Policy Papers
2005
April 1, 2005
AFRITACs - Independent Midterm Evaluation - Volume 1-Final Report
Description: The evaluation focus was on three main objectives: Assessing whether the AFRITACs have provided value added to beneficiary countries; Assessing the extent to which the AFRITACs’ objectives have been achieved; and Assessing whether the AFRITACs have enhanced cooperation between stakeholders in their respective regions.
April 1, 2005
Public Investment and Fiscal Policy - Lessons From the Pilot Country Studies
Description: This paper reports on findings from eight pilot country studies on public investment that were carried out during the second half of 2004. The pilot country studies covered a diverse group of countries. Specifically, they included countries in Latin America (Brazil, Chile, Colombia, and Peru), Africa (Ethiopia and Ghana), the Middle East (Jordan), and Asia (India).
March 31, 2005
Safeguards Assessments - Review of Experience
Description: The safeguards assessments policy was introduced in March 2000 to provide reasonable assurance that central banks have adequate financial control systems in place to manage their resources and Fund disbursements. The safeguards policy’s main objective is to minimize the possibility of misreporting or misuse of Fund resources associated with the Fund’s lending activities. Safeguards assessments apply to all member countries that have a Fund arrangement.
March 28, 2005
Operational Framework for Debt Sustainability Assessments in Low-Income Countries - Further Considerations
Description: Building on initial discussions of the proposed framework in February/March 2004, and further considerations in September 2004, this paper responds to remaining concerns that need to be resolved to make the framework operational. These concerns relate to the indicative debt-burden thresholds (Section II); the interaction of the framework with the HIPC Initiative (Section III); and the modalities for Bank-Fund collaboration in deriving a common assessment of sustainability (Section IV). This note should be read in conjunction with the original proposal, which presented the wider issues on the use of the indicative thresholds, the evaluation of policies and institutions, and the need for discretion when assessing sustainability on a forward-looking basis.
March 23, 2005
Review of PRGF-HIPC Financing, the Adequacy of the Reserve Account of the PRGF Trust, and Subsidization of Emergency Assistance
Description: This paper focuses on immediate PRGF and HIPC financing issues and does not discuss projections of the demand for, and supply of, resources for financing PRGF operations over the medium term. The latter issue will need to be revisited in the light of discussions on proposals for further debt relief and the Fund’s future financial role in low-income countries.
Notes: The Proposed Decision in this document has been approved by the Executive Board of the International Monetary Fund.
March 14, 2005
Review of Access Policy in the Credit Tranches, the Extended Fund Facility and the Poverty Reduction and Growth Facility, and Exceptional Access Policy
Description: Section I of this paper contains a discussion of the purpose of access rules, and Section II examines the Fund’s liquidity position. Section III discusses the potential demand for Fund resources resulting from several possible shocks. Section IV considers recent trends in access decisions and evaluates how they have conformed to the principles underlying the access rules, and whether the Fund’s liquidity would be a constraint to providing similar access in the period ahead. Section V summarizes recent developments in exceptional access and discusses issues pertinent to policy in such cases. Section VI concludes with the list of staff recommendations and the issues for discussion. Draft decisions on access to GRA and PRGF resources are provided in Section VII.
March 10, 2005
Lao People's Democratic Republic - Assessment Letter for the Asian Development Bank and the World Bank
Description: This note provides an update of the assessment of Lao P.D.R.’s macroeconomic conditions and outlook presented at the time of the 2004 Article IV Consultation.
Notes: 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.
March 10, 2005
Further Debt Relief for Low-Income Countries - Key Issues and Preliminary Considerations
Description: The International Monetary and Finance Committee at its 2004 Annual Meetings called on the international community to provide assistance including “further debt relief” to low-income countries for achieving the Millennium Development Goals (MDGs). It reaffirmed the Fund’s “important role” in supporting lowincome countries and called on the Fund to consider “further debt relief and its financing.” More impetus for this request was provided by various recent proposals (summarized in Annex I). At their meeting in London in February, G7 Finance Ministers expressed their willingness to provide as much as 100 percent multilateral debt relief.
March 4, 2005
Extension of Post-Program Monitoring to Cover the Use of Poverty Reduction and Growth Facility (PRGF) Resources
Notes: The Proposed Decision in this document has been approved by the Executive Board of the International Monetary Fund.