Post Program Monitoring During the Pandemic—Proposal for Temporary Streamlining of Procedures and Renaming of the Policy

Decision No. 13454-(05/26), adopted March 14, 2005, as amended, is further amended to read as follows:

• 1. If outstanding credit to a member exceeds any of the thresholds specified below:

  • (a) 200 percent of quota for credit from the Fund’s General Resources Account (GRA), or from the Fund as Trustee of the Poverty Reduction and Growth Trust (PRGT), or from the Fund as Trustee of the Resilience and Sustainability Trust (RST), or a combination thereof; or

  • (b) an amount equivalent to SDR 1.5 billion for credit from the Fund’s GRA; or

  • (c) an amount equivalent to SDR 0.38 billion from the PRGT; or

  • (d) an amount equivalent to SDR 0.38 billion from the RST,

and the member does not have a program supported by a Fund arrangement or is not implementing a staff monitored program with reports issued to the Executive Board, or the member does not have a program supported by a Policy Support Instrument (PSI), or Policy Coordination Instrument (PCI), the member will be expected to engage in Post Financing Assessment (PFA) discussions with the Fund involving the monitoring of its economic developments and policies upon the recommendation of the Managing Director. Where the above criteria are met, the Managing Director shall recommend PFA to the Executive Board, unless, in the view of the Managing Director, the member’s circumstances (in particular, the strength of the member’s policies, its external position, or the fact that a successor arrangement, PCI, PSI or a staff monitored program is expected to be in place within the next six months) are such that the process is unwarranted. PFA will normally cease when the member’s outstanding credit falls below all of the applicable thresholds above.

• 2. The Managing Director may also propose PFA to the Executive Board in cases where outstanding credit as defined above is below the above-specified thresholds if, in the view of the Managing Director, there are developments that suggest the need for closer monitoring of the member’s capacity to repay, and particularly, where developments call into question the member’s progress toward external viability.

• 3. For members subject to PFA, there will normally be one standalone PFA paper issued for Executive Board consideration in a twelve-month period. The member will be expected to engage in discussions with staff on its policies, which shall include a quantified macroeconomic framework. The staff will report to the Executive Board on the member’s policies, the consistency of the macroeconomic framework with the objective of medium-term viability, and the implications for the member’s capacity to repay the Fund. PFA papers should also examine the risks to the member’s capacity to repay the Fund.

• 4. The Executive Board’s consideration of a PFA paper will be reflected in a press release. The publication of the press release will follow the normal press release procedure, including the requirement of the member’s consent.

• 5. For the period from May 7, 2021 through December 31, 2022, the modalities set out in paragraphs 1-4 above for PFA shall be modified as follows: PFA discussions will be combined with the Article IV consultations with such members, and reported in the Article IV Consultation staff report issued to the Board normally once in any twelve-month period, with the Article IV press release also covering PFA considerations.

• 6. All References in other Fund decisions to “Post Program Monitoring” are revised to read “Post Financing Assessment.” (SM/21/58, 04/23/21)

Decision No. 13454-(05/26),

March 14, 2005,

as amended by Decision Nos. 13563-(05/85), October 5, 2005,

14184-(08/93), October 29, 2008,

14284 (09/29), March 24, 2009,

15946-(16/14), February 17, 2014

16019-(16/61), July 1, 2016,

16233-(17/62), July 14, 2017, and

17037-(21/44), May 7, 2021, and

17231-(22/37), April 13, 2022