Policy Papers
2009
September 2, 2009
Statement of Surveillance Priorities-Revisions of Economic Priorities and Progress on Operational Priorities
Description: This paper recommends changes to the economic priorities of the Statement of Surveillance Priorities (SSP) and provides an update on actions taken towards implementing the operational priorities.
September 1, 2009
Borrowing Agreement with the Government of the United Kingdom
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 Government of the United Kingdom, acting through Her Majesty's Treasury, agrees to lend to the Fund up to the equivalent of SDR 9.92 billion.
August 28, 2009
Financial Sector Assessment Program After Ten Years-Experience and Reforms for the Next Decade
Description:
Ten years after its inception, the FSAP has established itself as an important instrument for assessing financial systems around the world. More than three-quarters of the membership have volunteered for FSAP assessments or agreed to do so in the near future, including almost all the G20 countries. Previous reviews have confirmed that the FSAP has helped deepen the understanding of countries’ financial sectors and linkages with the rest of the economy, enriched the policy dialogue, and ensured consistency of Bank and the Fund advice, the last being a feature highly valued by participating countries. As also noted in the Malan Report, the collaborative nature of the FSAP adds value by effectively addressing areas of financial sector policy where developmental and stability concerns are interlinked and overlap and by facilitating knowledge spillovers between the two institutions. These past reviews have noted, however, the need to make the FSAP more flexible, responsive, and continuous, to deepen and strengthen the analytical toolkit, and to integrate the FSAP more closely with the Bank’s and the Fund’s other financial sector work.
The Financial Sector Assessment Program After Ten Years: Background Material
August 28, 2009
Financial Sector and Bilateral Surveillance - Toward Further Integration
Description: The Fund has continued to make great efforts to enhance financial sector focus and analytics in bilateral surveillance. The main initiatives include enhancing collaboration with other multilateral institutions, improving analytical tools and methodologies, and a major strengthening of the financial sector capabilities in area departments. The fruits of these efforts are already visible in the better treatment of financial sector issues in Article IV reports
August 28, 2009
Revised Approach to Financial Regulation and Supervision Standards Assessments in FSAP Updates
Description: The Financial Sector Assessment Program (FSAP) is a central instrument for the Fund and Bank to promote financial sector soundness in member countries. The FSAP uses quantitative analysis and qualitative tools to help identify the risks and vulnerabilities of a country’s financial system, ascertain the sector’s developmental needs, and prioritize policy responses. Detailed assessments of the observance of relevant financial sector standards and codes, and the associated Reports on Observance of Standards and Codes (ROSCs) have been an important component of the FSAP.
August 28, 2009
Guidance Note for Fund Staff on the Treatment and Use of SDR Allocations
Description: Against the backdrop of the global financial crisis, the IMF has decided to implement a US$250 billion general allocation of special drawing rights (SDRs). In addition, the Fourth Amendment of the Fund’s Articles of Agreement has recently become effective, and will make available to SDR Department participants a special allocation of up to an additional SDR 21.5 billion (US$33 billion). Nearly US$115 billion of these combined allocations will go to emerging market and developing countries, including about US$20 billion to low-income countries (LICs), thereby providing an important boost to the reserves of countries with the greatest needs.
August 27, 2009
Quotas - Updated Calculations and Quota Variables
Description: In its April 2009 Communiqué, the IMFC called for a prompt start to the Fourteenth General Review of Quotas so that it is completed by January 2011--some two years ahead of schedule. The IMFC noted that the review is expected to result in increases in the quota shares of dynamic economies, particularly in the share of emerging market and developing countries as a whole. The IMFC also looked forward to further work by the Executive Board on elements of the new quota formula that can be improved before the formula is used again, and noted that this work should start before the 2009 Annual Meetings.
August 27, 2009
Reduction of Blackout Periods in GRA Arrangements
Description:
In the context of the March 2009 reforms of the General Resources Account (GRA) lending toolkit, the Executive Board asked staff to prepare a paper addressing the problem of blackout periods under GRA arrangements, which interrupt access to accumulated but undrawn purchases. This request arose in the context of the decision to make high-access precautionary arrangements (HAPAs) available to members on a more regular basis (with greater flexibility regarding frontloading of access). Blackout periods have important implications given that the crisis-prevention and confidence-enhancing role of precautionary arrangements (particularly HAPAs) depend on strong assurances that resources will be available if needed.
Section II provides background on the issue of blackout periods and the expanded role of precautionary arrangements under the recent reforms. Section III proposes a solution to provide greater assurances to members regarding continuity of access to accumulated rights while maintaining appropriate safeguards.
August 20, 2009
Debt Limits in Fund-Supported Programs - Proposed New Guidelines - Supplementary Information and Proposed Decision
Description: This supplement summarizes the reforms proposed in IMF (2009a, b)1 to the existing framework governing external debt limits in Fund-supported programs, and presents the proposed decision that is needed to implement these reforms. The supplement is organized as follows: Section II provides a brief commentary on the proposed decision, emphasizing key aspects of the proposed reforms set out in IMF (2009a, b) 1. Section III contains the proposed decision approving the new guidelines on external debt in Fund arrangements. The proposed new guidelines are included in the Attachment to the decision.
August 18, 2009
Review of the IMF's Strategy on Overdue Financial Obligations
Description: This paper reviews progress under the IMF's strengthened cooperative strategy on overdue financial obligations. Total arrears to the Fund declined by SDR 11 million, to SDR 1,327 million, since the last review. While Sudan’s payments in excess of its new obligations falling due to the Fund accounted for the decline, arrears by Somalia and Zimbabwe increased further. The majority of the arrears to the Fund (85 percent) were to the General Resources Account (GRA).