Policy Papers
2010
March 26, 2010
The Fund’s Mandate—Future Financing Role
Description:
Motivation and approach. Last year’s major reforms of the Fund’s lending instruments, together with the commitment to treble its resources, made a significant contribution to global stabilization as Fund lending created room for policy accommodation and helped countries weather the worst of the crisis. While these reforms have yielded positive results, it is appropriate to ask—as the IMFC has—whether there is scope to build on this experience. This paper tries to answer this question, including by drawing on the lessons of the crisis, as perceived by policymakers, market participants, and academic observers, with whom Fund staff has consulted extensively.
While every effort has been made to explore the pros and cons of various reform options neutrally, some options are clearly more evolutionary (e.g., those building on last year’s headline introduction of the Flexible Credit Line or FCL), while others are of a more radical nature (e.g., Fund provision of pure insurance payouts or collateralized lending). This paper focuses on the former, covering the latter set of ideas in a supplement. Once the Executive Board has had a chance to comment on all options, a more defined and specific set of proposals could be developed by staff for further consideration.
March 25, 2010
Proposed Decision to Modify the New Arrangements to Borrow
Description: This paper sets forth a proposal for an expanded and more flexible NAB. The proposal was developed in close consultation with current and potential participants in the NAB, including through meetings of current and potential participants in April, July, and November 2009 in Washington, D.C. under the chairmanship of Japan.
March 24, 2010
Staff Guidance Note on the Use of Fund Resources for Budget Support
Description: This note provides operational guidance and background information on the use of Fund resources for budgetary financing. It does this in the context of concerns expressed by some Executive Board Directors that, by providing such financing, the Fund might be held accountable for the quality of budgetary spending; that repayment could be subject to country budgetary processes; and that budget financing is the role of other institutions.
March 22, 2010
Borrowing Agreement with the Swedish Riksbank
Description: In light of the multilateral effort to ensure the adequacy of the financial resources available to the International Monetary Fund (the “Fund”), and with a view to supporting the Fund’s ability to provide timely and effective balance of payments assistance to its members, the Swedish Riksbank (“Riksbank”) agrees to lend to the Fund an SDRdenominated amount up to the equivalent of EUR 2.47 billion, on the terms and conditions set out in this paper.
March 19, 2010
Financial Sector Surveillance and the Mandate of the Fund
Description:
Financial sector issues and policies are central to the Fund’s surveillance mission, as the recent crisis has amply demonstrated, and the institution has placed a high priority on enhancing the coverage and depth of analysis of financial sector issues in surveillance. Achieving this goal requires far-reaching operational and resource adjustments, which are already underway. However, these alone may not be enough. Changes in the Fund’s mandate and modalities of surveillance may also be needed.
A key goal of these changes should be to strengthen multilateral surveillance. New analytical tools and effective forms of engagement at the global level are crucial for financial surveillance, given an increasingly interconnected and globalized international financial system. At the same time, financial surveillance at the country level should also be strengthened and become a central part of the Article IV consultation process.
March 18, 2010
Guidance Note on the Implementation of Post-Program Monitoring
Description: The Executive Board has agreed that post-program monitoring (PPM), with formal involvement of the Board, could be useful in certain cases. Specifically, the Board has decided that when a member’s outstanding credit from the General Resources Account (GRA) of the Fund, or from the Fund as Trustee of the Poverty Reduction and Growth Trust (PRGT), or a combination thereof, exceeds a threshold of 200 percent of quota, and the member no longer has an arrangement or is not implementing a staff-monitored program with reports issued to the Board, there should be a presumption that the member will engage in PPM with the Fund of economic developments and policies after the expiration of the arrangement.
March 15, 2010
Borrowing Agreement with the Czech National Bank
Description: In light of the multilateral effort to ensure the adequacy of the financial resources available to the International Monetary Fund (the “Fund”), and with a view to supporting the Fund’s ability to provide timely and effective balance of payments assistance to its members, the Czech National Bank agrees to lend to the Fund an SDR-denominated amount up to the equivalent of EUR 1.03 billion, on the terms and conditions set out in this paper.
March 12, 2010
Guidance Note on the Fund’s Transparency Policy
Description:
This note provides guidance to staff on how to implement the Fund’s Transparency Policy, incorporating the revisions to the Transparency and Archives Policies agreed by IMF’s Executive Board on December 17, 2009 (effective March 17, 2010). It focuses on the publication of country papers and policy documents that have been prepared for Board consideration (“Board papers”).
The Fund’s approach to transparency is guided by the overarching principle in the preamble to the revised Transparency Decision. This overarching principle is also meant to guide practice in areas not covered by any explicit policy or where existing policies are unclear:
The Fund will strive to disclose documents and information on a timely basis unless strong and specific reasons argue against such disclosure, with this principle respecting and being applied to ensure the voluntary nature of publication of documents that pertain to member countries.
March 12, 2010
Fourteenth General Review of Quotas - The Size of the Fund - Initial Considerations
Description: Against the background of the global crisis and emerging lessons, the IMFC has called for concluding the 14th General Review of Quotas by January 2011. In framing the review, the IMFC has also emphasized that the Fund is and should remain a quota-based institution, notwithstanding the large increase in its borrowed resources to meet lending needs in the global economic crisis. As part of the quota review as well as the work on the Fund’s mandate, this paper considers both the appropriate size of the Fund’s resource base and its composition. It indicates a relatively wide range of quota increases, broadly centered on a doubling of quota resources.
March 11, 2010
Borrowing Agreement with the Bank of Finland
Description: In light of the multilateral effort to ensure the adequacy of the financial resources available to the International Monetary Fund (the “Fund”), and with a view to supporting the Fund’s ability to provide timely and effective balance of payments assistance to its members, the Bank of Finland agrees to lend to the Fund an SDR-denominated amount up to the equivalent of EUR 1.3 billion, on the terms and conditions set out below.