Policy Papers
2009
January 16, 2009
Integrating Financial Sector Issues and FSAP Assessments into Surveillance - Progress Report
Description:
Improving the quality of the Fund’s financial sector analysis and integrating it with surveillance is a major undertaking that involves action on several fronts. The 2007 Financial Sector Taskforce Report (“Taskforce Report”) provided a comprehensive assessment of the status of financial sector analysis in the Fund and established a broad organizing framework on how to integrate better finance into Article IV surveillance.
The 2008 Triennial Surveillance Review (TSR) and supplements developed this theme further, and the Board’s ensuing Statement on Surveillance Priorities made the integration of macroeconomic and financial sector surveillance one of the four overarching operational priorities for Fund surveillance.
January 12, 2009
Review of the Adequacy of and Options for Supplementing Fund Resources
Description: This review discusses the potential scale of a possible increase, as well as modalities that would facilitate a prompt increase in the Fund’s resources should the need for additional resources be agreed. While a permanent increase in Fund resources has traditionally been achieved through an increase in quotas, borrowing has often been used to bridge to a general quota increase given the substantial time involved in the latter undertaking. At a time of crisis, the case for such an approach is even stronger. The precise design and scope of any such borrowing would need to be considered in consultation with potential creditors, and with careful attention to the broader implications for the Fund’s finances.
2008
December 29, 2008
Fiscal Policy for the Crisis
Description: The current crisis calls for two main sets of policy measures. First, measures to repair the financial system. Second, measures to increase demand and restore confidence. While some of these measures overlap, the focus of this note is on the second set of policies, and more specifically, given the limited room for monetary policy, on fiscal policy.
December 23, 2008
Safeguards Assessments-2008 Update
Description: Safeguards Activities. In the year to June 30, 2008, 10 safeguards assessments were conducted bringing the total number of assessments completed since 2000 to 122. At year-end, 72 central banks were subject to ongoing safeguards monitoring. Assessment activity has also included several recent high-profile cases of misreporting or misuse, along with intensive analysis of special audit reports initiated in such cases. In the latter part of 2008, staff developed modalities for expedited safeguards assessments under the Emergency Financing Mechanism.
December 15, 2008
Mauritius - Assessment Letter for the World Bank
Description: Assessment Letters or Statements may be prepared for member countries with Fund-supported programs; receiving Fund emergency assistance; with staff-monitored programs; or surveillance-only cases. They are typically produced for use by the country with multilateral or bilateral donors or creditors, in particular the World Bank and other International Financial Institutions.
December 12, 2008
Charges and Maturities-Proposals for Reform
Description:
This paper focuses on two key features of the financial terms and maturities of high access to the Fund’s General Resources Account (GRA): surcharges and time-based repurchase expectations. Surcharges, which together with the adjusted rate of charge determine the cost of high access to Fund credit, currently vary across facilities and are linked to either the level of access or the duration of lending. The policy on repurchase expectations is an administrative mechanism that encourages accelerated repayment terms, effectively shortening loan maturities. Both policies on surcharges and repurchase expectations were introduced to mitigate credit risks and safeguard the revolving nature of Fund resources.
Charges and Maturities and Proposals for Reform, Supplement 1
Charges and Maturities and Proposals for Reform, Supplement 2
December 5, 2008
The Fund's Income Position for FY 2009-Midyear Review
Description: This paper reviews the outlook for the Fund’s income position for the financial year 2009 taking into account developments through the first half of the year. The FY 2009 income outlook has improved, mainly as a result of new lending activity associated with the turmoil in global financial markets, together, to a lesser extent, with stronger-than-projected returns in the Investment Account (IA) in the first half of the financial year. The updated projections indicate that the net income position would be slightly positive in FY 2009. However, the actual outcome remains subject to considerable uncertainty related to the timing and amounts of disbursements under current arrangements, as well as potential new arrangements and the performance of the IA
November 24, 2008
Statement by the Managing Director on the Work Program of the Executive Board - Executive Board Meeting, November 24, 2008
Description: The global economy is going through a period of unprecedented financial instability. The Fund has been asked by the IMFC to play a leading role in helping the membership both to deal with the immediate crisis and work towards a new strengthened global architecture. These tasks are well within our mandate. Addressing these challenges—and doing so within a compressed timeframe—will require strict prioritization on three key areas: (i) providing policy advice and timely financial support that meets members’ needs; (ii) understanding what went wrong; (iii) and assembling the building blocks of a new international financial architecture.
November 19, 2008
Seventh Review of the Fund's Data Standards Initiatives
Description: Studies of the financial crises in the 1990s concluded that, at least in part, they derived from data deficiencies. Following the Mexican crisis of 1994, intensive work was undertaken on developing a range of standards and codes, and data standards were among the most critical. The Special Data Dissemination Standard (SDDS) was initiated in 1996 covering key macroeconomic datasets. The SDDS has led to improvements in the macroeconomic datasets that it encompasses, much greater public awareness of data and enhanced macroeconomic basis for policy makers. Thus, the SDDS benefits subscribing countries and has facilitated international surveillance and analysis by capital markets. Sixty-four countries now subscribe to the SDDS.
October 27, 2008
A New Facility for Market Access Countries--The Short-Term Liquidity Facility - proposed decision
Description: This supplement sets forth the proposed decision that is needed to establish the Short-Term Liquidity Facility (“SLF”) proposed in the main paper. It also summarizes key aspects and implications of this decision, and reviews the applicability to the SLF of other Fund policies.