Policy Papers

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2009

December 10, 2009

Benin - Assessment Letter for Donors

Description: This letter provides an assessment of recent macroeconomic developments in Benin and an update on the discussions of Fund staff with the Beninese authorities on macroeconomic policies and structural reforms that could form the basis for the authorities’ request for a new arrangement supported by the International Monetary Fund.


Also available in French

December 7, 2009

The Fund's Income Position for FY 2010—Midyear Review

Description: This paper updates the outlook for the Fund's income position for FY 2010, taking into account developments in the first half of the financial year. The FY 2010 income outlook has improved relative to the baseline projections at the beginning of the year,1 mainly as a result of the combination of higher projected lending income, and lower expenditures, in SDR terms, reflecting the depreciation of the U.S. dollar and a projected underrun in the budget. Net operational income for FY 2010 is projected at about SDR 440 million compared with the previous baseline projection of SDR 290 million in April 2009. However, the actual outcome is subject to considerable uncertainty related to the timing and amounts of disbursements under current and potential new arrangements and the performance of the Investment Account.

December 2, 2009

The G-20 Mutual Assessment Process and the Role of the Fund

Description: This paper summarizes the Fund staff’s understanding of the modalities that the G-20 members intend to follow in their mutual assessment process and what they have requested for this purpose from the Fund. It also discusses the legal and policy implications of the Fund’s involvement in this exercise, but without prejudging the broader discussion of the Fund’s mandate the Board will have in the coming months. As the G-20 process is still evolving, the precise nature of the Fund’s involvement, in particular its inputs, will become clearer over time. The Executive Board will be kept informed as the process develops.

November 30, 2009

Borrowing Agreement with Banco de Portugal

Description: In light of the multilateral effort to ensure the adequacy of the financial resources available to the International Monetary Fund, and with a view to supporting the Fund's ability to provide timely and effective balance of payments assistance to its members, Banco de Portugal agrees to lend to the Fund an SDR-denominated amount up to the equivalent of EUR 1.06 billion, on the terms and conditions set out in this paper.

November 25, 2009

Seychelles - Assessment Letter for the African Development Bank

Description: Macroeconomic performance of Seychelles under the Stand-by Arrangement (SBA) has been favorable and the reforms continue to be pursued with a high degree of ownership and broad public support. The liberalization of the exchange regime, a strong fiscal adjustment, and prudent monetary policies have contributed to restoring macroeconomic stability. Program implementation has been exemplary and talks to restructure public external debt are progressing well. A debt restructuring agreement with commercial creditors, on terms comparable to those agreed with Paris Club creditors, is a crucial element in reestablishing a sustainable public debt outlook and supporting economic recovery.

November 24, 2009

Maldives-Assessment Letter for the Asian Development Bank and the World Bank

Description: The global crisis has hit the Maldivian economy hard; combined with an unsustainable fiscal expansion, it has led to a large fiscal deficit and severe balance of payments pressures. The authorities are committed to a strong policy adjustment program, and have requested IMF financial support for their program.

November 20, 2009

Framework Administered Account for Selected Fund Activities-Kingdom of the Netherlands-Netherlands Subaccount for Selected Fund Activities

Description: The Fund, represented by the Managing Director, has reached understandings with the Kingdom of the Netherlands—Netherlands acting through the Ministry of Foreign Affairs, to finance capacity building, training and related activities. On the basis of these understandings, the Managing Director has established the essential terms and conditions of the Subaccount, with which the Kingdom of the Netherlands—Netherlands concurs, with respect to the nature, design, and implementation of the activities to be financed and the method by which the costs of the activities will be financed from the Subaccount.

November 13, 2009

Framework Administered Account for Selected Fund Activities-Switzerland Subaccount for Selected Fund Activities

Description: The Fund, represented by the Managing Director, has reached understandings with Switzerland acting through the State Secretariat for Economic Affairs (SECO) (“Switzerland”), to finance capacity building (technical assistance and training) and related activities. On the basis of these understandings, the Managing Director has established the essential terms and conditions of the Subaccount, with which Switzerland concurs, with respect to the nature, design, and implementation of the activities to be financed and the method by which the costs of the activities will be financed from the Subaccount.

November 12, 2009

Fiscal Rules—Anchoring Expectations for Sustainable Public Finances

Description: The sharp increase in fiscal deficits and public debt in most advanced and several developing economies has raised concerns about the sustainability of public finances and highlighted the need for a significant adjustment over the medium term. This paper assesses the usefulness of fiscal rules in supporting fiscal consolidation, discusses the design and implementation of rules based on a new data base spanning the whole Fund membership, and explores the fiscal framework that could be adopted as countries emerge from the crisis.

November 12, 2009

Implementation Plan in Response to Board-Endorsed Recommendations Arising from the IEO Evaluation of IMF Involvement in International Trade Policy Issues

Description: This paper fulfils the requirement of a forward-looking implementation plan for Board-endorsed recommendations of the IEO Evaluation of IMF Involvement in International Trade Policy Issues (“the Evaluation”).

The Evaluation and the Executive Board’s conclusions provide impetus to re-prioritizing the Fund’s trade policy work. Table 1 sets out the Evaluation’s specific recommendations, Directors’ responses to them, and the proposals for implementation within this framework.

Directors called for recommendations to be implemented within the existing resource envelope—including by achieving closer and more effective cooperation with the WTO—and this implementation plan therefore does not provide detailed costing of individual items.

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