Review of the Adequacy of the Fund’s Precautionary Balances

February 18, 2021

Preview Citation

Format: Chicago

Review of the Adequacy of the Fund’s Precautionary Balances, (USA: International Monetary Fund, 2021) accessed December 3, 2024

Summary

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.

Subject: COVID-19, Credit, Credit ratings, Credit risk, Income

Keywords: Fund credit, Income risk, Lending portfolio, Multilayered framework, PP, Precautionary balance

Publication Details

Pages:

43
Volume:

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DOI:

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Issue:

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Series:

Policy Paper No. 2021/005
Stock No:

PPEA2021005
ISBN:

9781513569567
ISSN:

2663-3493

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