Policy Papers
2022
December 20, 2022
The Managing Director’s Update on the FY 2023 Work Program of the Executive Board
Description: The membership is facing significant challenges, including high inflation, rising food and energy insecurity, elevated debt levels, tightening financial conditions, volatile capital flows and exchange rates, and intensifying geopolitical fragmentation. To this end, the Executive Board Work Program focuses on policy responses and bilateral and multilateral advice to stabilize the global economy and build resilience, critical financial assistance to those countries most affected by these shocks, and capacity development support to help implement policy advice. More than ever, the Fund has a key role to play in promoting international cooperation and collaborative solutions to shared challenges, including those related to climate, digitalization, and inclusion.
December 20, 2022
Review Of The Adequacy Of The Fund’s Precautionary Balances
Description: 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.
December 19, 2022
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
December 19, 2022
IMF Board Endorses Implementation Plan in Response to Institutional Safeguards Review
Description: IMF Board Endorses Implementation Plan in Response to Institutional Safeguards Review
December 16, 2022
Safeguards Assessments Policy—External Expert Panel's Advisory Report
Description: This report by the external expert panel (“the panel”) examines the effectiveness and appropriateness of the safeguards assessments policy in the five years since its last review in 2015. In addition to expressing an opinion on the effectiveness and appropriateness of the safeguards assessment policy, the panel also makes recommendations to the Executive Board for its consideration to improve and optimize the benefits to be garnered from the safeguards assessment policy. The panel’s opinion is based on (i) consultations with key stakeholders, including central bank authorities, IMF Executive Directors’ offices, and Fund staff; (ii) examination of safeguards assessment and other Fund-specific documents; and (iii) study of international reference materials.
December 16, 2022
The Fund’s Income Position for FY 2022—Actual Outcome
Description: 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.
December 16, 2022
Safeguards Assessments - 2022 Review of Experience
Description: This paper reviews experience with the safeguards assessment policy since the last review in 2015. The policy is subject to periodic reviews by the Executive Board. The policy’s main objective is to mitigate risks of misuse of Fund resources and misreporting of monetary data under Fund arrangements. Consistent with past reviews, an external panel of experts provided an independent perspective on the implementation of the policy.
December 12, 2022
2023 Review Of The Fund’s Capacity Development Strategy—Concept Note
Description: The 2023 CD Strategy review centers on four themes: (1) Enhancing the Strategic and Prioritization Framework; (2) Ensuring that the Size, Composition, and Funding of CD is in Line with the Proposed Framework; (3) Modernizing CD Delivery; and (4) Assessing the Effectiveness and Impact of CD.
December 9, 2022
FY2022—Output Cost Estimates and Budget Outturn
Description: The paper presents highlights from the FY 2022 budget, followed by a discussion of outputs based on the Fund Thematic Categories and of inputs.
December 8, 2022
Macroeconomic Developments and Prospects in Low-Income Countries - 2022
Description: Russia’s war in Ukraine and the related fallout have created a challenging external environment for the post-pandemic recovery of low-income countries (LICs). Food and commodity prices linger at elevated level with worsening food security. Global financial conditions tighten as major economies are fighting against inflation. The delay in LICs’ income per capita convergence to that of advanced economies (AEs) is expected to last into the medium term.