural aspects of monetary and exchange policy within the overall structure of fund programs.

    During the financial year, the department coordinated efforts to ensure members’ compliance with the Fund’s jurisdiction over exchange systems and, in collaboration with other departments, provided advice on technical aspects of the exchange regimes of various countries and on issues of transition to Article VIII status and full convertibility. In addition, the department is involved in the Fund’s review process. During the year, the department reviewed all countries’ reports and briefings on Article IV consultations and the use of Fund resources from the perspective of the structural and institutional aspects of monetary and exchange policy. The department’s operational research on monetary and exchange policy issues received a boost during the year with the launching of the department’s operational paper series.

    Statistics Department

    The technical assistance activities of the Statistics Department during 1994/95 matched the unprecedented levels reached in the preceding year. During 1994/95, the department fielded 150 technical assistance missions to 73 countries, 13 of which were multisectoral assignments, the same as in 1993/94, which included 15 multisectoral missions.

    The scope and composition of the department’s technical assistance program in 1994/95 reflected the effort to sustain the level of technical assistance to countries in transition, as they continue to develop their statistical systems, as well as to meet the needs of countries in other regions. Central and eastern European countries, the Baltic countries, Russia, and other countries of the former Soviet Union received about 47 percent of all technical assistance provided by the department during 1994/95, compared with about 68 percent in 1993/94. Technical assistance in 1994/95 involved 106 trips by staff, headquarters-based consultants, and outside experts on 71 missions. Only 4 of these missions were multisectoral, in contrast to 11 such missions in 1992/93 and 8 in 1993/94, reflecting the need for follow-up work in specific areas of statistics after the diagnostic missions conducted in earlier years.

    In addition to providing follow-up technical assistance to countries in transition, the department increased substantially its level of technical assistance to other member countries, in particular to those that were actual or prospective users of Fund resources or whose statistical infrastructure was at an early stage of development. The number of missions to these countries increased from 49 in 1993/94 to 79 in 1994/95. The department’s technical assistance activities were again principally concentrated in the areas of monetary, balance of payments, and government finance statistics, which together accounted for about 64 percent of the total technical assistance provided during 1994/95. In addition, partly in response to the operational needs of the Fund, the department fielded 39 missions on consumer and producer prices, national accounts, and external trade statistics, 27 of which were directed to central and eastern European countries, the Baltic countries, Russia, and other countries of the former Soviet Union.

    The provision of technical assistance in 1994/95 continued to require the use of an increasing number of outside experts for short-, medium-, and long-term assignments. During the year, there were 95 expert assignments, 12 of which were long term. About half of the assignments using such experts—41 short-term and 6 long-term—were financed with resources made available to the Fund by the Japanese Government under the Administered Technical Assistance Account Japan, and 6 under the Executing Agency Agreement with the UNDP. In addition, a significant amount of technical assistance was provided through participation of staff of the department in 16 missions of other departments, 5 of which were to countries of the former Soviet Union.

    The department continued to offer training to national statisticians on statistical methodologies and their application, through courses offered at the IMF Institute at Fund headquarters and at the Joint Vienna Institute. The department’s training program expanded substantially in 1994/95 through the provision of regional and local seminars, several of which were funded by Administered Technical Assistance Account Japan resources. The department conducted six regional seminars covering balance of payments, government finance, and monetary statistics for representatives from the Latin American region, the Arab Monetary Fund, the Central Bank of the West African States (BCEAO), and the Bank of Central African States (BEAC). A seminar on quarterly national accounts statistics was held in Moscow for officials from the Russian Federation, in cooperation with the Organization for Economic Cooperation and Development (OECD). Two seminars for Chinese officials were conducted during the year, one on monetary statistics held in China, and the other on government finance statistics at Fund headquarters.

    Treasurer’s Department

    Technical assistance requests received by the Treasurer’s Department are in areas related to members’ financial relations with the Fund. The demand for such assistance—on the establishment and maintenance of the Fund accounts, the Fund’s financial organization and operations, and the conduct of transactions by members with the Fund—remained high in 1994/95. The main recipients of technical assistance provided by the Treasurer’s Department have been new members, in particular the transition economies, and members that previously had not had extensive relations with the Fund. Assistance has covered areas such as accounting for Fund-related assets and liabilities and a member’s position in the Fund, recording and reporting on financial operations and transactions with the Fund, and the Fund’s operational budget. In addition to technical assistance missions, Treasurer’s Department staff participated in seminars and workshops for officials of the central banks and finance ministries of member countries, including a seminar at the Joint Vienna Institute to introduce officials from the central banks of the Baltic countries, Russia, and other countries of the former Soviet Union to a proposed chart of accounts for central banks and to accounting for a member’s position in the Fund in the balance sheet of the central bank. Several aide-memoire on specific accounting questions raised by members were prepared by Treasurer’s Department staff in 1994/95.

    Bureau of Computing Services

    The Bureau of Computing Services maintains a narrowly focused program of technical assistance, provided to member countries in direct support of the Fund’s economic and financial operations. The Bureau assists in the modernization of computer systems in central banks or finance ministries and in the planning and development of systems for processing, analyzing, and reporting of economic, financial, and administrative information. During 1994/95, short-term missions were undertaken to Tanzania, Cambodia, the Lao People’s Democratic Republic, Viet Nam, Georgia, Kazakhstan, the Republic of Yemen, and Haiti; the Bureau received five delegations from member countries for training, as well as visitors for technical discussions, during the financial year. Technical assistance was provided by external experts (108 weeks), contractuals (43 weeks), and staff (63 weeks).

    Because of the expanding role of computer technology and networks within member country institutions, and given the increased importance placed on members’ accurate maintenance and reporting of economic and financial data, the number of requests received by the Fund for short-term computer technical assistance is expected to grow.

    APPENDIX IV Relations with Other International Organizations and External Relations

    Relations with Other International Organizations

    Maintaining close relations with other international and regional institutions that share common interests and goals has been a long-standing objective of the Fund. The last-changing world economic situation has further strengthened the need for close cooperation among these organizations in areas such as international monetary and financial matters, developmental issues, and the environment. In addition to close collaboration with the World Hank, Fund staff work closely with the United Nations and its specialized agencies, the General Agreement on Tariffs and Trade (GATT), the Organization for Economic Cooperation and Development (OECD), the European Commission, the Bank for International Settlements (BIS), and several other organizations.

    Liaison with international and regional organizations is provided by the three offices of the Fund located away from headquarters. The Director of the Fund Office in the United Nations and Special Representative to the United Nations monitors developments at the United Nations and ensures that the collaborative relationship with the UN and its specialized agencies is maintained and strengthened. The activities of the Office in Europe, which is located in Paris, are largely associated with maintaining close contact with the BIS, the European Commission, and the OECD, whereas the Geneva Office monitors, reports on, and analyzes the activities of such institutions as the GATT, the World Trade Organization (WTO), the UN Conference on Trade and Development (UNCTAD), the International Labor Organization (ILO), and other organizations that are based in Geneva. Staff and technical experts from headquarters supplement the work of these offices and provide operational linkages when the need arises. Fund staff also attend other forums, meetings, and seminars, such as those of the regional economic and financial organizations in Africa, Asia and the Pacific, Latin America and the Caribbean, and the Middle East, including the regional development banks.

    The Fund and the World Bank recently celebrated the fiftieth anniversary of the Bretton Woods Conference, and, since their inception, the two organizations have enjoyed a unique relationship. Their close affiliation involves joint participation in missions, attendance at each other’s Executive Board meetings and seminars, joint preparation of Policy Framework Papers, and papers on the environment. Cooperation between these institutions also includes the regular exchange of information and documents and, recently, the design and implementation of social policies. Fund staff regularly attend aid coordination meetings and donors’ conferences held under the auspices of the World Bank.

    The Fund has continued its cooperative arrangements with the Contracting Parties concerning activities of the GAIT Council and several other standing GATT committees. In its Madrid Declaration of October 1994, the Interim Committee called for close cooperation between the Fund and the WTO, which had been established under the Final Act of the Uruguay Round and which came into existence on January 1, 1995. Existing arrangements for the presentation of the Fund’s report at consultations of the GATT Committee on Balance of Payments Restrictions were extended to the WTO, including consultations in the area of services. Informal contacts between Fund and WTO staff have begun under the guidance of the Executive Board, with a view to establishing a comprehensive framework for collaboration with the WTO that builds on the existing Fund-GATT relationship.

    As one of the sponsoring institutions, the Fund continues its active participation in the programs of the Joint Vienna Institute. The Joint Vienna Institute is a cooperative venture whose purpose is to provide training to economies in transition to market-based systems. It offers a wide variety of courses in economic and financial management and administration for public officials, training officers, and private sector executives from countries of central and eastern Europe, the Baltic countries, Russia, and other countries of the former Soviet Union, as well as from similar economies in Asia. In addition to the Fund, the other sponsors of the Joint Vienna Institute are the HIS, the European Hank for Reconstruction and Development (EBRD), the OECD, and the World Bank.

    An important aspect in maintaining close relations with other international organizations is the Managing Director’s participation in meetings and seminars, most notably those of the UN, where he addressed the High-Level Meeting of the UN Economic and Social Council (ECOSOC) in New York on June 27, 1994 and the UN International Conference on Population and Development held in Cairo on September 5, 1994. In February 1995, the Managing Director participated in the BIS Central Bank Governors’ meeting in Basle and attended the meeting of the UN Administrative Committee on Coordination (ACC) in Vienna. He addressed the UN World Summit for Social Development in Copenhagen on March 7, 1995 and will again address the High-Level Meeting of ECOSOC in Geneva on July 6, 1995.

    External Relations

    Information and Public Affairs

    During the financial year, the role and functions of the Fund received unprecedented public scrutiny, as the fiftieth anniversary of the Bretton Woods Conference and accompanying events, evolving developments in the countries in transition, especially Russia and Ukraine, and the events surrounding Mexico’s financial crisis and its aftermath combined to locus global attention on the Fund. Questions about the future role of the Fund (as defined in well-publicized reports such as that produced by the Bretton Woods Commission),1 the campaign against the Fund and World Bank spearheaded by the “50 Years Is Enough” coalition of international nongovernmental organizations (NGOs), and the Fund and Bank’s own commemorative Anniversary Conference in Madrid2 all contributed to a lively worldwide debate about the functions and policies of the Fund.

    To respond to these demands, the Fund continued to enlarge its efforts to explain the work and policies of the institution to an ever-widening global audience. The Managing Director, the Deputy Managing Directors, and other senior staff delivered speeches on a wide range of domestic, regional, and global economic issues in both national and international forums. To complement this effort, the Managing Director held press conferences for the national and international press, both at Fund headquarters and overseas; in the interests of greater openness about its work, Fund management and senior staff gave an increasing number of on-the-record interviews to a broad spectrum of media, both print and electronic; and Fund staff members delivered papers and participated in a wide range of conferences, seminars, and symposiums.

    The Fund’s contacts with the international news media continued to expand during the year. Management and senior staff actively developed these contacts through interviews, press conferences, and briefings to the press, both at headquarters and in the field, to explain major issues and developments. As of the end of the financial year, nearly 300 staff members had taken media training courses to prepare themselves for press relations at headquarters and abroad.

    During the financial year, the Fund also strengthened its public affairs activities with NGOs, the U.S. Congress, research institutes, private businesses, labor unions, and universities. Economic forums, international seminars, and briefings were organized at Fund headquarters for the general public, visiting parliamentarians, labor groups, and NGO representatives. In addition, a seminar on economic reform in Russia and other economies in transition was held in Moscow for 80 representatives from the academic community in Russia and other countries of the former Soviet Union (a number of leading financial and economic journalists also attended as observers); and a seminar on structural adjustment was organized for 55 labor leaders and representatives of international labor groups from central and eastern Europe in Baden-bei Wien, Austria. Several special public affairs projects were undertaken to commemorate the fiftieth anniversary of the Bretton Woods Conference, including an exhibit mounted at the Annual Meetings site in Madrid and later displayed at headquarters.


    The higher level and intensity of the Fund’s external relations activity during the financial year entailed more extensive use of traditional instruments for informing members and the public about the Fund’s activities and related monetary and financial issues, as well as the introduction of new ways of communicating with a wider audience. The publication program continued to expand, and studies were initiated—on strategic planning for publications, optimal dissemination of non-English publications, and enhanced data collection for order fulfillment and distribution—to improve efficiency and dissemination within existing resources. Time-series information from the Fund’s statistical data bases continued to be made available on CD-ROM or machine-readable magnetic tape, as well as in print, and for the first time a selection of Fund information was offered on the Internet (address:; or, through the World Wide Web: gopher:// In addition to publication in Russian of selected books and Economic Reviews, production began on a series of five video documentaries in Russian to provide accessible, informational support for the Fund’s efforts to assist Russia, Ukraine, and other countries of the former Soviet Union in their transition to market economies.

    The publication program expanded qualitatively as well, with an effort to make the contents of publications more timely and informative through greater coverage of economic developments in individual countries. In the 1994 Annual Report, the coverage of Article IV consultations with member countries was substantially increased to provide regional balance and to include summaries of economic background and data on member countries. Throughout 1994, the World Economic Outlook, published twice a year in English, French, Spanish, and Arabic and made available in Chinese through China Financial Publishing House, included increased presentation of actual data and projections for major economic and financial indicators in selected individual industrial, developing, and transition economies. The detail and coverage of this country analysis was further augmented in the spring 1995 World Economic Outlook exercise. In November 1994, the Fund launched a new publication series, IMF Staff Country Reports, to make documentation from its most recent Article IV consultations, with the member country’s approval, available to the public. By the end of the financial year, 46 volumes had been issued in the series. To increase public awareness of Fund research and analysis on country, policy, and systemic issues, in addition to the annual Catalog of Publications And ongoing promotional activities, an index of IMF Working Papers and Papers on Policy Analysis and Assessment was published, listing studies issued in October 1986 through March 1995; an overview of research activities of the Fund from January 1991 through December 1993, categorized in ten subject areas, was also published during the year.

    In the May and October 1994 published editions and the April 1995 press edition, the World Economic Outlook devoted special attention to job creation and policies for sustained growth in the industrial countries; performance lags, surges in capital flows, and policy challenges in the developing countries; stabilization, adjustment, disinflation, and foreign direct investment in the transition economies; global economic achievements since the Bretton Woods Conference; and the adequacy of global saving. Other volumes issued in the series of World Economic and Financial Surveys included background studies for the World Economic Outlook and studies of international capital markets (including bond market volatility, hedge funds, and regulation of derivatives), issues in international exchange and payments systems, developments in international trade policies with reference to completion of the Uruguay Round, official and private market financing for developing countries, and officially supported export credits.

    Thirteen Occasional Papers were published during the financial year; topics covered were non-oil commodity prices, exchange rates and “fundamentals,” the scope for improving the international monetary system, regional issues in sub-Saharan Africa and the Asia-Pacific Economic Cooperation Council, and economic developments in Poland, China, Morocco, Singapore, Lebanon, Uganda, Colombia, and Japan.

    The series of Economic Reviews, established in 1992 to report developments in countries of central and eastern Europe, the Baltic countries, Russia, and other countries of the former Soviet Union, was expanded in 1993 to include other countries; among this latter group in 1994 were Cambodia and Viet Nam. Thirteen Economic Reviews were published in English during the financial year; selected Economic Reviews continued to be issued in Russian editions.

    The Fund published seven books in English on various economic and financial issues during 1994/95, among them the proceedings of the Fund-World Bank Anniversary Conference held in Madrid on September 29–30, 1994. In Staff Papers, the Fund’s quarterly economic journal, the number of articles written by consultant-scholars, providing analytical perspective from outside the Fund, increased during the year. The IMP Survey, the bi-weekly newsletter summarizing Fund policies and activities and world developments related to the Fund’s work, expanded its coverage to include interviews with senior Fund officials, more country articles, more detailed data on lending and technical assistance, and more information on the availability of Fund documents and publications. The annual IMFSurveySupplement on the IMF was made available in Arabic. The monthly IMP Memorandum for the press continued to summarize key indicators from the Fund’s major statistical publications. During the year, Staff News, the quarterly internal newsletter of Fund staff”, included stories about the increased involvement of the staff in voluntary community service in the greater Washington, D.C. metropolitan area.

    A complete list of publications issued during the financial year appears in Table IV.1.

    Reports and Other Documents
    Annual Report of the Executive Board for the Financial Tear Ended April 30, 1994
    (English, French, German, and Spanish). Free.
    Exchange Arrangements and Exchange Restrictions, Annual Report 1994
    $70.00 ($35.00 to full-time university faculty members and students).
    Selected Decisions of the International Monetary Fund and Selected Documents, Nineteenth Issue
    (English). Free.
    IMF Staff Country Reports Released to the Public During 1994/95
    No. 94/1ZimbabweRecent Economic Developments
    No. 94/2LesothoRecent Economic Developments
    No. 94/3TogoRecent Economic Developments
    No. 94/4MalaysiaRecent Economic Developments
    No. 94/5GuineaStatistical Annex
    No. 94/6ZambiaStatistical Appendix
    No. 94/7BhutanRecent Economic Developments
    No. 94/8CroatiaBackground Notes and Statistical Appendix
    No. 94/9Burkina FasoStatistical Annex
    No. 94/10El SalvadorRecent Economic Developments
    No. 94/11MaliRecent Economic Developments
    No. 94/12St. Vincent and the GrenadinesRecent Economic Developments
    No. 94/13Western SamoaRecent Economic Developments
    No. 94/14SeychellesStatistical Annex
    No. 94/15EthiopiaRecent Economic Developments
    No. 95/1BotswanaBackground Papers and Statistical Appendix
    No. 95/2Costa RicaRecent Economic Developments
    No. 95/3CyprusRecent Economic Developments
    No. 95/4EritreaRecent Economic Developments
    No. 95/5CameroonBackground Papers and Statistical Appendix
    No. 95/6ComorosRecent Economic Developments
    No. 95/7KazakhstanBackground Paper and Statistical Appendix
    No. 95/8BelgiumSelected Background Issues
    No. 95/9Cape VerdeBackground Issues and Statistical Update
    No. 95/10FijiRecent Economic Developments
    No. 95/11MongoliaBackground Paper
    No. 95/12SudanRecent Economic Developments
    No. 95/13ColombiaRecent Economic Developments
    No. 95/14BelizeRecent Economic Developments
    No. 95/15SurinameRecent Economic Developments
    No. 95/16Trinidad and TobagoEconomic Developments and Selected Issues
    No. 95/17TunisiaStatistical Annex
    No. 95/18BangladeshStatistical Appendix
    No. 95/19HondurasRecent Economic Developments
    No. 95/20MauritaniaRecent Economic Developments
    No. 95/21South AfricaSelected Economic Issues
    No. 95/22SwitzerlandRecent Economic Developments
    No. 95/23UzbekistanBackground Paper and Statistical Appendix
    No. 95/24BoliviaStatistical Annex
    No. 95/25JamaicaStatistical Appendix
    No. 95/26NorwayRecent Economic Developments
    No. 95/27TurkmenistanBackground Paper and Statistical Appendix
    No. 95/28VanuatuRecent Economic Developments
    No. 95/29AustraliaBackground Material
    No. 95/30NigerStatistical Annex
    No. 95/31ChadBackground Issues and Statistical Update
    $15.00 each.
    Periodic Publications

    Balance of Payments Statistics Yearbook Vol. 45. A two-part yearbook, $56.00 a year.

    Direction of Trade Statistics

    Quarterly, with yearbook. $96.00 a year. $48.00 to full-time university faculty members and students. $30.00 for yearbook only.

    Government Finance Statistics Yearbook

    Vol. 18, 1994 (Introduction and titles of lines in

    English, French, and Spanish). $54.00.

    International Financial Statistics Monthly, with yearbook (English, French, and Spanish) $218.00 a year. $109.00 to full-time university faculty members and students. $50.00 for yearbook only.

    Staff Papers

    Four times a year. $50.00 a year. $25.00 to full-time university faculty members and students. The five publications listed above may be obtained at a special rate of $330.00 ($165.00 to full-time university faculty members and students). Magnetic tape subscriptions to Balance of Payments Statistics Year-book, Direction of Trade Statistics, Government Finance Statistics Yearbook, and International Financial Statistics are also available. International Financial Statistics is also available on CD-ROM. Price information is available on request.

    The IMF Committee on Balance of Payments Statistics, Annual Report, 1994.

    Finance and Development

    Issued jointly with the World Bank; quarterly

    (English, Arabic, Chinese, French, German,

    Portuguese, and Spanish). Free.

    Airspeed delivery, $20.00.

    IMF Survey

    Twice monthly, but only once in December (English, French, and Spanish). Private firms and individuals are charged at an annual rate of $79.00.

    Occasional Papers

    No. 112. The Behavior of Non-Oil Commodity Prices By Eduardo Borensztein, Mohsin S. Khan, Carmen M. Reinhart, and Peter Wickham.

    No. 113. Poland: The Path to a Market Economy By Liam P. Ebrill, Ajai Chopra, Charalambos Christofides, Paul Mylonas, Inci Otker, and Gerd Schwartz.

    No. 114. Economic Reform in China: A New Phase By Wanda Tseng, Hoe Ee Khor, Kalpana Kochhar, Dubravko Mihaljek, and David Burton.
    No. 115. Exchange Rates and Economic Fundamentals: A Framework for Analysis By Peter B. Clark, Leonardo Bartolini, Tamim Bayoumi, and Steven Symansky.

    No. 116. Improving the International Monetary System: Constraints and Possibilities By Michael Mussa, Morris Goldstein, Peter B. Clark, Donald J. Mathieson, and Tamim Bayoumi.

    No. 117. Resilience and Growth Through Sustained Adjustment: The Moroccan Experience By Saleh M. Nsouli, Sena Eken, Klaus Enders, Van-Can Thai, Jӧrg Decressin, and Filippo Cartiglia, with Janet Bungay.

    No. 118. Sub-Saharan Africa: Growth, Savings, and Investment

    By Michael T. Hadjimichael, Dhaneshwar Ghura, Martin Mühleisen, Roger Nord, and E. Murat Ucer.

    No. 119. Singapore: A Case Study in Rapid Development

    Edited by Kenneth Bercuson.

    No. 120. Economic Dislocation and Recovery in Lebanon

    By Sena Eken, Paul Cashin, S. Nuri Erbas, Jose Martelino, and Adnan Mazarei.

    No. 121. Uganda: Adjustment with Growth, 1987–94 By Robert L. Sharer, Hema R. De Zoysa, and Calvin A. McDonald.

    No. 122. Capital Flows in the APEC Region Edited by Mohsin S. Khan and Carmen M. Reinhart.

    No. 123. Comprehensive Tax Reform: The Colombian Experience Edited by Parthasarathi Shome.

    No. 124. Saving Behavior and the Asset Price “Bubble”

    in Japan: Analytical Studies

    Edited by Ulrich Baumgartner and Guy Meredith.

    Occasional Papers Nos. 80–86 are available for $10.00 each, with a special price of $7.50 each to full-time university faculty members and students, and Nos. 87–124 are $15.00 each, with a special price of $12.00 each to full-time university faculty members and students.

    World Economic and Financial Surveys

    World Economic Outlook: A Survey by the Staff of the International Monetary Fund Twice a year (May and October) (Arabic, English, French, and Spanish).

    $34.00 ($23.00 to full-time university faculty members and students).
    International Capital Markets: Developments,

    Prospects, and Policy Issues

    By a staff team led by Morris Goldstein

    and David Folkerts-Landau.

    $20.00 ($12.00 to full-time university faculty

    members and students).

    Issues in International Exchange and Payments Systems By a staff team from the Monetary and Exchange Affairs Department.

    $20.00 ($12.00 to full-time university faculty members and students).

    International Trade Policies: The Uruguay Round

    and Beyond

    Vol. I. Principal Issues

    By a staff team led by Naheed Kirmani.

    $20.00 ($12.00 to full-time university faculty

    members and students).

    International Trade Policies: The Uruguay Round and Beyond

    Vol. II. Background Papers

    By a staff team led by Naheed Kirmani.

    $20.00 ($12.00 to full-time university faculty members and students).

    Officially Supported Export Credits:

    Recent Developments and Prospects

    By Michael G. Kuhn, Balazs Horvath,

    and Christopher J. Jarvis.

    $20.00 ($12.00 to full-time university faculty

    members and students).

    Private Market Financing for Developing Countries By a staff team in the Policy Development and Review Department.

    $20.00 ($12.00 to full-time university faculty members and students).


    Approaches to Exchange Rate Policy Edited by Richard C. Barth and Chorng-Huey Wong $22.00 ($20.00 to full-time university faculty members and students).

    Central Banking Technical Assistance

    to Countries in Transition

    Edited by J.B. Zulu, Ian S. McCarthy, Susana

    Almuina, and Gabriel Sensenbrenner.


    Coordinating Stabilization and Structural Reform Edited by Richard C. Barth, Alan R. Coe, and Chorng-Huey Wong.

    $22.00 ($20.00 to full-time university faculty members and students).
    Fifty Years After Bretton Woods: The Future of the IMF and the World Bank

    Edited by James M. Boughton and K. Sarwar Lateef. $21.00.

    Financial Policies and Capital Markets in Arab Countries

    Edited by Said El-Naggar. $15.00.

    Frameworks for Monetary Stability: Policy Issues and Country Experiences

    Edited by Tomas J.T. Balino and Carlo Cottarelli. $35.00. The Payment System: Design, Management, and Supervision (Russian) Edited by Bruce J. Summers. $22.50.

    Tax Policy Handbook

    Edited by Parthasarathi Shome.


    IMF Economic Reviews: 1993—Russian

    No. 1. Armenia

    No. 3. Azerbaijan

    No. 5. Kazakhstan

    No. 6. Latvia

    No. 7. Lithuania

    No. 9. Georgia

    No. 11. Belarus

    No. 12. Kyrgyz Republic

    IMF Economic Reviews: 1994

    No. 1. Financial Relations Among Countries of the

    Former Soviet Union (Russian)

    No. 2. Trade Policy Reform in the Countries of the

    Former Soviet Union (Russian)

    No. 4. Uzbekistan (Russian)

    No. 5. Albania (English)

    No. 6. Lithuania (English)

    No. 7. Estonia (English and Russian)

    No. 8. Cambodia (English)

    No. 9. Azerbaijan (English and Russian)

    No. 10. Latvia (English)

    No. 11. Belarus (English)

    No. 12. Moldova (English)

    No. 13. Viet Nam (English)

    No. 14. Tajikistan (English and Russian)

    No. 15. Georgia (English)

    No. 16. Russian Federation (English and Russian) No. 17. Ukraine (English and Russian)

    $15.00 each.

    No. 45. Financial Organization and Operations of the IMF

    By the Treasurer’s Department. Third edition (French, Spanish, Russian). Free.

    No. 47. Social Dimensions of the IMF’s Policy Dialogue By the Fiscal Affairs and Policy Development and Review Departments (English). Free.


    The Baltic States in Transition

    By John M. Starrels (Russian). Free.
    The IMF at Fifty: Facing the Challenges Ahead By Michel Camdessus (English, French, Spanish). Free.

    IMF Working Papers and Papers on Policy Analysis and Assessment: October 1986–March 1995 (English). Free.

    Research Activities of the International Monetary Fund: January 1991–December 1993(English). Free.

    Pacific Island IMF Member Countries: Recent Economic Developments and Medium-Term Prospects

    By Christopher Browne (English). Free.

    Copies of the Fund’s publications may be obtained from Publication Services, International Monetary Fund, 700 19th Street, N.W., Washington, D.C. 20431, U.S.A.

    Telephone: (202) 623-7430

    Telefax: (202) 623-7201


    Additional information about the Fund and its publications is available on the Internet (address:; or, through the World Wide Web: gopher://

    APPENDIX V Principal Policy Decisions of the Executive Board

    A. Surveillance over Exchange Rate Policies—Review and Amendment of 1977 Document

    The Executive Board has reviewed the document entitled “Surveillance over Exchange Rate Policies” attached to Decision No. 5392-(77/63),1 adopted April 29, 1977, as amended, as required by paragraph 2 of that decision. In light of this review, it decides that paragraphs 2 and 3 of the section entitled “Principles of Fund Surveillance over Exchange Rate Policies” shall read as follows:

    • 2. In its surveillance of the observance by members of the principles set forth above, the Fund shall consider the following developments as among those which might indicate the need for discussion with a member:

      • (i) protracted large-scale intervention in one direction in the exchange market;

      • (ii) an unsustainable level of official or quasi-official borrowing, or excessive and prolonged short-term official or quasi-official lending, for balance of payments purposes;

      • (iii) (a) the introduction, substantial intensification, or prolonged maintenance, for balance of payments purposes, of restrictions on, or incentives for, current transactions or payments, or

        • (b) the introduction or substantial modification for balance of payments purposes of restrictions on, or incentives for, the inflow or outflow of capital:

      • (iv) the pursuit, for balance of payments purposes, of monetary and other domestic financial policies that provide abnormal encouragement or discouragement to capital flows;

      • (v) behavior of the exchange rate that appears to be unrelated to underlying economic and financial conditions including factors affecting competitiveness and long-term capital movements; and

      • (vi) unsustainable flows of private capital.

    • 3. The Fund’s appraisal of a member’s exchange rate policies shall be based on an evaluation of the developments in the member’s balance of payments, including the size and sustainability of capital flows, against the background of its reserve position and its external indebtedness. This appraisal shall be made within the framework of a comprehensive analysis of the general economic situation and economic policy strategy of the member, and shall recognize that domestic as well as external policies can contribute to timely adjustment of the balance of payments. The appraisal shall take into account the extent to which the policies of the member, including its exchange rate policies, serve the objectives of the continuing development of the orderly underlying conditions that are necessary for financial stability, the promotion of sustained sound economic growth, and reasonable levels of employment.

      The next review of the document shall be conducted no later than September 15, 1996.

    Decision No. 10950-(95/37)

    April 10, 1995

    B. Access Policy—Guidelines on Access Limits—Review

    1. Pursuant to Decision No. I0181-(92/132),2 adopted November 3, 1992, the Fund has reviewed the guidelines and the limits for access to the Fund’s general resources under the credit tranches and the extended Fund facility, and decides that during a period of three years from October 24, 1994, the annual access limit shall be increased from 68 percent of quota to 100 percent of quota. Accordingly, during that period, the Fund may approve outright purchases in the credit tranches and stand-by or extended arrangements for up to a total annual amount of purchases of 100 percent of quota. During that period, the other provisions of Decision No. 10181-(92/132) will continue to apply.

    2. This decision shall be reviewed annually, at the time of the reviews prescribed by Decision No, 10181(92/132).

    Decision No. 10819-(94/95)

    October 24, 1994

    C. Compensatory and Contingency Financing Facility—Compensatory Financing of Fluctuations in Cost of Cereal Imports—Extension

    Paragraph 23 of Section IV of the Decision on the Compensatory and Contingency Financing Facility (Decision No. 8955-(88/126),3 adopted August 23, 1988, as amended), shall be amended to read as follows:

    Until January 13, 1996, the Fund will be prepared to extend financial assistance subject to the provisions of this Decision to members that encounter a balance of payments difficulty produced by an excess in the cost of their cereal imports.

    Decision No. 10725-(94/58)

    June 24, 1994

    D. Operational Budget—Review of Guidelines for Allocation of Currencies

    The Fund has reviewed the guidelines for the use of currencies under the Fund’s operational budget approved by Decision No. 10279-(93/19),4 adopted February 10, 1993, and decides that they remain appropriate. These guidelines will be reviewed again by the Fund not later than December 31, 1996.

    Decision No. 10904-(95/13)

    February 6, 1995

    E. Official Clearing and Payments Arrangements—Temporary Exemption from Three-Month Rule

    Pending completion of the forthcoming review of the jurisdictional aspects of official clearing and payments arrangements, the Fund shall not object to the maintenance in existing official clearing or payments arrangements of settlement provisions that do not require the settlement of balances at least as frequently as every three months if such provisions were in force before July 1, 1994.

    Decision No. 10749-(94/67)

    July 20, 1994

    F. Fund’s Income Position

    (a) Rate of Charge as of November 1, 1994; and Retroactive Reduction of Rate of Charge for FY 1995 and Increase in Net Income Target for FY 1996

    Effective November 1, 1994, the proportion of the rate of charge under Rule I-6(4)(a) shall be 112.0 percent. Net income for financial year (FY) 1995 in excess of 5 percent of the Fund’s reserves at the beginning of the year shall be used first to reduce retroactively the proportion of the rate of charge under Rule 1-6(4)(a) for the period May 1, 1994 to October 31, 1994 to the extent possible but not below 112.0 percent. Any remaining amount of net income at the end of FY 1995 in excess of the target amount shall be used to reduce further the proportion effective May I, 1994. If net income for FY 1995 is below the target amount for that year, the net income target for FY 1996 shall be increased by the equivalent of that shortfall.

    Decision No. 10850-(94/107)

    December 9, 1994

    (b) Disposition of Net Income for FT 1995

    The Fund’s net income for financial year 1995 of SDR 85,073,615 shall be placed to the Special Reserve after the end of the financial year.

    Decision No. 10957-(95/40)

    April 14, 1995

    (c) Net Income Target and Rate of Charge on Use of Fund Resources for FT 1996

    1. The target amount of net income for financial year 1996 shall be 5 percent of the Fund’s reserves at the beginning of the financial year.

    2. Effective May 1, 1995, the proportion of the rate of charge referred to in Rule 1-6(4) to the SDR interest rate under Rule T-l shall be 102.5 percent.

    3. Any net income for financial year 1996 in excess of the target amount of net income of 5 percent of the Fund’s reserves at the beginning of that financial year shall be used to reduce retroactively the proportion of the rate of charge to the SDR interest rate for financial year 1996. If net income for financial year 1996 is below the target amount for that year, the net income target for financial year 1997 shall be increased by the equivalent of that shortfall.

    Decision No. 10962-(95/41)

    April 19, 1995

    G. Stand-By and Extended Arrangements Approved During 1988–91—Review of Experience

    1. Pursuant to Decision No. 9790-(91/106),5 adopted July 31, 1991, the Fund has reviewed the experience with recent programs supported by the stand-by and extended arrangements and decides that the guidelines on conditionality will remain in force in the present circumstances.

    2. The Fund decides to postpone until an appropriate time the review of the provisions of the extended Fund facility envisaged in Section 3 of Decision No. 9790-(91/106).

    3. The Fund will again review the experience with programs supported by stand-by and extended arrangements at an appropriate time pursuant to paragraph 12 of the guidelines on conditionality.

    Decision No. 10723-(94/58)

    June 30, 1994

    H. Increase in Quotas of Members

    (a) Periods for Consent to and Payment for Increases in Quotas Under Ninth General Review—Extension

    1. Pursuant to Paragraph 4 of the Resolution of the Board of Governors No. 45-2, “Increases in Quotas of MembersNinth General Review,” the Executive Board decides that notices in accordance with Paragraph 2 of that Resolution must be received in the Fund before 6:00 p.m., Washington time, on June 30, 1995.

    2. Pursuant to Paragraph 5 of the Board of Governors Resolution 45-2, the Executive Board decides that each member shall pay to the Fund the increase in its quota under the Ninth Review within 961 days after the later of (a) the date on which it notifies the Fund of its consent or (b) November 11,1992.

    Decision No. 10872-(95/1)

    December 23, 1994

    (b) Tenth General Review of Quotas—Report to Board of Governors and Proposed Resolution

    1. Article III, Section 2(a) of the Articles of Agreement provides that “[t]he Board of Governors shall at intervals of not more than five years conduct a general review, and if it deems it appropriate propose an adjustment, of the quotas of the members.” This Report and the attached Resolution on the Tenth General Review of Quotas are submitted to the Board of Governors in accordance with Article III, Section 2.

    2. The five-year period prescribed by Article III, Section 2(a) for the Tenth General Review of Quotas ended on March 31, 1993, five years from the date on which the Ninth General Review of Quotas should have been concluded. As the Tenth General Review was not completed by March 31,1993, the Board of Governors decided to continue its review of quotas under the Tenth General Review (Resolution No. 48-3,6 adopted April 14, 1993). That Resolution was as follows:


      • That the Board of Governors, having noted the report of the Executive Board entitled Increases in Quotas of Members—Tenth General Review, hereby resolves to continue its review under Article III, Section 2(a) and requests the Executive Board to complete its work on this matter and to submit a report together with appropriate proposals to the Board of Governors not later than December 31, 1994.

    3. The Executive Board established a Committee of the Whole on the Tenth General Review of Quotas on March 31, 1992 in accordance with Rule D-3. The Committee met on March 18, 1994 and on December 12, 1994. The Committee undertook a substantive review of the issues relating to the Tenth Review including a review of the quota formulas, as called for in the Executive Board’s report to the Board of Governors on the Ninth Review.

    4. The Executive Board reviewed the working of the quota formulas and the results of quota calculations based on the present five formulas and updated economic data for members through 1990. The Executive Board noted that the results of the quota formulas purport to give a reasonably comprehensive measure of the relative economic size of member countries, and the Executive Board is of the view that the quota formulas are broadly working as intended. However, in connection with its work in connection with the Eleventh General Review, the Executive Board intends to examine further the extent to which a number of countries have actual quota shares that remain substantially out of line with their shares in the total of calculated quotas, issues relating to the long-run decline in the share of developing countries in the total of Fund quotas, the use of population and other variables in the quota formulas, and a review of the methodology employed in calculating quotas for the successor states of the former Soviet Union.

    5. In connection with its work on the Tenth General Review, the Executive Board has considered the adequacy of the quotas of members in the Fund. The Executive Board is of the view that the overall size of the Fund is for the time being broadly sufficient to enable the Fund to promote effectively its purposes and to fulfill its central role in the international monetary system. In coming to this conclusion, the Executive Board noted that the increase in quotas under the Ninth General Review, which came into effect in late 1992, provided the Fund with substantial usable resources. Furthermore, the recent increase in access limits to the Fund’s resources over the next three years, the establishment of the systemic transformation facility in April 1993, and the possible extension, with augmented access, of that facility, as well as the possible development of further facilities, would enable the Fund to meet members’ needs for balance of payments assistance in the period ahead. The Executive Board also noted that the recent extension and enlargement of the enhanced structural adjustment facility will be of increased benefit to the Fund’s low-income developing countries over the next few years. The Executive Board expressed its view that the Fund is at present relatively well-positioned to meet a prospective substantial demand for its resources over the next three years. Nevertheless, the Fund’s liquidity position is expected to decline over the next few years from its currently strong position. Furthermore, considerable uncertainties can be expected as regards the supply of usable resources, which depends on the continued relative strength in the balance of payments and reserve positions of mainly the industrial countries in the Fund. The continued adequacy of members’ quotas, including the Fund’s liquidity position, will be closely monitored by the Executive Board in the period ahead.

    6. In view of the foregoing considerations, it is recommended that the work on the Tenth Review be concluded and that the Board of Governors adopt the Resolution set forth in the attachment to this report.

    Attachment Proposed Resolution of the Board of Governors

    The Board of Governors, having noted the Report of the Executive Board entitled Tenth General Review of Quotas—Completion of Review Under Article III, Section 2,


    That the Tenth General Review of Quotas is hereby completed and requests the Executive Board to continue its work on quotas in connection with the Eleventh General Review of Quotas, as indicated in its report entitled Tenth General Review of Quotas Completion of Review Under Article III, Section 2.

    Board of Governors Resolution No, 50-1

    January 17, 1995

    I Systemic Transformation Facility

    (a) Amendments

    Paragraph 4(a) of the Decision on the Systemic Transformation Facility (Decision No. 10348 (93/61) STp,7 adopted April 23, 1993) is amended by deleting “12 months” and replacing it with “18 months.”

    Decision No. 10760-(94/71) STF

    July 29, 1994

    In the Decision on the Systemic Transformation Facility (Decision No. 10348 (93/61) STF, adopted April 23, 1993, as amended), paragraphs l(a) and 11 are amended by deleting the references to “December 31, 1994” and by replacing them with “April 30, 1995.”

    Decision No. 10855-(94/109) STF

    December 14, 1994

    (b) Future

    The period of the systemic transformation facility is not extended. In accordance with the terms of the decision establishing this facility, the period within which a member may make a first purchase will expire on April 30, 1995, With respect to members that will have only made their first purchase by April 30, 1995, the period during which they may make their second purchase will expire on December 31, 1995.

    Decision No. l0961-(95/41) STF

    April 19, 1995

    J. Establishment of a Framework Administered Account for Technical Assistance Activities

    1. Pursuant to Article V, Section 2(b), the Fund adopts the Instrument to establish an account for the administration by the Fund of resources to be contributed by: (i) governments or other official agencies of countries and (ii) intergovernmental organizations, in accordance with the terms and conditions of the Instrument set forth in the Annex [to the staff paper],

    2. The provisions of the Instrument may only be amended by a decision of the Fund and with the concurrence of the contributors that are financing activities through the account at the time of such decision.

    Decision No. 10942-(95/33) April 3, 1995

    Annex Instrument for a Framework Administered Account for Technical Assistance Activities

    To help fulfill its purposes, the International Monetary Fund (the “Fund”) has adopted this Instrument to establish an account in accordance with Article V, Section 2(b) which shall be governed by, and administered in accordance with, the provisions of this Instrument.

    1. The Fund hereby establishes an account (the “Framework Account”) for the purpose of the administration of resources to be contributed by: (i) governments or other official agencies of countries and (ii) intergovernmental organizations (“Donors”), in order to finance technical assistance activities of the Fund,

    2. The resources contributed by Donors to the Framework Account shall be in the form of grants and may be used by the Fund for technical assistance activities consistent with its purposes in accordance with the procedure specified in paragraph 3 of this Instrument.

    3. The financing of technical assistance activities shall be implemented through the establishment and operation of subaccounts within the Framework Account. The establishment of a subaccount shall be subject to prior approval by the Fund, upon the recommendation of the Managing Director. When recommending approval of the establishment of a subaccount, the Managing Director shall specify the essential terms of the understandings that have been reached between the Donor and the Managing Director regarding (i) the nature, design, and implementation of the technical assistance activities to be financed from the subaccount in question and (ii) the method by which the costs of the technical assistance activities will be financed from resources contributed to the subaccount by the Donor, Following the establishment of a subaccount, the Fund shall be authorized to use the resources in the subaccount in accordance with the understandings reached between the Donor and the Managing Director.

    4. Costs charged to a subaccount of the Framework Account as a result of costs incurred by the Fund in the performance of technical assistance activities shall be based on standard costs as determined by the Fund, unless otherwise agreed between the Fund and the Donor. A subaccount shall also be charged an amount equivalent to a percentage of such costs so as to help cover the expenses incurred by the Fund in the administration of the technical assistance activities financed from the subaccount in question.

    5. Resources in a subaccount may be used to make disbursements to the Fund’s General Resources Account as required to reimburse the Fund for expenditures incurred by the Fund on account of any technical assistance activity financed by resources from such subaccount.

    6. All transactions and operations of the Framework Account shall be denominated in U.S. dollars.

    7. Resources held in a subaccount of the Framework Account pending disbursement shall be invested at the discretion of the Managing Director. Earnings net of any costs associated with such investments shall accrue to the subaccount and shall be available for the purposes of the subaccount.

    8. Subject to the requirement of Fund approval specified in paragraph 3, the Managing Director is authorized (i) to make all arrangements, including establishment of accounts in the name of the Fund, as he deems necessary to carry out the operations of the Framework Account; and (ii) to take all other measures he deems necessary to implement the provisions of this Instrument.

    9. Assets held in the Framework Account shall be accounted for separately from the assets and property of other accounts of, or administered by, the Fund, The assets and property held in such other accounts shall not be used to discharge or meet any liabilities, obligations, or losses of the Fund incurred in the administration of the Framework Account nor shall The assets of the Framework Account be used to discharge or meet any liabilities, obligations, or losses incurred by the Fund in the administration of such other accounts. The assets and property held in each subaccount of the Framework Account shall not be used to discharge or meet any liabilities, obligations, or losses of the Fund incurred in the administration of any other subaccount of the Framework Account.

    10. (a) The Fund shall maintain separate financial records and prepare separate financial statements for the Framework Account, Such records and statements, which shall include a breakdown with respect to each subaccount, will be maintained in accordance with generally accepted accounting principles. The financial statements for the Framework Account shall be expressed in U.S. dollars. Each Donor shall receive annually, or more often if agreed, a report on expenditures from that Donor’s contributions to the Framework Account and a review of the activities financed by that Donor through the Framework Account.

    • (b) The External Audit Committee selected under Section 20 of the Fund’s By-Laws shall audit the operations and transactions conducted through the Framework Account. The audit shall relate to the financial year of the Fund.

    • (c) The Fund shall report on the position of the Framework Account, including a breakdown with respect to each subaccount, in the Annual Report of the Executive Board to the Board of Governors and shall include in that Annual Report the report of the External Audit Committee on the Framework Account.

    11. Subject to the provisions of this Instrument, the Fund, in administering the Framework Account, shall apply, mutatis mutandis, the same rules and procedures as apply to the operation of the General Resources Account of the Fund,

    12. The Framework Account or any subaccount thereof may be terminated by the Fund at any time; the termination of the Framework Account shall terminate each subaccount thereof. A subaccount may also be terminated by the Donor of the resources to the subaccount. Termination shall be effective on the date that the Fund or the Donor, as the case may be, receives notice of termination, or such later date, if any, as may be specified in the notice of termination. Any balances, net of the amounts of continuing liabilities and commitments under the activities financed, that may remain in a subaccount upon its termination shall be transferred promptly to the contributing Donor.

    APPENDIX VI Press Communiqués of the Interim Committee and the Development Committee

    Interim Committee of the Board of Governors on the International Monetary System


    Forty-Third Meeting, Madrid, Spain, October 2, 1994

    1. The Interim Committee of the Board of Governors of the International Monetary Fund held its forty-third meeting in Madrid, Spain, on October 2, 1994, under the chairmanship of Mr. Philippe Maystadt, Minister of Finance of Belgium.

    2. Meeting at a time of encouraging developments in the world economy, the Committee focused on the policies required to sustain a noninflationary expansion, reduce unemployment, and raise living standards worldwide. It recalled the contribution of policy cooperation to global economic progress in the fifty years since the Bretton Woods Agreement, and reaffirmed the growing importance of such cooperation in a highly integrated global economy. In this spirit, the Committee adopted the attached declaration on cooperation to strengthen the global expansion.

    3. In order to complement and support this strategy for durable growth, the Interim Committee considered several measures to strengthen the Fund’s financial assistance to member countries.

    With regard to access to IMF resources, the Committee considered a proposal for a temporary increase in annual access limits from 68 percent to at least 85 percent of quota. Committee members recommended that the Executive Board further consider this proposal with a view to its early adoption.

    The Committee had a broad-ranging exchange of views with regard to the proposal to extend the systemic transformation facility with increased access. The Committee also had a broad-ranging exchange of views relating to proposals for allocation of special drawing rights. Committee members requested the Chairman to conduct further consultations and to call a meeting of the Committee when he judges that the prospects for resolution of these issues are favorable.

    4. The Committee requests the Executive Board in accelerate its consideration of issues relating to the distribution among member countries of the cost of operating the Fund with a view to ensuring a more effective and equitable mechanism.

    5. The Committee recognizes the special needs and problems of countries emerging from economic and political disruption and also of the poorest, most indebted countries, and requests the Executive Board to examine proposals in these areas.

    6. The Committee attaches great importance to the ongoing effort to enhance the Fund’s role in the international monetary system and its ability to serve its member countries. The Committee requests the Executive board to pursue its work on strengthening Fund surveillance, as the central element of the Fund’s contribution to better economic policies and more effective cooperation, and to continue its work on capital markets. With that objective in mind, the Committee requests for its Spring meeting a report on the methodological aspects of multilateral surveillance. Committee members affirmed their intention to reinforce the Committee’s role in the process of policy cooperation and coordination, having particularly in mind the medium-term strategy.

    Interim Committee Declaration on Cooperation to Strengthen the Global Expansion

    1. The immediate prospects for economic growth in the world economy are better than they have been at any time in this decade. But serious policy challenges remain. For the industrial countries the most important art to sustain economic growth, reduce unemployment, and prevent a resurgence of inflation. Growth in the developing countries (and in particular, in the poorest countries) must be maintained and extended. The economies in transition must be integrated into the international economy and set firmly on the path of sustainable growth.

    2. The planned entry into force of the Uruguay Round trade agreements on January 1, 1995, will enhance world economic prospects by deepening global economic integration. The Committee urges ratification of the agreements without delay, and calls for action to sustain the impetus of trade liberalization and for close cooperation between the Fund and the proposed WTO. The Committee also welcomes the growing trend toward currency convertibility and encourage member countries to remove impediments to the free flow of capital.

    3. The recent success of many developing economies illustrates once again the validity of a strategy based on steadfast implementation of strong programs of macroeconomic adjustment and structural reform. The Committee urges other countries to follow a similar bold strategy for sustained economic growth and domestic and external financial stability. Such efforts by developing countries must be supported by a global environment characterized by improved access to industrial country markets and timely financial support on appropriate terms, including a flexible approach to official bilateral debt reduction for low-income countries, in the context of strong policies.

    4. The impressive turnaround in several economies in transition also attest to the benefits of macroeconomic discipline and structural reforms. The Committee urges all other economies in transition to be bolder in their approaches to stabilization and reform. Experience has demonstrated the central importance of early fiscal reforms and firm monetary discipline in the early stages of the transformation process to achieve financial stability. This needs to be accompanied by institution building, price and external sector liberalization, enterprise restructuring and privatization, and financial sector reform. Social safety nets that are well targeted and cost efficient are also necessary, to alleviate the adverse impact of higher open unemployment. As in the case of developing countries, the Committee recognizes the importance of a supportive international environment.

    5. The improved economic outlook for the industrial countries creates an Opportunity for them to strengthen growth and reduce unemployment, while safeguarding the progress toward price stability. The Committee attaches particular importance to the following three elements of a common strategy.

    • Structural reforms to eliminate impediments to sustained growth, including steps to dismantle nontariff trade barriers and to ensure the long-term financial viability of health care and public pension systems. The Committee notes that problems of long-term unemployment and lack of jobs for young and unskilled persons should be addressed by efforts to improve education and training and by fundamental labor market reforms to reduce disincentives to employment.

    • A strengthening of fiscal consolidation efforts in 1995 and beyond as part of a medium-term strategy to significantly reduce fiscal deficits beyond the effects of cyclical recovery, and cut debt-to-GDP ratios, thereby facilitating lower real interest rates. The Committee notes in particular that countries with especially serious fiscal problems must not delay major corrective action.

    • Readiness to adjust monetary conditions to maintain price stability, as a condition for sustaining medium-term growth, including by timely increases in interest rates with a view to preventing the emergence of inflationary pressures. This will reinforce the hard-won credibility of anti- inflationary monetary policies.

    6. The Interim Committee will review progress in implementing the agreed common strategy at its Spring 1995 meeting.

    Annex: Interim Committee Attendance October 2, 1994


    Philippe Maystadt, Minister of Finance, Belgium

    Managing Director

    Michel Camdessus

    Members or Alternates

    Hamad Al-Sayari, Governor, Saudi Arabian Monetary Agency (Alternate for Mohammad Abalkhail, Minister of Finance and National Economy, Saudi Arabia)

    Edmond Alphandery, Minister of Economy, France

    Ahmed Humaid Al-Taycr, Minister of State for Finance and Industry, United Arab Emirates

    Anwar Ibrahim, Deputy Prime Minister and Minister of Finance, Malaysia

    Lloyd M. Bentsen, Secretary of the Treasury, United States

    Domingo Felipe Cavallo, Minister of Economy and Public Works and Services, Argentina

    Kenneth Clarke, Chancellor of the Exchequer, United Kingdom

    Eneas Da Conceicao Comiche, Minister of Finance, Mozambique

    Lamberto Dini, Minister of the Treasury, Italy

    Marcel Doupamby Matoka, Minister of Finance, Budget, and Participations, Gabon

    Ciro Ferreira Gomes, Minister of Finance, Brazil

    Torstein Moland, Governor, Norges Bank (Alternate for Sigbjoern Johnsen, Minister of Finance, Norway)

    Abdelouahab Keramane, Governor, Banque d’Algéric Paul Martin, Minister of Finance, Canada Jacques Santer, Prime Minister and Minister of Treasury, Luxembourg (Item 2), [van Kocarnik, Deputy Prime Minister and Minister of Finance, Czech Republic (Item 3), and Ferdinand Lacina, Federal Minister of Finance, Austria (Item 5) (Alternates for Philippe Maystadt, Minister of Finance, Belgium)

    Aleksandr N. Shokhin, Deputy Prime Minister, Russian Federation

    Manmohan Singh, Minister of Finance, India Pedro Solbes, Minister of Economy and Finance, Spain Otto Spain, Minister of Finance, Switzerland Yasushi Mieno, Governor, The Bank of Japan (Alternate for Masayoshi Takemura, Minister of Finance, Japan)

    Theo Waigel, Federal Minister of Finance, Germany

    Ralph Willis, Treasurer, Australia

    Gerrit Zalm, Minister of Finance, Netherlands

    Chen Yuan, Deputy Governor, People’s Bank of China (Alternate for Zhu Rongji, Vice Premier and Governor, People’s Bank of China)


    Mourad Cherif, Chairman, Joint Development Committee

    Henning Christophersen, Vice President, CEC

    Andrew D. Crockett, General Manager, BIS

    Roger Lawrence, Deputy to the Secretary-General, Global Interdependence Division, UNCTAD

    Jean Claude Milleron, Under-Secretary-General, Department of Economic and Social Information and Policy Analysis, UN

    Lewis T. Preston, President, World Bank

    Peter D. Sutherland, Director-General, GATT

    Salvarore Zecchini, Assistant Secretary-General, OECD

    Forty-Fourth Meeting, Washington, D.C., April 26, 1995

    1. The Interim Committee of the Board of Governors of the International Monetary Fund held its forty-fourth meeting in Washington, D.C., on April 26, 1995 under the chairmanship of Mr. Philippe Maystadt, Minister of Finance of Belgium.

    2. The Committee welcomed the entry into force of the Uruguay Round agreement and the formation of the World Trade Organization, and encouraged the Bretton Woods institutions to develop a close relationship with it in promoting an open exchange and trade system. The Committee noted that developments in the world economy have been generally favorable, and provide an opportunity that countries should use wisely, by implementing policies to achieve the objectives set out in the Declaration on Cooperation to Strengthen the Global Expansion adopted in Madrid in October 1994.

    3. In reviewing progress in implementing the Madrid Declaration, the Committee reaffirmed its intention to reinforce the Committee’s role in the process of policy cooperation and coordination, having particularly in mind the medium-term strategy. In this context the Committee observed that:

    • In the industrial countries, growth has been stronger than expected, and inflation has remained moderate. The Committee welcomed the timely increases in interest rates to dampen incipient inflationary pressures in countries approaching full capacity utilization, and the easier stance of monetary policy in some other countries where the expansion is more recent. It emphasized the importance of bolder fiscal consolidation to increase savings, investment, and employment. The Committee considered that recent exchange rate movements for some major currencies had gone farther than warranted by fundamentals and agreed that orderly reversal of these movements is desirable. In this context the Committee agreed that stronger efforts were needed to reduce internal and external imbalances. These efforts should focus on measures to raise national saving in a medium-term perspective, in particular through fiscal consolidation, as well as broader deregulation and market opening to increase the responsiveness of domestic sectors to world competition.

    • In many developing countries, sound macroeconomic policies and vigorous structural reforms have yielded robust growth; nevertheless policy challenges remain. The long-term prospects of a number of countries, particularly in Asia, remain bright, although in the short run caution is necessary to address signs of overheating. Developing Countries in the Western Hemisphere are expected to experience somewhat slower growth. Many developing countries need to act to bring inflation under firm control. Stronger action is required to raise growth rates in many poorer countries above the rate of population increase.

    • The Committee also reviewed developments relating to the financial crisis in Mexico. It welcomed the strengthened adjustment program being implemented by the Mexican authorities with the exceptional support of the international community. It noted that early contagion effects had been contained, thanks to the prompt international response and strong adjustment efforts by affected countries.

    • The Committee welcomed the strong expansion now under way in an increasing number of transition countries following strong stabilization and reform programs. Although many transition countries are now committed to stabilization and reform, further substantial efforts are still required. The Committee welcomed the courageous policies being implemented by Russia and Ukraine and some other transition countries with the support of the Fund, the World Bank, the EBRD, and other regional development banks.

    4. The Committee discussed the evolving role of the International Monetary Fund in an environment of increased globalization and integration of markets for goods, services, and capital. It concluded that this new environment required stricter policy discipline from all members to guard against sudden adverse market reactions. The Committee therefore agreed that Fund surveillance should be strengthened in a symmetrical manner and taking into account the lessons to be drawn, by member countries and by the Fund itself, from the recent crisis in Mexico. Endorsing a report by the Executive Board on strengthening Fund surveillance, the Committee agreed that the policy dialogue between the Fund and its members should be improved as follows:

    First, the Committee encouraged the Fund to establish a closer and more continuous policy dialogue with member countries, to strengthen its analysis, and to be frank and candid in its recommendations concerning the possible risks attached to policies followed by members. Second, the Committee stressed the importance of regular and timely provision by all members of economic data to the Fund, thereby enabling the identification of emerging tensions at an early stage; in that context, it also noted the Fund’s intention to make greater use of financial market data. Third, the Committee emphasized that timely publication by members of comprehensive data would give greater transparency to their economic policies; it requested the Executive Directors to work toward the establishment of standards to guide members in the provision of data to the public, and to submit proposals for consideration by the Committee at its next meeting. Fourth, the Committee noted the risks attached to overreliance on easily reversible capital inflows, and invited the Fund to pay more attention to members’ financing policies, and the soundness of their financial sectors, in its surveillance activities. Fifth, the Committee concluded that the Fund should better focus its surveillance, rebalancing its efforts to give increased emphasis to the situation of those members where economic disturbances or policies could have broader implications for other countries, while maintaining the quality of its policy dialogue with all member countries.

    5. The Committee agreed that the Fund’s liquidity position is adequate at present, despite recent large demands on Fund resources, but noted that the Fund’s liquidity is projected to decline sharply over the next two years. It requested the Executive Board to continue to review the adequacy of the Fund’s resources, and, in connection with its review of the role of the Fund, to carry forward its work on the Eleventh General Review of Quotas. The Committee also saw a need to examine the issues related to borrowing by the Fund from members and, in particular, the role of the General Arrangements to Borrow.

    6. The Committee continued its consideration of SDR issues, in light of the Chairman’s report on his consultations with members and the Executive Board’s further consideration of these issues. It noted that there was not now a basis for agreement on an allocation but requested the Executive Board to keep this matter under review. The Committee requested the Fund to initiate a broad review, with the involvement of outside experts, of the role and functions of the SDR in light of changes in the world financial system.

    7. The Committee welcomed the application by Paris Club creditors of Naples Terms for low-income countries. It took note of the Executive Board’s discussion of the multilateral debt of heavily indebted poor countries, and stressed that multilateral lending to these countries should be on appropriately concessional terms. It agreed that continued Fund support for the poorest developing countries on ESAF terms is desirable. In this context the Committee requested the Executive Board to examine the options for continued financing and adapting of the ESAF.

    8. The Committee had a broad-ranging discussion on how the Fund can better assist members in coping with sudden market disturbances, consistent with its catalytic role. It invited the Executive Board to embark on a further examination of all the relevant issues, in close collaboration with other institutions.

    9. The Committee will meet again on October 8, 1995, when it will further review progress in implementing policies to maintain global recovery and ensure stable financial market conditions, and in Strengthening Fund surveillance and financing.

    Annex: Interim Committee Attendance April 26, 1995


    Philippe Maystadt, Minister of Finance, Belgium

    Managing Director

    Michel Camdessus

    Members or Alternates

    Mohammad Abalkhail, Minister of Finance and National Economy, Saudi Arabia

    Edmond Alphandery, Minister of Economy, France

    Sultan N. Al-Suwaidi, Governor, United Arab Emirates Central Bank (Alternate for Ahmed Humaid Al-Tayer, Minister of State for Finance and Industry, United Arab Emirates)

    Domingo Felipe Cavallo, Minister of Economy and Public Works and Services, Argentina

    Anatoli Chubais, First Deputy Chairman, Russian Federation

    Kenneth Clarke, Chancellor of the Exchequer, United Kingdom

    Lamberto Dini, Prime Minister and Minister of the Treasury, Italy

    Marcel Doupamby Matoka, Minister of Finance, Economy, Budget, and Equity Financing. Gabon

    Sigbjoern Johnsen, Minister of Finance, Norway

    Abdelouahab Keramane, Governor, Banque d’Algerie

    Pedro Sampaio Malan, Minister of Finance, Brazil

    Adriano Afonso Maleiane, Governor, Banco de Mocambique

    Paul Martin, Minister of Finance, Canada

    Maria Schaumayer, Governor, Austrian National Bank, Austria (p.m. session) and Alfons Verplaetse, Governor, Banque Nationale de Belgique (a.m. session) (Alternates for Philippe Maystadt, Minister of Finance, Belgium)

    Guillermo Ortiz, Secretary of Finance and Public Credit, Mexico

    Robert E. Rubin, Secretary of the Treasury, United States

    Manmohan Singh, Minister of Finance, India

    Otto Stich, Minister of Finance, Switzerland

    Masayoshi Takemura, Minister of Finance, Japan

    Vijit Supinit, Governor, Bank of Thailand

    Theo Waigel, Federal Minister of Finance, Germany

    George Gear, Assistant Treasurer, Australia (Alternate for Ralph Willis, Treasurer, Australia)

    H. J. Brouwer, Treasurer-General, Ministry of Finance, Netherlands (Alternate for Gerrit Zalm, Minister of Finance, Netherlands)

    Chen Yuan, Deputy Governor, People’s Bank of China (Alternate for Zhu Rongji, Vice Premier and Governor, People’s Bank of China)


    S. Abrahamian, Officer-in-Charge, Global Interdependence Division, UNCTAD

    Andrew D. Crockett, General Manager, BIS

    Yves-Thibault de Silguy, Commissioner, CFC

    Mohamed Kabbaj, Chairman, Development Committee

    Gautam S. Kaji, Acting President, World Bank

    Jean-Claude Milleron, Under-Secretary-General for Economic and Social Information and Policy Analysis, UN

    Jean-Claude Paye, Secretary-General, OECD

    Gary P. Sampson, Director, Development Division, WTO

    Joint Ministerial Committee of the Boards of Governors of the Bank and the Fund on the Transfer of Real Resources to Developing Countries (Development Committee)


    Forty-Ninth Meeting, Madrid, Spain, October 3, 1994

    1. The forty-ninth meeting of the Development Committee was held in Madrid, Spain on October 3, 1994 under the chairmanship of Mr. Mourad Cherif, Minister of Finance and Investments of Morocco.1 On its own twentieth anniversary, the Committee joined in congratulations to the World Bank and IMF on the fiftieth anniversary of the Bretton Woods Agreement, and welcomed the World Bank’s publication “Learning from the Past—Embracing the Future.”

    Transfer of Resources

    2. The Committee’s main task is to keep under review the transfer of resources to developing and transition countries. It therefore welcomes the continued high level of total flows to these countries. It notes the slow rate of growth in official development assistance, and calls on donor countries to enhance their aid as soon as possible and to increase its focus on the poorest countries. Where appropriate, the Committee favors a reduction in the stock of debt and an increase in concessionary for the poorest countries facing special difficulties. The Committee recognizes the special needs and problems of countries emerging from economic and political disruption and also of the poorest, most indebted countries, and requests the Executive Boards to examine proposals in these areas.

    3. The Committee welcomes the increased volume of private flows in recent years to a growing number of countries which are implementing economic reforms. It notes uncertainties about the sustainability of such flows in changing world conditions, and the fact that they continue to be concentrated in a small number of countries. It urges countries not currently receiving such flows to improve their creditworthiness through macroeconomic reform, and to create a climate favorable to sound private sector development; these measures will attract more foreign portfolio and direct investment. The Committee asks the World Bank Group, the IMF, and industrial countries to continue their efforts to facilitate and encourage private flows to all developing and transition countries.

    Aid Effectiveness

    4. Effective aid requires closer collaboration between receiving countries, international organizations, and donors. For aid to be most effective, it has to be adequate, and to operate in a favorable environment. Prime responsibility for domestic policies which contribute to aid effectiveness rests, of course, with the recipient countries themselves. The guiding principles for recipients are:

    • a. Appropriate domestic economic policies tailored to local conditions are essential if aid is to be effective;

    • b. The effective use of aid requires strong administrative and institutional capacity;

    • c. “Ownership” by the government and participation by other stakeholders, including beneficiaries, are essential;

    5. The guiding principles for donors and international agencies are these:

    • a. The best conditions and policies for aid cannot substitute for strong “ownership,” by the recipient government, and good governance. Donors and recipients must collaborate to make this the basis for effective aid.

    • b. Donors should support participation by relevant stakeholders (especially women, the poor, and other disadvantaged groups); this helps to improve the design of projects and ensure that they are properly implemented and operated. The Bank should strengthen its skill mix and incentive system for these purposes.

    • c. Technical assistance (TA) is likely to be most effective when it responds to clearly defined needs and absorptive capacity of the recipient. TA should work within, and if necessary seek to strengthen, the institutional environment along the lines approved by the OECD Development Assistance Committee (DAC).

    • d. Multilateral agencies, including the IMF, the World Bank Group, and the regional development banks, work closely to support countries’ own efforts to put in place a sound framework for macroeconomic and structural policies which foster the private sector and strengthen public sector management. Aid programs should be consistent with this framework, and with the country’s own development priorities. Innovative approaches to achieve this objective are to be encouraged. The World Bank will strengthen its consultations with other donors who in turn will collaborate in this approach.

    • e. Efforts to coordinate and simplify donor aid procedures and practices should be accelerated. Aid operations should be made more transparent to improve accountability. Donors should avoid setting up mechanisms which are inconsistent with the recipients’ own efforts to manage their own budgets and implement aid. Ministers support recent efforts in the DAC to reduce the use of tied aid credits. They also urge donors to minimize the additional costs associated with trade-distorting tying of aid, where this can be done Without reducing volume.

    • f. The DAC Principles provide an appropriate framework for improving aid coordination. Consultative Groups and Roundtable Meetings are more effective when preceded by active involvement of the recipient government, and consultation with other donors. The agenda for Consultative Groups should cover issues of development strategy, aid utilization, aid coordination, and technical assistance, in addition to mobilization of financial resources.

    • g. Recent efforts to improve the effectiveness of the World Bank and other development agencies, focusing on their development impact and on results in the field, need to be sustained and extended. Particular attention should be given to: shifting the focus from projects to country programs; improving the “quality at entry” of projects; strengthening evaluation and disclosure policies; streamlining procedures; addressing urgently the adequacy of field office networks; and changing staff incentives to focus on development impact.

    • h. Aid can also help to stimulate private investment; institutions like the IFC and MIGA can play a valuable role but must pay due attention to development effectiveness.

    • i. Many of these principles apply with equal force to the countries in transition. However, more attention needs to be given in these countries, in differing degrees, to informing both policymakers and public opinion at large of the workings of a market economy and the complementary roles of the public and private sectors.

    6. The Committee will follow up these issues carefully at future meetings and particularly looks forward to the report of its Task Force on the Multilateral Development Banks.

    The Uruguay Round and the Developing and Transition Countries

    7. The Committee reviewed the results of the recently completed Uruguay Round negotiations and their impact on the developing and transition countries. At this stage, it was only possible to make a preliminary assessment of the likely effects. They also considered the implications for the future work of the World Bank and the IMF. The Committee believes that:

    • a. In addition to its global effects, the successful conclusion of the Uruguay Round will bring significant benefits to developing countries over time, through increased market access, the integration of new areas into the system, and through strengthened rules and institutions. Early ratification and implementation are therefore essential.

    • b. These benefits will accrue particularly to those countries which pursue sound macroeconomic policies and adopt market-based reforms.

    • c. A number of developing countries should benefit in particular from the phased integration of textiles and clothing into the multilateral system, although the timetable for liberalization will delay these benefits.

    • d. Some countries may need help to adjust to higher world food prices and the erosion of preferences, although most of them will gain from the reduction of agricultural subsidies. Initial studies made by the Bank and the Fund indicate that the negative effects are likely to be fairly small, and existing instruments seem adequate to deal with them. Further research may refine these findings. Meanwhile, the Bank and the Fund must be ready to address these problems.

    • e. In the longer run, it is important to keep up the momentum of mutually advantageous trade liberalization and avoid new forms of protectionism.

    • f. The task of the Bank and the Fund is to assist developing and transition countries to ease the change to the new trading system, by providing policy advice, financial support, and technical assistance in order to maximize the gains from new market opportunities.

    • g. It will also be necessary to bring the transition countries (many of whom are not yet members of GAIT) into the multilateral process as quickly as possible, so that they can fully share the benefits of trade liberalization and enlarged market access, without discrimination. The Hank and the Fund should encourage and assist these countries in their efforts to become more fully integrated into the multilateral trading system and to adopt policies that will facilitate their accession to the WTO.

    8. The Committee believes it is essential for both institutions to collaborate closely with the new World Trade Organization and notes that the ministerial Declaration at the end of the Uruguay Round calls for early talks between the Director-General of the WTO and the heads of the Bank and Fund.


    9. Ministers from the participating countries welcomed the outcome of the recent United Nations Conference on Population and Development, which it discussed at its last meeting. The Committee called on the World Bank and conference participants to play an active part in implementing the Programme of Action approved by the Conference.


    10. It also welcomed last month’s agreement on the antidesertification convention, called for its early ratification, and encouraged the World Bank to continue its active support for development and environmental management in dryland areas.

    Next Meeting

    11. The Committee agreed to meet again in Washington, D.C., on April 27, 1995, when the principal topic for discussion will be the financing of infrastructure in developing countries.

    Fiftieth Meeting, Washington, D.C., April 27, 1995

    1. The fiftieth meeting of the Development Committee was held in Washington, D.C., on April 27, 1995, under the chairmanship of Mr. Mohamed Kabbaj, Minister of Finance and Foreign Investment of Morocco.2 The Committee expressed its deep regret at the departure of Mr. Lewis T. Preston and recorded its great appreciation of his distinguished leadership as President of the World Bank. It offered its congratulations to his successor, Mr. James D. Wolfensohn.

    Resource Flows to Developing and Transition Countries

    2. The Committee welcomed the continued high level of total resource flows, and the increase since 1990 in various forms of private finance, especially foreign direct investment which does not add to debt-servicing burdens. At a time of rapid globalization and liberalization of financial markets, it noted the recent high volatility of financial flows, as exemplified by currency movements. But portfolio flows have declined, and Ministers recognized that markets are likely to be more selective in their provision of such capital. This emphasizes the need for recipient countries to follow sound macroeconomic policies to gain or maintain access to private markets, and to mobilize significant domestic savings. They should avoid excessive reliance on short-term flows to finance longer-term development needs. The strong policy base and solid long-term prospects of many developing and transition countries suggest that they should be able to attract continued foreign direct investment.

    3. The Committee expressed its concern about the prospect of a fall in total official development assistance. Given the pressing needs of the poorest countries, it urged continued strong support for the International Development Association (IDA) and for the Special Program of Assistance for Africa (SPA). It welcomed the recent agreement in the Paris Club to implement “Naples Terms” for the poorest and most heavily indebted countries, and called for them to be applied flexibly. The Committee noted that some of these countries have a heavy burden of debt owed to multilateral institutions. It invited the Executive Boards of the World Bank and the IMF to continue their review of this subject, so that Ministers can return to it at the next meeting.


    4. The Committee welcomed the establishment on January 1 of the World Trade Organization (WTO) and urged close collaboration between the VVTO and the Bretton Woods institutions. It called on the Bank and Fund to assist those countries which are not yet members of the WTO to join the organization and to become more fully integrated into the multilateral trading system. It noted the Bank’s new estimates of the likely impact of the Uruguay Round upon the trade of developing countries. It welcomed evidence of the positive effect the Round will have on most developing countries, especially on those who are taking this opportunity to reform their own policies. It noted the Bank’s view that the adverse impact upon food-importing countries and those which will lose preferential access to industrial markets is likely to be small. It asked the Bank and Fund to monitor the impact on individual countries and to be prepared to help as necessary. It agreed that further liberalization of the agricultural and service sectors would provide important additional gains.


    5. The Committee noted that developing countries currently invest over S200 billion a year in infrastructure, more than 90 percent of it in the public sector. Adequate, efficient, and carefully designed infrastructure with full regard to the environment is crucial to sustainable development. More investment and improved performance in infrastructure will require a series of reforms in the structure and delivery of services. Governments have a continuing responsibility, whether as providers or regulators of infrastructure. In particular, efficiency requires prices which reflect all long-run economic costs, more businesslike management, increased involvement of the private sector, and better-targeted subsidies. Such reforms should be designed to increase incentives to devote sufficient resources to maintenance, in order to make best use of existing assets and reduce the need for expensive replacements.

    6. Improvement will also involve more use of private finance in various forms. The options chosen will vary for each country and service depending on conditions such as the level of domestic savings and the depth of financial markets. Private participation can be encouraged through build-own-operate and build-own-ope rate-transfer concessions, leases, operating contracts, partial guarantees from the public sector and privatization. The aim must be to pass the commercial risks to the private sector and to reduce the call on public funding and public guarantees.

    7. The Committee agreed that the poor stand to gain directly and quickly from better infrastructure, which can also help to improve environmental conditions. Donor countries can help the poorest countries by providing financial and technical support, and investment guarantees for the development of infrastructure within a policy framework that encourages efficient operation, maintenance, and responsiveness to users. The multilateral institutions (including IDA) have a major responsibility for providing advice and financial support. They can also play a catalytic role in mobilizing funds from a wider range of private sector sources, using all the means available, including World Bank guarantees, IFC, and MIGA.

    Social Summit

    8. The Committee generally welcomed the outcome of the recent Social Summit in Copenhagen, and agreed to discuss the implications for the developing and transition countries, and for donors and the Bank and fund, at us next meeting in Washington, D.C., on October 9, 1995.

    Executive Secretary

    9. The Committee expressed its deep appreciation to Peter Mountfield, the retiring Executive Secretary, for his dedicated service to the Committee over the past four years.

    APPENDIX VII Executive Directors and Voting Power on April 30, 1995


    Votes of




    of Fund

    Karin LissakersUnited States265,518265,51817.83
    Barry S. Newman
    Stefan SchoenbergGermany82,66582,6655.55
    Erika Wagenhoefer
    Hachiro MesakiJapan82,66582,6655.55
    Toshihiko Fukuyama
    Marc-Antoine AuthemanFrance74,39674,3965.00
    Michel Sirat
    Huw EvansUnited Kingdom74,39674,3965.00
    Jon Shields
    Willy KiekensAustria12,133
    Johann PraderBelgium31,273
    (Austria)Czech Republic6,146
    Slovak Republic2,824
    J. de Beaufort WijnholdsArmenia925
    Oleh HavrylyshynCroatia2,866
    Macedonia, former

    Yugoslav Republic of
    Luis E. BerrizbeitiaCosta Rica1,440
    (Venezuela)El Salvador1,506
    Vicente J. FernandezGuatemala1,788
    Giulio Lanciotti (Italy)Albania603
    Nikolaos Coumbis (Greece)Greece6,126
    San Marino35059,9874.03
    Ian D. Clark (Canada)Antigua and Barbuda335
    Garrett F. MurphyThe Bahamas1,199
    St. Kitts and Nevis315
    St. Lucia360
    St. Vincent and the Grenadines31055,5003.73
    Jarle Bergo (Norway)Denmark10,949
    Eva Srejber (Sweden)Estonia715
    Muhammad Al-JasserSaudi Arabia51,55651,5563.46
    (Saudi Arabia)
    Abdulrahman A. Al-Tuwaijri
    (Saudi Arabia)
    Ewen L. WatermanAustralia23,582
    Jung-Ho KangKorea8,246
    (Korea)Marshall Islands275
    Micronesia, Federated States of285
    New Zealand6,751
    Papua New Guinea1,203
    Solomon Islands325
    Western Samoa33549,1823.30
    A. Shakour ShaalanBahrain1,078
    Yacoob Yousef MohammedIraq5,290
    Syrian Arab Republic2,349
    United Arab Emirates4,171
    Yemen, Republic of2,01547,6463.20
    Dmitri V. TulinRussia43,38143,3812.91
    Aleksei V. Mozhin
    J.E. Ismael (Indonesia)Cambodia900
    Latifah Merican CheongFiji761
    Lao People’s Democratic Republic641
    Viet Nam2,66641,7552.80
    Daniel KaeserAzerbaijan1,420
    (Switzerland)Kyrgyz Republic895
    Krzysztof Link (Poland)Poland10,135
    Abbas MirakhorIslamic State of Afghanistan
    (Islamic Republic of Iran)1,454
    Mohammed Daїri (Morocco)Algeria9,394
    Islamic Republic
    of Iran11,035
    Alexandre Kafka (Brazil)Brazil21,958
    Alberto CalderonColombia5,863
    (Colombia)Dominican Republic1,838
    Trinidad and Tobago2,71839,2702.64
    K.P. GeethakrishnanBangladesh4,175
    W. HettiarachchiIndia30,805
    (Sri Lanka)Sri Lanka3,28638,5612.59
    Barnabas S. DlaminiAngola2,323
    Dinah Z. GutiBurundi822
    The Gambia479
    Sierra Leone1,022
    ZHANG Ming (China)China34,10234,1022.29
    WEI Benhua (China)
    Carlos Saito (Peru)Argentina15,621
    A. Guillermo ZoccaliBolivia1,512
    Yves-Marie T. KoissyBenin703
    (Côte d’Ivoire)Burkina Faso692
    Alexandre Barro ChambrierCameroon1,601
    (Gabon)Cape Verde320
    Central African Republic662
    Côte d’Ivoire2,632
    Equatorial Guinea493
    São Tomé and Príncipe305
    APPENDIX VIII Changes in Membership of Executive Board

    Changes in membership of the Executive Board between May 1, 1994 and April 30, 1995 were as follows:

    Corentino Santos (Cape Verde) was re-elected Executive Director by Benin, Burkina Faso, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Côte d’Ivoire, Djibouti, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Madagascar, Mali, Mauritania, Mauritius, Niger, Rwanda, São Tomé and Príncipe, Senegal, and Togo, effective June 21, 1994.

    Hiroo Fukui (Japan) relinquished his duties as Executive Director for Japan, effective July 31, 1994.

    Hachiro Mesaki (Japan) was appointed as Executive Director for Japan, effective August 1, 1994.

    John Dorrington (United Kingdom) relinquished his duties as Alternate Executive Director to Huw Evans (United Kingdom), effective October 16, 1994.

    Jon Shields (United Kingdom) was appointed as Alternate Executive Director to Huw Evans (United Kingdom), effective October 17, 1994.

    Konstantin G. Kagalovsky (Russia) completed his term of service as Executive Director for Russia, effective October 31, 1994.

    Roberto Marino (Mexico) completed his term of service as Executive Director for Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Spain, and Venezuela, effective October 31, 1994.

    L.J. Mwananshiku (Zambia) completed his term of service as Executive Director for Angola, Botswana, Burundi, Ethiopia, The Gambia, Kenya, Lesotho, Liberia, Malawi, Mozambique, Namibia, Nigeria, Sierra Leone, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe, effective October 31, 1994.

    Godert A. Posthumus (Netherlands) completed his term of service as Executive Director for Armenia, Bulgaria, Cyprus, Georgia, Israel, Moldova, Netherlands, Romania, and Ukraine, effective October 31, 1994.

    Corentino V. Santos (Cape Verde) completed his term of service as Executive Director for Benin, Burkina Faso, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Côte d’Ivoire, Djibouti, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Madagascar, Mali, Mauritania, Mauritius, Niger, Rwanda, São Tomé and Príncipe, Senegal, and Togo, effective October 31, 1994,

    Douglas E. Smee (Canada) completed his term of service as Executive Director for Antigua and Barbuda, The Bahamas, Barbados, Belize, Canada, Dominica, Grenada, Ireland, Jamaica, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines, effective October 31, 1994.

    A. Guillermo Zoccali (Argentina) completed his term of service as Executive Director for Argentina, Bolivia, Chile, Paraguay, Peru, and Uruguay, effective October 31, 1994.

    Kleo-Thong Hetrakul (Thailand) relinquished her duties as Alternate Executive Director to J.E. Ismael (Indonesia), effective October 31,1 994.

    Alberto F, Jimenez de Lucio (Peru) relinquished his duties as Alternate Executive Director to A. Guillermo Zoccali (Argentina), effective October 31, 1994.

    Gerver Torres (Venezuela) relinquished his duties as Alternate Executive Director to Roberto Marino (Mexico), effective October 31, 1994.

    Muhammad Al-Jasser (Saudi Arabia) was re-elected Executive Director by Saudi Arabia, effective November 1,1994.

    Jarle Bergo (Norway) was re-elected Executive Director by Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway, and Sweden, effective November 1, 1994.

    Luis E. Berrizbeitia (Venezuela) was elected Executive Director by Costa Rica, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Spain, and Venezuela, effective November 1, 1994.

    Ian D. Clark (Canada), was elected Executive Director by Antigua and Barbuda, The Bahamas, Barbados, Belize, Canada, Dominica, Grenada, Ireland, Jamaica, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines, effective November 1, 1994.

    Barnabas S. Dlamini (Swaziland), formerly Alternate Executive Director to L.J, Mwananshiku (Zambia), was elected Executive Director by Angola, Botswana, Burundi, Eritrea, Ethiopia, The Gambia, Kenya, Lesotho, Liberia, Malawi, Mozambique, Namibia, Nigeria, Sierra Leone, Swaziland, Tanzania, Uganda, Zambia, and Zimbabwe, effective November 1, 1994.

    K.P. Geethakrishnan (India) was re-elected Executive Director by Bangladesh, Bhutan, India, and Sri Lanka, effective November 1, 1994.

    I.E. Ismael (Indonesia) was re-elected Executive Director by Cambodia, Fiji, Indonesia, Lao P.D.R., Malaysia, Myanmar, Nepal, Singapore, Thailand, Tonga, and Viet Nam, effective November 1, 1994.

    Daniel Kaeser (Switzerland) was re-elected Executive Director by Azerbaijan, the Kyrgyz Republic, Poland, Switzerland, Tajikistan, Turkmenistan, and Uzbekistan, effective November 1, 1994.

    Alexandre Kafka (Brazil) was re-elected Executive Director by Brazil, Colombia, Dominican Republic, Ecuador, Guyana, Haiti, Panama, Suriname, and Trinidad and Tobago, effective November 1, 1994.

    Willy Kiekens (Belgium) was re-elected Executive Director by Austria, Belarus, Belgium, Czech Republic, Hungary, Kazakhstan, Luxembourg, Slovak Republic, Slovenia, and Turkey, effective November 1, 1994.

    Yves-Marie T. Koissy (Côte d’ Ivoire), formerly Alternate Executive Director to Corentino V. Santos (Cape Verde), was elected Executive Director by Benin, Burkina Faso, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Congo, Côte d’Ivoire, Djibouti, Equatorial Guinea, Gabon, Guinea, Guinea-Bissau, Madagascar, Mali, Mauritania, Mauritius, Niger, Rwanda, São Tomé and Príncipe, Senegal, and Togo, effective November 1, 1994.

    Giulio Lanciotti (Italy) was re-elected Executive Director by Albania, Greece, Italy, Malta, Portugal, and San Marino, effective November 1, 1994.

    Abbas Mirakhor (Islamic Republic of Iran) was reelected Executive Director by the Islamic State of Afghanistan, Algeria, Ghana, the Islamic Republic of Iran, Morocco, Pakistan, and Tunisia, effective November 1, 1994.

    Carlos Saito (Peru) was elected Executive Director by Argentina, Bolivia, Chile, Paraguay, Peru, and Uruguay, effective November 1, 1994.

    A. Shakour Shaalan (Egypt) was re-elected Executive Director by Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Maldives, Oman, Qatar, Syrian Arab Republic, United Arab Emirates, and the Republic of Yemen, effective November 1, 1994.

    Dmitri V. Tulin (Russia) was elected Executive-Director by Russia, effective November 1, 1994.

    Ewen L. Waterman (Australia) was re-elected Executive Director by Australia, Kiribati, Korea, the Marshall Islands, the Federated States of Micronesia, Mongolia, New Zealand, Papua New Guinea, Philippines, Seychelles, Solomon Islands, Vanuatu, and Western Samoa, effective November 1, 1994.

    J. de Beaufort Wijnholds (Netherlands) was elected Executive Director by Armenia, Bulgaria, Croatia, Cyprus, Georgia, Israel, the former Yugoslav Republic of Macedonia, Moldova, Netherlands, Romania, and Ukraine, effective November 1, 1994.

    ZHANG Ming (China) was re-elected Executive Director by China, effective November 1, 1994.

    Alexandre Barro Chambrier (Gabon) was appointed as Alternate Executive Director to Yves-Marie T. Koissy (Côte d’Ivoire), effective November 1, 1994.

    Latifah Merican Cheong (Malaysia) was appointed as Alternate Executive Director to J.E. Ismael (Indonesia), effective November 1, 1994

    Vicente J. Fernandez (Spain) was appointed as Alternate Executive Director to Luis E. Berrizbeitia (Venezuela), effective November 1, 1994.

    Dinah Z. Guti (Zimbabwe) was appointed as Alternate Executive Director to Barnabas S. Dlamini (Swaziland), effective November 1, 1994.

    Amando M. Tetangco, Jr. (Philippines) relinquished his duties as Alternate Executive Director to Ewen L. Waterman (Australia), effective November 1, 1994,

    A. Guillermo Zoccali (Argentina), formerly Executive Director for Argentina, Bolivia, Chile, Paraguay, Peru, and Uruguay, was appointed as Alternate Executive Director to Carlos Saito (Peru), effective November 1,1994.

    Jung-Ho Kang (Korea) was appointed as Alternate Executive Director to Ewen L. Waterman (Australia), effective November 2, 1994.

    L. Eustace N. Fernando (Sri Lanka) relinquished his duties as Alternate Executive Director to K.P. Geethakrishnan (India), effective January 2, 1995.

    W. Hettiarachchi (Sri Lanka) was appointed as Alternate Executive Director to K.P. Geetha krishnan (India), effective January 3, 1995.

    The following served at certain meetings of the Executive Board during 1994/95 as Temporary Alternate Executive Directors to the Executive Directors indicated:

    Temporary Alternate

    Executive Director
    Executive Director for Whom

    Temporary Alternate Served
    John M. Abbott (United States)Karin Lissakers (United States)
    John O. Aderibigbe (Nigeria)L.J. Mwananshiku (Zambia)
    Barnabas S. Dlamini (Swaziland)
    Meekal A. Ahmed (Pakistan)Abbas Mirakhor (Iran, Islamic Republic of)
    Saleh Eid Al-Huseini (Saudi Arabia)Muhammad Al-Jasscr (Saudi Arabia)
    Raymond N. A. Ally (Guyana)Alexandre Kafka (Brazil)
    Benny Andersen (Denmark)Jarle Bergo (Norway)
    Sjamsul Arifin (Indonesia)J.E. Ismael (Indonesia)
    Maria Celina B. Arraes (Brazil)Alexandre Katka (Brazil)
    David Barr (United Kingdom)Huw Evans (United Kingdom)
    Taye Berrihun (Ethiopia)L.J. Mwananshiku (Zambia)
    Barnabas S. Dlamini (Swaziland)
    Rita D. Bessone Basto (Portugal)Giulio Lanciotti (Italy)
    Georg Michael Blome (Germany)Stefan Schocnberg (Germany)
    Peter I. Botoucharov (Bulgaria)J. de Beaufort Wijnholds (Netherlands)
    Martha Brettschneider (United States)Karin Lissakers (UnitedStates)
    Juan M. Burdiel (Spain)Roberto Marino (Mexico)
    Pierre Cailleteau (France)Marc-Antoine Autheman (France)
    Alan G. Cathcart (United Kingdom)Huw Evans (United Kingdom)
    Amoy Chang Fong (Trinided and Tobago)Alexandre Kafka (Brazil)
    Roberto F. Cippa (Switzerland)Daniel Kaeser (Switzerland)
    Ana Lucia Coronel (Ecuador)Alexandre Kafka (Brazil)
    José Antonio Costa (Argentina)A. Guillermo Zoccali (Argentina)
    Äkos Cserés (Hungary)Carlos Saito (Peru) Willy Kiekens (Belgium)
    Cao Dac Cuong (Viet Nam)J.E. Ismael (Indonesia)
    Daniel Daco (Belgium)Willy Kiekens (Belgium)
    Johanne W. Dagusrun (United Kingdom)Huw Evans (UnitedKingdom)
    Dominique Desruelle(France)Marc-Antoine Autheman (France)
    Maiga Dzervite (Latvia)Jarle Bergo (Norway)
    Gamal Zaki El-Masry (Egypt)A. Shakour Shaalan (Egypt)
    Julio C. Estrella (Dominican Republic)Alexandre Kafka (Brazil)
    Salam K. Fayyad (Jordan)A. Shakour Shaalan (Egypt)
    Raphael Ferrillo (Switzerland)Daniel Kaeser (Switzerland)
    Laurent Fontaine (France)Marc-Antoine Autheman (France)
    Antonio Galicia (Mexico)Roberto Marino (Mexico)
    Luis E. Berrizbeitia (Venezuela)
    Catherine Gaseltine (United Kingdom)Hum Evans (United Kingdom)
    Toufic K. Gaspard (Lebanon)A. Shakour Shaalan (Egypt)
    Massimo Giulimondi (Italy)Giulio Lanciotti (Italy)
    Grigori Glazkov (Russia)konstantin G. Kagalovsky (Russia)
    Rachel Glennerster (United Kingdom)Huw Evans (United Kingdom)
    Hassan Golriz (Iran, Islamic Republic of)Abbas Mirakhor (Iran, Islamic Republic of)
    Celia M. Gonzalez (Philippines)Ewen L. Waterman (Australia)
    Andreas Guennewich (Germany)Stefan Sehoenberg (Germany)
    Javier Guxnian-Calafell (Mexico)Luis E. Berrizbeitia (Venezuela)
    Jerome Hamilius (Luxembourg)Willy Kiekens (Belgium)
    Mohamed Ali Hammoudi (Algeria)Abbas Mirakhor (Iran, Islamic Republic of)
    HE Jianxiong (China)ZHANG Ming (China)
    Oussama A. Himani (Lebanon)Muhammad Al-Jasser (Saudi Arabia)
    HON Chee-Won (Singapore)J.E. Ismael (Indonesia)
    Gerrit Hendrik Huisman (Netherlands)Godert A. Posthumus (Netherlands)
    J. de Beaufort Wijnholds (Netherlands)
    Chorobek Imashev (Kyrgyz Republic)Daniel Kaeser (Switzerland)
    Timur Isataev (Kazakhstan)Willy Kiekens (Belgium)
    Shinya Ishida (Japan)Hiroo Fukui (Japan)
    Haehiro Mesaki (Japan)
    Abdel Rehman Ismael (Mauritius)Corentino V. Santos (Cape Verde)
    Yves-Marie T. Koissy (Côte d’Ivoire)
    James Jamnik (Canada)Douglas E. Smee (Canada)
    Patrick J. Jilek {Australia)Ewen L. Waterman (Australia)
    Jiri Jonas (Czech Republic)Willy Kiekens (Belgium)
    J. Mills Jones (Liberia)L.J. Mwananshiku (Zambia)
    Barnabas S. Dlamini (Swaziland)
    José Justiniano (Bolivia)Carlos Saito (Peru)
    Teruhide Kanada (Japan)Hiroo Fukui (Japan)
    Hachiro Mesaki (Japan)
    Ramalinga Kannan (India)K.P. Geethakrishnan (India)
    Werner Ch. Keller (Switzerland)Daniel Kaeser (Switzerland)
    Aguil M. Konlizade (Azerbaijan)Daniel Kaeser (Switzerland)
    Ekaterina Kouprianova (Russia)Konstantin G. Kagalovsky (Russia)
    Dmitri V. Tulin (Russia)
    Kwassivi Kpetigo (Togo)Corentino V. Santos (Cape Verde)
    Yves-Marie T. Koissy (Côte d’Ivoire)
    Tuseno-Mino Kudiwu (Zaire)Corentino V. Santos (Cape Verde)
    Yves-Marie T. Koissy (Côte d’Ivoire)
    Vural Rural (Turkey)Willy Kiekens (Belgium)
    Nicole L. La framboise (Canada)Douglas E. Smee (Canada)
    Ian Clark (Canada)
    Kathryn J. Langdon (Canada)Douglas E. Smee (Canada)
    Jan Clark (Canada)
    Young-Hoi Lee (Korea)Ewen L. Waterman (Australia)
    Jorge Leiva (Chile)Carlos Saito (Peru)
    Boris M. Lvin (Russia)Konstantin G. Kagalovsky (Russia)
    Dmitri V. Tulin (Russia)
    John Matararikwa (Zimbabwe)L.J. Mwananshiku (Zambia)
    Barnabas S. Dlamini (Swaziland)
    Noel Mancebo (Uruguay)A. Guillermo Zoccali (Argentina)
    Yossi Margoninsky (Israel)J. de Beaufort Wijnholds (Netherlands)
    Juan Carlos Martinez Oliva (Italy)Giulio Laneiotti (Italy)
    Sarah McDougall (New Zealand)Ewen I. Waterman (Australia)
    Melhem F. Melhem (Lebanon)Muhammad Al-Jasser (Saudi Arabia)
    Pedro Antonio Merino (Spain)Roberto Marino (Mexico)
    Raphael Meron (Israel)Godert A. Posthumus (Netherlands)
    Mohammad Jafar Mojarrad (Iran, IslamicAbbas Mirakhor (Iran, Islamic
    Republic of)Republic of)
    Frank Moss (Belgium)Willy Kiekens (Belgium)
    George Toma Mucibabici (Romania)J. de Beaufort Wijnholds (Netherlands)
    James A.K. Munthali (Malawi)L.J. Mwananshiku (Zambia)
    Barnabas S. Dlamini (Swaziland)
    Jean-Christian Obame (Gabon)Corcentino V. Santos (Cape Verde)
    Yves-Marie T. Koissy (Côte d’Ivoire)
    Sean O’Connor (Canada)Douglas E. Smee (Canada)
    lan Clark (Canada)
    Susana del Carmen Olgiati (Argentina)A. Guillermo Zoccali (Argentina)
    Juan Ortiz Vely (Paraguay)A. Guillermo Zoccali (Argentina)
    Toshio Oya (Japan)Hiroo Fukui (Japan)
    Hachiro Mesaki (Japan)
    Yasmin Patel (Mozambique)L.J. Mwananshiku (Zambia)
    Barnabas S. Dlamini (Swaziland)
    Jarmo Pesola (Finland)Jarle Bergo (Norway)
    Hinauri Petana (Western Samoa)Ewen L. Waterman (Australia)
    Murray Petrie (New Zealand)Ewen L. Waterman (Australia)
    Carsten F. Pillath (Germany)Stefan Sehoenberg (Germany)
    Robert Kenneth W. Powell (United Kingdom)Huw Evans (United Kingdom)
    Neeraj Prasad (India)K.P. Geethakrishnan (India)
    Roderick Rainford (Jamaica)Douglas E. Smce (Canada)
    Ian Clark (Canada)
    Ganga P. Ramdas (United States)Alexandre Kafka (Brazil)
    Ahmad Raza (India)K. P. Geethakrishnan (India)
    Vladimir Rigasz (Slovak Republic)Willy Kiekens (Belgium)
    Sadok Rouai (Tunisia)Abbas Mirakhor (Iran, Islamic Republic
    Angel Ruocco (Venezuela)Luis E. Berrizbeitia (Venezuela)
    Matthew W. Ryan (United States)Karin Lissakers (United States)
    Daniel Saha (Cameroon)Corcntino V. Santos (Cape Verde)
    Yves-Marie T. Koissy (Côte d’Ivoire)
    Gabriel A. Sanchez (Argentina)A. Guillermo Zoccali (Argentina)
    Bassirou A. Sarr (Mauritania)Corentino V. Santos (Cape Verde)
    Yves-Marie T. Koissy (Côte d’Ivoire)
    Floris A. Schilthuis (Netherlands)Godert A. Posthumus (Netherlands)
    J. de Beaufort Wijnholds (Netherlands)
    Guiseppe Sehlitzer (Italy)Giulio Lanciotti (Italy)
    Arnor Sighvatsson (Iceland)Jarle Bergo (Norway)
    Tarmiden Sitrous (Indonesia)J.E. Ismael (Indonesia)
    David I. Stanton (United Kingdom)Huw Evans (United Kingdom)
    Julio Roberto Suarez (Guatemala)Roberto Marino (Mexico)
    Luis E. Berrizbeitia (Venezuela)
    Khamsouk Sundara (Lao PDR)J.E. Ismael (Indonesia)
    Lisa Tase (Romania)Godert A. Posthumus (Netherlands)
    Norbert Toe (Burkina Faso)Corentino V. Santos (Cape Verde)
    Yves-Marie T. Koissy (Côte d’Ivoire)
    Ake Tornqvist (Sweden)Jarle Bergo (Norway)
    Vishwapati Trivedi (India)K.P. Geethakrishnan (India)
    Jan Willem Van der Kaaij (Netherlands)Godert A. Posthumus (Netherlands)
    Vitali Y. Verjbitski (Russia)Konstantin G. Kagalovsky (Russia)
    Dmitri V. Tulin (Russia)
    Andrei Vernikov (Russia)Dmitri V. Tulin (Russia)
    Andrus Viirg (Estonia)Jarle Bergo (Nonvay)
    Ruedigervon Kleist (Germany)Stefan Sehoenberg (Germany)
    Silvia Vori (Italy)Giulio Lanciotti (Italy)
    WANG Xiangyong (China)ZHANG Ming (China)
    WANG Yanzhi (China)ZHANG Ming (China)
    eremy B. Wire (United States)Karin Lissakers (United States)
    WU Hongwei (China)ZHANG Ming (China)
    YANG Xiangyuan (China)ZHANG Ming (China)
    Edgar L. Zamalloa (Peru)Carlos Saito (Peru)
    APPENDIX IX Administrative and Capital Budgets, Staffing, and Organization

    Financial Year 1995


    The Fund’s Administrative and Capital Budgets are considered in the context of rolling three-year and five-year medium-term budget outlooks that are reviewed once a year by the Executive Board. The medium-term outlook endorsed by the Board in December 1994 reflected the Fund management’s commitment to reduce administrative expenditures in real terms in financial years 1996 and 1997 and to maintain constant dollar expenditures in financial year 1998 on a budget-to-budget basis. The outlook for the Capital Budget is also constrained. Capital project budgets will be reduced compared with previous years, except for major building projects that have already been approved or are under consideration.

    The Fund’s Administrative Budget for the financial year ended April 30,1995 (1994/95) was $488.3 million, and capital projects totaling S17.4 million (S10.0 million for building systems and $7.4 million for electronic data-processing equipment)were also approved. Actual administrative expenditures during the year totaled $462.2 million, and capital project disbursements totaled $32.9 million, including $12.9 million for building-addition projects {Table IX.1). During the year, a number of steps were taken to increase the efficiency of the Fund and reduce costs (Table IX.2). These included increased automation of Fund work activities and adjustments in administrative procedures, including the full-year effect of dollar-denominated travel budgets. In addition, several initiatives were delayed, including replacement of the current microcomputer operating system.

    During 1994/95, resources were used to support the work of the Fund in the following proportions: country-specific work, with 109 countries classified as program/intensive, 66 resident representative posts authorized, and 203 staff years of Fund-financed technical assistance (47.2 percent); policy development, evaluation, and research devoted to substantive policy-related work, including the World Economic Outlook exercise (12.2 percent); statistics, information, and external relations including production of the Fund’s statistical publications, work with members on statistical policy, and increased demands on external relation activities as a result of efforts to provide greater openness of the institution (7.1 percent); external training, which encompasses the scholastic program of the IMF Institute, the Joint Vienna Institute, and regional courses (4.5 percent); administrative support, where investments in technology, coupled with work process improvements, have combined to produce a series of savings in the diverse activities within this category (16.8 percent); and Board of Governors and Executive Board (12.2 percent). (See Chart 10.)

    Organization and Staffing

    The first change in the Fund’s senior management structure since 1949 took place in financial year 1994 with the expansion from one to three in the number of Deputy Managing Directors. This change permitted a more team-oriented approach and strengthened the Fund’s management structure, which had carried an increased burden of responsibilities for a greatly enlarged membership in recent years.

    At the end of the financial year, there were 2,184 staff members from 115 countries.

    Financial Year 1996


    Early in 1995, the Board approved an Administrative Budget for 1995/96 of $475.1 million—a decrease of 2.7 percent over the revised budget for the previous year—and a capital project budget of $13.4 million ($5.6 million for building systems, $O.5 million for work-practice improvements, and $7.3 million for electronic data-processing equipment). The 1995/96 Administrative Budget represented a decision to hold expenses to a minimal real growth level. A policy of budgetary consolidation was adopted with across-the-board reductions in staffing positions as a result of productivity improvements. In addition, some targeted staffing reductions have also been possible through the introduction of new technologies and the substitution of external funding for some technical assistance experts who were previously financed from Fund resources. Among the limited number of new initiatives was a scheduled updating of the operating system on the Fund’s microcomputers.

    Organization and Staffing

    The total authorized staffing of the Fund has been reduced by 40 staff-years in financial year 1996. Of this reduction, 15.5 staff-years represent the abolition of regular staff positions, with the balance of the reduction composed of contractual resources, overtime, and Fund-financed technical assistance experts. At the same time, vacant positions will continue to be tilled, thereby moderating the ceiling reduction.

    No major organizational changes for financial year 1996 are planned at this time.


    (Values expressed in thousands of U.S. dollars)1


    Year Ended

    April 30, 1993:



    Year Ended

    April 30, 1994:



    Year Ended

    April 30, 1995:



    Year Ended

    April 30, 1996:

    Administrative Budget
    I.Personnel expenses
    Other personnel expenses95,961122,785127,143132,860
    II.Travel expenses
    Business travel43,67541,82041,08142,180
    Other travel24,49227,09931,28726,195
    III.Other administrative expenses
    Building occupancy28,36137,61339,80041,525
    Books and printing5,8647,0407,6097,860
    Supplies and equipment8,4368,6147,9358,175
    Data processing14,20715,85716,00617,300
    Total Administrative Budget389,072448,295462,242475,145
    Less: Reimbursement for administering the SDR Department–4,067–5,392–6,143
    Reimbursement for administering the SAF/ESAF–23,200–26,392–33,079
    Net Administrative Budget expenses2361,805416,511423,020475,145
    Capital Budget
    Capital project budgets39,050124,76017,44513,400
    Capital project disbursements17,57625,97532,889
    Table IX.2COST OF MAJOR FUND ACTIVITIES, FINANCIAL YEARS 1994-96(In millions of U.S. dollars)
    Financial Years
    Country-specific work212.6218.1224.6
    All except technical assistance166.2171.2177.7
    Technical assistance46.446.946.9
    Policy development, research, and evaluation52.856.357.6
    Statistics, information, and external relations32.933.032.8
    Administrative support80.477.584.5
    External training21.321.023.7
    Board of Governors and Executive Board48.356.352.0


    (As a percentage of total costs)

    Note: Information is based on financial year 1995 outturn of expenditures. The cost of general supervision, training, professional development, and leave has been distributed proportionally to each of the other categories.

    APPENDIX X Financial Statements

    Report of the External Audit Committee

    Washington, D.C.

    June 30, 1995

    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 International Monetary Fund covering the:

    • General Department for the year ended April 30, 1995,

    • SDR Department for the year ended April 30, 1995, and

    • the Accounts Administered by the International Monetary Fund, for the year ended April 30, 1995, which consist of the:

      • Enhanced Structural Adjustment Facility Trust,

      • Enhanced Structural Adjustment Facility Administered Accounts:

        • — Austria,

        • — Belgium,

        • — Botswana,

        • — Chile,

        • — Greece,

        • — Indonesia,

        • — Iran,

        • — Portugal,

        • — Saudi Fund for Development Special Account,

      • Administered Accounts Established at the Request of a Member:

        • — Administered Account Japan,

        • — Administered Technical Assistance Account Japan,

      • Trust Fund,

      • Supplementary Financing Facility Subsidy Account,

      • Retired Staff Benefits Investment 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 of the International Monetary Fund and also used other audit procedures as deemed necessary.

    Audit Opinion

    In our opinion, the financial statements of the General Department, the SDR Department, and the Accounts Administered by the International Monetary Fund, including new accounts established in financial year 1995, 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, 1995, and of the financial results of operations and transactions during the period then ended.


    /s/ Gerwald Kern, Chairman (Germany)

    /s/ Iqbal Batty (Botswana)

    /s/ Ioanc Naiveli (Fiji)

    General Department Balance Sheets as at April 30, 1995 and 1994

    (In thousands of SDRs)(Note 1)
    General Resources Account
    Currencies and securities (Notes 2 and 5)145,298,032140,980,507
    SDR holdings (Note 3)1,000,6556,037,761
    Gold holdings (Note 4)3,624,7973,624,797
    Charges receivable (Note 5)1,517,4121,319,916
    Interest receivable on SDR holdings20,44765,944
    Other receivables (Notes 2 and 5)77,38077,380
    Other assets (Note 6)120,064107,672
    Total General Resources Account151,658,787152,213,977
    Special Disbursement Account
    Structural adjustment facility loans1,650,7371,835,247
    Interest receivable9,8896,098
    Total Special Disbursement Account1,845,5362,067,810
    Total Assets153,504,323154,281,787
    Quotas, Reserves, Liabilities, and Resources
    General Resources Account
    Quotas (Note 2)144,954,400144,859,000
    Reserves (Note 7)1,786,5461,701,472
    Special Contingent Accounts (Note 5)1,369,9151,154,493
    Borrowing (Note 8)1,959,6263,060,000
    Remuneration payable (Note 5)234,119182,459
    Interest payable21,35726,515
    Other liabilities230,657187,103
    Deferred income from charges (Note 5)1,102,1671,042,935
    Total General Resources Account151,658,787152,213,977
    Special Disbursement Account
    Accumulated resources1,842,3282,065,219
    Deferred income (Note 5)3,2082,591
    Total Special Disbursement Account1,845,5362,067,810
    Total Quotas, Reserves, Liabilities, and Resources153,504,323154,281,787
    The accompanying notes and schedules are an integral part of the financial statements.
    /s/ Günter Wittich

    Acting Treasurer
    /s/ M. Camdessus

    Managing Director

    Income Statements for the years ended April 30, 1995 and 1994

    (In thousands of SDRs)(Note 1)
    General Resources Account
    Operational Income (Note 5)
    Periodic charges1,282,8531,173,120
    Interest on SDR holdings216,410299,507
    Service charges52,95826,202
    Stand-by, special charges, and other income1,5689,292
    Burden-sharing contributions net of refunds (Note 5)
    Additional charges83,20796,645
    Reduction of remuneration192,153154,367
    Operational Expense
    Remuneration (Note 5)1,053,525992,862
    Interest on borrowing127,610147,156
    Allocation to the Special Contingent Accounts (Note 5)215,422242,597
    Deferred income, net of settlements59,232(15,015)
    Net Operational Income373,360391,533
    Administrative Expenses (Notes 1 and 9)288,286318,002
    Net income of General Resources Account
    Before Net Effect of Changes in Accounting
    Cumulative effects of changes in accounting methods
    (Notes 1 and 9)
    Accounting for property and equipment48,418
    Accrual of post-retirement medical and life insurance benefits(47,800)
    Net Income of General Resources Account85,07474,149
    Special Disbursement Account
    Investment income9,09123,906
    Interest and special charges8,0998,727
    Administrative expenses (Note 9)22,52419,200
    Net (Loss) Income of Special Disbursement Account(5,334)13,433
    The accompanying notes and schedules are an integral part of the financial statements.

    Statements of Changes in Reserve and Resources for the years ended April 30, 1995 and 1994

    (In thousands of SDRs)(Note 1)
    Reserves—General Resources Account
    Special Reserve (Note 7)
    Balance, beginning of the year1,335,8921,261,743
    Net Income85,07474,149
    Balance, end of the year1,420,9661,335,892
    General Reserve (Note 7)
    Balance, beginning and end of the year365,580365,580
    Total Reserves of the General Resources Account1,786,5461,701,472
    Resources—Special Disbursement Account
    Balance, beginning of the year2,065,2192,499,884
    Transfers from Trust Fund3,72459,605
    Transfers from SFF Subsidy Account632
    Transfers to ESAF Trust(221,913)(507,703)
    Net (loss) income(5,334)13,433
    Total Resources of the Special Disbursement Account1,842,3282,065,219
    The accompanying notes and schedules are an integral part of the financial statements.

    Notes to the Financial Statements April 30, 1995 and 1994

    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, 1905.

    General Resources Account

    The General Resources Account reflects the receipt of quota subscriptions, purchases and repurchases, collection of charges on members’ use of Fund credit and payment of remuneration on creditor positions in the Fund, and repayment of principal and interest to the Fund’s lenders. Assets held in the General Resources Account include (1) currencies (including securities) of the Fund’s member countries, (2) SDR holdings, and (3) 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 general resources are intended to ensure that their use is temporary and will be reversed within the relevant repurchase periods.

    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 and are not subject to repurchase obligations or charges.

    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 improve.

    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 on concessional terms to qualifying low-income developing members.

    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 needs 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 FSAF 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 ESAF Trust Reserve Account after the discharge of remaining liabilities shall be transferred to the Special Disbursement Account. In financial years 1994 and 1995, the Fund transferred certain resources derived from the termination of the 1976 Trust Fund to the FSAF Trust Subsidy Account. Upon liquidation of the FSAF Trust, any resources remaining in the ESAF Trust Subsidy Account will be returned to the Special Disbursement Account and the contributors of the ESAF Trust Subsidy Account.

    1. Summary of Significant Accounting Practices

    Unit of Account

    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 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 review of the SDR valuation basket, which is conducted every five years. 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:

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

    Valuation of Cinrencies

    Currencies are valued in terms of the SDR on the basis of the representative exchange rate determined for each currency, Each member is obligated to maintain the value of the balances of its currency held by the Fund in the General Resources Account in terms of the SDR. 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.

    Income Recognition

    The Fund maintains its accounts on an accrual basis; accordingly, income is recognized as it is earned, and expenses are recorded 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 also Note 5).

    Capital Assets

    On May 1, 1993, the Fund adopted depreciation accounting and capitalized land and buildings at their historical cost less their estimated depreciation. The Fund capitalizes assets with a cost in excess of S100,(X)0. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

    Post-Retirement Benefits

    The Fund provides certain health care benefits to staff and retirees that elect to participate in its medical benefits and life insurance plans. Participants and the Fund contribute toward meeting the costs of these benefits. During financial year 1994, the Fund adopted the accrual method of accounting for its share of the expense of providing post-retirement medical and life insurance benefits to retirees. Prior to financial year 1994, the Fund recognized these costs on a pay-as-you-go basis.

    2. Quotas, Currencies, and Securities

    Each member is required to pay to the Fund the amount of its initial quota and subsequent increases partly in the member’s own currency and the remainder in the form of reserve assets, except that 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.

    Changes in the Fund’s holdings of members’ currencies and securities for the year ended April 30, 1995 were as follows:

    April 30,

    April 30,


    In millions of SDRs
    Members’ quotas144,954144,85995
    Members’ outstanding use of Fund credit in the GRA32,14025,5336,607
    Less other receivables(77)(77)
    Members’ outstanding reserve tranche positions in the GRA(31,720)(29,338)(2,382)
    Administrative currency balances14(3)
    Currencies and securities145,298140,9814,317

    On December 14, 1992, the Republic of Bosnia and Herzegovina and the Federal Republic of Yugoslavia (Serbia/Monte negro) agreed, as successor states, to share in the assets and liabilities of the former Socialist Federal Republic of Yugoslavia. As of April 30, 1995, these states had not succeeded to Fund membership. Fund credit outstanding at April 30, 1995 and 1994 includes overdue credit amounting to SDR 77.4 million with respect to these two states. This amount is disclosed separately as other receivables in the balance sheets.

    Each member is obligated to maintain the value of the balances of its currency held by the Fund in the General Resources Account in terms of the SDR, and therefore the Fund periodically revalues its holdings of a member’s currency. At April 30, 1995, when all holdings of currencies of members were last revalued, receivables and payables arising from valuation adjustments amounted to SDR 21,174.0 million and SDR 2,355.0 million, respectively (SDR 18,644.5 million and SDR 809.1 million, respectively at April 30, 1994). The receivable or payable balances are reflected in the Fund’s total currency holdings. At June 27, 1995, the amounts receivable were SDR 9,348.7 million, and the amounts payable were SDR 748.5 million. The Fund’s holdings of members’ currencies at April 30, 1995 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, 1995 and April 30, 1994, 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 for 21,396 fine ounces that were acquired in financial year 1993 at a market value equivalent to SDR 5.1 million.

    5. Fund Operations

    The Fund’s financial resources are made available to members under a number of policies and facilities that differ in the type of balance of payments need they seek to address, in the length of repurchase period, and in the degree of condition ality attached to them. Changes in the outstanding use of Fund credit under various facilities during the year ended April 30, 1995 were as follows:

    April 30,

    PurchasesRepurchasesApril 30,

    In millions of SDRs
    Regular facilities6,2367,5871,26412,559
    Compensatory and contingency financing facility3,7562871,0223,021
    Extended Fund facility6,3271,0395066,860
    Systemic transformation facility2,7251,1233,848
    Supplementary financing facility191191
    Enlarged access6,2985561,1935,661

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


    The Fund levies periodic charges on its holdings of members’ currencies that derive from their use of Fund credit. The rate of charge is set as a proportion of the SDR interest rate. This rate is adjusted periodically to offset the effect on income of the deferral of charges and to finance the additions to the Special Contingent Accounts, winch ate fun her discussed below. Special charges are levied on holdings that are not repurchased when due, and on overdue 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 is levied by the Fund on each purchase, except on a reserve tranche purchase; a stand-by fee is charged on stand-by and extended arrangements and is refunded in proportion to purchases made under the arrangement.

    At April 30, 1995, the total holdings on which the Fund levied charges amounted to SDR 32,140.4 million (SDR 25,532.7 million at April 30, 1994).


    The Fund pays remuneration on a member’s remunerated reserve tranche position. A remunerated reserve tranche position is the amount by which the Fund’s holdings of a member’s currency (excluding holdings that derive from the use of Fund credit) is below the member’s norm. The norm varies for each member and, on average, amounted to 94.5 percent of quota at April 30, 1995, The rate of remuneration is equal to the SDR interest rate and is adjusted subject to a specific floor, to offset the effect of the deferral of charges on income and to finance the additions to the Special Contingent Accounts, as discussed below.

    At April 30, 1995, the total creditor positions on which the Fund paid remuneration amounted to SDR 25,332.1 million (SDR 22,950.5 million at April 30, 1994).

    Overdue Obligations

    At April 30, 1995, six members were six months or more overdue in settling their financial obligations to the Fund (seven members at April 30, 1994); five of these members were overdue to the General Department (six at April 30, 1994). 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 their financial obligations to the Fund. Credit extended to these members and successor states through the General Resources Account and the Special Disbursement Account, including SAF loans, amounted to SDR 1,851.2 million as of April 30,1995 (SDR 1,894.8 million as of April 30, 1994).

    One of the overdue members (Zambia) has been settling obligations as they fall due and is implementing a rights accumulation program that could lead to the settlement of its arrears. During the year ended April 30, 1995, one member (Haiti) fully settled its overdue financial obligations to the Fund. This restored this member’s eligibility to use the Fund’s general resources.

    Overdue repurchases and SAF loan repayments and charges and SAF interest of the five members (six members at April 30, 1994) and the two successor states of the former Socialist Federal Republic of Yugoslavia that are six months or more overdue to the General Department were as follows:


    and SAF Loans
    Charges and

    SAF Interest
    In millions of SDRs
    Total overdue1,7281,7051,0811,025
    Overdue for six months or more1,7011,6671,049994
    Overdue for three years or more1,5121,432868718

    The type and duration of the arrears of these members and two successor states of the former Socialist Federal Republic of Yugoslavia were as follows:


    and SAF


    and SAF




    In millions of SDRs
    Bosnia and Herzegovina, Republic of17.72.720.4September 1992
    Liberia201.6179.3380.9January 1985
    Somalia101.162.0163.1July 1987
    Sudan594.9508.31,103.2August 1984
    Yugoslavia, Federal Republic of (Serbia/Montenegro)48.87.456.2September 1992
    Zaïre219.640.2259.8February 1991
    Zambia544.6280.7825.3July 1986

    Strengthened Cooperative Strategy

    The Fund follows a cooperative strategy aimed at resolving the issue of overdue obligations to the Fund. Three major elements form the basis of the cooperative strategy: (1) preventative measures, (2) remedial and deterrent measures, and (3) intensified collaboration and the rights approach. Under the intensified collaborative approach, the Fund has developed 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 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 1,102.2 million at April 30, 1995 (SDR 1,042.9 million at April 30, 1994).

    Since May 1, 1986, the Fund has adopted decisions 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 deterred charges and the first Special Contingent Account (see following paragraphs). The proceeds from the subsequent 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, 1995, SDR 1,369.9 million was held in the first and second Special Contingent Accounts (SCA-1 and SCA-2). A total of SDR 602.3 million was held in the SCA-1 (SDR 517.2 million at April 30, 1994), and SDR 767,6 million was held in the SCA-2 at April 30, 1995 (SDR 637.3 million at April 30, 1994). The Special Contingent Accounts are also financed by additional quarterly adjustments to the rate of charge and the rate of remuneration. 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 was established on July 1, 1990 (as part of the strengthened cooperative strategy) so as to accumulate SDR 1.0 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. The resources accumulated in the SCA-2 safeguard against potential losses arising from purchases made under a successor arrangement after a rights accumulation program which 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. Use of Fund credit in the General Resources Account following the completion and encashment of rights accumulation programs amounted to SDR 621.0 million at April 30, 1995 and April 30, 1994.

    The allocations to the SCA-1 and SCA-2, the costs of deferred charges, and corresponding adjustments to charges and remuneration during the year ended April 30, 1995 were as follows:

    Total Costs

    and Allocations
    Adjustments to
    In millions of SDRs
    Deferred charges96.048.147.9
    Refunds of deferred charges36.118.217.9
    Burden-sharing contributions net of refunds275.483.2192.2

    The cumulative charges, net of settlements, that have been deferred since May 1, 1986, and have resulted in adjustments to charges and remuneration, amount to SDR 847.4 million (SDR 787.5 million at April 30, 1994). The cumulative refunds for the same period amount to SDR 679.7 million (SDR 643.6 million at April 30, 1994).

    6. Other Assets

    Other assets include capital assets, which at April 30, 1995 amounted to SDR90.0 million (SDR 78.1 mil lion at April 30, 1994), net of accumulated depreciation of SDR 62.2 million SDR 57.8 million at April 30, 1994). These consist of land (SDR 33.6 million), buildings (SDR 32.1 million), equipment (SDR 9.9 million), and construction in progress (SDR 14.4 million). A net amount of SDR 48.4 million was capitalized as a result of the accounting change on May 1, 1993 and was included in the-Income Statement and in other assets for the year ended April 30, 1994.

    7. 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.

    8. Borrowing

    Outstanding borrowing by the Fund amounted to SDR 1,960 million at April 30, 1995, representing outstanding balances under the bilateral arrangements with japan, which will be repaid during financial year 1996 (SDR 3,060 million at April 30, 1994, consisting of SDR 2,985 million outstanding under the bilateral arrangements with Japan and SDR 75 million outstanding under enlarged access arrangements).

    Bilateral Arrangements with Japan

    In December 1986, the Government of Japan agreed to make available to the Fund SDR 3.0 billion to help finance the Fund’s support of adjustment programs of member countries. Calls were made by the Fund over a period of tour years until resources under this borrowing agreement were fully draw n 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 Fund entered into borrowing agreements under which the lenders made resources equal to SDR 13.5 billion available to the Fund to finance purchases by members under the enlarged access policy. Interest rates on amounts borrowed varied and were based on Eurocurrency deposit rates and weighted average yields of domestic instruments denominated in the five currencies in the SDR valuation basket. Balances outstanding under these arrangements as of April 30, 1994 were fully repaid during financial year 1995.

    General Arrangements in Borrow

    Under the General Arrangements to Borrow (GAB), the Fund may borrow up to SDR 18.5 billion when supplementary resources are needed, in particular, 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, 1995, the GAB had not been activated.

    9. Administrative Expenses

    For the year ended April 30, 1995, the Fund incurred administrative expenses for personnel (SDR 217.5 million), travel (SDR48.0 million), and other administrative needs (SDR 22.8 million). Administrative expenses, which are net of reimbursements, include pension plan contributions, post-retirement benefits other than pensions, and depreciation expense. The General Resources Account is reimbursed for expenses incurred in administering the SDR Department (SDR 4.2 million for the year ended April 30, 1995), the Special Disbursement Account and the Enhanced Structural Adjustment Facility Trust (SDR 22.5 million for the year ended April 30, 1995), and for other services (SDR 16,4 million for the year ended April 30, 1995).

    The Fund has a defined-benefit Staff Retirement Plan and a defined-benefit Supplemental Retirement Benefits Plan (“the Plans”). All contributions to the Plans and all other assets, liabilities, and income of the Plans are administered separately from the General Department and can be used only for the benefit of the participants in the Plans and their beneficiaries. Participants contribute a fixed percentage of their pensionable remuneration. The Fund contributes the remainder of the cost of funding the Plans and pays certain administrative costs of the Plans. The Fund uses the aggregate cost method for determining its pension cost and for funding the Plans. 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 Plans and are determined annually as a percentage of pensionable remuneration of the participants. The funding and cost of the Plans for the year ended April 30, 1995 are based on an actuarial valuation at April 30, 1994.

    The Fund provides certain health care benefits to retirees who elect to continue participation in its medical benefits and group life insurance plans through retirement. Participants and the Fund contribute toward meeting the costs of these benefits. As described in note 1, the fund recognizes its share of health care costs on an accrual basis. The Fund’s cost, which includes a current-year cost and a past-service obligation, is determined actuarially on the basis of the actual experience of the Fund’s medical and life insurance plans, a discount rate of 8.5 percent, and an increase in medical costs at an annual rate of 12 percent, declining to 6 percent over time, and other factors on the demographics of participants. The cumulative cost was actuarially estimated at SDR 81.7 million as of April 30, 1995 (SDR 121.4 million as of April 30, 1994). At April 30, 1995, SDR 70.7 million of the cumulative cost has been charged in full to the Fund’s income (SDR 61.4 million as of April 30, 1994, of which SDR 47.8 million, representing the future cost of medical benefits for retirees at the time of the accounting change, is reflected as the cumulative effect of a change in accounting method). The unrecognized portion, equal to SDR 11.0 million, is being amortized over the average remaining service life of staff.

    On April 3, 1995, the Fund established a Retired Staff Benefits Investment Account (RSBIA) to hold and invest the resources contributed by the Fund toward the payment of post-retirement medical and life insurance benefits. The RSBIA shall also accumulate resources to fund future medical and life insurance benefits to current staff after their retirement. The resources of the account shall be kept separate from the property and assets of all other accounts of, or administered by, the Fund. An amount of SDR 73.3 million was invested in the RSBIA during financial year 1995. The Fund will make periodic contributions to the RSBIA, based on the actuarially determined cost, which is recognized as an expense in the General Resources Account.

    10. Arrangements in the General Department

    At April 30, 1995, 33 arrangements were in effect, and undrawn balances under these arrangements amounted to SDR 8,326.0 million, These arrangements are listed in Schedule 3. It should be noted that Mexico’s stand-by arrangement, amounting to SDR 5,259.9 million at April 30, 1995, may be augmented by up to SDR 6,810.3 million to the extent that the contributions of governments and central banks fall short of $10.0 billion.

    The systemic transformation facility (STF) was established to provide Fund credit to members that are in an early stage of the transition process. Use of Fund credit under the STF was limited to 50 percent of quota, divided into two equal disbursements. In accordance with the decision establishing this facility, the period within which a member could make a first purchase expired on April 30, 1995. With respect to members that have only made their first purchase under the STF at April 30, 1995, the period during which they may make their second purchase will expire on December 31,1995. At April 30, 1995, 20 members had made drawings under this facility amounting to SDR 3,848.0 million. A further SDR 447.2 million may still be drawn by eight of these members by December 31, 1995.

    Schedule 1 Quotas, Fund’s Holdings of Currencies, Members’ Use of Fund Resources, and Reserve Tranche Positions as at April 30, 1995

    (In thousands of SDRs)
    General Resources Account
    Fund’s holdings

    of currencies1

    of quota
    Use of






    Afghanistan, Islamic State of120,400115,48895.94,928
    Antigua and Barbuda8,5008,499100.01
    Armenia, Republic of67,50084,375125.016,8755
    Bahamas, The94,90088,66393.46,239
    Belarus, Republic of280,400420,600150.0140,20020
    Bosnia and Herzegovina, Republic of20,539
    Burkina Faso44,20036,99983.77,20118,960
    Cape Verde7,0006,999100.01
    Central African Republic41,20051,818125.810,7109416,416
    Costa Rica119,000141,928119.331,6408,725
    Côte d’Ivoire238,200324,958136.486,83988
    Croatia, Republic of261,600411,731157.4150,119
    Czech Republic589,600589,600100.03
    Dominican Republic158,800283,070178.3124,270
    El Salvador125,600125,603100.0
    Equatorial Guinea24,30024,309100.011,414
    Estonia, Republic of46,500109,270235.062,7756
    Gambia, The22,90021,41893.51,4857,067
    Georgia, Republic of111,000138,750125.027,75010
    Iran, Islamic Republic of1,078,5001,078,510100.0
    Kazakhstan, Republic of247,500445,500180.0198,0005
    Kyrgyz Republic64,500108,360168.043,8605
    Lao People’s Democratic Republic39,10039,100100.019,924
    Latvia, Republic of91,500201,300220.0109,8005
    Lithuania, Republic of103,500238,050230.0134,5505
    Macedonia, former Yugoslav Republic of49,60063,185127.413,583
    Marshall Islands2,5002,500100.01
    Moldova, Republic of90,000218,750243.1128,7505
    New Zealand650,100545,14683.9104,962
    Papua New Guinea95,300100,618105.65,35453
    Poland, Republic of988,5001,551,676157.0640,30077,125