Chapter

General Department

Author(s):
International Monetary Fund
Published Date:
October 2017
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Report of Independent Auditors

To the Board of Governors of the International Monetary Fund

We have audited the accompanying financial statements of the General Department of the International Monetary Fund (the “Department”), which comprise the statements of financial position as of April 30, 2017 and 2016, and the related statements of comprehensive income, of changes in reserves, resources, and retained earnings and of cash flows for the years then ended.

We are independent of the Department in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United States of America, together with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants, and we have fulfilled our other ethical responsibilities in accordance with these requirements, respectively.

Responsibilities of Management and Those Charged With Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Department’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless management either intends to liquidate the Department or to cease operations or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Department’s financial reporting process.

Auditors’ Responsibility

Our responsibility is to express an opinion on the financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error. Reasonable assurance is a high level of assurance but is not a guarantee that an audit will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We design audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error because fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

In making those risk assessments, we consider internal control relevant to the Department’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the Department’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation, structure, and content of the financial statements, including disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

As part of an audit:

  • We exercise professional judgment and maintain professional skepticism throughout the audit.

  • We conclude on the appropriateness of management’s use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Department’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the Department to cease to continue as a going concern.

  • We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies or material weaknesses in internal control that we identify during our audit.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the General Department of the International Monetary Fund as of April 30, 2017 and 2016, and the results of its operations and its cash flows for the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Other Matter

Our audit was conducted for the purpose of forming an opinion on the financial statements taken as a whole. The supplemental schedules listed on pages 29 to 36 are presented for purposes of additional analysis and are not a required part of the financial statements. The information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves and other additional procedures, in accordance with auditing standards generally accepted in the United States of America. We also subjected the information to the applicable procedures required by the International Standards on Auditing. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements taken as a whole.

June 23, 2017

Statements of financial position at April 30, 2017, and 2016

(In millions of SDRs)

Note20172016
Assets
Usable currencies359,434360,036
Credit outstanding548,30047,798
Other currencies67,40665,575
Total currencies5475,140473,409
SDR holdings28,25631,842
Investments619,12514,968
Gold holdings83,1673,167
Property, plant and equipment and intangible assets9473434
Net defined benefit asset11356
Other assets10553563
Total assets527,070524,383
Liabilities
Other liabilities10632811
Net defined benefit liability11144508
Special Contingent Account121,1881,188
Borrowings1329,14931,671
Quotas, represented by14
Reserve tranche positions48,55445,967
Other subscription payments426,829425,601
Total quotas475,383471,568
Total liabilities506,496505,746
Reserves of the General Resources Account1519,92818,438
Retained earnings of the Investment Account637190
Resources of the Special Disbursement Account99
Total liabilities, reserves, retained earnings, and resources527,070524,383
The accompanying notes are an integral part of these financial statements.These financial statements were approved by the Managing Director and the Director of Finance on June 23, 2017.
The accompanying notes are an integral part of these financial statements.These financial statements were approved by the Managing Director and the Director of Finance on June 23, 2017.
Christine Lagarde /s/Andrew Tweedie /s/
Managing DirectorDirector, Finance Department

Statements of comprehensive income for the financial years ended April 30, 2017, and 2016

(In millions of SDRs)

Note20172016
Operational income
Charges161,1571,327
Interest on SDR holdings549
Net income/(loss) from investments6527(20)
Service charges and commitment fees16363120
2,1011,436
Operational expenses
Remuneration177512
Interest expense on borrowings135518
Administrative expenses181,001951
1,131981
Net operational income970455
Other comprehensive income
Remeasurement of net defined benefit asset/liability11967543
Total comprehensive income1,937998
Total comprehensive income of the General Department comprises:
Total comprehensive income of the General Resources Account1,4101,018
Total comprehensive income/(loss) of the Investment Account527(20)
Total comprehensive loss of the Special Disbursement Account
1,937998
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Statements of changes in reserves, resources, and retained earnings for the financial years ended April 30, 2017, and 2016

(In millions of SDRs)

General Resources AccountInvestment Account retained earningsSpecial Disbursement Account resources
NoteSpecial ReserveGeneral ReserveTotal reserves
Balance at April 30, 20158,3739,02917,4022289
Net operational income/(loss)238237475(20)
Other comprehensive income271272543
Total comprehensive income/(loss)155095091,018(20)
Transfer of Investment Account income159918(18)
Balance at April 30, 20168,8919,54718,4381909
Net operational income221222443527
Other comprehensive income484483967
Total comprehensive income157057051,410527
Transfer of Investment Account income15404080(80)
Balance at April 30, 20179,63610,29219,9286379
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Statements of cash flows for the financial years ended April 30, 2017, and 2016

(In millions of SDRs)

20172016
Usable currencies and SDRs from operating activities
Total comprehensive income1,937998
Adjustments to reconcile total comprehensive income to usable currencies and SDRs generated by operations
Depreciation and amortization2827
Charges(1,157)(1,327)
Interest on SDR holdings(54)(9)
Net (income)/loss from investments(527)20
Remuneration7512
Interest expense on borrowings5518
Loss on the disposal of property, plant and equipment5
Changes in other assets and liabilities
Changes in other assets(5)4
Changes in other liabilities(149)107
Changes in the net defined benefit asset/liability(720)(321)
Usable currencies and SDRs from credit to members
Purchases, including reserve tranche purchases(6,191)(7,699)
Repurchases5,55012,115
Interest received and paid
Charges1,1441,473
Interest on SDR holdings327
Remuneration(42)(10)
Interest on borrowings(33)(19)
Net usable currencies and SDRs (used in)/provided by operating activities(52)5,396
Usable currencies and SDRs from investing activities
Acquisition of property, plant and equipment and intangible assets(72)(81)
(Acquisition)/disposal of investments(3,665)84
Net usable currencies and SDRs (used in)/provided by investing activities(3,737)3
Usable currencies and SDRs from financing activities
Borrowings1,0993,402
Repayments of borrowings(3,621)(8,510)
Quota subscription payments in SDRs and usable currencies2,123208,159
Net usable currencies and SDRs (used in)/provided by financing activities(399)203,051
Net (decrease)/increase in usable currencies and SDRs(4,188)208,450
Usable currencies and SDRs, beginning of year391,878183,428
Usable currencies and SDRs, end of year387,690391,878
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.

Notes to the financial statements for the financial years ended April 30, 2017, and 2016

1. Nature of operations

The International Monetary Fund (“IMF” or “the Fund”) is an international organization with 189 member countries. It was established, pursuant to its Articles of Agreement, to promote international monetary cooperation and exchange stability and 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. It is headquartered in Washington, DC, U.S.A.

The IMF conducts its operations and transactions through the General Department. The General Department comprises three accounts: (i) the General Resources Account (GRA); (ii) the Investment Account (IA); and (iii) the Special Disbursement Account (SDA).

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 on creditor positions and interest to lenders, and other operations.

A core responsibility of the IMF is to provide financial assistance to member countries experiencing actual or potential balance of payments problems. Upon the request of a member country, IMF resources are made available either under a lending arrangement or in the form of outright purchases (disbursements). An arrangement is a decision by the IMF Executive Board (Executive Board) that gives a member the assurance that the GRA stands ready to provide resources during a specified period and up to a specified amount, in accordance with the terms of the lending instrument.

The Stand-By Arrangement (SBA), the core lending instrument in the GRA, is designed for members with medium-term balance of payments problems. The Extended Fund Facility (EFF) is an instrument for members with longer-term balance of payments problems that reflect structural impediments requiring fundamental economic reform. Resources under the SBA and the EFF are made available in phased installments as the member implements economic policies and measures specified under the arrangement.

The Flexible Credit Line (FCL) is available for members with very strong fundamentals, policies, and track records of policy implementation and is intended for crisis prevention and resolution. The Precautionary Liquidity Line (PLL) is available for members with sound economic fundamentals but with some remaining vulnerabilities that preclude them from using the FCL. The FCL and the PLL provide one-time up-front access to IMF resources.

The lending instrument for outright purchases (disbursements) is the Rapid Financing Instrument (RFI), which is used by members that face an urgent balance of payments need without the need for a full-fledged program.

1.2 Investment Account

The IA holds resources transferred from the GRA, which are invested to broaden the IMF’s income base. The Executive Board adopted the Rules and Regulations of the IA, which provide the framework for the implementation of the expanded investment authority authorized under the Fifth Amendment of the Articles of Agreement. The IA comprises two principal subaccounts: the Fixed-Income Subaccount and the Endowment Subaccount.

The Fixed-Income Subaccount holds resources transferred from the GRA that are not related to profits from gold sales. With a view to generating income while protecting the Fund’s balance sheet, the investment objective of the Fixed-Income Subaccount is to produce returns in Special Drawing Rights (SDR) terms in excess of the SDR interest rate (see Note 2.2) over time while minimizing the frequency and extent of negative returns and underperformance over an investment horizon of three to four years.

The Endowment Subaccount was credited with SDR 4.4 billion in profits from gold sales during financial years (FY) 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 IA’s objective to generate investment returns to contribute to the IMF’s income, while preserving the long-term real value of these assets. The bulk of the assets are managed passively. The actively managed portfolio of the Endowment Subaccount was initiated during the year ended April 30, 2017, with the investment of about 2.5 percent of total Endowment assets. This portfolio may grow to up to 10 percent of the Endowment assets.

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 (April 1978). SDA resources can be used for various purposes, as specified in the Articles of Agreement, including transfers to the GRA for immediate use in operations and transactions, transfers to the IA, 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 overdue 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 Other entities administered by the IMF

The IMF also administers the Special Drawing Rights Department (SDR Department) and other trusts and accounts established to perform financial and technical services consistent with the IMF’s purposes. As the General Department does not have control over these entities, their financial statements are presented separately.

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.

The resources of other trusts and administered accounts are contributed by members, by other financial institutions, or by the IMF through the SDA. The assets of the other trusts and administered accounts are separate from the assets of the General Department and cannot be used to meet the liabilities, obligations, or losses incurred in the operations of the General Department. The General Department is reimbursed for the expenses incurred in conducting the business of other trusts and administered accounts.

2. Basis of preparation and measurement

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

2.1 Unit of account

The financial statements are presented in SDRs, which is the IMF’s unit of account. The value of the SDR is determined daily by the IMF by summing specific amounts of the 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 2015 and the Chinese renminbi was included in the SDR valuation basket effective October 1, 2016. The specific amounts of the currencies in the basket were as follows:

October 1, 2016 to April 30, 2017Prior to October 1, 2016
Chinese renminbi1.0174
Euro0.386710.423
Japanese yen11.90012.1
Pound sterling0.0859460.111
U.S. dollar0.582520.660

At April 30, 2017, 1 SDR was equal to US$1.37102 (US$1.41733 at April 30, 2016).

The next review of the method of valuation of the SDR will take place by September 30, 2021, unless developments in the interim justify an earlier review.

2.2 SDR interest rate

The SDR interest rate provides the basis for charges levied on credit outstanding (see Note 16), interest on SDR holdings, remuneration paid on members’ reserve tranche positions (Note 17), and interest on borrowings (Note 13).

The SDR interest rate is determined weekly by reference to a weighted average of yields or rates on short-term instruments in the money markets of the members whose currencies are included in the SDR valuation basket:

SDR basket currencyYield or rate
Chinese renminbi1Three-month benchmark yield for China Treasury bonds as published by the China Central Depository and Clearing Co., Ltd.
EuroThree-month spot rate for euro area central government bonds with a minimum rating of AA published by the European Central Bank
Japanese yenThree-month Treasury Discount Bills
Pound sterlingThree-month Treasury Bills
U.S. dollarThree-month Treasury Bills

Effective October 1, 2016.

Effective October 1, 2016.

The SDR interest rate is subject to a floor of 0.050 percent and is rounded to three decimal places. The average SDR interest rate was 0.185 percent per annum and 0.051 percent per annum for the financial years ended April 30, 2017, and 2016, respectively.

2.3 Use of estimates and judgment

The preparation of 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 the most significant estimates and critical judgments in applying accounting policies is described in Notes 3.5, 3.6, and 3.11.

3. Summary of significant accounting policies

3.1 New and revised International Financial Reporting Standards

3.1.1 Amendments to existing standards that became effective in the financial year ended April 30, 2017

The following amendments to existing standards issued by the IASB and applicable to the General Department became effective in the financial year ended April 30, 2017. These amendments have no material impact on the General Department’s financial statements:

Amendments to IFRS 7 “Financial Instruments: Disclosures”, issued in September 2014 and effective for annual periods starting on or after January 1, 2016.

Amendments to IFRS 11 “Joint Arrangements”, issued in May 2014 and effective for annual periods starting on or after January 1, 2016.

Amendments to IFRS 12 “Disclosure of Interests in Other Entities”, issued in December 2014 and effective for annual periods starting on or after January 1, 2016.

Amendments to IAS 1 “Presentation of Financial Statements”, issued in December 2014 and effective for annual periods starting on or after January 1, 2016.

Amendments to IAS 16 “Property, Plant and Equipment” and IAS 38 “Intangible Assets”, issued in May 2014 and effective for annual periods starting on or after January 1, 2016.

Amendments to IAS 19 “Employee Benefits”, issued in September 2014 and effective for annual periods starting on or after January 1, 2016.

Amendments to IAS 28 “Investments in Associates and Joint Ventures”, issued in December 2014 and effective for annual periods starting on or after January 1, 2016.

3.1.2 New standards to be adopted in future years

The following new standard has been issued by the IASB and will be effective for annual periods starting on or after January 1, 2018:

In July 2014, the IASB published the complete version of IFRS 9 “Financial Instruments”, which replaced most of the guidance in IAS 39 “Financial Instruments: Recognition and Measurement”. The standard requires financial assets to be classified at fair value through profit or loss, fair value through other comprehensive income, or amortized cost on the basis of the entity’s business model for managing the assets and the contractual cash flow characteristics of the financial asset. No changes were introduced for the classification and measurement of financial liabilities except for financial liabilities designated at fair value through profit or loss. For these financial liabilities, changes in the fair value due to the changes in an entity’s own credit risk must be recognized in other comprehensive income. The incurred loss model of IAS 39 has been replaced by a forward-looking expected credit loss impairment model. The impact of the adoption of IFRS 9 on the General Department’s financial statements is being assessed.

The following new standard has been issued by the IASB and will be effective for annual periods starting on or after January 1, 2019:

In January 2016, the IASB published IFRS 16 “Leases”, which replaced IAS 17 “Leases”. The standard requires lessees to recognize a “right-of-use asset” and a lease liability reflecting future lease payments for all but short-term leases and leases of low-value assets. The impact of the adoption of IFRS 16 on the General Department’s financial statements is being assessed.

3.1.3 New standards and amendments to existing standards effective in future years that are not expected to have a material impact

The following new standards and amendments to existing standards issued by the IASB will become effective in future financial years. These standards and amendments are not expected to have a material impact on the General Department’s financial statements:

Amendments to IFRS 12 “Disclosure of Interests in Other Entities”, issued in December 2016 and effective for annual periods starting on or after January 1, 2017.

IFRS 15 “Revenue from Contracts with Customers”, issued in May 2014 and effective for annual periods starting on or after January 1, 2018.

Amendments to IAS 7 “Statement of Cash Flows”, issued in January 2016 and effective for annual periods starting on or after January 1, 2017.

Amendments to IAS 28 “Investments in Associates and Joint Ventures”, issued in December 2016 and effective for annual periods starting on or after January 1, 2018.

3.2 Currencies

Currencies consist of members’ currencies held by the GRA with the designated depositories, in the form of account balances or non-interest-bearing promissory notes that are encashable by the IMF on demand. Usable currencies are currencies of members considered to be in a sufficiently strong external position that they can be used to finance GRA transactions with other members. Holdings of member currencies that represent purchases of usable currencies or SDRs in exchange for their own currencies are presented as credit outstanding (see Note 3.5). Currencies of members that are not considered to have a sufficiently strong balance of payments and reserves position 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 the end of each financial year, 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 statement of financial position include the receivables and payables arising from the revaluations.

3.3 SDR holdings

The IMF, through the GRA, receives and holds SDRs from members in the settlement of their financial obligations to the GRA and quota payments. In addition, the GRA can use SDRs in transactions and operations with members, including the provision of financial assistance to members, the payment of charges and fees, 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. Interest on SDR holdings is recognized using the effective interest method. Interest receivable is included in other assets in the statement of financial position.

3.4 Cash and cash equivalents

Usable currencies and the SDR holdings are considered cash and cash equivalents in the statement of cash flows.

3.5 Credit outstanding

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.

Credit outstanding is initially recorded at the amount disbursed, which represents the fair value of the consideration given. Thereafter, credit outstanding is carried at amortized cost. An impairment loss under IFRS would be recognized if there were objective evidence of impairment as a result of a loss event that occurred after initial recognition, and would be 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 (see Note 12).

3.6 Investments

Investments in the Fixed-Income Subaccount include fixed-income securities, short-term investments, and fixed-term deposits. The fixed-income securities are designated as financial assets measured at fair value through profit or loss because they are managed and their performance is evaluated on a fair value basis. Short-term investments and fixed-term deposits are measured at amortized cost.

Resources in the Endowment Subaccount are invested in equities, fixed-income securities, and real estate investment trusts (REITs). The investments are designated as financial assets measured at fair value through profit or loss. Temporary holdings of fixed-term deposits and cash instruments are carried at amortized cost.

3.6.1 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 receivable or payable are recognized in other assets and other liabilities, respectively, pending settlement of a transaction.

3.6.2 Derecognition

Investments are derecognized on the trade date 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.

3.6.3 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 method. Dividend income is recognized on an accrual basis based on the ex-dividend date.

3.6.4 Derivative instruments

The fair value of derivative instruments is included in other assets and other liabilities, and changes in their fair value are recognized through profit or loss.

3.7 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. A 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.

A three-level fair value hierarchy is used to determine fair value under which financial instruments are categorized based on the priority of the inputs to the valuation technique. The fair value hierarchy has the following levels:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date;

Level 2: 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); and

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).

When the inputs used to measure the fair value of an asset or liability fall within multiple 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.

The valuation techniques to determine fair value are described in Note 7.

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 that was held on the date of the effectiveness of the Second Amendment of the Articles (April 1978), that portion of the proceeds equal to the historical cost must be placed in the GRA. Any proceeds in excess of the historical cost will be held in the SDA or transferred to the IA. Under the amendment to the Articles on the expanded investment authority of the IMF, profits from the sale of gold acquired after the Second Amendment are to be placed in the IA, while an amount equivalent to the historical cost is placed in the GRA (see Note 8).

3.9 Property, plant and equipment and intangible assets

Property, plant and equipment and intangible assets are measured at cost less accumulated depreciation or amortization. Property, plant and equipment and intangible assets are capitalized and depreciated or amortized over the estimated remaining useful lives using the straight-line method. Buildings are depreciated over 30 years and other property, plant and equipment over three to 20 years. 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. As a 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. As a lessor, the IMF retains the leased assets on its balance sheet and recognizes lease income 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 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 certain post-retirement benefits.

The net defined benefit liability or asset recognized in the statement of financial position is the present value of the defined benefit obligation less the fair value of the plan assets. Changes resulting from remeasurements are reported in other comprehensive income. 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.

Net periodic pension cost includes service costs and net interest cost on the net defined benefit liability.

3.12 Special Contingent Account

The IMF has accumulated precautionary balances against possible credit default in the Special Contingent Account (SCA-1) under the burden sharing mechanism (see Note 12). Balances in the SCA-1 are akin to refundable non-interest-bearing cash deposits and are recorded at cost.

3.13 Borrowings

The IMF can borrow to temporarily supplement its quota resources. The IMF’s main standing borrowing arrangement is the 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 13).

Borrowings are initially recognized at the amount drawn, which represents the fair value of the consideration received. Thereafter borrowings are measured at amortized cost.

3.14 Quotas and reserve tranche positions

The IMF’s resources are primarily 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, its share in SDR allocations, and its access to IMF resources.

Quotas for new members are recognized in the financial statements when paid. An increase in quota for an existing member becomes effective when the member consents to the quota increase and makes the actual payment, and is recorded in the financial statements on the payment date (see Note 14). Typically, a quarter of a member’s quota (reserve asset portion) is 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.

In exchange for the reserve asset portion of its quota payment, and from the use of the member’s currency in the GRA’s transactions or operations, a member acquires a reserve tranche position in the GRA. The reserve tranche is determined as the difference between the member’s quota and the GRA’s holdings of its currency, excluding holdings that reflect the member’s use of GRA credit. A member’s reserve tranche is also considered a part of its international reserves and a liquid claim against the GRA that can be encashed by the member at any time upon the representation of a balance of payments need.

Should a member withdraw from the IMF, its quota subscription is refunded to the extent it is not needed to settle the member’s net obligations to the IMF. Quota subscriptions are classified as liabilities in the statement of financial position, as they embody an unconditional repayment obligation, in the case of a member’s withdrawal from the IMF.

3.15 Charges and fees

The GRA earns interest, referred to as charges, on members’ use of IMF credit (see Note 16). Charges are recognized using the effective interest method.

In addition to the basic rate of charge, outstanding GRA credit is also subject to level- and time-based surcharges (see Note 16). Surcharges are recognized when relevant level- and time-based thresholds are reached.

The IMF does not recognize income from charges by members that are at least six months overdue in meeting any financial obligation to the IMF. The IMF fully recovers such interest income under the burden sharing mechanism, through adjustments to the rates of charge and remuneration (see Note 12).

A service charge is levied by the IMF on all purchases except reserve tranche purchases. Service charges are paid when the purchases are made, and are recognized as income at the same time.

A commitment fee is levied on the amount available for financing under an arrangement for each 12-month period. Commitment fees are refunded as the member makes purchases under the arrangement. At the arrangement’s expiration or cancellation, any unrefunded amount is recognized as income.

Loans under the SAF are at a concessional interest rate of 0.5 percent per annum (see Note 19). All interest income is deferred.

3.16 Remuneration

The IMF pays interest, referred to as remuneration, on a member’s reserve tranche position. Remuneration expense is recognized using the effective interest method.

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.

3.18 Foreign currency translation

Transactions denominated in currencies and not in SDRs are recorded at the rate of exchange on the date of the transaction. Assets and liabilities denominated in other currencies are reported using the SDR exchange rate on the date of the financial statements. Exchange differences arising from the settlement of transactions at rates different from those at the originating date of the transactions are included in the determination of total comprehensive income.

4. Financial risk management

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

4.1 Risk management framework

By virtue of its role established through the Articles of Agreement, the IMF faces a range of financial and nonfinancial risks. The Executive Board has approved a risk acceptance statement guiding risk acceptance and assessment across the IMF’s activities. The IMF has adopted the three lines of defense model for defining responsibilities for actively managing risk within these parameters. Departments conducting day-to-day operations are responsible for establishing and maintaining a system of internal controls for identifying and managing the risks inherent in those operations. An independent Risk Management Unit is responsible for developing and maintaining the risk management framework, fostering the development of risk management tools, and reporting to Management and the Executive Board on the IMF’s overall risk profile, highlighting areas where additional mitigation efforts are needed. Oversight is provided by committees established to monitor and make decisions in specific risk areas, and a Management-chaired Risk Committee, which supports the cycle of risk assessment, ownership, and mitigation vis-à-vis risk acceptance. Management and the Executive Board have the ultimate responsibility for maintaining effective risk management.

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 because 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.

Measures to help mitigate the IMF’s credit risk include program design and monitoring, and economic policies that members agree to follow as a condition for IMF financing; policies on access limits; surcharge policies; preventative, precautionary, and remedial measures; and the burden sharing mechanism (see Note 12). To protect the balance sheet against the financial consequences of protracted arrears, the Fund has accumulated precautionary balances. The adequacy of the precautionary balances is reviewed periodically by the Executive Board.

The IMF generally provides a member access to its resources in support of an economic program adopted by the member to help it resolve its balance of payments difficulties. IMF financial assistance is normally disbursed in tranches, although the entire amount can be made available up front under certain lending instruments. Apart from IMF arrangements, members can also have access to IMF financing through reserve tranche purchases and outright purchases under policies on emergency assistance.

The IMF has established limits on overall access to resources in the GRA. The annual limit is currently set at 145 percent of a member’s quota, with a cumulative limit of 435 percent of a member’s quota (net of scheduled repurchases). Access in excess of these limits is granted in exceptional circumstances. Except for PLL arrangements (see below), there is no pre-specified maximum on exceptional access to IMF resources which will be assessed on a case-by-case basis. The IMF assesses factors such as the size of balance of payments needs, the member’s debt sustainability and its ability to regain access to financing from other sources, and the strength of policies to be adopted. There were no arrangements with exceptional access approved during financial years ended April 30, 2017 and 2016.

FCL arrangements are not subject to any access limits. PLL arrangements have a cumulative access limit of 500 percent of quota (net of scheduled repurchases). Access under a six-month PLL arrangement is subject to a limit of 125 percent of quota. 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 250 percent of quota.

In addition, the IMF has adopted a safeguards policy to mitigate the risk of misuse of resources and misreporting of monetary data that are reported under a program with the IMF. Safeguards assessments of member central banks are undertaken to provide the IMF with reasonable assurance that the central bank’s legal structure, governance, control, reporting, and auditing systems are adequate to maintain the integrity of their operations and to manage resources, including IMF disbursements. When IMF resources are provided as direct budget financing to the government, the safeguards policy also requires that IMF disbursements be deposited at the central bank, and that an appropriate framework agreement between the central bank and the government be in place to ensure timely servicing of the member’s financial obligations to the IMF. Further, a fiscal safeguards review of a state treasury is required for cases where a member requests exceptional access, and at least 25 percent of IMF funds are expected to be used for direct budget financing.

The maximum credit risk exposure is the carrying value of the IMF’s credit outstanding and undrawn commitments (see Note 5 and Schedule 3), which amounted to SDR 150.6 billion and SDR 125.4 billion at April 30, 2017, and 2016, respectively.

The concentration of GRA outstanding credit by region was as follows:

April 30, 2017April 30, 2016
(In millions of SDRs and as a percentage of total GRA credit outstanding)
Africa770.2%1050.2%
Asia and Pacific2830.6%3190.7%
Europe36,14274.8%39,18482.0%
Middle East and Central Asia10,90122.5%7,65216.0%
Western Hemisphere8971.9%5381.1%
Total48,300100.0%47,798100.0%

The use of credit in the GRA by the largest users was as follows:

April 30, 2017April 30, 2016
(In millions of SDRs and as a percentage of total GRA credit outstanding)
Largest user of credit11,47123.7%14,78030.9%
Three largest users of credit30,61363.4%33,78670.7%
Five largest users of credit38,77980.3%41,51986.9%

The five largest users of GRA credit at April 30, 2017, and 2016, in descending order, were Portugal, Greece, Ukraine, Pakistan, and Ireland.

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. The carrying amount of the fixed-income securities represents the maximum exposure to credit risk. The maximum exposure to credit risk for derivative contracts is the amount of any unrealized gains on such contracts.

Credit risk in the IA is minimized by limiting investments to financial instruments with a credit rating equivalent to A (based on Standard & Poor’s long-term rating scale) for the Fixed-Income Subaccount, and BBB+ for sovereign bonds and BBB- for corporate bonds for the Endowment Subaccount. See Notes 6.1 and 6.2 for eligible investment classes for the Fixed-Income and Endowment Subaccounts, respectively. Counterparty risk for forward, swap, and option contracts is mitigated by strict exposure and concentration limits. The credit risk of futures is limited because of daily cash settlement of the net change in the value of open contracts.

The credit risk exposure in the investments portfolio was as follows:

Fixed-Income Subaccount
April 30, 2017April 30, 2016
(As a percentage of total investments in the subaccount)
Sovereign bonds
AAA9.214.8
AA+ to AA–19.025.3
A+ to A5.44.2
Corporate bonds
AAA2.0
AA+ to AA–6.1
A+ to A5.4
Securitized assets
AAA1.2
International financial institutions obligations:
BIS (not rated)47.646.6
Others
AAA3.57.1
AA+ to AA–0.62.0
Total100.0100.0

The Fixed-Income Subaccount authorizes the use of derivatives for managing interest rate and currency risks, or reducing costs in the context of portfolio duration adjustments and portfolio rebalancing. At April 30, 2017, the maximum exposure to credit risk for forward contracts in the Fixed-Income Subaccount amounted to SDR 7 million (none at April 30, 2016).

Endowment Subaccount
April 30, 2017April 30, 2016
(As a percentage of total investments in the subaccount)
Passively managed portfolio:
Developed market sovereign bonds
AAA7.24.9
AA+ to AA–17.610.9
A+ to A–3.62.4
BBB+0.90.6
Developed market corporate bonds
AAA0.30.2
AA+ to AA–2.92.0
A+ to A–8.45.8
BBB+ to BBB–10.76.5
Emerging market bonds
AA+ to AA–3.62.3
A+ to A–7.65.1
BBB+ to BBB–3.72.4
Inflation-linked bonds
AAA2.710.3
AA+ to AA–25.38.2
A+ to A–1.30.5
BBB+ to BBB–0.60.2
International financial institutions obligations:
BIS (not rated)3.637.7
Total100.0100.0
Actively managed portfolio:
AAA1.7
AA+ to AA–14.8
A+ to A–26.1
BBB+ to BBB–57.4
Total100.0

The passively managed portion of the Endowment Subaccount authorizes derivatives for currency hedging and to minimize transaction costs in the context of rebalancing or benchmark replication. The actively managed portion of the Endowment Subaccount permits derivatives subject to specific risk control parameters. At April 30, 2017, the maximum exposure to credit risk for forward contracts in the Endowment Subaccounts was SDR 9 million (SDR 10 million at April 30, 2016).

4.3 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.

4.3.1 Financial assets and liabilities other than investments

4.3.1.1 Interest rate risk

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

Interest rate risk related to borrowings under bilateral borrowing agreements and under the NAB is limited because borrowings are currently levied interest 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 fixed margin.

4.3.1.2 Exchange rate risk

Exchange rate risk is the risk that the IMF’s financial position and cash flows will be affected by fluctuations in foreign currency exchange rates. The IMF has no exchange rate risk exposure on its holdings of members’ currencies in the GRA, including those arising from the use of GRA credit. Under the Articles of Agreement, members are required to maintain the value of such holdings in terms of the SDR. Any depreciation or appreciation in a member’s currency vis-à-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 associated with these activities is limited.

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

4.3.2 Investments

The investment objectives of the Fixed-Income and Endowment Subaccounts differ, and the investment strategies, including asset allocation and risk tolerance, are tailored for each of the subaccounts, thereby exposing them to different types of market risk.

The exposures to market risk, including interest rate and exchange rate risks, are measured using value at risk (VaR), which considers not only known market risks in each of the asset categories but also the effect of asset class diversification. The VaR estimates reported below represent the maximum potential loss in value of the assets over the next year due to adverse market movements with a 95 percent confidence level. Conversely, 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.

VaR models are based predominantly on historical simulations and provide plausible future scenarios based on these simulations. There is no standard methodology for estimating VaR, and the modeling of the market risk characteristics of the investments involves many assumptions and approximations. Different assumptions and/or approximations could produce significantly different VaR estimates.

4.3.2.1 Fixed-Income Subaccount

Under the expanded mandate of the IA, the Fixed-Income Subaccount comprises two tranches, a shorter-duration Tranche 1 and a longer-duration Tranche 2. The eligible investment asset classes in Tranche 1 have been broadened to help diversify sources of income as well as risks beyond governments, official agencies, and international financial institutions (see Note 6.1 for the eligible asset classes). The market risk is mitigated through asset class diversification and within asset classes through broad security selection.

The VaR for the Fixed-Income Subaccount portfolio was SDR 58 million and SDR 45 million at April 30, 2017, and 2016, respectively.

4.3.2.2 Endowment Subaccount

Under the strategic asset allocation approved by the Executive Board for the passively managed portion of the portfolio, investments are divided into seven categories, which are subject to varying market risks and benefits from diversification properties. For the actively managed portion of the portfolio, the Rules and Regulations of the IA establish a 65/35 global bond/equity split but no strategic asset allocation is set for the subcomponents of the two broad asset classes (see Note 6.2 for the eligible asset classes). The market risk is mitigated through asset class diversification and within asset classes through broad security selection.

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. Because 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. For the passively managed portion of the Endowment Subaccount, 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-à-vis the U.S. dollar. The valuation changes in the U.S. dollar vis-à-vis the SDR are included in the determination of the investment income.

The VaR for the Endowment investments was as follows:

April 30, 2017April 30, 2016
(In millions of SDRs)
Passively managed portfolio:
Developed market equities323209
Emerging market equities7755
Developed market sovereign bonds7364
Developed market corporate bonds5654
Emerging market bonds5037
Inflation-linked bonds6585
Real estate investment trusts5044
Diversification effects(151)(117)
Total for passively managed portfolio543431
Actively managed portfolio:
Fixed-income securities6
Equity securities8
Diversification effects(4)
Total for actively managed portfolio10
Total Endowment Subaccount553431

4.4 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 provide resources for unexpected needs, for example, to (i) meet, upon a member’s representation of need, potential demands for a drawing on 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 the NAB or bilateral borrowing agreements.

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 to evaluate the adequacy of quota-based resources to meet members’ demand for IMF financing. The last review—the Fourteenth General Review of Quotas—was completed in December 2010 with a doubling of total members’ quotas to SDR 477 billion (see Note 14).

During the financial years ended April 30, 2017, and 2016, short-term liquidity needs for lending activities were reviewed and approved by the Executive Board on a quarterly basis through a financial transactions plan for quota resources, and the resource mobilization plan for use of resources under the NAB. Following the effectiveness of the quota increases under the Fourteenth General Review of Quotas, the NAB was deactivated on February 25, 2016. The IMF also monitors its short-term liquidity position using quantitative criteria such as the forward commitment capacity (see Schedule 2). The 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 to help meet the expenses of conducting the business of the IMF (see Note 15). The Endowment Subaccount had no immediate liquidity needs for payout during the financial years ended April 30, 2017, and 2016, and the resources have been invested according to the approved strategic asset allocation.

5. Currencies, including credit outstanding

Currency holdings of SDR 475,140 million at April 30, 2017, included receivables and payables arising from valuation adjustments at April 30, 2017 (when all holdings of currencies of members were last revalued), of SDR 10,295 million and SDR 9,648 million, respectively (currency holdings of SDR 473,409 million at April 30, 2016, included receivables and payables of SDR 11,998 million and SDR 5,690 million, respectively). Settlements of these receivables or payables are required to be made by or to members promptly after the end of each financial year.

5.1 Commitments under arrangements

The undrawn commitments under six SBAs and 11 EFFs that were in effect in the GRA at April 30, 2017, amounted to SDR 5,851 million and SDR 16,853 million, respectively (SDR 1,833 million under five SBAs and SDR 8,362 million under six EFFs at April 30, 2016). In addition, at April 30, 2017, three arrangements under the FCL totaling SDR 77,069 million and one arrangement under the PLL with an undrawn balance of SDR 2,504 million were active (three FCLs totaling SDR 64,162 million and one PLL with an undrawn balance of SDR 3,235 million at April 30, 2016); see Schedule 3.

The IMF approved the following arrangements during the financial year ended April 30, 2017:

Amount approved
(In millions of SDRs)
Stand-By Arrangements (SBA)
Iraq3,831
Jamaica1,195
Suriname342
Extended Fund Facility (EFF)
Bosnia and Herzegovina443
Côte d’Ivoire325
Egypt, Arab Republic of8,597
Georgia210
Jordan515
Moldova, Republic of86
Sri Lanka1,071
Tunisia2,046
Flexible Credit Line (FCL)
Colombia8,180
Mexico62,389
Poland, Republic of6,500
Precautionary and Liquidity Line (PLL)
Morocco2,504

During the year ended April 30, 2017, the SBA for Suriname approved on May 27, 2016, was canceled; the EFF for Jamaica approved on May 2, 2013, was canceled and replaced with a new SBA; and the SBA for Georgia approved on July 30, 2014, was canceled and replaced with a new EFF. The FCLs for Colombia, Mexico, and Poland (approved on June 17, 2015, November 26, 2014, and January 14, 2015, respectively), and the PLL for Morocco (approved on July 28, 2014) were canceled and replaced. During the same period, the SBA for Kosovo and the EFF for Armenia were extended, and the EFFs for Albania and Pakistan expired.

The IMF approved the following arrangements during the financial year ended April 30, 2016:

Amount approved
(In millions of SDRs)
Stand-By Arrangements (SBA)
Kenya709
Kosovo148
Flexible Credit Line (FCL)
Colombia3,870

During the year ended April 30, 2016, the access for Poland’s FCL was decreased by SDR 2,500 million, and the EFF arrangements for Cyprus and Greece and the FCL for Colombia (approved on June 24, 2013) were canceled. During the same period, the SBAs of Bosnia and Herzegovina, Jordan, Kenya (approved on February 2, 2015), Romania, and Tunisia expired.

5.2 Credit outstanding

At April 30, 2017, and 2016, members’ use of GRA credit was represented by currency holdings of SDR 48,300 million and SDR 47,798 million, respectively.

Changes in the outstanding use of IMF credit under the various facilities of the GRA, during the financial years ended April 30, 2017, and 2016, were as follows:

April 30, 2016PurchasesRepurchasesApril 30, 2017
(In millions of SDRs)
Credit tranches
SBA7,4201,047(1,964)6,503
RFI9022621,164
EFF39,2894,743(3,582)40,450
Other facilities1187(4)183
Total credit outstanding47,7986,052(5,550)48,300

Other facilities include legacy credit under Enlarged Access, Compensatory and Contingency Financing Facility, and Supplementary Financing Facility.

Other facilities include legacy credit under Enlarged Access, Compensatory and Contingency Financing Facility, and Supplementary Financing Facility.

April 30, 2015PurchasesRepurchasesApril 30, 2016
(In millions of SDRs)
Credit tranches
SBA15,822555(8,957)7,420
RFI77900(75)902
EFF39,1373,230(3,078)39,289
Other facilities192(5)187
Total credit outstanding55,2284,685(12,115)47,798

Repurchases during the financial years ended April 30, 2017, and 2016, included advance repurchases of SDR 3,309 million and SDR 3,323 million, respectively.

Depending on the type of lending instrument, repurchase periods for GRA credit vary from 3¼ to 10 years. Scheduled repurchases in the GRA, including overdue repurchases, are summarized below:

Financial year ending April 3020172016
(In millions of SDRs)
20172,236
20183,0143,014
20194,4156,826
20207,8848,467
20218,9148,112
20229,8118,680
2023 and beyond14,01010,206
Overdue252257
Total48,30047,798

In addition, SDR 9 million in repayments of SAF loans in the SDA, included in other assets, are also overdue (see Note 10).

5.3 Overdue obligations

At April 30, 2017, and 2016, 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
April 30April 30
2017201620172016
(In millions of SDRs)
Total overdue261266853849
Overdue for six months or more261266851848
Overdue for three years or more261266844841

The type and duration of the overdue amounts in the General Department were as follows at April 30, 2017:

GRA repurchases and SAF loansGRA charges and SAF interestTotal obligationLongest overdue obligation
(In millions of SDRs)
Somalia105125230July 1987
Sudan156728884July 1985
Total2618531,114

No impairment losses have been recognized in the financial years ended April 30, 2017, and 2016.

6. Investments

Investments comprised the following:

April 30, 2017April 30, 2016
(In millions of SDRs)
Fixed-Income Subaccount14,06310,365
Endowment Subaccount5,0624,603
Total19,12514 968

During the financial year ended April 30, 2017, SDR 3,665 million was transferred from the GRA to the IA, as approved by the Executive Board (SDR 84 million from the IA to the GRA during the financial year ended April 30, 2016).

6.1 Fixed-Income Subaccount

Tranche 1 is managed actively within tight risk controls against a zero- to three-year government bond index. Tranche 2 is managed according to a buy-and-hold approach against a zero- to five-year government bond benchmark index and will be phased in over a five-year period, which commenced in 2017.

Eligible investments for the shorter-duration Tranche 1 of the Fixed-Income Subaccount include fixed-income securities issued by national governments of members, their central banks and official agencies, international financial institutions, and obligations of the Bank for International Settlements (BIS). Eligible investments in Tranche 1 also include fixed-income securities issued by subnational governments, corporate bonds, mortgage-backed and other asset-backed securities, and cash instruments with maturities of one year or less. For the longer-duration Tranche 2, eligible investments include fixed-income securities issued by national governments of members, their central banks and official agencies, international financial institutions, and obligations of the BIS. This strategy was gradually implemented during the year ended April 30, 2017. Assets are being invested by external managers, except for short-term investments and fixed-term deposits.

Investments consisted of the following:

April 30, 2017April 30, 2016
Tranche 1Tranche 2TotalTotal
(In millions of SDRs)
At fair value through profit or loss
International financial institutions
obligations:
Medium-term instruments (BIS)3,7013,7014,783
Others464108572938
Sovereign bonds4,4452394,6844,539
Corporate bonds1,8761,876
Securitized assets172172
6,9574,04811,00510,260
At amortized cost
Short-term investments6470134105
Fixed-term deposits2,9242,924
642,9943,058105
Total7,0217,04214,06310,365

The notional value of derivative financial instruments held was as follows:

April 30, 2017April 30, 2016
(In millions of SDRs)
Futures
Long positions335
Short positions2,353
Forwards851
Currency swaps356
Options2

The maturities of the fixed-income securities in the Fixed-Income Subaccount were as follows:

Financial year ending April 3020172016
(In millions of SDRs)
20173,573
20189,5294,252
20192,6112,183
202067728
202138511
2022639
2023 and beyond222318
Total14,06310,365

6.2 Endowment Subaccount

The assets of the Endowment Subaccount were invested over a three-year period, beginning in FY 2014, in a globally diversified portfolio consisting of fixed-income and equity instruments (including REITs) in accordance with the strategic asset allocation benchmark. Assets are being invested by external managers, except for short-term investments and fixed-term deposits. The passively managed portfolio replicates broad market indices, while the actively managed portfolio has target shares for fixed income instruments and equities.

Investments consisted of the following:

April 30, 2017April 30, 2016
(In millions of SDRs)
At fair value through profit or loss
Passively managed portfolio:
Developed market sovereign bonds915642
Developed market corporate bonds697494
Emerging market bonds465333
Inflation-linked bonds936655
Developed market equities1,275829
Emerging market equities255172
Real estate investment trusts232172
4,7753,297
Actively managed portfolio:
Fixed-income securities70
Equity securities40
110
At amortized cost
Short-term investments6425
Fixed-term deposits1131,281
1771,306
Total5,0624,603

The notional value of derivative financial instruments held was as follows:

April 30, 2017April 30, 2016
(In millions of SDRs)
Futures
Long positions128
Forwards3,3982,900

The maturities of the fixed-income securities in the Endowment Subaccount were as follows:

Financial year ending April 3020172016
(In millions of SDRs)
20171,322
2018266213
2019284194
2020354201
2021324196
2022329132
2023 and beyond1,7031,172
Total3,2603,430

6.3 Investment Income

Net income/(loss) on investments for the IA consisted of the following:

20172016
(In millions of SDRs)
Interest and dividends230153
Net realized gains/(losses)139(90)
Net unrealized gains/(losses)158(83)
Total527(20)

7. Fair value measurement

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 (interest rate futures and options) 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 equity 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 (foreign exchange forwards, currency swaps) not actively traded is determined using a pricing model that incorporates foreign exchange spot and forward rates and interest rate curves. For these derivatives, significant inputs into models are market observable and are included within Level 2.

7.1 Fixed-Income Subaccount

The following tables present the fair value hierarchy used to determine the fair value of investments in the Fixed-Income Subaccount:

April 30, 2017
Level 1: Quoted prices in active marketsLevel 2: Based on observable market dataTotal
(In millions of SDRs)
Recurring fair value measurements
International financial institutions obligations:
Medium-term instruments (BIS)3,7013,701
Others572572
Sovereign bonds4,6844,684
Corporate bonds1,8761,876
Securitized assets172172
Total11,00511,005
April 30, 2016
Level 1: Quoted prices in active marketsLevel 2: Based on observable market dataTotal
(In millions of SDRs)
Recurring fair value measurements
International financial institutions obligations:
Medium-term instruments (BIS)4,7834,783
Others938938
Developed market sovereign bonds4,5394,539
Total10,26010,260

7.2 Endowment Subaccount

The following tables present the fair value hierarchy used to determine the fair value of investments in the Endowment Subaccount:

April 30, 2017
Level 1: Quoted prices in active marketsLevel 2: Based on observable market dataTotal
(In millions of SDRs)
Recurring fair value measurements
Passively managed portfolio:
Developed market sovereign bonds915915
Developed market corporate bonds697697
Emerging market bonds465465
Inflation-linked bonds936936
Developed market equities1,2751,275
Emerging market equities255255
Real estate investment trusts232232
1,7623,0134,775
Actively managed portfolio:
Fixed-income securities7070
Equity securities4040
4070110
Total1,8023,0834,885
April 30, 2016
Level 1: Quoted prices in active marketsLevel 2: Based on observable market dataTotal
(In millions of SDRs)
Recurring fair value measurements
Developed market sovereign bonds642642
Developed market corporate bonds494494
Emerging market bonds333333
Inflation-linked bonds655655
Developed market equities829829
Emerging market equities71101172
Real estate investment trusts172172
Total1,0722,2253,297

There were no Level 3 financial instruments at April 30, 2017, and 2016, and 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 generally of a short-term nature and are carried at amortized cost, which approximates fair value.

7.3 Financial assets and liabilities other than investments

The IMF plays a unique role in providing balance of payments support to member countries. IMF financing features policy conditions that require member countries to implement macroeconomic and structural policies and are an integral part of IMF lending. These measures aim to help countries resolve their balance of payments problems while safeguarding IMF resources. 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 absence of a principal or most advantageous market for IMF credit. The carrying value of other financial assets and liabilities that are accounted for at amortized cost represents a reasonable estimate of their fair value.

8. Gold holdings

The IMF acquired its gold holdings 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 Articles of Agreement limit the use of gold in the IMF’s operations and transactions. Any transactions in gold provided for in the Articles of Agreement require a decision adopted by an 85 percent majority of the total voting power. 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, 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 prevailing market prices.

At April 30, 2017, and 2016, the IMF held gold of 2,814 metric tons, equal to 90.474 million fine troy ounces, at designated depositories. Gold holdings were valued at a historical cost of SDR 3,167 million at April 30, 2017, and 2016, based on a cost of SDR 35 per fine troy ounce.

At April 30, 2017, the market value of the IMF’s holdings of gold was SDR 83.6 billion (SDR 82.1 billion at April 30, 2016). The market value of the gold holdings is determined based on quoted prices in active markets (Level 1 in the fair value hierarchy).

9. Property, plant and equipment and intangible assets

Property, plant and equipment and intangible assets, net of depreciation and amortization, amounted to SDR 473 million and SDR 434 million at April 30, 2017, and 2016, respectively, and consisted of land, buildings, equipment, furniture, and software.

LandBuildingsOtherTotal
(In millions of SDRs)
Financial year ended April 30, 2017
Cost
Beginning of the year95297368760
Additions17172
Transfers90(90)
Disposals(18)(10)(28)
End of the year95370339804
Accumulated depreciation and amortization
Beginning of the year167159326
Depreciation and amortization62228
Disposals(14)(9)(23)
End of the year159172331
Net book value at April 30, 201795211167473
LandBuildingsOtherTotal
(In millions of SDRs)
Financial year ended April 30, 2016
Cost
Beginning of the year95290329714
Additions8181
Transfers7(7)
Disposals(35)(35)
End of the year95297368760
Accumulated depreciation and amortization
Beginning of the year162172334
Depreciation and amortization52227
Disposals(35)(35)
End of the year167159326
Net book value at April 30, 201695130209434

Other property, plant and equipment included construction in progress of SDR 54 million at April 30, 2017 (SDR 148 million at April 30, 2016), related to the renovation of the IMF headquarters building. At April 30, 2017, the IMF had commitments of SDR 70 million in respect of the renovation of the IMF headquarters building (SDR 95 million at April 30, 2016).

Depreciation and amortization expense of SDR 28 million and SDR 27 million is included in administrative expenses for the financial years ending April 30, 2017, and 2016, respectively (see Note 18).

10. Other assets and liabilities

Other assets comprised the following:

April 30, 2017April 30, 2016
(In millions of SDRs)
Charges receivable289276
Investment trades receivable and derivatives168218
Accrued interest on SDR holdings264
Overdue SAF loans99
Miscellaneous receivables and prepaid expenses6156
Total other assets553563

Other liabilities comprised the following:

April 30, 2017April 30, 2016
(In millions of SDRs)
Refundable commitment fees on active arrangements272415
Investment trades payable and derivatives139224
Miscellaneous payables221172
Total other liabilities632811

11. Employee benefits

11.1 Overview of the Plans

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. Participants may also elect upon retirement to commute up to one-third of the lifetime pension benefits into a lump sum payment. The SRBP provides for the payment of benefits that otherwise would have been payable had the qualified plan benefits and compensation limits not applied.

The SRP and SRBP were amended in November 2016 to update the factors used in the determination of lump sum payments to participants who commute a portion of their pension. The amount of past service cost resulting from this amendment recognized in the statement of comprehensive income amounted to SDR 12 million.

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 has established a separate account, the RSBIA, to hold and invest resources set aside to fund the cost of these post-retirement benefits of current and future retirees.

In April 2017, the Executive Board decided to expand coverage provided by the Fund’s medical benefits plan, effective January 1, 2018. The amount of past service cost resulting from this amendment recognized in the statements of comprehensive income amounted to SDR 76 million.

The assets in the SRP, SRBP, and RSBIA (collectively, the Plans) are held separately from the assets of all other accounts of the IMF. In the event the IMF were to exercise its right to terminate the 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 the costs of administering the Plans, and the SRP and RSBIA reimburse the GRA for investment-related costs.

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

11.2 Risk management

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 plan assets are invested 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. 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, because 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.

11.3 Net defined benefit asset/liability and benefit costs

The amounts recognized in the statements of financial position were determined as follows:

April 30, 2017April 30, 2016
Pension benefitsOther employee benefitsTotalTotal
(In millions of SDRs)
Defined benefit obligation(6,707)(1,726)(8,433)(8,068)
Plan assets7,0631,5828,6457,560
Net defined benefit asset/(liability)356(144)212(508)

The amounts recognized in the statements of comprehensive income were as follows:

20172016
Pension benefitsOther employee benefitsTotalTotal
(In millions of SDRs)
Service cost19274266303
Past service cost127688
Interest expense related to defined benefit obligation24464308356
Interest income related to plan assets(230)(51)(281)(314)
Net periodic pension cost218163381345
Remeasurement of net defined benefit liability(222)(158)(380)(1,204)
Return on plan assets excluding amounts included in interest income(507)(109)(616)674
Exchange differences151429(13)
Amounts recognized in other comprehensive income(714)(253)(967)(543)
Total gain recognized in statements of comprehensive income(496)(90)(586)(198)

The reconciliation of the defined benefit obligation, based on actuarial estimates by independent actuaries using the projected unit credit method, was as follows:

20172016
Pension benefitsOther employee benefitsTotalTotal
(In millions of SDRs)
Defined benefit obligation at the beginning of the year6,4071,6618,0688,882
Current service cost19274266303
Past service cost127688
Interest expense24464308356
Employee contributions373734
Actuarial loss due to demographic assumptions changes70
Actuarial gain due to financial assumptions changes(222)(158)(380)(1,274)
Benefits paid(195)(53)(248)(230)
Exchange differences23262294(73)
Defined benefit obligation at the end of the year6,7071,7268,4338,068

The reconciliation of changes in the fair value of plan assets was as follows:

20172016
Pension benefitsOther employee benefitsTotalTotal
(In millions of SDRs)
Fair value of plan assets at the beginning of the year6,1951,3657,5608,053
Return on plan assets excluding interest income507109616(674)
Interest income23051281314
Employer contributions7262134123
Employee contributions373734
Benefits paid(195)(53)(248)(230)
Exchange differences21748265(60)
Fair value of plan assets at the end of the year7,0631,5828,6457,560

The fair value of major categories of plan assets was as follows:

April 30, 2017April 30, 2016
Quoted market price in an active marketNo quoted market price in an active marketTotalTotal
(In millions of SDRs)
Cash246246321
Global equities1,6461,1512,7972,408
Emerging market equities871,0271,114686
Global fixed income660660515
High-yield fixed income6729735679
Real assets282641923858
Private equity and absolute return2,1702,1702,093
Total2,2676,3788,6457,560

Participants in the pension plans contribute a fixed 7 percent of pensionable gross compensation. There were no actuarially determined employer contributions to the pension plans during the financial years ended April 30, 2017, and 2016. 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 134 million to the Plans during the financial year ending April 30, 2018.

The expected pension and benefits payments to be paid out by the Plans were as follows at April 30, 2017:

Financial year ending April 30Pension benefitsOther employee benefitsTotal
(In millions of SDRs)
201822872300
201924255297
202025858316
202127462336
202228765352

11.4 Principal actuarial assumptions

The IMF reviews the principal actuarial assumptions used in calculating the net defined benefit asset/liability every five years. The most recent review was completed in January 2016 and the principal actuarial assumptions were revised. The principal actuarial assumptions used in the actuarial valuation were as follows:

April 30, 2017April 30, 2016
(In percent)
Discount rate/expected return on plan assets3.973.75
Rate of salary increases (average)4.50
Health care cost trend rate4.00–6.504.00–6.75
Inflation2.00
Life expectancy(In years)
Male88
Female91

The assumed retirement rate ranges from 5 percent at age 50 to 100 percent at age 65, and the assumed participation rate for medical benefits upon retirement is 85 percent.

The weighted average duration of the defined benefit obligation was 17.6 years as of April 30, 2017 (18.2 years as of April 30, 2016).

The following shows the sensitivity of the present value of the defined benefit obligation to changes in actuarial assumptions at April 30, 2017:

Present value of the defined benefit obligationChange in assumptionIncrease in assumptionDecrease in assumption
(In millions of SDRs)
Discount rate0.5%Decrease by 660Increase by 760
Rate of salary increases0.5%Increase by 110Decrease by 110
Health care cost trend rate0.5%Increase by 160Decrease by 140
Inflation rate0.5%Increase by 460Decrease by 420
Life expectancyone year in longevityIncrease by 260

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

12. Burden sharing and the Special Contingent Account

The IMF has adopted the burden sharing mechanism to cope with the financial consequences of member countries’ failure to settle financial obligations to the IMF on time. Under the burden sharing mechanism, resources are generated by increasing the rate of charge and reducing the rate of remuneration to cover shortfalls in the IMF’s income due to the nonpayment of charges. The burden sharing mechanism has also financed additions to the SCA-1, which offers protection against the risk of loss resulting from the ultimate failure of a member to repay its overdue obligations to the IMF.

Members that participated in burden sharing for overdue charges receive refunds to the extent that these charges are subsequently settled. Contributions to the SCA-1 are returned when there are no outstanding overdue repurchases and charges, or at such earlier time as the IMF may decide.

Cumulative overdue 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 718 million at April 30, 2017 (SDR 715 million at April 30, 2016). 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, 2017, and 2016.

The SCA-1 balance amounted to SDR 1,188 million at April 30, 2017, and 2016. Effective November 1, 2006, the Executive Board decided to suspend, for the time being, further additions to the SCA-1. Accordingly, no additions have been made to the SCA-1 during the financial years ended April 30, 2017, and 2016.

13. Borrowings

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 systemic manner.

At April 30, 2017, the IMF had commitments of SDR 180.6 billion under the NAB, SDR 259 billion under the bilateral borrowing agreements, and SDR 18.5 billion under the GAB and an associated agreement with Saudi Arabia; see Schedule 4.

13.1 NAB, GAB, and associated agreement with Saudi Arabia

The NAB is a standing set of credit arrangements with 38 participants that provide supplementary resources to the IMF as a second line of defense, when quota resources need to be supplemented in order to forestall or cope with an impairment of the international monetary system. Following the quota increases of all NAB participants under the Fourteenth General Review of Quotas, the total commitments under the NAB decreased from SDR 366.5 billion to SDR 180.6 billion during the financial year ended April 30, 2016. The NAB is the facility of first and principal recourse, and outstanding drawings and commitments under the NAB and GAB cannot exceed SDR 180.6 billion.

The NAB is renewed periodically; in November 2016, the NAB was renewed through November 2022. NAB resources become available upon activation, which requires the consent of participants representing 85 percent of total NAB credit arrangements of participants eligible to vote and the approval of the Executive Board. Drawings under the NAB can be made to finance purchases by borrowing members for outright purchases and under arrangements that were approved during the period when NAB was activated. The NAB was deactivated in February 2016, but SDR 3,606 million remained available at April 30, 2017, to finance commitments approved during prior activation periods (SDR 38,441 million at April 30, 2016).

Under the 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.

13.2 Bilateral Borrowing Agreements

Since 2009, the IMF has entered into 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 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. Borrowings under 2009 agreements were fully repaid at April 30, 2017.

Following the joint announcement in 2012 by the International Monetary and Financial Committee and the Group of Twenty Finance Ministers and Governors to further bolster IMF resources through bilateral borrowing, the IMF entered into bilateral borrowing agreements under the 2012 borrowing framework with members or their central banks. The 2012 agreements provided for an initial term of two years, with the option to extend the term for up to two additional years, and these four-year terms began to expire in October 2016.

In August 2016, the Executive Board approved a new framework for bilateral borrowing that retains key modalities of the 2012 borrowing framework and includes a new multilateral voting structure that gives creditors a formal say in any future activation decisions. Agreements signed under the 2016 framework expire at end-2019 and are extendable for another year with creditors’ consents.

Bilateral borrowing agreements are intended to serve as a third line of defense to IMF quotas and NAB resources. At April 30, 2017, lenders’ commitments under effective borrowing agreements totaled US$355 billion, equivalent to SDR 259 billion (US$398 billion equivalent to SDR 281 billion at April 30, 2016).

Resources under bilateral borrowing agreements can be activated only if the amount of resources available for lending has fallen below a threshold of SDR 100 billion and upon approval by creditors representing 85 percent of the total credit amount committed. Drawings under the borrowing agreements may be made to fund commitments made during the term of the agreements during which they were active. Drawings are repayable in three months but maturities can be unilaterally extended by the IMF for up to 10 years. Upon determination by the 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. Claims under the bilateral borrowing agreements are encashable on demand by lenders, subject to certain conditions.

13.3 Outstanding borrowings

Outstanding borrowings are denominated in SDRs and carry the SDR interest rate.

During the financial year ended April 30, 2017, drawings under the NAB and repayments under the 2009 bilateral borrowing agreements and the NAB amounted to SDR 1,099 million and SDR 3,621 million, respectively (SDR 3,402 million and SDR 8,510 million, respectively, during the financial year ended April 30, 2016). Total outstanding borrowings at April 30, 2017, and 2016, were SDR 29,149 million and SDR 31,671 million, respectively (see Schedule 4).

The average interest rate on outstanding borrowings was 0.185 percent per annum and 0.051 percent per annum for the financial years ended April 30, 2017, and 2016, respectively. The interest expense on outstanding borrowings during the same periods was SDR 55 million and SDR 18 million, respectively.

Scheduled repayments of outstanding borrowings are summarized below:

Financial year ending April 3020172016
(In millions of SDRs)
20172,770
20182,2032,523
20193,2355,044
20205,6516,327
20215,9865,897
20225,9925,786
2023 and beyond6,0823,324
Total29,14931,671

14. Quotas

The IMF conducts a general review of members’ quotas at intervals of not more than five years. The review allows the IMF to assess the adequacy of quota resources to meet its financing needs and to allow for adjustments to members’ quotas to reflect their relative positions in the world economy.

The Fourteenth General Review of Quotas, which became effective in January 2016, included an aggregate doubling of IMF quotas and a realignment of quota shares. Quota increases for individual countries become effective upon payment. As at April 30, 2017, 179 members had consented and paid in full their quota increases, amounting to SDR 237 billion (SDR 233 billion for 167 members, at April 30, 2016). This amount represents over 99 percent of the total quota increases that members were eligible for as of January 26, 2016 (SDR 239 billion).

The Executive Board is working expeditiously on the Fifteenth General Review of Quotas, with the aim of completing it by the Spring Meetings of 2019 and no later than the Annual Meetings of 2019.

Members’ quotas and reserve tranche positions were as follows:

April 30, 2017April 30, 2016
(In millions of SDRs)
Total quotas475,383471,568
Total currency holdings475,140473,409
Less: members’ outstanding use of IMF credit(48,300)(47,798)
Less: administrative balances(11)(10)
Other subscription payments426,829425,601
Reserve tranche positions48,55445,967

15. Reserves of the General Resources Account

The IMF’s reserves consist of the Special Reserve and the General Reserve. The General Reserve may be used inter alia to meet capital losses and operational deficits, or for distribution. The Special Reserve can be used for the same purposes except distribution to members. At April 30, 2017, the balances of Special and General Reserves amounted to SDR 9,636 million and SDR 10,292 million, respectively (SDR 8,891 million and SDR 9,547 million, respectively, at April 30, 2016).

The Executive Board determines annually what part of the GRA net income will be placed to the General Reserve or the Special Reserve, and what part, if any, will be distributed. For the financial year ended April 30, 2017, the Executive Board decided to place the GRA net income of SDR 1,410 million and the income transferred from the Fixed-Income Subaccount of the IA of SDR 80 million to the two reserves in equal proportions (SDR 1,018 million and SDR 18 million, respectively, in equal proportions, for the financial year ended April 30, 2016).

The IMF’s precautionary balances consist of its reserves (excluding SDR 4.4 billion currently held in the Special Reserve, and attributable to the profits from the limited gold sales in 2009–2010 that has been earmarked for the Endowment Subaccount) and the SCA-1 (see Note 12). As of April 30, 2017, and 2016, precautionary balances amounted to SDR 16.7 billion and SDR 15.2 billion, respectively. At the most recent review of the adequacy of precautionary balances in February 2016, the Executive Board supported retaining the medium-term indicative target for precautionary balances at SDR 20 billion, while the minimum floor for precautionary balances was raised to SDR 15 billion.

16. Charges and fees

The average credit outstanding subject to charges amounted to SDR 48,610 million and SDR 51,451 million for the financial years ended April 30, 2017, and 2016, respectively.

The rate of charge levied on outstanding credit is equal to the basic rate of charge adjusted for burden sharing (see Note 12). The basic rate of charge is the SDR interest rate plus a fixed margin as determined by the Executive Board, which for the years ended April 30, 2017, and 2016, amounted to 100 basis points. The average rate of charge (adjusted for burden sharing) was 1.187 percent per annum and 1.051 percent per annum for the financial years ended April 30, 2017, and 2016, respectively.

Effective February 17, 2016, credit outstanding in excess of 187.5 percent (prior to February 17, 2016, 300 percent) of quota resulting from purchases in the credit tranches and under the EFF, is subject to a level-based surcharge of 200 basis points per annum above the basic rate of charge. An additional time-based surcharge of 100 basis points per annum applies to such credit outstanding for more than three years, except for purchases under the EFF, for which the additional surcharge of 100 basis points applies after 51 months. Prior to February 17, 2016, the trigger for the time-based surcharge was the same for all facilities.

Charges income consisted of the following:

20172016
(In millions of SDRs)
Basic charges572539
Surcharges583787
Burden sharing adjustments21
Total charges1,1571,327

A service charge of 50 basis points is levied by the IMF on all purchases. A commitment fee is levied on the amount available for financing under an arrangement for each 12-month period and refunded as the member makes purchases under the arrangement. The commitment fee amounts to 15 basis points per annum for access up to 115 percent of quota, 30 basis points for access between 115 and 575 percent of quota, and 60 basis points for access in excess of 575 percent of quota. Prior to February 17, 2016, the relevant thresholds were 200 percent and 1,000 percent, respectively.

Service charges and commitment fee income consisted of the following:

20172016
(In millions of SDRs)
Service charges3023
Commitment fee33397
Total charges363120

17. Remuneration

A portion of the reserve tranche position is unremunerated. For a member that joined the IMF on or before April 1, 1978, the unremunerated portion is equal to 25 percent of the member’s quota on April 1, 1978 (that part of the quota subscription 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 ratio of total unremunerated reserve tranches for all other members to their total quotas when the new member joined the IMF. The average remunerated reserve tranche amounted to SDR 40,293 million and SDR 25,542 million during the financial years ended April 30, 2017, and 2016, respectively.

The rate of remuneration is currently equal to the SDR interest rate. Burden sharing adjustments may reduce the rate of remuneration but under the Articles of Agreement, the rate of remuneration may be no lower than 80 percent of the SDR interest rate. The average rate of remuneration (adjusted for burden sharing) for the financial years ended April 30, 2017, and 2016, was 0.182 percent per annum and 0.045 percent per annum, respectively.

Remuneration consisted of the following:

20172016
(In millions of SDRs)
Remuneration7713
Burden sharing adjustments(2)(1)
7512

18. Administrative expenses

Administrative expenses, most of which were incurred in U.S. dollars, were as follows:

20172016
(In millions of SDRs)
Personnel536510
Pension and other long-term employee benefits381345
Travel8688
Other196177
1,1991,120
Reimbursements(198)(169)
Administrative expenses1,001951

19. Special Disbursement Account

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.

19.1 Structural Adjustment Facility

The last SAF loan disbursement was made in 1995, and currently one member (Somalia) has overdue SAF repayment obligations (see Note 10). Interest on SAF loans is levied at 0.5 percent per annum. All interest income is deferred.

19.2 Trust Fund

The SDA was initially activated to receive transfers from the 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 91 million at April 30, 2017, and 2016. All interest income is deferred.

Proceeds from the payments of SAF loans and Trust Fund loans are transferred from the SDA to the Reserve Account of the PRG Trust as contributions. During the financial years ended April 30, 2017, and 2016, there were no such transfers.

20. Related party transactions

The expenses of conducting the business of the SDR Department, the SRP, the SRBP, the RSBIA, and trusts administered by the IMF as Trustee are paid by the GRA. At the end of each financial year, reimbursements are made by the SDR Department (through assessments levied on SDR Department participants), PRG Trust, and Catastrophe Containment and Relief (CCR) Trust. The SRP and the RSBIA reimburse the GRA for the cost of the investment operations. The following summarizes the reimbursements to the GRA:

20172016
(In millions of SDRs)
SDR Department67
PRG Trust7050
CCR Trust11
SRP and RSBIA33

Less than SDR 500,000.

Less than SDR 500,000.

The IMF has transferred resources to the PRG Trust, PRGF-HIPC Trust and CCR Trust to provide financial assistance to low-income countries. The following summarizes the cumulative inter-entity transfers from the IMF:

April 30, 2017 and 2016
(In millions of SDRs)
PRG Trust
Reserve Account2,697
Subsidy Accounts1,018
PRG-HIPC Trust1,239
CCR Trust293

Schedule 1: Quotas, IMF’s holdings of currencies, reserve tranche positions, and outstanding credit and loans at April 30, 2017

(In millions of SDRs)

General Resource AccountOutstanding credit and loans
IMF’s holdings of currencies1Reserve tranche positionGRASDA3Total4
MemberQuotaTotalPercentage of quotaAmountPercentage2
(A)+(B)= (C)
Afghanistan, Islamic Republic of323.8323.699.90.2
Albania139.3409.7294.126.0296.40.61296.4
Algeria1,959.91,771.890.4188.1
Angola740.1626.684.7113.6
Antigua and Barbuda20.036.8184.00.116.90.0316.9
Argentina3,187.32,919.691.6267.7
Armenia, Republic of128.8306.8238.2178.00.37178.0
Australia6,572.46,503.899.069.0
Austria3,932.03,535.789.9396.3
Azerbaijan, Republic of391.7333.985.257.8
Bahamas, The182.4163.189.419.3
Bahrain, Kingdom of395.0258.865.5136.2
Bangladesh1,066.6932.687.4134.0
Barbados94.582.086.812.6
Belarus, Republic of681.5681.5100.0**
Belgium6,410.76,170.796.3240.0
Belize26.720.576.86.2
Benin123.8105.985.517.9
Bhutan20.415.977.94.5
Bolivia240.1214.189.226.0
Bosnia and Herzegovina265.2640.3241.40.1375.20.78375.2
Botswana197.2163.482.933.8
Brazil11,042.010,166.692.1875.5
Brunei Darussalam301.3266.388.435.2
Bulgaria896.3798.289.198.1
Burkina Faso120.497.681.122.8
Burundi154.0134.387.219.7
Cabo Verde11.210.896.40.4
Cambodia175.0153.187.521.9
Cameroon276.0275.099.61.0
Canada11,023.910,048.891.2975.2
Central African Republic111.4110.999.60.5
Chad140.2137.197.83.2
Chile1,744.31,705.597.838.8
China, People’s Republic of30,482.925,784.284.64,698.8
Colombia2,044.52,005.498.139.1
Comoros, Union of the17.815.084.32.8
Congo, Democratic Republic of the1,066.01,066.0100.0
Congo, Republic of84.684.099.30.6
Costa Rica369.4298.180.771.3
Côte d’Ivoire650.4614.494.582.446.50.1046.5
Croatia, Republic of717.4717.2100.00.2
Cyprus303.81,010.8332.785.1792.01.64792.0
Czech Republic2,180.21,838.384.3341.9
Denmark3,439.43,373.598.165.9
Djibouti31.826.784.05.1
Dominica11.511.5100.0**
Dominican Republic477.4412.886.564.6
Ecuador697.7930.8133.428.5261.60.54261.6
Egypt, Arab Republic of2,037.13,733.8183.3273.41,970.14.081,970.1
El Salvador287.2287.2100.0
Equatorial Guinea, Republic of157.5152.696.94.9
Eritrea, The State of15.915.9100.0**
Estonia, Republic of243.6202.082.941.6
Ethiopia, The Federal Democratic Republic of300.7293.397.57.5
Fiji, Republic of98.474.675.823.8
Finland2,410.62,144.689.0266.0
France20,155.117,982.089.22,173.1
Gabon216.0199.492.316.7
Gambia, The62.252.985.09.3
Georgia210.4290.4138.0**80.00.1780.0
Germany26,634.423,799.689.42,834.9
Ghana738.0645.687.592.5
Greece2,428.911,847.4487.8572.89,991.320.699,991.3
Grenada16.415.292.71.2
Guatemala428.6374.087.354.6
Guinea214.2187.487.526.9
Guinea-Bissau28.424.586.33.9
Guyana181.8181.8100.0
Haiti163.8143.387.520.5
Honduras249.8211.184.538.7
Hungary1,940.01,640.884.6299.2
Iceland321.8252.078.369.8
India13,114.411,403.987.01,710.6
Indonesia4,648.43,860.683.1787.8
Iran, Islamic Republic of3,567.13,049.785.5517.5
Iraq1,663.83,175.2190.8290.01,801.33.731,801.3
Ireland3,449.96,416.0186.0806.83,772.87.813,772.8
Israel1,920.91,888.898.332.2
Italy15,070.014,070.393.4999.9
Jamaica382.9914.3238.827.4558.71.16558.7
Japan30,820.527,224.988.33,596.1
Jordan343.11,417.2413.10.41,074.52.221,074.5
Kazakhstan, Republic of1,158.4960.282.9198.2
Kenya542.8529.597.513.4
Kiribati11.29.887.51.4
Korea, Republic of8,582.77,889.291.9693.5
Kosovo82.6215.9261.420.1153.40.32153.4
Kuwait1,933.51,778.292.0155.5
Kyrgyz Republic177.6177.6100.00.1
Lao People’s Democratic Republic105.892.687.513.2
Latvia, Republic of332.3332.3100.00.1
Lebanon633.5507.080.0126.5
Lesotho, Kingdom of69.857.281.912.6
Liberia258.4226.187.532.3
Libya1,573.21,165.074.1408.2
Lithuania, Republic of441.6441.6100.0**
Luxembourg1,321.81,171.788.6150.1
Macedonia, former Yugoslav Republic of140.3140.3100.0**
Madagascar, Republic of244.4213.887.530.6
Malawi138.8136.498.32.4
Malaysia3,633.83,110.685.6523.2
Maldives21.216.477.44.8
Mali186.6153.382.233.3
Malta168.3139.582.928.9
Marshall Islands, Republic of the3.53.5100.0**
Mauritania, Islamic Republic of128.8112.687.416.2
Mauritius142.2117.182.325.2
Mexico8,912.78,018.290.0894.6
Micronesia, Federated States of5.15.1100.0**
Moldova, Republic of172.5311.7180.7**139.20.29139.2
Mongolia72.366.992.55.4
Montenegro60.545.775.514.9
Morocco894.4747.483.6147.0
Mozambique, Republic of227.2198.887.528.4
Myanmar516.8516.8100.0
Namibia191.1191.099.90.1
Nauru2.82.175.00.7
Nepal156.9140.989.816.0
Netherlands, Kingdom of the8,736.58,260.594.6476.0
New Zealand1,252.11,122.689.7129.6
Nicaragua260.0227.587.532.5
Niger131.6106.580.925.1
Nigeria2,454.52,279.192.9175.5
Norway3,754.73,524.893.9229.9
Oman544.4448.782.495.7
Pakistan2,031.06,423.9316.30.14,393.09.104,393.0
Palau, Republic of3.13.1100.0**
Panama376.8322.485.654.4
Papua New Guinea131.6131.299.70.5
Paraguay201.4154.676.846.9
Peru1,334.51,304.297.730.4
Philippines2,042.91,773.586.8269.5
Poland, Republic of4,095.43,865.894.4229.6
Portugal2,060.113,065.5634.2465.611,471.023.7511,471.0
Qatar735.1563.776.7171.4
Romania1,811.41,811.4100.0
Russian Federation12,903.711,425.388.51,478.5
Rwanda160.2140.287.520.0
St. Kitts and Nevis12.511.592.01.0
St. Lucia21.419.993.01.5
St. Vincent and the Grenadines11.713.3113.70.52.1**2.1
Samoa16.214.488.91.8
San Marino, Republic of49.237.075.212.2
São Tomé and Príncipe, Democratic Republic of14.814.8100.0**
Saudi Arabia9,992.69,536.995.4455.7
Senegal323.6281.386.942.3
Serbia, Republic of654.8608.092.946.8
Seychelles22.950.0218.33.530.60.0630.6
Sierra Leone207.4207.4100.0**
Singapore3,891.93,314.085.2578.0
Slovak Republic1,001.0847.684.7153.4
Slovenia, Republic of586.5483.282.4103.4
Solomon Islands20.817.785.13.2
Somalia44.2140.5317.996.20.208.8111.5
South Africa3,051.22,630.786.2420.5
South Sudan, Republic of246.0246.0100.0
Spain9,535.58,736.691.6798.9
Sri Lanka578.8805.2139.147.9274.20.57274.2
Sudan169.7325.7191.9**156.00.32215.2
Suriname128.9177.7137.99.258.00.1258.0
Swaziland, Kingdom of78.571.991.66.6
Sweden4,430.04,348.898.281.2
Switzerland5,771.15,758.099.813.1
Syrian Arab Republic293.6293.6100.0**
Tajikistan, Republic of174.0174.0100.0**
Tanzania, United Republic of397.8338.185.059.7
Thailand3,211.92,751.585.7460.4
Timor-Leste, Democratic Republic of25.621.383.24.4
Togo146.8127.987.118.9
Tonga13.810.475.43.4
Trinidad and Tobago469.8384.181.885.7
Tunisia545.21,575.9289.0121.21,151.92.381,151.9
Turkey4,658.64,545.897.6112.8
Turkmenistan238.6197.882.940.9
Tuvalu2.51.976.00.6
Uganda361.0361.0100.0**
Ukraine2,011.811,162.7554.9**9,150.918.959,150.9
United Arab Emirates2,311.21,918.483.0393.3
United Kingdom20,155.116,470.681.73,684.8
United States82,994.275,335.490.87,665.2
Uruguay429.1354.982.774.2
Uzbekistan, Republic of551.2551.2100.0**
Vanuatu23.828.1118.14.28.50.028.5
Venezuela, República Bolivariana de3,722.73,134.984.2587.8
Vietnam1,153.11,153.1100.0**
Yemen, Republic of487.0487.0100.0**
Zambia978.2978.2100.0**
Zimbabwe706.8706.5100.00.3
Total475,383.0475,140.448,554.448,300.4100.008.848,374.9
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 the Structural Adjustment Facility previously financed by the SDA.

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

Less than SDR 50,000 or 0.005 percent.

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 the Structural Adjustment Facility previously financed by the SDA.

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

Less than SDR 50,000 or 0.005 percent.

Schedule 2: Financial resources and liquidity position in the General Resources Account at April 30, 2017, and 2016

(In millions of SDRs)

20172016
Usable resources
Usable currencies359,434360,036
SDR holdings28,25631,842
Available resources under borrowing arrangements13,60638,441
Total usable resources2391,296430,319
Less: Undrawn balances under GRA arrangements102,27777,592
Equals: Uncommitted usable resources289,019352,727
Plus: Repurchases one-year forward33,0142,236
Less: Repayments of borrowing one-year forward42,2032,770
Less: Prudential balance579,92579,613
Equals: One-year forward commitment capacity (FCC)6209,905272,580
Memorandum items
Resources committed under borrowing arrangements
GAB/NAB7180,573180,573
Bilateral borrowing agreements259,006280,817
Quotas of members that finance IMF transactions399,626398,067
Liquid liabilities
Reserve tranche positions48,55445,967
Outstanding borrowings29,14931,671

The available resources under borrowing arrangements represent NAB financing from prior activation periods not yet drawn.

Usable resources consist of (i) 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, (ii) SDR holdings, and (iii) any unused amounts under credit lines that have been activated.

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

Repayments of borrowings falling due during the coming 12-month period.

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 bilateral commitments from members to boost the IMF’s resources. These resources will be counted toward the FCC only once (i) individual bilateral agreements are effective and (ii) the associated resources are available for use by the IMF in accordance with the 2016 borrowing framework.

Outstanding drawings and commitments under the NAB and GAB cannot exceed SDR 180.6 billion.

The available resources under borrowing arrangements represent NAB financing from prior activation periods not yet drawn.

Usable resources consist of (i) 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, (ii) SDR holdings, and (iii) any unused amounts under credit lines that have been activated.

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

Repayments of borrowings falling due during the coming 12-month period.

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 bilateral commitments from members to boost the IMF’s resources. These resources will be counted toward the FCC only once (i) individual bilateral agreements are effective and (ii) the associated resources are available for use by the IMF in accordance with the 2016 borrowing framework.

Outstanding drawings and commitments under the NAB and GAB cannot exceed SDR 180.6 billion.

Schedule 3: Status of arrangements in the General Resources Account at April 30, 2017

(In millions of SDRs)

MemberDate of arrangementExpirationTotal amount agreedUndrawn balance
Stand-By Arrangements (SBA)
HondurasDecember 3, 2014December 2, 20177878
IraqJuly 7, 2016July 6, 20193,8312,921
JamaicaNovember 11, 2016November 10, 20191,1951,195
KenyaMarch 14, 2016March 13, 2018709709
KosovoJuly 29, 2015August 4, 201714812
Serbia, Republic ofFebruary 23, 2015February 22, 2018935935
Total Stand-By Arrangements6,8965,851
Extended Fund Facility (EFF)
Armenia, Republic ofMarch 7, 2014August 31, 20178216
Bosnia and HerzegovinaSeptember 7, 2016September 6, 2019443380
Côte d’IvoireDecember 12, 2016December 11, 2019325279
Egypt, Arab Republic ofNovember 11, 2016November 10, 20198,5976,627
GeorgiaApril 12, 2017April 11, 2020210210
JordanAugust 24, 2016August 23, 2019515463
Moldova, Republic ofNovember 7, 2016November 6, 20198659
SeychellesJune 4, 2014June 3, 2017112
Sri LankaJune 3, 2016June 2, 20191,071831
TunisiaMay 20, 2016May 19, 20202,0461,818
UkraineMarch 11, 2015March 10, 201912,3486,170
Total Extended Arrangements25,73416,853
Precautionary and Liquidity Line (PLL)
MoroccoJuly 22, 2016July 21, 20182,5042,504
Total Precautionary and Liquidity Line2,5042,504
Flexible Credit Line (FCL)
ColombiaJune 13, 2016June 12, 20188,1808,180
MexicoMay 27, 2016May 26, 201862,38962,389
Poland, Republic ofJanuary 13, 2017January 12, 20196,5006,500
Total Flexible Credit Line77,06977,069
Total General Resources Account112,203102,277
Components may not sum exactly to totals because of rounding.
Components may not sum exactly to totals because of rounding.

Schedule 4: Schedule of borrowings in the General Resources Account at April 30, 2017, and 20161

(In millions of SDRs)

Outstanding borrowings
Member, Central BankCommitment amounts20172016
NAB commitments
Australia2,220378393
Austria1,818307328
Belgium3,994568720
Brazil4,441757800
Canada3,874624699
Banco Central de Chile691118125
China15,8602,3722,363
Cyprus3403131
Danmarks Nationalbank1,630231288
Deutsche Bundesbank12,8901,9922,322
Finland1,134192200
France9,4791,4491,695
Hong Kong Monetary Authority3405130
India4,441611801
Bank of Israel3405845
Italy6,8999781,243
Japan33,5095,1034,981
Korea3,345570591
Kuwait3415051
Luxembourg4938489
Malaysia3405151
Mexico2,538432448
Netherlands4,595651828
New Zealand3405856
Norway1,967303347
Bangko Sentral ng Pilipinas3405830
National Bank of Poland1,285217228
Banco de Portugal784
Russian Federation4,441751800
Saudi Arabia5,653956998
Singapore649110118
South Africa3405830
Spain3,405428613
Sveriges Riksbank2,256321390
Swiss National Bank5,541937978
Thailand3405852
United Kingdom9,4791,3421,672
United States28,2025,8956,225
180,57329,14931,659
2009 Borrowing Agreements2
Czech National Bank6
Central Bank of Malta1
Slovak Republic3
Bank of Slovenia2
Total29,14931,671
Components may not sum exactly to totals because of rounding.

The IMF may borrow under the NAB, the GAB, and the associated agreement with Saudi Arabia, none of which had been activated at April 30, 2017. Members have also entered into bilateral borrowing agreements with the IMF to boost its resources. The resources under these agreements serve as a third line of defense to the IMF’s quota and NAB resources. At April 30, 2017, bilateral agreements totaling US$355 billion (SDR 259 billion) with the following lenders were signed and effective: Bank of Algeria, Australia, Oesterreichische Nationalbank, Banco Central do Brasil, Government of Brunei Darussalam, Canada, Central Bank of Chile, People’s Bank of China, Czech National Bank, Danmarks Nationalbank, Bank of Finland, Government of France, Deutsche Bundesbank, Reserve Bank of India, Government of Japan, Korea, Government of Luxembourg, Bank Negara Malaysia, Banco de Mexico, New Zealand, Central Reserve Bank of Peru, Bangko Sentral ng Pilipinas, Narodowy Bank Polski, Saudi Arabia, Monetary Authority of Singapore, Slovak Republic, Bank of Slovenia, South African Reserve Bank, Kingdom of Spain, Sveriges Riksbank, Bank of Thailand, Central Bank of the Republic of Turkey, and United Kingdom.

The 2009 agreements have expired and all outstanding borrowings were fully repaid at April 30, 2017.

Components may not sum exactly to totals because of rounding.

The IMF may borrow under the NAB, the GAB, and the associated agreement with Saudi Arabia, none of which had been activated at April 30, 2017. Members have also entered into bilateral borrowing agreements with the IMF to boost its resources. The resources under these agreements serve as a third line of defense to the IMF’s quota and NAB resources. At April 30, 2017, bilateral agreements totaling US$355 billion (SDR 259 billion) with the following lenders were signed and effective: Bank of Algeria, Australia, Oesterreichische Nationalbank, Banco Central do Brasil, Government of Brunei Darussalam, Canada, Central Bank of Chile, People’s Bank of China, Czech National Bank, Danmarks Nationalbank, Bank of Finland, Government of France, Deutsche Bundesbank, Reserve Bank of India, Government of Japan, Korea, Government of Luxembourg, Bank Negara Malaysia, Banco de Mexico, New Zealand, Central Reserve Bank of Peru, Bangko Sentral ng Pilipinas, Narodowy Bank Polski, Saudi Arabia, Monetary Authority of Singapore, Slovak Republic, Bank of Slovenia, South African Reserve Bank, Kingdom of Spain, Sveriges Riksbank, Bank of Thailand, Central Bank of the Republic of Turkey, and United Kingdom.

The 2009 agreements have expired and all outstanding borrowings were fully repaid at April 30, 2017.

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