Interim Review of The Adequacy of The Fund’s Precautionary Balances

Interim Review of The Adequacy of The Fund’s Precautionary Balances PDF

Author: International Monetary

Publisher: International Monetary Fund

Published: 2021-12-16

Total Pages: 51

ISBN-13: 1616357525

DOWNLOAD EBOOK →

Precautionary balances are a key element of the Fund’s multilayered framework to mitigate financial risks. Overall financial risks remain elevated but have not increased significantly since the last review. Staff proposes to leave the medium-term target of SDR 25 billion, and the minimum floor of SDR 15 billion, unchanged at this time. With the projected increase in lending income, the pace of reserve accumulation is expected to remain adequate relative to the medium-term indicative target. The paper also reviews policy factors discussed in recent Board meetings that affect the level and accumulation of reserves.

Interim Review of The Adequacy of The Fund's Precautionary Balances

Interim Review of The Adequacy of The Fund's Precautionary Balances PDF

Author: International Monetary Fund Finance Dept

Publisher:

Published: 2021

Total Pages: 0

ISBN-13:

DOWNLOAD EBOOK →

Precautionary balances are a key element of the Fund's multilayered framework to mitigate financial risks. Overall financial risks remain elevated but have not increased significantly since the last review. Staff proposes to leave the medium-term target of SDR 25 billion, and the minimum floor of SDR 15 billion, unchanged at this time. With the projected increase in lending income, the pace of reserve accumulation is expected to remain adequate relative to the medium-term indicative target. The paper also reviews policy factors discussed in recent Board meetings that affect the level and accumulation of reserves.

Review Of The Adequacy Of The Fund’s Precautionary Balances

Review Of The Adequacy Of The Fund’s Precautionary Balances PDF

Author: International Monetary Fund. Finance Dept.

Publisher: International Monetary Fund

Published: 2022-12-20

Total Pages: 56

ISBN-13:

DOWNLOAD EBOOK →

On December 12, 2022, the IMF’s Executive Board reviewed the adequacy of the Fund’s precautionary balances. The review took place on the standard two-year cycle, after an interim review in December 2021. Precautionary balances comprise the Fund’s general and special reserves. They are a key element of the IMF’s multi-layered framework for managing financial risks. Precautionary balances provide a buffer to protect the Fund against potential losses, resulting from credit, income, and other financial risks. In conducting the review, the Executive Board applied the rules-based framework agreed in 2010. Precautionary balances have risen further since the 2021 interim review and coverage metrics have strengthened. At the same, credit and other financial risks have also increased. The pace of reserve accumulation is expected to remain adequate. Against this background, Executive Directors endorsed staff’s proposal to retain the current medium-term target of SDR 25 billion and the minimum floor of SDR 15 billion. The Board also discussed the role of surcharges, which are primarily a component of the Fund’s risk management framework but also contribute to reserves accumulation.

Review of the Adequacy of the Fund’s Precautionary Balances

Review of the Adequacy of the Fund’s Precautionary Balances PDF

Author: International Monetary Fund. Finance Dept.

Publisher: International Monetary Fund

Published: 2021-02-18

Total Pages: 43

ISBN-13: 1513569562

DOWNLOAD EBOOK →

On October 30, 2020, the IMF’s Executive Board reviewed the adequacy of the Fund’s precautionary balances. Precautionary balances, comprising the Fund’s general and special reserves and the Special Contingent Account (SCA-1), are one element of the IMF’s multi-layered framework for managing financial risks. These balances provide a buffer to protect the Fund against potential losses, resulting from credit, income, and other financial risks. This review of the adequacy of the Fund’s precautionary balances took place on the standard two-year cycle, although it was delayed by a few months to allow for an assessment of the impact of the COVID-19 pandemic on Fund financial risks. In conducting the review, the Executive Board applied the rules-based framework agreed in 2010.

Review of the Adequacy of the Fund's Precautionary Balances

Review of the Adequacy of the Fund's Precautionary Balances PDF

Author: International Monetary Fund

Publisher: International Monetary Fund

Published: 2016-01-26

Total Pages: 74

ISBN-13: 1498346057

DOWNLOAD EBOOK →

This paper reviews the adequacy of the Fund’s precautionary balances, using the framework approved by the Board in 2010. The review takes place on the standard two-year cycle. The paper discusses developments since the last review in 2014 and revisits several issues discussed at that time. The framework provides an indicative range for the target for precautionary balances linked to credit outstanding, and allows for judgment in setting this target. A reserve coverage ratio of 20-30 percent draws on approaches in other IFIs, adapted to the circumstances of the Fund, and is a guide for determining the target. At the same time, Directors have emphasized the continued importance of judgment and Board discretion in light of a broad assessment of financial risks facing the Fund.

Review of the Fund’s Income Position for FY2023 and FY2024

Review of the Fund’s Income Position for FY2023 and FY2024 PDF

Author: International Monetary Fund. Finance Dept.

Publisher: International Monetary Fund

Published: 2023-06-16

Total Pages: 47

ISBN-13:

DOWNLOAD EBOOK →

This paper updates the projections of the Fund’s income position for FY 2023 and FY 2024 and proposes related decisions for the current and next financial year. The paper also includes a proposed decision to keep the margin for the rate of charge unchanged for financial year 2024. The Fund’s overall net income for FY 2023 is projected at about SDR 1.8 billion, slightly lower than the April 2022 estimate.

Temporary Modifications to The Fund’s Annual and Cumulative Access Limits

Temporary Modifications to The Fund’s Annual and Cumulative Access Limits PDF

Author: International Monetary Fund. Strategy, Policy, & Review Department

Publisher: International Monetary Fund

Published: 2023-03-10

Total Pages: 37

ISBN-13:

DOWNLOAD EBOOK →

The paper discusses possible changes for the Poverty Reduction and Growth Trust (PRGT), for which the access limits were raised by 45 percent in 2021, bringing them into alignment with GRA access limits for the first time. While these changes helped address low-income countries’ (LICs) financing needs, these needs are projected to further increase in the medium term. An increase in the PRGT access limits in line with the proposed increase in the GRA access limits would help address these needs.

The Fund’s Income Position for FY 2022—Actual Outcome

The Fund’s Income Position for FY 2022—Actual Outcome PDF

Author: International Monetary Fund. Finance Dept.

Publisher: International Monetary Fund

Published: 2022-12-16

Total Pages: 10

ISBN-13:

DOWNLOAD EBOOK →

This paper reports on the Fund’s income position for FY 2022 following the closing of the Fund’s accounts for the financial year and completion of the external audit.

Argentina: Staff Report for 2022 Article IV Consultation and Request for an Extended Arrangement Under the Extended Fund-Facility-Press Release; Staff Report; and Staff Supplements

Argentina: Staff Report for 2022 Article IV Consultation and Request for an Extended Arrangement Under the Extended Fund-Facility-Press Release; Staff Report; and Staff Supplements PDF

Author: International Monetary

Publisher: International Monetary Fund

Published: 2022-03-25

Total Pages: 178

ISBN-13:

DOWNLOAD EBOOK →

Against the background of a decade of declining per-capita income and high inflation, the Article IV consultation focused on policies to begin to tackle Argentina’s underlying impediments to sustained growth and low and stable inflation. Avoiding boom-bust dynamics suggests the need for greater emphasis on policies to promote net exports and mobilize domestic saving to finance much-needed investment. Reversing the high degree of financial dollarization, however, will take time and will require a durable commitment to tackle fiscal dominance and strengthen debt sustainability. Meanwhile, addressing budget rigidities is essential to improve Argentina’s resilience to shocks, while reorienting public spending towards investment and innovation is critical to support productivity and reduce intergenerational inequities. Sustained political and social consensus is necessary for policy predictability and to balance demands from financing Argentina’s large social welfare system while also encouraging private investment and formal employment.

Lanterna Rally - Theme by Grace Themes