## 2025 Financial Statements — General Department, SDR Department, Trusts, RST, and Administered Accounts (IMF) ## Source details **Canonical URL:** [2025 Financial Statements — General Department, SDR Department, Trusts, RST, and Administered Accounts (IMF)](https://www.imf.org/-/media/files/data/imf-finance/quarterly-financial-statements/2025/2025-financial-statements.pdf) ## Other formats - [Markdown version](/-/media/files/data/imf-finance/quarterly-financial-statements/2025/2025-financial-statements.pdf.md) - [Structured JSON version](/-/media/files/data/imf-finance/quarterly-financial-statements/2025/2025-financial-statements.pdf.json) --- ### Nature of operations, mandate, and structure - Institution and mandate (International Monetary Fund — General Department): - 191 member countries. - Primary mission: ensure stability of the international monetary system through surveillance, lending to members with balance of payments difficulties, and providing technical assistance. - General Department structure: - Three accounts: (i) General Resources Account (GRA); (ii) Investment Account (IA); (iii) Special Disbursement Account (SDA). - Investment Account composition and objectives: - Fixed-Income Subaccount: target return = Special Drawing Rights (SDR) interest rate + 50 basis points over 3–4 years; minimize frequency/extent of negative returns. - Endowment Subaccount: credited with SDR 4.4 billion (profits from gold sales, FYs 2010 and 2011); objective = real return of 3 percent in US dollar terms over the long term. - Interim Placement Administered Account (IPAA) and Multi-Year Distribution Plan (MYDP): - MYDP maximum cumulative distribution amount: SDR 6.9 billion. - IPAA: five-year term; principal becomes available when assurances equal to 90 percent of SDR 6.9 billion achieved; interest income at the SDR rate transfers quarterly to PRG Trust Subsidy Reserve Account. - Executive Board decision (October 2024) adopted distribution of SDR 1,380 million of GRA net income to the IPAA (placed but not yet distributed as of April 30, 2025). - Basis of preparation: - Financial statements prepared in accordance with IFRS; unit of account = SDR; presented on going concern basis. ### SDR valuation, interest rate, and currency basket - SDR basket weights and amounts (years ended April 30, 2025 and 2024): - Chinese renminbi — Weight (in percent) 12.28; Amount 1.0993 - Euro — Weight (in percent) 29.31; Amount 0.37379 - Japanese yen — Weight (in percent) 7.59; Amount 13.452 - British pound — Weight (in percent) 7.44; Amount 0.080870 - US dollar — Weight (in percent) 43.38; Amount 0.57813 - SDR exchange rates: - At April 30, 2025: SDR 1 = US$1.35611 - At April 30, 2024: SDR 1 = US$1.31793 - SDR interest rate: - Determined weekly from short-term instrument yields/rates in SDR basket currencies; floor 0.050 percent; rounded to three decimals. - Average SDR interest rate: - 3.538 percent per annum (FY ended April 30, 2025) - 4.057 percent per annum (FY ended April 30, 2024) ### Global economic context and policy posture - Update on geopolitical and global economic developments: - Post-pandemic stabilization followed by increased uncertainty; global growth forecasts revised downward relative to the prior financial year. - Global headline inflation expected to decline more slowly than previously projected. - Intensified downside risks from escalating trade tensions and financial market adjustments; potential tightening of global financial conditions from policy shifts or deteriorating sentiment. - IMF will periodically review lending policies (access limits, charges, surcharges, commitment fees). - As at the date of the financial statements, no negative impact on General Department operational results, including impairment analysis of credit portfolio. ### Credit exposure, impairment policy, and expected credit loss (ECL) approach — GRA and General Department - GRA credit outstanding: - SDR 91,665 million at April 30, 2025. - SDR 90,801 million at April 30, 2024. - Regional concentration of GRA credit outstanding (April 30, 2025; in millions of SDRs; Percent* of total): - Africa 8,187 8.9 - Asia and Pacific 2,894 3.2 - Europe 12,475 13.6 - Middle East and Central Asia 17,394 19.0 - Western Hemisphere 50,715 55.3 - Total 91,665 100.0 - Largest users of GRA credit (April 30, 2025; in millions of SDRs; Percent* of total): - Largest user: 40,260 43.9 - Three largest users: 59,689 65.1 - Five largest users: 72,226 78.8 - ECL framework and key judgements (General Department): - IMF financing linked to program reviews; de facto preferred creditor status and comprehensive risk mitigants reduce likelihood of credit losses. - Statistical PD/LGD modeling and external rating reliance considered neither feasible nor appropriate; credit risk assessed on member-by-member qualitative/quantitative basis. - ECL staging: - Stage 1: no significant increase in credit risk — 12-month portion of lifetime ECL. - Stage 2: significant increase — lifetime ECL. - Stage 3: credit-impaired — lifetime ECL. - Definition of default: member is in default when six months or more overdue (rebutting 90 days past due presumption). - During FYs ended April 30, 2025 and 2024, no member was more than 30 days past due for General Department. ### Liquidity and maturity profile — GRA credit outstanding and liquidity measures - Maturity profile of scheduled and overdue repurchases of outstanding GRA credit (in millions of SDRs): - April 30, 2025: - Due in less than 1 year: 9,848 - Due in 1 to 2 years: 8,657 - Due in 2 to 3 years: 10,703 - Due in 3 to 4 years: 11,322 - Due in 4 to 5 years: 12,341 - Due in over 5 years: 38,794 - Overdue*: — - Total: 91,665 - April 30, 2024 (for comparison, including overdue 307 settled May 2, 2024): - Total: 90,801 (with Overdue*: 307) - Forward Commitment Capacity and usable resources (Schedule 2, April 30): - Usable currencies: 285,002 (2025); 284,276 (2024) - SDR holdings: 17,684 (2025); 18,960 (2024) - Total usable resources: 302,686 (2025); 303,236 (2024) - Undrawn balances under GRA lending commitments: (72,836) (2025); (79,205) (2024) - Uncommitted usable resources: 229,850 (2025); 224,031 (2024) - Prudential balance: (77,726) (2025); (77,170) (2024) - One-year forward commitment capacity (FCC): 161,972 (2025); 165,340 (2024) ### Charges, fees, and October 2024 reforms - October 2024 reform package (effective November 1, 2024) included: - Reduce margin for basic rate of charge by 40 basis points to 60 basis points. - Increase level-based surcharge threshold from 187.5 percent of quota to 300 percent of quota. - Align commitment fee thresholds to overall annual and cumulative access limits (200 and 600 percent of quota). - Reduce time-based surcharge rate by 25 basis points to 75 basis points. - Margin for basic rate of charge: - FY ended April 30, 2025: 100 basis points from May 1 to October 31, 2024; 60 basis points from November 1, 2024 to April 30, 2025. - FY ended April 30, 2024: 100 basis points. - Average rate of charge: - 4.340 percent per annum (FY ended April 30, 2025) - 5.057 percent per annum (FY ended April 30, 2024) - Charges income (in millions of SDRs): - Basic charges: 3,826 (2025); 4,775 (2024) - Surcharges — Level-based: 861 (2025); 1,007 (2024) - Surcharges — Time-based: 349 (2025); 422 (2024) - Total surcharges: 1,210 (2025); 1,429 (2024) - Total charges: 5,036 (2025); 6,204 (2024) - Service charge and commitment fees (other charges and fees, in millions of SDRs): - Service charges: 98 (2025); 85 (2024) - Commitment fees: 146 (2025); 225 (2024) - Total other charges and fees: 244 (2025); 310 (2024) ### Investments — Investment Account (IA) balances, management, and market risk - IA aggregate balances (in millions of SDRs): - Fixed-Income Subaccount: 29,723 (April 30, 2025); 24,595 (April 30, 2024) - Endowment Subaccount: 7,480 (April 30, 2025); 6,985 (April 30, 2024) - Total investments: 37,203 (April 30, 2025); 31,580 (April 30, 2024) - Net asset value: 36,608 (April 30, 2025); 31,511 (April 30, 2024) - Transfers from GRA to IA: - SDR 3,330 million transferred during FY ended April 30, 2025 (Executive Board approved). - SDR 1,630 million transferred during FY ended April 30, 2024. - Fixed-Income Subaccount (FIS) specifics: - Structure: Tranche 1 (shorter-duration, active management) and Tranche 2 (longer-duration, buy-and-hold). - Average duration constrained: weighted average between zero and three years. - FIS investments (at fair value/FVTPL, in millions of SDRs, April 30, 2025): - Short-term investments: Tranche 1 455; Tranche 2 34; Total 489 - Fixed-income securities: Tranche 1 21,788; Tranche 2 7,322; Total 29,110 - Derivative assets: Tranche 1 117; Tranche 2 7; Total 124 - Total at FVTPL: Tranche 1 22,360; Tranche 2 7,363; Total 29,723 - Interest rate sensitivity (FIS): - 100-basis point increase at April 30, 2025 → loss of SDR 284 million. - 100-basis point decrease at April 30, 2025 → gain of SDR 290 million. - Credit spread sensitivity (FIS): - April 30, 2025 → loss of SDR 290 million (increase) / gain of SDR 288 million (decrease). - Currency sensitivity (10 percent move, FIS, April 30, 2025, gain/(loss) in millions of SDRs): - Chinese renminbi: 2 / (2) - Euro: — / — - Japanese yen: (2) / 2 - British pound: 2 / (2) - US dollar: (3) / 4 - Fair value hierarchy (FIS recurring measurements): - April 30, 2025: Level 1 335; Level 2 29,388; Level 3 —; Total 29,723 - Endowment Subaccount specifics (April 30, 2025): - Investments: 7,480 (April 30, 2025) - Interest rate sensitivity (100-basis point): - April 30, 2025 → loss SDR 158 million (increase) / gain SDR 174 million (decrease). - Currency sensitivity (10 percent move, Endowment, April 30, 2025, gain/(loss) in millions of SDRs): - Chinese renminbi: (76) / 77 - Euro: (202) / 215 - Japanese yen: (32) / 33 - British pound: (45) / 46 - US dollar: 241 / (262) - Equity price risk (MSCI ACWI Index): - April 30, 2025 → gain of SDR 319 million / loss of SDR 319 million. - Credit risk on fixed-income investments (IA): - Fixed-Income Subaccount fixed-income investments: SDR 29,110 million (April 30, 2025) — all met minimum credit rating requirement. - Endowment Subaccount fixed-income investments: SDR 3,222 million (April 30, 2025), of which SDR 3,185 million met minimum; SDR 2 million corporate bonds and SDR 35 million private infrastructure debt rated below BBB–. - Liquidity: IA subaccounts largely liquid; maturities concentrated in near term with totals (FIS total maturities, April 30, 2025) = 29,723 and Endowment total = 3,366. ### Other assets and liabilities — movements and net effect - Selected other assets (in millions of SDRs): - Basic charges receivable: 777 (April 30, 2025); 1,161 (April 30, 2024) - Surcharges receivable: 244 (2025); 348 (2024) - Investment trades and other receivables: 347 (2025); 266 (2024) - Accrued interest and dividends on investments: 223 (2025); 176 (2024) - Accrued interest on SDR holdings: 134 (2025); 198 (2024) - Total other assets: 1,861 (2025); 2,288 (2024) - Selected other liabilities (in millions of SDRs): - Remuneration payable on members’ reserve tranche position: 771 (2025); 1,091 (2024) - Refundable commitment fees on active arrangements: 201 (2025); 244 (2024) - Investment trades and other payables: 968 (2025); 457 (2024) - Derivative liabilities: 197 (2025); 54 (2024) - Total other liabilities: 2,256 (2025); 1,975 (2024) - Net position shift: - Net other assets less liabilities: 1,861 − 2,256 = −395 (2025) - Prior year net: 2,288 − 1,975 = 313 (2024) ### Borrowings, NAB, and Bilateral Borrowing Agreements (GRA) - New Arrangements to Borrow (NAB): - 40 participants effective at April 30, 2025 and 2024. - Available balances under effective NAB commitments at April 30, 2025 and 2024: SDR 364.4 billion. - NAB not activated at April 30, 2025 or 2024; no outstanding borrowings under NAB at those dates. - NAB renewal approved in July 2024 for period January 1, 2026 through December 31, 2030. - Bilateral Borrowing Agreements (BBAs): - Lenders’ commitments under effective BBAs: - SDR 118.5 billion (US$160.6 billion) at April 30, 2025 - SDR 141.7 billion (US$186.7 billion) at April 30, 2024 - No outstanding borrowings under BBAs at April 30, 2025 and 2024. ### Quotas and reserve tranche positions - Quota aggregates (in millions of SDRs): - Total Quota: 476,372.0 (April 30, 2025) - GRA’s holdings of currencies: 453,140.7 (April 30, 2025) - Reserve tranche positions: 115,003.4 (April 30, 2025) - Sixteenth General Review of Quotas: - Executive Board proposed completion (November 7, 2023) leading to 50 percent quota increase; effectiveness conditions and consent deadlines noted with extensions to November 15, 2025. ### GRA reserves and income disposition - Reserve balances at April 30: - Special Reserve: SDR 18,621 million (2025); SDR 17,382 million (2024) - General Reserve: SDR 14,880 million (2025); SDR 14,880 million (2024) - IA transfers to GRA (April 2025): - Total net investment income transferred: SDR 1,071 million - Fixed-Income Subaccount: SDR 924 million - Endowment Subaccount: SDR 147 million - MYDP / Distribution framework: - MYDP sets maximum cumulative distribution of SDR 6.9 billion; April 2025 decision distributed SDR 1,380 million to IPAA. ### SDR Department — operations, holdings, and allocations - Role and purpose: - SDR is international interest-bearing reserve asset; SDR Department conducts SDR operations; participants, GRA, and prescribed holders may hold SDRs. - Cumulative allocations and holdings (in millions of SDRs): - Cumulative allocations (April 30, 2025): 184,029 (Below allocations) / 476,809 (Above allocations) / 660,838 (Total) - Holdings (April 30, 2025): Participants 639,964; IMF’s GRA 17,684; Prescribed holders 3,190; Total holdings 660,838 - SDR Department financials (selected, in millions of SDRs): - Total assets: 55,176 (2025); 52,321 (2024) - Allocations: 184,029 (2025) - Holdings: 129,269 (Participants below allocations) / Allocations in excess of holdings: 54,760 (2025) - Operational income equals operational expenses; total comprehensive income = — (2025 and 2024) - Auditor: - Deloitte & Touche LLP — unmodified opinion (auditor’s report dated June 25, 2025). ### Concessional Lending and Debt Relief Trusts — PRG Trust, PRG-HIPC Trust, CCR Trust - Cumulative transfers from IMF (mainly through SDA) to Trusts (cumulative balances at April 30, 2025, in millions of SDRs): - PRG Trust — Reserve Account: 2,800 - PRG Trust — Subsidy Accounts: 1,018 - PRG-HIPC Trust: 1,239 - CCR Trust: 293 - PRG Trust — loans receivable and borrowings (selected figures): - Total loans receivable: SDR 22,596 million (April 30, 2025); SDR 18,833 million (April 30, 2024) - Credit concentration — PRG Trust loans receivable by region (April 30, 2025): - Africa: 17,927 (79.3 percent) - Asia and Pacific: 1,648 (7.3 percent) - Europe: 266 (1.2 percent) - Middle East and Central Asia: 2,266 (10.0 percent) - Western Hemisphere: 489 (2.2 percent) - Total: 22,596 (100.0 percent) - PRG Trust undrawn commitments (April 30, 2025): SDR 6,321 million under 29 ECF arrangements; no active SCF arrangements. - PRG Trust investments and net investment income: - PRG Trust investments at April 30, 2025 (in millions of SDRs): - Total at FVTPL: 20,588 - At amortized cost (fixed-term deposits): 17 - Total investments: 20,605 - Net investment income (PRG Trust): 1,002 (2025); 710 (2024) - PRG Trust borrowings (resources available under borrowing and note purchase agreements at April 30, 2025): - Total amount agreed: 48,774.6; Total undrawn balance: 34,216 - PRG Trust forgiveness of reimbursements to GRA: - Executive Board decision (October 15, 2024) extended suspension of PRG Trust reimbursements to GRA for financial years 2027 to 2031. - Estimated PRG Trust reimbursement foregone (FY ended April 30, 2025): SDR 108 million (FY 2024: SDR 91 million). ### PRG-HIPC and CCR Trusts — selected aggregates - PRG-HIPC Trust (April 30, 2025): - Total assets: 396; Resources: 357; Net investment income: 17 (2025) - CCR Trust (April 30, 2025): - Total assets: 98; Resources: 83; Net investment income: 4 (2025) - HIPC outcomes and Somalia: - No new debt relief under HIPC during FY ended April 30, 2025 (SDR 128 million granted in FY ended April 30, 2024). - Somalia reached HIPC completion point (Dec 13, 2023); full debt relief in FY ended April 30, 2024: SDR 250 million (SDR 39 million to GRA; SDR 211 million to PRG Trust), mostly from Somalia Administered Account. ### Resilience and Sustainability Trust (RST) — objectives and key financials - Purpose: provide affordable long-term financing for macro-critical reforms addressing climate, pandemic preparedness, and other resilience needs; established May 1, 2022. - Financial position (selected, in millions of SDRs): - Total assets: 14,811 (April 30, 2025); 12,086 (April 30, 2024) - Investments: 10,831 (2025); 10,172 (2024) - Loans receivable: 3,674 (2025); 1,464 (2024) - Total liabilities: 14,172 (2025); 11,679 (2024) - Resources (net assets): 639 (2025); 407 (2024) - Income and expenses (selected, in millions of SDRs): - Net investment income: 506 (2025); 338 (2024) - Interest income on loans receivable: 106 (2025); 23 (2024) - Interest expense: (420) (2025); (373) (2024) - Net income (total comprehensive income): 180 (2025); (17) (2024) - Loan Account terms: - Loan maturity: 20 years with grace period of 10.5 years. - Interest margins: Group A = SDR rate + 55 basis points (capped at 2¼ percent); Group B = SDR rate + 75 basis points; Group C = SDR rate + 95 basis points. - Borrowings (RST): - Undrawn balance under borrowing agreements: SDR 18,547 million (April 30, 2025); SDR 19,364 million (April 30, 2024) - Outstanding borrowings (end of year 2025): Loan Account 3,674; Reserve Account 482; Deposit Account 9,581; Total 13,737 - Weighted average interest rate on variable interest rate borrowings: 3.34 percent (FY ended April 30, 2025); 3.83 percent (FY ended April 30, 2024) - Interest expense on outstanding borrowings: SDR 420 million (FY 2025); SDR 373 million (FY 2024) ### Administered Accounts — nature, investments, and transfers - Administered Accounts administered at members’ request to channel contributed resources for financial and technical services; assets/liabilities separate from IMF proprietary accounts. - Selected Administered Accounts features: - People’s Bank of China account: funded by SDR 170 million deposit (matures July 2, 2027); investments in BIS MTIs maturing 2028; investment risk and currency composition rebalanced to SDR basket. - Somalia Administered Account: used to deliver debt relief; termination process initiated and expected in FY ending April 30, 2026. - Interim Placement Administered Account (IPAA): established under MYDP; IPAA Instrument features described above. - Investment and market risk for People’s Bank of China account: - 100-basis point rate move at April 30, 2025 → loss of SDR 3.5 million / gain SDR 3.6 million. - Transfers out (selected; in thousands): - Somalia PRG-HIPC Trust — 128,040 (thousands of SDRs) - Somalia PRG Trust — 123,453 (thousands of SDRs) - Administered Account for Ukraine — pass-through loans: SDR 1,520,276 thousand (FY ended April 30, 2025) ### Audit, governance, and standards adoption - Independent auditor for multiple entities: Deloitte & Touche LLP — unmodified opinions on financial statements (auditor’s reports dated June 25, 2025 for SDR Department, Trusts, RST, and Administered Accounts). - New and revised IFRS effective in future years: - IFRS 18 “Presentation and Disclosures in Financial Statements” (issued April 2024) — effective for annual periods beginning on or after January 1, 2027; adoption by IMF entities scheduled for financial year ending April 30, 2028 (impact being assessed). - Amendments to IAS 21 (August 2023) — effective for annual periods starting on or after January 1, 2025; to be adopted May 1, 2025 by IMF General Department and Trusts; not expected to have an impact. *Source: International Monetary Fund — General Department and Related Entities: Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024.* ### 1. Nature of operations ### 1. Nature of operations ### Overview of mandate and structure - The IMF is an international organization with 191 member countries. - The IMF’s primary mission is to ensure the stability of the international monetary system through: - surveillance of the global economy and the economies of members; - lending resources to members with balance of payments difficulties; and - providing technical assistance to members. - The IMF conducts its operations and transactions through the General Department, which comprises three accounts: (i) the General Resources Account (GRA); (ii) the Investment Account (IA); and (iii) the Special Disbursement Account (SDA). Each account maintains its own financial records and serves distinct functions within the IMF’s overall financial architecture. ### General Resources Account (GRA) - The GRA is the primary vehicle for financial operations with members, reflecting: - payment of member quota subscriptions; - use and repayment of GRA credit; - borrowings and repayments to lenders; - collection of charges from borrowers (debtor members); - payment of remuneration on creditor members’ positions and interest to lenders; and - other operations. - GRA resources are provided to members either under a financing arrangement (arrangement) or as outright purchases (disbursements). - An arrangement is a decision by the Executive Board that assures a member of IMF resources during a specified period and up to a specified amount, under the terms of the relevant financing instrument. - Financing facilities under the GRA: - The Stand-By Arrangement (SBA): designed for members with balance of payments problems expected to be resolved in the short to medium term. - The Extended Fund Facility (EFF): a special facility for members with longer-term balance of payments problems requiring structural and more comprehensive reforms; SBA and EFF resources are made available in phased installments subject to periodic Executive Board reviews. - The Flexible Credit Line (FCL): available for members with very strong fundamentals, policies, and track records; intended for crisis prevention and resolution. - The Short-term Liquidity Line (SLL): designed to provide liquidity support, including revolving access; has the same qualification criteria as the FCL but is available only for members facing potential moderate short-term balance of payments needs arising due to capital account pressures. - The Precautionary and Liquidity Line (PLL): for members with sound fundamentals but some remaining vulnerabilities that preclude FCL or SLL qualification. - The Rapid Financing Instrument (RFI): an instrument for an outright purchase used by members facing an urgent balance of payments need without the need or capacity for a full-fledged program. ### Investment Account (IA) - The IA holds resources transferred from the GRA that are invested to broaden the IMF’s income base; Rules and Regulations of the IA implement the expanded investment authority authorized under the Fifth Amendment of the IMF’s Articles of Agreement (effective February 2011). - The IA comprises two subaccounts: - Fixed-Income Subaccount: - Holds resources transferred from the GRA that are not related to profits from gold sales. - Investment objective: achieve, over time, returns that exceed the Special Drawing Rights (SDR) interest rate by a margin of 50 basis points while minimizing the frequency and extent of negative returns and underperformance over an investment horizon of three to four years. - Endowment Subaccount: - Credited with SDR 4.4 billion in profits from gold sales during financial years 2010 and 2011. - Investment objective: achieve a real return of 3 percent in US dollar terms over the long term to contribute to covering the IMF’s administrative expenditures, while preserving the long-term real value of these assets. ### Special Disbursement Account (SDA) - The SDA receives profits from the sale of gold held at the time of effectiveness of the Second Amendment (April 1978). - SDA resources can be used for purposes specified in the Articles of Agreement, including: - transfers to the GRA for immediate use in operations and transactions; - transfers to the IA; or - operations and transactions not authorized by other provisions but consistent with the IMF’s mandate, in particular providing balance of payments assistance on special terms to low-income members. ### Other entities administered by the IMF - The IMF administers the SDR Department; the Concessional Lending and Debt Relief Trusts and the Resilience and Sustainability Trust (RST) (collectively “the trusts”); and special purpose accounts (Administered Accounts). - The General Department does not have control over these entities; their financial statements are presented separately. - SDR Department: - Resources are held separately and may not be used to meet liabilities, obligations, or losses of the General Department (or vice versa), except that the General Department pays the expenses of conducting SDR Department business and is reimbursed by the SDR Department. - Trusts and Administered Accounts: - Resources generally contributed by members, other financial institutions, or in some cases by the IMF mostly through the SDA. - Assets and liabilities are separate from the General Department and cannot be used to meet the General Department’s liabilities, obligations, or losses. - The General Department can be reimbursed for expenses incurred in conducting their business in accordance with the Articles of Agreement and Executive Board decisions. - Interim Placement Administered Account (IPAA) and Multi-Year Distribution Plan (MYDP): - In October 2024, the Executive Board approved a distribution framework consisting of (i) a Multi-Year Distribution Plan (MYDP) and (ii) establishment of the Interim Placement Administered Account (IPAA) to facilitate generation of additional Poverty Reduction and Growth Trust (PRG Trust) subsidy resources. - The MYDP sets a maximum cumulative amount for distribution from the GRA and provides for annual decisions on amounts to be transferred to the IPAA. - Purpose of IPAA: temporarily hold annual distribution amounts from the GRA pending sufficient assurances by members for new commitments of PRG Trust subsidy resources. - Principal amounts held in the IPAA become available to members for disposition based on quota shares once assurances equivalent to 90 percent of the cumulative distribution amount of SDR 6.9 billion have been reached. - The IPAA has a five-year term; if sufficient assurances are not met by the fifth anniversary of the first placement, the Executive Board can extend the period by a majority of votes cast. In the absence of extension, resources in the IPAA would be returned to the GRA. - Interest income earned at the SDR interest rate on principal resources held in the IPAA shall be transferred quarterly to the Subsidy Reserve Account of the PRG Trust. - The IPAA is not consolidated within the General Department due to lack of control; the distribution framework and IPAA Instrument limit the General Department’s role to a protective function and are structured to avoid creating economic exposure for the General Department. ### Update on geopolitical and global economic developments - After shocks since the global pandemic followed by a period of stabilization with steady but modest growth, the global economy faces increased uncertainty as governments reorder policy priorities. - Global growth forecasts have been revised downward compared to the end of the last financial year due to higher effective tariff rates and a highly unpredictable environment. - Global headline inflation is expected to decline at a slower pace than previously projected. - Downside risks have intensified, driven by escalating trade tensions and financial market adjustments. - Shifts in policy positions or deteriorating sentiment could tighten global financial conditions; heightened trade policy uncertainty may further weaken short- and long-term growth prospects. - Reduced international cooperation could undermine progress toward a more resilient global economy. - In light of uncertainty, the IMF will continue to periodically review its lending policies, including evaluation of access limits and charges, surcharges, and commitment fees. - The General Department continues to manage its risks under its existing risk management framework. - As at the date of these financial statements, there had been no negative impact on the operational results of the General Department, including from the impairment analysis of its credit portfolio. ### Basis of preparation, unit of account, and key financial metrics - Financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) issued by the IASB and under the historical cost convention except for revaluation of financial instruments at fair value through profit or loss; prepared on a going concern basis. - Basis of consolidation: - The General Department’s financial statements comprise the GRA, IA, and SDA. - Control is assessed using (i) power over an entity; (ii) exposure to variable returns; and (iii) ability to influence those returns. As at April 30, 2025, and 2024, the General Department did not have control over IMF administered entities. - Unit of account: - Financial statements are presented in SDRs. - Weights and amounts of currencies in the SDR basket for the years ended April 30, 2025, and 2024: - Chinese renminbi: Weight (in percent) 12.28; Amount 1.0993 - Euro: Weight (in percent) 29.31; Amount 0.37379 - Japanese yen: Weight (in percent) 7.59; Amount 13.452 - British pound: Weight (in percent) 7.44; Amount 0.080870 - US dollar: Weight (in percent) 43.38; Amount 0.57813 - Next review of SDR valuation method scheduled for 2027, unless interim developments justify earlier review. - At April 30, 2025, SDR 1 was equal to US$1.35611; at April 30, 2024, SDR 1 was equal to US$1.31793. - SDR interest rate: - Provides basis for basic charges levied on credit outstanding, interest on SDR holdings, and remuneration on members’ reserve tranche positions. - Determined weekly by reference to weighted average yields or rates on short-term instruments in the money markets of SDR basket currencies. - Yield or rate references by currency: - Chinese renminbi: Three-month benchmark yield for China Treasury bonds as published by the China Central Depository and Clearing Co., Ltd. - Euro: Three-month spot rate for euro area central government bonds with a minimum rating of AA published by the European Central Bank. - Japanese yen: Three-month Treasury discount bills. - British pound: Three-month Treasury bills. - US dollar: Three-month Treasury bills. - SDR interest rate is subject to a floor of 0.050 percent and is rounded to three decimal places. - The average SDR interest rate was 3.538 percent per annum during the financial year ended April 30, 2025, and 4.057 percent per annum during the financial year ended April 30, 2024. ### Use of estimates, judgement, and accounting policies - Preparation of financial statements requires management judgements, estimates, and assumptions; revisions are recognized in the period of revision and future affected periods. - Most significant estimates and judgements include: - (i) measurement of expected credit losses (ECL) for credit outstanding and undrawn commitments; - (ii) fair value measurement of financial instruments; and - (iii) actuarial assumptions for net assets/liabilities under retirement benefit plans. - Presentation changes: - Presentational changes made to investment-related disclosures in Notes 4.3.1.1, 7.2 and 7.3; applied retrospectively for comparability without changing total prior-year amounts. - Financial instruments (summary of key policies): - Recognition: financial instruments recognized when the General Department becomes a party to contractual provisions. - Settlement date accounting used for all financial instruments except investments held at fair value through profit or loss (FVTPL), which use trade date accounting. - Initial measurement: measured at fair value evidenced by transaction amount. - Derecognition: - Financial assets derecognized when contractual rights expire or when transferred and either substantially all risks and rewards transferred or control not retained. - Financial liabilities derecognized when extinguished. - Classification and subsequent measurement of financial assets: - Financial assets held for collection of contractual cash flows where cash flows are solely payments of principal and interest are measured at amortized cost; interest income recognized using the effective interest method. - FVOCI classification: none held during financial years ended April 30, 2025, and 2024. - All other financial assets, including derivatives, measured at fair value with changes recognized in profit or loss. - Impairment: - ECL assessed on a forward-looking basis for financial assets at amortized cost and undrawn lending commitments; measurement of ECL reflects (i) unbiased and probability-weighted range of outcomes, (ii) time value of money, and (iii) reasonable and supportable information available without undue cost or effort. - If ECL recognized, they are recorded as impairment allowances for assets at amortized cost and as a liability provision for undrawn commitments. - For credit-impaired assets, interest income is calculated by applying the effective interest rate to amortized cost net of impairment allowance. - Classification and subsequent measurement of financial liabilities: - Derivative financial liabilities measured at FVTPL. - All other financial liabilities measured at amortized cost; interest expense included using the effective interest method where applicable. *Source: International Monetary Fund — General Department Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024.* ### 3.2 Financial assets ### 3.2 Financial assets ### 3.2.1 Currencies - Currencies are financial assets consisting of members’ currencies held by the GRA with designated depositories, in the form of account balances or non-interest-bearing promissory notes encashable by the GRA on demand. - All currencies in the GRA are classified at amortized cost. - Usable currencies: members’ currencies considered to be in a sufficiently strong external position such that they can be used in GRA transactions with other members. - Other currencies: members’ currencies not considered to have a sufficiently strong balance of payments and reserves position to be used in GRA transactions with other members. - Holdings of members’ currencies that represent purchases of usable currencies or SDRs in exchange for their own currencies are presented as credit outstanding (see Note 3.2.1.1). - The currency balances in the statements of financial position include receivables and payables arising from currency revaluations. ### 3.2.1.1 Credit outstanding and charges - Credit outstanding: financial asset representing financing provided to members under the various GRA financing facilities. Members receive financing by purchasing SDRs or usable currencies in exchange for their own currencies; repayment occurs by repurchasing holdings of their currencies in exchange for SDRs or usable currencies. - Basic charges: interest earned on members’ use of GRA credit; recognized using the effective interest method (see Note 16.1). - Surcharges: level-based and time-based surcharges apply to outstanding GRA credit; recognized when the Executive Board–set level-based and time-based thresholds on credit outstanding are reached (see Note 16.3). - Burden-sharing mechanism: charges not received from members within the required time frame are recovered through adjustments that increase the rate of charge for all other debtor members and decrease the rate of remuneration on members’ reserve tranche positions. - Service charge: levied by the GRA on all purchases from the GRA, except reserve tranche purchases; paid by the borrowing member upon completion of a purchase and recognized as income at the time of purchase. - Commitment fee: levied on the amount available for purchase under an arrangement for each 12-month period of the arrangement. Except for SLL arrangements, commitment fees are refunded as the member makes purchases under the arrangement; a prorated commitment fee is refunded in case of an arrangement’s cancellation. At an arrangement’s expiration or cancellation, any unrefunded amount is recognized as income. Pending refund or recognition as income, commitment fees are recognized as part of other liabilities in the statements of financial position. For SLL arrangements, the commitment fee is nonrefundable upon purchases; commitment fee income for SLLs is recognized on a straight-line basis over the duration of the SLL arrangement. ### Impairment of credit outstanding - The General Department’s assessment for impairment of credit outstanding is grounded in the IMF’s financing nature and unique institutional status, including that: - The IMF has a unique relationship with its members, all of which are shareholders in the institution. - IMF financing under GRA arrangements is linked to regular reviews of performance under a program of economic policies that the member commits to in order to overcome balance of payments problems, return to external viability, and repay the IMF. - The IMF employs a comprehensive set of measures to mitigate credit risk (see Note 4.2.1.1). - The IMF has de facto preferred creditor status, recognized by the official community and generally accepted by private creditors. - Taken together, these factors significantly reduce the likelihood of the General Department incurring credit losses. The General Department has not recognized any impairment losses since its inception. - Statistical credit-risk approaches (PD/LGD modeling) and reliance on external credit ratings are considered neither feasible nor appropriate; credit risk is assessed holistically on a member-by-member basis using qualitative and quantitative considerations, including program status, cooperation on policy implementation and timely settlement, and forward-looking capacity to repay. - ECL model: the General Department developed a model for expected credit loss (ECL) estimation based on changes in credit quality since initial recognition, using Stage classifications: - Stage 1: no significant increase in credit risk since initial recognition — ECL measured as a portion of lifetime ECL that result from default events possible within the next 12 months. - Stage 2: significant increase in credit risk since initial recognition — ECL measured on a lifetime basis. - Stage 3: credit-impaired — ECL measured on a lifetime basis. - Key judgements and assumptions: (i) Definition of default and credit-impaired: a member is in default when it is six months or more overdue in settling its financial obligations to the General Department. This rebuts the presumption that default occurs no later than 90 days past due. Credit outstanding is considered credit-impaired when the obligation has defaulted. (ii) Significant increase in credit risk: assessed member-by-member by comparing the risk of default at the reporting date with the risk of default at the date of the most recent disbursement to the debtor member; assessment performed on each reporting date and takes into account qualitative and quantitative criteria, including overdue obligations to the IMF, signals of noncooperation by the member, and forward-looking indicators of capacity to repay. Criteria are monitored and reviewed for appropriateness at least annually. The assessment does not rely on any single factor and may rebut the presumption that credit risk has increased significantly when contractual payments are more than 30 days past due. During the financial years ended April 30, 2025, and 2024, the General Department did not have any member more than 30 days past due. (iii) Low credit risk: a member is considered to have low credit risk if (i) it has a low risk of default; (ii) the member has a strong capacity to meet its contractual cash flow obligations in the near term; and (iii) adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the member to fulfill its contractual cash flow obligations. (iv) Measuring ECL: ECL are determined by comparing expected cash flows with contractual cash flows and discounting expected cash shortfalls at the effective interest rate, which is the basic rate of charge. ECL are estimated by assessing a range of possible outcomes in light of expected future economic conditions, weighted according to the assessed probability of each outcome; this entails considerable judgement and uncertainty. The burden-sharing mechanism is considered in ECL measurement as a financial safeguard integral to the IMF’s financial structure and operations to compensate for loss of income due to overdue payments (see Note 16). - Write-off policy: if a member with credit outstanding withdraws from the IMF and repudiates its outstanding obligations to the General Department, and there are no prospects of recovering amounts in the foreseeable future, the IMF would recognize the ultimate loss and write off the withdrawn member’s credit outstanding to the General Department. ### 3.2.2 SDR holdings - SDR holdings represent SDRs held by the GRA (see Note 6) and are measured at amortized cost. - Interest on SDR holdings is recognized using the effective interest method. ### 3.2.3 Investments - Investments include equity securities, fixed-income securities, short-term investments (cash and cash equivalents held for investment), fixed-term deposits, and derivative assets. Derivative liabilities are disclosed as part of other liabilities. - Investments in each of the two subaccounts are managed in accordance with their respective investment strategy (see Note 7), and performance is evaluated on a fair value basis. The business model for the invested portfolios focuses on achieving fair value gains; accordingly, these securities are classified at FVTPL. - Funds pending suitable investment may be kept in fixed-term deposits, which are measured at amortized cost. - Purchases and sales of investments held at FVTPL are recognized on the trade date; corresponding investment trades receivable and/or payable are recognized in other assets and other liabilities pending settlement. - Investment income comprises interest income on investments at amortized cost, interest and dividend income, and realized and unrealized gains and losses from FVTPL investments, including currency valuation differences arising from exchange rate movements against the SDR, net of all investment fees. - Interest income from investments is recognized using the effective interest method. Dividend income is recognized based on the ex-dividend date. *I. General Department Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024* ### 3.12 New and revised International Financial Reporting Standards and interpretations effective in future years ### 3.12 New and revised International Financial Reporting Standards and interpretations effective in future years ### New and revised IFRS effective in future years - IFRS 18 “Presentation and Disclosures in Financial Statements” issued by the IASB in April 2024 will replace IAS 1 “Presentation of Financial Statements”. - Objective: enhance the communication of financial information within financial statements; culmination of the IASB’s Primary Financial Statements projects. - Effective date: for annual periods beginning on or after January 1, 2027. - Adoption by the General Department: financial year ending April 30, 2028. - Status: The impact of the adoption is being assessed. - Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates” issued by the IASB in August 2023: - Clarify how an entity should (i) assess whether a currency is exchangeable; and (ii) determine a spot exchange rate when exchangeability is lacking. - Require disclosure of information enabling users to understand how lack of exchangeability into the other currency affects, or is expected to affect, the entity’s financial performance, financial position, and cash flows. - Effective date: for annual periods starting on or after January 1, 2025. - Adoption by the General Department: May 1, 2025. - Expected impact on the General Department’s financial statements: not expected to have an impact. ### Risk management — overview - The General Department is exposed to various operational and financial risks, including credit, market, and liquidity risks. - In December 2022, the Executive Board approved the Enterprise Risk Management (ERM) Framework and Roadmap to build on existing risk management practices. - The ERM policy and framework: - Encompass all enterprise risks across all IMF activities, including lending, surveillance, capacity development, and financial risks. - Utilize the three lines model for risk management. ### Risk management framework (three lines model) - First line: - Area, Functional, and Support Departments: responsible for implementing the ERM policy within their scope; handle risk identification, measurement, treatment, monitoring, and reporting as part of day-to-day operations. - Embedded Risk Management and Oversight (1.5 line): certain departments with legal, policy formation and operational support roles ensure alignment with legal and policy frameworks and oversee daily operations for compliance and risk management. - Second line: - The Office of Risk Management (ORM): centralized risk management oversight function; develops ERM tools and methodologies, aggregates risk information, provides independent oversight of first-line risk assessments, monitors and supports departments in preparing and documenting risk assessments; as ERM maturity develops, ORM will shift from support to focus on frameworks, oversight, aggregation, and reporting. - Third line: - Office of Internal Audit (OIA) and Independent Evaluation Office (IEO): provide objective and independent assurance to management and the Executive Board on the effectiveness of controls and governance; conduct regular audits and evaluations. - Risk governance: - Committees established to monitor and make decisions in specific risk areas; committees comprise IMF Management and staff and support first-line risk ownership in identification, assessment, and treatment. ### Financial assets and liabilities other than investments — credit risk - Credit risk definition: risk of suffering financial losses should any IMF member fail to fulfill financial obligations to the GRA. - Credit risk arises on credit outstanding and undrawn committed amounts under approved financing commitments. #### Credit risk management practices - Characteristics increasing credit risk: - Limited ability to diversify the credit portfolio. - High credit concentration due to nature of assistance. - Risk-mitigating policies and safeguards: - Program design and conditionality (performance criteria, indicative targets, structural benchmarks, prior actions, regular Executive Board reviews). - Access limits, post-financing assessments, surcharge policies, preventive and remedial measures for overdue obligations, and the burden-sharing mechanism. - Safeguards policy and misreporting policy. - Safeguards assessments of member central banks to provide reasonable assurance on legal structure, governance, control, reporting, and auditing systems. - Requirement for IMF purchases deposited at the central bank and an appropriate framework agreement where resources provided as direct budget financing. - Fiscal safeguards review required when exceptional access requests involve at least 25 percent of IMF funds expected for direct budget financing. - Access limits: - Set as a percentage of a member’s quota and vary with the facility being used. - Two sets of GRA limits: (i) overall limits monitoring total exposure and triggering additional scrutiny; (ii) facility-specific limits setting tailored caps. - Last comprehensive review: December 2024. #### Credit risk exposure — maximum exposure and concentrations - Maximum credit risk exposure: carrying value of credit outstanding and balance of undrawn commitments under GRA arrangements. - Credit outstanding: - SDR 91,665 million at April 30, 2025. - SDR 90,801 million at April 30, 2024. - Concentration of GRA outstanding credit by region: - April 30, 2025 (in millions of SDRs; Percent*): Africa 8,187 8.9; Asia and Pacific 2,894 3.2; Europe 12,475 13.6; Middle East and Central Asia 17,394 19.0; Western Hemisphere 50,715 55.3; Total 91,665 100.0. - April 30, 2024 (in millions of SDRs; Percent*): Africa 11,672 12.9; Asia and Pacific 2,368 2.6; Europe 10,974 12.1; Middle East and Central Asia 22,343 24.6; Western Hemisphere 43,444 47.8; Total 90,801 100.0. - *Percent = percentage of total GRA credit outstanding. - Use of credit in the GRA by the largest users: - April 30, 2025 (in millions of SDRs; Percent*): Largest user of credit 40,260 43.9; Three largest users of credit 59,689 65.1; Five largest users of credit 72,226 78.8. - April 30, 2024 (in millions of SDRs; Percent*): Largest user of credit 30,988 34.1; Three largest users of credit 51,266 56.5; Five largest users of credit 63,640 70.1. - *Percent = percentage of total GRA credit outstanding. - Five largest users of GRA credit and movements (April 30, 2024 → purchases → repurchases → April 30, 2025) (in millions of SDRs): - Argentina: 30,988 → 9,760 → (488) → 40,260 - Ukraine: 9,005 → 3,640 → (1,842) → 10,803 - Egypt, Arab Republic of: 11,273 → 1,541 → (4,188) → 8,626 - Ecuador: 5,827 → 1,129 → (522) → 6,434 - Pakistan: 6,547 → 760 → (1,204) → 6,103 - Total: 63,640 → 16,830 → (8,244) → 72,226 - Five largest users of GRA credit and movements (April 30, 2023 → purchases → repurchases → April 30, 2024) (in millions of SDRs): - Argentina: 32,252 → 9,000 → (10,264) → 30,988 - Egypt, Arab Republic of: 13,420 → 618 → (2,765) → 11,273 - Ukraine: 8,980 → 1,992 → (1,967) → 9,005 - Pakistan: 5,566 → 2,250 → (1,269) → 6,547 - Ecuador: 6,096 → — → (269) → 5,827 - Total: 66,314 → 13,860 → (16,534) → 63,640 - Undrawn balances under GRA arrangements: - SDR 72,836 million at April 30, 2025. - SDR 79,205 million at April 30, 2024. - These balances reflect approval of new arrangements (commitments) and augmentations to address members’ balance of payment needs. ### Market risk on financial assets and liabilities other than investments - Definition: risk that the fair value or future cash flows of financial instruments will fluctuate because of changes in market prices. - Components for the General Department: interest rate risk and exchange rate risk. #### Interest rate risk - Interest rate risk: risk that future net cash flows will fluctuate because of changes in market interest rates. - All interest-bearing financial instruments other than investments accrue interest either at the SDR interest rate or at a rate linked to the SDR interest rate. - Management: linking the rate of charge directly, by means of a fixed margin, to the cost of financing (equal to the SDR interest rate). #### Exchange rate risk - Exchange rate risk: risk that the General Department’s financial position and cash flows will be affected by fluctuations in foreign currency exchange rates. - Key points: - No exchange rate risk exposure on holdings of members’ currencies in the GRA because members maintain the value of such holdings in SDR terms. - Other assets and liabilities denominated in currencies other than SDRs and administrative payments largely in US dollars have limited exchange rate risk exposure. - No exchange rate exposure on quota subscriptions and drawings under borrowing arrangements because they are denominated in SDRs. ### Liquidity risk on financial assets and liabilities other than investments - Liquidity risk definition: risk to the General Department of nonavailability of resources to meet members’ financing needs and its own obligations. - The General Department must have usable resources available to meet members’ demand for financial assistance and its liabilities; resources are largely revolving but timing and amount of credit during financial crises create uncertainty. - Examples of unexpected needs: - Meeting potential demands for a drawing on a member’s reserve tranche upon representation of need. - Authorizing drawings to meet demands for encashment of creditor claims under the New Arrangements to Borrow (NAB) or bilateral borrowing agreements. #### Liquidity management - Main liquidity measure: Forward Commitment Capacity — capacity to make new GRA resources available over the following 12 months (see Schedule 2). - Long-term liquidity: - Addressed by reviewing adequacy of quota-based resources. - General reviews of members’ quotas conducted at regular intervals. - GRA may borrow to supplement quota resources. - Short-term liquidity: - Reviewed and approved by the Executive Board periodically via a financial transactions plan for quota resources, assessments of the GRA’s liquidity position and outlook (at least once every six months), and resource mobilization plan for borrowed resources (as needed). #### Maturity profile of scheduled and overdue repurchases of outstanding GRA credit (in millions of SDRs) - April 30, 2025: - Due in less than 1 year: 9,848 - Due in 1 to 2 years: 8,657 - Due in 2 to 3 years: 10,703 - Due in 3 to 4 years: 11,322 - Due in 4 to 5 years: 12,341 - Due in over 5 years: 38,794 - Overdue*: — - Total: 91,665 - April 30, 2024: - Due in less than 1 year: 18,479 - Due in 1 to 2 years: 9,908 - Due in 2 to 3 years: 8,657 - Due in 3 to 4 years: 10,703 - Due in 4 to 5 years: 10,753 - Due in over 5 years: 31,994 - Overdue*: 307 - Total: 90,801 - *The amount overdue at April 30, 2024, was originally due on April 30, 2024, and was subsequently settled on May 2, 2024. - Repurchases made in advance: - SDR 343 million during the financial year ended April 30, 2025. - SDR 744 million during the financial year ended April 30, 2024. - Note: Usable and other currencies, SDR holdings, and quota subscriptions do not have maturity dates. *General Department Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024.* ### 4.3 Investments ### 4.3 Investments ### 4.3.1 Credit risk on fixed-income investments and derivative instruments - Credit risk represents the potential loss if issuers and counterparties default on contractual obligations. - Credit risk management practices for fixed-income investments: - Fixed-Income Subaccount minimum credit rating: equivalent of BBB– (based on Standard & Poor’s long-term rating scale) for corporate bonds and BBB+ for all other assets to diversify the portfolio. - Endowment Subaccount minimum credit rating: BBB+ for sovereign bonds and BBB– for corporate bonds and private infrastructure debt. Limited holdings in the Endowment Subaccount of corporate bonds and private infrastructure debt rated below BBB– are permitted under the Rules and Regulations of the IA. - Instruments exempt from the credit rating requirement: those issued by the Bank for International Settlements (BIS), central bank deposits, and short-term investments. - Credit risk exposure (carrying amount = maximum exposure): - Fixed-Income Subaccount fixed-income investments: SDR 29,110 million at April 30, 2025 (all met the minimum credit rating requirement). - Fixed-Income Subaccount fixed-income investments: SDR 24,156 million at April 30, 2024 (including SDR 12 million in unrated BIS fixed-term deposits; all other holdings met the minimum credit rating). - Endowment Subaccount fixed-income investments: SDR 3,222 million at April 30, 2025, of which SDR 3,185 million met the minimum; SDR 2 million in corporate bonds and SDR 35 million in private infrastructure debt rated below BBB–. - Endowment Subaccount fixed-income investments: SDR 2,940 million at April 30, 2024, with SDR 25 million in private infrastructure debt rated below the minimum credit rating. - Derivative instruments credit exposure (unrealized gains): - Fixed-Income Subaccount: SDR 124 million at April 30, 2025 and SDR 128 million at April 30, 2024. - Endowment Subaccount: SDR 3 million at April 30, 2025 and SDR 15 million at April 30, 2024. - Derivative counterparty risk mitigants: strict exposure limits, credit rating requirements, and collateral requirements. ### 4.3.2 Market risk on investments - Market risk components: interest rate risk, exchange rate risk, and other price risks (credit spread risk and equity price risks). - Investment objectives and strategies differ by subaccount, leading to different market risk profiles and tolerances. #### 4.3.2.1 Fixed-Income Subaccount - Management: - Market risk managed through asset class diversification and broad security selection. - Use of derivatives authorized for interest rate risk management, currency hedging, and cost reduction in portfolio balancing, benchmark replication, and market access. - Safeguards against short selling and financial leverage. - Interest rate risk: - Duration limited to a weighted average between zero and three years. - Sensitivity (holding all other variables constant): - 100-basis point increase at April 30, 2025 → loss of SDR 284 million. - 100-basis point decrease at April 30, 2025 → gain of SDR 290 million. - 100-basis point increase at April 30, 2024 → loss of SDR 364 million. - 100-basis point decrease at April 30, 2024 → gain of SDR 365 million. - Exchange rate risk: - Managed by hedging non-SDR currencies into SDR basket currencies to preserve SDR basket composition; overall currency exposure closely aligned to the SDR basket. - Sensitivity to a 10 percent fluctuation in individual SDR basket currencies (gain/(loss) in millions of SDRs): - April 30, 2025 — Chinese renminbi: 2 (increase) / (2) (decrease) - April 30, 2025 — Euro: — / — - April 30, 2025 — Japanese yen: (2) / 2 - April 30, 2025 — British pound: 2 / (2) - April 30, 2025 — US dollar: (3) / 4 - April 30, 2024 — Chinese renminbi: (1) / 1 - April 30, 2024 — Euro: 1 / (1) - April 30, 2024 — Japanese yen: (3) / 3 - April 30, 2024 — British pound: 1 / (1) - April 30, 2024 — US dollar: 1 / (1) - Credit spread risk: - Managed by minimum credit ratings and limits on exposure to Group 2 assets. - Sensitivity to a 100-basis point change in credit spreads: - April 30, 2025 → loss of SDR 290 million (increase) / gain of SDR 288 million (decrease). - April 30, 2024 → loss of SDR 233 million (increase) / gain of SDR 235 million (decrease). #### 4.3.2.2 Endowment Subaccount - Management: - Investments divided into eight categories; market risk managed through asset class diversification and broad security selection. - Except for emerging market equities (actively managed), all assets are managed passively. - Use of derivatives authorized for interest rate management, currency hedging, and cost reduction in portfolio balancing, benchmark replication, and market access. - Interest rate risk: - Sensitivity to a 100-basis point change: - April 30, 2025 → loss of SDR 158 million (increase) / gain of SDR 174 million (decrease). - April 30, 2024 → loss of SDR 146 million (increase) / gain of SDR 161 million (decrease). - Exchange rate risk: - Performance measured in US dollars (base currency) and translated into SDRs for reporting. - Hedging provided for fixed-income investments denominated in developed market currencies vis-à-vis the US dollar. - Sensitivity to a 10 percent fluctuation in individual SDR basket currencies (gain/(loss) in millions of SDRs): - April 30, 2025 — Chinese renminbi: (76) / 77 - April 30, 2025 — Euro: (202) / 215 - April 30, 2025 — Japanese yen: (32) / 33 - April 30, 2025 — British pound: (45) / 46 - April 30, 2025 — US dollar: 241 / (262) - April 30, 2024 — Chinese renminbi: (72) / 74 - April 30, 2024 — Euro: (182) / 193 - April 30, 2024 — Japanese yen: (25) / 25 - April 30, 2024 — British pound: (40) / 40 - April 30, 2024 — US dollar: 211 / (230) - Credit spread risk: - Managed via minimum credit rating requirements. - Sensitivity to a 100-basis point change relative to risk-free curves: - April 30, 2025 → loss of SDR 55 million (increase) / gain of SDR 57 million (decrease). - April 30, 2024 → loss of SDR 53 million (increase) / gain of SDR 56 million (decrease). - Equity price risk: - Measured using the MSCI ACWI Index (broad global equity index). - Sensitivity to a 10 percent change in the index: - April 30, 2025 → gain of SDR 319 million / loss of SDR 319 million. - April 30, 2024 → gain of SDR 332 million / loss of SDR 332 million. ### 4.3.3 Liquidity risk on investments - Liquidity risk definition: the risk that an investment will not have an active buyer or seller when traded, negatively affecting price. - Liquidity management: - IA’s liquidity needs are low; liquidity risk is minimal because both subaccounts hold the majority of resources in readily marketable investments. - Maturity profile of short-term and fixed-income investments and derivative assets (in millions of SDRs): - Fixed-Income Subaccount maturities: - Due in less than 1 year: April 30, 2025 — 11,781; April 30, 2024 — 8,614 - Due in 1 to 2 years: April 30, 2025 — 5,324; April 30, 2024 — 5,031 - Due in 2 to 3 years: April 30, 2025 — 4,541; April 30, 2024 — 4,150 - Due in 3 to 4 years: April 30, 2025 — 3,112; April 30, 2024 — 2,717 - Due in 4 to 5 years: April 30, 2025 — 2,479; April 30, 2024 — 2,285 - Due in over 5 years: April 30, 2025 — 2,486; April 30, 2024 — 1,798 - Total: April 30, 2025 — 29,723; April 30, 2024 — 24,595 - Endowment Subaccount maturities: - Due in less than 1 year: April 30, 2025 — 325; April 30, 2024 — 299 - Due in 1 to 2 years: April 30, 2025 — 413; April 30, 2024 — 369 - Due in 2 to 3 years: April 30, 2025 — 389; April 30, 2024 — 374 - Due in 3 to 4 years: April 30, 2025 — 378; April 30, 2024 — 328 - Due in 4 to 5 years: April 30, 2025 — 370; April 30, 2024 — 313 - Due in over 5 years: April 30, 2025 — 1,491; April 30, 2024 — 1,380 - Total: April 30, 2025 — 3,366; April 30, 2024 — 3,063 - Investments in both subaccounts largely represent liquid investments that could be sold earlier than contractual maturity. ### 7. Investments — balances and portfolio management - Investment balances (in millions of SDRs): - Fixed-Income Subaccount: April 30, 2025 — 29,723; April 30, 2024 — 24,595 - Endowment Subaccount: April 30, 2025 — 7,480; April 30, 2024 — 6,985 - Total investments: April 30, 2025 — 37,203; April 30, 2024 — 31,580 - Transfers from GRA to IA: - SDR 3,330 million transferred during the financial year ended April 30, 2025 (Executive Board approved). - SDR 1,630 million transferred during the financial year ended April 30, 2024. - Investment portfolio management: - IA subaccounts are fully invested with no immediate liquidity requirements; transactions relate to portfolio management. - Fixed-Income Subaccount: predominantly diversified high-grade fixed-income investments; external managers transact to meet subaccount objectives. - Endowment Subaccount: globally diversified portfolio managed by external managers; annual payout to contribute to administrative expenses; passively managed portions replicate benchmarks; actively managed portions driven by managers’ long-term strategies; rebalanced to strategic asset allocation at least annually. - Presentation and net asset values: - Investments and derivatives presented on a gross basis; no legally enforceable right to offset. - Investment performance monitored using net asset values (in millions of SDRs): - Investments: April 30, 2025 — 37,203; April 30, 2024 — 31,580 - Investment trades and other receivables (Note 12): April 30, 2025 — 347; April 30, 2024 — 266 - Accrued interest and dividends on investments (Note 12): April 30, 2025 — 223; April 30, 2024 — 176 - Investment trades and other payables (Note 12): April 30, 2025 — (968); April 30, 2024 — (457) - Derivative liabilities (Note 12): April 30, 2025 — (197); April 30, 2024 — (54) - Net asset value: April 30, 2025 — 36,608; April 30, 2024 — 31,511 *I. General Department Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024* ### 7.2 Fixed-Income Subaccount ### 7.2 Fixed-Income Subaccount ### Structure and investment approach - The Fixed-Income Subaccount comprises two tranches: a shorter-duration Tranche 1 and a longer-duration Tranche 2. - The average duration of the Fixed-Income Subaccount should not exceed three years. - Tranche 1 is managed actively. - Tranche 2 is managed according to a buy-and-hold investment approach, which in limited circumstances allows for the sale of investments in accordance with the overall investment strategy prior to maturity. - Assets are invested by external managers, except for investments with the BIS and short-term investments (residual cash balances). ### Eligible assets and limits - Eligible investments for both tranches: debt obligations issued by national governments of members, their central banks and official agencies, supranational institutions, and obligations of the BIS, denominated in SDRs or currencies included in the SDR basket (referred to as Group 1 assets for investment management purposes). - Eligible investments for Tranche 1 also include: fixed-income investments issued by subnational governments, corporate bonds, mortgage-backed and other asset-backed securities, and cash instruments with maturities of one year or less (referred to as Group 2 assets for investment management purposes). - Group 2 assets should not exceed 40 percent of the Fixed-Income Subaccount portfolio. ### Portfolio composition (at fair value/FVTPL unless noted) - Investments in the Fixed-Income Subaccount were as follows (in millions of SDRs): - April 30, 2025 - Short-term investments: Tranche 1 455; Tranche 2 34; Total 489 - Fixed-income securities: Tranche 1 21,788; Tranche 2 7,322; Total 29,110 - Derivative assets: Tranche 1 117; Tranche 2 7; Total 124 - Total at FVTPL: Tranche 1 22,360; Tranche 2 7,363; Total 29,723 - Fixed-term deposits at amortized cost — — — - Total: Tranche 1 22,360; Tranche 2 7,363; Total 29,723 - April 30, 2024 - Short-term investments: Tranche 1 230; Tranche 2 81; Total 311 - Fixed-income securities: Tranche 1 15,785; Tranche 2 8,359; Total 24,144 - Derivative assets: Tranche 1 110; Tranche 2 18; Total 128 - Total at FVTPL: Tranche 1 16,125; Tranche 2 8,458; Total 24,583 - Fixed-term deposits at amortized cost — 12 12 - Total: Tranche 1 16,125; Tranche 2 8,470; Total 24,595 ### Derivatives — fair values and notional amounts - Fair values of derivative assets and liabilities in the Fixed-Income Subaccount at April 30, 2025: - Derivative assets: SDR 124 million - Derivative liabilities: SDR 158 million - Fair values at April 30, 2024: - Derivative assets: SDR 128 million - Derivative liabilities: SDR 52 million - Notional values of derivative instruments (in millions of SDRs): - April 30, 2025 - Futures long positions: 2,396 - Futures short positions: 7,719 - Currency forwards: 7,370 - Swaps: 1,939 - Options on futures: 5 - April 30, 2024 - Futures long positions: 2,192 - Futures short positions: 5,019 - Currency forwards: 5,262 - Swaps: 2,160 - Options on futures: 11 ### Fair value hierarchy classification - Recurring fair value measurements for the Fixed-Income Subaccount (in millions of SDRs): - April 30, 2025: Level 1 335; Level 2 29,388; Level 3 — - Total April 30, 2025: 29,723 - April 30, 2024: Level 1 210; Level 2 24,373; Level 3 — - Total April 30, 2024: 24,583 ### Asset management and operational notes - Assets are invested by external managers, except for investments with the BIS and short-term investments (residual cash balances). - Group 2 assets (eligible only for Tranche 1) are subject to the 40 percent maximum of the Fixed-Income Subaccount portfolio. - The average duration constraint and tranche management approaches aim to balance liquidity, return, and risk across the Fixed-Income Subaccount. *Source: General Department Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024, International Monetary Fund.* ### 12. Other assets and liabilities ### 12. Other assets and liabilities ### Other assets - Other assets comprised the following (in millions of SDRs): - Basic charges receivable: 777 (April 30, 2025); 1,161 (April 30, 2024) - Surcharges receivable: 244 (April 30, 2025); 348 (April 30, 2024) - Investment trades and other receivables (see Note 7): 347 (April 30, 2025); 266 (April 30, 2024) - Accrued interest and dividends on investments (see Note 7): 223 (April 30, 2025); 176 (April 30, 2024) - Accrued interest on SDR holdings: 134 (April 30, 2025); 198 (April 30, 2024) - Miscellaneous receivables and prepaid expenses: 136 (April 30, 2025); 139 (April 30, 2024) - Total other assets: 1,861 (April 30, 2025); 2,288 (April 30, 2024) ### Other liabilities - Other liabilities comprised the following (in millions of SDRs): - Remuneration payable on members’ reserve tranche position: 771 (April 30, 2025); 1,091 (April 30, 2024) - Refundable commitment fees on active arrangements: 201 (April 30, 2025); 244 (April 30, 2024) - Investment trades and other payables (see Note 7): 968 (April 30, 2025); 457 (April 30, 2024) - Derivative liabilities (see Note 7): 197 (April 30, 2025); 54 (April 30, 2024) - Miscellaneous payables: 119 (April 30, 2025); 129 (April 30, 2024) - Total other liabilities: 2,256 (April 30, 2025); 1,975 (April 30, 2024) ### Key takeaway - Net position of other assets versus other liabilities shifted from a net asset balance of (2,288 − 1,975) = 313 in 2024 to a net liability balance of (1,861 − 2,256) = −395 in 2025 (figures presented individually above). --- ### 13. Borrowings ### Overview - The GRA can borrow to temporarily supplement quota resources, primarily through the NAB as its main standing borrowing arrangement, and also under bilateral borrowing agreements (loan and note purchase agreements). ### 13.1 New Arrangements to Borrow (NAB) - NAB characteristics and status: - NAB is a standing set of credit arrangements with 40 participants, all effective at April 30, 2025, and 2024. - Available balances under effective NAB commitments at April 30, 2025, and 2024 amounted to SDR 364.4 billion (see Schedule 4). - NAB periods were renewed periodically; a NAB reform approved in January 2020 doubled NAB commitments in aggregate and set a new NAB period through the end of 2025, taking effect on January 1, 2021. - In July 2024, the Executive Board approved a renewal of the NAB for a new period from January 1, 2026, through December 31, 2030. - Activation conditions: consent of participants representing 85 percent of total NAB credit arrangements of participants eligible to vote and approval of the Executive Board. - The NAB was not activated at April 30, 2025, and 2024. - As part of the general conditions for effectiveness of the proposed quota increase, NAB credit arrangements are required to be rolled back to lower amounts to maintain IMF lending capacity when combined with quota increases and planned expiration of bilateral borrowing agreements. - Claims under the NAB are encashable on demand by participants, subject to certain conditions. - There were no outstanding borrowings under the NAB at April 30, 2025, and April 30, 2024. ### 13.2 Bilateral Borrowing Agreements (BBAs) - BBAs role and status: - BBAs serve as a third line of defense after IMF quotas and NAB resources. - Current BBAs have been in effect since January 1, 2021, under a framework established in March 2020. Their initial term through end-December 2023 was extended to end-December 2024 during the financial year ended April 30, 2024. - In March 2024, transitional arrangements were approved to extend 2020 BBAs until quota increases under the Sixteenth General Review of Quotas become effective, via targeted amendments that: - (i) extend terms until general effectiveness conditions are met, with individual amended BBAs providing for a maximum term of end-2027 at creditors’ request; - (ii) close the 2020 BBAs for future drawings once general effectiveness conditions are met; and - (iii) provide for repayment of any claims under the 2020 BBAs upon a relevant member’s full payment of its quota increase under the Sixteenth General Review of Quotas. - Activation conditions for BBAs: IMF resources otherwise available for financing must have fallen below a threshold of SDR 100 billion and either the NAB is activated or there are no available uncommitted NAB resources; activation requires approval by bilateral creditors representing 85 percent of the total credit amount committed. - Lenders’ commitments under effective borrowing agreements: - SDR 118.5 billion (US$160.6 billion) at April 30, 2025 - SDR 141.7 billion (US$186.7 billion) at April 30, 2024 (see Schedule 5) - Claims under BBAs are encashable on demand by lenders, subject to certain conditions. - There were no outstanding borrowings under the BBAs at April 30, 2025, and 2024. --- ### 14. Quota subscriptions and reserve tranche positions ### 14.1 Quota subscriptions - Quotas provide primary IMF resources and determine voting power, SDR allocation share, and access to IMF resources. - The IMF conducts a general review of members’ quotas at intervals of not more than five years. - Fourteenth General Review of Quotas: - Became effective in January 2016. - At April 30, 2025, and 2024, 187 members had consented and paid in full quota increases amounting to SDR 238.0 billion. - Amount of quota payments received at April 30, 2025 represents over 99 percent of the total quota increases for which members were eligible at January 26, 2016 (SDR 238.8 billion). - No quota subscription payments under the Fourteenth General Review were made during the financial years ended April 30, 2025, and 2024. - Sixteenth General Review of Quotas: - On November 7, 2023, Executive Board proposed completion leading to a 50 percent quota increase allocated to members in proportion to their quota amounts as at November 7, 2023, accompanied by rollback in NAB resources and expiration of bilateral borrowing agreements. - Effectiveness conditions: (i) members having no less than 85 percent of the total of quotas on November 7, 2023, consent in writing to increases; and (ii) required consents from NAB participants for rollback effectiveness are received. - Deadlines for consents: initially November 15, 2024; extended to May 15, 2025; further extended on May 9, 2025 to November 15, 2025. - Membership change: - On October 21, 2024, the Principality of Liechtenstein became the 191st member with an initial quota of SDR 100 million, paid in full during the financial year ended April 30, 2025. ### 14.2 Reserve tranche positions - Reserve tranche is the difference between a member’s quota subscription and the GRA’s holdings of its currency (excluding holdings reflecting use of GRA credit and administrative balances); it is a liquid claim encashable on representation of balance of payments need. - Members’ reserve tranche positions (in millions of SDRs): - Quota subscriptions: 476,372 (April 30, 2025); 476,272 (April 30, 2024) - Total currency holdings: 453,141 (April 30, 2025); 453,783 (April 30, 2024) - Less: GRA credit outstanding: (91,665) (April 30, 2025); (90,801) (April 30, 2024) - Less: Administrative balances: (107) (April 30, 2025); (109) (April 30, 2024) - Adjusted currency holdings: 361,369 (April 30, 2025); 362,873 (April 30, 2024) - Reserve tranche positions: 115,003 (April 30, 2025); 113,399 (April 30, 2024) --- ### 15. Reserves of the General Resources Account (GRA) ### 15.1 Reserves of the GRA - GRA reserves consist of the Special Reserve and the General Reserve. - The General Reserve may be used inter alia to meet capital losses and operational deficits or for distribution to IMF members. - The Special Reserve can be used for the same purposes except distribution to members. - Reserve balances at April 30: - Special Reserve: SDR 18,621 million (2025); SDR 17,382 million (2024) - General Reserve: SDR 14,880 million (2025); SDR 14,880 million (2024) ### 15.2 Income disposition and distribution - Executive Board determines annual placement of GRA net income into reserves and any distributions. Net losses are charged against the Special Reserve per Executive Board decision. - GRA net income/losses for disposition include: (i) total income of the GRA; (ii) transfers from the IA as approved by the Executive Board; and (iii) remeasurement of net assets/liabilities under retirement benefit plans. - Income and transfers (in millions of SDRs): - Balance at April 30, 2023: - Special Reserve: Income 12,486; Remeasurement 2,022; Total 14,508 - General Reserve: Income 12,626; Remeasurement 1,020; Total 13,646 - For financial year ended April 30, 2024: - Net income of the GRA: Special Reserve 846; General Reserve 845 - Transfers of net investment income from the IA: Special Reserve 388; General Reserve 389 - Remeasurement of retirement benefit plans: Special Reserve 1,640; General Reserve 0 - Balance at April 30, 2024: - Special Reserve: 13,720 (Income) + 3,662 (Remeasurement) = 17,382 - General Reserve: 13,860 (Income) + 1,020 (Remeasurement) = 14,880 - For financial year ended April 30, 2025: - Net income of the GRA: Special Reserve 0; General Reserve 1,229 - Transfers of net investment income from the IA: Special Reserve 920; General Reserve 151 - Remeasurement of retirement benefit plans: Special Reserve 319; General Reserve 0 - Distribution: General Reserve (1,380) - Balance at April 30, 2025: - Special Reserve: 14,640 (Income) + 3,981 (Remeasurement) = 18,621 - General Reserve: 13,860 (Income) + 1,020 (Remeasurement) = 14,880 - IA transfers to GRA: - Total of SDR 1,071 million of net investment income transferred from the IA to the GRA in April 2025: - SDR 924 million from the Fixed-Income Subaccount - SDR 147 million from the Endowment Subaccount - SDR 777 million transfer from the IA during the financial year ended April 30, 2024 reflected Fixed Income Subaccount net investment income of SDR 783 million offset by retained loss of SDR 6 million. ### 15.3 Distribution from the GRA - Multi-Year Distribution Plan (MYDP) approved in October 2024 as part of distribution framework to generate additional subsidy resources for the PRG Trust’s concessional lending. - MYDP establishes a maximum cumulative amount of SDR 6.9 billion of GRA resources from net income and/or General Reserve to be achieved through annual Executive Board distribution decisions, subject to adequacy of GRA financial conditions. - April 2025 decision: - Executive Board adopted distribution of SDR 1,380 million of GRA net income to the IPAA, with amounts placed and temporarily held in accordance with the IPAA Instrument. --- ### 16. Charges and fees ### 16.1 Reforms of charges, surcharges, and commitment fees - October 2024 Executive Board reform package (effective November 1, 2024) consists of: - (i) reducing the margin for the basic rate of charge by 40 basis points to 60 basis points; - (ii) increasing the level-based surcharge threshold from 187.5 percent of quota to 300 percent of quota; - (iii) aligning the commitment fee thresholds to the overall annual and cumulative access limits under the GRA (currently 200 and 600 percent of quota); - (iv) reducing the time-based surcharge rate by 25 basis points to 75 basis points. - The reduction of the margin for the basic rate of charge is not considered a modification of terms of credit outstanding. ### 16.2 Rate of charge - Rate of charge = basic rate of charge adjusted for burden-sharing, if applicable. - No burden-sharing adjustments were applicable for the financial years ended April 30, 2025, and 2024. - Margin for the basic rate of charge: - Financial year ended April 30, 2025: 100 basis points from May 1 to October 31, 2024; 60 basis points from November 1, 2024 to April 30, 2025. - Financial year ended April 30, 2024: 100 basis points. - Average rate of charge: - 4.340 percent per annum (financial year ended April 30, 2025) - 5.057 percent per annum (financial year ended April 30, 2024) ### 16.3 Surcharges - Surcharges apply when credit outstanding exceeds specified percentages of quota (level-based) and when credit outstanding is held beyond specific time frames (time-based). - Prior to reforms (May 1, 2024 to October 31, 2024): - Level-based surcharge applied to credit outstanding in excess of 187.5 percent of quota: 200 basis points per annum above the basic rate of charge. - Additional time-based surcharge: 100 basis points per annum after three years (51 months for EFF purchases); SLL purchases not subject to time-based surcharges. - Effective November 1, 2024: - Level-based surcharge threshold increased to 300 percent of quota. - Time-based surcharge rate reduced to 75 basis points per annum. - Total charges income (in millions of SDRs): - Basic charges: 3,826 (2025); 4,775 (2024) - Surcharges — Level-based: 861 (2025); 1,007 (2024) - Surcharges — Time-based: 349 (2025); 422 (2024) - Total surcharges: 1,210 (2025); 1,429 (2024) - Total charges: 5,036 (2025); 6,204 (2024) - The GRA did not have deferred overdue charges during the financial years ended April 30, 2025, and 2024. ### 16.4 Service charges and commitment fees - Service charge: 50 basis points levied on all purchases except reserve tranche purchases (not subject to service charges). - Commitment fee: levied on amount available for financing under an arrangement for each 12-month period; charged based on an upward-sloping three-tier structure and refunded as the member makes purchases; unrefunded amounts at expiration/cancellation recognized as income. - Fee structure (taking into account reforms effective November 1, 2024): - May 1 to October 31, 2024 thresholds and effective November 1, 2024 thresholds with corresponding commitment fees: - Tier 1: Up to 115 percent of quota → Up to 200 percent of quota; 15 basis points - Tier 2: 115 to 575 percent of quota → 200 to 600 percent of quota; 30 basis points - Tier 3: Above 575 percent of quota → Above 600 percent of quota; 60 basis points - SLL arrangements: - Service charge: 21 basis points - Commitment fee: 8 basis points (not refundable when the member makes purchases); commitment fee income recognized on a straight-line basis during arrangement duration. - Service charges and commitment fees (grouped as other charges and fees, in millions of SDRs): - Service charges: 98 (2025); 85 (2024) - Commitment fees: 146 (2025); 225 (2024) - Total other charges and fees: 244 (2025); 310 (2024) *General Department Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024* ### 17. Remuneration of members’ reserve tranche positions ### 17. Remuneration of members’ reserve tranche positions ### Remuneration totals - Remuneration of members’ reserve tranche positions amounted to SDR 3,626 million for the financial year ended April 30, 2025. - Remuneration of members’ reserve tranche positions amounted to SDR 4,488 million for the financial year ended April 30, 2024. ### Unremunerated portion rules - For a member that joined the IMF on or before April 1, 1978, the unremunerated portion is equal to 25 percent of the member’s quota subscription on April 1, 1978 (that part of the quota subscription that was paid in gold prior to the Second Amendment of the IMF’s Articles of Agreement). - For a member that joined the IMF after April 1, 1978, its unremunerated reserve tranche is a percentage of its initial quota equivalent to the ratio of total unremunerated reserve tranches for all other members to their total quota subscriptions when the new member joined the IMF. ### Average remunerated reserve tranche - The average remunerated reserve tranche amounted to SDR 102,523 million during the financial year ended April 30, 2025. - The average remunerated reserve tranche amounted to SDR 110,450 million during the financial year ended April 30, 2024. ### Rate of remuneration and burden-sharing - The rate of remuneration is currently equal to the SDR interest rate. - Burden-sharing adjustments reduce the rate of remuneration, but under the IMF’s Articles of Agreement, the rate of remuneration may be no lower than 80 percent of the SDR interest rate. - There were no burden-sharing adjustments applicable for the financial years ended April 30, 2025, and 2024. - The average rate of remuneration was 3.538 percent per annum for the financial year ended April 30, 2025. - The average rate of remuneration was 4.057 percent per annum for the financial year ended April 30, 2024. ### Administrative expenses (related figures from Note 18) - Administrative expenses (in millions of SDRs): - Personnel: 852 (2025); 816 (2024) - Pension and other long-term employee benefits (Note 11.2): 60 (2025); 189 (2024) - Travel: 99 (2025); 107 (2024) - Other: 269 (2025); 261 (2024) - Subtotal: 1,280 (2025); 1,373 (2024) - Reimbursements: (209) (2025); (199) (2024) - Total: 1,071 (2025); 1,174 (2024) - Reimbursements represent repayment for the expenses incurred in conducting the business of the SDR Department and certain trusts, and accounts administered by the IMF, and for the cost of the investment operations of the SRP and the RSBIA. ### Related party transactions — Reimbursements (Note 19) - The expenses of conducting the business of the SDR Department, trusts administered by the IMF as Trustee, and the Benefit Plans, are paid by the GRA. The SRP and the RSBIA reimburse the GRA for the cost of the investment operations. - At the end of each financial year, reimbursements are made by the SDR Department (through assessments levied on SDR Department participants) and certain trusts and accounts, in accordance with the IMF’s Articles of Agreement and decisions of the Executive Board. - Reimbursements to the GRA consisted of (in millions of SDRs): - SDR Department: 3 (2025); 5 (2024) - SRP and RSBIA: 5 (2025); 5 (2024) - RST administrative costs: 15 (2025); 6 (2024) - Total: 23 (2025); 16 (2024) - In addition to reimbursing the GRA for administrative costs incurred (in the table above), the RST pays the GRA a management fee, which is included in the reimbursements amount in Note 18. - In July 2021, the Executive Board decided to forgo reimbursement by the PRG Trust through the financial year ending April 30, [content truncated in source]. *Source: International Monetary Fund — Financial Statements for the financial years ended April 30, 2025, and 2024.* ### 2026. In October 2024, the Executive Board extended the period of forbearance until April 30, 2031. Expenses of the PRG ### 2025-financial-statements - 2026. In October 2024, the Executive Board extended the period of forbearance until April 30, 2031. Expenses of the PRG ### PRG Trust expenses and forbearance extension - The Executive Board extended the period of forbearance until April 30, 2031 (decision in October 2024). - Expenses of the PRG Trust were estimated at: - SDR 108 million for the year ended April 30, 2025 - SDR 91 million for the year ended April 30, 2024 ### Transfer of resources to targeted trusts (cumulative balances at April 30, 2025) - The General Department transferred resources to the following trusts to provide financial assistance to low-income members. Cumulative transfers from the IMF to the trusts, mainly through the SDA, were: - PRG Trust — Reserve Account: 2,800 (in millions of SDRs) - PRG Trust — Subsidy Accounts: 1,018 (in millions of SDRs) - PRG-HIPC Trust: 1,239 (in millions of SDRs) - CCR Trust: 293 (in millions of SDRs) - Cumulative balances remained unchanged at April 30, 2025, reflecting no transfers during the financial year ended April 30, 2025. ### General Department — Schedule 1: Quota subscriptions, GRA holdings, reserve tranche positions, and credit outstanding (selected entries at April 30, 2025) - Aggregate totals: - Total Quota: 476,372.0 (in millions of SDRs) - GRA’s holdings of currencies: 453,140.7 (in millions of SDRs) - Reserve tranche positions: 115,003.4 (in millions of SDRs) - Credit outstanding — Total: 91,665.3 (in millions of SDRs); Percent of total: 100.00 - Selected member-level entries (member — Quota — GRA’s holdings of currencies — Percent of quota — Reserve tranche position — Credit outstanding): - Afghanistan, Islamic Republic of — 323.8 — 323.6 — 99.9 — 0.2 — — — — - Argentina — 3,187.3 — 43,450.0 — 1363.2 — — — — 40,260.0 — 40,260.0 — 43.92 - Bangladesh — 1,066.6 — 1,916.5 — 179.7 — 134.2 — — 44.4 — — 939.6 — 984.0 — 1.07 - Ecuador — 697.7 — 7,103.1 — 1018.1 — 28.5 — 58.7 — — 6,375.2 — 6,433.9 — 7.02 - Egypt, Arab Republic of — 2,037.1 — 10,389.3 — 510.0 — 273.4 — 1,339.0 — 254.6 — — 7,031.9 — 8,625.5 — 9.41 - Pakistan — 2,031.0 — 8,133.5 — 400.5 — 0.1 — 2,250.0 — — — 3,852.6 — 6,102.6 — 6.66 - Ukraine — 2,011.8 — 12,814.2 — 637.0 — 0.2 — 625.0 — 2,011.8 — — 8,165.8 — 10,802.6 — 11.78 - United States — 82,994.2 — 60,621.0 — 73.0 — 22,373.3 — — — — — — — - Note: "** Less than SDR 50,000 or 0.005 percent." (as flagged in the schedule) ### General Department — Schedule 2: Financial resources and liquidity position (at April 30) - Usable resources (in millions of SDRs): - Usable currencies: 285,002 (2025); 284,276 (2024) - SDR holdings: 17,684 (2025); 18,960 (2024) - Total usable resources: 302,686 (2025); 303,236 (2024) - Commitments and capacity: - Undrawn balances under GRA lending commitments: (72,836) (2025); (79,205) (2024) - Uncommitted usable resources: 229,850 (2025); 224,031 (2024) - Repurchases one-year forward: 9,848 (2025); 18,479 (2024) - Prudential balance: (77,726) (2025); (77,170) (2024) - One-year forward commitment capacity (FCC): 161,972 (2025); 165,340 (2024) - Memorandum items: - NAB resources committed: 364,401 (2025); 364,401 (2024) - Bilateral borrowing agreements: 118,455 (2025); 141,657 (2024) - Quota subscriptions of members that finance IMF transactions: 388,628 (2025); 385,850 (2024) - Liquid liabilities — Reserve tranche positions: 115,003 (2025); 113,399 (2024) ### General Department — Schedule 3: Schedule of arrangements in the GRA for the financial year ended April 30, 2025 (summaries) - Total undrawn balances under arrangements: - Total General Resources Account undrawn balance: 79,205 (April 30, 2024) → Changes net 13,342 → Amount undrawn April 30, 2025: 72,836 (in millions of SDRs) - Stand-By Arrangements — Total undrawn/changes: - Total Stand-By Arrangements: 1,369 (April 30, 2024) (changes (949)) → Amount undrawn April 30, 2025: 419 - Extended Fund Facilities — Totals: - Total Extended Fund Facilities: 22,350 (April 30, 2024) → Changes 22,990 → Amount drawn/undrawn leading to Total: 25,629 (in millions of SDRs) - Flexible Credit Line Arrangements — Totals: - Total Flexible Credit Line Arrangements: 54,555 (April 30, 2024) → Changes (7,768) → Amount undrawn April 30, 2025: 46,788 - Precautionary and Liquidity Line Arrangements — Totals: - Total Precautionary and Liquidity Line Arrangements: 931 (April 30, 2024) → Changes (931) → Amount undrawn April 30, 2025: — ### General Department — Schedule 4: Effective NAB commitments (selected lender commitments at April 30, 2025) - Selected lender amounts committed (in millions of SDRs): - Australia: 4,441 - China: 31,721 - France: 18,958 - Deutsche Bundesbank: 25,780 - Japan: 67,017 - United States: 56,405 - Total: 364,401 ### General Department — Schedule 5: Effective Bilateral Borrowing Agreements (summary at April 30, 2025) - Total effective bilateral borrowing agreements: - Total, in millions of SDRs: 118,455 (2025); 141,657 (2024) - Total, in millions of US dollars: 160,638 (2025); 186,694 (2024) - Selected lender commitments (currency of commitment and amounts in 2025 in millions of SDRs): - Australia (SDR): 1,986 - Canada (SDR): 3,532 - People’s Bank of China (USD): 21,219 (15,647 in SDR equivalent shown) - Government of Japan (USD): 25,847 (19,060 in SDR equivalent shown) - Swiss National Bank (CHF): 3,662 (3,274 in SDR equivalent shown) - Disclosure: The decline in the amount committed under the 2020 Bilateral Borrowing Agreements (BBAs) since April 30, 2024 is anticipated to be temporary pending domestic processes to extend BBAs beyond December 31, 2024; extensions will be retroactive from January 1, 2025 once ratified. ### SDR Department — Auditor’s opinion and financial results for year ended April 30, 2025 - Independent auditor: - Deloitte & Touche LLP — auditor’s report dated June 25, 2025 - Opinion: Unmodified opinion that the financial statements present fairly, in all material respects, the financial position at April 30, 2025, and results of operations for the year then ended in accordance with IFRS Accounting Standards as issued by the IASB. - Key audit points: - Audit conducted in accordance with GAAS and ISAs. - Predecessor auditor issued unmodified opinion on 2024 statements (report dated June 26, 2024). - Auditor conclusion includes evaluation of going concern and other standard audit responsibilities. - SDR Department — Statement of Financial Position (in millions of SDRs): - Total assets: 55,176 (2025); 52,321 (2024) - Components (selected): - Net charges receivable: 416 (2025); 535 (2024) - Allocations: 184,029 (2025); 188,455 (2024) - Holdings: 129,269 (2025); 136,669 (2024) - Allocations in excess of holdings: 54,760 (2025); 51,786 (2024) - Total liabilities: 55,176 (2025); 52,321 (2024) - Holdings in excess of allocations: 33,886 (2025); 29,167 (2024) - Holdings by the IMF’s General Resources Account: 17,684 (2025); 18,960 (2024) - Holdings by prescribed holders: 3,190 (2025); 3,659 (2024) - Financial statements signed on June 25, 2025 by: - Kristalina Georgieva — Managing Director - Bernard Lauwers — Director, Finance Department - SDR Department — Statement of Comprehensive Income (in millions of SDRs): - Operational income: - Net charges from participants with SDR holdings below allocations: 1,933 (2025); 2,102 (2024) - Assessment on SDR allocations: 3 (2025); 5 (2024) - Total operational income: 1,936 (2025); 2,107 (2024) - Operational expenses: - Interest on SDR holdings — total: 1,933 (2025); 2,102 (2024) - Net interest to participants with SDR holdings above allocations: 1,168 (2025); 1,077 (2024) - IMF’s General Resources Account: 646 (2025); 864 (2024) - Prescribed holders: 119 (2025); 161 (2024) - Administrative expenses: 3 (2025); 5 (2024) - Total operational expenses: 1,936 (2025); 2,107 (2024) - Total comprehensive income: — (2025); — (2024) *International Monetary Fund — Financial Statements for the year ended April 30, 2025.* ### 1. Nature of operations ### 2025-financial-statements - 1. Nature of operations ### Role of the SDR - The Special Drawing Right (SDR) is an international interest-bearing reserve asset created by the International Monetary Fund (IMF) in 1969 to supplement other reserve assets. - SDRs are created through allocations by the IMF to participants in the SDR Department and can be held and used by: - participants in the SDR Department; - the IMF through its General Resources Account (GRA); - certain official entities designated by the IMF and referred to as “prescribed holders”. - The IMF may designate as prescribed holders: (i) non-members; (ii) member countries that are not SDR Department participants; (iii) institutions that perform the functions of a central bank for more than one member; and (iv) other official entities. - Uses of SDRs by participants and prescribed holders include: - obtaining currency from other participants and prescribed holders; - acquiring and using SDRs in transactions by agreement; - other operations authorized by the Executive Board, including in the context of IMF Trusts and Administered Accounts’ operations. - The SDR is a potential claim on the freely usable currencies of IMF members; it is not a claim on the IMF. - Freely usable currencies currently classified as such: Chinese renminbi, euro, Japanese yen, British pound, and US dollar. ### Purpose of the SDR Department - The SDR Department was established to conduct all operations and transactions involving SDRs. - All members of the IMF are participants in the SDR Department. - Twenty institutions were prescribed holders at April 30, 2025, and 2024. - Resources of the SDR Department must be held separately from the assets and liabilities of all other IMF accounts and may not be used to meet liabilities, obligations, or losses of the IMF’s General Department or other accounts. - The SDR Department reimburses the General Department annually for expenses incurred in conducting the business of the SDR Department. ### SDR interest and charges - Holders of SDRs (the GRA, participants, and prescribed holders) earn interest on their SDR holdings. - Participants pay charges on their cumulative SDR allocations. - Interest and charges are set at the SDR interest rate. - Participants using more SDRs than their cumulative allocations pay more charges than interest received; participants holding more SDRs than allocations receive more interest than charges paid. - Total SDR interest on SDR holdings equals total charges on SDR allocations in the statements of comprehensive income because total SDR holdings equal total SDR allocations. ### Assessment (SDR Department expenses) - Expenses of conducting the business of the SDR Department are paid by the IMF from the GRA, which is reimbursed annually by the SDR Department. - The SDR Department levies an assessment on all participants in proportion to their cumulative allocations at the end of each financial year. ### Uses of SDRs - Transactions by agreement and prescribed operations: - Executive Board approved a new prescribed operation on May 10, 2024, allowing SDR participants to use SDRs for acquisition of hybrid capital instruments issued by prescribed holders, subject to an overall cumulative limit of SDR 15 billion. - Previously authorized operations: (i) settlement of financial obligations; (ii) loans; (iii) pledges; (iv) transfers as security for performance of financial obligations; (v) swaps; (vi) forward operations; and (vii) donations. - Participants may buy SDRs to discharge obligations to the IMF or replenish holdings; may sell SDRs to adjust reserve composition. - Prescribed holders may enter into SDR sale or purchase transactions with participants or among themselves. - Transactions are generally made through the voluntary trading market. - GRA operations: - Participants can use SDRs in operations with the GRA, including acquisitions of SDRs from the GRA, payment of a portion of quota, payment of charges, and repurchases. - The GRA can use SDRs for purchases, payment of remuneration, payment of interest on GRA borrowings, and repayment of GRA borrowings. - Other IMF-related operations: - As trustee of the Concessional Lending and Debt Relief Trusts and the Resilience and Sustainability Trust (collectively, Trusts), the IMF conducts certain SDR Department transactions through a prescribed holder related to Trusts borrowing for on-lending and receipt of financial contributions. - Administered Accounts may authorize the use of SDRs by participants and prescribed holders. ### Voluntary trading market - The voluntary trading market in SDRs is coordinated by the IMF via voluntary trading arrangements (VTA) with a group of participants and one prescribed holder. - The IMF acts as intermediary, matching participants to meet requirements and preferences of buyers and sellers. - VTAs facilitate purchases and sales of SDRs against freely usable currencies at the official SDR exchange rate for the currency involved. - To date, the voluntary trading market has been sufficiently liquid to absorb demand for sales and acquisitions of SDRs. - If not enough voluntary buyers exist, the IMF’s Articles of Agreement provide a designation mechanism to guarantee SDR liquidity; the designation mechanism was last activated in 1987. ### Allocations and cancellations of SDRs - General allocations: - Board of Governors, on proposal of the Managing Director and with Executive Board concurrence, may provide unconditional liquidity through general allocations of SDRs to participants. - General allocations require support of an 85 percent majority of total voting power of the Board of Governors. - Since 1969 there have been four general allocations: - first (1970–72): SDR 9.3 billion; - second (1979–81): SDR 12.1 billion; - third (2009): SDR 161.2 billion; - fourth (2021): SDR 456.5 billion. - Decisions to allocate SDRs are typically made at the start of “basic periods”; current basic period (12th) is January 1, 2022–December 31, 2026. - Special allocation under the Fourth Amendment: - Fourth Amendment became effective on August 10, 2009, providing for a special one-time allocation of SDR 21.5 billion, which took effect on September 9, 2009. - Cancellation of SDRs: - The IMF has the authority to cancel, in part or in whole, SDRs created under previous allocations; to date there have been no cancellations. ### Basis of preparation and measurement - Financial statements prepared in accordance with International Financial Reporting Standards (IFRS Accounting Standards) issued by the IASB. - Prepared under the historical cost convention and on a going concern basis. - The SDR Department is self-financed and does not have any equity as net cumulative allocations equal SDR holdings. - It holds no cash or cash equivalents; operational income and expenditure are always equal, generating no net income. - Cash flows from operating activities are limited to receipt of charges and assessments and payment of interest and administrative expenses; a statement of cash flows is not presented. - Changes in SDR holdings are shown in Schedule 1. ### Unit of account; SDR valuation basket and exchange rate - Financial statements presented in SDRs, the unit of account. - SDR value determined daily by summing specific amounts of basket currencies in US dollar equivalents on market exchange rates. - IMF generally reviews SDR valuation basket composition at five-year intervals; next review of method of valuation will take place in 2027 unless interim developments justify earlier review. - Weights and amounts of currencies in the SDR basket for years ended April 30, 2025, and 2024: - Chinese renminbi — Weight (in percent) 12.28; Amount 1.0993 - Euro — Weight (in percent) 29.31; Amount 0.37379 - Japanese yen — Weight (in percent) 7.59; Amount 13.452 - British pound — Weight (in percent) 7.44; Amount 0.080870 - US dollar — Weight (in percent) 43.38; Amount 0.57813 - Exchange rate: - At April 30, 2025, SDR 1 was equal to US$1.35611. - At April 30, 2024, SDR 1 was equal to US$1.31793. ### SDR interest rate - SDR interest rate is used to calculate interest on holdings and charges on allocations. - Determined weekly by reference to a weighted average of yields or rates on short-term instruments in money markets of members whose currencies are in the SDR valuation basket: - Chinese renminbi — Three-month benchmark yield for China Treasury bonds as published by the China Central Depository and Clearing Co., Ltd. - Euro — Three-month spot rate for euro area central government bonds with a minimum rating of AA published by the European Central Bank - Japanese yen — Three-month Treasury discount bills - British pound — Three-month Treasury bills - US dollar — Three-month Treasury bills - SDR interest rate is subject to a floor of 0.050 percent and is rounded to three decimal places. - Average SDR interest rate: - 3.538 percent per annum for the financial year ended April 30, 2025. - 4.057 percent per annum for the financial year ended April 30, 2024. ### Use of estimates and judgement - Preparation of financial statements requires judgements, estimates, and assumptions affecting application of accounting policies and reported amounts. - Estimates and underlying assumptions are reviewed on an ongoing basis; revisions recognized in the period revised and any future affected periods. - Most significant estimates and judgements include assessing potential impairment of participants’ net obligations to the SDR Department. ### Summary of significant accounting policies - Financial instruments: - Recognized when the SDR Department becomes party to contractual provisions. - At initial recognition, the SDR recognized as a financial instrument is measured at fair value (best evidenced by transaction amount). - Subsequently, net charges receivables and net interest payables are measured at amortized cost. - Impairment of participants’ net charges receivables: - Net charges due to the SDR Department are assessed for expected credit losses (ECL) using relevant information, including forward-looking information. - An allowance for 12-month or lifetime ECL is recognized depending on whether a significant increase in credit risk has occurred. - Likelihood of credit losses is described as remote given IMF’s relationship with members and multilayered risk management framework; IMF enjoys de facto preferred creditor status. - Debtor positions in the SDR Department do not have maturity dates and could be held until participant withdrawal or liquidation of the SDR Department. - Overdue charges, if any, accrue interest at the SDR interest rate in perpetuity. - The SDR Department has not recognized any impairment losses since inception. - SDR allocations and holdings: - An SDR allocation increases participant’s SDR holdings and allocations by the same amount; cancellation decreases holdings and allocations by same amount. - Allocation or cancellation does not change member’s net position in the SDR Department. - Participants with holdings below allocations have a net obligation presented as an asset; those with holdings above allocations have a net claim presented as a liability. - Interest and charges: - Interest is accrued on holdings; charges levied on cumulative allocations at the SDR interest rate; net result paid or received each quarter. - Charges are levied on unpaid charges; if insufficient SDRs received because charges are overdue, additional SDRs are temporarily created to cover the obligation and reversed when participant settles overdue charges. - Interest and charges are settled by crediting and debiting individual holdings accounts promptly at the beginning of the following quarter. - Assessment: - Expenses of conducting SDR Department business are recognized on an accrual basis; corresponding SDR assessment on allocations is recognized as income. - New and revised IFRS effective in future years: - IFRS 18 “Presentation and Disclosures in Financial Statements” issued April 2024, effective for annual periods beginning on or after January 1, 2027. - IFRS 18 will be adopted by the SDR Department for the financial year ending April 30, 2028; impact of adoption is being assessed. ### Risk management - The SDR Department faces financial and nonfinancial risks and applies the Enterprise Risk Management (ERM) Framework using the three lines model: - First line: - Area, Functional, and Support Departments implement ERM policy, handling risk identification, measurement, treatment, monitoring, and reporting as part of day-to-day operations. - Certain departments have embedded risk management roles (referred to as 1.5 line) overseeing legal, policy formation, and operational support to ensure compliance and manage risks. - Second line: - Office of Risk Management (ORM) provides centralized risk management oversight, develops ERM tools and methodologies, aggregates risk information, and provides independent oversight of first-line assessments. - ORM’s role will increasingly focus on frameworks, oversight, aggregation, and reporting as ERM maturity develops. - Third line: - Office of Internal Audit (OIA) and Independent Evaluation Office (IEO) provide objective and independent assurance to management and the Executive Board on effectiveness of controls and governance through audits and evaluations. - Risk governance: - Committees comprising IMF Management and staff monitor and make decisions in specific risk areas, supporting First Line risk ownership in risk identification, assessment, and treatment. *International Monetary Fund — II. SDR Department Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024.* ### 5. Allocations and holdings ### 5. Allocations and holdings ### Cumulative allocations and participants' net SDR positions (as of April 30, 2025 and April 30, 2024) - Cumulative allocations: - April 30, 2025: 184,029 (Below allocations) / 476,809 (Above allocations) / 660,838 (Total) (in millions of SDRs) - April 30, 2024: 188,455 (Below allocations) / 472,244 (Above allocations) / 660,699 (Total) (in millions of SDRs) - Holdings of SDRs: - April 30, 2025: 129,269 (Below allocations) / 510,695 (Above allocations) / 639,964 (Total) (in millions of SDRs) - April 30, 2024: 136,669 (Below allocations) / 501,411 (Above allocations) / 638,080 (Total) (in millions of SDRs) - Net SDR positions (Cumulative allocations minus Holdings): - April 30, 2025: 54,760 (Below allocations) / (33,886) (Above allocations) / 20,874 (Total) (in millions of SDRs) - April 30, 2024: 51,786 (Below allocations) / (29,167) (Above allocations) / 22,619 (Total) (in millions of SDRs) - Note: The change in the participants with SDR holdings below/above cumulative allocations is the result of the net SDR related transactions for each participant recorded during the year as shown in Schedule 3. ### Membership change and special one-time allocation - The Principality of Liechtenstein became an IMF member and a participant in the SDR Department on October 21, 2024. - Under the IMF’s Articles of Agreement, new participants in the SDR Department receive a special one-time SDR allocation on the 30th day after joining. - Consequently, the participant received a special one-time allocation of SDR 139 million on November 20, 2024. ### Composition of SDR holdings (in millions of SDRs) - April 30, 2025: - Participants: 639,964 - IMF’s General Resources Account: 17,684 - Prescribed holders: 3,190 - Total holdings: 660,838 - April 30, 2024: - Participants: 638,080 - IMF’s General Resources Account: 18,960 - Prescribed holders: 3,659 - Total holdings: 660,699 *IMF Financial Statements, 2025 — Allocations and holdings.* ### 6. Related party transactions ### 6. Related party transactions ### Related party transactions — SDR Department reimbursements - The expenses of conducting the business of the SDR Department, paid by the IMF from the GRA, and reimbursed annually by the SDR Department, were SDR 3 million for the financial year ended April 30, 2025. - The expenses reimbursed were SDR 5 million for the financial year ended April 30, 2024. ### SDR Department — Statements of Changes in SDR Holdings (Financial Years Ended April 30, 2025 and 2024) - Total holdings, beginning of the year (2025 column): Participants 638,080; IMF’s General Resources Account 18,960; Prescribed holders 2,056; Holders-related operations 1,603. - SDR allocation (2025): 139. - Total SDR trades (2025): Participants (1,652); Holders-related operations (431); IMF-related operations 2,083. - Total IMF’s GRA operations (2025): 1,988 (Participants); (1,988) (IMF’s General Resources Account). - Total Other IMF-related operations (2025): 2,257 (Participants); (2,257) (IMF-related operations). - SDR charges (2025): (24,986) (Participants). - SDR interest (2025): 24,141 (Participants); 709 (IMF’s General Resources Account); 78 (Prescribed holders); 58 (Holders-related operations). - SDR assessment (2025): (3) (Participants); 3 (IMF’s General Resources Account). - Total holdings, end of the year (2025 column): Participants 639,964; IMF’s General Resources Account 17,684; Prescribed holders 1,703; Holders-related operations 1,487. - Note: Components may not sum exactly to totals due to rounding. ### SDR Department — Allocations and Holdings of Participants at April 30, 2025 (selected figures) - Total participants: Cumulative allocations 660,837.6; Total holdings 639,963.9. - IMF’s General Resources Account holdings: 17,684.1. - Prescribed holders holdings: 3,189.6. - Total allocations and holdings: 660,837.6 (allocations) and 660,837.6 (holdings). - Summary of participants above allocations: Above allocations total 476,809.0; holdings 510,694.7; Above (below) allocations aggregate 33,885.7. - Summary of participants below allocations: Below allocations total 184,028.6; holdings 129,269.2; Above (below) allocations aggregate (54,759.4). - Examples (participant, cumulative allocations, holdings, percentage of cumulative allocations, above (below) allocations): - United States: 114,861.9; 128,230.3; 111.6; 13,368.4. - China, People’s Republic of: 36,206.2; 40,594.9; 112.1; 4,388.7. - Japan: 41,825.0; 44,303.5; 105.9; 2,478.5. - United Kingdom: 29,452.0; 29,835.9; 101.3; 384.0. - Germany: 37,587.0; 39,958.5; 106.3; 2,371.5. - Saudi Arabia: 16,260.0; 15,761.0; 96.9; (499.0). - Argentina: 5,074.9; 545.2; 10.7; (4,529.7). - India: 16,547.8; 13,705.9; 82.8; (2,842.0). - Ukraine: 3,237.7; 312.1; 9.6; (2,925.6). - Venezuela, República Bolivariana de: 6,111.3; 3,388.0; 55.4; (2,723.3). - Zambia: 1,406.7; 2,064.6; 146.8; 657.9. - Special note: The Principality of Liechtenstein became an IMF member and participant in the SDR Department on October 21, 2024, and received a special one-time SDR allocation on November 20, 2024. ### SDR Department — Changes in Holdings (Financial Year Ended April 30, 2025) — aggregates and notable entries - Total participants: Total holdings at beginning of year 638,080; IMF-related operations 3,536; SDR trades (1,652); Total holdings at end of year 639,964. - IMF’s General Resources Account: Total holdings at beginning of year 18,960; IMF-related operations (1,276); Total holdings at end of year 17,684. - Prescribed holders: Total holdings at beginning of year 3,659; IMF-related operations (2,121); SDR trades 1,652; Total holdings at end of year 3,190. - Total holdings (all): 660,699 (beginning of year); IMF-related operations 139; Total holdings at end of year 660,838. - Selected participant movements (Total holdings at beginning; IMF-related operations; SDR trades; Total holdings at end): - Afghanistan, Islamic Republic of: 332; (10); —; 322. - Albania: 196; (118); 125; 202. - China, People’s Republic of: 40,267; 171; 156; 40,595. - Ukraine: 1,715; 3,483; (4,886); 312. - United States: 125,575; 1,208; 1,447; 128,230. - United Kingdom: 31,053; (506); (711); 29,836. - Liechtenstein, Principality of: —; 139; —; 139. - Note: SDR trades relate to non-IMF transactions (e.g., voluntary trading arrangements market, bilateral arrangements, prescribed operations such as settlement of financial obligations). IMF-related operations include IMF’s General Resources Account, Trust Accounts, Administered Accounts, and SDR Department operations. ### Concessional Lending and Debt Relief Trusts — Audit opinion and highlights (Financial Years Ended April 30, 2025 and 2024) - Auditor’s opinion: Deloitte & Touche LLP issued an unmodified opinion stating that the financial statements present fairly, in all material respects, the financial position of each of the Trusts at April 30, 2025, and the results of their operations and their cash flows for the year then ended, in accordance with IFRS Accounting Standards as issued by the IASB. - Basis for opinion: Audits conducted in accordance with GAAS and ISAs; independent; sufficient and appropriate audit evidence obtained. - Management responsibility: Preparation and fair presentation in accordance with IFRS; assessment of going concern; design and maintenance of internal control. - Auditor’s responsibilities: Obtain reasonable assurance about whether financial statements are free from material misstatement; exercise professional judgment and skepticism; evaluate accounting policies and significant estimates; conclude on going concern. ### Concessional Lending and Debt Relief Trusts — Selected consolidated financial statement figures (in millions of SDRs) - Statements of Financial Position at April 30, 2025 (2024 comparatives shown where provided): - PRG Trust — Total assets: 43,886 (2025) and 37,361 (2024). - Cash and cash equivalents: 399 (2025); 1,404 (2024). - Other assets: 286 (2025); 321 (2024). - Investments: 20,605 (2025); 16,803 (2024). - Loans receivable: 22,596 (2025); 18,833 (2024). - Total liabilities: 35,532 (2025); 29,169 (2024). - Resources: 8,354 (2025); 8,192 (2024). - PRG-HIPC Trust and related Umbrella Account — Total assets: 396 (2025); 391 (2024). - Cash and cash equivalents: 83 (2025); 95 (2024). - Investments: 310 (2025); 292 (2024). - Borrowings: 39 (2025); 51 (2024). - Resources: 357 (2025); 340 (2024). - CCR Trust and related Umbrella Account — Total assets: 98 (2025); 133 (2024). - Cash and cash equivalents: 82 (2025); 125 (2024). - Investments: 15 (2025); 7 (2024). - Borrowings: 15 (2025); 55 (2024). - Resources: 83 (2025); 78 (2024). - Statements of Comprehensive Income and Changes in Resources (Financial Years Ended April 30, 2025 and 2024): - PRG Trust: - Resources, beginning of year: 8,192 (2025). - Net investment income: 1,002 (2025); 710 (2024). - Interest expense: (1,000) (2025); (805) (2024). - Conversion cost: (3) (2025); (6) (2024). - Contributions: 163 (2025); 168 (2024). - Net income/total comprehensive income/change in resources: 162 (2025); 67 (2024). - Resources, end of year: 8,354 (2025); 8,192 (2024). - PRG-HIPC Trust and related Umbrella Account: - Net investment income: 17 (2025); 12 (2024). - Contributions: — (2025); 128 (2024). - Net income/change in resources: 17 (2025); 11 (2024). - Resources, end of year: 357 (2025); 340 (2024). - CCR Trust and related Umbrella Account: - Net investment income: 4 (2025); 5 (2024). - Contributions: 1 (2025); 1 (2024). - Net income/change in resources: 5 (2025); 6 (2024). - Resources, end of year: 83 (2025); 78 (2024). ### Concessional Lending and Debt Relief Trusts — Statements of Cash Flows (Financial Years Ended April 30, 2025 and 2024) - PRG Trust cash flow highlights (in millions of SDRs): - Net cash (used in)/provided by operating activities: (4,582) (2025); (2,760) (2024). - Net cash (used in)/provided by investing activities: (2,775) (2025); (6,455) (2024). - Net cash provided by/(used in) financing activities: 6,352 (2025); 9,956 (2024). - Net increase (decrease) in cash and cash equivalents: (1,005) (2025); 741 (2024). - Cash and cash equivalents, beginning of year: 1,404 (2025); 663 (2024). - Cash and cash equivalents, end of year: 399 (2025); 1,404 (2024). - PRG-HIPC Trust cash flows: - Net cash (used in)/provided by operating activities: 4 (2025); 4 (2024). - Net cash (used in)/provided by investing activities: (4) (2025); 15 (2024). - Net cash provided by/(used in) financing activities: (12) (2025); (5) (2024). - Net increase (decrease) in cash and cash equivalents: (12) (2025); 14 (2024). - Cash and cash equivalents, end of year: 83 (2025); 95 (2024). - CCR Trust cash flows: - Net cash (used in)/provided by operating activities: 5 (2025); 7 (2024). - Net cash (used in)/provided by investing activities: (8) (2025); 53 (2024). - Net cash provided by/(used in) financing activities: (40) (2025); (6) (2024). - Net increase (decrease) in cash and cash equivalents: (43) (2025); 54 (2024). - Cash and cash equivalents, end of year: 82 (2025); 125 (2024). *International Monetary Fund — 2025 Financial Statements: Section 6 and supplemental schedules.* ### 1. Nature of operations ### 1. Nature of operations ### Overview of the Concessional Lending and Debt Relief Trusts - The IMF is Trustee of the following Concessional Lending and Debt Relief trusts: - The Poverty Reduction and Growth Trust (PRG Trust) - The Trust for Special Poverty Reduction and Growth Operations for the Heavily Indebted Poor Countries and Interim Extended Credit Facility (ECF) Subsidy Operations (the PRG-HIPC Trust) and the related Umbrella Account for HIPC Operations (the PRG-HIPC Umbrella Account) - The Catastrophe Containment and Relief Trust (CCR Trust) and the related Umbrella Account for CCR Operations (the CCR Umbrella Account) - Collectively referred to as the “Concessional Lending and Debt Relief Trusts” or the “Trusts”. - Purpose: provide loans on concessional terms and/or debt relief assistance to qualifying low-income member countries. - Assets and liabilities of each Trust are held separately from other IMF administered or proprietary accounts; each Trust’s assets cannot be used to meet liabilities of other accounts or Trusts. - Administrative expenses are paid by the IMF’s General Resources Account (GRA) and reimbursed by each Trust in accordance with the IMF’s Articles of Agreement and Executive Board decisions. - Resources not immediately needed are invested as allowed by individual Trust Instruments. - PRG Trust and the Resilience and Sustainability Trust (RST) resources can be pooled for investment purposes (see Note 5.1). ### PRG Trust — eligibility, facilities, and accounts - Eligibility criteria for PRG Trust lending: - Member’s annual per capita GNI based on the latest available qualifying data is below the IDA operational cut-off, or less than twice the IDA operational cut-off for small countries, or less than five times the IDA operational cut-off for microstates; and - Sovereign does not have capacity to access international financial markets on a durable and substantial basis. - A member is a “small country” if population below 1.5 million. - A member is a “microstate” if population below 200,000. - PRG Trust resources may be made available under: - Financing arrangement (assurance the PRG Trust stands ready during a specified period up to a specified amount) - Outright disbursements (loans disbursed without an arrangement) - PRG Trust facilities: - ECF: three- to five-year arrangements for members with protracted balance of payments problems - SCF: one- to three-year arrangements for actual or potential short-term balance of payments needs - RCF: urgent balance of payments needs provided as outright loan disbursements - Operations conducted through Loan Accounts: - Loan Accounts borrow from lenders at agreed interest rates (typically the SDR interest rate, although some lenders agreed to lower rates) for on-lending. - Shortfalls in interest payments to lenders are covered by transfers from Subsidy Accounts. - Four Loan Accounts: three earmarked accounts that service ECF, SCF, and RCF loans specifically, and a general account that services loans for all PRG Trust facilities. #### PRG Trust — modified interest rate mechanism (approved October 15, 2024) - Purpose: introduce a tiered interest rate structure to target limited concessional resources to the poorest low-income countries. - Applicability: differentiated interest rates apply to all new ECF and SCF credit under new arrangements and new disbursements under the RCF approved on or after May 1, 2025. - Interest rates determined as a percentage of the SDR rate for three borrower groups: - Group 1: PRG Trust-eligible members not ‘presumed blenders’, or countries with per capita GNI at or below the income threshold for PRG Trust eligibility — 0 percent - Group 2A: Presumed blenders and non-PRG Trust-eligible small states with per capita GNI below ten times the IDA operational cutoff — 70 percent of SDR interest rate - Group 2B: Higher-income PRGT-eligible members that meet the income criterion (per capita GNI below ten times the IDA operational cutoff) but are classified as non-presumed blenders due to debt vulnerabilities — 40 percent of SDR interest rate - Monitoring and review: - IMF to closely monitor impact on borrowers - Targeted review expected after three years, ahead of the next comprehensive review of PRG Trust Facilities and Finances that follows the standard 5-year cycle #### PRG Trust — Subsidy Accounts, Reserve, and investment channels - Subsidy Accounts: - Include the General Subsidy Account and earmarked ECF, SCF, and RCF Subsidy Accounts, and the Subsidy Reserve Account. - Purpose: finance cost of subsidized loans (pay difference between interest due on PRG Trust loans and interest due on borrowings in Loan Accounts). - Subsidy Reserve Account: designed to subsidize PRG Trust lending after General and Earmarked Subsidy Accounts are exhausted and to provide additional security to lenders of the Loan Accounts. - Resources of Subsidy Accounts consist of grant contributions, transfers by the IMF from the Special Disbursement Account (SDA), transfers from the Interim Placement Administered Account (IPAA), and net earnings from investments. - General Subsidy Account and Subsidy Reserve Account may receive transfers from the Deposit and Investment Account (DIA) and the Long-Term Investment Account (LTIA). - Subsidy Accounts can borrow from donors and invest proceeds to generate income. - Reserve Account — resources may be used to: - Provide security to lenders of the Loan Accounts in event of delayed or nonpayment by PRG Trust borrowers. - Meet temporary mismatches between repayments from borrowers and payments to lenders. - Reimburse the GRA for administering PRG Trust operations. - Generate investment income to fund the PRG Trust when Subsidy Accounts are depleted. - Resources consist of transfers from the SDA and net earnings from investments. - Deposit and Investment Account (DIA): - Channel for the PRG Trust to borrow resources to generate net investment earnings for Subsidy Reserve Account or, at donor request, the General Subsidy Account. - Resources invested in short duration fixed-income instruments (SDFI). - Long-Term Investment Account (LTIA) — established October 15, 2024: - Centralizes borrowed resources for generating investment earnings under a long-term investment strategy for benefit of Subsidy Reserve Account or, at contributor request, the General Subsidy Account. - Resources invested in SDFI and non-SDFI investments i.e., equities, corporate bonds and emerging market bonds. ### PRG-HIPC Trust and PRG-HIPC Umbrella Account - Purpose: provides assistance to eligible low-income member countries to reduce external debt burden to sustainable levels; assistance may be grants or loans. - Operations: - Conducted through subaccounts within the PRG-HIPC Trust Account and the related Umbrella Account. - PRG-HIPC Trust Account receives and invests resources consisting of grant contributions, transfers from the SDA, and net earnings from investments. - PRG-HIPC Trust can borrow from donors and invest the proceeds. - Once Executive Board approves a grant for debt service relief, respective resources are transferred to the PRG-HIPC Umbrella Account and administered on behalf of the member until conditions for disbursement of debt service relief are satisfied. ### CCR Trust and CCR Umbrella Account - Purpose: provides balance of payments assistance as grants to eligible low-income member countries following qualifying catastrophic natural or public health disasters. - Eligibility: low-income countries eligible for concessional borrowing through the PRG Trust and whose annual per capita GNI is below the IDA operational cut-off (or for a “small country”, less than twice the IDA operational cut-off). - Operations: - Conducted through three Trust Accounts and the related Umbrella Account: two earmarked accounts for Catastrophe Containment and Post-Catastrophe assistance and the General Account containing non-earmarked funds. - Accounts receive and invest grant contributions, transfers from the SDA, and net earnings from investments. - CCR Trust can borrow from donors and invest the proceeds. - Once Executive Board approves a grant for debt service relief, resources are transferred to the CCR Umbrella Account and administered on behalf of the member until disbursement conditions are satisfied. ### Update on geopolitical and global economic developments - Context: after shocks since the global pandemic and a period of stabilization with steady but modest growth, the global economy faces increased uncertainty as governments reorder policy priorities. - Developments and risks: - Global growth forecasts revised downward compared to end of last financial year due to higher effective tariff rates and a highly unpredictable environment. - Global headline inflation expected to decline at a slower pace than previously projected. - Downside risks intensified, driven by escalating trade tensions and financial market adjustments. - Shifts in policy positions or deteriorating sentiment could tighten global financial conditions. - Heightened trade policy uncertainty may further weaken short- and long-term growth prospects. - Reduced international cooperation could undermine progress toward a more resilient global economy. - IMF response: - Periodic review of lending policies, including evaluation of access limits (see Note 4.2.1.1). - PRG Trust continues to manage credit risks per existing risk management framework (see Note 4.1). - Fundraising efforts ongoing to ensure Trusts are adequately financed (see Note 4.2.3.1). - Operational impact as at date of financial statements: - No negative impact of global developments on operational results of the Trusts, including from any impairment analysis of the PRG Trust’s loan portfolio (see Note 6.2). - See Note 2.3 for significant estimates and judgements used in preparation of the Trusts’ financial statements. ### Basis of preparation and measurement - Financial statements prepared in accordance with International Financial Reporting Standards (IFRS® Accounting Standards) issued by the IASB. - Prepared under the historical cost convention, except for revaluation of financial instruments at fair value through profit or loss. - Prepared on basis that the Trusts will continue to operate as going concerns. - Statement of Financial position and Statements of Comprehensive Income and Changes in Resources by account as at April 30, 2025 are presented in Schedule 5 and 6. #### Unit of account and SDR valuation - Financial statements presented in Special Drawing Rights (SDRs). - SDR value determined daily by IMF by summing specific amounts of basket currencies in US dollar equivalents based on market exchange rates. - IMF generally reviews SDR valuation basket composition at five-year intervals. - Weights and amounts of currencies in the SDR basket (Years ended April 30, 2025, and 2024): - Chinese renminbi — Weight (in percent) 12.28 — Amount 1.0993 - Euro — Weight (in percent) 29.31 — Amount 0.37379 - Japanese yen — Weight (in percent) 7.59 — Amount 13.452 - British pound — Weight (in percent) 7.44 — Amount 0.080870 - US dollar — Weight (in percent) 43.38 — Amount 0.57813 - Next review of method of valuation of the SDR will take place in 2027, unless interim developments justify an earlier review. - At April 30, 2025, SDR 1 was equal to US$1.35611 (US$1.31793 at April 30, 2024). #### SDR interest rate - Used to calculate interest on certain cash balances and borrowings and provides basis for setting interest levied on PRG Trust loans receivable and most borrowings in PRG Trust’s Loan Accounts. - Determined weekly by reference to a weighted average of yields or rates on short-term instruments in money markets of members whose currencies are in the SDR basket: - Chinese renminbi — Three-month benchmark yield for China Treasury bonds as published by the China Central Depository and Clearing Co., Ltd. - Euro — Three-month spot rate for euro area central government bonds with a minimum rating of AA published by the European Central Bank - Japanese yen — Three-month Treasury discount bills - British pound — Three-month Treasury bills - US dollar — Three-month Treasury bills - SDR interest rate is subject to a floor of 0.050 percent and is rounded to three decimal places. - Average SDR interest rate: - 3.538 percent per annum during financial year ended April 30, 2025 - 4.057 percent per annum during financial year ended April 30, 2024 ### Use of estimates and judgement - Preparation of financial statements requires management judgements, estimates, and assumptions affecting reported amounts of assets, liabilities, income, and expenses; actual results may differ. - Estimates reviewed on an ongoing basis; revisions recognized in period of revision and future periods affected. - Most significant estimates and judgements include: - Expected credit losses (ECL) measurement for PRG Trust loans receivable (see Notes 3.1, 3.2.3, and 6.2) - Fair value measurement of financial instruments (see Notes 3.3 and 10) ### Summary of significant accounting policies — Financial instruments - Financial instruments include financial assets and financial liabilities described in Note 3.2. - Measurement at initial recognition: - Recognized when Trusts become party to contractual provisions. - Settlement date accounting for all financial instruments except investments and derivatives held at fair value through profit or loss (FVTPL), which use trade date accounting. - At initial recognition, measured at fair value evidenced by transaction amount. - Derecognition: - Financial assets derecognized when contractual rights to receive cash flows expire, or transferred and either (i) risks and rewards substantially transferred, or (ii) neither transferred nor retained but control not retained. - Financial liabilities derecognized when extinguished (discharged, canceled, or expires). - Classification and subsequent measurement of financial assets: - Determined by business model and contractual cash flow characteristics. - Financial assets held for collection of contractual cash flows where cash flows represent solely payments of principal and interest measured at amortized cost; interest income recognized using effective interest method; gains/losses on derecognition recognized in statements of comprehensive income. - Financial assets held for collection and for selling with cash flows solely payments of principal and interest measured at FVOCI; Trusts did not have FVOCI assets during financial years ended April 30, 2025, and 2024. - Other financial assets including derivatives measured at fair value with changes recognized as FVTPL. - Impairment: - At each reporting date, Trusts assess forward-looking ECL for financial assets at amortized cost and undrawn balances under lending commitments. - ECL measurement reflects: (i) unbiased and probability-weighted amount determined by evaluating a range of possible outcomes; (ii) time value of money; and (iii) reasonable and supportable information available without undue cost or effort about past events, current conditions, and forecasts of future economic conditions. - If ECL recognized, recorded as impairment allowances for assets at amortized cost and as liability provision for undrawn commitments. - For credit-impaired financial assets, interest income calculated by applying effective interest rate to amortized cost (net of impairment allowance). - Classification and subsequent measurement of financial liabilities: - Derivative financial liabilities measured at FVTPL. - All other financial liabilities measured at amortized cost; interest expense recognized using effective interest method. *International Monetary Fund — Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024* ### 3.2 Financial assets and liabilities ### 3.2 Financial assets and liabilities ### Cash and cash equivalents - Cash and cash equivalents are financial assets measured at amortized cost. - They comprise cash on hand and demand deposits and other highly liquid short-term investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. - Held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. - Cash and cash equivalents held within the investment portfolios are not readily available for operational use and are included within short-term investments. - Balances within investment portfolios are managed as part of the Trusts’ investment strategies and are subject to investment mandates and restrictions. - Investment-related activities including purchase, sales, and reinvestment, are excluded from the statements of cash flows. ### Investments - Investments include equity securities, fixed-income securities, short-term investments (cash and cash equivalents held for investment), fixed-term deposits, and derivative assets. - Derivative liabilities are classified as part of other liabilities in the statements of financial position. - Among the Trusts, only the PRG Trust invests in equity securities and derivatives. - Investment portfolios are managed under defined investment strategies and evaluated on a fair value basis. - The business model for the invested portfolios focuses on achieving fair value gains; accordingly, these securities are classified at FVTPL. - A portion of funds may be held in fixed-term and demand deposits pending investment or as an investment decision; these are measured at amortized cost. - Purchases and sales of investments held at FVTPL are recognized on the trade date; corresponding investment trades receivable or payable are recognized in other assets and other liabilities pending settlement. - Investment income comprises: - interest income on investments at amortized cost; - interest and dividend income; and - realized and unrealized gains and losses from FVTPL investments, including currency valuation differences arising from exchange rate movements against the SDR, net of all investment fees. - Interest income from investments is recognized using the effective interest method. - Dividend income is recognized based on the ex-dividend date. ### Loans receivable - Loans receivable are financial assets measured at amortized cost. - They represent financing provided to low-income member countries under the various PRG Trust financing facilities. - Interest income on loans receivable is recognized using the effective interest method. Impairment of PRG Trust loans - The PRG Trust’s impairment assessment is grounded in: - the IMF, as Trustee, having a unique relationship with its member countries, all of which are shareholders; - PRG Trust lending linked to regular reviews of performance under a program of economic policies; - the IMF, as Trustee, employing a comprehensive set of measures to mitigate credit risk; and - the IMF, as Trustee, having de facto preferred creditor status. - These factors reduce the likelihood of the PRG Trust incurring credit losses. - The PRG Trust has not recognized any impairment losses since inception. - The PRG Trust’s credit portfolio consists of a relatively small number of exposures to low-income member countries; a statistical PD/LGD modeling approach is neither feasible nor appropriate. - External credit risk ratings are not relied upon; the PRG Trust does not produce internal credit rating grades. - Credit risk is assessed holistically on a member-by-member basis using qualitative and quantitative considerations, such as program status, cooperation on policy implementation, timely settlement, and forward-looking capacity to repay. Expected Credit Loss (ECL) model and key judgements - The PRG Trust has developed an ECL model based on changes in credit quality since initial recognition, with credit quality classified as Stage 1, Stage 2, or Stage 3. - Stage 1: No significant increase in credit risk since initial recognition; ECL measured as a portion of lifetime ECL that result from default events possible within the next 12 months. - Stage 2: Credit risk has increased significantly since initial recognition; ECL measured on a lifetime basis. - Stage 3: Credit-impaired; ECL measured on a lifetime basis. - Definition of default and credit-impaired: - A member country is considered in default when it is six months or more overdue in settling its financial obligations to the PRG Trust. - This rebuts the presumption that default occurs no later than 90 days past due. - A loan is considered credit-impaired when the obligation has defaulted. - Significant increase in credit risk: - Assessed on a member-by-member basis by comparing the risk of default at the reporting date with the risk of default at the date of the most recent disbursement. - Assessment performed at each reporting date using qualitative and quantitative criteria, including overdue obligations, signals of noncooperation, and forward-looking indicators. - Criteria are reviewed at least annually. - The assessment does not rely on any single factor and may rebut the presumption of significant increase in credit risk when contractual payments are more than 30 days past due. - During the financial years ended April 30, 2025, and 2024, the PRG Trust did not have any member country more than 30 days past due. - Low credit risk: - A member’s credit risk is considered low if (i) it has a low risk of default; (ii) the member has a strong capacity to meet contractual cash flow obligations in the near term; and (iii) adverse long-term changes may, but will not necessarily, reduce the ability to fulfill contractual cash flow obligations. - Measuring ECL: - ECL are determined by comparing expected cash flows with contractual cash flows and discounting expected cash shortfalls at the effective interest rate, which is the interest rate for PRG Trust loans set by the IMF, as Trustee. - ECL are estimated by assessing a range of possible outcomes in light of expected future economic conditions, weighted according to the assessed probability of each outcome. - Financial safeguards integral to the PRG Trust’s structure and operations, such as additional interest on overdue obligations, are considered in ECL measurement. - Write-off policy: - In the unlikely event that a member with outstanding loans to the PRG Trust (i) withdraws from the IMF; (ii) repudiates its outstanding obligations to the PRG Trust; and (iii) has no prospects of recovering amounts due in the foreseeable future, the PRG Trust would recognize the ultimate loss and write off the withdrawn member’s outstanding loan. ### Borrowings - Borrowings are financial liabilities measured at amortized cost and represent financing received from lenders. - Interest expense on borrowings is calculated by applying the effective interest method. ### Fair value measurement - Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. - Measurement presumes the transaction takes place in the principal market or, absent that, the most advantageous market. - A three-level fair value hierarchy is used: - Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. - Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. - Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs). - When inputs span multiple levels, the fair value measurement is categorized based on the lowest-level input that is significant to the measurement. - Valuation techniques used to determine fair value are described in Note 10. ### Foreign currency translation - Transactions denominated in currencies not in SDRs are recorded at the rate of exchange on the date of the transaction. - Assets and liabilities denominated in other currencies are reported using the SDR exchange rate on the date of the financial statements. - Exchange differences arising from settlement of transactions at rates different from those at the originating date are included in total comprehensive income. ### Contributions - Contributions and related transfers are recognized in the statement of comprehensive income and changes in resources, in accordance with the terms of the governing agreements. ### Debt relief assistance - The PRG-HIPC and CCR Trusts provide debt relief assistance to eligible members, which is used by the members to pay their eligible debt service payments to the GRA or PRG Trust. - Debt relief assistance provided in grant form is recognized as an expense after the terms and conditions set out in the respective Trust Instruments are satisfied, including eligible members meeting the debt relief qualification criteria. ### New and revised International Financial Reporting Standards and interpretations effective in future years - IFRS 18 “Presentation and Disclosures in Financial Statements” issued April 2024 by the IASB® will replace IAS 1 “Presentation of Financial Statements”. - Effective for annual periods beginning on or after January 1, 2027. - The standard will be adopted by the Trusts for the financial year ending April 30, 2028. - The impact of the adoption is being assessed. - Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates” issued August 2023 by the IASB®: - Specify how an entity should (i) assess whether a currency is exchangeable; and (ii) determine a spot exchange rate when exchangeability is lacking. - Require disclosure of information to enable users to understand how lack of exchangeability affects financial performance, position, and cash flows. - Became effective for annual periods starting on or after January 1, 2025. - Will be adopted by the Trusts on May 1, 2025. - They are not expected to have an impact on the Trusts’ financial statements. ### Risk management and framework - The Trusts are exposed to various operational and financial risks, including credit, market, and liquidity risks. - Risk management is integrated within the IMF’s Enterprise Risk Management (ERM) Framework, encompassing all enterprise risks including those relating to lending, surveillance, capacity development, and financial risks. - The IMF, as Trustee, utilizes the three lines model for risk management: - First line: - Area, Functional, and Support Departments implement ERM policy within their scope and handle risk identification, measurement, treatment, monitoring, and reporting as part of day-to-day operations. - Embedded Risk Management and Oversight (1.5 line) in certain departments ensures operations align with the Fund’s legal and policy framework. - Second line: - The Office of Risk Management (ORM) serves as the centralized risk management oversight function, developing and ensuring consistent application of ERM tools and methodologies, aggregating risk information, and providing independent oversight of first-line risk assessments. - ORM monitors and supports departments in preparing and documenting risk assessments; as ERM maturity develops, ORM’s support role will reduce and focus will shift to frameworks, oversight, aggregation, and reporting. - Third line: - The Office of Internal Audit (OIA) and the Independent Evaluation Office (IEO) provide objective and independent assurance to management and the Executive Board on the effectiveness of controls and governance processes through regular audits and evaluations. - Risk governance is provided by committees established to monitor and make decisions in specific risk areas, supporting First Line risk ownership; these committees comprise IMF Management and staff. *Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024, Concessional Lending and Debt Relief Trusts.* ### 4.2 Financial assets and liabilities other than investments ### 4.2 Financial assets and liabilities other than investments ### 4.2.1 Credit risk on financial assets and liabilities other than investments - Credit risk arises if borrowers fail to fulfill financial obligations to the Trusts; currently only the PRG Trust is exposed to credit risk on loans receivable and undrawn committed amounts under approved financing commitments. - Credit risk management practices and mitigants: - PRG Trust’s role limits ability to diversify and leads to high credit concentration; financing often provided when other credit sources are unavailable and assistance is frequently to low-income members. - Risk-mitigating policies and safeguards include: - Program design and conditionality, access limits, regular IMF reviews, post-financing assessments, preventive and remedial measures for overdue obligations, and special interest on overdue obligations. - Disbursements made in tranches subject to performance criteria, structural benchmarks, prior actions, and regular IMF reviews. - IMF, as Trustee, has a safeguards policy and a misreporting policy; safeguards assessments of borrowing members’ central banks. - When PRG Trust resources are direct budget financing: disbursements must be deposited at the central bank and an appropriate framework agreement between central bank and government is required. - Fiscal safeguards review is required where exceptional access is requested and at least 25 percent of financing provided by the PRG Trust is expected to be used for direct budget financing. - Access limits: - Two sets of limits: (i) overall limits monitoring total exposure to a member; (ii) facility-specific limits establishing tailored caps for individual GRA and PRG Trust facilities. - Limits reviewed periodically; the last comprehensive review in October, 2024. - A member’s quota represents subscription payments to the GRA, including payments from quota increases. - Credit risk exposure (maximum exposure = carrying value of loans receivable and undrawn lending commitments): - Total carrying value (loans receivable + undrawn commitments): SDR 28,917 million at April 30, 2025; SDR 25,364 million at April 30, 2024. - Loans receivable: SDR 22,596 million at April 30, 2025; SDR 18,833 million at April 30, 2024. - Concentration of PRG Trust loans receivable by region: - Africa: 17,927 (79.3 percent)* at April 30, 2025; 14,502 (77.0 percent)* at April 30, 2024. - Asia and Pacific: 1,648 (7.3 percent)* at April 30, 2025; 1,341 (7.1 percent)* at April 30, 2024. - Europe: 266 (1.2 percent)* at April 30, 2025; 235 (1.3 percent)* at April 30, 2024. - Middle East and Central Asia: 2,266 (10.0 percent)* at April 30, 2025; 2,281 (12.1 percent)* at April 30, 2024. - Western Hemisphere: 489 (2.2 percent)* at April 30, 2025; 474 (2.5 percent)* at April 30, 2024. - Total: 22,596 (100.0 percent)* at April 30, 2025; 18,833 (100.0 percent)* at April 30, 2024. - *Percent = percentage of total loans receivable. - Use of credit by largest users: - Largest user of credit: 2,461 (10.9 percent)* at April 30, 2025; 2,056 (10.9 percent)* at April 30, 2024. - Three largest users of credit: 5,617 (24.9 percent)* at April 30, 2025; 4,683 (24.9 percent)* at April 30, 2024. - Five largest users of credit: 7,958 (35.2 percent)* at April 30, 2025; 6,667 (35.4 percent)* at April 30, 2024. - *Percent = percentage of total loans receivable. - Five largest users of credit and movements (in millions of SDRs): - For financial year ended April 30, 2025 (columns: April 30, 2024 | Disbursements | Repayments | April 30, 2025): - Ghana: 2,056 | 538 | (133) | 2,461 - Congo, Democratic Republic of the: 1,447 | 342 | — | 1,789 - Kenya: 1,180 | 187 | — | 1,367 - Ethiopia, The Federal Democratic Republic of: 134 | 1,214 | — | 1,348 - Zambia: 420 | 573 | — | 993 - Total: 5,237 | 2,854 | (133) | 7,958 - For financial year ended April 30, 2024: - Ghana: 1,246 | 903 | (93) | 2,056 - Congo, Democratic Republic of the: 1,142 | 305 | — | 1,447 - Kenya: 1,008 | 186 | (14) | 1,180 - Uganda: 812 | 181 | — | 993 - Sudan: 992 | — | — | 992 - Total: 5,200 | 1,575 | (107) | 6,668 - Undrawn commitments under arrangements: - At April 30, 2025: undrawn commitments under 29 ECF arrangements amounted to SDR 6,321 million; there were no active SCF arrangements. - At April 30, 2024: undrawn commitments were SDR 6,531 million under 31 ECF arrangements and 1 SCF arrangement. - At April 30, 2025 and 2024, all loans approved by the Executive Board had been disbursed. ### 4.2.2 Market risk on financial assets and liabilities other than investments - Market risk includes interest rate risk and exchange rate risk; it is the risk that fair value of future cash flows will fluctuate due to market price changes. - Interest rate risk: - PRG Trust subsidy resources consist of contributions and investment earnings to cover interest shortfalls between Loan Accounts borrowings and concessional interest rates on loans receivable. - If subsidy resources are inadequate, the PRG Trust instrument allows for an increase in interest rate levied on loans receivable and transfer of investment income from the Reserve Account to the General Subsidy Account, subject to consultations with all creditors to the Loan Accounts. - Exchange rate risk: - Exchange rate risk is mitigated by denominating all assets, liabilities, receipts, and payments in SDRs. ### 4.2.3 Liquidity risk on financial assets and liabilities other than investments - Liquidity risk is the risk of nonavailability of resources to meet financing needs of low-income members and Trusts’ obligations. - Liquidity management: - IMF, as Trustee, conducts regular reviews to determine adequacy of Trust resources to provide assistance and meet obligations. - PRG Trust must have financing available for demand; uncertainties in timing and amount of credit expose PRG Trust to liquidity risk; must stand ready for unexpected needs including encashment of creditor claims under Loan Accounts’ borrowings. - Financing needs are met by PRG Trust Loan Accounts’ borrowings. - Amounts available under borrowing and note purchase agreements in PRG Trust Loan Accounts: SDR 34,216 million at April 30, 2025; SDR 29,687 million at April 30, 2024. - If resources deemed inadequate, PRG Trust can undertake new fundraising rounds; interest shortfalls covered as described in 4.2.2.1. - PRG Trust has a cumulative borrowing limit established by the Executive Board; borrowings above this limit require prior consultation with PRG Trust creditors regarding justification and adequacy of the PRG Trust Reserve Account. - PRG-HIPC and CCR Trusts maintain cash balances for obligations; level of resources for grant assistance periodically monitored; fundraising efforts are underway. - Maturity profile of loans and borrowings: - PRG Trust loans repayment terms: - ECF and RCF: 5½ to 10 years. - SCF: 4 to 8 years. - Repayments in equal semiannual installments. - Scheduled repayments of PRG Trust loans receivable (in millions of SDRs): - Due in less than 1 year: 1,707 (2025); 828 (2024). - Due in 1 to 2 years: 2,274 (2025); 1,707 (2024). - Due in 2 to 3 years: 2,607 (2025); 2,274 (2024). - Due in 3 to 4 years: 2,993 (2025); 2,607 (2024). - Due in 4 to 5 years: 3,545 (2025); 2,971 (2024). - Due in over 5 years: 9,470 (2025); 8,446 (2024). - Total: 22,596 (2025); 18,833 (2024). - Advance repayments: - No advance repayments during financial year ended April 30, 2025. - Advance repayments of SDR 211 million relating to Somalia debt relief assistance were made during financial year ended April 30, 2024. - Borrowings of PRG Trust Loan Accounts: - Repayment periods typically match maturity of loans extended; some drawings may have shorter initial maturities (e.g., six months) extendable by the Trustee up to corresponding Trust loan maturities. - Borrowings of PRG Trust Subsidy Accounts, DIA and LTIA: - Repayable in one installment at maturity dates or upon reaching specific target contributions. - Scheduled repayments summarized (in millions of SDRs) — columns: Loan Account | Long-Term Investment Account¹ | Deposit and Investment Account: - Due in less than 1 year: 9,706 (2025 Loan Account); 7,357 (2024 Loan Account); — (2025 LTIA); 252 (2024 LTIA); — (Deposit & Investment Account 2025/2024). - Due in 1 to 2 years: 1,417 (2025 Loan Account); 1,039 (2024 Loan Account); — | — | —. - Due in 2 to 3 years: 1,684 (2025 Loan Account); 1,417 (2024 Loan Account); 2 (2025 LTIA); — (2024 LTIA); — | 8 (2024 Deposit & Investment Account). - Due in 3 to 4 years: 1,931 (2025 Loan Account); 1,684 (2024 Loan Account); 7 (2025 LTIA); 2 (2024 LTIA); — | — | 8 (2024 Deposit & Investment Account). - Due in 4 to 5 years: 2,203 (2025 Loan Account); 1,931 (2024 Loan Account); 6 (2025 LTIA); 7 (2024 LTIA); —. - Due in over 5 years: 5,654 (2025 Loan Account); 5,404 (2024 Loan Account); 2 (2025 LTIA); 1,039 (2024 LTIA); 3,535 (2025 Deposit & Investment Account); 8,669 (2025 ???) 8,332 (2024 ???). - Total: 22,595 (2025 Loan Account); 18,832 (2024 Loan Account); 17 (2025 LTIA); 1,300 (2024 LTIA); 3,535 (Deposit & Investment Account 2025); 8,677 (2025 ???); 8,340 (2024 ???). - ¹The Long-Term Investment Account was established on October 15, 2024. - Note: Certain table entries reflect the schedule of outstanding borrowings across multiple accounts and years as presented. - Voluntary encashment regime: - Certain creditors of PRG Trust Loan Accounts may seek early repayment of outstanding claims if they allow drawings under their agreements for encashment by other participating creditors; early repayment subject to availability of resources under borrowing agreements. - Creditors of PRG Trust Subsidy Accounts can also seek early repayment in case of balance of payments needs. - Future interest payments on borrowings in the PRG Trust (calculated using interest rate effective at April 30, 2025), PRG Trust Account rows (in millions of SDRs): - Loan Account: - Due in less than 1 year: 578 - Due in 1 to 2 years: 528 - Due in 2 to 3 years: 468 - Due in 3 to 4 years: 399 - Due in 4 to 5 years: 314 - Due in over 5 years: 500 - Total: 2,787 - Long-Term Investment Account: - Due in less than 1 year: 106 - Due in 1 to 2 years: 105 - Due in 2 to 3 years: 105 - Due in 3 to 4 years: 105 - Due in 4 to 5 years: 105 - Due in over 5 years: 2,314 - Total: 2,840 - Deposit and Investment Account: - Due in less than 1 year: 247 - Due in 1 to 2 years: 245 - Due in 2 to 3 years: 245 - Due in 3 to 4 years: 245 - Due in 4 to 5 years: 245 - Due in over 5 years: 3,001 - Total: 4,228 - As of April 30, 2025, there were no deposits in the Subsidy accounts with future interest payment obligations. - Following establishment of the LTIA, interest-bearing deposits contributed by members for investment in PRGT’s long term strategy were transferred from the Subsidy Reserve Account and the General Subsidy Account to the LTIA. - Borrowings of PRG-HIPC and CCR Trusts: - Interest-free and repayable in one installment at maturity dates. - Creditors can seek early repayment in case of balance of payments needs. - Scheduled repayments (in millions of SDRs): - PRG-HIPC Trust Total: 40 (2025); 51 (2024). - Due in less than 1 year: 10 (2025); 17 (2024). - Due in 1 to 2 years: — (2025); 10 (2024). - Due in 3 to 4 years: 7 (2025); — (2024). - Due in 4 to 5 years: 11 (2025); 7 (2024). - Due in over 5 years: 12 (2025); 17 (2024). - CCR Trust Total: 15 (2025); 55 (2024). - Due in less than 1 year: 1 (2025); 49 (2024). - Due in 3 to 4 years: 6 (2025); — (2024). - Due in 4 to 5 years: 8 (2025); 6 (2024). - Due in over 5 years: — (2025); — (2024). ### 4.3 Investments (exposure to credit, market, and liquidity risks) - 4.3.1 Credit risk on fixed-income investments and derivative instruments: - Credit risk management practices: - PRG Trust limits fixed-income investments to instruments with credit rating equivalent to at least BBB– for corporate bonds (limited holdings below BBB– permitted) and BBB+ or higher for other fixed-income investments, except for BIS instruments (unrated), central bank deposits, and uninvested cash balances (short-term investments). - Counterparty risk for derivatives mitigated by exposure limits, credit rating requirements, and collateral requirements. - Carrying amount of fixed-income investments represents maximum exposure to credit risk. - At April 30, 2025, investments rated below minimum credit rating totaled SDR 1 million (no investments rated below minimum at April 30, 2024). - At April 30, 2025, PRG Trust investment portfolio held SDR 17 million in BIS assets and SDR 1,260 million in short-term investments (both not rated); at April 30, 2024 these amounts were SDR 445 million and SDR 1,054 million, respectively. - PRG-HIPC and CCR Trusts limit eligible investments to marketable securities rated at least A; eligible investments include obligations issued by national governments, central banks, supranational institutions, and deposits with commercial banks or national official financial institutions, including the BIS. - Credit risk exposure on fixed-income investments and derivatives: - At April 30, 2025, investments rated below minimum credit rating totaled SDR 1 million (none at April 30, 2024). - Credit risk exposure for fixed-income instruments and short-term investments in the PRG Trust: SDR 18 billion at April 30, 2025; SDR 14 billion at April 30, 2024. - Credit risk exposure for PRG-HIPC and CCR Trusts’ investments limited to BIS obligations (not rated): SDR 310 million (PRG-HIPC) and SDR 15 million (CCR) at April 30, 2025; SDR 292 million and SDR 7 million at April 30, 2024, respectively. - Maximum exposure for derivative instruments equals unrealized gains; credit risk exposure for derivative assets in the PRG Trust: SDR 76 million at April 30, 2025; SDR 74 million at April 30, 2024. - 4.3.2 Market risk on investments: - Market risk includes interest rate, exchange rate, credit spread, and equity price risks; mitigated by diversification, target asset allocation, concentration and exposure limits. - Sensitivity analyses: - Interest rate risk: - PRG Trust investments: a 100 basis point increase/decrease at April 30, 2025 would have resulted in a loss of SDR 318 million and a gain of SDR 339 million, respectively (SDR 261 million loss and SDR 270 million gain at April 30, 2024). - PRG-HIPC Trust investments: a 100 basis point increase/decrease at April 30, 2025 would have resulted in a loss or gain of SDR 4 million, respectively (SDR 4 million loss or gain at April 30, 2024). - Exchange rate risk: - PRG Trust manages exposure by aligning or hedging short-term investments, short-duration fixed-income securities, and corporate bonds with the SDR currency basket and permitting derivatives. - PRG-HIPC Trust aligns fixed-term and demand deposits to SDR basket currencies matching weights; portfolio adjusted periodically; exchange rate risk minimal. - Sensitivity to a 10 percent fluctuation in market exchange rates of SDR basket currencies on PRG Trust investments (gain/(loss) in millions of SDRs): - Chinese renminbi: (17) increase assumption | 18 decrease assumption at April 30, 2025; (14) | 14 at April 30, 2024. - Euro: (50) | 53 at April 30, 2025; (57) | 61 at April 30, 2024. - Japanese yen: (6) | 6 at April 30, 2025; (7) | 7 at April 30, 2024. - British pound: (9) | 9 at April 30, 2025; (12) | 12 at April 30, 2024. - US dollar: 17 | (18) at April 30, 2025; (5) | 6 at April 30, 2024. - Impact on PRG-HIPC Trust is minimal due to alignment to SDR basket with quarterly rebalancing. - Credit spread risk: - PRG Trust: a 100 basis point increase/decrease in credit spreads at April 30, 2025 would have resulted in a loss of SDR 234 million or gain of SDR 237 million, respectively (SDR 175 million loss or SDR 178 million gain at April 30, 2024). - PRG-HIPC Trust: a 100 basis point increase/decrease would have resulted in a loss or gain of SDR 4 million at April 30, 2025 (SDR 4 million loss or gain at April 30, 2024). - Equity price risk: - PRG Trust exposure to equity securities: using MSCI ACWI Index, a 10 percent increase or decrease at April 30, 2025 would have resulted in a gain of SDR 176 million or loss of SDR 176 million, respectively (SDR 166 million gain or loss at April 30, 2024). - 4.3.3 Liquidity risk on investments: - Liquidity management: - Liquidity position monitored with liquidity projections to meet day-to-day servicing needs. - Trusts hold readily marketable short-term financial instruments to meet anticipated liquidity needs and minimize loss risk from liquidating investments. - Maturity profile of investments (short-term investments, fixed-term deposits, fixed-income securities, derivative assets) — totals by Trust (in millions of SDRs): - PRG Trust total: 18,581 at April 30, 2025; 14,912 at April 30, 2024. - Due in less than 1 year: 6,410 (2025); 5,128 (2024). - Due in 1 to 2 years: 3,107 (2025); 2,676 (2024). - Due in 2 to 3 years: 2,530 (2025); 2,422 (2024). - Due in 3 to 4 years: 2,077 (2025); 1,655 (2024). - Due in 4 to 5 years: 1,730 (2025); 1,365 (2024). - Due in over 5 years: 2,727 (2025); 1,666 (2024). - PRG-HIPC Trust total: 310 at April 30, 2025; 292 at April 30, 2024. - Due in less than 1 year: 138 (2025); 133 (2024). - Due in 1 to 2 years: 89 (2025); 81 (2024). - Due in 2 to 3 years: 59 (2025); 62 (2024). - Due in 3 to 4 years: 24 (2025); 16 (2024). - Due in 4 to 5 years: — (2025); — (2024). - Due in over 5 years: — (2025); — (2024). - CCR Trust total: 15 at April 30, 2025; 7 at April 30, 2024. - Due in less than 1 year: 15 (2025); 7 (2024). - No amounts due in 1 to 5 years or over 5 years at April 30, 2025 and 2024. *Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024 — Concessional Lending and Debt Relief Trusts.* ### 5. Investments ### 5. Investments ### 5.1 PRG Trust investments - Investment strategy prior to amendment: geared toward generating a nominal net-of-fees return of 90 basis points above the SDR interest rate over a long-term investment horizon. - Post-amendment (Executive Board approved October 15, 2024): PRG Trust investment assets separated into two portfolios reflecting different investment horizons. - Long-term portfolio: - Investment horizon: at least 10 years. - Objective: generate a margin of 100 basis points above the three-month SDR rate, over the investment horizon. - Target asset allocation: 40 percent in SDFI, 30 percent in corporate bonds, 10 percent in global government bonds, 20 percent in global equities. - Short-term portfolio: - Components: SDFI component and a liquidity component. - Objective: enhance returns and provide liquidity to meet short-term operational needs over a short to medium-term horizon. - Liquidity component limited to BIS deposits, central bank deposits, and short-term investments (residual cash balances), each with a maximum maturity of up to one year and denominated in SDR or currencies included in the SDR basket. - Specific allocation between long-term and short-term portfolios reviewed and adjustable periodically; allocation within the short-term portfolio (SDFI vs liquidity) determined by the Managing Director. - Assets in the new LTIA are invested in PRGT’s long-term investment strategy. - Management and trading: - All investments are managed externally except for investments with the BIS and short-term investments (residual cash balances). - Purchases and sales of securities made at the discretion of external managers, in line with investment guidelines and objectives. - Rebalancing of the long-term strategy performed at least annually to maintain asset allocation. - Pooling and attribution: - Resources of the PRG Trust and the RST invested in the SDFI component are pooled; investment positions and net investment income attributed proportionately to each Trust. - As at April 30, 2025, and 2024, the proportion of fixed-income securities related to the PRGT’s share of the SDFI asset pool was SDR 13.8 billion and SDR 12.7 billion, respectively. - Offsetting: - Investments and derivatives presented on a gross basis; criteria for offsetting not met; Trust does not have a legally enforceable right to offset and does not intend to settle on a net basis. - PRG Trust investments (in millions of SDRs): - At FVTPL: - Short-term investments: April 30, 2025 — 1,260; April 30, 2024 — 1,054 - Equity securities: April 30, 2025 — 2,024; April 30, 2024 — 1,891 - Fixed-income securities: April 30, 2025 — 17,228; April 30, 2024 — 13,339 - Derivative assets: April 30, 2025 — 76; April 30, 2024 — 74 - Total at FVTPL: April 30, 2025 — 20,588; April 30, 2024 — 16,358 - At amortized cost: - Fixed-term deposits: April 30, 2025 — 17; April 30, 2024 — 445 - Total: April 30, 2025 — 20,605; April 30, 2024 — 16,803 - Derivatives fair values and notionals: - Fair values of derivative assets and liabilities at April 30, 2025: assets — SDR 76 million; liabilities — SDR 81 million. - Fair values at April 30, 2024: assets — SDR 74 million; liabilities — SDR 31 million. - Notional values (in millions of SDRs): - Swaps: April 30, 2025 — 771; April 30, 2024 — 927 - Forwards: April 30, 2025 — 5,714; April 30, 2024 — 3,929 - Futures long positions: April 30, 2025 — 1,307; April 30, 2024 — 1,403 - Futures short positions: April 30, 2025 — 3,634; April 30, 2024 — 3,125 - Options: April 30, 2025 — 2 — (table truncates) ### 5.2 PRG-HIPC and CCR Trust investments - Investment strategy: - Aim to enhance returns subject to liquidity requirements and limiting investment loss risk over a short investment horizon (up to three years). - PRG-HIPC assets invested in BIS MTIs with a maximum average duration of three years. - Rebalancing: - Purchases and sales of BIS MTIs result from rebalancing to align to the composition of the 0–3 year government bond index on a quarterly basis. - Currency composition of PRG-HIPC Investment Assets rebalanced quarterly to align to the SDR basket composition. - CCR Trust assets placed in BIS deposits denominated in SDR. - PRG-HIPC Trust investments (in millions of SDRs): - At FVTPL: - Short-term investments: April 30, 2025 — 2; April 30, 2024 — 1 - Fixed-income securities: April 30, 2025 — 273; April 30, 2024 — 261 - Total at FVTPL: April 30, 2025 — 275; April 30, 2024 — 262 - At amortized cost: - Fixed-term deposits: April 30, 2025 — 35; April 30, 2024 — 30 - Total: April 30, 2025 — 310; April 30, 2024 — 292 - CCR Trust deposits at amortized cost: April 30, 2025 — SDR 15 million; April 30, 2024 — SDR 7 million. ### 5.3 Net investment income - Net investment income for the PRG and PRG-HIPC Trusts (in millions of SDRs): - PRG Trust: - Investment income on FVTPL investments: 2025 — 995; 2024 — 654 - Investment income on amortized cost investments: 2025 — 19; 2024 — 63 - Investment fees: 2025 — (12); 2024 — (7) - Net investment income: 2025 — 1,002; 2024 — 710 - PRG-HIPC Trust: - Investment income on FVTPL investments: 2025 — 13; 2024 — 7 - Investment income on amortized cost investments: 2025 — 4; 2024 — 5 - Investment fees: 2025 — —; 2024 — — - Net investment income: 2025 — 17; 2024 — 12 - CCR Trust net investment income: SDR 4 million for the financial year ended April 30, 2025 (SDR 5 million for the financial year ended April 30, 2024) — comprised of interest income on amortized cost investments. ### 6. Loans receivable - Total loans receivable (all trusts aggregated as reported): - At April 30, 2025 — SDR 22,596 million - At April 30, 2024 — SDR 18,833 million - Changes in PRG Trust loans receivable by facility (in millions of SDRs): - Beginning of the year: - 2025: ECF — 11,196; RCF — 7,206; SCF — 431; Total — 18,833 - 2024: ECF — 8,887; RCF — 7,257; SCF — 418; Total — 16,562 - Disbursements: - 2025: ECF — 4,310; RCF — 147; SCF — 134; Total — 4,591 - 2024: ECF — 3,176; RCF — —; SCF — 67; Total — 3,243 - Repayments: - 2025: ECF — (720); RCF — (61); SCF — (47); Total — (828) - 2024: ECF — (867); RCF — (51); SCF — (54); Total — (972) - End of the year: - 2025: ECF — 14,786; RCF — 7,292; SCF — 518; Total — 22,596 - 2024: ECF — 11,196; RCF — 7,206; SCF — 431; Total — 18,833 - Impairment analysis: - PRG Trust performed impairment analysis in accordance with its ECL model (Note 3.2.3). - No loss allowance deemed necessary at April 30, 2025, and 2024. - Analysis performed holistically for each debtor member based on qualitative and quantitative considerations, taking into account relevant current developments, including the impact of geopolitical and global economic developments (Note 1.4). - Results not materially sensitive to reasonable changes in input parameters of the ECL calculation. - Interest on loans receivable: - Interest rate applicable to outstanding PRG Trust loans was zero for the financial years ended April 30, 2025, and 2024. ### 7. Borrowings - Borrowing arrangements: - Trusts borrow on terms agreed between the Trustee and individual lenders. - Borrowings in PRG Trust Loan Accounts provide resources for on-lending to low-income member countries. - Commitments by lenders to PRG Trust Loan Accounts are both revolving and non-revolving and subject to a time limit. - Creditors may earmark loan commitments for a specific Loan Account (ECF, SCF, or RCF) or make them generally available. - Proceeds from borrowings in Subsidy Accounts, LTIA, DIA, PRG-HIPC Trust, and CCR Trust are invested and generate net investment income for operational use in respective Trusts. - Changes in outstanding borrowings in PRG Trust Accounts (in millions of SDRs): - Beginning of the year: - 2025: Loan Account — 18,832; Subsidy Accounts — 1,300; Long-Term Investment Account¹ — —; Deposit and Investment Account — 8,340; Total — 28,472 - 2024: Loan Account — 16,563; Subsidy Accounts — 1,271; Long-Term Investment Account¹ — 682; Deposit and Investment Account — —; Total — 18,516 - Borrowings: - 2025: Loan Account — 4,591; Subsidy Accounts — —; Long-Term Investment Account¹ — 3,535; Deposit and Investment Account — 337; Total — 8,463 - 2024: Loan Account — 3,243; Subsidy Accounts — 35; Long-Term Investment Account¹ — 7,658; Deposit and Investment Account — —; Total — 10,936 - Repayments: - 2025: Loan Account — (828); Subsidy Accounts — (1,283); Long-Term Investment Account¹ — —; Deposit and Investment Account — —; Total — (2,111) - 2024: Loan Account — (974); Subsidy Accounts — (6); Long-Term Investment Account¹ — —; Deposit and Investment Account — —; Total — (980) - End of the year: - 2025: Loan Account — 22,595; Subsidy Accounts — 17; Long-Term Investment Account¹ — 3,535; Deposit and Investment Account — 8,677; Total — 34,824 - 2024: Loan Account — 18,832; Subsidy Accounts — 1,300; Long-Term Investment Account¹ — 8,340; Deposit and Investment Account — —; Total — 28,472 - Note: The Long-Term Investment Account was established on October 15, 2024. - PRG-HIPC and CCR Trust borrowings: - PRG-HIPC outstanding borrowings at April 30, 2025 — SDR 39 million (April 30, 2024 — SDR 51 million); no new borrowings in 2025; repayments amounted to SDR 12 million. - CCR Trust outstanding borrowings at April 30, 2025 — SDR 15 million (April 30, 2024 — SDR 55 million); no new borrowings in 2025; repayments amounted to SDR 40 million. - Interest on outstanding borrowings: - Weighted average interest rate on PRG Trust interest rate borrowings: 2025 — 3.09 percent per annum; 2024 — 3.43 percent per annum. - All PRG-HIPC and CCR Trust borrowings are interest-free. ### 8. Contributions - Contributions financing Trust operations provided by IMF member countries, other donors, the SDA, and Administered Accounts. - Contributions (in millions of SDRs): - PRG Trust: - Bilateral and other donors: 2025 — 163; 2024 — 168 - PRG-HIPC Trust: - Bilateral and other donors: 2025 — —; 2024 — — - Somalia Administered Account: 2025 — —; 2024 — 128 - CCR Trust: - Bilateral and other donors: 2025 — 1; 2024 — 1 - Total contributions: 2025 — PRG Trust 163; PRG-HIPC Trust —; CCR Trust 1. 2024 — PRG Trust 168; PRG-HIPC Trust 128; CCR Trust 1. - Cumulative contributions by member country presented in Schedule 4. ### 9. Debt relief assistance—HIPC initiative - Background: - HIPC Initiative launched in 1996 by the IMF and the World Bank to help relieve the external debt burden of eligible member countries. - Initiative involves coordinated action by the international financial community, including multilateral institutions, to reduce external debt to sustainable levels. - Outcomes: - Since commencement, 37 of 39 member countries eligible or potentially eligible for HIPC Initiative assistance have received grants for debt relief, in full, from the IMF, as Trustee of the PRG-HIPC Trust. - Sudan reached its HIPC Decision Point in June 2021 and received interim HIPC assistance; Sudan currently in the interim period. - During the financial year ended April 30, 2025, no debt relief was granted under the HIPC initiative (SDR 128 million granted during the financial year ended April 30, 2024). - Somalia: - Executive Board and World Bank agreed on December 13, 2023, that Somalia had taken the steps necessary to reach its completion point under the enhanced HIPC Initiative. - As a result, during the financial year ended April 30, 2024, Somalia received full debt relief totaling SDR 250 million covering obligations to the GRA of SDR 39 million and SDR 211 million to the PRG Trust. - Of this amount, SDR 249 million was provided as a grant from the Somalia Administered Account (SAA) with the remaining SDR 1 million coming from Somalia’s Umbrella Account in the PRG-HIPC. ### 10. Fair value measurement - Valuation techniques: - Level 1: - Fair value of publicly traded investments based on quoted market prices in an active market for identical assets without adjustments (closing price for equities and derivative instruments; bid price for fixed-income securities). - Level 2: - Fair value of equity and fixed-income securities not actively traded determined based on significant observable market information (recently executed trades, comparable issuers, yield curves), taking into account inherent risk and terms and conditions. - Fair value of over-the-counter derivative instruments (foreign exchange forwards and currency swaps) determined using pricing models incorporating foreign exchange spot and forward rates and interest rate curves. - Level 3: no Level 3 investments at April 30, 2025 and 2024. - Investments fair value hierarchy (in millions of SDRs): - Recurring fair value measurements April 30, 2025: - PRG Trust: Level 1 — 3,093; Level 2 — 17,495; Total — 20,588 - PRG-HIPC Trust: Level 1 — 2; Level 2 — 273; Total — 275 - Recurring fair value measurements April 30, 2024: - PRG Trust: Level 1 — 2,117; Level 2 — 14,241; Total — 16,358 - PRG-HIPC Trust: Level 1 — 1; Level 2 — 261; Total — 262 - Transfers: - No transfers between Levels 2 and 3 during the financial years ended April 30, 2025 and 2024. - SDR 3 million transferred from Level 1 to Level 2 investments during the financial year ended April 30, 2025 (no transfers from Level 1 to Level 2 at April 30, 2024). - Fixed-term deposits generally short-term and carried at amortized cost, which approximates fair value. - Loans receivable fair value: - Fair value of PRG Trust loans receivable as defined under IFRS 13 “Fair Value Measurement” cannot be determined due to unique characteristics: debtor’s membership relationship with the IMF, the Trustee, and absence of a principal or most advantageous market for PRG Trust loans. *III. Concessional Lending and Debt Relief Trusts Notes to the Financial Statements for the Financial Years Ended April 30, 2025 , and 2024* ### 11. Related party transactions ### 11. Related party transactions ### Trust reimbursements and Executive Board decision - The expenses of conducting the business of the Trusts are paid by the GRA. - At the end of each financial year, certain Trusts may reimburse the GRA in accordance with the IMF’s Articles of Agreement and relevant decisions of the Executive Board. - The Executive Board approved on October 15, 2024, a five-year extension of the suspension of the reimbursement by the PRG Trust to the GRA covering financial years 2027 to 2031. This extends the previous suspension for the financial years 2022 to 2026. - During the financial year ended April 30, 2025, the estimated reimbursement of SDR 108 million by the PRG Trust to the GRA was forgone (SDR 91 million reimbursement foregone by the GRA during the financial year ended April 30, 2024). - There were no reimbursements to the GRA from the PRG-HIPC and CCR Trusts during the financial years ended April 30, 2025, and 2024. ### Cumulative contributions from the IMF to the Trusts (mainly through the SDA) - April 30, 2025 and 2024 (in millions of SDRs): - PRG Trust Reserve Account: 2,800 - PRG Trust Subsidy Accounts: 1,018 - PRG-HIPC Trust: 1,239 - CCR Trust: 293 - Total: 5,350 - During the financial years ended April 30, 2025, and 2024, the PRG Trust Reserve Account did not receive contributions from the IMF. --- ### PRG Trust — Loans, arrangements, resources, and contributions ### Schedule 1: Loans receivable at April 30, 2025 — key totals and notable member balances - Total loans receivable (in millions of SDRs): ECF 14,785.9; RCF 7,292.2; SCF 517.7; Total 22,595.8; Percent of total loans receivable 100.00. - Selected member outstanding balances (in millions of SDRs; Percent of total loans receivable): - Afghanistan, Islamic Republic of: Total 368.9; 1.63 - Bangladesh: Total 665.9; 2.95 - Congo, Democratic Republic of the: Total 1,789.1; 7.92 - Ethiopia, The Federal Democratic Republic of: Total 1,347.7; 5.96 - Ghana: Total 2,461.3; 10.89 - Kenya: Total 1,367.2; 6.05 - Sudan: Total 991.6; 4.39 - Tanzania, United Republic of: Total 966.6; 4.28 - Uganda: Total 992.8; 4.39 - Zambia: Total 992.9; 4.39 - Total loans receivable: 22,595.8. - Note: Components may not sum exactly to totals because of rounding. Vanuatu listed as 0.9 with note "** Less than 0.005percent." ### Schedule 2: PRG Trust — Arrangements for the financial year ended April 30, 2025 (ECF and SCF arrangements) - Total PRG Trust arrangements (in millions of SDRs): - Amount committed: 6,531.2 - Amount drawn April 30, 2025: 6,321.1 - Undrawn/changes: April 30, 2024 amount committed 4,233.5; Changes (includes new arrangements, augmentations, cancellations, expirations, and decrease of access) (4,443.6) - Selected arrangement entries (ECF arrangements, amounts committed and drawn where shown, in millions of SDRs): - Bangladesh (Agreement date January 30, 2023; Expiration date July 29, 2026): Amount committed 822.8; Amount drawn April 30, 2025 353.0. - Congo, Democratic Republic of the (Agreement date January 15, 2025; Expiration date March 14, 2028): Amount committed 1,332.5; Amount drawn April 30, 2025 1,142.4. - Ethiopia, The Federal Democratic Republic of (Agreement date July 29, 2024; Expiration date July 28, 2028): Amount committed 2,556.0; Amount drawn April 30, 2025 1,341.9. - Ghana (Agreement date May 17, 2023; Expiration date May 16, 2026): Amount committed 2,241.9; Amount drawn April 30, 2025 800.9. - Zambia (Agreement date August 31, 2022; Expiration date October 30, 2025): Amount committed 1,271.7; Amount drawn April 30, 2025 278.8. - SCF arrangements: - Rwanda (Agreement date December 14, 2023; Expiration date February 13, 2025): Amount committed 200.3; Amount drawn April 30, 2025 — (fully drawn 133.5 during the year). ### Schedule 3: PRG Trust Loan Accounts — Resources available under borrowing and note purchase agreements at April 30, 2025 - Total amount agreed: 48,774.6 (in millions of SDRs). - Total undrawn balance: 34,216 (in millions of SDRs). - Selected lenders and undrawn balances (in millions of SDRs): - Australia (October 26, 2020 agreement): Amount agreed 500.0; Undrawn balance 229.2. - Banco Central do Brasil (June 1, 2017): Amount agreed 2,000.0; Undrawn balance 1,063.3. - Japan (September 3, 2010): Amount agreed 9,200.0; Undrawn balance 4,159.1. - US Department of the Treasury (September 30, 2024; Expiration date September 30, 2037): Amount agreed 8,119.6; Undrawn balance 7,850.5. - Footnote on U.S. agreement: The U.S agreement provides for a maximum loan amount of US$21 billion of which US$11 billion is available for on-lending as of the reporting date. - Components may not sum exactly to totals because of rounding. ### Schedule 4: PRG, PRG-HIPC, and CCR Trusts — Cumulative contributions at April 30, 2025 (member and IMF-related) - Total member contributions (in millions of SDRs): - PRG Trust General: 2,250.0 - PRG Trust Earmarked Subsidy Accounts: 2,507.4 - PRG Trust Subsidy Reserve Account: 504.8 - Total member contributions: 5,262.2 - Of which Windfall Gold Sales Profits: 2,187.4 - PRG-HIPC Trust: 1,015.7 - CCR Trust: 557.1 - Total IMF-related and other contributions (in millions of SDRs): - Administered Accounts: 159.5 - European Union: 77.8 - General Department (SDA, GRA): 1,018.2 - Total IMF-related and other contributions: 1,255.5 - Of which PRG-HIPC Trust: 1,713.0; CCR Trust: 445.1 (as aggregated in a subsequent line) - Grand total (in millions of SDRs): Total 2,434.7 (PRG General) + 3,578.2 (Earmarked/other) + 504.8 = 6,517.8; Of which Windfall Gold Sales Profits 2,187.4; PRG-HIPC 2,728.7; CCR 1,002.2. - Note: "** Less than SDR 50,000." applies to some small contributor entries. ### Schedule 5: PRG Trust — Statement of Financial Position and Comprehensive Income by Account at April 30, 2025 and 2024 (selected aggregates) - Total assets (in millions of SDRs) at April 30, 2025: 43,886 (2024: 37,361). - Loans receivable: 22,596 (2024: 18,833). - Investments: 8,930 (2024: 16,803). - Total liabilities (in millions of SDRs) at April 30, 2025: 35,532 (2024: 29,169). - Borrowings: 34,824 (2024: 28,472). - Total resources (in millions of SDRs) at April 30, 2025: 8,354 (2024: 8,192). - Statements of Comprehensive Income and Changes in Resources — selected items for financial year ended April 30, 2025 (in millions of SDRs): - Net investment income: 425 (2024: 710). - Interest expense: (288) (2024: (805)). - Contributions: 163 (2024: 168). - Net income (total comprehensive income / changes in resources): 137 (2024: 67). - Resources, end of year: 8,354 (2024: 8,192). ### Schedule 6: PRG-HIPC and CCR Trusts — Financial position and comprehensive income by account at April 30, 2025 and 2024 (selected) - PRG-HIPC Trust and Related Umbrella Account (in millions of SDRs): - Total assets at April 30, 2025: 396 (2024: 391). - Borrowings at April 30, 2025: 39 (2024: 51). - Resources, end of year 2025: 357 (2024: 340). - Net investment income for 2025: 17 (2024: — shown as 17 and prior year totals). - CCR Trust and Related Umbrella Account (in millions of SDRs): - Total assets at April 30, 2025: 98 (2024: 133). - Borrowings at April 30, 2025: 15 (2024: 55). - Resources, end of year 2025: 83 (2024: 78). - Net investment income for 2025: 12 (2024: 4). --- ### Resilience and Sustainability Trust (RST) — financial statements and operations ### Nature, operations, and governance (notes) - The Resilience and Sustainability Trust (RST, or the Trust) was established effective May 1, 2022. - Purpose: to provide affordable long-term financing to support countries undertaking macro-critical reforms to reduce risks to prospective balance of payments stability, including those related to climate change and pandemic preparedness. - The RST complements IMF lending under the General Resources Account (GRA) and the Poverty Reduction and Growth Trust (PRG Trust) by focusing on longer-term structural challenges and longer maturities. - Administration: The Trust is administered by the IMF, as Trustee, with all assets and liabilities held separately from other administered or proprietary accounts of the IMF. - Administrative expenses incurred by the Trust are paid by the GRA of the IMF and reimbursed by the Trust in accordance with the IMF’s Articles of Agreement and relevant decisions of the Executive Board. - The resources of the RST and the PRG Trust are pooled for investment purposes (see Note 5 in the financial statements). - The Trust operates through a Loan Account, a Reserve Account, and a Deposit Account. - Trust Instrument funding rule: the IMF, as Trustee, may only accept a commitment to the Loan Account where the contributor also makes corresponding contributions to the Reserve Account and to the Deposit Account, equal to at least 2 percent and 20 percent, respectively, of its Loan Account commitment amount. Stand-alone contributions (deposits) to the Reserve Account and/or the Deposit Account are permitted. - Eligibility criteria: member’s annual per capita Gross National Income (“GNI”) less than ten times the IDA operational cut-off, or less than twenty-five times the IDA operational cut-off if the member has a population below 1.5 million. The eligibility list shall be reviewed as part of the first comprehensive review of the RST and thereafter synchronized and combined with the reviews of PRGT eligibility on a biannual schedule unless intermediate developments justify an earlier review. ### Statements of Financial Position at April 30, 2025 and 2024 (selected) - Total assets (in millions of SDRs): 14,811 (2024: 12,086). - Cash and cash equivalents: 99 (2024: 218). - Investments: 10,831 (2024: 10,172). - Loans receivable: 3,674 (2024: 1,464). - Total liabilities (in millions of SDRs): 14,172 (2024: 11,679). - Borrowings: 13,737 (2024: 11,234). - Other liabilities: 435 (2024: 445). - Resources (net assets) at April 30, 2025: 639 (2024: 407). - The financial statements were signed by the Managing Director and the Director of Finance on June 25, 2025. ### Statements of Comprehensive Income and Changes in Resources — financial years ended April 30, 2025 and 2024 (selected) - Resources, beginning of year: 407 (2024: 334). - Income (in millions of SDRs): - Net investment income: 506 (2024: 338). - Interest income on loans receivable: 106 (2024: 23). - Service charges: 8 (2024: 6). - Total income: 620 (2024: 367). - Expenses (in millions of SDRs): - Interest expense: (420) (2024: (373)). - Administrative expenses (Note 11): (19) (2024: (10)). - Other expenses: (1) (2024: (1)). - Total expenses: (440) (2024: (384)). - Net income (total comprehensive income): 180 (2024: (17)). - Reserve Account contributions: 52 (2024: 90). - Resources, end of year: 639 (2024: 407). ### Statements of Cash Flows — financial years ended April 30, 2025 and 2024 (selected) - Net cash used in operating activities: (2,538) (2024: (1,782)). - Loan disbursements: (2,209) (2024: (1,464)). - Interest received on loans: 89 (2024: 9). - Interest paid on borrowings: (426) (2024: (331)). - Net cash used in investing activities: (135) (2024: (1,127)). - Acquisition of investments: (205) (2024: (1,127)). - Disposition of investments: 70 (2024: —). - Net cash provided by financing activities: 2,554 (2024: 2,539). - Reserve Account contribution: 52 (2024: 90). - Borrowings: 2,502 (2024: 2,449). - Net decrease in cash and cash equivalents: (119) (2024: (370)). - Cash and cash equivalents, end of year: 99 (2024: 218). ### Audit and governance - Independent Auditor’s Opinion: Deloitte & Touche LLP issued an unmodified opinion that the financial statements of the Resilience and Sustainability Trust present fairly, in all material respects, the financial position at April 30, 2025, and results of operations and cash flows for the year then ended, in accordance with IFRS Accounting Standards as issued by the IASB. - Auditor’s report date: June 25, 2025. - Audit conducted in accordance with GAAS and International Standards on Auditing (ISAs). - Predecessor auditor: other auditors issued an unmodified opinion on the 2024 financial statements (report dated June 26, 2024). *International Monetary Fund — Financial Statements excerpts and supplemental schedules at April 30, 2025 and 2024.* ### 1.1 Loan Account ### 1.1 Loan Account ### Loan Account operations and terms - All lending to eligible members under the Resilience and Sustainability Facility (RSF) is conducted in the Loan Account and funded by drawings from RST borrowing agreements. - The drawdown period for making disbursements of Trust loans spans through November 30, 2030. - Each drawing under a borrowing agreement shall be repaid in accordance with the repayment schedule for Trust loans. - Loans to borrowing members have a maturity of 20 years and a grace period of 10.5 years after the disbursement. - The Loan Account receives interest on loans to borrowers at the Special Drawing Rights (SDR) interest rate plus a margin which varies for three different groups of eligible borrowers. - Margin income on Trust loans that accumulate in the Loan Account is transferred to the Reserve Account on a quarterly basis. ### Interest rate margins for RSF loans - Group A - Description: PRG Trust-eligible members not presumed blenders (countries that can access PRG Trust resources only in conjunction with GRA resources), or countries with per capita GNI at or below the income threshold for PRG Trust eligibility. - Interest rate: SDR interest rate + 55 basis points (capped at 2¼ percent) - Group B - Description: Presumed blenders and non-PRG Trust-eligible small states with per capita GNI below ten times the IDA operational cutoff. - Interest rate: SDR interest rate + 75 basis points - Group C - Description: All other RST eligible countries not in Groups A or B. - Interest rate: SDR interest rate + 95 basis points ### Key operational features - Margin income transfer frequency: quarterly. - Repayment schedule linkage: each drawing repaid per Trust loan repayment schedule. ### Reserve Account (interaction with Loan Account) - Uses of Reserve Account resources: - i. Invest in liquid, high-quality instruments in accordance with guidelines established by the Executive Board; - ii. Meet obligations owed to the lenders to the Loan Account due to a difference in timing or amount of scheduled obligations to lenders and the interest and/or principal repayment of Trust loans; - iii. Pay for the cost of administering the Trust; and - iv. Make distributions to contributors to the Reserve Account. - Primary components of Reserve Account resources: - direct contributions; - payments of service charges by borrowers; - transfers of margin income and other net earnings from the Loan Account; - net earnings from investment of Reserve Account resources; - transfers of net investment income from the Deposit Account upon full repayment of these deposits. - Contributions to the Reserve Account made in connection with a commitment to the Loan Account are not remunerated and are included within resources in the statement of financial position. - Stand-alone deposits to the Reserve Account have a fixed maturity of 10 years and are included within borrowings in the statement of financial position. ### Deposit Account (backstop and features) - Uses of Deposit Account resources: - i. Invest in liquid, high-quality instruments in accordance with guidelines established by the Executive Board; - ii. Make payments of interest and principal repayments to contributors to the Deposit Account; and - iii. Serve as a backstop to the Reserve Account to meet obligations owed to the lenders to the Loan Account in the event of delayed or nonpayment by RST borrowers in extreme tail risk events. - Primary components of Deposit Account resources: - contributors’ deposits; - net earnings from investments of Deposit Account resources. - Borrowings in the Deposit Account are remunerated at interest rates up to the SDR interest rate. - Maturity specifications: - Deposits to the Deposit Account made in conjunction with a Loan Account agreement: maturity date is 20 years after the end of the Loan Account drawdown period (currently, November 30, 2050). - Stand-alone borrowings to the Deposit Account: minimum maturity of 10 years. ### Accounting and risk management linkages - The RST manages its credit risks in accordance with the IMF’s existing risk management framework. - Fundraising efforts are ongoing to ensure the Trust is adequately financed. - As of the date of the financial statements, there had been no negative impact of global developments on the operational results of the Trust. ### Contextual note on financial statement presentation - Statement of Financial position and Statements of Comprehensive Income and Changes in Resources by Account are presented as at April 30, 2025. --- ### 1.4 Update on geopolitical and global economic developments ### Recent shocks and resilience - Events over the past four years cited include: - a once-in-a-century pandemic; - eruption of geopolitical conflicts; - extreme weather events. - Consequences noted: - disrupted supply chains; - energy and food crises; - unprecedented government actions to protect lives and livelihoods. - Overall assessment: the global economy has demonstrated resilience overall, but this masks uneven performance across regions and lingering fragilities. - Trade effects: despite ongoing geopolitical tensions, the impact on global trade has been limited so far; however, a more fragmented global trade landscape could reduce global resilience. ### Outlook and policy response - Level of uncertainty beyond April 30, 2025 is characterized as high. - Further intensification of geopolitical rifts could weigh on trade, investment, and the free flow of ideas; affect long-term growth; threaten supply chain resilience; and create difficult trade-offs for central banks. - In light of uncertainty and a shock-prone environment, the IMF periodically reviews its lending policies, including evaluation of access limits. --- ### 2. Basis of preparation and measurement ### Accounting framework and measurement basis - Financial statements are prepared in accordance with International Financial Reporting Standards (IFRS® Accounting Standards) issued by the International Accounting Standards Board (IASB). - Prepared under the historical cost convention, except for revaluation of financial instruments at fair value through profit or loss (FVTPL). - Prepared on the basis that the Trust will continue to operate as a going concern. ### Unit of account: SDR - Financial statements are presented in SDRs. - The value of the SDR is determined daily by the IMF by summing specific amounts of the basket currencies in US dollar equivalents on the basis of market exchange rates. - IMF reviews the composition of the SDR valuation basket generally at five-year intervals; next review scheduled in 2027 unless interim developments justify earlier review. - SDR basket weights and amounts (Years ended April 30, 2025, and 2024): - Chinese renminbi — Weight (in percent): 12.28; Amount: 1.0993 - Euro — Weight (in percent): 29.31; Amount: 0.37379 - Japanese yen — Weight (in percent): 7.59; Amount: 13.452 - British pound — Weight (in percent): 7.44; Amount: 0.080870 - US dollar — Weight (in percent): 43.38; Amount: 0.57813 - Exchange equivalence: - At April 30, 2025, SDR 1 was equal to US$1.35611. - At April 30, 2024, SDR 1 was equal to US$1.31793. ### SDR interest rate - The SDR interest rate is used to calculate interest on certain cash balances and borrowings and provides the basis for setting interest levied on RST loans receivable and interest calculated on borrowings in the Loan Account. - Determination: weekly by reference to a weighted average of yields or rates on short-term instruments in the money markets of members whose currencies are included in the SDR valuation basket. - Yields or rates used: - Chinese renminbi — Three-month benchmark yield for China Treasury bonds as published by the China Central Depository and Clearing Co., Ltd. - Euro — Three-month spot rate for euro area central government bonds with a minimum rating of AA published by the European Central Bank - Japanese yen — Three-month Treasury discount bills - British pound — Three-month Treasury bills - US dollar — Three-month Treasury bills - Features: - SDR interest rate is subject to a floor of 0.050 percent and is rounded to three decimal places. - Average SDR interest rate: - 3.538 percent per annum during the financial year ended April 30, 2025. - 4.057 percent per annum during the financial year ended April 30, 2024. ### Use of estimates and judgements - Preparation of financial statements requires management judgements, estimates, and assumptions that affect application of accounting policies and reported amounts. - Estimates and assumptions are reviewed on an ongoing basis; revisions recognized in the period of revision and future periods affected. - Most significant estimates and judgements include: - expected credit losses (ECL) measurement for RST loans receivable (see Notes 3.1, 3.2.3, and 6.1); - fair value measurement of financial instruments (see Notes 3.3 and 9). ### Presentation change - Presentational changes made in Note 4.3.1.1 and Note 5 to improve clarity and relevance of investment-related disclosures; changes applied retrospectively for comparability. Total amounts disclosed in the prior financial year remain unchanged though components have been adjusted. --- ### 3. Summary of significant accounting policies (highlights) ### Financial instruments: recognition and measurement - Recognition: financial instruments are recognized when the Trust becomes a party to the contractual provisions of the instrument. - Settlement date accounting used for all financial instruments except investments, which use trade date accounting. - Initial measurement: at fair value best evidenced by the transaction amount. ### Derecognition - Financial assets derecognized when contractual rights expire or transferred and either: - (i) Trust transfers substantially all risks and rewards of ownership; or - (ii) Trust neither transfers nor retains substantially all risks and rewards but has not retained control. - Financial liabilities derecognized when extinguished (discharged, canceled, or expired). ### Classification and subsequent measurement of financial assets - Classification on initial recognition based on business model and contractual cash flow characteristics. - Financial assets held for collection of contractual cash flows where cash flows represent solely payments of principal and interest: measured at amortized cost; interest income included via the effective interest method. - Financial assets held for collection and for selling with cash flows solely payments of principal and interest: measured at FVOCI. (The Trust did not have financial assets at FVOCI during the financial years ended April 30, 2025, and 2024.) - All other financial assets, including derivatives, measured at fair value with changes in FVTPL. ### Impairment - At each reporting date, the Trust assesses on a forward-looking basis the ECL associated with financial assets held at amortized cost and undrawn balances under lending commitments. - ECL measurement reflects: - (i) an unbiased and probability-weighted amount determined by evaluating a range of possible outcomes; - (ii) the time value of money; - (iii) reasonable and supportable information available without undue cost or effort at the reporting date about past events, current conditions, and forecasts of future economic conditions. - If ECL is recognized, it would be recorded as impairment allowances for assets at amortized cost and as a liability provision for undrawn commitments. - For credit-impaired financial assets, interest income is calculated by applying the effective interest rate to amortized cost net of impairment allowance. ### Classification and subsequent measurement of financial liabilities - Derivative financial liabilities measured at FVTPL. - All other financial liabilities measured at amortized cost. - Interest expense from these financial liabilities is included in the statements of comprehensive income and changes in resources using the effective interest method. *Source: Resilience and Sustainability Trust Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024.* ### 3.2 Financial assets and liabilities ### 3.2 Financial assets and liabilities ### Cash and cash equivalents - Cash and cash equivalents are financial assets measured at amortized cost. - They comprise: - cash on hand and demand deposits; and - other highly liquid short-term investments with maturities at acquisition of less than 90 days that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. - Held for meeting short-term cash commitments rather than for investment. - Cash and cash equivalents held within the investment portfolios are included within short-term investments and are managed as part of the Trusts’ investment strategies under investment mandates and restrictions. - Investment-related activities including purchase, sales, and reinvestment, are excluded from the statements of cash flows. ### Investments - Investments are financial assets that include: - short duration fixed-income securities (SDFI); - short-term investments (cash and cash equivalents held for investment); and - liquidity instruments such as deposits with the Bank for International Settlements (BIS). - The Trust’s investment portfolio is managed under a defined investment strategy and its performance is evaluated on a fair value basis. - Business model focuses on achieving fair value gains; accordingly, these securities are classified at FVTPL. - Purchases and sales of investments held at FVTPL are recognized on the trade date; related investment trades receivable or payable are recognized in other assets and other liabilities pending settlement. - Investment income comprises: - interest income on investments at amortized cost; - interest, and realized and unrealized gains and losses from FVTPL investments, including currency valuation differences arising from exchange rate movements against the SDR, net of all trading-related investment fees. - Interest income from investments is recognized using the effective interest method. ### Loans receivable - Loans receivable are financial assets measured at amortized cost and represent financing provided to low-income and vulnerable middle-income member countries under the RSF. - Interest income on loans receivable is recognized using the effective interest method. Impairment of RST loans - The RST’s impairment assessment is grounded in the nature of the Trust’s lending and the IMF’s unique institutional status as Trustee: - The IMF, as Trustee, has a unique relationship with its member countries, all of which are shareholders in the institution. - RST lending under arrangements is linked to regular reviews of performance under a parallel program of economic policies that the member commits to in order to address its balance of payments problem, return to external viability, and secure repayment to the IMF, including as Trustee of the RST. - The IMF, as Trustee, employs a comprehensive set of measures to mitigate credit risk. - The IMF also has de facto preferred creditor status. - These factors significantly reduce the likelihood of the RST incurring credit losses. - The RST’s credit portfolio consists of a relatively small number of exposures, so statistical PD/LGD modeling is neither feasible nor appropriate. - The RST does not rely on external credit risk ratings or internal credit rating grades; credit risk is assessed holistically based on qualitative and quantitative considerations for each debtor member. ECL model and staging - The RST developed a model for ECL estimation based on changes in credit quality since initial recognition; credit quality is classified as Stage 1, Stage 2, or Stage 3. - Stage 1: no significant increase in credit risk since initial recognition — ECL measured as a portion of lifetime ECL resulting from default events possible within the next 12 months. - Stage 2: significant increase in credit risk since initial recognition — ECL measured on a lifetime basis. - Stage 3: credit-impaired — ECL measured on a lifetime basis. - Key judgements and assumptions: (i) Definition of default and credit-impaired - Default is when a member country is six months or more overdue in settling its financial obligations to the Trust; this rebuts the presumption that default occurs no later than 90 days past due. - A loan is considered credit-impaired when the obligation has defaulted. (ii) Significant increase in credit risk - Assessed on a member-by-member basis by comparing the risk of default at the reporting date with the risk of default at the date of the most recent disbursement. - Assessment performed at each reporting date and considers qualitative and quantitative criteria, including overdue obligations to the RST, signals of noncooperation, and forward-looking indicators of capacity to repay. - Criteria are monitored and reviewed for appropriateness at least annually. - The assessment does not rely on any single factor and may rebut the presumption that credit risk has increased significantly when contractual payments are more than 30 days past due. - During the financial year ended April 30, 2025, the RST did not have any member country more than 30 days past due. (iii) Low credit risk - Credit risk is considered low if: (i) a low risk of default; (ii) strong capacity to meet contractual cash flow obligations in the near term; and (iii) adverse long-term changes may, but will not necessarily, reduce the ability to fulfill contractual cash flow obligations. (iv) Measuring ECL - ECL are determined by comparing expected cash flows with contractual cash flows and discounting expected cash shortfalls at the effective interest rate, which is the interest rate for RST loans set by the IMF, as Trustee. - ECL are estimated by assessing a range of possible outcomes in light of expected future economic conditions, weighted according to the assessed probability of each outcome. - Financial safeguards integral to the RST’s financial structure, such as additional interest on overdue obligations, are considered for ECL measurement. Write-off - Under IMF policies, if a member with outstanding loans: (i) repudiates its outstanding obligations to the RST; and (ii) there are no prospects of recovering amounts due in the foreseeable future, the RST would recognize the ultimate loss and the withdrawn member’s outstanding loan to the Trust would be written off. ### Borrowings - Borrowings are financial liabilities measured at amortized cost and represent financing received from contributors. - Interest expense on borrowings is calculated by applying the effective interest method. ### Reserve Account Contribution - Under the Trust Instrument, the IMF, as Trustee, may accept a commitment to the Loan Account only where the contributor also makes contributions to the Reserve Account and deposits to the Deposit Account equal to at least 2 percent and 20 percent, respectively, of its Loan Account commitment amount. - Requirement for corresponding contributions and deposits is designed to provide strong buffers to safeguard against financial risk and ensure high quality and liquidity of contributors’ claims on the RST and underpin RST’s readiness to meet borrowers’ demand. - Stand-alone deposits to the Reserve Account and/or the Deposit Account are permitted. - Contributions to the Reserve Account entitle each contributor to a share of the Trust’s net assets at the termination of the Trust; account resources are distributed to contributors based on their share in the account at liquidation. - The Trust is not obligated to repay any amounts to contributors until the Reserve Account is terminated; the IMF, as Trustee, can decide on early distribution. - These contributions are classified as resources in the statements of financial position, as they represent contributors’ shares in the RST. - Standalone Reserve Account deposits with a fixed maturity date are treated as borrowings and repaid at the maturity date specified in the agreement and the RST Instrument; no interest is paid on these deposits. - If such deposits mature before liquidation of the Reserve Account, lenders will receive the lesser of their original deposit amount and the relative share of their deposit in the Reserve Account. ### Fair value measurement (3.3) - Fair value: the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. - Measurement presumes transaction takes place in the principal market or, absent that, the most advantageous market. - Three-level fair value hierarchy: - Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities the entity can access at the measurement date. - Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, directly or indirectly. - Level 3: Inputs not based on observable market data (unobservable inputs). - When inputs span multiple levels, the measurement is categorized based on the lowest-level input that is significant to the fair value measurement in its entirety. - Valuation techniques used to determine fair value are described in Note 9. ### Foreign currency translation (3.4) - Transactions denominated in currencies other than SDRs are recorded at the exchange rate on the date of the transaction. - Assets and liabilities denominated in other currencies are reported using the SDR exchange rate on the date of the financial statements. - Exchange differences arising from settlement of transactions at rates different from those at the originating date are included in total comprehensive income. ### New and revised IFRS effective in future years (3.5) - IFRS 18 “Presentation and Disclosures in Financial Statements” issued April 2024 will replace IAS 1 “Presentation of Financial Statements”; effective for annual periods beginning on or after January 1, 2027. - The standard will be adopted by the Trusts for the financial year ending April 30, 2028. - The impact of the adoption is being assessed. - Amendments to IAS 21 “The Effects of Changes in Foreign Exchange Rates” issued August 2023 specify how to assess whether a currency is exchangeable and determine a spot exchange rate when exchangeability is lacking, and require disclosures about the effects of lack of exchangeability. - Amendments became effective for annual periods starting on or after January 1, 2025, and will be adopted by the RST on May 1, 2025. - They are not expected to have an impact on the RST’s financial statements. ### Risk management (4.1) - The Trust faces a range of financial and nonfinancial risks; the Enterprise Risk Management (ERM) Framework encompasses all enterprise risks across all IMF activities, including lending, surveillance, capacity development, and financial risks. - The IMF, as Trustee, utilizes the three lines model for risk management: - First line - Area, Functional, and Support Departments: responsible for implementing ERM policy within their scope, including risk identification, measurement, treatment, monitoring, and reporting as part of day-to-day operations. - Embedded Risk Management and Oversight: certain departments have embedded risk management roles (referred to as 1.5 line) to ensure operations align with legal and policy frameworks. - Second line - The Office of Risk Management (ORM): centralized risk management oversight function; develops and ensures consistent application of ERM tools and methodologies, aggregates risk information, and provides independent oversight of first-line assessments. - ORM monitors and supports departments in preparing and documenting risk assessments; as ERM maturity develops, ORM’s support role for preparation and documentation will reduce and focus will shift to frameworks, oversight, aggregation, and reporting. - Third line - The Office of Internal Audit (OIA) and the Independent Evaluation Office (IEO): provide objective and independent assurance to management and the Executive Board on the effectiveness of controls and governance processes through audits and evaluations. - Risk governance is provided by committees established to monitor and make decisions in specific risk areas, supporting First Line risk ownership; these committees comprise IMF Management and staff. *Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024 — Resilience and Sustainability Trust (RST).* ### 4.2 Financial assets and liabilities other than investments ### 4.2 Financial assets and liabilities other than investments ### 4.2.1 Credit risk on financial assets and liabilities other than investments - Credit risk defined: risk of suffering financial losses should the RST’s borrowers fail to fulfill their financial obligations to the Trust. - Sources of credit risk: loans receivable and undrawn committed amounts under approved financing commitments. - Principal financial buffer: the Reserve Account — resources available to fund temporary interest and principal arrears if needed. The Deposit Account serves as a backstop to the Reserve Account. - Risk-mitigating policies and safeguards: - RSF financing must be accompanied by a concurrent GRA or PRG Trust arrangement, or a Policy Support Instrument (PSI). - Concurrent arrangements or PSI must meet “upper credit tranche” (UCT) quality standards. - Other measures: access limits, regular Executive Board reviews, post-financing assessments, preventive and remedial measures for overdue obligations, interest on overdue obligations. - Disbursements under RSF Arrangements made in tranches, subject to conditionality and regular Executive Board reviews; each disbursement is capped at 50 percent of a member’s quota. - Safeguards policy requires that when RST resources are direct budget financing, disbursements be deposited at the central bank and an appropriate framework agreement be in place between the central bank and the government. - Access limits: - Overall access capped at the lower of 150 percent of the member country’s IMF quota or SDR 1 billion. - Access may be increased or decreased subject to Executive Board approval and the maximum overall access cap. - Credit risk exposure (maximum exposure = carrying value of loans receivable and undrawn lending commitments): - SDR 8,770 million at April 30, 2025. - SDR 6,265 million at April 30, 2024. - Loans receivable: - SDR 3,674 million at April 30, 2025. - SDR 1,464 million at April 30, 2024. - Concentration of loans receivable by region (in millions of SDRs and Percent = percentage of total loans receivable): - April 30, 2025: - Africa: 1,008; 27.4 - Asia and Pacific: 333; 9.1 - Europe: 108; 2.9 - Middle East and Central Asia: 982; 26.7 - Western Hemisphere: 1,243; 33.9 - Total: 3,674; 100.0 - April 30, 2024: - Africa: 208; 14.2 - Asia and Pacific: 167; 11.4 - Europe: 31; 2.1 - Middle East and Central Asia: 250; 17.1 - Western Hemisphere: 808; 55.2 - Total: 1,464; 100.0 - Largest users of credit (in millions of SDRs and Percent = percentage of total loans receivable): - April 30, 2025: - Largest user of credit: 938; 25.5 - Three largest users of credit: 2,066; 56.2 - Five largest users of credit: 2,704; 73.6 - April 30, 2024: - Largest user of credit: 383; 26.2 - Three largest users of credit: 1,002; 68.5 - Five largest users of credit: 1,280; 87.4 ### 4.2.2 Market risk on financial assets and liabilities other than investments - Market risk definition: risk that the fair value of future cash flows will fluctuate because of changes in market prices. - Components for non-investment assets/liabilities: interest rate risk and exchange rate risk. - Interest rate risk: - Risk that future net cash flows will fluctuate because of changes in market interest rates. - Reserve Account resources used to cover any shortfall if interest received from borrowers is insufficient to cover interest paid to contributors; Deposit Account serves as backstop. - Exchange rate risk: - Mitigated by denominating all assets, liabilities, receipts, and payments in SDRs. ### 4.2.3 Liquidity risk on financial assets and liabilities other than investments - Liquidity risk defined: risk of nonavailability of resources to meet financing needs of eligible member countries and the Trust’s own obligations. - Liquidity management: - IMF, as Trustee, conducts regular reviews to determine adequacy of Trust resources to provide financial assistance and meet obligations. - Loan Account borrowings meet financing needs; amounts available under current borrowing agreements presented in Schedule 3. - Measures to conserve borrowed resources referenced (see Note 4.2.1.1). - Maturity profile and encashment regimes: - RST loans repayment term: 20 equal semi-annual installments beginning 10.5 years from date of each disbursement. - Repayment periods for Loan Account borrowings are designed to match maturity of loans extended by the RST. - Maturity date of borrowings in the Deposit Account made in conjunction with a commitment to the Loan Account: currently November 30, 2050 (i.e., 20 years after the end of the Loan Account drawdown period). - Creditors participate in encashment regimes allowing early repayment claims subject to availability of resources under borrowing agreements. - Deposit Account resources invested in liquid, high-quality assets to meet encashment requests. - Future interest payments on borrowings in the RST (calculated using the interest rate effective at April 30, 2025) — (in millions of SDRs): - Loan Account / Deposit Account - Due in less than 1 year: 109 / 290 - Due in 1 to 2 years: 110 / 287 - Due in 2 to 3 years: 110 / 287 - Due in 3 to 4 years: 110 / 287 - Due in 4 to 5 years: 110 / 287 - Due in over 5 years: 1,063 / 3,262 - Totals: - Loan Account total: 1,612 - Deposit Account total: 4,700 ### 4.3 Investments (summary of related risk management and positions) - Investments exposed to credit, market, and liquidity risks. - Credit risk on fixed-income investments and derivatives: - Fixed-income investments limited to instruments with credit rating equivalent to at least BBB– (Standard & Poor’s scale), except BIS instruments (not rated), central bank deposits, and short-term investments. - Counterparty risk for derivatives mitigated by exposure limits, credit rating requirements, and collateral requirements. - No investments in the SDFI portfolio were rated below the minimum credit rating at April 30, 2025, and 2024. - SDFI holdings at April 30, 2025: no BIS assets and SDR 213 million in short-term investments (not rated). At April 30, 2024: SDR 248 million BIS assets and SDR 733 million short-term investments (not rated). - Credit risk exposure for investments and derivatives: - Fixed-income instruments and short-term investments credit risk exposure: - SDR 10,787 million at April 30, 2025. - SDR 9,866 million at April 30, 2024. - Derivative assets credit risk exposure: - SDR 44 million at April 30, 2025. - SDR 58 million at April 30, 2024. - Market risk on investments: - Managed by diversification, maximum average duration of three years, aligning currency exposure with the SDR currency basket, and permitting derivatives for hedging, rebalancing, and benchmark replication. - Interest rate sensitivity (April 30, 2025): - A 100 basis point increase in market interest rates would have resulted in a loss of SDR 120 million. - A 100 basis point decrease in market interest rates would have resulted in a gain of SDR 124 million. - Comparable figures at April 30, 2024: loss of SDR 138 million and gain of SDR 139 million using same assumptions. - Credit spread sensitivity (April 30, 2025): - A 100 basis point increase or decrease in credit spreads would have resulted in a loss and a gain of SDR 110 million. - Comparable figures at April 30, 2024: SDR 95 million loss and gain using same assumptions. - Exchange rate risk: - Investments primarily denominated in SDR basket currencies; portfolio currency exposure aligned with SDR basket through hedging and rebalancing; exchange rate risk described as minimal. - Liquidity risk on investments: - Managed via liquidity projections and holding resources in readily marketable short-term financial instruments. - Maturity profile of investments (in millions of SDRs): - April 30, 2025: - Due in less than 1 year: 4,028 - Due in 1 to 2 years: 2,068 - Due in 2 to 3 years: 1,696 - Due in 3 to 4 years: 1,215 - Due in 4 to 5 years: 910 - Due in over 5 years: 914 - Total: 10,831 - April 30, 2024: - Due in less than 1 year: 3,765 - Due in 1 to 2 years: 1,965 - Due in 2 to 3 years: 1,724 - Due in 3 to 4 years: 1,164 - Due in 4 to 5 years: 897 - Due in over 5 years: 657 - Total: 10,172 - Investments and net asset value (in millions of SDRs): - April 30, 2025: - Investments: 10,831 - Investment-related receivables (Note 10): 173 - Investment trade payables (Note 10): (319) - Net asset value: 10,685 - April 30, 2024: - Investments: 10,172 - Investment-related receivables (Note 10): 216 - Investment trade payables (Note 10): (340) - Net asset value: 10,048 - Composition of investments (in millions of SDRs): - April 30, 2025: - At FVTPL: - Short-term investments: 213 - Fixed-income securities: 10,574 - Derivative assets: 44 - Total at FVTPL: 10,831 - At amortized cost: - Fixed-term deposits: — - Total: 10,831 - April 30, 2024: - At FVTPL: - Short-term investments: 733 - Fixed-income securities: 9,133 - Derivative assets: 58 - Total at FVTPL: 9,924 - At amortized cost: - Fixed-term deposits: 248 - Total: 10,172 - Fair values of derivative assets and liabilities: - April 30, 2025: derivative assets SDR 44 million; derivative liabilities SDR 53 million. - April 30, 2024: derivative assets SDR 58 million; derivative liabilities SDR 23 million. - Notional values of derivative instruments (in millions of SDRs): - April 30, 2025: - Swaps: 592 - Forwards: 2,728 - Futures long positions: 973 - Futures short positions: 2,788 - Options: 2 — - April 30, 2024: - Swaps: 112 - Forwards: 2,871 - Futures long positions: 1,076 - Futures short positions: 2,479 - Options: (data truncated) ### 5. Investments — objectives and management - Investment guidelines: - Resources may be invested in a short duration fixed-income strategy and liquidity instruments such as deposits with the BIS. - Investment objective of the SDFI component: achieve investment returns in SDR terms that exceed the 3-month SDR interest rate by a margin of 50 basis points over an investment horizon of three to four years. - Liquidity component limited to BIS deposits, central bank deposits, and short-term investments with maximum maturity up to one year and denominated in SDR or currencies included in the SDR basket. - Allocation between SDFI and liquidity portfolios determined by the Managing Director and may be adjusted periodically. - Management arrangements: - All investments managed externally except investments with the BIS and short-term investments (residual cash balances). - External managers selected by the Investment Oversight Committee. - Use of derivatives permitted for managing interest rate risk, currency hedging, reducing costs for portfolio rebalancing, benchmark replication, and market access. - SDFI resources pooled with PRG Trust resources; investment positions and net investment income attributed proportionately to each Trust. - Offsetting: - Investments and derivatives presented on a gross basis; no legally enforceable right to set off recognized amounts; investment performance monitored using net asset values. ### 5.1 Net investment income - Net investment income (in millions of SDRs): - 2025: - Investment income on FVTPL investments: 506 - Interest income on amortized cost investments: 5 - Investment fees: (5) - Net investment income: 506 - 2024: - Investment income on FVTPL investments: 320 - Interest income on amortized cost investments: 23 - Investment fees: (5) - Net investment income: 338 ### 6 Loans receivable and impairment - Loans receivable: - SDR 3,674 million at April 30, 2025. - SDR 1,464 million at April 30, 2024. - Impairment analysis: - Performed in accordance with the RST’s ECL model (see Note 3.2.3). - No loss allowance deemed necessary at April 30, 2025, and 2024. - Analysis performed holistically using qualitative and quantitative considerations, including geopolitical and global economic developments (see Note 1.4). - Results not materially sensitive to reasonable changes in ECL input parameters. - No overdue obligations at April 30, 2025, and 2024. - Interest on loans receivable: - Interest earned in the Loan Account (SDR interest rate plus a margin); differentiated by borrower groups. - Interest income earned: - SDR 106 million for the financial year ended April 30, 2025. - SDR 23 million for the financial year ended April 30, 2024. - Service charges on disbursements: - Group A countries: zero - Group B countries: 25 basis points - Group C countries: 50 basis points - Service charges recognized as income in the Reserve Account upon payment. *Source: Resilience and Sustainability Trust, Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024.* ### 7. Borrowings ### 7. Borrowings ### Overview - The Trust borrows on terms and conditions agreed between the Trustee and individual lenders. - Borrowings in the Loan Account provide resources for on-lending to eligible member countries; commitments made by lenders to the Loan Account are nonrevolving and subject to a time limit. - Proceeds from borrowings in the Deposit Account are invested and generate net investment income, which contributes to the resources for operational use in the RST. - The undrawn balance under borrowing agreements amounted to SDR 18,547 million at April 30, 2025 and SDR 19,364 million at April 30, 2024. - Borrowing agreements at April 30, 2025 are presented in Schedule 3. - Borrowing to the Deposit Account and the Reserve Account amounted to: - SDR 9,581 and SDR 482 respectively at April 2025. - SDR 9,288 million and SDR 482 million respectively at April 30, 2024. ### 7.1 Changes in outstanding borrowings - Changes in the outstanding borrowings in the RST Accounts were as follows (in millions of SDRs): - Financial year ended April 30, 2025: - Beginning of the year: Loan Account 1,464; Reserve Account 482; Deposit Account 9,288; Total 11,234 - Borrowings: Loan Account 2,210; Reserve Account —; Deposit Account 293; Total 2,503 - Repayments: Loan Account —; Reserve Account —; Deposit Account —; Total — - End of the year: Loan Account 3,674; Reserve Account 482; Deposit Account 9,581; Total 13,737 - Financial year ended April 30, 2024: - Beginning of the year: Loan Account —; Reserve Account 482; Deposit Account 8,303; Total 8,785 - Borrowings: Loan Account 1,464; Reserve Account —; Deposit Account 985; Total 2,449 - Repayments: Loan Account —; Reserve Account —; Deposit Account —; Total — - End of the year: Loan Account 1,464; Reserve Account 482; Deposit Account 9,288; Total 11,234 ### 7.2 Interest on outstanding borrowings - The weighted average interest rate on RST variable interest rate borrowings: - 3.34 percent per annum for the financial year ended April 30, 2025. - 3.83 percent per annum for the financial year ended April 30, 2024. - The interest expense on outstanding borrowings: - SDR 420 million for the financial year ended April 30, 2025. - SDR 373 million for the financial year ended April 30, 2024. *Resilience and Sustainability Trust — Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024 (IMF).* ### 11. Related party transactions ### 11. Related party transactions ### Related party reimbursement to the GRA - The expenses of conducting the business of the Trust are paid by the GRA. - The Trust reimburses the GRA annually in accordance with the IMF’s Articles of Agreement and relevant decisions of the Executive Board. - The reimbursement due by the Trust to the GRA for the financial year ended April 30, 2025 amounted to SDR 19 million. - The reimbursement for the year ended April 30, 2024 amounted to SDR 10 million. ### Schedule 1 — Loans Receivable at April 30, 2025 (selected balances and shares) - Total loans receivable: 3,673.8 (in millions of SDRs); Percent of total loans receivable: 100.0. - Morocco: Outstanding balance 937.5; Percent of total loans receivable 25.52. - Jamaica: Outstanding balance 574.4; Percent of total loans receivable 15.63. - Costa Rica: Outstanding balance 554.1; Percent of total loans receivable 15.08. - Bangladesh: Outstanding balance 333.4; Percent of total loans receivable 9.07. - Côte d'Ivoire: Outstanding balance 304.9; Percent of total loans receivable 8.30. - Rwanda: Outstanding balance 240.3; Percent of total loans receivable 6.54. - Cameroon: Outstanding balance 69.0; Percent of total loans receivable 1.88. - Other member country balances listed individually (examples): Barbados 113.4 (3.09); Kenya 135.7 (3.69); Moldova, Republic of 53.9 (1.47); Niger 59.9 (1.63). ### Schedule 2 — Arrangements for the Financial Year Ended April 30, 2025 (commitments, draws, undrawn balances) - Total arrangements: Amount committed 4,801.4; April 30, 2024 undrawn balance 2,504.1; Changes (1) (net) (2,209.4); Amount drawn April 30, 2025 5,096.1. - Example member-country movements: - Bangladesh: Agreement date January 30, 2023; Expiration date July 29, 2026; Amount committed 1,000.0; April 30, 2024 undrawn balance 833.3; Changes (166.7); Amount drawn April 30, 2025 666.7. - Cabo Verde: Agreement date December 11, 2023; Expiration date June 14, 2025; Amount committed 23.7; April 30, 2024 undrawn balance 23.7; Amount drawn April 30, 2025 15.8. - Congo, Democratic Republic of the: Agreement date January 15, 2025; Expiration date March 14, 2028; Amount committed 799.5; Changes 799.5; Amount drawn April 30, 2025 799.5. - Costa Rica: Agreement date November 14, 2022; Expiration date June 18, 2024; Amount committed 554.1; April 30, 2024 undrawn balance 184.7; Amount drawn April 30, 2025 — (fully drawn). - Morocco: Agreement date September 28, 2023; Expiration date April 2, 2025; Amount committed 1,000.0; April 30, 2024 undrawn balance 750.0; Changes (62.5); Amount drawn April 30, 2025 — (fully drawn). (1) Includes new arrangements increase in access to loan resources (augmentations), cancellations, expirations, and decrease of access to loan resources. ### Schedule 3 — Resources Available Under Borrowing Arrangements at April 30, 2025 (lenders, amounts, undrawn) - Total amount agreed under borrowing agreements: 22,220.6 (in millions of SDRs). - Total undrawn balance: 18,546.7 (in millions of SDRs). - Major lender entries: - People's Bank of China: Amount agreed 4,900.0; Undrawn balance 4,180.2. - Japan: Amount agreed 4,090.0; Undrawn balance 3,401.4. - Banque de France: Amount agreed 2,500.0; Undrawn balance 1,939.2. - De Nederlandsche Bank: Amount agreed 2,382.1; Undrawn balance 1,846.5. - Canada: Amount agreed 1,137.4; Undrawn balance 951.7. - The Government of the United Kingdom: Amount agreed 2,049.0; Undrawn balance 1,826.1. ### Schedule 4 — Cumulative Contributions to Reserve Account and Deposits in Deposit Account at April 30, 2025 - Total Reserve Account contributions: 952.6 (in millions of SDRs). - Total Deposit Account deposits: 9,581.6 (in millions of SDRs). - Total combined contributions and deposits: 10,534.2 (in millions of SDRs). - Select contributor totals: - China: Reserve Account 100.0; Deposit Account 1,000.0; Total 1,100.0. - Germany: Reserve Account 481.8; Deposit Account 4,577.2; Total 5,059.0. - Japan: Reserve Account 81.8; Deposit Account 818.0; Total 899.8. - Canada: Reserve Account 22.7; Deposit Account 227.5; Total 250.2. - The Netherlands, The: Reserve Account 47.6; Deposit Account 476.4; Total 524.1. - Footnotes: - Contributors marked with footnote 1 represent stand-alone deposits to the Deposit Account remunerated on a quarterly basis. - The Reserve Account deposit from Germany is reflected under borrowings in the statements of financial positions as it has a fixed maturity date. ### Schedule 5 — Statements of Financial Position and Comprehensive Income by Account (April 30, 2025 and 2024) — key figures - Statements of Financial Position at April 30, 2025 (in millions of SDRs): - Total assets: 14,811 (2025); 12,086 (2024). - Loans receivable: 3,674 (Loan Account) in 2025; 1,464 total in 2024. - Investments: 10,831 (Total) in 2025; 10,172 in 2024. - Borrowings: 13,737 total in 2025; 11,234 in 2024. - Total liabilities and resources: 14,811 in 2025; 12,086 in 2024. - Statements of Comprehensive Income and Changes in Resources for the year ended April 30, 2025 (in millions of SDRs): - Resources, beginning of year: 407 (Total) in 2025. - Net investment income: 506 (Total) in 2025; 338 in 2024. - Interest income on loans receivable: 106 in 2025; 23 in 2024. - Service charges: 8 in 2025; 6 in 2024. - Total income: 620 in 2025; 367 in 2024. - Interest expense: (420) in 2025; (373) in 2024. - Administrative expenses: (19) in 2025; (10) in 2024. - Net income (total comprehensive income): 180 in 2025; (17) in 2024. - Reserve Account transfer: (17) Loan Account; 17 Reserve Account (net zero effect on total). - Reserve Account contributions: 52 in 2025; 90 in 2024. - Resources, end of year: 639 (Total) in 2025; 407 in 2024. ### Administered Accounts — Auditor’s opinion and selected audited outcomes - Independent auditor (Deloitte & Touche LLP) expressed unmodified opinions that the financial statements present fairly, in all material respects, the financial position of each of the Administered Accounts at April 30, 2025, and the results of their operations and cash flows for the periods indicated, in accordance with IFRS Accounting Standards as issued by the IASB. - Auditor’s report date: June 25, 2025. - Auditor conducted audits in accordance with GAAS and ISAs; auditor is independent and ethical requirements were met. - Auditor reviewed supplemental schedules (pages 165 to 172) and concluded those schedules are fairly stated in all material respects in relation to the 2025 financial statements as a whole. *International Monetary Fund — 2025 Financial Statements, Section 11: Related party transactions* ### 1. Nature of operations ### 1. Nature of operations ### Overview - The International Monetary Fund (IMF) has established special-purpose accounts (the Administered Accounts) at the request of its members to administer resources contributed for financial and technical services consistent with the purposes of the IMF. - The instruments establishing the Administered Accounts provide the terms and conditions under which the resources may be used, as agreed with the IMF and contributing parties. - The assets and liabilities of each account and each subaccount are separate from the assets and liabilities of all other accounts of, or administered by, the IMF. Assets of each account and each subaccount are not to be used to discharge liabilities or cover losses of other accounts. ### Technical Assistance and Special Purpose Accounts — key administered accounts and terms - Administered Account—People’s Bank of China (People’s Bank of China) - Established in June 2012 to administer and invest resources provided by the People’s Bank of China to support IMF technical assistance and training programs. - The account will be terminated on October 1, 2027, upon completion of operations, or at such earlier time by the IMF in consultation with the People’s Bank of China. - Once the obligation to repay the outstanding deposit has been discharged and the final payment of interest has been made, any surplus remaining in the account will be transferred to the People’s Bank of China. - Somalia Administered Account (Somalia) - Established in December 2019 to facilitate fundraising for, and delivery of, debt relief to Somalia in respect of obligations owed to the IMF. - Resources consist of contributions by donors. - On December 13, 2023, Somalia reached the Heavily Indebted Poor Countries (HIPC) completion point; a significant portion of the account’s resources was used to deliver debt relief to Somalia. - The termination process has been initiated and is expected to be completed during the financial year ending April 30, 2026. - Upon termination, remaining resources will be either returned to contributors upon their requests or transferred to the Poverty Reduction and Growth (PRG)-HIPC Trust for use in accordance with the PRG-HIPC Trust Instrument. - Administered Account for Sudan (Sudan) - Established in May 2021 to facilitate fundraising for, and delivery of, debt relief to Sudan in respect of obligations owed to the IMF. - Resources consist of donor contributions and are to be used for delivering HIPC debt relief and to provide additional beyond-HIPC assistance once Sudan reaches the HIPC completion point. - The account shall remain in effect for as long as necessary to conduct the business of the account. - Any balances remaining on termination, after discharge of obligations, shall be transferred to the PRG-HIPC Trust, except that any contributor may request return of its pro rata share. - Administered Account for Ukraine (Ukraine) - Established in April 2022 to channel grants and loans from donors to assist Ukraine with balance of payments and budgetary needs. - Operates primarily as a pass-through vehicle; grants, loans, repayments, and interest received are expected to be disbursed or transferred promptly upon donor instruction. - The IMF has no legal authority to assume the credit risk of any lending made to Ukraine pursuant to the account. - The account may be terminated at any time by the IMF or by unanimous decision of all existing donors; remaining balances on termination shall be transferred promptly to donors in line with their contributions, subject to donor instructions. - Administered Account for China (China) - Established in April 2024 to channel resources from China to provide bilateral co-financing of members’ programs alongside an IMF program, with a focus on supporting Low-Income Countries (LICs), especially African countries. - Operates primarily as a pass-through vehicle; bilateral loans, repayments, and interest received are expected to be disbursed promptly upon instruction by China. - The IMF has no legal authority to assume the credit risk of any lending made by China pursuant to the account. - The account may be terminated at any time by the IMF or at the request of China; remaining balances upon termination shall be transferred to China as soon as feasible. - If terminated before a bilateral co-financing loan agreement is repaid in full, any future payments under such agreement shall be settled outside of the account by the parties to the bilateral co-financing loan agreement. - Interim Placement Administered Account (Interim Placement or IPAA) - Established as part of a distribution framework approved by the IMF Executive Board in October 2024 to facilitate generation of additional Poverty Reduction and Growth Trust (PRG Trust) subsidy resources. - Framework consists of (i) a Multi-Year Distribution Plan (MYDP) and (ii) the establishment of the IPAA. - The MYDP sets a maximum cumulative amount for distribution from the GRA and provides for annual decisions on amounts to be transferred to the IPAA. - Purpose: temporarily hold annual distribution amounts from the GRA pending sufficient assurances by members for new commitments of PRG Trust subsidy resources. - Principal amounts held in the IPAA become available to members for disposition based on quota shares once assurances equivalent to 90 percent of the cumulative distribution amount of SDR 6.9 billion have been reached. - The IPAA has a five-year term; if sufficient assurances are not met by the fifth anniversary of the first placement, the Executive Board can extend by a majority of votes cast. - If no extension, resources held in the IPAA would be returned to the GRA. - If required assurances are reached before the cumulative maximum distribution amount is placed in the IPAA, any subsequent resources placed in the IPAA shall be passed on to members in accordance with quota share. - Interest income earned at the SDR interest rate on principal resources held in the IPAA shall be transferred quarterly to the Subsidy Reserve Account of the PRG Trust. - In April 2025, the Executive Board adopted a decision to distribute SDR 1,380 million of GRA net income to the IPAA; as of April 30, 2025, this distribution had not yet taken place. - Administered Account—Japan (Japan) - Established in March 1989 to administer resources provided by Japan (and, under amendment, by other countries with Japan’s concurrence) to assist certain members with overdue obligations to the IMF. - Resources are disbursed in amounts specified by Japan to members designated by Japan. - Effective March 5, 2008, the governing instrument was amended to allow assistance in the context of an internationally agreed comprehensive package integrating arrears clearance and subsequent debt relief. - Effective April 9, 2020, the instrument was further amended to enable Japan to support a broader range of IMF activities, including contributing to debt relief under the Catastrophe Containment and Relief (CCR) Trust. - The account can be terminated by the IMF or at the request of Japan at any time; upon termination remaining resources are to be returned to Japan. - Framework Administered Account for Selected Fund Activities (Framework—SFA) - Established in March 2009 to administer externally contributed resources to finance selected IMF activities, including the full range of IMF technical assistance activities. - Financing is implemented through subaccounts within the Framework—SFA; at April 30, 2025, there were 51 subaccounts. - Disbursements from Framework—SFA subaccounts are made to the GRA to reimburse the IMF for costs incurred in connection with activities financed by the subaccounts. - Framework—SFA resources are to be used in accordance with terms and conditions established by the IMF, with contributor concurrence. - The Framework—SFA may be terminated by the IMF with the concurrence of all contributors and the Managing Director; subaccounts may be terminated in accordance with contributor agreements or upon contributor withdrawal. ### Interim Holdings of Resources Accounts - Administered Account for Interim Holdings of Voluntary Contributions for Fund Activities (Voluntary Contributions) - Established in April 2010 to receive and hold externally contributed resources for an interim period until they can be transferred to other trusts or accounts administered by the IMF. - Resources deposited will ultimately fund activities for which modalities are not yet finalized. - Resources may be returned to the contributor upon donor instruction at any time. - The account may be terminated by the IMF at any time; uncommitted resources at termination are to be returned to contributors. - There were no balances in this account at April 30, 2025, and 2024, and no transactions during the financial years then ended. - Framework Interim Account (Framework Interim) - Established in December 2019 to receive and hold resources of participants pending disposition instructions by each participant. - Resources for each subaccount are to be administered separately; at April 30, 2025, there were seven subaccounts. - The account (and any subaccount) can be terminated by the IMF at any time; at termination any remaining balances will be repaid in full to participants. ### Basis of preparation and measurement - Financial statements of the Administered Accounts are prepared in accordance with International Financial Reporting Standards (IFRS Accounting Standards) issued by the International Accounting Standards Board (IASB). - Prepared under the historical cost convention, except for the revaluation of financial instruments at fair value through profit or loss (FVTPL). - Prepared on the basis that the Administered Accounts will continue to operate as a going concern. - Certain reclassifications of the prior year’s information have been made to conform with the current year’s presentation. ### Unit of account; SDR valuation basket and exchange rates - Japan, Framework—SFA, and Voluntary Contributions - Functional and reporting currency: US dollar. - All transactions and operations of these accounts, including transfers to and from these accounts and interest payments, are denominated in US dollars. - Contributions denominated in other currencies are converted into US dollars upon receipt. - People’s Bank of China, Somalia, Sudan, Ukraine, China, Interim Placement, and Framework Interim - Financial statements for these accounts are presented in Special Drawing Rights (SDRs) in accordance with account terms. - The SDR is the IMF’s unit of account; its value is determined daily by summing specific amounts of the basket currencies in US dollar equivalents based on market exchange rates. - Contributions denominated in other currencies are converted into the component currencies in the SDR basket upon receipt. - Weights and amounts of currencies in the SDR basket (Years ended April 30, 2025, and 2024) - Chinese renminbi — Weight (in percent): 12.28; Amount: 1.0993 - Euro — Weight (in percent): 29.31; Amount: 0.37379 - Japanese yen — Weight (in percent): 7.59; Amount: 13.452 - British pound — Weight (in percent): 7.44; Amount: 0.080870 - US dollar — Weight (in percent): 43.38; Amount: 0.57813 - The next review of the method of valuation of the SDR will take place in 2027, unless developments justify an earlier review. - Exchange rates: At April 30, 2025, SDR 1 was equal to US$1.35611; at April 30, 2024, SDR 1 was equal to US$1.31793. ### SDR interest rate - The SDR interest rate is used to calculate interest income on resources held in SDRs. - Determined weekly by reference to a weighted average of yields or rates on short-term instruments in the money markets of members whose currencies are included in the SDR valuation basket. - Yield or rate references by currency: - Chinese renminbi — Three-month benchmark yield for China Treasury bonds as published by the China Central Depository and Clearing Co., Ltd. - Euro — Three-month spot rate for euro area central government bonds with a minimum rating of AA published by the European Central Bank - Japanese yen — Three-month Treasury discount bills - British pound — Three-month Treasury bills - US dollar — Three-month Treasury bills - The SDR interest rate is subject to a floor of 0.050 percent and is rounded to three decimal places. - Average SDR interest rate: - 3.538 percent per annum for the financial year ended April 30, 2025 - 4.057 percent per annum for the financial year ended April 30, 2024 ### Use of estimates and judgement - Preparation of financial statements requires management judgements, estimates, and assumptions affecting accounting policies and reported amounts of assets, liabilities, income, and expenses. - Actual results may differ from estimates; revisions are recognized in the period of revision and any future periods affected. - The most significant estimates and judgements include fair value measurement of financial instruments. ### Reclassification of comparative information - Certain amounts in the Administered Accounts financial statements as of and for the financial year ended April 30, 2024 have been revised for consistency with the current year’s presentation to enhance clarity. - Contributions and Transfers previously presented as a component of total comprehensive income have been reclassified as other changes in resources within the statements of comprehensive income and changes in resources and renamed “Transfers in” and “Transfers out”. - The Statement of Cash Flows now begins with “Total comprehensive Income/(loss) before transfers in and out”; “Transfers in” and “Transfers out” are presented as financing activities. - Reclassifications implemented retroactively have no impact on the Statement of Financial Position as of April 30, 2024, ending resources in the statements of comprehensive income and changes in resources, nor on net change in cash and cash equivalents for the year ended April 30, 2024. ### Cash and cash equivalents - Comprise cash on hand, demand deposits, and other highly liquid short-term investments readily convertible to a known amount of cash and subject to an insignificant risk of changes in value. - Held for the purpose of meeting short-term cash commitments rather than for investment or other purposes. - Cash and cash equivalents held within the People’s Bank of China’s investment portfolio are not considered readily available for operational use; these balances are managed as part of the People’s Bank of China’s investment strategy and are subject to investment mandates and restrictions. - Investment-related activities for those balances—including purchase, sale, and reinvestment of financial instruments—are excluded from the Statements of Cash Flows. *Administered Accounts Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024, International Monetary Fund.* ### 3.2 Investments ### 3.2 Investments ### Investment management and classification - Investments held in the People’s Bank of China account are managed in accordance with the Administered Accounts’ risk management and investment strategy. - Performance is evaluated on a fair value basis; consequently these securities are classified at FVTPL in accordance with their business model. - Valuation techniques to determine fair value are described in Note 6. ### Recognition and derecognition - Recognition: Investments are initially recognized on the trade date at which an account becomes a party to the contractual provisions of the instrument. - Derecognition: Investments are derecognized on the trade date when the contractual rights to the cash flows from the asset expire, or when substantially all the risks and rewards of ownership of the investment are transferred. ### Interest and investment income - Interest and investment income comprises: - interest income on cash and cash equivalents and investments, - realized gains and losses, - unrealized gains and losses, including currency valuation differences arising from exchange rate movements against the functional currency. - Interest income is recognized on an accrual basis using the effective interest method. - For the People’s Bank of China account, investment income comprised the gain on FVTPL investments; interest and net investment income for other Administered Accounts consisted of only interest income on cash and cash equivalents. --- ### 3.3–3.8: Related financial statement policies and measurement ### Borrowings (measurement) - Borrowings are initially recognized at fair value of the amount drawn and are subsequently measured at amortized cost using the effective interest method. ### Transfers in and transfers out (recognition) - Transfers in reflect financing sources primarily in the form of contributions and are recognized as an increase in resources when control of funds is obtained and it is probable that the associated resources will be available for use in accordance with the agreed terms. - Transfers out represent allocation of resources to intended beneficiaries and are recognized as a reduction in resources when there is an obligation to transfer those resources in accordance with the governing agreements. ### Other income - Other income consists of the fee for administration of the selected technical assistance and special purpose accounts, as agreed between the IMF and contributing parties to the Administered Accounts. ### Operating expenses - Operating expenses consist of reimbursements to the IMF for program and administrative costs incurred on behalf of technical assistance and other activities for selected accounts, as agreed between the IMF and contributing parties to the Administered Accounts. - Reimbursements: - Ukraine account reimbursements: SDR 15 thousand for the financial year ended April 30, 2025 (SDR 23 thousand for the financial year ended April 30, 2024). - China account reimbursements: SDR 50 thousand for the financial year ended April 30, 2025 (none for the financial year ended April 30, 2024). - Framework—SFA account reimbursements: US$240,759 thousand for the year ended April 30, 2025 (US$236,896 thousand for the financial year ended April 30, 2024). - The expenses of conducting the activities of the Administered Accounts are paid by the General Department of the IMF; some instruments provide for partial reimbursement to the General Department. ### Currency conversion gains/(losses) - Currency conversion gains/(losses) consist of exchange gains and losses on transfers in arising from timing differences between receipt and conversion into the functional currency of the account. ### Fair value measurement - Definition: Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. - Measurement presumes sale in the principal market or, absent that, the most advantageous market. - Three-level fair value hierarchy: - Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities accessible at the measurement date. - Level 2: Observable inputs other than Level 1 quoted prices, directly (prices) or indirectly (derived from prices). - Level 3: Unobservable inputs. - When inputs fall within different levels, the fair value measurement is categorized based on the lowest-level input that is significant to the instrument in its entirety; a Level 3 measurement may include observable inputs as well as unobservable inputs. ### New and revised IFRS effective in future years - In April 2024, the IASB issued IFRS 18 “Presentation and Disclosures in Financial Statements” to replace IAS 1 “Presentation of Financial Statements”. - Effective for annual periods beginning on or after January 1, 2027. - IFRS 18 will be adopted by the Administered Accounts for the financial year ending April 30, 2028. - The impact of the adoption is being assessed. --- ### 4. Financial risk management ### Overview - Administered Accounts are exposed to credit, liquidity, and market risks when administering contributed resources and funding financial and technical services. ### Credit risk - Credit risk on investment activities represents potential loss if obligors and counterparties default. - Credit risk is minimized by holding resources at the Bank for International Settlements (BIS). ### Liquidity risk - Liquidity risk is the risk of nonavailability of resources to meet financing needs and obligations. - Liquidity is monitored to ensure upcoming payments or transfers can be met from cash and highly liquid investments. - For the People’s Bank of China account, principal resources are invested to generate income to support agreed technical assistance and training while preserving principal in nominal terms. - The maturity of the investments matches repayment of the principal to the People’s Bank of China due in October 2027. ### Market risk - Market risk: risk that fair value or future cash flows will fluctuate because of changes in market prices; includes interest rate risk and exchange rate risk. - Interest rate risk: - Resources in the People’s Bank of China account are invested in BIS medium-term instruments (MTIs), subject to mark-to-market interest rate risk. - A 100 basis point increase or decrease in market interest rates at April 30, 2025, would have resulted in a loss of SDR 3.5 million and a gain of SDR 3.6 million, respectively. - Using the same assumptions at April 30, 2024, a 100 basis point increase or decrease would have resulted in a loss of SDR 5.0 million and a gain of SDR 5.1 million, respectively. - Exchange rate risk: - Exchange rate risk is managed by holding financial assets and liabilities in the functional currency of each account or, for SDR-based accounts, in the constituent currencies of the SDR valuation basket. - Investments in the People’s Bank of China account are in MTIs denominated in SDR basket currencies, with relative currency amounts aligned to SDR basket weights. - The currency composition of the People’s Bank of China account is rebalanced periodically to align with the SDR basket; therefore, exchange rate risk is minimal. --- ### 5–6 Investments and Borrowings—People’s Bank of China account specifics ### Investments (composition and valuation) - Investments held at April 30, 2025, and 2024 comprised BIS MTIs which mature in financial year 2028. - BIS MTIs in this account are denominated in SDR basket currencies. - BIS MTIs are not traded in an active market; fair value is determined based on a compilation of significant observable market information such as recently executed trades in securities of the issuer or comparable issuers and yield curves. - The investments are categorized as Level 2 based on the fair value hierarchy. - There were no transfers between levels during the financial years ended April 30, 2025, and 2024. - The currency composition of the Investment Assets of the People’s Bank of China account is rebalanced quarterly to align to the SDR basket composition. ### Borrowings (People’s Bank of China deposit) - The People’s Bank of China account was funded by an SDR 170 million deposit from the People’s Bank of China on July 2, 2012. - The deposit matures on July 2, 2027, at which point it is repayable to the People’s Bank of China. - The interest on the deposit is 1/10 of 1 percent per annum payable annually if the net investment earnings on the corresponding investment exceed this amount in a given year. --- ### 8. Transfers in - Transfers in are the main source of financing in the Administered Accounts. - Transfers support initiatives including technical assistance, debt relief, economic stabilization, and program co-financing. - Resources provided by donors or specific countries are disbursed directly or transferred to beneficiaries, held temporarily, or used according to predetermined conditions, with remaining balances typically returned to donors or redirected per donors’ instructions. *Administered Accounts Notes to the Financial Statements for the Financial Years Ended April 30, 2025, and 2024* ### 9. Transfers out ### 9. Transfers out ### Summary of reported transfers (financial years ended April 30, 2025 and 2024) - Transfers of resources from the Administered Accounts during the financial years ended April 30, 2025, and 2024, excluding the Administered Account for Ukraine, were reported as follows: - (in thousands of SDRs) - Somalia PRG-HIPC Trust — 128,040 - Somalia PRG Trust — 123,453 - Framework Interim Members — 5,272 - (in thousands of US dollars) - Japan Framework Administered Account for Selected Fund Activities — 250 - Transfers from the Administered Account for Ukraine to Ukraine’s SDR holdings were transferred on a pass-through basis and represented loans from Canada to Ukraine via the Ukraine Account: - SDR 1,520,276 thousand for the financial year ended April 30, 2025 - SDR 1,108,518 thousand for the financial year ended April 30, 2024 ### Selected Administered Accounts — Interim holdings and transfers (Schedule 1 highlights) - Framework Interim (aggregate line in Schedule 1): - Beginning balance: 267,954 (in thousands of SDRs) - Transfers in: — - Net income: 9,588 - Transfers out: — - Ending balance: 277,542 - Selected subaccount examples (all figures in thousands of SDRs, as presented in Schedule 1): - Total Post-SCA-2 Subaccount: Beginning balance 41,662 — Net income 1,491 — Ending balance 43,153 - Total SCA-1/Deferred Charges Subaccount: Beginning balance 38,309 — Net income 1,371 — Ending balance 39,680 - Total Windfall Gold Sales Profits Subaccount: Beginning balance 23,736 — Net income 849 — Ending balance 24,585 - Total Remaining Windfall Gold Sales Profits Subaccount: Beginning balance 42,215 — Net income 1,511 — Ending balance 43,724 - Total Somalia Interim Subaccount: Beginning balance 32,354 — Net income 1,158 — Ending balance 33,511 - Total Sudan Interim Subaccount: Beginning balance 89,678 — Net income 3,208 — Ending balance 92,888 - Note: “**” denotes amounts less than SDR 500; components may not sum exactly to totals due to rounding. ### Selected cumulative transfers in and disbursements (Schedule 2 highlights, in millions of US dollars) - Net cumulative transfers in and cumulative disbursements through the years ended April 30, 2025 and 2024 (selected accounts): - Japan: Net cumulative transfers in 409.9; Cumulative disbursements 309.1 (2025 and 2024 identical) - Framework—SFA: Net cumulative transfers in 2,721.3; Cumulative disbursements 2,371.7 (2025) — 2,427.1 and 2,131.0 (2024) - Africa Regional Technical Assistance Center South (AFRITAC South) Subaccount: Net cumulative transfers in 131.1; Cumulative disbursements 124.8 (2025) — 119.4 and 114.8 (2024) - Japan Subaccount for Selected Fund Activities: Net cumulative transfers in 484.7; Cumulative disbursements 425.7 (2025) — 448.9 and 384.2 (2024) - Global Public Finance Partnership: Net cumulative transfers in 46.8; Cumulative disbursements 22.5 (2025) — 5.5 and 1.7 (2024) - Ukraine Capacity Development Subaccount: Net cumulative transfers in 29.6; Cumulative disbursements 5.3 (2025) — 16.5 and 0.6 (2024) - West Africa Regional Technical Assistance Center (AFRITAC West) Subaccount: Net cumulative transfers in 104.2; Cumulative disbursements 92.9 (2025) — 88.5 and 84.6 (2024) - Note: “**” denotes amounts less than US$50,000; components may not sum exactly to totals due to rounding. ### Somalia and Sudan cumulative distributions and transfers in (Schedule 3 highlights, in millions of SDRs) - Aggregate totals at April 30, 2025: - Total members — Somalia: Distributions 101.94; Transfers in 144.54; Total 246.48 - Total members — Sudan: Distributions 629.41; Transfers in 96.73; Total 726.14 - European Commission (nonmember) — Transfers in 7.18 (Somalia) - Combined totals: Somalia Distributions 101.94; Transfers in 151.72; Total 253.66 — Sudan Distributions 629.41; Transfers in 96.73; Total 726.14 - Individual contributor examples (Somalia — Distributions / Transfers in / Total; Sudan — Distributions / Transfers in / Total): - China, People’s Republic of — Somalia 4.29 / 3.71 / 8.00; Sudan 28.06 / — / 28.06 - Japan — Somalia 13.02 / 2.52 / 15.54; Sudan 92.07 / — / 92.07 - United States — Somalia 32.17 / — / 32.17; Sudan 229.81 / — / 229.81 - United Kingdom — Somalia 5.00 / 36.34 / 41.34; Sudan 34.84 / — / 34.84 - Qatar — Somalia 0.14 / 18.34 / 18.48 - Note: “**” denotes amounts less than SDR 5,000; distributions represent SCA-1 balances and proceeds of deferred charges adjustments; transfers in represent grant contributions other than SCA-1 balances and proceeds of deferred charges adjustments. --- _Source: https://www.imf.org/-/media/files/data/imf-finance/quarterly-financial-statements/2025/2025-financial-statements.pdf_