Unfavorable global economic and financial conditions contributed to a sharp rise in new IMF commitments in financial year 2002, to SDR 41.3 billion up from SDR 14.5 billion in financial year 2001.
Under the IMF’s regular (nonconcessional) financing facilities, the IMF approved nine new Stand-By Arrangements involving commitments totaling SDR 26.7 billion, most of which was earmarked for Brazil and Turkey, and augmented commitments by SDR 12.7 billion to Argentina and Turkey under Stand-By Arrangements already in place. Total drawings under the IMF’s regular financing facilities amounted to SDR 29.1 billion, while repayments totaled SDR 19.2 billion, in financial year 2002. Consequently, IMF credit outstanding rose by SDR 9.9 billion, to SDR 52.1 billion by end-April 2002.
In financial year 2002, the mobilization of loan and grant resources for the continuation of the Poverty Reduction and Growth Facility (PRGF) during 2002-05 and the Heavily Indebted Poor Countries (HIPC) Initiative was completed, with 10 lenders providing SDR 4.4 billion in new loan resources to finance future PRGF operations. The IMF Executive Board approved 9 new PRGF arrangements during the year, with commitments totaling SDR 1.8 billion. In addition, augmentations of existing commitments totaling SDR 66 million were approved. Total PRGF disbursements amounted to about SDR 1.0 billion in financial year 2002, compared with SDR 0.6 billion in the previous financial year. As of end-April 2002, the IMF had also committed HIPC Initiative assistance (grants) of SDR 1.6 billion to 26 eligible member countries that had reached their decision points under the enhanced framework. Of these commitments, SDR 0.7 billion has been disbursed.
On May 4, 2001, an administered account was established to accept contributions from bilateral donors that would enable the IMF to provide Postconflict Emergency Assistance at a concessional rate of charge of 0.5 percent a year for PRGF-eligible members. As of April 30, 2002, total pledged contributions of SDR 7 million had been made, of which SDR 1.4 million by the United Kingdom and Sweden had been paid. During the financial year, disbursements totaled SDR 0.8 million to subsidize the rate of charge on postconflict assistance for six countries (Albania, the Republic of Congo, Guinea-Bissau, Rwanda, Sierra Leone, and Tajikistan).