Rate of Charge and Burden Sharing Adjustments issued during:

SDR Interest Rate, Rate of Remuneration, Rate of Charge and Burden Sharing Adjustments, September 15, 2003

The rates used by the IMF to pay interest and levy charges for each financial quarter are shown here.

The SDR interest rate, calculated every week, is the primary rate from which other rates are derived. This rate is used to pay interest and levy charges on SDR holdings and SDR allocations, respectively.

The basic rate of remuneration is equal to the SDR interest rate. The basic rate of charge is equal to the SDR interest rate, plus a fixed margin that is set annually by the IMF Executive Board. Both rates are further adjusted under the burden sharing mechanism for the financial consequences of protracted arrears.

Members' remunerated reserve tranche positions are paid interest (remuneration) at the adjusted rate of remuneration. Charges on members' outstanding use of IMF credit are levied at the adjusted rate of charge.

SDR Interest Rate, Rate of Remuneration, Rate of Charge and Burden Sharing Adjustments.
 
        Rate for     Average Rate in     Average Rate in
         Current Week      Current Quarter     Previous Quarter
      9/15/03   8/1/03   5/1/03
      9/21/03   9/21/03   7/31/03
 
SDR Interest Rate         1.55         1.53         1.59
               
Rate of Remuneration:          
    Basic Rate 1/   1.55   1.53   1.59
    Adjustment for deferred charges 2/ -0.01   -0.01   -0.01
    Adjustment for SCA - 1 2/       -0.08         -0.08         -0.08
               
    Adjusted Rate of Remuneration       1.46         1.44         1.50
               
Rate of Charge:            
       Basic rate 1/   2.05   2.02   2.10
       Adjustment for deferred charges 2/ 0.01   0.01   0.01
       Adjustment for SCA - 1 2/       0.07         0.07         0.07
               
       Adjusted Rate of Charge       2.13         2.10         2.18
 
1/ The rate of remuneration is same as the SDR interest rate and, for FY 2004 beginning May 1, 2003, the rate of charge is equal to 132.0 percent of the SDR interest rate. The rate of charge may be reduced further at the end of FY 2004 since the IMF has decided to use any income in excess of its net income target for the financial year to reduce retroactively the rate of charge.
2/ The rate of remuneration and the rate of charge are further adjusted for the financial consequences of protracted arrears under the burden sharing mechanism. These adjustments are determined after the end of each financial quarter (July 31, October 31, January 31 and April 30). The adjustments for the current quarter are estimates only.