Report on the Incidence of Longer-Term Program Engagement
Author: International Monetary Fund
Publication Date:
30 Jun 2011
eISBN:
9781498338752
Language:
English
Keywords:
EPA report; LTPE case; post assessment; Gra arrangement; member's LTPE status
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Longer-term program engagement (LTPE) occurs when a member has spent at least seven of the past 10 years under Fund-supported financial arrangements. In response to the Executive Board’s request for periodic updates on the incidence of LTPEs, this is the twelfth such report and provides information through June 22, 2011.

Abstract

Longer-term program engagement (LTPE) occurs when a member has spent at least seven of the past 10 years under Fund-supported financial arrangements. In response to the Executive Board’s request for periodic updates on the incidence of LTPEs, this is the twelfth such report and provides information through June 22, 2011.

1. Longer-term program engagement (LTPE) occurs when a member has spent at least seven of the past 10 years under Fund-supported financial arrangements.2 In response to the Executive Board’s request for periodic updates on the incidence of LTPEs, this is the twelfth such report and provides information through June 22, 2011.3

2. An Ex Post Assessment (EPA) is required for members considered as having LTPE that wish to request successor arrangements, provided at least five years have passed since the last EPA for the member.4 As of June 22, 2011, the Executive Board had discussed EPAs for 50 members. Eight more LTPE cases were assessed since the last update to the Executive Board.

3. The EPA requirement was temporarily suspended at the time of the last incidence report, until August 27, 2010.5 In line with the Board decision regarding program requests during the suspension period, brief updates were prepared for Benin, Malawi, Mauritania, and Sierra Leone to provide the Board with brief summaries before EPA updates (an EPA report for Mauritania) were later prepared.6 Since the expiration of the suspension period, EPA reports for Sierra Leone, Kyrgyz Republic, Mali and Mauritania as well as EPA updates for the Gambia, Benin, Georgia, and Zambia have been discussed by the Board.

4. Fifteen members, all PRGT eligible (with Armenia currently having a GRA arrangement), met the LTPE definition as of June 22, 2011. Since the time of the last report, Albania, Cameroon, Madagascar, Republic of Serbia, Tanzania and Turkey have ceased to meet the LTPE definition.

5. Several EPAs are expected over the next year. As discussed in ¶, EPA update is expected for Executive Board discussion for Malawi; EPA reports for Niger and Republic of Serbia are also expected in the second half of 2011. Should programs be requested, EPA report for Sao Tome & Principe and an EPA update for Nicaragua would be required.

Table 1.

Ex Post Assessments Considered by the Executive Board and Member’s LTPE Status

(As of June 22, 2011)

article image
Source: IMF staff.

Excluding the Policy Support Instrument. Arrangement as of Junel5, 2011.

And 6th Review under PRGF.

And ex post evaluation of exceptional access.

EPA Update

Table 2.

Members with Longer-Term Program Engagement

(As of June 22, 2011)

article image
Source: IMF staff.

Members that have had at least seven years of non-precautionary Fund financial arrangements in the last ten years.

Excluding the Policy Support rnstrument (PSI).

The member currently has both PRGT and GRA arrangements.

The member currently has a PSI.

1

Prepared by Ferhan Salman and Federico Gabriel Presciuttini.

2

Fund financial arrangements that qualify for the definition of LTPE are those drawing on upper credit tranche GRA or PRGF-ESF/PRGT resources, or any blend of the two. An outright purchase under the ESF, RAC, RCF, or ENDA/EPCA does not count towards LTPE. Further, time spent under the Policy Support Instrument (PSI) the precautionary use of the Flexible Credit Line (FCL), precautionary credit line (PCL), or the GRA or PRGF-ESF/PRGT resources that remain undrawn throughout the arrangement does not count toward LTPE. For a complete definition of LTPE, see “Public Information Notice of Ex Post Assessments and Issues Related to the Policy on Longer-Term Program Engagement,” ; report entitled “Review of Ex Post Assessments and Issues Relating to the Policy on Longer-Term Engagement”; and “Ex Post Assessment of Members with Longer-Term Program Engagement—Revised Guidance Note”.

3

This report provides an update since the last report to the Executive Board from June 2010.

4

The Executive Board approved, on August 28, 2009, modifications to the procedures for EPAs in light of the Board discussion of Omnibus Paper on Easing Work Pressures. The changed procedures are discussed in detail in the Revised Guidance Note for Ex Post Assessment of Members with Longer-Term Program Engagement.

5

The initial request was made in the 2009 Report on the Incidence of Longer-Term Program Engagement and Request for Temporary Suspension of the Ex Post Assessment Requirement, with further Board decision taken in the context of the Omnibus Paper on Easing Work Pressures.

6

See the revised guidance note for Ex Post Assessments of Members with Longer-Term Program Engagement for distinction between a streamlined “EPA update” and a more comprehensive “EPA report.”

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Cover Policy Papers
Report on the Incidence of Longer-Term Program Engagement
Author: International Monetary Fund
Volume/Issue:
Volume 2011: Issue 045
Publisher:
International Monetary Fund
ISBN:
9781498338752
ISSN:
2663-3493
Pages:
4
DOI:
https://doi.org/10.5089/9781498338752.007