## BPM7 Annex 9. Positions and Transactions with the IMF: Annotated Outline ## Source details **Canonical URL:** [BPM7 Annex 9. Positions and Transactions with the IMF: Annotated Outline](https://www.imf.org/-/media/files/data/statistics/bmp7/final-annotated-outlines/bpm7-annex-9-positions-and-transactions-with-the-imf-annotated-outline.pdf) ## Other formats - [Markdown version](/-/media/files/data/statistics/bmp7/final-annotated-outlines/bpm7-annex-9-positions-and-transactions-with-the-imf-annotated-outline.pdf.md) - [Structured JSON version](/-/media/files/data/statistics/bmp7/final-annotated-outlines/bpm7-annex-9-positions-and-transactions-with-the-imf-annotated-outline.pdf.json) --- ### I. Introduction — Purpose and Channels of IMF Financing - The annex will be based on BPM6 Annex 7.1 with inputs from other macroeconomic statistics manuals/guides and will maintain the BPM6 structure with relevant additions. - Core responsibility: The IMF makes financing available to member countries experiencing actual, potential, or prospective balance of payments problems, including when the country cannot find sufficient financing on affordable terms to meet its net international payments. - The three channels of IMF lending: - General Resources Account (GRA): provides non-concessional lending available to all Fund members. - Poverty Reduction and Growth Trust (PRGT): provides concessional lending to low-income countries. - Resilience and Sustainability Trust (RST): provides lending to low-income and vulnerable middle-income countries, as well as small states; established in 2022. - The annex will include an introduction covering the main channels of lending (drawing from IMF Financial Operations, fourth edition, and BPM6 Annex 7.1) to facilitate recording in international accounts. - The annex will provide a brief explanation of fiscal agency and depository concepts as the IMF conducts financial dealings with a member through the fiscal agency and the depository designated by the member. ### I.A. Non-Concessional (GRA) Lending — Facilities and Resources - Major non-concessional lending facilities to be described (based on Table 2.5 of IMF Financial Operations, fourth edition): - Stand-By Arrangement (SBA) - Extended Fund Facility (EFF) - Flexible Credit Line (FCL) - Precautionary and Liquidity Line (PLL) - Short-term Liquidity Line (SLL) - Rapid Financing Instrument (RFI) - Resources (borrowing by the IMF): - Quota subscriptions are the primary source of financing. - IMF can supplement quota resources through borrowing under the New Arrangements to Borrow (NAB) and bilateral borrowing agreements (BBAs) if resources may fall short of members’ needs. ### I.B. Concessional (PRGT) Lending — Facilities and Resources - Concessional financial assistance for low-income countries includes concessional loans and debt relief. - Concessional lending facilities to be described (based on Table 3.2 of IMF Financial Operations, fourth edition): - Extended Credit Facility (ECF) - Standby Credit Facility (SCF) - Rapid Credit Facility (RCF) - Resources for concessional operations are provided through contributions by a broad segment of the membership and by the IMF; these resources are administered under the PRGT. ### I.C. Debt Relief — Trusts and Classification - Debt relief resources are administered under trusts such as: - Trust for Special Poverty and Growth Operations for the Heavily Indebted Poor Countries and Interim ECF Subsidy Operations (PRG-HIPC) - Catastrophe Containment and Relief Trust (CCR) - The IMF acts as trustee for these trusts, mobilizing and managing resources for concessional operations. ### I.D. RST Lending — Purpose and Resource Mobilization - RST (established in 2022) aims to help low-income, small states, and vulnerable middle-income countries tackle long-term structural challenges including climate change and pandemics. - RST resources are mobilized from voluntary contributions by IMF members with strong external positions, including contributions channeling Special Drawing Rights (SDRs). ### II. Recording of Positions and Transactions with the IMF — Overview of Subsections - The annex will explain how to record positions and transactions with the IMF with focus on items relevant for external sector statistics. - Schematic subsection structure: - A. Quotas - B. Reserve Position in the IMF - C. Credit and Loans from the IMF - D. Debt Relief Through IMF Managed Trusts - E. Lending to IMF and IMF Managed Trust Accounts - F. Remuneration - G. IMF No.2 Account - H. Special Drawing Rights - I. Table A9.1 Summary of Recording of Positions/Transactions with the IMF ### II.A. Quotas - Paragraphs 7.75–76 will be retained with no significant changes. ### II.B. Reserve Position in the IMF - Paragraphs 7.77–78 will be retained with no significant changes. ### II.C. Credit and Loans from the IMF — Scope and Notes - Scope will cover IMF credit through non-concessional lending arrangements (Section I.A) and concessional lending arrangements (Section I.B) including ECF/SCF/RCF funded through the PRGT (update to paragraph 7.79). - Following GN F.15, the grant element in concessional lending will be recorded as supplementary information only. - Paragraph 7.81 will be moved to sub-section E (second bullet). ### II.D. Debt Relief Through IMF Managed Trusts — Recording Guidance - Cash grants from IMF trusts (e.g., CCR trust) to repay debt are classified as other capital transfers under the relevant sector (central bank or general government depending on the specific country situation). - Because the grant is provided for financing a balance of payments need, it should be recorded under memorandum items—exceptional financing (to the standard balance of payments presentation) under capital transfers. - A short example based on Table 1 from the Special Series on COVID-19 Note "How to Record Debt Relief Under the Catastrophe Containment and Relief Trust in Macroeconomic Statistics" will be included to explain balance of payments recording. ### II.E. Lending to the IMF and IMF Managed Trust Accounts — Reserve Asset Qualification - When a member lends funds to the IMF (e.g., as a participant in the NAB or through bilateral loans/note purchase agreements) and those claims are eligible for immediate early repayment to meet a balance of payments financing need, the member obtains a claim on the IMF that qualifies as a reserve asset and is included as part of the member’s reserve position in the IMF. - A member’s claim on the IMF that is not immediately encashable at a time of balance of payments need does not qualify as a reserve asset (paragraph 7.81). - Lending to IMF managed trust accounts (such as the PRGT and RST): - If readily available to meet a balance of payments financing need, such claims should be included in official reserve assets as other claims/other reserve assets and not included under reserve position in the IMF (claims on IMF managed trusts are not claims on the IMF). - If not readily available to meet a balance of payments financing need, such lending does not qualify as official reserve assets and should be recorded under the appropriate functional category (most frequently, other investment). - Recording in these instances will be elaborated further based on the International Reserves and Foreign Currency Liquidity: Guidelines for a Data Template (IRFCL Guidelines) Appendix 8. ### II.F. Remuneration - Paragraph 7.82 will be retained with no significant changes. ### II.G. IMF No.2 Account - Paragraph 7.83 will be retained with no significant changes. ### II.H. Special Drawing Rights (SDRs) — Treatment and Implications - The BPM6 paragraph 7.84 treatment will be mostly maintained with updates: - Net International Reserves (NIR): SDR allocations are recorded as debt liabilities and considered long-term reserve-related liabilities; they are not included in short-term foreign currency drains. Therefore, NIR—if following the BPM7 standard definition of NIR—would increase with the new SDR allocation. Reference will be made to Section VI.B on NIR from Chapter 6. - Statistical treatment of SDR allocations for countries that are members of a centralized currency union is provided in Annex 3. - The following documents will be reviewed further for additional updates as appropriate from the perspective of international accounts: - “Guidance Note for Fund Staff on the Treatment and use of SDR Allocations” - “How to Record the Allocations of Special Drawing Rights in Government Finance Statistics” - “Statistical Treatment of SDR Allocation: Frequently Asked Questions” ### II.I. Table A9.1 — Summary of Recording of Positions/Transactions with the IMF - Table A9.1 will provide a summary recording of different lending/borrowing arrangements and SDRs in the balance of payments/IIP of the member economy and will be based on Table 8.1 of the IRFCL Guidelines. ### References and Stakeholder Consultation - Key referenced materials to be drawn on include: - GNs B.2 and F.15 - Balance of Payments and International Investment Position Manual, sixth edition, Annex 7.1 - International Reserves and Foreign Currency Liquidity: Guidelines for a Data Template - IMF Financial Operations, fourth edition - Guidance Note for Fund Staff on the Treatment and use of SDR Allocations - How to Record the Allocations of Special Drawing Rights in Government Finance Statistics - Monetary and Financial Statistics Manual and Compilation Guide (Annex 4.2) - Statistical Treatment of SDR Allocation: Frequently Asked Questions - Special Series on COVID-19 Note "How to Record Debt Relief Under the Catastrophe Containment and Relief Trust in Macroeconomic Statistics" - Key stakeholders consulted include: - IMF Finance Department - System of National Accounts Lead Editor - IMF Statistics Department Financial Institutions Division and Government Finance Division --- _Source: https://www.imf.org/-/media/files/data/statistics/bmp7/final-annotated-outlines/bpm7-annex-9-positions-and-transactions-with-the-imf-annotated-outline.pdf_