Policy Papers
2009
August 27, 2009
Reduction of Blackout Periods in GRA Arrangements
Description:
In the context of the March 2009 reforms of the General Resources Account (GRA) lending toolkit, the Executive Board asked staff to prepare a paper addressing the problem of blackout periods under GRA arrangements, which interrupt access to accumulated but undrawn purchases. This request arose in the context of the decision to make high-access precautionary arrangements (HAPAs) available to members on a more regular basis (with greater flexibility regarding frontloading of access). Blackout periods have important implications given that the crisis-prevention and confidence-enhancing role of precautionary arrangements (particularly HAPAs) depend on strong assurances that resources will be available if needed.
Section II provides background on the issue of blackout periods and the expanded role of precautionary arrangements under the recent reforms. Section III proposes a solution to provide greater assurances to members regarding continuity of access to accumulated rights while maintaining appropriate safeguards.
August 20, 2009
Debt Limits in Fund-Supported Programs - Proposed New Guidelines - Supplementary Information and Proposed Decision
Description: This supplement summarizes the reforms proposed in IMF (2009a, b)1 to the existing framework governing external debt limits in Fund-supported programs, and presents the proposed decision that is needed to implement these reforms. The supplement is organized as follows: Section II provides a brief commentary on the proposed decision, emphasizing key aspects of the proposed reforms set out in IMF (2009a, b) 1. Section III contains the proposed decision approving the new guidelines on external debt in Fund arrangements. The proposed new guidelines are included in the Attachment to the decision.
August 18, 2009
Review of the IMF's Strategy on Overdue Financial Obligations
Description: This paper reviews progress under the IMF's strengthened cooperative strategy on overdue financial obligations. Total arrears to the Fund declined by SDR 11 million, to SDR 1,327 million, since the last review. While Sudan’s payments in excess of its new obligations falling due to the Fund accounted for the decline, arrears by Somalia and Zimbabwe increased further. The majority of the arrears to the Fund (85 percent) were to the General Resources Account (GRA).
August 17, 2009
Nepal - Assessment Letter for the Asian Development Bank
Description: Assessment Letters or Statements may be prepared for member countries with Fund-supported programs; receiving Fund emergency assistance; with staff-monitored programs; or surveillance-only cases. They are typically produced for use by the country with multilateral or bilateral donors or creditors, in particular the World Bank and other International Financial Institutions.
August 14, 2009
Cross-Cutting Themes in Major Article IV Consultations
Description: This paper is part of a broader on-going effort to bring a more cross-country perspective to bilateral surveillance, taking advantage of a cluster of Article IV consultations with five systemically important economies concluded in July. With the five economies—the United States, the Euro area, China, Japan, and the United Kingdom—accounting for two-thirds of global output and three quarters of capital flows, the nature of linkages and consistency of policy responses across the systemic five (S5) has important implications for the world economy.
August 11, 2009
Bangladesh - Assessment Letter for the Asian Development Bank
Description: Assessment Letters or Statements may be prepared for member countries with Fund-supported programs; receiving Fund emergency assistance; with staff-monitored programs; or surveillance-only cases. They are typically produced for use by the country with multilateral or bilateral donors or creditors, in particular the World Bank and other International Financial Institutions.
August 5, 2009
A Review of Some Aspects of the Low-Income Country Debt Sustainability Framework
Description: The Bank-Fund Debt Sustainability Framework (DSF) is a standardized framework for analyzing debt-related vulnerabilities in low-income countries (LICs). It aims to help countries monitor their debt burden and take early preventive action, to provide guidance to creditors in ensuring their lending decisions are consistent with countries’ development goals, and to improve the Bank and Fund’s assessments and policy advice. The DSF was last reviewed in 2006, and a reconsideration of some aspects of the framework is timely.
August 5, 2009
Debt Limits in Fund-Supported Programs - Proposed New Guidelines
Description: Low-income countries (LICs) face significant challenges in meeting their development objectives, while maintaining a sustainable debt position. To address this dilemma, the international community has largely advocated recourse to concessional external finance. The Fund’s existing policy and practice on external debt limits conforms to this preference.
July 31, 2009
Crisis-Related Measures in the Financial System and Sovereign Balance Sheet Risks
Description: This paper examines the fiscal and financial risk implications of support measures in a sovereign balance sheet framework, making the point that the ultimate fiscal cost will depend on how balance sheets are managed—both in the near-term and as governments develop unwinding strategies. It suggests some key principles for efficient and transparent management of new assets, liabilities, and associated risks, and for moving toward an orderly disengagement.
Notes: Prepared by a staff team supervised by Adrienne Cheasty and Udaibir S. Das and comprising Luis Cortavarria, Vincenzo Guzzo, Allison Holland, Philippe Karam, Daehaeng Kim, Ian Lienert, Edouard Martin, Michael Papaioannou, Iva Petrova, Abdourahmane Sarr, Mark Stone, and Mauricio Villafuerte.
July 29, 2009
Borrowing Agreement with the Government of France
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, France agrees to lend to the Fund an SDR-denominated amount up to the equivalent of EUR 11.06 billion, on the terms and conditions set out in this report.