Policy Papers

March 21, 2025

Extension of the Period for Consent to Increase Quotas under the Sixteenth General Review of Quotas and to the NAB Rollback

Description: On November 8, 2024, the IMF's Executive Board approved a six-months extension of the period to consent to the quota increase and to the New Arrangements to Borrow (NAB) rollback under the Sixteenth General Review of Quotas (GRQ), through May 15, 2025. Such extension also extends the period of consent for quota increases under the 14th GRQ. The previous deadline was due to expire on November 15, 2024. However, the Board of Governors Resolution 79-1 provides that the Executive Board may extend the period for consent as it may determine.

March 18, 2025

Resilience and Sustainability Facility—Updated Operational Guidance Note

Description: This note provides general guidance on Resilience and Sustainability Facility (RSF) operations, including for arrangement requests and reviews. The RSF provides longer-term, affordable financing to members to help them address risks to prospective BOP stability stemming from longer-term macro critical structural challenges from climate change and pandemic preparedness. The note has benefited from early experience gained during the operationalization of the RSF; the outcome of the May 2024 RST Interim Review; the launch of the Enhanced Cooperation Framework for Scaled Up Climate Action with the World Bank; and the approval of Broad Cooperation Principles on Pandemic Preparedness in RSF operations with the World Bank and the World Health Organization.

March 13, 2025

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

February 20, 2025

Debt Vulnerabilities And Financing Challenges In Emerging Markets And Developing Economies—An Overview Of Key Data

Description: Many emerging markets and developing economies face elevated debt vulnerabilities and financing needs. Following the 2020-21 surge in debt levels associated with the COVID-19 shock, and the subsequent tightening in global financial conditions, many emerging markets and developing economies (EMDEs)1 are grappling with rising debt service burdens that squeeze the space available for development spending. Pandemic-induced deficits have declined, and debt levels have stabilized and are projected to remain stable or slightly decline under staff’s baseline assumptions. However, many EMDEs are confronting high costs of financing, large external refinancing needs, and a decline in net external flows amid important investment and social spending needs. To help address these challenges, countries would benefit from actions, both at domestic and international level, to proactively expand their capacity to finance development spending. There are also important risks to the baseline that will require careful monitoring. This paper aims to help inform the international debate on these issues by providing factual data and insight on the debt vulnerabilities and financing pressures facing EMDEs.

January 14, 2025

Considerations for the Comprehensive Review of Access Limits

Description: This paper provides background for an informal discussion to engage with Executive Directors, held on November 26, 2024, on the Comprehensive Review of GRA Access Limits. The General Resources Account (GRA) access limits are part of the Fund’s risk management framework. They help maintain a balance between the need to: (i) ensure that members have confidence in the availability of Fund financing; and (ii) preserve liquidity and the revolving nature of the Fund’s resources.

December 23, 2024

Comprehensive Review of GRA Access Limits

Description:

On December 17, 2024, the IMF’s Executive Board concluded the Comprehensive Review of General Resources Account (GRA) Access Limits. The review maintained the overall annual and cumulative GRA access limits at 200 and 600 percent of current quotas, respectively, keeping them unchanged from the existing temporary limits that were set to expire at the end of 2024. These limits constitute a 38 percent increase relative to the limits set in the previous comprehensive review in 2016. The outcome of the review enables the IMF to continue meeting the evolving needs of its member countries, providing greater stability and predictability in their access to IMF resources.

The Executive Board also approved adjustments to maintain access limits in nominal (Special Drawing Rights) terms when the general conditions for the effectiveness of the quota increase under the 16th General Review of Quotas are met. This approach is consistent with the Board’s decision in the recently approved Review of Charges and the Surcharge Policy and the Review of the PRGT Facilities and Financing. The Board also agreed that the next Comprehensive Review of GRA Access Limits is expected to take place on the standard five-year review cycle, with flexibility to conduct it earlier if circumstances warrant.

The last comprehensive review of the Fund’s GRA access limits took place in February 2016, establishing an annual limit of 145 percent and a cumulative limit of 435 percent of quotas. These limits were adjusted temporarily during the COVID-19 pandemic and after the geopolitical conflicts in recent years. Most recently, they were temporarily increased in March 2023 and were set to expire at the end of 2024.

Access limits are a key element of the Fund’s risk management framework: they provide members with confidence about the possible scale of financing that the Fund is prepared to provide in support of their adjustment efforts, while safeguarding Fund resources and preserving their revolving character. Overall GRA access limits are not ceilings but thresholds for enhanced scrutiny and safeguards through the exceptional access framework.

Two staff papers informed the Executive Board’s informal engagement (November 2024) and the formal meeting (December 2024) on this review.

December 23, 2024

Central Bank Stress Testing—Guidance Note

Description: The expansion of central bank balance sheets has become a critical topic in the wake of the Global Financial Crisis and the COVID-19 pandemic. Central banks have taken unprecedented measures to ensure price stability and financial stability, particularly when traditional policy tools were insufficient. However, this expansion has led to significant balance sheet risks, resulting in notable losses as central banks have adjusted their policies in response to rising inflation. This guidance note explores these risks and introduces a modeling framework to assess them. While essential for achieving stability, the expansion of central bank balance sheets introduces significant risks that require careful management. The proposed modeling framework is a valuable tool for assessing these risks and guiding capital policy. Exploring the relationship between balance sheet size and economic outcomes could yield beneficial insights for future central bank strategies.

December 19, 2024

Gulf Cooperation Council: Pursuing Visions Amid Geopolitical Turbulence: Economic Prospects and Policy Challenges for the GCC Countries

Description: The Gulf Cooperation Council countries have successfully weathered recent turbulence in the Middle East, and their economic prospects remain favorable. Nonhydrocarbon activity has been strong amid reform implementation, although overall growth has decelerated due to cuts in oil production. The growth outlook is positive, as the envisaged easing of oil production cuts and natural gas expansion spur the recovery in the hydrocarbon sector, while the nonhydrocarbon economy continues to expand. External buffers remain comfortable despite current account balances having narrowed. Risks around the outlook are broadly balanced in the near term. More challenging medium-term risks, especially in the context of geoeconomic fragmentation and climate change, call for action on policy priorities to continue to strengthen the private sector and to diversify the economy.

December 18, 2024

Somalia—Assessment Letter for the Central Bank of Somalia

Description: This letter provides IMF staff’s assessment of macroeconomic policies in Somalia. It also discusses the authorities’ intention to reintroduce the Somali Shilling and implement a currency board arrangement, which the IMF will be supporting through extensive capacity development and the Extended Credit Facility arrangement. This assessment letter has been requested by the Central Bank of Somalia with the objective of sharing it with international partners to explain the currency reform and seek their support.

December 17, 2024

Cancellation of The 2025 Interim Surveillance Review—Proposed Decision

Description: In the 2014 Triennial Surveillance Review, the Board approved the shift from a three-year to a five-year cycle for Comprehensive Surveillance Reviews (CSRs) and requested a smaller-scale interim report after 2½-3 years to assess implementation, identify emerging pressure points, and help shape the subsequent CSR. In 2024, the Board endorsed Management’s proposal to cancel the planned 2025 Interim Surveillance Review, to focus staff’s efforts on completing the CSR by May 2026, five years after the 2021 CSR. This Board paper provides the background on this decision and explains how related risks are mitigated.