Policy Papers
2020
December 10, 2020
Economic Prospects and Policy Challenges for the GCC Countries
Description: The COVID-19 pandemic is having far-reaching consequences for the global economy. Measures to contain the spread of the virus have led to sharp declines in economic activity across the globe, particularly in 2020Q2. The hardest hit sectors have been those requiring intensive human contact, such as tourism, transportation, services, and construction, while, in general, IT-intensive activities have fared better. The economic contraction is most significant in advanced economies. The GCC countries face a double impact from the coronavirus and lower oil prices. GCC authorities have implemented a range of appropriate measures to mitigate the economic damage, including fiscal packages, relaxation of monetary and macroprudential rules, and the injection of liquidity into the banking system, and there are recent signs of improvement. Low oil prices have caused a sharp deterioration of external and fiscal balances, and fiscal strains are evident in countries with higher debt levels.
December 4, 2020
The Fund’s Income Position For FY 2020 -- Actual Outcome
Description: This paper reports on the Fund’s income position for FY 2020 following the closing of the Fund’s accounts for the financial year and completion of the external audit. Net operational income was about SDR 1.4 billion, slightly higher than estimated in the April supplement, mainly reflecting higher investment income. However, the unrealized pension-related adjustment in FY 2020, stemming mainly from the actuarial remeasurement of staff retirement plan assets and liabilities, was larger than previously estimated and more than offset the Fund’s net operational income, contributing to an overall net loss of about SDR 1.4 billion for the year.
November 24, 2020
Statement by the Managing Director on the Independent Evaluation Office Report on IMF Collaboration with the World Bank on Macro-Structural Issues; June 15, 2020
Description: Statement by the Managing Director on the Independent Evaluation Office Report on IMF Collaboration with the World Bank on Macro-Structural Issues
November 23, 2020
Gender Diversity in the Executive Board: Progress Report of the Executive Board to the Board of Governors
Description: Executive Directors underscore the importance of promoting gender diversity at the IMF’s Executive Board and the Offices of Executive Directors (OEDs). The Executive Board recognizes that a diversity of views contributes to stronger decision making and is committed to ongoing efforts to improve the gender profile of the Board and Offices of the Executive Directors. The Fund’s membership has also indicated that it places importance on this issue; the International Monetary and Financial Committee (IMFC) has consistently drawn attention in its communiqués to the importance of enhancing the gender diversity of the Executive Board.
November 11, 2020
Reform of the Policy on Public Debt Limits in IMF-Supported Programs
Description: This paper evaluates the IMF’s policy on the use of quantitative limits on public debt in IMF-supported programs (the “debt limits policy”) and proposes a number of modifications. The review is taking place at a time when many countries are experiencing heightened debt vulnerabilities or actual debt distress, aggravated by the COVID-19 shock, and occurring against the backdrop of a changing credit landscape in which concessional finance is scarcer relative to countries’ investment needs.
October 30, 2020
Fifteenth General Review of Quotas—Further Considerations
Description: The paper revisits the two-pillar framework for assessing the adequacy of Fund resources. The quantitative pillar is updated to include alternative assumptions and to provide a longer-term perspective on likely resource needs. The updated qualitative pillar analysis highlights reforms since the global financial crisis and discusses uncertainties in the global environment. The paper also takes stock of recent discussions on the quota formula and provides further technical work on variability and PPP GDP. It provides an overview of approaches to quota adjustments that have facilitated the required broad consensus for changes in quotas in previous general reviews. A limited set of simulations illustrates the potential impact that different quota increases, quota formulas, and allocation mechanisms would have on the distribution of actual quota shares.
October 30, 2020
Fifteenth General Review of Quotas—Quota Formula and Realigning of Shares
Description: This paper discusses issues related to further reforms of the quota formula and realigning quota shares, based on updated quota data through 2015. The paper takes stock of discussions on the quota formula to date, including the significant divergences that remain on many key issues. It presents illustrative simulations of possible reforms of the formula. The paper also discusses the broader issue of realigning quota shares and presents a limited set of simulations to illustrate the potential impact that different quota formulas may have on the distribution of actual quota shares.
October 30, 2020
Fifteenth General Review of Quotas—Adequacy of Fund Resources—Further Considerations
Description: The paper presents a two-pillar framework for assessing the adequacy of Fund resources, building on the staff paper discussed by the Board in March 2016. The first pillar presents quantitative analysis, using three approaches to provide indicative ranges for the adequacy of Fund resources (traditional metrics, access-based and scenario-based). The second pillar of the framework is qualitative in nature, with focus on the interaction of interconnectedness with ongoing and new transitions. The paper also provides information to support a discussion on the mix of Fund resources.
October 23, 2020
FY2020 - Output Cost Estimates and Budget Outturn
Description: The paper presents highlights from the FY 2020 budget, followed by a discussion of outputs based on the Fund Thematic Categories and of inputs.
October 20, 2020
Poverty Reduction And Growth Trust - 2020 Borrowing Agreements With The National Bank Of Belgium, Banco Central Do Brasil, Banque De France, The Government Of Japan, De Nederlandsche Bank NV, The Norwegian Ministry Of Finance Representing The Kingdom Of Norway, The Bank Of Spain, The Sveriges Riksbank And The Government Of The United Kingdom
Description: This paper presents the first set of Poverty Reduction and Growth Trust (PRGT) borrowing agreements that have been signed to respond to the unprecedented demand for concessional financing during the COVID-19 pandemic. A fast-track loan mobilization round has been instrumental to allow the Fund to raise access limits and scale up emergency financing to low-income countries (LICs). The new agreements and augmentations of existing agreements that have been finalized are from Belgium, Brazil, France, Japan, the Netherlands, Norway, Spain, Sweden and the United Kingdom. Together, these agreements provide a total of SDR 10.6 billion in new PRGT loan resources for LICs.