Policy Papers
2010
March 10, 2010
Application of Structural Conditionality - 2009 Annual Report
Description: Annual reports on structural conditionality (ARSCs) are prepared in response to the Board-endorsed recommendations of the IMF Independent Evaluation Office (IEO) Evaluation of Structural Conditionality. The first ARSC was issued to the Board for information in July 2008. It covered Fund arrangements and Policy Support Instruments (PSIs) approved during 1995-2007 and reviews through April 2008. The first ARSC reported that the average numbers of structural conditions were unchanged versus the period prior to the IEO report, that there had been further progress in focusing structural conditionality toward areas of core Fund expertise, and that overall implementation had improved.
March 4, 2010
Côte d'Ivoire-Assessment Letter for the International Financial Community
Description: This letter provides an assessment of recent macroeconomic developments in Côte d'Ivoire and an update on the discussions of Fund staff with the Côte d'Ivoire authorities on macroeconomic policies and structural reforms that could form the basis for the authorities' request for a new arrangement supported by the International Monetary Fund.
March 4, 2010
Fourteenth General Review of Quotas - Realigning Quota Shares - Initial Considerations
Description: Realigning quota shares is central to reform of Fund governance. Dissatisfaction with the distribution of quota and voting shares--in particular the view that they no longer capture the growing role and importance of emerging market and developing countries (EMDCs)--is widely seen as undermining the Fund’s effectiveness and legitimacy. In response, an initial reform was launched in 2006 focused on realigning quota and voting shares. The reform package agreed in early 2008 included a new quota formula, an aggregate shift in quota shares totaling almost 5 percentage points for 54 members (mainly EMDCs), a 2.7 percent increase in voting share of EMDCs as a whole, a tripling of basic votes, and an additional Alternate Executive Director for the largest member constituencies, currently the two Sub-Saharan African chairs. The 2008 reform was seen as a first step and it was agreed that future general quota reviews, beginning with the 14th Review, would aim at further adjustments in quota shares to ensure that they reflect evolving economic weights.
March 3, 2010
Implementation of the Joint Management Action Plan on Bank-Fund Collaboration
Description: This report assesses implementation of the Joint Management Action Plan on Bank-Fund Collaboration (JMAP), discusses the state of Bank-Fund collaboration more generally, and suggests ways to improve collaboration, including with respect to the challenges that have arisen in the context of the recent global economic turmoil. Overall, the report finds that while Bank-Fund collaboration has improved over the past two years, the JMAP has played a supporting rather than a central role in this. Further progress in JMAP implementation and in Bank-Fund collaboration more broadly, appears possible. The report describes a number of actions to be taken by both institutions to move the JMAP and collaboration forward.
March 1, 2010
Ex Post Assessments of Members with a Longer-Term Program Engagement—Revised Guidance Note
Description: This note updates guidance on key operational aspects of the policy on Longer-Term Program Engagement (LTPE) and on procedures for the preparation of Ex Post Assessments (EPAs). In addition to the definitional and procedural changes adopted by the Board on May 15, 2006 at the discussion of the paper on the review of EPAs, this note incorporates decisions taken by the Board on August 31, 2009 on easing work pressures.
March 1, 2010
Ex Post Evaluations of Exceptional Access Arrangements—Revised Guidance Note
Description: In the 2002 Board discussion on Access Policy in Capital Account Crises, Directors agreed to require an ex post evaluation (EPE) by the staff of GRA-supported programs supported by exceptional access within a year after the end of the arrangement. This revised note provides operational guidance on the content and procedures for EPEs. In terms of coverage, the EPE policy encompasses all exceptional access GRA-supported programs, including high-access precautionary arrangements. The policy would exclude programs no longer considered exceptional access under the new access policy because their access limits are within the new normal access limits. While it is generally assumed that an EPE would be tailored to fit individual country circumstances, multiple-country EPEs are also permitted if they are considered feasible in terms of comparability of issues of interest.
February 26, 2010
Government Finance Statistics to Strengthen Fiscal Analysis
Description:
This paper seeks Board approval of a phased migration strategy for implementing the GFSM 2001 as the standard for Fund fiscal data. The financial crisis has underscored the need for better and more comparable fiscal data, including on government assets and liabilities.
In 2005, the Board endorsed the Government Finance Statistics Manual 2001 (GFSM 2001) and asked staff to propose a migration strategy for the Fund, based on lessons to be drawn from conducting pilot studies.
The pilot studies and other tests confirmed that some aspects of the GFSM 2001 methodology (primarily relating to presentation) can be implemented by staff with relatively modest resource needs, while other aspects can proceed meaningfully only after member countries have made sufficient progress in their own fiscal reporting—including in detailed balance sheet breakdowns, and in strengthening underlying accounting systems.
February 22, 2010
Broadening Financial Indicators in the Special Data Dissemination Standard
Description:
In December 2008, the IMF Executive Board discussed the Seventh Review of Data Standards Initiatives, and Directors requested staff to return to the Board within about a year with a proposal for the inclusion of selected financial indicators in the Special Data Dissemination Standard (SDDS). This paper responds to the 2008 request taking into account recent developments.
The recent financial crisis has heightened the need for policymakers, financial regulators and capital market participants to put in place conditions that would help prevent the occurrence of similar crises in the future. One of the areas identified by the international community as key in crises prevention is the availability of timely and more detailed financial data that could provide early warning signals of impending risks and vulnerabilities.
February 12, 2010
Borrowing Agreement with National Bank of Belgium
Description: In light of the multilateral effort to ensure the adequacy of the financial resources available to the International Monetary Fund, and with a view to supporting the Fund’s ability to provide timely and effective balance of payments assistance to its members, the National Bank of Belgium agrees to lend to the Fund an SDR denominated amount up to the equivalent of EUR 4.74 billion, on the terms and conditions set out in this policy paper.
February 12, 2010
Borrowing Agreement with Slovak Republic
Description: In light of the multilateral effort to ensure the adequacy of the financial resources available to the International Monetary Fund, and with a view to supporting the Fund's ability to provide timely and effective balance of payments assistance to its members, the Slovak Republic agrees to lend to the Fund an SDR-denominated amount up to the equivalent of EUR 440 million, on the terms and conditions set in this policy paper.