International Monetary Fund Annual Report 2016 Financial Statements
Chapter

General Department: Notes to the consolidated financial statements for the years ended April 30,2014, and 2013

Author(s):
International Monetary Fund
Published Date:
September 2016
Share
  • ShareShare
Show Summary Details

1. Nature of operations

The International Monetary Fund (“IMF” or “the Fund”) is an international organization with 188 member countries. It was established to promote international monetary cooperation and exchange stability and to maintain orderly exchange arrangements among members; to facilitate the expansion and balanced growth of international trade, and contribute thereby to the promotion and maintenance of high levels of employment; to assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions which hamper the growth of world trade; and to provide temporary financial assistance under adequate safeguards to member countries to assist in solving their balance of payments problems in a manner consistent with the provisions of the IMF’s Articles of Agreement.

The IMF conducts its operations and transactions through the General Department. The General Department consists of three accounting entities: (1) the General Resources Account (GRA), (2) the Investment Account (IA), and (3) the Special Disbursement Account (SDA). The SDA includes the Multilateral Debt Relief Initiative-I Trust (MDRI-I Trust), for which the IMF is the Trustee and over which the SDA has control.

The IMF also administers the Special Drawing Rights Department (SDR Department). The resources of the SDR Department are held separately from the assets of all the other accounts owned, or administered by, the IMF. As specified in the IMF’s Articles of Agreement, these resources may not be used to meet the liabilities, obligations, or losses incurred in the operations of the General Department (or vice versa), except that expenses of conducting the business of the SDR Department are paid by the General Department and are then reimbursed by the SDR Department to the General Department. As the General Department does not have control over the SDR Department, the financial statements of the SDR Department are presented separately.

The IMF also administers and/or executes other trusts and administered accounts established to perform financial and technical services consistent with the IMF’s purposes. The resources of these other trusts and administered accounts are contributed by members or by the IMF through the SDA. The assets of the other trusts and administered accounts do not belong to the General Department. As the General Department does not have control over these entities, their financial statements are presented separately.

1.1 General Resources Account

The financial operations of the IMF with its members are primarily conducted through the GRA. The assets and liabilities in the GRA reflect the payment of member quota subscriptions, use and repayment of IMF credit, collection of charges from borrowers, payment of remuneration and interest on creditor positions and to lenders, and other operations.

1.2 Investment Account

The IA holds resources transferred from the GRA, which are invested to broaden the IMF’s income base. New rules and regulations for the IA became effective on January 23, 2013, and provide the framework for the implementation of the expanded investment authority, authorized under the Fifth Amendment to the IMF’s Articles of Agreement, and a key element of the IMF’s income model. Under this framework, the IA comprises two principal subaccounts, namely the Fixed-Income Subaccount and the Endowment Subaccount. A third subaccount, the Temporary Windfall Profits Subaccount, was closed in October 2013 following the transfer of SDR 1.75 billion from this subaccount to the GRA. The transfer was made in connection with the second partial distribution of the amounts in the General Reserve attributable to windfall gold sales profits (see Notes 7 and 15).

The Fixed-Income Subaccount holds resources transferred from the GRA that are not related to profits from gold sales. The investment objective of the Fixed-Income Subaccount is to produce returns in excess of the three-month SDR interest rate over time. Its assets are invested in obligations of IMF members and of international financial institutions that are denominated either in SDRs or in currencies included in the SDR basket. Assets are managed against a one- to three-year government bond benchmark weighted to reflect the currency composition of the SDR basket.

The Endowment Subaccount holds SDR 4.4 billion in profits from gold sales during the financial years 2010 and 2011. The Endowment Subaccount’s investment objective is to achieve a real return of 3 percent in U.S. dollar terms over the long term, consistent with the Investment Account’s objective to generate investment returns to contribute to the IMF’s income, while preserving long-term real value of these assets. Over a three-year period, beginning in financial year 2014, the endowment assets are being invested in a globally diversified portfolio consisting of fixed-income instruments and equities (including real estate investment trusts) in accordance with a strategic asset allocation benchmark (see Note 7). The bulk of the assets will be passively managed by external managers, following widely available benchmark indices. An initial allocation of 5 percent of the assets at the time of the effectiveness of the Rules and Regulations in January 2013 will be managed actively by external managers, with a 65 percent share of fixed-income instruments and 35 percent share for equities (the same as for the passively managed portion). The actively managed share will not exceed 10 percent of the total endowment assets.

The IMF Executive Board decides at the end of each financial year whether earnings generated by the IA should be retained in the IA or transferred to the GRA to help meet the expenses of conducting the business of the IMF.

1.3 Special Disbursement Account

The SDA is the vehicle used to receive profits from the sale of gold held by the IMF at the time of the Second Amendment of the IMF’s Articles of Agreement (1978). SDA resources can be used for various purposes as specified in the IMF’s Articles of Agreement, including transfers to the GRA for immediate use in operations and transactions, transfers to the I A, or for operations and transactions that are not authorized by other provisions of the Articles but are consistent with the purposes of the Fund, in particular to provide balance of payments assistance on special terms to low-income member countries.

The SDA currently holds claims related to outstanding loans extended under the Structural Adjustment Facility (SAF). Repayments of principal and interest from SAF loans are transferred from the SDA to the Reserve Account of the Poverty Reduction and Growth Trust (PRG Trust), which is administered separately by the IMF as Trustee.

1.4 Multilateral Debt Relief Initiative

The Multilateral Debt Relief Initiative (MDRI) provides debt relief to qualifying low-income member countries. For this purpose, the MDRI-I and MDRI-II Trusts were established on January 5, 2006, to provide grant assistance to eligible members. The consolidated financial statements incorporate the MDRI-I Trust through the SDA since the latter has control over the MDRI-I Trust. Grant assistance from the MDRI Trusts provides debt relief to cover debt owed to the IMF at December 31, 2004, that is not covered by debt relief under the Heavily Indebted Poor Countries (HIPC) Initiative and that has not been repaid at the time the member qualifies for HIPC relief. At April 30, 2014, and 2013, only one of the two remaining MDRI-eligible members had debt outstanding as of end-2004.

2. Basis of preparation and measurement

The consolidated financial statements of the General Department are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB). They have been prepared under the historical cost convention, except for the revaluation of financial assets at fair value through profit or loss.

2.1 Basis of consolidation

The consolidated financial statements of the General Department include the GRA, the IA, the SDA, and the MDRI-I Trust. Control is achieved where the IMF has the power over an entity and is exposed to variable returns from involvement with the entity and has the ability to affect these returns. All transactions and balances between these entities have been eliminated during consolidation.

2.2 Unit of account

The consolidated financial statements are presented in Special Drawing Rights (SDRs), which is the General Department’s unit of account. The value of the SDR is determined daily by the IMF by summing specific amounts of the four basket currencies in U.S. dollar equivalents on the basis of market exchange rates. The IMF reviews the composition of the SDR valuation basket at a minimum of five-year intervals. The last review was completed in November 2010. The currencies in the basket at April 30, 2014, 2013, and 2012 and their specific amounts, relative to one SDR, were as follows:

CurrencyAmount
Euro0,423
Japanese yen12.1
Pound sterling0,111
U.S. dollar0,660

At April 30, 2014, one SDR was equal to US$1.54969 (US$1,509 and US$1.55055 at April 30, 2013, and 2012, respectively).

2.3 Use of estimates and judgment

The preparation of consolidated financial statements requires management to make judgments, estimates, and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised and in any future periods affected.

Information about areas involving estimates and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the consolidated financial statements are described in Notes 3 and 17.

3. Summary of significant accounting policies

The accounting policies set out below comply with IFRS and have been applied consistently for all periods presented, except as otherwise noted.

3.1 New and Revised International Financial Reporting Standards and Interpretations

The following new standards and amendments to the existing standards have been issued by the IASB and have been adopted by the General Department for financial year ended April 30, 2014.

Amended IAS 19, “Employee Benefits” was issued in June 2011. The revised standard eliminates the option to defer actuarial gains and losses under the “corridor” method and requires all actuarial gains and losses to be recognized immediately in other comprehensive income. The standard replaces interest cost and expected return on plan assets with an interest amount calculated on the basis of the net defined benefit asset, or liability, and the discount rate determined at the beginning of the year. The General Department adopted the revised standard retrospectively in accordance with the transitional provisions set out in the standard (see below).

IAS 1 specifies that a statement of financial position as at the beginning of the preceding period (third statement of financial position) is required when an entity applies a new accounting policy retrospectively and the retrospective application has a material effect on the information in the third statement of financial position. IAS 1 also specifies that related notes are not required to accompany the third statement of financial position. In financial year ended April 30, 2014, the IMF has adopted the amended IAS 19 and, in accordance with IAS 1, has presented a third statement of financial position as of April 30, 2012, without the related notes except for the disclosure requirements of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (see below).

IFRS 13, “Fair Value Measurement” was issued in May 2011, and defines fair value and provides guidance on determining fair value and requires more extensive disclosures about fair value measurement. The implementation of IFRS 13 has resulted in additional disclosures in the General Department’s financial statements. In accordance with the transitional provisions of IFRS 13, the General Department has applied the new fair value measurement guidance prospectively and has not provided any comparative information for new disclosures. The change has no impact on the measurement of assets and liabilities.

The following new standards and amendments to existing standards issued by the IASB have no material impact on the General Department’s consolidated financial statements:

IFRS 10, “Consolidated Financial Statements” was issued in May 2011.

IFRS 11, “Joint Arrangements” was issued in May 2011.

IFRS 12, “Disclosure of Interests in Other Entities” was issued in May 2011.

IAS 27 (as revised in 2011), “Separate Financial Statements” was issued in May 2011.

IAS 28 (as revised in 2011), “Investments in Associates and Joint Ventures” was issued in May 2011.

Amended IFRS 7, “Financial Instruments: Disclosures” was issued in December 2011.

Amendments to IFRS 10, “Consolidated Financial Statements,” IFRS 11, “Joint Arrangements,” IFRS 12, “Disclosure of Interests in Other Entities,” and IAS 27, “Separate Financial Statements” were issued in October 2012.

The following new standards and amendments to existing standards have been issued by the IASB and are applicable for the General Department but have not yet been adopted.

IFRS 9, “Financial Instruments” was issued in November 2009 as the first step in replacing IAS 39, “Financial Instruments: Recognition and Measurement.” IFRS 9 was originally issued in November 2009, reissued in October 2010, and then amended in November 2013. The standard requires all financial assets to be classified at fair value through profit or loss or amortized cost on the basis of the entity’s business model for managing financial assets and the contractual cash flow characteristics of the financial asset. The current version of IFRS 9 does not include a mandatory effective date but is available for adoption. An effective date will be added when all phases of the project are complete and a final version of IFRS 9 is issued. Upon the lASB’s issuance of IFRS 9, the impact of its adoption will be assessed.

Further amendments to IAS 19 were issued in November 2013. The amendment clarifies the application to plans that require employees to contribute toward the cost of benefits. Contributions that are linked to service, and do not vary with the length of service, are allowed to be deducted from the cost of benefits earned in the period that the service is provided.

3.2 Quotas and reserve tranche positions

The IMF’s resources are provided by its members through the payment of quotas, which broadly reflect each member’s relative position in the global economy. Quotas also determine each member’s relative voting power, and its share in SDR allocations. The IMF conducts general reviews of all members’ quotas at intervals of not more than five years. The reviews allow the IMF to assess the adequacy of quota resources to meet its financing needs and to allow for adjustments of members’ quotas to reflect their relative positions in the world economy.

Member quota increases are recorded when a member consents to the quota increase and makes the actual payment. A quarter of a member’s quota is normally paid either in SDRs or in the currencies of other members specified by the IMF, or in any combination of SDRs and such currencies, and the remainder is paid in the member’s own currency. Should a member withdraw from the IMF, its quota subscription is refunded to the extent it is not needed to settle the net obligations of the member to the IMF.

A member’s reserve tranche is equivalent to its quota less the GRA’s holdings of its currency, excluding holdings that reflect the member’s use of GRA credit. Reserve tranches result from quota payments and from the use of the member’s currency in the GRA’s transactions or operations. A member’s reserve tranche is also considered a part of its international reserves and a liquid claim against the GRA. Quota subscriptions and the reserve tranche positions are classified as liabilities as they embody an unconditional obligation to redeem the instrument, in the case of quotas only upon a member’s withdrawal from the IMF.

3.3 Currencies

Currencies consist of members’ currencies held by the GRA and securities (issued by members), which are non-interest-bearing and are encashable by the IMF on demand. Usable currencies are currencies of members considered to have a strong balance of payments and reserves position that can be used to finance the GRA’s lending activities through a quarterly financial transactions plan approved by the Executive Board. Usable currencies and the GRA’s SDR holdings are considered cash equivalents in the statement of cash flows. Currencies of members that are not deemed to be sufficiently strong to have their currencies used to finance the use of resources by members are not considered usable currencies or cash equivalents in the presentation of the statement of cash flows.

All currencies in the GRA are revalued in terms of the SDR at each financial year end, resulting in currency valuation adjustments, which members are required to settle promptly. Member currencies are also revalued in SDR terms whenever used by the GRA in an operation or transaction with another member or at the request of a member. The currency balances in the statements of financial position include the receivables and payables arising from the revaluation.

3.4 SDR holdings

SDRs are not allocated to the IMF, but the IMF, through the GRA, receives and holds SDRs from members in the settlement of their financial obligations to the GRA. In addition, SDRs can be used in a number of transactions and operations with members, including the provision of SDRs to purchasing members and the payment of remuneration on reserve tranche positions or interest on borrowings to member countries and lenders. The GRA earns interest on its SDR holdings at the same rate as other holders of SDRs.

3.5 Arrangements and credit outstanding

An arrangement is a decision of the IMF Executive Board that gives a member the assurance that the GRA stands ready to provide usable currencies or SDRs during a specified period and up to a specified amount, in accordance with the terms of the arrangement. Credit outstanding represents financing provided to members under the various IMF financing facilities. Members receive financing in the GRA by purchasing SDRs or usable currencies in exchange for their own currencies. IMF credit is repaid by members by repurchasing holdings of their currencies in exchange for SDRs or usable currencies. Depending on the type of financing facility, repurchase periods for GRA financing vary from 3% to 10 years.

An impairment loss under IFRS would be recognized if there is objective evidence of impairment as a result of a past event that occurred after initial recognition, and is determined as the difference between the outstanding credit’s carrying value and the present value of the estimated future cash flows. Such cash flows would take into account the proceeds from the burden sharing mechanism, explained below. No impairment losses have been recognized in the financial years ended April 30, 2014, and 2013.

3.6 Burden sharing mechanism for deferred charges and the Special Contingent Account

The IMF does not recognize income from interest charged on the use of IMF resources by members that are at least six months overdue in meeting any financial obligation to the IMF (deferred charges). The IMF fully recovers such interest income under the burden sharing mechanism, through adjustments to the rates of charge and remuneration. Members that participate in burden sharing for deferred charges receive refunds to the extent that the deferred charges are subsequently collected.

The IMF accumulates balances in the Special Contingent Account (SCA-1) under the burden sharing mechanism. The SCA-1 is intended to address the risks posed to the IMF by overdue financial obligations. Balances in the SCA-1 would be used first if the IMF were to incur any loss from overdue obligations. Balances in the SCA-1 are refundable to the members that shared the cost of its financing, in proportion to their contributions, when there are no outstanding overdue repurchases and charges, or at such earlier time as the IMF may decide (see Note 10). Effective November 1, 2006, the IMF’s Executive Board decided to suspend, for the time being, further additions to the SCA-1.

3.7 Investments

In accordance with IMF policy, investments may be held in equity securities, fixed-term deposits, fixed-income securities, inflation-linked bonds, and real estate investment trusts (REITs). Investments in the Fixed-Income Subaccount comprise short-term investments and fixed-income securities. Fixed-income securities include domestic government bonds of the Euro area, Japan, the United Kingdom, and the United States, and medium-term instruments issued by the Bank for International Settlements (BIS). The short-term investments are measured at amortized cost while the fixed-income securities are designated as financial assets measured at fair value through profit or loss. Resources in the Endowment Subaccount will be primarily managed passively to closely track benchmark indices in bonds, equities, and REITs. Investments in the Endowment Subaccount include (i) fixed term deposits, measured at amortized cost; and (ii) developed market equities, emerging market equities, developed market sovereign bonds, developed market corporate bonds, emerging market bonds, inflation-linked bonds, and REITs, designated as financial assets measured at fair value through profit or loss.

3.7.1. Recognition

Investments are recognized on the trade date at which the IMF becomes a party to the contractual provisions of the instrument. The corresponding investment trades payable is recognized pending settlement of a transaction.

3.7.2. Derecognition

Investments are derecognized when the contractual rights to the cash flows from the asset expire, or when substantially all the risks and rewards of ownership of the investment are transferred.

3.7.3. Investment income

Investment income comprises interest and dividend income, realized gains and losses, and unrealized gains and losses, including currency valuation differences arising from exchange rate movements against the SDR.

Interest income is recognized on an accrual basis under the effective interest rate method. Dividend income is recognized on an accrual basis based on ex-dividend date.

3.7.4. Derivative instruments

The fair value of derivative instruments is included in investments, and the changes in fair value of such contracts are recognized through profit or loss in the financial statements.

3.8. Gold holdings

The IMF values its gold holdings at historical cost using the specific identification method. In accordance with the provisions of the Articles of Agreement, whenever the IMF sells gold held on the date of the Second Amendment of the Articles (April 1978), the portion of the proceeds equal to the historical cost must be placed in the GRA. Any portion of the proceeds in excess of the historical cost will be held in the SDA or transferred to the IA. Profits from the sale of gold acquired after the Second Amendment are to be placed in the IA under the amendment to the Articles on the expanded investment authority of the IMF, while an amount equivalent to the historical cost is placed in the GRA (see Note 8).

3.9. Fixed assets

Tangible and intangible fixed assets (see Note 9) are capitalized and depreciated or amortized over the estimated remaining useful lives using the straight-line method. Buildings, furniture, and equipment are depreciated over 30, 7, and 3 years, respectively. Leasehold improvements are depreciated over the term of the lease agreement. Software is amortized over three to five years.

3.10 Leases

The IMF has entered into operating lease agreements as a lessor and lessee. All the risks and benefits of ownership are retained by the lessor. Payments made under operating leases are recognized as an expense on a straight-line basis over the period of the lease.

3.11 Post-employment Benefits

The IMF has a defined benefit Staff Retirement Plan (SRP) that covers substantially all eligible staff, a Supplemental Retirement Benefits Plan (SRBP) for a subset of participants of the SRP, and a Retired Staff Benefits Investment Account (RSBIA) to hold and invest resources set aside to fund the cost of post-retirement benefits. The liability recognized in the statement of financial position in respect of employee benefits is the present value of the defined benefit obligation at the end of the reporting period less the fair value of the plan assets. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using market yields on high quality corporate bonds using the Projected Unit Credit Method (see Note 17).

During the financial year ended April 30, 2014, the IMF adopted the revised IAS 19. As required by the transitional provisions under the revised standard, the opening balances as of May 1, 2013, and the other comparative amounts have been presented as if the amended IAS 19 had always been applied. The effect of adoption on prior periods on the components of the financial statements is shown in the tables below.

Effect on the consolidated statement of comprehensive income for the financial year ended April 30, 2013:

Amount previously reportedChange in reported figuresRestated amount
(In millions of SDRs)
Effect on net operational income
Administrative expenses75130781
Net operational income2,004(30)1,974
Effect on other comprehensive income
Remeasurement of net defined benefit obligation(76)(76)
Other comprehensive income(76)(76)
Total comprehensive income2,004(106)1,898

Effect on the consolidated statements of financial position:

Pension assets and other assetsEmployee benefitsReserves of the General Resources Account
(In millions of SDRs)
As of May 1,2012
Balance previously reported43015,206
Cumulative effect for prior periods(220)1,118(1,338)
Restated balance2101,11813,868
As of April 30, 2013
Balance previously reported47616,504
Cumulative effects for prior periods(220)1,118(1,338)
Change in reported figures for the year(186)(80)(106)
Restated balance701,03815,060

3.12 Borrowings

The IMF can borrow to temporarily supplement its quota resources. The Executive Board has established guidelines on borrowing by the IMF to ensure that the financing of the IMF is managed in a prudent and systematic manner. The IMF’s main standing borrowing arrangement is the enlarged and expanded New Arrangements to Borrow (NAB). The IMF may also borrow under bilateral agreements, in particular loan and note purchase agreements (bilateral borrowing agreements), the General Arrangements to Borrow (GAB), and an associated agreement with Saudi Arabia (see Note 11).

Drawings under current borrowings are denominated in SDRs, carry the SDR interest rate, and are measured at amortized cost.

3.13 Reserves of the General Resources Account

The IMF’s reserves (retained earnings) consist of the General Reserve and the Special Reserve. The General Reserve may be used to meet capital losses, operational deficits, or for distribution, and the Special Reserve can be used for the above purposes except distribution.

The IMF Executive Board determines annually what part of its net income, if any, will be retained and placed in the General Reserve or the Special Reserve, and what part, if any, will be distributed. Net losses are charged against the Special Reserve under currently applicable Executive Board decisions.

3.14 Charges

The IMF earns interest, referred to as charges, on members’ use of IMF credit. The basic rate of charge is the SDR interest rate plus a margin expressed in basis points that is determined by the Executive Board. The SDR interest rate is determined weekly by reference to the yields on short-term instruments in the capital markets of the Euro area (three-month Eurepo rate), Japan (three-month Treasury Discount Bills), the United Kingdom (three-month Treasury Bills), and the United States (three-month Treasury Bills). Under the burden sharing mechanism, the rate of charge is adjusted to generate amounts to cover income not recognized due to charges not paid by members in protracted arrears.

Effective August 1, 2009, credit outstanding in excess of 300 percent of quota resulting from purchases in the credit tranches (including under the Stand-By (SBA), the Extended Fund Facility (EFF), Flexible Credit Line (FCL), and Precautionary and Liquidity Line (PLL) arrangements) is subject to a surcharge of 200 basis points per annum above the basic rate of charge. Such holdings outstanding for more than three years after August 1, 2009, are subject to an additional surcharge of 100 basis points.

A service charge of 50 basis points is levied by the IMF on all purchases except reserve tranche purchases. A commitment fee is charged on the amount available for financing under an arrangement for each 12-month period. The fee amounts to 15 basis points for access up to 200 percent of quota, 30 basis points for access between 200 percent and 1,000 percent of quota, and 60 basis points for access in excess of 1,000 percent of quota. Commitment fees are refundable on amounts purchased during a 12-month period on a pro rate basis, and therefore income from the fees is only recognized to the extent they are not refundable.

3.15 Remuneration

The IMF pays interest, referred to as remuneration, on a member’s reserve tranche position. A portion of the reserve tranche is unremunerated: that portion is equal to 25 percent of the member’s quota on April 1, 1978 (that part of the quota that was paid in gold prior to the Second Amendment of the Articles). For a member that joined the IMF after that date, its unremunerated reserve tranche is a percentage of its initial quota equivalent to the average percentage of unremunerated reserve tranche positions of all other IMF members in relation to their quotas when the new member joined the IMF.

The rate of remuneration is equal to the SDR interest rate. The rate of remuneration is the same for all members and cannot be less than 80 percent of the SDR interest rate (after taking into account burden sharing adjustments).

3.16 Special Disbursement Account

Loans under the SAF are at concessional interest rates of 0.5 percent per annum. The last SAF loan disbursement was made in 1995 and currently one member (Somalia) has overdue SAF repayment obligations. Repayments of SAF loans to the SDA are transferred to the PRG Trust when received. Allowances for loan losses would be established if and when there is objective evidence that an impairment loss on loans has been incurred.

3.17 Provisions

Provisions are recognized when the IMF has a current legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are measured at the present value of the amounts that are expected to be paid to settle the obligations.

4. Risk management

The IMF is exposed to various types of operational and financial risks, including credit, market, liquidity, and income risks.

4.1. Risk management framework

The Executive Board of the IMF has overall responsibility for the establishment and oversight of the IMF’s risk management framework. The risk management framework encompasses primarily strategic, financial, and operational risks. As part of this framework, the Advisory Committee on Risk Management (ACRM) has been established to analyze, synthesize, and report on risks. Annual assessments of risks are conducted to (i) appraise risks and efforts to mitigate these risks; (ii) report on the assessment of residual risks, after taking account of mitigation measures in place; and (iii) bring to the attention of the IMF Executive Board areas of residual risk. Financial risks are reviewed as part of the annual comprehensive risk assessment exercise and on an ongoing basis in the context of specific policies.

4.2. Credit risk

4.2.1. Credit outstanding

Credit risk on credit outstanding refers to potential losses owing to the failure of member countries to make repurchases. Credit risk is inherent in the IMF’s unique role in the international monetary system since the IMF has limited ability to diversify its loan portfolio and generally provides financing when other sources are not available to a member. In addition, the IMF’s credit concentration is generally high due to the nature of its lending.

The use of credit in the GRA by the largest users was as follows at April 30, 2014, and 2013.

20142013
(In millions of SDRs and as a percentage of total GRA credit outstanding)
Largest user of credit22,94228.2%21,73924.1%
Three largest users of credit64,54779.5%58,24064.6%
Five largest users of credit70,60186.9%72,61580.5%

The five largest users of GRA credit at April 30, 2014, in descending order, were Portugal, Greece, Ireland, Romania, and Pakistan (Greece, Portugal, Ireland, Romania, and Ukraine at April 30,2013).

The concentration of GRA outstanding credit by region was as follows at April 30, 2014, and 2013:

20142013
(In millions of SDRs and as a percentage of total GRA credit outstanding)
Africa6290.8%8560.9%
Asia and Pacific1,2301.5%1,6401.8%
Europe73,12290.0%80,37389.2%
Middle East and Central Asia5,0786.3%5,9316.6%
Western Hemisphere1,1791.4%1,3821.5%
Total81,238100%90,182100%

Measures to help mitigate the IMF’s credit risk include policies on access limits, program design, monitoring, and economic policies that members agree to follow as a condition for IMF financing; early repurchase policies; and preventative, precautionary, remedial measures and precautionary balances to cope with the financial consequences of protracted arrears.

The IMF has established limits on overall access to resources in the GRA. The annual limit is currently set at 200 percent of a member’s quota, with a cumulative limit of 600 percent of a member’s quota (net of scheduled repurchases), except for the FCL arrangements, which are not subject to these access limits. One arrangement approved during the financial year ended April 30, 2014 (two arrangements during the financial year ended April 30, 2013) had access in excess of these limits. Access in excess of these limits is granted in exceptional circumstances. There is no prespecified maximum on exceptional access to IMF resources (except for PLL arrangements, which have a cumulative cap of 1,000 percent of quota, net of scheduled repurchases), which will be assessed on a case-by-case basis. The IMF assesses factors such as the size of balance of payments pressures, the member’s debt sustainability and its ability to regain access to financing from other sources, and the strength of policies to be adopted. Access under a six-month PLL arrangement is subject to a limit of 250 percent of quota, net of scheduled repurchases, per arrangement, and in exceptional circumstances where a member is experiencing or has the potential to experience larger short-term balance of payments needs due to the impact of exogenous shocks, including heightened regional or global stress conditions, access is subject to a higher limit of 500 percent of quota. Financing provided to a member under six-month PLL arrangements cannot exceed a cumulative limit of 500 percent of quota, net of scheduled repurchases.

The IMF generally provides a member access to its resources in support of an economic program adopted by the member to help it overcome its balance of payments difficulties. IMF financial assistance is normally disbursed in tranches although the entire amount can be made available up front. Apart from IMF arrangements, members can also have access to IMF financing through reserve tranche purchases, first credit tranche purchases equal to 25 percent of the member’s quota, and outright purchases under policies on emergency assistance. Safeguards assessments of member central banks are undertaken to provide the IMF with reasonable assurance that each central bank’s legal structure, controls, financial reporting, and auditing systems are adequate to ensure the integrity of their operations and help ensure that IMF resources are used for intended purposes. Misreporting by member countries may entail early repurchases for non-complying disbursements.

The IMF maintains precautionary balances consisting of its reserves (other than that portion attributable to the profits from the limited gold sales in 2009–2010) and the SCA-1 that would be used to cover losses from possible overdue repurchase obligations. At April 30, 2014, precautionary balances amounted to SDR 12.7 billion, compared to SDR 11.5 billion at April 30, 2013. In addition, the burden sharing mechanism generates resources to offset the loss of income due to unpaid charges and thereby helps protect the IMF’s overall income and financial position.

The maximum credit risk exposure is the carrying value of the Fund’s credit outstanding and undrawn commitments (see Note 5), which amounted to SDR 194.6 billion and SDR 198.1 billion at April 30, 2014, and 2013, respectively.

4.2.2. Investments

Credit risk on investments represents the potential loss that the IMF may incur if issuers and counterparties default on their contractual obligations. Credit risk in the Fixed-Income Subaccount is managed through the limited range of investments, which at present is limited to (i) domestic government bonds of countries in the Euro area, Japan, the United Kingdom, and the United States, that is, members whose currencies are included in the SDR basket; (ii) obligations of international financial organizations; (iii) claims on the BIS; and (iv) short-term deposits held at the BIS. Credit risk is further minimized by restricting investments to financial instruments rated A, or higher, by Standard & Poor’s.

In the Endowment Subaccount, the carrying amount of the fixed-income securities, including inflation-linked bonds, represents the maximum exposure to credit risk. The fixed-income securities in this subaccount are limited to instruments with a credit rating of BBB+ for sovereign bonds and BBB for corporate bonds.

The Endowment Subaccount authorizes derivatives for currency hedging and to minimize transaction costs in the context of rebalancing or of benchmark replication. The IMF’s maximum exposure to credit risk for forward contracts is the amount of any unrealized gains on such contracts (SDR 1 million at April 30, 2014; there were no unrealized gains at April 30, 2013); counterparty risk is further mitigated by strict exposure and concentration limits. The credit risk of exchange-traded derivative contracts is limited because of daily cash settlement of the net change in the value of open contracts. There were no futures contracts at April 30, 2014.

The credit risk exposure in the investments portfolio at April 30, 2014, and 2013, was as follows:

20142013
Fixed-Income SubaccountEndowment SubaccountFixed-Income Subaccount
Developed market sovereign bonds
AAA17.2%1.1%19.3%
AA + to AA -25.9%0.5%29.3%
Developed market corporate bonds
AA + to AA -0.2%
A + to A -0.5%
BBB + to BBB -0.5%
Emerging markets bonds
AA + to AA -0.2%
A + to A -0.4%
BBB + to BBB -0.2%
Inflation-linked bonds
AAA0.9%
AA + to AA -0.8%
International financial institutions obligations: BIS (not rated)47.3%94.7%42.8%
Others
AAA7.3%8.0%
AA+ to AA-2.3%0.6%
Total100.0%100.0%100.0%

As of April 30, 2013, the Endowment and Temporary Windfall Profits subaccounts held fixed-term deposits with the BIS (not rated).

4.3. Liquidity risk

Liquidity risk is the risk to the IMF of non-availability of resources to meet the financing needs of members and its own obligations. The IMF must have usable resources available to meet members’ demand for IMF financing. While the IMF’s resources are largely of a revolving nature, uncertainties in the timing and amount of credit extended to members during financial crises expose the IMF to liquidity risk. Moreover, the IMF must also stand ready to (i) meet, upon a member’s representation of need, potential demands for a drawing upon the member’s reserve tranche position, which is part of the member’s reserves; and (ii) authorize drawings to meet demands for encashment of creditor claims under bilateral borrowing agreements or the NAB.

The IMF manages its liquidity risk by closely scrutinizing developments in its liquidity position. Long-term liquidity needs are addressed by reviewing the adequacy of quota-based resources. General reviews of members’ quotas are conducted at intervals of no more than five years in order to evaluate the adequacy of quota-based resources to meet members’ demand for IMF financing. The last general quota review was completed in December 2010 with a proposal for doubling quotas. Pending the effectiveness of the proposed doubling of quotas, the IMF’s liquidity position is augmented by the enlarged and amended NAB and bilateral borrowing agreements.

During the financial years ended April 30, 2014, and 2013, short-term liquidity needs for lending activities were reviewed and approved by the IMF Executive Board on a quarterly basis through a financial transactions plan for quota resources and borrowed resources under bilateral borrowing agreements, and the resource mobilization plan for use of resources under the NAB. The IMF also monitors its short-term liquidity position using objective criteria such as the forward-commitment capacity (Schedule 2 provides the GRA’s available usable resources and liquidity position).

The IMF’s Executive Board decides at the end of each financial year whether to transfer the income earned in the Fixed-Income Subaccount in the IA to the GRA for meeting the expenses of conducting the business of the IMF. The Fixed-Income Subaccount is managed to ensure that a portion of the portfolio is invested in readily marketable short- and medium-term financial instruments to meet anticipated liquidity needs arising from such transfers. The Endowment Subaccount has no immediate liquidity needs for payout during the period when the resources will be invested according to the approved strategic asset allocation strategy.

4.4. Market risk

Market risk is the risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in market prices. Market risk includes interest rate risk, exchange rate risk, and other price risks.

4.4.1. Financial assets and liabilities other than investments
4.4.1.1. Interest rate risk

Interest rate risk on credit outstanding is the risk that future cash flows will fluctuate because of changes in market interest rates. Interest rate risk is managed through the use of a floating market interest rate (the SDR interest rate) to determine the rate of charge. Interest rate fluctuations do not adversely affect lending income because the IMF links the rate of charge directly, by means of a fixed margin, to the cost of financing (which is equal to the SDR interest rate).

Interest rate risk related to bilateral borrowings, issued notes, and borrowings under the enlarged and amended NAB is limited since drawings are currently levied at the SDR interest rate. The proceeds from borrowings are used to extend credit to member countries, at the rate of charge, which is based on the SDR interest rate plus a margin.

4.4.1.2. Exchange rate risk

Exchange rate risk is the exposure to the effects of fluctuations in foreign currency exchange rates on an entity’s financial position and cash flows. The IMF has no exchange rate risk exposure on its holdings of members’ currencies in the GRA and credit outstanding. Under the Articles of Agreement, members are required to maintain the value of such holdings in terms of the SDR. Any depreciation/appreciation in a member’s currency vis-a-vis the SDR gives rise to a currency valuation adjustment receivable or payable that must be settled by the member promptly after the end of the financial year or at other times as requested by the IMF or the member. The IMF has other assets and liabilities, such as trade receivables and payables, denominated in currencies other than SDRs and makes administrative payments largely in U.S. dollars, but the exchange rate risk exposure from these other assets and liabilities is limited.

The IMF has no exchange rate exposure from its current borrowing arrangements since all drawings are denominated in SDRs.

4.4.2. Investments

While the IA is managed to generate income that may be used to meet the expenses of conducting the business of the Fund, the investment objectives of the Fixed-Income and Endowment subaccounts differ. The investment strategies, including asset allocation and risk tolerance, are tailored for the two subaccounts, thereby exposing them to different types of market risk.

4.4.2.1. Fixed-Income Subaccount

The Fixed-Income Subaccount invests primarily in short-term investments and fixed-income securities, and the market risk is limited.

Interest rate risk

The interest rate risk in the Fixed-Income Subaccount is mitigated by limiting the duration of the portfolio to a weighted average of one to three years. The effect on the Fixed-Income Subaccount of a 10 basis point fluctuation in market interest rates at April 30, 2014, is approximately SDR 20 million or 0.19 percent of the portfolio (SDR 16 million or 0.19 percent at April 30, 2013).

Exchange rate risk

The Fixed-Income Subaccount manages exchange rate risk by investing in financial instruments denominated in SDRs or in constituent currencies of the SDR with the relative amount of each currency matching its weight in the SDR basket. In addition, the portfolio is regularly rebalanced to match the currency weights in the SDR basket. Since the proportionate share of a currency in the SDR valuation basket is determined by reference to the market value against the U.S. dollar, the exchange rate risk can be measured indirectly using the exchange rate movements between that basket currency and the U.S. dollar. The net effect on the Fixed-Income Subaccount of a 10 percent increase or decrease in the market exchange rates of each of the currencies included in the SDR valuation basket against the U.S. dollar, at April 30, 2014, and 2013, is minimal (net gain or loss of less than SDR 1 million or 0.01 percent of the portfolio).

4.4.2.2. Endowment Subaccount

Market risk

Under the Strategic Asset Allocation approved by the IMF Executive Board, investments are divided into seven categories, which are subject to varying, but not perfectly correlated, market risks. The market risk is mitigated through asset class diversification and within asset classes through broad security selection. The exposure to market risk is measured using Value at Risk (VaR), which takes into account not only known market risks in each of the asset categories but also the effect of asset class diversification.

VaR is the minimum potential loss in value of the Endowment assets due to adverse market movements over a defined time horizon with a specified confidence level. The portfolio VaR estimates are based on a three-year look-back period using actual portfolio holdings at the date of the financial statements. VaR models are based predominantly on historical simulation and provide plausible future scenarios based on these simulations. However, the modeling of the market risk characteristics of the subaccount’s investments involves a number of assumptions and approximations. There is no standard methodology for estimating VaR, and different assumptions and/or approximations could produce significantly different VaR estimates. The VaR numbers reported below reflect a one-year time horizon and a 95 percent confidence interval, which means there is a 1 in 20 chance that annual losses on investment assets would be expected to equal or exceed the reported VaR. Losses in a single year could exceed the reported VaR by a significant amount.

The VaR for the Endowment investments (other than fixed-term deposits) at April 30, 2014, was as follows:

(In millions of SDRs)
Developed market equities23
Emerging market equities4
Developed market sovereign bonds6
Developed market corporate bonds5
Emerging market bonds4
Inflation-linked bonds9
Real estate investment trusts6
Diversification effects(18)
Total39

Exchange rate risk

The investment objective of the Endowment Subaccount is to achieve a long-term real return of 3 percent to provide a meaningful contribution to the IMF’s administrative expenditures. Since these expenditures are largely in U.S. dollars, the performance of the Endowment Subaccount is measured in U.S. dollars as the base currency but reported in SDRs. The rules and regulations of the IA provide for hedging against the exchange rate risk for fixed-income instruments denominated in developed market currencies vis-a-vis the U.S. dollar. The consolidated statements of financial position and comprehensive income reflect valuation changes in the U.S. dollar visà-vis the SDR.

4.5. Income risk

The IMF has been relying principally on income from charges levied on outstanding credit to meet its operating costs. Due to its role in the world economy, the level of IMF lending fluctuates significantly, and in light of the global crisis and the resulting increase in lending activities, the IMF’s income risk has subsided.

In 2008, the Board of Governors endorsed the new and sustainable income and expenditure framework and adopted the related resolution on the amendment of the Articles of Agreement. Key elements of the new income model include establishing an endowment using the profits from the limited sale of 12.97 million ounces (403.3 metric tons) of post-Second Amendment gold holdings, expanding the investment authority to enhance the expected return on the IMF’s investments, and reinstating the practice of reimbursing the GRA for the cost of administering the PRG Trust. The gold sales were completed in financial year 2011, and the amendment to expand the investment authority of the IMF has entered into effect. In January 2013, the IMF Executive Board approved the rules and regulations to implement the broadened investment authority, including the establishment of the endowment (see Note 7).

4.6. Operational risk

Operational risk includes risk of loss attributable to errors or omissions because of failures in executing or processing transactions, inadequate controls, human factors, and/or failures in underlying support systems.

The IMF mitigates operational risk by (i) identifying key operational risks; (ii) maintaining a system of internal controls; (iii) documenting policies and procedures on administrative and accounting and reporting processes; and (iv) conducting internal audits to review the effectiveness of the control processes and risk management. The External Audit Committee (EAC) exercises oversight over financial reporting controls and the external audit of the IMF’s accounts and reviews the adequate discharge by the Office of Internal Audit and Inspection of its responsibilities.

5. Currencies and credit outstanding

Net changes in the IMF’s holdings of members’ currencies for the financial years ended April 30, 2014, 2013, and 2012 were as follows:

April 30, 2012Net changeApril 30, 2013Net changeApril 30, 2014
(In millions of SDRs)
Members’ quotas237,9931125238,1183238,121
Members’ outstanding use of IMF credit in the GRA94,182(4,000)90,182(8,944)81,238
Members’ reserve tranche positions in the GRA(65,775)7,682(58,093)10,719(47,374)
Administrative currency balances5(2)33
Total currencies266,4053,305270,2101,778271,988

At April 30, 2012, members’ quotas exclude SDR 123.0 million receivable from South Sudan for its quota, which was paid in May 2012.

At April 30, 2012, members’ quotas exclude SDR 123.0 million receivable from South Sudan for its quota, which was paid in May 2012.

Under the 2008 Quota and Voice reforms, which became effective in March 2011, 54 member countries were eligible for quota increases. As at April 30, 2014, 46 members had consented and paid in full their quota increases amounting to SDR 20.6 billion.

A reform package, approved by the Board of Governors in December 2010, will result in a doubling of the IMF’s quota resources to SDR 477 billion and a shift in members’ quota shares. For any quota increase under the Fourteenth Review of Quotas to become effective, three general conditions have to be met: (i) the proposed quota increase must be consented to by members having 70 percent of the total quotas as of November 5, 2010; (ii) the Amendment of the Articles to enhance voice and participation in the IMF must have entered into force; and (iii) the amendment on reform of the IMF Executive Board must have entered into force (which will happen once it has been accepted by members representing 85 percent of the total voting power). The first two conditions have already been met. As at April 30, 2014, members representing 77.0 percent of total quotas have consented to the quota increase, and 159 members representing 78.9 percent of voting power have accepted the IMF Executive Board Reform Amendment. The quota increases are not effective because of the lack of the requisite acceptance threshold for the entry into force of the IMF Executive Board Reform Amendment. In its April 12, 2014, communique, the International Monetary and Financial Committee urged members who have yet to complete the necessary steps to ratify the IMF Executive Board Reform Amendment to do so without delay. Furthermore, the Committee has indicated that it will call on the IMF to develop options for next steps if the Reform Amendment is not ratified by the end of 2014.

Currency holdings amounting to SDR 271,988 million at April 30, 2014 (SDR 270,210 million at April 30, 2013), include receivables and payables arising from valuation adjustments at April 30, 2014, when all holdings of currencies of members were last revalued, and amounted to SDR 10,347 million and SDR 2,573 million, respectively (SDR 5,481 million and SDR 4,480 million, respectively, at April 30, 2013). Settlements of these receivables or payables are required to be made by or to members promptly after the end of each financial year.

During the financial year ended April 30, 2014, the IMF approved three SBAs for Romania (SDR 1,751 million), Tunisia (SDR 1,146 million), and Ukraine (SDR 10,976 million); five extended arrangements for Albania (SDR 296 million), Armenia (SDR 82 million), Cyprus (SDR 891 million), Jamaica (SDR 615 million), and Pakistan (SDR 4,393 million); and a successor FCL for Colombia (SDR 3,870 million). For the financial year ended April 30, 2013, SBAs for Bosnia and Herzegovina (SDR 338 million) and Jordan (SDR 1,364 million), a PLL for Morocco (SDR 4,117 million), and FCL arrangements for Mexico (SDR 47,292 million) and Poland (SDR 22,000 million) were approved. The SBA for Bosnia and Herzegovina was augmented by SDR 136 million during the financial year ended April 30, 2014 (the extended arrangement for Seychelles was augmented by SDR 6 million during the financial year ended April 30, 2013).

Drawings under SBAs and extended arrangements during the financial year ended April 30, 2014, amounted to SDR 11,678 million (SDR 10,587 million for the financial year ended April 30, 2013). There were no drawings under FCL and PLL arrangements during the financial years ended April 30, 2014, and 2013. Credit outstanding in the GRA and SAF loans in the SDA are carried at amortized cost.

At April 30, 2014, the undrawn balances under 13 Stand-By and Extended Arrangements that were in effect in the GRA amounted to SDR 36,054 million (SDR 30,675 million under 12 Stand-By and Extended Arrangements at April 30, 2013). In addition, at April 30, 2014, and 2013, three arrangements under the FCL in the amount of SDR 73,162 million and one arrangement under the PLL with an undrawn balance of SDR 4,117 million were active; see Schedule 3.

Changes in the outstanding use of IMF credit under the various facilities of the GRA were as follows:

April 30, 2012PurchasesRepurchasesApril 30, 2013PurchasesRepurchasesApril 30, 2014
(In millions of SDRs)
Credit tranches62,527996(14,576)48,9471,087(20,616)29,418
EFF131,4569,591(10)41,03710,591(3)51,625
Enlarged access153(1)152(3)149
CFF Facility1292929
SFF1171717
Total credit outstanding94,18210,587(14,587)90,18211,678(20,622)81,238

Extended Fund Facility (EFF); Compensatory and Contingency Financing Facility (CFF); Supplementary Financing Facility (SFF).

Extended Fund Facility (EFF); Compensatory and Contingency Financing Facility (CFF); Supplementary Financing Facility (SFF).

Scheduled repurchases in the GRA, including overdue repurchases, are summarized below:

Financial year ending April 30General Resources Account
(In millions of SDRs)
201516,936
201611,024
20177,563
20188,141
20198,989
2020 and beyond28,314
Overdue271
Total81,238

In addition, SDR 9 million in repayments of SAF loans in the SDA, included in other assets, are also overdue.

5.1. Overdue obligations

At April 30, 2014, and 2013, two members were six months or more overdue in settling their financial obligations to the General Department as follows:

GRA Repurchases and SAF loansGRA Charges and SAF interest
2014201320142013
(In millions of SDRs)
Total overdue280285844841
Overdue for six months or more280285842839
Overdue for three years or more280285834830

The type and duration of the overdue amounts in the General Department were as follows at April 30, 2014:

GRA Repurchases and SAF loansGRA Charges and SAF interestTotal obligationLongest overdue obligation
(In millions of SDRs)
Somalia105121226July 1987
Sudan175723898July 1985
Total2808441,124

6. Interest and charges

At April 30, 2014, the credit outstanding on which the IMF levies charges amounted to SDR 81,238 million (SDR 90,182 million at April 30, 2013). For the financial years ended April 30, 2014, and 2013, the basic rate of charge was set at the SDR interest rate plus a fixed margin of 100 basis points. The average rate of charge (adjusted for burden sharing) before applicable surcharges for the financial year ended April 30, 2014 was 1.10 percent per annum (1.09 percent per annum for the financial year ended April 30, 2013).

Interest and charges receivable at April 30, 2014, and 2013, were as follows:

20142013
(In millions of SDRs)
Interest and charges1,2901,247
Amount paid through burden sharing(709)(706)
581541
Accrued interest on SDR holdings43
Total interest and charges receivable585544

Interest and charges consisted of the following for the years ended April 30, 2014, and 2013:

20142013
(In millions of SDRs)
Interest and charges2,3272,233
Burden sharing adjustments22
Total interest and charges2,3292,235

Commitment fees on canceled, reduced, or expired arrangements and service charges amounted to SDR 88 million and SDR 526 million for the years ended April 30, 2014, and 2013, respectively.

7. Investments

Investments are held in the IA (SDR 15,186 million and SDR 14,988 million at April 30, 2014, and 2013, respectively) and the MDRI-I Trust (SDR 13 million at April 30, 2014, and 2013). At April 30, 2014, investments held in the Fixed-Income and Endowment subaccounts of the IA amounted to SDR 10,731 million and SDR 4,455 million, respectively (SDR 8,796 million and SDR 4,432 million, respectively, at April 30, 2013). The Temporary Windfall Profits Subaccount was closed in October 2013 following the second distribution of the amounts in the General Reserve attributed to windfall gold sales profits (see Note 15).

At April 30, 2014, and 2013, investments consisted of the following:

2014
Fixed-Income SubaccountEndowment SubaccountMDRI-I TrustTotal
At fair value through profit or loss(In millions of SDRs)
International financial institutions obligations:
Medium-term instruments (BIS)4,8784,878
Others997997
Developed market sovereign bonds4,813764,889
Developed market corporate bonds5353
Emerging market bonds3636
Inflation-linked bonds7171
Developed market equities8989
Emerging market equities1818
Real estate investment trusts1818
10,68836111,049
At amortized cost
Short-term investments4343
Fixed-term deposits4,094134,107
Total10,7314,455M15,199
2013
Fixed-Income SubaccountEndowment SubaccountTemporary Windfall Profits SubaccountMDR-I TrustTotal
(In millions of SDRs)
At fair value through profit or loss
International financial institutions obligations:
Medium-term instruments (BIS)3,5763,576
Others723723
Developed market sovereign bonds4,4614,461
8,7608,760
At amortized cost
Short-term investments361,7601,796
Fixed-term deposits4,432-134,445
Total8,7964,4321,7601315,001

At April 30, 2014, the notional value of foreign currency forward contracts held in the Endowment Subaccount amounted to SDR 327 million (none at April 30, 2013).

The maturities of the fixed-income securities as of April 30, 2014, only in the Investment Account were as follows:

Financial year ending April 30
(In millions of SDRs)
20154,986
20165,563
20174,178
2018157
201938
2020 and beyond152
Total15,074

Investment income comprised the following for the financial years ended April 30, 2014, and 2013:

20142013
(In millions of SDRs)
Interest and dividends8290
Net realized gains2115
Net unrealized losses(63)(38)
Total4067

8. Gold holdings

The IMF acquired its gold holdings primarily from quota subscriptions and financial transactions prior to the entry into force of the Second Amendment of the Articles of Agreement (April 1, 1978). The IMF also acquired gold through the settlement of obligations by members in 1992 and 1999–2000. The Articles of Agreement limit the use of gold in the IMF’s operations and transactions. Any transactions in gold provided for in the Articles require a decision adopted by an 85 percent majority of the total voting power. Under the Articles, the IMF may sell gold outright on the basis of prevailing market prices but cannot engage in any other gold transactions, such as loans, leases, swaps, or the use of gold as collateral. In addition, the IMF does not have the authority to buy gold, but it may accept payments from a member in gold instead of SDRs or currencies in any operation or transactions at the prevailing market prices. The IMF sold 403.3 metric tons of gold during financial years 2010–2011 as a key element of its new income model and realized total profits of SDR 6.85 billion, which were transferred to the Investment Account (see Note 7).

At April 30, 2014, and 2013, the IMF held 2,814 metric tons, equal to 90.474 million fine troy ounces, of gold at designated depositories. Gold holdings were valued at a historical cost of SDR 3,167 million at April 30, 2014, and 2013, based on a cost per fine troy ounce of SDR 35.

At April 30, 2014, the market value of the IMF’s holdings of gold was SDR 75.2 billion (SDR 88.1 billion at April 30, 2013). The market value of the gold holdings is determined based on quoted prices in active markets (Level 1 in the fair value hierarchy).

9. Fixed assets

Fixed assets, net of depreciation and amortization, amounted to SDR 350 million and SDR 303 million at April 30, 2014, and 2013, respectively, and consisted of land, buildings, and other fixed assets, including equipment, furniture, and software.

LandBuildingsOtherTotal
(In millions of SDRs)
Financial year ended April 30, 2014
Cost
Beginning of the year95333213641
Additions97079
Transfers6(6)
Disposals--(14)(14)
End of the year95348263706
Accumulated depreciation and amortization
Beginning of the year194144338
Additions122032
Disposals(14)(14)
End of the year206150356
Net book value at April 30, 201495142113350
LandBuildingsOtherTotal
(In millions of SDRs)
Financial year ended April 30, 2013
Cost
Beginning of the year95318175588
Additions153853
Disposals
End of the year95333213641
Accumulated depreciation and amortization
Beginning of the year183124307
Additions112031
Disposals
End of the year194144338
Net book value at April 30, 20139513969303

Other fixed assets include construction in progress, amounting to SDR 57 million as of April 20, 2014 (SDR 15 million as of April 30, 2013), related to the renovation of the IMF headquarters building. At April 30, 2014, the IMF had commitments of SDR 138 million in respect of the renovation of the IMF headquarters building (SDR 174 million at April 30, 2013).

10. Burden sharing and the Special Contingent Account

Under the burden sharing mechanism, the basic rate of charge is increased and the rate of remuneration is reduced to offset the effect on the IMF’s income of the nonpayment of charges that are overdue for more than six months and to finance additions to the SCA-1. Cumulative charges, net of settlements, that have resulted in adjustments to charges, and remuneration since May 1,1986 (the date the burden sharing mechanism was adopted), amounted to SDR 709 million at April 30, 2014 (SDR 706 million at April 30, 2013). The cumulative refunds for the same period, resulting from the settlements of overdue charges for which burden sharing adjustments have been made, amounted to SDR 1,320 million at April 30, 2014, and 2013.

Balances in the SCA-1 are to be distributed to the members that contributed toward the SCA-1 when there are no longer any outstanding overdue repurchases and charges, or at such earlier time as the IMF may decide. Amounts collected from members for the SCA-1 are akin to refundable cash deposits and are recorded as a liability to those who paid them. Losses arising from overdue obligations, if realized, would be shared by contributing members in proportion to their cumulative contributions to the SCA-1. No additions have been made to the SCA-1 during the financial years ended April 30, 2014, and 2013.

11. Borrowings

The IMF may potentially borrow up to SDR 366.5 billion under the enlarged and amended NAB, SDR 277 billion under the 2012 bilateral borrowing agreements, and SDR 18.5 billion under the GAB (see Schedule 4). The NAB is the facility of first and principal recourse, and outstanding drawings and commitments under the NAB and GAB cannot exceed SDR 366.5 billion.

The NAB is a standing set of credit lines under which participants are committed to provide supplementary resources to the IMF when these are needed to forestall or cope with a threat to the international monetary system. The NAB is renewed periodically; in November 2012, the NAB was renewed through November 2017. As of April 30, 2014, and 2013, there were 38 participants in the NAB and total NAB commitments were SDR 366.5 billion. The NAB allows for drawings in certain circumstances to meet requests for encashment by members or their institutions in case of balance of payments need. The activation of the NAB requires the consent of participants representing 85 percent of total NAB credit arrangements of participants eligible to vote and the approval of the IMF’s Executive Board. The most recent NAB activation became effective on April 1, 2014, for a six-month period through September 30, 2014.

Since 2009, the IMF has signed a number of bilateral loan and note purchase agreements with member countries or their central banks. Drawings under the first round of bilateral borrowings—the 2009 borrowing agreements—were used to finance commitments under IMF arrangements that were approved before the activation of the NAB in April 2011. Effective April 1, 2013, the Executive Board decided not to draw on these borrowing agreements.

Following the joint announcement in 2012 by the International Monetary and Finance Committee (IMFC) and the Group of Twenty (G-20) Finance Ministers and Governors to further bolster IMF resources through bilateral borrowing, 38 member countries have committed to increase IMF resources by US$461 billion (SDR 297 billion). As of April 30, 2014, borrowing agreements with commitments of US$428 billion (SDR 277 billion) were effective. The resources available under the 2012 borrowing agreements are intended to serve as a second line of defense to IMF quotas and NAB resources and as a bridge to the Fifteenth General Review of Quotas and as such can only be activated under specific conditions.

The 2012 bilateral borrowing agreements provide for an initial term of two years, with the option to extend the term for up to two additional years. Drawings may be made to fund commitments made during the term of the agreements for as long as the commitments are active. Drawings are repayable in three months but maturities can be unilaterally extended by the IMF for up to ten years. Upon determination by the IMF Executive Board that exceptional circumstances exist as a result of a shortage of resources in relation to obligations falling due, the IMF, with consent of lenders, may further extend the maturities of outstanding drawings under many of the borrowing agreements for up to an additional five years. The outstanding claims on borrowing agreements are transferable within the official sector, including all IMF members, their central banks or other fiscal agencies, and prescribed SDR holders. The claims under the borrowing agreements are encashable on demand by lenders, subject to certain conditions.

Under the General Arrangement to Borrow (GAB) and an associated agreement with Saudi Arabia, the IMF may potentially borrow up to SDR 17 billion and SDR 1.5 billion, respectively, when supplementary resources are needed to forestall or to cope with an impairment of the international monetary system. The GAB became effective on October 24,1962, and has been renewed periodically, most recently through December 26, 2018. The borrowing agreement with Saudi Arabia entered into force on December 26, 1983, and was last renewed through December 26, 2018.

During the financial year ended April 30, 2014, drawings under the NAB and repayments under the 2009 bilateral borrowing agreements and the NAB amounted to SDR 7,130 million and SDR 5,345 million, respectively (SDR 6,904 million and SDR 1,447 million, respectively, during the financial year ended April 30, 2013). Total outstanding borrowings at April 30, 2014, and 2013, were SDR 47,288 million and SDR 45,503 million, respectively (see Schedule 4).

The average interest rate on outstanding borrowings was 0.09 percent per annum for the financial years ended April 30, 2014, and 2013, and the interest expense on outstanding borrowings during the same period was SDR 44 million and SDR 37 million, respectively.

Scheduled repayments of outstanding borrowings are summarized below:

Financial year ending April 30
(In millions of SDRs)
20158,304
20165,664
20174,510
20185,197
20195,720
2020 and beyond17,893
Total47,288

12. Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset, or transfer the liability, takes place either in the principal market for the asset or liability or, in the absence of a principal market, in the most advantageous market for the asset or liability.

A three-level fair value hierarchy under which financial instruments are categorized based on the priority of the inputs to the valuation technique is used to determine fair value. The fair value hierarchy has the following levels: quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date (Level 1); inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices) (Level 2); and inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3). When the inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurement of the instrument in its entirety. Thus, a Level 3 fair value measurement may include inputs that are both observable and unobservable.

Specific valuation techniques used to value financial instruments include the following:

(i) the fair value of publicly traded equities, bonds and treasury securities, REITs, and derivatives is based on quoted market prices, or binding dealer price quotations, in an active market for identical assets without any adjustments. The instruments are valued at mid prices (or bid price for long positions and ask price for short positions) and included within Level 1 of the hierarchy;

(ii) the fair value of fixed-income securities not actively traded is determined on the basis of a compilation of significant observable market information such as recently executed trades in securities of the issuer or comparable issuers and yield curves. The assessment also takes into account the inherent risk and terms and conditions of each security. The fair value of emerging market equities securities is the net asset value of the underlying funds. To the extent that the significant inputs are observable, these investments are included within Level 2 of the hierarchy; and

(iii) the fair value of over-the-counter derivatives not actively traded in an active market is determined using a forward pricing model that incorporates foreign exchange spot and forward rates. For these derivatives, significant inputs into models are market observable and are included within Level 2.

The following tables present the fair value hierarchy used to determine the fair value of investments at April 30, 2014, and 2013:

2014
Level 1:Level 2:
Quoted prices in active marketsBased on observable market dataTotal
(In millions of SDRs)
Recurring fair value measurements
International financial institutions obligations:
Medium-term instruments (BIS)4,8784,878
Others997997
Developed market sovereign bonds4,8894,889
Developed market corporate bonds5353
Emerging market bonds3636
Inflation-linked bonds7171
Developed market equities8989
Emerging market equities-1818
REITs1818
Total10710,94211,049
2013
Level 1:Level 2:
Quoted prices in active marketsBased on observable market dataTotal
(In millions of SDRs)
Recurring fair value measurements
International financial institutions obligations:
Medium-term instruments (BIS)3,5763,576
Others723723
Developed market sovereign bonds4,4614,461
Total8,7608,760

There have been no transfers between Level 1 and Level 2 during the period.

Investments in fixed-term deposits and short-term investments in the IA are carried at amortized cost, and are generally of a short-term nature and approximate fair value. The fair value of IMF credit outstanding as defined under IFRS 13 cannot be determined due to its unique characteristics, including the debtor’s membership relationship with the IMF, and the IMF’s unique role in providing balance of payments support to member countries. The carrying value of other financial assets and liabilities that are accounted for at amortized cost represents a reasonable estimate for the fair value.

13. Remuneration

At April 30, 2014, the portion of the reserve tranche on which the IMF pays remuneration amounted to SDR 40,242 million (SDR 51,011 million at April 30, 2013). The average rate of remuneration (adjusted for burden sharing) for the financial years ended April 30, 2014, and 2013, was 0.09 percent per annum.

Remuneration consisted of the following for the years ended April 30:

20142013
(In millions of SDRs)
Remuneration4248
Burden sharing adjustments(2)(2)
4046

14. Administrative expenses

Administrative expenses, the majority of which were incurred in U.S. dollars and net of reimbursements (see Note 19), were as follows for the years ended April 30, 2014, and 2013:

20142013
(In millions of SDRs)
Personnel436417
Pension and other long-term employee benefits316278
Travel7881
Other, net315
Administrative expenses861781

15. Reserve Distributions

In the context of securing sufficient resources to subsidize concessional lending by the PRG Trust, the IMF Executive Board adopted two related decisions, in February and September 2012, to distribute to all members in proportion to their quotas amounts in the General Reserve equivalent to SDR 700 million and SDR 1.75 billion, respectively, attributable to windfall gold sales profits. The distributions became effective when satisfactory financing assurances existed regarding the availability of new subsidy contributions to the PRG Trust equivalent to at least 90 percent of the approved distribution amounts. The distributions of SDR 700 million and SDR 1.75 billion were made in October 2012 and October 2013, respectively.

16. Special Disbursement Account

16.1 Contributions to Administered Accounts

Assets in the SDA can be used for special purposes authorized in the Articles of Agreement, including providing financial assistance on special terms to low-income member countries.

Proceeds from the payments of SAF loans, Trust Fund loans, and excess resources from the Supplementary Financing Facility Subsidy Account are transferred from the SDA to the Reserve Account of the PRG Trust as contributions. During the financial year ended April 30, 2014, and 2013, there were no such transfers.

16.2 Trust Fund

The IMF is the Trustee of the Trust Fund, which was established in 1976 to provide balance of payments assistance on concessional terms to eligible members that qualified for such assistance. The Trust Fund is in liquidation following its termination in 1981. Since that date, the activities of the Trust Fund have been confined to the conclusion of its affairs. The Trust Fund has no assets other than loans and interest receivable from Somalia and Sudan amounting to SDR 90 million at April 30, 2014 and 2013. All interest income is deferred.

17. Employee benefits

The IMF has a defined benefit Staff Retirement Plan (SRP) that covers eligible staff and an adjunct plan, the Supplemental Retirement Benefits Plan (SRBP), for a subset of participants of the SRP. The SRBP provides for the payment of benefits that otherwise would have been payable had the qualified plan benefits and compensation limits not applied. Participants in the SRP and SRBP (the pension plans) are entitled to unreduced annual pensions beginning at the normal retirement age of 62 or earlier if certain conditions of age and service are met. The pension plans also provide an option for eligible staff to receive reduced pension benefits beginning at the age of 50. The level of pension benefits depends on the participants’ length of service and highest three-year average gross compensation.

The IMF provides other employment and post-retirement benefits, including medical insurance, life insurance, and other non-pension long-term benefits, such as separation and repatriation benefits, accrued annual leave up to 60 days, and associated tax allowances. The IMF established a separate account, the Retired Staff Benefits Investment Account (RSBIA), to hold and invest resources set aside to fund the cost of these post-retirement benefits of current and future retirees.

The assets in the SRP, SRBP, and RSBIA (in total, the Plans) are held separate from the assets of all other accounts of the IMF. In the event the IMF were to exercise its right to terminate the pension plans, the assets of these plans would be used to satisfy all liabilities to participants, retired participants, and their beneficiaries, and all other liabilities of the pension plans. Any remaining assets would be returned to the GRA. The GRA meets all costs of administering the Plans.

Responsibility for the governance of the Plans lies with the IMF Executive Board and the Pension Committee. The IMF Executive Board approves the funding framework and amendments to the Plans. The Pension Committee, consisting of members of the IMF Executive Board and senior staff, has overall responsibility for carrying out the provisions of the SRP and the SRBP. The committee also undertakes periodic valuations of the assets and liabilities related to the Plans, and advises the IMF Executive Board on the appropriate funding framework. It is supported by an Investment Committee to oversee the investments of the Plans.

Through its defined benefits pension and post-employment benefits plans, the IMF is exposed to investment, liquidity, and longevity risks associated with the Plans. These risks are balanced against the need to meet the financial obligations of each plan. The Plans have adopted general guidelines on permissible investments and invest according to a strategic asset allocation, which is expected to generate a rate of return at or in excess of the rate of growth in the Plans’ liabilities. The strategic asset allocation is reviewed periodically by the Investment Committee, most recently in 2011. The strategic asset allocation is designed to minimize the level of portfolio market risk (volatility) for the targeted rate of return, while better aligning portfolio volatility with the potential volatility of the Plans’ liabilities. Through a global, multiple-asset-class investment approach, the portfolio risk is reduced for any targeted rate of return, since asset class returns are not perfectly correlated as regional and global economic, financial, and political events unfold. The Plans do not utilize specific, targeted asset-liability matching instruments or strategies such as annuities, longevity swaps, cash flow matching, or duration matching.

The primary objective with respect to liquidity is to have sufficient liquid resources available to pay benefits when due. This risk is monitored to ensure that payments due to the participants and beneficiaries can be met from the holdings of cash and highly liquid investments of the Plans.

The amounts recognized in the statements of financial position as at April 30, 2014, and 2013, are determined as follows:

201420132012
Pension benefitsOther employee benefitsTotalTotalTotal
(In millions of SDRs)
Defined benefit obligation(5,813)(1,368)(7,181)(7,610)(6,557)
Plan assets5,8131,2337,0466,5725,439
Net asset/(liability)(135)(135)(1,038)(1,118)

The amounts recognized in the statements of comprehensive income for the financial years ended April 30, 2014, and 2013, are as follows:

20142013
Pension benefitsOther employee benefitsTotalTotal
(In millions of SDRs)
Service cost18284266222
Interest expense related to defined benefit obligation25560315303
Interest income related to plan assets(218)(47)(265)(247)
Net periodic pension cost21997316278
Remeasurement of defined benefit obligation(519)(136)(655)528
Return on plan assets excluding amounts included in interest income(392)(72)(464)(452)
Amounts recognized in other comprehensive income(911)(208)(1,119)76
Total (gain)/expense recognized in statements of comprehensive income(692)(111)(803)354

The reconciliation of the defined benefit obligation, based on actuarial estimates by independent actuaries using the Projected Unit Credit Method, for the financial years ended April 30, 2014, and 2013, is as follows:

20142013
Pension benefitsOther employee benefitsTotalTotal
(In millions of SDRs)
Defined benefit obligation at the beginning of the year6,1771,4337,6106,557
Current service cost18284266222
Interest expense25560315303
Employee contributions292928
Actuarial gain/(loss) due to assumption changes(503)(127)(630)493
Benefits paid(153)(41)(194)(188)
Exchange differences(174)(41)(215)195
Defined benefit obligation at the end of the year5,8131,3687,1817,610

The reconciliation of changes in fair value of assets for the financial years ended April 30 is as follows:

20142013
Pension plansOther employee benefitsTotalTotal
(In millions of SDRs)
Fair value of assets at the beginning of the year5,4291,1436,5725,439
Return on plan assets excluding interest income39272464452
Interest income21847265247
Employer contributions5744101435
Employee contributions292928
Benefits paid(153)(41)(194)(188)
Exchange differences(159)(32)(191)159
Fair value of plan assets at the end of the year5,8131,2337,0466,572

The fair value of major categories of plan assets at April 30, 2014, and 2013, is as follows:

20142013
Quoted market price in an active marketNo quoted market price in an active marketTotalTotal
(In millions of SDRs)
Cash420420328
Global equities1,5288902,4182,409
Emerging markets equities53552605596
Global fixed income462462477
High-fixed income624624633
Real assets250425675560
Private equity and absolute return1,8421,8421,569
Total2,2514,7957,0466,572

Participants in the pension plans contribute a fixed 7 percent of pensionable gross compensation. The actuarially determined contributions to the pension plans were 4.32 percent and 0 percent of pensionable gross compensation for the financial years ended April 30, 2014, and 2013, respectively. Under the IMF’s funding framework, the budgetary allocations for payments to the pension plans have been set at 14 percent of pensionable gross compensation. The IMF expects to contribute SDR 101 million to the pension plans and other long-term employee benefits during the financial year ending April 30, 2015.

The expected pension and benefits payments to be paid out by the Plans are as follows:

Financial year ending April 30Pension plansOther employee benefitsTotal
(In millions of SDRs)
201518456240
201619742239
201721146257
201822548273
201923950289

The principal actuarial assumptions used in calculating the defined benefits obligation for the financial years ended April 30, 2014, and 2013, were as follows:

20142013
(In percentage)
Discount rate/expected return on plan assets4.404.05
Rate of salary increases4.60–9.00
Health care cost growth5.00–7.50
Inflation3.00
Life expectancy(In years)
male88
female91

The health care cost growth assumes an inflation rate of 4 percent plus an additional 3.5 percent in FY 2013, declining by 0.5 percent each year to 1 percent in FY 2018, for expected changes in the health care system and shifts in medical practices.

The weighted average duration of the defined benefit obligation was 18.4 years as of April 30, 2014.

The following shows the sensitivity of the present value of the defined benefit obligation to changes in actuarial assumptions:

Present value of the defined benefil obligationChange in assumptionIncrease in assumptionDecrease in assumption
(in millions of SDRs)
Discount rate0.5%Decrease by 579Increase by 667
Rate of salary increases0.5%Increase by 100Decrease by 100
Health care cost trend rate0.5%Increase by 134Decrease by 117
Inflation rate0.5%Increase by 420Decrease by 380
Life expectancyIncrease in longevity 1 one additional yearIncrease by 222

The sensitivity analyses are based on a change in an assumption while holding all other assumptions constant, so that the effects of correlation between the assumptions are excluded.

18. Other assets

Other assets include overdue SAF loans of SDR 9 million and miscellaneous receivables amounting to SDR 62 million at April 30, 2014 (SDR 9 million and SDR 61 million at April 30, 2013, respectively).

19. Related party transactions

The General Resources Account holds SDRs and accepts and uses them in operations and transactions with participants in the SDR Department. The expenses of conducting the SDR Department, the SRP, the SRBP, the RSBIA, and other accounts administered by the IMF as Trustee are paid by the GRA. Reimbursements are made by the SDR Department (through assessments levied on SDR Department participants), PRG Trust, PCDR Trust, MDRI-I Trust, the SRP, and the RSBIA, and some, but not all, of the administered accounts.

The following summarizes the inter-entity balances at April 30, 2014, and 2013, and the related party transactions for the financial years then ended:

20142013
(In millions of SDRs)
SDR Department
Administrative expenses (reimbursed)11
PRG Trust
Cumulative transfers from the SDA:
Reserve Account2,6972,697
Subsidy Accounts1,0181,018
Administrative expenses (reimbursed)4852
PRG-HIPC Trust
Cumulative transfers from the SDA1,2391,239
PCDR Trust
Cumulative transfers from the SDA280280
Administrative expenses (reimbursed)11
SRP and RSBIA
Administrative expenses (reimbursed)22

Less than SDR 500,000.

Less than SDR 500,000.

General Department: Schedule 1 - Quotas, IMF’s holdings of currencies, reserve tranche positions, and outstanding credit and loans: at April 30, 2014(In millions of SDRs)
Outstanding credit and loans
General Resource AccountGRA
IMF’s holdings of currencies1Reserve tranche positionAmountPercent2SDA3PRG Trust4Total5
MemberQuotaTotalPercent of quota(A)+(B) +(C) =(D)
Afghanistan, Islamic Republic of161.9161.9100.082.882.8
Albania60.082.3137.26.228.50.048.436.9
Algeria1,254.7793.963.3460.8
Angola286.3887.7310.1601.20.74601.2
Antigua and Barbuda13.574.2549.60.160.80.0760.8
Argentina2,117.12,116.9100.00.2
Armenia92.0288.4313.5196.40.24151.3347.7
Australia3,236.42,277.970.4958.9
Austria2,113.91,581.974.8532.0
Azerbaijan160.9160.899.90.12.62.6
Bahamas, The130.3124.095.26.3
Bahrain135.063.847.371.2
Bangladesh533.3532.899.90.5437.9437.9
Barbados67.561.791.45.8
Belarus386.4933.8241.76547.40.67547.4
Belgium4,605.23,442.374.71,162.9
Belize18.814.677.74.2
Benin61.959.696.32.386.086.0
Bhutan6.35.384.11.0
Bolivia171.5162.694.88.9
Bosnia and Herzegovina169.1531.8314.56362.70.45362.7
Botswana87.856.564.431.3
Brazil4,250.53,388.379.7862.2
Brunei Darussalam215.2201.793.713.7
Bulgaria640.2606.194.734.1
Burkina Faso60.252.687.47.6139.2139.2
Burundi77.076.699.50.491.391.3
Cambodia87.587.5100.0
Cameroon185.7184.799.51.0105.6105.6
Canada6,369.24,360.468.52,008.9
Cabo Verde11.210.896.40.40.70.7
Central African Republic55.755.499.50.363.863.8
Chad66.663.795.62.90.80.8
Chile856.1630.273.6225.9
China9,525.99,182.896.4343.2
Colombia774.0492.763.7281.4
Comoros8.98.393.30.612.812.8
Congo, Democratic Republic of the533.0533.0100.0308.8308.8
Congo, Republic of84.684.099.30.614.714.7
Costa Rica164.1144.187.820.0
Cote d’lvoire325.2324.299.71.0609.8609.8
Croatia365.1364.999.90.2
Cyprus158.2406.7257.148.5297.00.37297.0
Czech Republic1,002.2628.162.7374.1
Denmark1,891.41,417.074.9474.4
Djibouti15.914.893.11.121.921.9
Dominica8.28.2100.067.37.3
Dominican Republic218.9767.1350.46548.20.67548.2
Ecuador347.8319.391.828.5
Egypt943.7943.7100.0
El Salvador171.3171.3100.0
Equatorial Guinea52.347.490.64.9
Eritrea15.915.9100.06
Estonia93.979.784.914.2
Ethiopia133.7126.294.47.5187.2187.2
Republic of Fiji70.353.876.516.5
Finland1,263.8955.475.6308.4
France10,738.58,055.475.02,683.2
Gabon154.3153.599.50.8
Gambia, The31.129.695.21.531.431.4
Georgia150.3271.6180.76121.30.1539.2160.5
Germany14,565.510,921.375.03,644.3
Ghana369.0369.0100.06434.9434.9
Greece1,101.823,000.42,087.5240.922,139.527.2522,139.5
Grenada11.711.7100.017.717.7
Guatemala210.2210.2100.0
Guinea107.1107.099.90.173.973.9
Guinea-Bissau14.213.997.90.37.27.2
Guyana90.990.9100.013.013.0
Haiti81.981.899.90.139.339.3
Honduras129.5120.993.48.66.16.1
Hungary1,038.4964.692.973.8
Iceland117.6610.7519.318.8511.90.63511.9
India5,821.54,215.272.41,606.5
Indonesia2,079.31,933.893.0145.5
Iran, Islamic Republic of1,497.21,497.2100.06
Iraq1,188.41,819.5153.1171.1802.20.99802.2
Ireland1,257.620,464.81,627.3258.719,465.823.9619,465.8
Israel1,061.1700.666.0360.5
Italy7,882.35,906.374.91,976.0
Jamaica273.5795.0290.7521.40.64521.4
Japan15,628.515,032.496.2596.3
Jordan170.51,022.7599.80.3852.51.05852.5
Kazakhstan365.7365.7100.06
Kenya271.4258.195.113.3686.7686.7
Kiribati5.65.6100.06
Korea3,366.42,640.778.4725.7
Kosovo59.0137.1232.414.292.30.1192.3
Kuwait1,381.1919.266.6462.0
Kyrgyz Republic88.888.8100.06128.5128.5
Lao People’s Democratic Republic52.952.9100.0
Latvia142.1142.1100.00.1
Lebanon266.4231.787.034.7
Lesotho34.931.189.13.851.051.0
Liberia129.2129.2100.0664.364.3
Libya1,123.7827.973.7295.8
Lithuania183.9183.9100.06
Luxembourg418.7349.883.568.9
Macedonia, former Yugoslav Republic of68.9265.9385.96197.00.24197.0
Madagascar122.2122.199.90.142.942.9
Malawi69.467.096.52.4133.5133.5
Malaysia1,773.91,176.066.3597.9
Maldives10.011.6116.02.03.62.15.7
Mali93.383.389.310.089.689.6
Malta102.063.762.538.3
Marshall Islands3.53.5100.06
Mauritania64.464.4100.084.484.4
Mauritius101.663.362.338.4
Mexico3,625.72,567.270.81,058.5
Micronesia, Federated States of5.15.1100.06
Moldova123.2272.3221.06149.10.18230.4379.5
Mongolia51.171.4139.70.120.40.0320.4
Montenegro27.520.976.06.6
Morocco588.2517.888.070.5
Mozambique113.6113.6100.06118.0118.0
Myanmar258.4258.4100.0
Namibia136.5136.499.90.1
Nepal71.371.3100.0654.554.5
Netherlands5,162.43,908.975.71,253.6
New Zealand894.6582.365.1312.3
Nicaragua130.0130.0100.093.593.5
Niger65.857.286.98.671.271.2
Nigeria1,753.21,753.1100.00.1
Norway1,883.71,505.579.9378.2
Oman237.0154.065.083.1
Pakistan1,033.73,294.7318.70.12,261.12.7817.22,278.3
Palau3.13.1100.06
Panama206.6194.894.311.9
Papua New Guinea131.6131.299.70.4
Paraguay99.978.478.521.5
Peru638.4405.963.6232.5
Philippines1,019.3677.766.5341.6
Poland1,688.41,220.672.3467.8
Portugal1,029.723,763.92,307.8207.822,942.028.2422,942.0
Qatar302.6197.265.2105.4
Romania1,030.24,823.1468.23,792.94.673,792.9
Russian Federation5,945.44,286.372.11,659.1
Rwanda80.180.1100.06.96.9
St. Kitts and Nevis8.956.5634.80.147.60.0647.6
St. Lucia15.316.6108.561.310.712.0
St. Vincent and the Grenadines8.37.894.00.57.17.1
Samoa11.610.994.00.711.611.6
San Marino22.416.975.45.5
Sao Tome and Principe7.47.4100.063.43.4
Saudi Arabia6,985.55,143.373.61,842.3
Senegal161.8159.998.81.9127.6127.6
Serbia467.7906.9193.9439.20.54439.2
Seychelles10.938.0348.60.527.70.0327.7
Sierra Leone103.7103.7100.0682.682.6
Singapore1,408.0909.464.6498.9
Slovak Republic427.5267.862.6159.7
Slovenia275.0172.462.7102.7
Solomon Islands10.49.995.20.612.912.9
Somalia44.2140.5317.996.20.128.8111.5
South Africa1,868.51,804.396.664.2
South Sudan123.093.576.029.5
Spain4,023.42,997.374.51,026.1
Sri Lanka413.41,571.3380.147.91,205.81.481,205.8
Sudan169.7345.1203.46175.40.22234.6
Suriname92.186.093.46.1
Swaziland50.744.187.06.6
Sweden2,395.51,847.377.1548.2
Switzerland3,458.53,261.794.3196.8
Syrian Arab Republic293.6293.6100.06
Tajikistan87.087.0100.06104.4104.4
Tanzania198.9188.995.010.0297.6297.6
Thailand1,440.5958.266.5482.4
Timor-Leste10.810.294.40.7
Togo73.472.999.30.591.091.0
Tonga6.95.275.41.7
Trinidad and Tobago335.6213.063.5122.6
Tunisia286.5803.3280.456.2573.00.71573.0
Turkey1,455.81,343.092.3112.8
Turkmenistan75.275.2100.06
Tuvalu1.81.477.80.4
Uganda180.5180.5100.061.81.8
Ukraine1,372.03,528.3257.262,156.32.652,156.3
United Arab Emirates752.5482.564.1270.6
United Kingdom10,738.58,134.175.72,604.5
United States42,122.432,036.276.110,085.5
Uruguay306.5194.463.4112.1
Uzbekistan275.6275.6100.06
Vanuatu17.014.585.32.5
Venezuela, Republica Bolivariana de2,659.12,337.287.9321.9
Vietnam460.7460.7100.06
Yemen, Republic of243.5243.5100.0695.795.7
Zambia489.1489.1100.06249.1249.1
Zimbabwe353.4353.1 99.90.364.664.6
Total238,120.6271,988.447,373.781,237.7100.08.86,030487,342.6
Components may not sum exactly to totals because of rounding.

Includes nonnegotiable, non-interest-bearing notes that members are entitled to issue in substitution for currencies, and outstanding currency valuation adjustments.

Represents the percentage of total use of GRA resources (column A).

Loans under Structural Adjustment Facility (SAF) previously financed by the SDA.

For information purposes only. The PRG Trust is not a part of the General Department.

Includes outstanding Trust Fund loans to Somalia (SDR 6.5 million) and Sudan (SDR 59.2 million).

Less than SDR 50,000.

Components may not sum exactly to totals because of rounding.

Includes nonnegotiable, non-interest-bearing notes that members are entitled to issue in substitution for currencies, and outstanding currency valuation adjustments.

Represents the percentage of total use of GRA resources (column A).

Loans under Structural Adjustment Facility (SAF) previously financed by the SDA.

For information purposes only. The PRG Trust is not a part of the General Department.

Includes outstanding Trust Fund loans to Somalia (SDR 6.5 million) and Sudan (SDR 59.2 million).

Less than SDR 50,000.

General Department: Schedule 2 - Financial resources and liquidity position in the General Resources Account at April 30,2014, and 2013(In millions ofSDRs)
20142013
Usable resources
Usable currencies153,460142,739
SDR holdings12,46212,494
Available resources under borrowing arrangements1242,768242,045
Total usable resources2408,690397,278
Less:Undrawn balances under GRA arrangements113,333107,954
Equals:Uncommitted usable resources295,357289,324
Plus:Repurchases one year forward316,93620,447
Less:Repayments of borrowing one year forward48,3045,425
Less:Prudential balance539,66339,663
Equals:One-year forward commitment capacity (FCC)6264,326264,683
Memorandum items
Resources committed under borrowing arrangements
GAB/NAB366,457366,457
2012 Bilateral borrowing agreements297,285305,302
Quotas of members that finance IMF transactions198,317198,317
Liquid liabilities
Reserve tranche positions47,37458,093
Outstanding borrowings47,28845,503

The available resources take into account a prudential balance set at 20 percent of amounts made available under the NAB (the activated amount of the NAB and a portion of NAB financing from prior activation periods not yet drawn).

Usable resources consist of (1) holdings of currencies of members considered by the IMF as having balance of payments and reserve positions sufficiently strong for their currencies to be used in transfers; (2) SDR holdings; and (3) any unused amounts under credit lines that have been activated.

Repurchases by member countries during the coming 12-month period.

Repayments of borrowings during the coming 12-month period, assuming that the IMF unilaterally extends the maturities of the outstanding drawings under the 2009 borrowing agreements.

Prudential balance is set at 20 percent of quotas of members whose currencies are used in the financing of IMF transactions.

The FCC does not include about US$461 billion (SDR 297 billion) in bilateral commitments from members to boost the IMF resources. These resources will only be counted toward the FCC once: (1) individual bilateral agreements are effective; and (2) the associated resources are available for use by the IMF, as determined by the Executive Board.

The available resources take into account a prudential balance set at 20 percent of amounts made available under the NAB (the activated amount of the NAB and a portion of NAB financing from prior activation periods not yet drawn).

Usable resources consist of (1) holdings of currencies of members considered by the IMF as having balance of payments and reserve positions sufficiently strong for their currencies to be used in transfers; (2) SDR holdings; and (3) any unused amounts under credit lines that have been activated.

Repurchases by member countries during the coming 12-month period.

Repayments of borrowings during the coming 12-month period, assuming that the IMF unilaterally extends the maturities of the outstanding drawings under the 2009 borrowing agreements.

Prudential balance is set at 20 percent of quotas of members whose currencies are used in the financing of IMF transactions.

The FCC does not include about US$461 billion (SDR 297 billion) in bilateral commitments from members to boost the IMF resources. These resources will only be counted toward the FCC once: (1) individual bilateral agreements are effective; and (2) the associated resources are available for use by the IMF, as determined by the Executive Board.

General Department: Schedule 3 - Status of arrangements in the General Resources Account: at April 30, 2014(In millions of SDRs)
MemberDate of arrangementExpirationTotal amount agreedUndrawn balance
Stand-By Arrangements
Bosnia and HerzegovinaSeptember 26, 2012June 30, 2015474221
JordanAugust 3, 2012August 2, 20151,364512
RomaniaSeptember 27, 2013September 26, 20151,7511,751
St. Kitts and NevisJuly 27, 2011July 26, 2014535
TunisiaJune 7, 2013June 6, 20151,146573
UkraineApril 30, 2014April 29, 201610,97610,976
Total Stand-By Arrangements15,76414,038
Extended Arrangements
AlbaniaFebruary 28, 2014February 27, 2017296272
ArmeniaMarch 7, 2014May 6, 20178270
CyprusMay 15, 2013May 14, 2016891594
GreeceMarch 15,2012March 14, 201623,78516,574
JamaicaMay 1,2013April 30, 2017615393
PakistanSeptember 4, 2013September3, 20164,3933,313
PortugalMay 20, 2011June 30, 201423,742800
Total Extended Arrangements53,80422,016
Precautionary and Liquidity Line
MoroccoAugust 3, 2012August 2, 20144,1174,117
Total Precautionary and Liquidity Line4,1174,117
Flexible Credit Line
ColombiaJune 24, 2013June 23, 20153,8703,870
MexicoNovember 30, 2012November 29, 201447,29247,292
PolandJanuary 18, 2013January 17, 201522,00022,000
Total Flexible Credit Line73,16273,162
Total General Resources Account146,847113,333
General Department: Schedule 4 - Status of borrowings in the General Resources Account at April 30, 2014, and 2013(In millions of SDRs)
Outstanding borrowings
Member, Central BankCommitment amount20142013
NAB commitments1
Australia4,370545539
Austria3,579481444
Belgium7,8621,057987
Brazil8,7411,1181,060
Canada7,624974941
Banco Central de Chile1,360183165
China31,2173,9693,820
Cyprus3403535
Danmarks Nationalbank3,208431403
Deutsche Bundesbank25,3713,4103,184
Finland2,232300277
France18,6572,5072,342
Hong Kong Monetary Authority3404641
India8,7411,1171,060
Bank of Israel5006861
Italy13,5781,8251,704
Japan65,9538,1608,207
Korea6,583886803
Kuwait3414442
Luxembourg971125118
Malaysia3404642
Mexico4,995675616
Netherlands9,0441,1921,116
New Zealand6248477
Norway3,871496486
Bangko Sentral ng Pilipinas3404642
National Bank of Poland2,530340314
Banco de Portugal1,5426464
Russian Federation8,7411,1781,078
Saudi Arabia11,1261,4331,381
Singapore1,277172157
South Africa3404442
Spain6,702901841
Sveriges Riksbank4,440543557
Swiss National Bank10,9051,3361,331
Thailand3404642
United Kingdom18,6572,3832,342
United States69,075

366,457
8,8238,509
Borrowing Agreements2
Central Bank of Malta1315
Slovak Republic4854
Czech National Bank113129
Bank of Slovenia3135
Total47,28845,503

1n addition to the NAB, the IMF may also borrow under the GAB, and an associated agreement with Saudi Arabia, amounts up to SDR 17 billion and SDR 1.5 billion, respectively, but with maximum borrowings under the NAB and GAB of SDR 366.5 billion. At April 30, 2014, members have committed US$461 billion (SDR 297 billion) to boost IMF resources and serve as a second line of defense to the IMF’s quota and NAB resources, of which bilateral agreements totaling US$428 billion (SDR 277 billion) were signed and became effective. The latter includes agreements with Australia, National Bank of Belgium, People’s Bank of China, Czech National Bank, Danmarks Nationalbank, Bank of Finland, France, Deutsche Bundesbank, Reserve Bank of India, Banca d’ltalia, Japan, Korea, Luxembourg, Bank Negara Malaysia, Central Bank of Malta, Banco de Mexico, De Nederlandsche Bank NV, New Zealand, Norges Bank, Oesterreichische Nationalbank, Bangko Sentral ng Pilipinas, Narodowy Bank Polski, Central Bank of the Russian Federation, Saudi Arabia, Monetary Authority of Singapore, Slovak Republic, Bank of Slovenia, Spain, Sveriges Riksbank, Bank of Thailand, and Central Bank of the Republic of Turkey.

Upon its expiration on February 15, 2013, the borrowing agreement with Slovak Republic was not renewed. Effective April 1, 2013, the Executive Board decided not to draw on the remaining borrowing agreements.

1n addition to the NAB, the IMF may also borrow under the GAB, and an associated agreement with Saudi Arabia, amounts up to SDR 17 billion and SDR 1.5 billion, respectively, but with maximum borrowings under the NAB and GAB of SDR 366.5 billion. At April 30, 2014, members have committed US$461 billion (SDR 297 billion) to boost IMF resources and serve as a second line of defense to the IMF’s quota and NAB resources, of which bilateral agreements totaling US$428 billion (SDR 277 billion) were signed and became effective. The latter includes agreements with Australia, National Bank of Belgium, People’s Bank of China, Czech National Bank, Danmarks Nationalbank, Bank of Finland, France, Deutsche Bundesbank, Reserve Bank of India, Banca d’ltalia, Japan, Korea, Luxembourg, Bank Negara Malaysia, Central Bank of Malta, Banco de Mexico, De Nederlandsche Bank NV, New Zealand, Norges Bank, Oesterreichische Nationalbank, Bangko Sentral ng Pilipinas, Narodowy Bank Polski, Central Bank of the Russian Federation, Saudi Arabia, Monetary Authority of Singapore, Slovak Republic, Bank of Slovenia, Spain, Sveriges Riksbank, Bank of Thailand, and Central Bank of the Republic of Turkey.

Upon its expiration on February 15, 2013, the borrowing agreement with Slovak Republic was not renewed. Effective April 1, 2013, the Executive Board decided not to draw on the remaining borrowing agreements.

    Other Resources Citing This Publication