Policy Papers
2024
September 13, 2024
Renewal of And Modifications To The New Arrangements To Borrow
Description: The Fund’s decision on the New Arrangements to Borrow (the “NAB Decision”) is subject to renewals not later than 12 months before the end of each NAB period. The current NAB period became effective on January 1, 2021 and is set to expire on December 31, 2025. Pursuant to paragraph 19(b) of the NAB Decision, the Executive Board is to take a decision on the renewal no later than twelve months before the end of the current NAB period, i.e., by December 31, 2024. Once a decision on renewal is taken, the new NAB period would become effective on January 1, 2026. Modifications of the NAB Decision may also be made at the time of renewal. This paper presents, for Executive Board approval, a proposal for the renewal of the NAB Decision for five years until end-2030, along with proposals for targeted modifications to the NAB Decision.
August 28, 2024
OIA Report on Progress Assessment of the Implementation of the Recommendations of the Institutional Safeguards Review
Description: This paper, prepared by the Fund’s Office of Internal Audit’s (OIA) in July 2024, provides the results of its independent assessment of the implementation progress on the Institutional Safeguards Review (ISR) actions.
August 9, 2024
FY2024—Budget Outturn
Description: The paper presents highlights from the FY 2024 budget, followed by a discussion of outputs based on the Fund Thematic Categories and of inputs.
August 5, 2024
Supplement to 2018 Guidance Note on the Bank-Fund Debt Sustainability Framework for Low Income Countries
Description: This Supplement provides additional guidance to IMF and World Bank staff on the implementation of the Bank-Fund Debt Sustainability Framework for Low Income Countries (LIC-DSF) approved in 2017 by the IMF and World Bank Boards. It complements the 2018 Bank-Fund Guidance Note on the LIC-DSF. Since the publication of the 2018 Guidance Note, several issues have increased in significance, requiring more tailored guidance on the implementation of the LIC-DSF to address these issues, including: • Greater prominence of risks from climate change. • Further increase in borrowing on commercial terms and in domestic markets. • Increased number and complexity of debt restructurings. This Supplement to the 2018 Guidance Note on the LIC-DSF provides further guidance on how to address these issues within the current framework. All aspects of the 2018 LIC-DSF Guidance Note remain in effect, except as modified in this Supplement.
Notes: Guidance Note on the Bank-Fund Debt Sustainability Framework for Low Income Countries
August 5, 2024
Debt for Development Swaps: An Approach Framework
Description: The aim of this note is to help stakeholders optimize their decision-making on when, where, and how to use debt-for-development swaps (“debt swaps”), ensuring they bring the intended benefits to all parties involved. It also proposes new approaches to structure these mechanisms, making them less transaction-heavy and more sustainable while maintaining accountability for fulfilling policy and spending commitments. Debt swaps are agreements between a government and one or more of its creditors to replace existing sovereign debt with one or more liabilities1 that include a spending commitment towards a specific development goal. These goals may include nature conservation, climate action, education, nutrition, support for refugees, among others. The spending commitment is often associated with the country's decision to pursue an important development policy.
August 2, 2024
2024 Revised Basel Core Principles for Effective Banking Supervision
Description: The Basel Committee on Banking Supervision (BCBS) recently revised the Basel Core Principles for Effective Banking Supervision (BCP). The BCP are the de facto minimum standards for the sound prudential regulation and supervision of banks and banking systems and are universally applicable. This comprehensive update, the first since 2012, reflects the evolving financial landscape and incorporates feedback from a wide range of stakeholders including BCBS members, nonmember countries, the IMF, and the WBG. After extensive consultation, the revised BCP were approved by the BCBS in February 2024, and endorsed by the International Conference of Banking Supervisors in April 2024. The revised BCP document is a response to regulatory developments and structural changes within the banking industry over the last decade. It addresses the lessons learned over the last 10 years, including from the pandemic and the March 2023 banking turmoil; key findings from assessments under the Financial Sector Assessment Program (FSAP); and new challenges posed by ongoing structural transformations, notably digitalization and climate change. The revisions emphasize the importance of operational resilience, systemic risk management, and the adoption of a proportional approach to supervision, catering to the global diversity of banks and banking system.
July 29, 2024
Key Trends In Implementing The Fund's Transparency Policy
Description: At the time of the 2005 Review of the Fund’s Transparency Policy, the Executive Board requested regular updates on trends in implementing the transparency policy. This report provides an overview of recent developments, reflecting information on documents considered by the Board in 2022 and updating the previous annual report on Key Trends. Deeper analysis of these trends is undertaken in the context of periodic reviews of the Fund’s Transparency Policy.
July 25, 2024
List Of IMF Member Countries With Delays In Completion Of Article Iv Consultations Or Mandatory Financial Stability Assessments Over 18 Months
Description: In line with the framework for addressing excessive delays in the completion of Article IV consultations, the following table lists the IMF members for whom the Article IV consultation has been delayed by more than 18 months as of June 15, 2024.
July 25, 2024
2024 Staff Guidance Note On The IMF’s Engagement With Small Developing States
Description: This guidance note provides operational guidance on the Fund’s engagement with small developing states (SDS). It highlights the unique economic characteristics and constraints facing SDS, notably in a more shock-prone world. Building on advice that applies to the full membership, the note explains how the characteristics of SDS shape Fund surveillance, financial support and program design, capacity development (CD), and collaboration with other institutions and donors. The note updates the previous version that was published in December 2017.
July 17, 2024
Targeted Modification Of Streamlined Procedures For Approval Of Successor Flexible Credit Line And Precautionary And Liquidity Line Arrangements
Description: The 2023 Review of the Flexible Credit Line (FCL), the Short-Term Liquidity Line (SLL), and the Precautionary and Liquidity Line (PLL) introduced a welcome streamlining of procedures. This included dropping the requirement for an informal consultation with the Executive Board for the approval of successor FCL and PLL arrangements when certain requirements were met. In implementing the new procedures, however, staff observed that, inadvertently, one requirement is at odds with the well-established practice for consecutive FCL and PLL arrangements. It is normal practice to cancel an existing arrangement shortly before expiration, while simultaneously requesting a successor arrangement to ensure seamless back-to-back arrangements. But an unintended consequence of the drafting of the new procedures is that an informal consultation with the Executive Board can be waived only when an arrangement expires—not if it were to be canceled shortly before expiration to ensure seamless back-to-back arrangements—even if all the other requirements for dropping such consultation are satisfied. This unduly constrains the reform and is at odds with the intention presented in the 2023 Review. To rectify the issue, staff proposes the adoption of a decision with a targeted modification of the FCL and PLL decisions.