Policy Papers
2021
July 29, 2021
Poverty Reduction and Growth Trust―2020-21 Borrowing Agreements with The Government of Canada as Represented by The Minister of Finance, and The People’s Bank of China
Description: This paper presents two new borrowing agreements for the Poverty Reduction and Growth Trust (PRGT). These two agreements with the IMF, acting as Trustee for the PRGT, and the Government of Canada and the People’s Bank of China respectively have been finalized as part of the resource mobilization effort in response to the unprecedented demand for concessional financing driven by the COVID-19 pandemic and ensuing economic shocks. The fast-track loan mobilization round launched in April 2020 allowed the Fund to increase access limits and scale up emergency financing to low-income countries (LICs). To date, eleven new agreements and the augmentation of five existing agreements have been finalized with sixteen lenders (for previous updates see the October 2020 paper and the March 2021 paper. Together, these agreements and augmentations provide a total of SDR 16.9 billion in new PRGT loan resources for LICs, of which SDR 15.1 billion is immediately available.
July 22, 2021
Fund Concessional Financial Support For Low-Income Countries—Responding To The Pandemic
Description: This paper proposes a package of policy reforms and a funding strategy to ensure that the Fund has the capacity to respond flexibly to LICs’ needs during the pandemic and recovery. The key policy reforms proposed include: • raising the normal annual/cumulative limits on access to PRGT resources to 145/435 percent of quota, the same thresholds for normal access in the GRA; • eliminating the hard limits on exceptional access (EA) to PRGT resources for the poorest LICs, enabling them to obtain all financing on concessional terms if the EA criteria are met; • changes to the framework for blending concessional and non-concessional resources to make it more robust and less complex; • stronger safeguards to address concerns regarding debt sustainability and capacity to repay the Fund; and • retaining zero interest rates on PRGT loans, consistent with the established rules for setting these interest rates.
July 15, 2021
Statement by the Managing Director on the Work Program of the Executive Board Executive Board Meeting: June 10, 2021
Description: An unprecedented policy response and rapid progress in vaccinations have helped pull the global economy from a deep recession, but the outlook is marked by high uncertainty and great divergence. Against this background, the Fund continues its efforts to achieve a durable exit from the crisis, minimize long-term scarring, and build a more sustainable, resilient, and inclusive global economy. In line with the strategic directions laid out in the Spring 2021 Global Policy Agenda and the International Monetary and Financial Committee (IMFC) Communiqué, this Work Program puts forward a prioritized Board agenda focused on activities of most critical importance to our members.
July 12, 2021
Proposal For a General Allocation of Special Drawing Rights
Description: On June 25, the Executive Board discussed a proposal for a historic US$650 billion general allocation of SDRs to address the long-term global need to supplement existing reserve assets. Following concurrence by the Executive Board on July 8, the Managing Director submitted the proposal to the Board of Governors on July 9 for its approval by August 2. If approved, which requires an 85 percent majority of the total voting power, the allocation would become effective by the end of August. The proposal makes a case for an allocation of US$650 billion (about SDR 456 billion), based on an assessment of IMF member countries’ long-term global reserve needs. It also includes measures to enhance the transparency and accountability in the reporting and use of SDRs while preserving the reserve asset characteristic of the SDR. The general allocation would help many EMDCs that are liquidity constrained smooth needed adjustment and avoid distortionary policies, while providing scope for spending on crisis response and vaccines.
July 12, 2021
Report of the Managing Director to the Board of Governors and to the Executive Board Pursuant to Article XVIII, Section 4(c)
Description: This report is submitted pursuant to the provisions of the Articles of Agreement regarding a general allocation or cancellation of Special Drawing Rights (SDR) for the Twelfth Basic Period that begins on January 1, 2022. The Articles of Agreement provide for periodic consideration and decisions on SDR allocations or cancellations in the context of consecutive basic periods of normally five years of duration (Article XVIII, Section 2(a)). Pursuant to Article XVIII, Section 4(c)(i), the Managing Director must make a proposal to the Board of Governors no later than six months before the end of each basic period regarding a general allocation or cancellation in the next basic period. The Eleventh Basic Period for a general allocation or cancellation of SDRs began on January 1, 2017 and is scheduled to end on December 31, 2021. The Twelfth Basic Period will commence on January 1, 2022.
July 12, 2021
Allocation of Special Drawing Rights For The Eleventh Basic Period: Draft Executive Board Decision and Managing Director Report to the Board of Governors
Description: On June 25, 2021, the Executive Board discussed a staff paper setting forth the considerations underlying the case for a general allocation of special drawing rights (SDRs) of an amount equivalent to US$650 billion (about SDR 456 billion) during the Eleventh Basic Period and the key features that could be included in the Managing Director’s proposal for this general allocation.
July 9, 2021
Central bank digital currencies for cross-border payments
Description: The G20 has made enhancing cross-border payments a priority and endorsed a comprehensive programme to address the key challenges.1 Faster, cheaper, more transparent and more inclusive cross-border payment services would deliver widespread benefits for citizens and economies worldwide, supporting economic growth, international trade, global development and financial inclusion. To that end, this report takes stock of the international dimension of central bank digital currency (CBDC, see glossary) projects and the extent to which they could be used for cross-border payments. The report also investigates possible macro-financial implications associated with the cross-border use of CBDCs. The analysis does not imply that central banks mentioned in this report have reached a decision about issuance of a CBDC.
July 8, 2021
Key Trends in Implementing the FUND's Transparency Policy
Description: At the time of the 2005 Review of the Fund’s Transparency Policy, the Executive Board required regular updates on trends in implementing the transparency policy. This report provides an overview of recent developments, reflecting information on documents considered by the Board in 2019 and their respective publication status up to June 2020, and updating the previous annual report on Key Trends.
July 1, 2021
Extension Of The Periods For Consent To And Payment Of Quota Increases
Description: Extension Of The Periods For Consent To And Payment Of Quota Increases
June 28, 2021
List Of IMF Member Countries With Delays In Completion Of Article Iv Consultations Or Mandatory Financial Stability Assessments Over 18 Months
Description: List Of IMF Member Countries With Delays In Completion Of Article Iv Consultations Or Mandatory Financial Stability Assessments Over 18 Months