Report on the Incidence of Longer-Term Program Engagement
Author: International Monetary Fund
Publication Date:
09 Nov 2014
eISBN:
9781498342773
Language:
English
Keywords:
ECF arrangement; LTPE definition; member's LTPE status; post assessment; article IV discussion 2
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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 fifteenth such report and provides information through September 1, 2014

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 fifteenth such report and provides information through September 1, 2014

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.1 In response to the Executive Board’s request for periodic updates on the incidence of LTPEs, this is the fifteenth such report and provides information through September 1, 2014.2

2. An Ex Post Assessment (EPA) is required for members identified as meeting the LTPE definition, and for whom an EPA has not been prepared in the past five years.3 As of September 1, 2014, the Executive Board had discussed EPAs for 54 members (Table 1). The Grenada EPA was the only one discussed in the past 12 months.

Table 1.

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

(As of September 1, 2014)

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Source: IMF staff.

Excluding the Policy Support Instrument. Arrangement and LTPE status at the time of the EPA.

And 6th Review under PRGF.

And ex post evaluation of exceptional access.

EPA Update.

An EPA report, rather than an EPA update, was required since during the period relevant for the update, a program has been interrupted for more than six months.

3. Fourteen members met the LTPE definition as of September 1, 2014 (Table 2). Since the time of the last report, Afghanistan and Haiti were added to the list of countries with LTPE, while Mauritania no longer meets the LTPE definition.

Table 2.

Members with Longer-Term Program Engagement 1

(As of September 1, 2014)

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 Instrument (PSI).

4. In the next twelve months, EPA reports for Afghanistan and Haiti are expected to be produced. The Haiti EPA report is expected to be discussed by the Executive Board together with the last review under the current ECF arrangement, recently extended through December 28, 2014. In the case of Afghanistan, should a successor arrangement be contemplated, an EPA report would be prepared for Board discussion prior to a request for such arrangement in line with the policy and the guideline. For all other countries meeting the LTPE definition EPA reports or updates have been issued within the last five years and therefore no assessments are required in the next twelve months.

1

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, ENDA/EPCA, or RFI does not count towards LTPE. Further, time spent under the Policy Support Instrument (PSI), the precautionary use of the Flexible Credit Line (FCL), Precautionary and Liquidity Line (PLL), or the GRA or 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,” (PIN/06/96, 08/10/06); 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”.

2

This report provides an update since the last report to the Executive Board from July 2013.

3

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.

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Cover Policy Papers
Report on the Incidence of Longer-Term Program Engagement
Author: International Monetary Fund
Volume/Issue:
Volume 2014: Issue 081
Publisher:
International Monetary Fund
ISBN:
9781498342773
ISSN:
2663-3493
Pages:
4
DOI:
https://doi.org/10.5089/9781498342773.007