## ppea2023014 — Sections 1–2

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---

### I. SAFEGUARD ECONOMIC STABILITY — Global outlook, risks, and policy priorities
- Global outlook and risks:
  - Tentative stabilization signs earlier in 2022 have receded; outlook is increasingly risky and uncertain.
  - Successive shocks—including Russia’s war against Ukraine—and recent financial market stress, in the context of tighter monetary policies needed to bring down inflation, are weighing on the global recovery and macro-financial stability.
  - Global growth in the near and medium term is projected to remain weak by historical standards and could weaken further if financial stress continues and leads to a sharp tightening of financial conditions.
  - Declining commodity prices and synchronized monetary tightening helped moderate inflation, but underlying price pressures are proving sticky.
- Distributional and fragmentation concerns:
  - A record 345 million people, mainly in low-income countries (LICs), face acute food insecurity.
  - More than 700 million people are living in extreme poverty.
  - About 60 percent of LICs and 25 percent of EMs are already in or at risk of debt distress.
- Monetary policy recommendations:
  - Continue to prioritize durably bringing inflation down and guarding against a de-anchoring of inflation expectations.
  - Calibrate policies in a data-dependent manner, communicate objectives clearly, and be ready to adjust and use full set of policy instruments, including to address financial stability concerns.
  - Where market strains emerge, central banks should stand ready to provide appropriate liquidity support, while safeguarding their balance sheets.
- Regulatory, supervisory, and macroprudential policy recommendations:
  - Strengthen resilience of the financial sector, including to abrupt or sizable changes in interest rates and real estate and other asset prices.
  - Monitor developments carefully and address data, supervisory, and regulatory gaps in both the bank and nonbank financial sectors.
  - Use preemptive capital flow measures (CFMs) on inflows and macroprudential measures in some circumstances; allow currencies to adjust if capital flow and exchange-rate pressures emerge; temporary foreign exchange intervention could address market dysfunction; temporary CFMs on outflows may help in imminent crisis circumstances.
- Fiscal policy recommendations:
  - Continue reducing elevated debt levels while buttressing monetary and financial sector policies in bringing inflation down and maintaining financial stability.
  - Target measures addressing cost-of-living pressures to support the most vulnerable while preserving market signals from higher prices.
  - Adopt credible risk-based fiscal frameworks to reduce debt vulnerabilities and rebuild buffers.
- Supply-side and structural policy recommendations:
  - Design supply-side policies to bolster growth, alleviate price pressures, and build supply-chain resilience while avoiding distortive practices.
  - Structural reforms should address market power and rent-seeking, improve regulations, planning, and the business environment; support education; and bolster labor-market flexibility and participation.
- International coordination:
  - Support trade as an engine for growth; refrain from distortive trade practices, avoid wasteful subsidy races, and strengthen the multilateral trade system, including through the World Trade Organization.
- IMF surveillance and internal work:
  - Bilateral surveillance: provide consistent policy-mix advice tailored to countries, upgrade macro-financial analysis, and operationalize the Integrated Policy Framework and revised Institutional View to guide use of multiple policy tools.
  - Governance and trade reviews: completed review of the Framework for Enhanced Fund Engagement on Governance; recent Review of the Role of Trade in the Work of the Fund to guide policy advice on supply-chain resilience while avoiding protectionism.
  - Multilateral surveillance: prioritize macroeconomic policies to contain inflation, study monetary-fiscal interactions and commodity-price shock responses, analyze capital flows, CFMs, crises, fiscal policy on elevated debt, digitalization of public finance and infrastructure, and financial sector vulnerabilities.
  - Work on spillovers from fragmentation to help members reach common understanding and pragmatic solutions that preserve the stability of the International Monetary System (IMS).

### II. SUPPORT VULNERABLE COUNTRIES — Rationale, priority actions, lending, and resource needs
- Rationale:
  - Joint action is critical to ensure macroeconomic stability in vulnerable countries and to safeguard global stability; international support mitigates spillovers and contagion and helps avoid economic hardship, unrest, and displacement.
- Priority actions:
  - Ending Russia’s war in Ukraine remains the single most impactful action.
  - Overcoming the food crisis and addressing poverty require lifting restrictions on food and fertilizers and mobilizing new concessional support, including through voluntary channeling of Special Drawing Rights (SDRs).
  - Accelerating debt distress resolution hinges on more effective implementation of the G20 Common Framework (CF), supported by the Paris Club; enhanced creditor coordination is necessary for timely restoration of debt sustainability, including for vulnerable middle-income countries (MICs).
- IMF lending and facilities — recent activity and plans:
  - Support to LICs and FCS:
    - Since fall 2022, six countries (Ukraine, Malawi, Guinea, Haiti, South Sudan, and Burkina Faso) have benefited from emergency financing (Rapid Financing Instrument (RFI)/Rapid Credit Facility (RCF)) under the new Food Shock Window (FSW).
    - Four other countries (Mauritania, Bangladesh, Guinea Bissau, and Papua New Guinea) benefited from upper-credit tranche (UCT) arrangements.
    - Planned review of the RFI/RCF access limits and of the FSW; begin work on the 2024-25 review of the Poverty Reduction and Growth Trust (PRGT).
  - Support to EMs:
    - Seven countries (North Macedonia, Barbados, Armenia, Egypt, Serbia, Sri Lanka, and Ukraine) received financing under new General Resources Account (GRA)-supported programs.
    - EMs benefit from access to IMF precautionary facilities, with currently about SDR 66 billion committed, including Morocco’s recently-approved Flexible Credit Line (FCL).
    - Temporarily raised normal access limits in the GRA and reviewing precautionary facilities; changes to financing assurances policy allow possible UCT engagement with members facing exceptionally high uncertainty, subject to safeguards.
  - Resilience and Sustainability Trust (RST):
    - Five countries (Costa Rica, Barbados, Rwanda, Bangladesh, and Jamaica) are benefiting from the RST to enhance resilience to climate-related shocks.
    - Assessing experiences to draw early lessons.
- SDRs, quota review, and resource mobilization:
  - The historic $650 billion SDR allocation in 2021 helped address long-term reserve needs, build confidence, and bolster resilience and stability; it also helped create fiscal space for immediate needs.
  - IMF is reviewing the use of SDRs, including assessment of support to LICs, impact on members’ reserves, SDR channeling, and consistency with transparency and accountability principles.
  - For the IMF to continue fulfilling its role at the center of the global financial safety net (GFSN), members must achieve a timely and successful conclusion of the 16th General Review of Quotas (GRQ) by December 15, 2023.
  - To bridge until the GRQ agreement becomes effective, members’ support is needed for extending the Bilateral Borrowing Agreements through the end of 2024 to avoid a decline in IMF resources at the end of 2023.
- PRGT funding and targets:
  - For the PRGT, sought SDR 12.6 billion in additional loan resources and SDR 2.3 billion in new subsidy resources to support zero-interest lending and to finance the 2021 reforms.
  - So far, pledges amount to around three-fourths of the loan resources target but less than half of the subsidy resource target.
  - Financing needs for the PRGT are expected to increase further due to strong demand for IMF support and sharply higher interest rates.
  - Rely on membership support to meet the agreed 2021 fundraising target by the Annual Meetings in Morocco; lay out principles of a burden-shared medium-term strategy to place the PRGT on a sustainable footing to guide the upcoming PRGT review.
- RST fundraising:
  - Timely delivery of existing pledges and new pledges toward the SDR 33 billion fundraising goal for the RST are essential.
- Debt architecture and coordination:
  - Common Framework (CF): work to make processes more predictable, timely, and orderly; early lessons from Chad can inform ongoing cases (Ghana, Zambia, and Ethiopia); working with the World Bank to improve information provision to creditors, including on information underlying IMF debt sustainability analyses.
  - Global Sovereign Debt Roundtable (GSDR): launched with the World Bank and the Indian G20 Presidency to bring together Paris Club members, new official bilateral creditors (China, Saudi Arabia, India), private sector, and borrowing countries to foster common understanding on concepts and principles to facilitate restructurings.
  - Debt sustainability and transparency: monitor practices for contractual approaches to sovereign debt restructuring and improve debt transparency, including through technical assistance; collaborate with the World Bank to lay groundwork for the next review of the LIC Debt Sustainability Framework.

### III. SUSTAIN OUR FUTURE PROSPERITY — Climate, digitalization, and IMF role
- Framing:
  - Multilateral cooperation is essential to protect the future against climate change and to harness digitalization while managing its risks.
- Climate action priorities:
  - Global action is essential to reduce greenhouse gas emissions and to deliver on the Paris Agreement to avoid uncontrolled global warming.
  - Large emitters need to urgently come together to decisively cut emissions.
  - Step up climate finance from all sources to support adaptation and transition efforts; bringing in private sector finance is key.
  - Mobilizing private finance requires harmonizing climate-disclosure standards, reinforcing the climate-information architecture, and addressing impediments such as capital market development and the business climate.
- Digitalization priorities:
  - Leverage digital technologies to improve payment systems, advance financial inclusion, and realize productivity gains.
  - Globally coordinated regulation of digital services and development of global standards are needed to minimize risks from new digital technologies.
  - Robust design and coordination of central bank digital currencies (CBDCs) and other digital platforms can avoid fragmentation of payment systems and support greater payment efficiency.
- IMF role:
  - Continue work on climate policies and their macroeconomic—especially cross-border—impact on members.
  - Provide analytical work on energy security and climate mitigation, climate stress testing, and the impact of the green transition on innovation.
  - Help members strengthen policy frameworks for climate resilience to mobilize additional climate financing.

### Managing Director’s Global Policy Agenda — Selected operational pillars (Sections from The Managing Director’s Global Policy Agenda)
- Climate, Digital, and Data Work:
  - Coordinated effort with countries, donors, and Multilateral Development Banks is essential to support development financing for climate mitigation and adaptation; maximize synergies; and unlock green, resilient, and sustainable growth.
  - IMF actions:
    - Improving availability and quality of climate data, including through the IMF’s Data Standards Initiative and contribution to the G20’s Data Gaps Initiative.
    - Reviewing the Climate Macroeconomic Assessment Program.
    - Analyzing macroeconomic implications of digital money and assets and helping develop global principles for public and private digital infrastructure.
    - Work on cross-border multilateral currency exchange and contracting platforms emphasizes importance of digital public goods, including access to CBDCs, to improve cross-border payments and finance.
    - Following Executive Board endorsement of the paper on elements of effective policies for crypto assets, stepped up analysis of macro-financial implications of crypto assets, working closely with standard-setting bodies and other stakeholders.
    - Analyzing implications of digital money for the IMS with aim to develop policy principles to foster cooperation and stability.
- Capacity Development (CD):
  - IMF CD continues to support members’ efforts to build macroeconomic resilience and is being integrated with surveillance and lending, focusing on tailored technical assistance and training.
  - Continued activity in traditional CD areas, including fiscal and debt-related issues.
  - Responding to growing CD demands from FCSs and providing support in emerging areas such as digital and climate issues.
  - 2023 Review of the Fund’s CD Strategy underway to modernize management, administration, and delivery.
- Internal Practices, Governance, and Transparency:
  - Implementing Enterprise Risk Management framework to ensure an institution-wide risk culture for effective identification, assessment, and treatment of risks.
  - Following up on recommendations of the Institutional Safeguards Review, including strengthening the IMF’s internal Dispute Resolution System to ensure robust governance structure.
  - Reviewing the Transparency Policy to improve openness and clarity while strengthening traction and accountability.
  - Continuing efforts to improve staff diversity and inclusion.

### Lending and Financial Arrangements — GRA, PRGT, RST, and totals (figures as reported)
- General Resources Account (selected lines and totals):
  - Stand-By Arrangements (SBA)
    - Armenia, Republic of 0 .13 0.35
    - Georgia 0.21 0.47
    - Serbia, Republic of 1.90 0.79
  - Extended Fund Facility (EFF)
    - Argentina 31.91 34.23
    - Bangladesh 1.65 0.59
    - Barbados 0.09 0.34
    - Benin 0.32 0.23
    - Cameroon 0.32 0.21
    - Costa Rica 1. 24 0.99
    - Egypt, Arab Republic of 2.35 13.42
    - Gabon 0.39 0.75
    - Jordan 1.15 1.46
    - Kenya 1. 25 0.75
    - Mauritania, Islamic Republic of 0.04 0.01
    - Moldova, Republic of 0.40 0.29
    - Pakistan 4.99 5.57
    - Papua New Guinea 0.46 0.04
    - Seychelles 0.07 0.09
    - Sri Lanka 2.29 1.04
    - Suriname 0.47 0.08
    - Ukraine 11. 61 9.04
  - Flexible Credit Line (FCL)
    - Chile 13.95 -
    - Colombia 7.16 3.75
    - Mexico 35.65 -
    - Peru 4.00 -
  - Precautionary and Liquidity Line (PLL)
    - Jamaica 0.73 0.54
    - North Macedonia, Republic of 0.41 0.22
  - Totals and balances (as of March 31 2023, in billions of SDRs):
    - Total Current Arrangements 125.12
    - o/w Undrawn Balance (A) 93.73
    - Total Outstanding Credit (B) 75.26
    - Members without current arrangements: Total Outstanding Credit (C) 23.47
    - Other Upper Credit Tranche (UCT) 13.00
      - o/w Ecuador 5.63
      - o/w Angola 3.21
      - o/w Morocco 1.50
    - Rapid Financing Instrument (RFI) 10.47
      - o/w South Africa 3.05
      - o/w Nigeria 2.45
      - o/w Tunisia 0.55
    - TOTAL GRA COMMITMENTS (A)+(B)+(C) 192 . 46
- Poverty Reduction and Growth Trust (PRGT) (selected lines and totals):
  - Extended Credit Facility (ECF) — selected members and figures:
    - Bangladesh 0.82 0.46
    - Benin 0 .16 0.30
    - Cabo Verde 0.05 0.05
    - Cameroon 0 .16 0.80
    - Chad 0.39 0.56
    - Congo, Democratic Republic of 1.07 1.14
    - Congo, Republic of 0.32 0.23
    - Gambia, The 0.07 0 .10
    - Guinea-Bissau 0.03 0.03
    - Kenya 0.57 1.01
    - Liberia 0 .16 0 .19
    - Madagascar, Republic of 0.22 0.65
    - Mauritania, Islamic Republic of 0.02 0.24
    - Moldova, Republic of 0.20 0.20
    - Mozambique, Republic of 0.34 0.44
    - Nepal 0.28 0.25
    - Niger 0.20 0.36
    - Papua New Guinea 0.23 0.29
    - Sierra Leone 0 .12 0.36
    - Somalia 0.25 0.24
    - Tanzania, United Republic of 0.80 . 51
    - Uganda 0.72 0.81
    - Zambia 0.98 0 .14
  - Totals and balances:
    - Total Current Arrangements 8 .16
    - o/w Undrawn Balance (D) 4.64
    - Total Outstanding Credit (E) 9. 37
    - Members without current arrangements: Total Outstanding Credit (F) 7.12
    - Other Upper Credit Tranche (UCT) 3.83
      - o/w Sudan 0.99
      - o/w Ghana 0.52
      - o/w Côte d'Ivoire 0.38
    - Rapid Credit Facility (RCF) 3.28
      - o/w Ghana 0 .74
      - o/w South Sudan 0.25
      - o/w Côte d'Ivoire 0.22
    - TOTAL PRGT COMMITMENTS (D)+(E)+(F) 23.41
- Resilience and Sustainability Trust (RST) commitments:
  - Resilience and Sustainability Facility (RSF) commitments:
    - Bangladesh 1.0 0-
    - Barbados 0 .14 -
    - Costa Rica 0.55 -
    - Jamaica 0.57 -
    - Rwanda 0.24 -
  - TOTAL RST COMMITMENTS (G) 2 . 51

### Overall lending, outreach, and operational highlights (October 2022 to March 2023)
- TOTAL LENDING COMMITMENTS = SDR 216.09 BILLION
- Outreach and publications (October 2022 to March 2023):
  - 16. 4 million visitors to flagship publications, blogs, F&D, and Country Focus webpages
  - Publications on Climate, Digital, Inclusion:
    - 55 Climate change
    - 12 Inclusion and Gender
    - 58 Digital money
  - 21 countries received $35.9 billion total financial assistance since October 1, 2022; 12 of which have a PRGT facility
  - CD Delivery in FY23:
    - 1,321 single country CD Projects to 173 countries
    - 66% to LIDCs, FCS, and small states
  - IMF Online Learning (since launch of Online Learning Program (2013) to March 2023):
    - Microlearning via YouTube: 251 videos; 199 countries; 13. 4 k subscribers; 6 languages; 1.1m views; 164 k active users
  - RST*, PRGT, and CCRT Fundraising:
    - of which SDR 7.3 billion is met
- Other operational activity indicators:
  - 6 Financial System Stability Assessments
  - 56 Article IV consultations

*Source: ppea2023014 - Section 1; ppea2023014 - Section 2*

### Section 1

### ppea2023014 - Section 1

### I. SAFEGUARD ECONOMIC STABILITY
- Global outlook and risks:
  - Tentative stabilization signs earlier in 2022 have receded; outlook is increasingly risky and uncertain.
  - Successive shocks—including Russia’s war against Ukraine—and recent financial market stress, in the context of tighter monetary policies needed to bring down inflation, are weighing on the global recovery and macro-financial stability.
  - Global growth in the near and medium term is projected to remain weak by historical standards and could weaken further if financial stress continues and leads to a sharp tightening of financial conditions.
  - Declining commodity prices and synchronized monetary tightening helped moderate inflation, but underlying price pressures are proving sticky.
- Distributional and fragmentation concerns:
  - A record 345 million people, mainly in low-income countries (LICs), face acute food insecurity.
  - More than 700 million people are living in extreme poverty.
  - About 60 percent of LICs and 25 percent of EMs are already in or at risk of debt distress.
- Policy priorities and recommendations:
  - Monetary policy:
    - Continue to prioritize durably bringing inflation down and guarding against a de-anchoring of inflation expectations.
    - Calibrate policies in a data-dependent manner, communicate objectives clearly, and be ready to adjust and use full set of policy instruments, including to address financial stability concerns.
    - Where market strains emerge, central banks should stand ready to provide appropriate liquidity support, while safeguarding their balance sheets.
  - Regulatory, supervisory, and macroprudential policy:
    - Strengthen resilience of the financial sector, including to abrupt or sizable changes in interest rates and real estate and other asset prices.
    - Monitor developments carefully and address data, supervisory, and regulatory gaps in both the bank and nonbank financial sectors.
    - Use preemptive capital flow measures (CFMs) on inflows and macroprudential measures in some circumstances; allow currencies to adjust if capital flow and exchange-rate pressures emerge; temporary foreign exchange intervention could address market dysfunction; temporary CFMs on outflows may help in imminent crisis circumstances.
  - Fiscal policy:
    - Continue reducing elevated debt levels while buttressing monetary and financial sector policies in bringing inflation down and maintaining financial stability.
    - Target measures addressing cost-of-living pressures to support the most vulnerable while preserving market signals from higher prices.
    - Adopt credible risk-based fiscal frameworks to reduce debt vulnerabilities and rebuild buffers.
  - Supply-side and structural policies:
    - Design supply-side policies to bolster growth, alleviate price pressures, and build supply-chain resilience while avoiding distortive practices.
    - Structural reforms should address market power and rent-seeking, improve regulations, planning, and the business environment; support education; and bolster labor-market flexibility and participation.
  - International coordination:
    - Support trade as an engine for growth; refrain from distortive trade practices, avoid wasteful subsidy races, and strengthen the multilateral trade system, including through the World Trade Organization.
- IMF surveillance and internal work:
  - Bilateral surveillance: provide consistent policy-mix advice tailored to countries, upgrade macro-financial analysis, and operationalize the Integrated Policy Framework and revised Institutional View to guide use of multiple policy tools.
  - Governance and trade reviews: completed review of the Framework for Enhanced Fund Engagement on Governance; recent Review of the Role of Trade in the Work of the Fund to guide policy advice on supply-chain resilience while avoiding protectionism.
  - Multilateral surveillance: prioritize macroeconomic policies to contain inflation, study monetary-fiscal interactions and commodity-price shock responses, analyze capital flows, CFMs, crises, fiscal policy on elevated debt, digitalization of public finance and infrastructure, and financial sector vulnerabilities.
  - Work on spillovers from fragmentation to help members reach common understanding and pragmatic solutions that preserve the stability of the International Monetary System (IMS).

### II. SUPPORT VULNERABLE COUNTRIES
- Rationale:
  - Joint action is critical to ensure macroeconomic stability in vulnerable countries and to safeguard global stability; international support mitigates spillovers and contagion and helps avoid economic hardship, unrest, and displacement.
- Priority actions:
  - Ending Russia’s war in Ukraine remains the single most impactful action.
  - Overcoming the food crisis and addressing poverty require lifting restrictions on food and fertilizers and mobilizing new concessional support, including through voluntary channeling of Special Drawing Rights (SDRs).
  - Accelerating debt distress resolution hinges on more effective implementation of the G20 Common Framework (CF), supported by the Paris Club; enhanced creditor coordination is necessary for timely restoration of debt sustainability, including for vulnerable middle-income countries (MICs).
- IMF lending and facilities—recent activity and plans:
  - Support to LICs and FCS:
    - Since fall 2022, six countries (Ukraine, Malawi, Guinea, Haiti, South Sudan, and Burkina Faso) have benefited from emergency financing (Rapid Financing Instrument (RFI)/Rapid Credit Facility (RCF)) under the new Food Shock Window (FSW).
    - Four other countries (Mauritania, Bangladesh, Guinea Bissau, and Papua New Guinea) benefited from upper-credit tranche (UCT) arrangements.
    - Planned review of the RFI/RCF access limits and of the FSW; begin work on the 2024-25 review of the Poverty Reduction and Growth Trust (PRGT).
  - Support to EMs:
    - Seven countries (North Macedonia, Barbados, Armenia, Egypt, Serbia, Sri Lanka, and Ukraine) received financing under new General Resources Account (GRA)-supported programs.
    - EMs benefit from access to IMF precautionary facilities, with currently about SDR 66 billion committed, including Morocco’s recently-approved Flexible Credit Line (FCL).
    - Temporarily raised normal access limits in the GRA and reviewing precautionary facilities; changes to financing assurances policy allow possible UCT engagement with members facing exceptionally high uncertainty, subject to safeguards.
  - Resilience and Sustainability Trust (RST):
    - Five countries (Costa Rica, Barbados, Rwanda, Bangladesh, and Jamaica) are benefiting from the RST to enhance resilience to climate-related shocks.
    - Assessing experiences to draw early lessons.
- SDRs, quota review, and resource mobilization:
  - The historic $650 billion SDR allocation in 2021 helped address long-term reserve needs, build confidence, and bolster resilience and stability; it also helped create fiscal space for immediate needs.
  - IMF is reviewing the use of SDRs, including assessment of support to LICs, impact on members’ reserves, SDR channeling, and consistency with transparency and accountability principles.
  - For the IMF to continue fulfilling its role at the center of the global financial safety net (GFSN), members must achieve a timely and successful conclusion of the 16th General Review of Quotas (GRQ) by December 15, 2023.
  - To bridge until the GRQ agreement becomes effective, members’ support is needed for extending the Bilateral Borrowing Agreements through the end of 2024 to avoid a decline in IMF resources at the end of 2023.
  - PRGT and RST funding needs:
    - For the PRGT, sought SDR 12.6 billion in additional loan resources and SDR 2.3 billion in new subsidy resources to support zero-interest lending and to finance the 2021 reforms.
    - So far, pledges amount to around three-fourths of the loan resources target but less than half of the subsidy resource target.
    - Financing needs for the PRGT are expected to increase further due to strong demand for IMF support and sharply higher interest rates.
    - Rely on membership support to meet the agreed 2021 fundraising target by the Annual Meetings in Morocco; lay out principles of a burden-shared medium-term strategy to place the PRGT on a sustainable footing to guide the upcoming PRGT review.
    - Timely delivery of existing pledges and new pledges toward the SDR 33 billion fundraising goal for the RST are essential.
- Debt architecture and coordination efforts:
  - Common Framework (CF): work to make processes more predictable, timely, and orderly; early lessons from Chad can inform ongoing cases (Ghana, Zambia, and Ethiopia); working with the World Bank to improve information provision to creditors, including on information underlying IMF debt sustainability analyses.
  - Global Sovereign Debt Roundtable (GSDR): launched with the World Bank and the Indian G20 Presidency to bring together Paris Club members, new official bilateral creditors (China, Saudi Arabia, India), private sector, and borrowing countries to foster common understanding on concepts and principles to facilitate restructurings.
  - Debt sustainability and transparency: monitor practices for contractual approaches to sovereign debt restructuring and improve debt transparency, including through technical assistance; collaborate with the World Bank to lay groundwork for the next review of the LIC Debt Sustainability Framework.

### III. SUSTAIN OUR FUTURE PROSPERITY
- Framing:
  - Multilateral cooperation is essential to protect the future against climate change and to harness digitalization while managing its risks.
- Climate action:
  - Global action is essential to reduce greenhouse gas emissions and to deliver on the Paris Agreement to avoid uncontrolled global warming.
  - Large emitters need to urgently come together to decisively cut emissions.
  - Step up climate finance from all sources to support adaptation and transition efforts; bringing in private sector finance is key.
  - Mobilizing private finance requires harmonizing climate-disclosure standards, reinforcing the climate-information architecture, and addressing impediments such as capital market development and the business climate.
- Digitalization:
  - Leverage digital technologies to improve payment systems, advance financial inclusion, and realize productivity gains.
  - Globally coordinated regulation of digital services and development of global standards are needed to minimize risks from new digital technologies.
  - Robust design and coordination of central bank digital currencies (CBDCs) and other digital platforms can avoid fragmentation of payment systems and support greater payment efficiency.
- IMF role in multilateral solutions:
  - Continue work on climate policies and their macroeconomic—especially cross-border—impact on members.
  - Provide analytical work on energy security and climate mitigation, climate stress testing, and the impact of the green transition on innovation.
  - Help members strengthen policy frameworks for climate resilience to mobilize additional climate financing.

*Source: ppea2023014 - Section 1*

### Section 2

### THE MANAGING DIRECTOR’S GLOBAL POLICY AGENDA

### Climate, Digital, and Data Work
- Coordinated effort with countries, donors, and Multilateral Development Banks is essential to support development financing for climate mitigation and adaptation; maximize synergies; and unlock green, resilient, and sustainable growth.
- IMF actions:
  - Improving availability and quality of climate data, including through the IMF’s Data Standards Initiative and contribution to the G20’s Data Gaps Initiative.
  - Reviewing the Climate Macroeconomic Assessment Program.
  - Analyzing macroeconomic implications of digital money and assets and helping develop global principles for public and private digital infrastructure.
  - Work on cross-border multilateral currency exchange and contracting platforms emphasizes importance of digital public goods, including access to CBDCs, to improve cross-border payments and finance.
  - Following Executive Board endorsement of the paper on elements of effective policies for crypto assets, stepped up analysis of macro-financial implications of crypto assets, working closely with standard-setting bodies and other stakeholders.
  - Analyzing implications of digital money for the IMS with aim to develop policy principles to foster cooperation and stability.

### Capacity Development (CD)
- IMF CD continues to support members’ efforts to build macroeconomic resilience and is being integrated with surveillance and lending, focusing on tailored technical assistance and training.
- Continued activity in traditional CD areas, including fiscal and debt-related issues.
- Responding to growing CD demands from FCSs and providing support in emerging areas such as digital and climate issues.
- 2023 Review of the Fund’s CD Strategy underway to modernize management, administration, and delivery.

### Internal Practices, Governance, and Transparency
- Implementing Enterprise Risk Management framework to ensure an institution-wide risk culture for effective identification, assessment, and treatment of risks.
- Following up on recommendations of the Institutional Safeguards Review, including strengthening the IMF’s internal Dispute Resolution System to ensure robust governance structure.
- Reviewing the Transparency Policy to improve openness and clarity while strengthening traction and accountability.
- Continuing efforts to improve staff diversity and inclusion.

### Lending and Financial Arrangements (General Resources Account)
- Members with current arrangements (selected lines shown with Current Program Size and Outstanding Credit):
  - Stand-By Arrangements (SBA)
    - Armenia, Republic of 0 .13 0.35
    - Georgia 0.21 0.47
    - Serbia, Republic of 1.90 0.79
  - Extended Fund Facility (EFF)
    - Argentina 31.91 34.23
    - Bangladesh 1.65 0.59
    - Barbados 0.09 0.34
    - Benin 0.32 0.23
    - Cameroon 0.32 0.21
    - Costa Rica 1. 24 0.99
    - Egypt, Arab Republic of 2.35 13.42
    - Gabon 0.39 0.75
    - Jordan 1.15 1.46
    - Kenya 1. 25 0.75
    - Mauritania, Islamic Republic of 0.04 0.01
    - Moldova, Republic of 0.40 0.29
    - Pakistan 4.99 5.57
    - Papua New Guinea 0.46 0.04
    - Seychelles 0.07 0.09
    - Sri Lanka 2.29 1.04
    - Suriname 0.47 0.08
    - Ukraine 11. 61 9.04
  - Flexible Credit Line (FCL)
    - Chile 13.95 -
    - Colombia 7.16 3.75
    - Mexico 35.65 -
    - Peru 4.00 -
  - Precautionary and Liquidity Line (PLL)
    - Jamaica 0.73 0.54
    - North Macedonia, Republic of 0.41 0.22
- Totals and balances (as of March 31 2023, in billions of SDRs):
  - Total Current Arrangements 125.12
  - o/w Undrawn Balance (A) 93.73
  - Total Outstanding Credit (B) 75.26
  - Members without current arrangements: Total Outstanding Credit (C) 23.47
  - Other Upper Credit Tranche (UCT) 13.00
    - o/w Ecuador 5.63
    - o/w Angola 3.21
    - o/w Morocco 1.50
  - Rapid Financing Instrument (RFI) 10.47
    - o/w South Africa 3.05
    - o/w Nigeria 2.45
    - o/w Tunisia 0.55
  - TOTAL GRA COMMITMENTS (A)+(B)+(C) 192 . 46

### Poverty Reduction and Growth Trust (PRGT) Financial Arrangements
- Members with current arrangements (selected lines shown with Current Program Size and Outstanding Credit):
  - Extended Credit Facility (ECF)
    - Bangladesh 0.82 0.46
    - Benin 0 .16 0.30
    - Cabo Verde 0.05 0.05
    - Cameroon 0 .16 0.80
    - Chad 0.39 0.56
    - Congo, Democratic Republic of 1.07 1.14
    - Congo, Republic of 0.32 0.23
    - Gambia, The 0.07 0 .10
    - Guinea-Bissau 0.03 0.03
    - Kenya 0.57 1.01
    - Liberia 0 .16 0 .19
    - Madagascar, Republic of 0.22 0.65
    - Mauritania, Islamic Republic of 0.02 0.24
    - Moldova, Republic of 0.20 0.20
    - Mozambique, Republic of 0.34 0.44
    - Nepal 0.28 0.25
    - Niger 0.20 0.36
    - Papua New Guinea 0.23 0.29
    - Sierra Leone 0 .12 0.36
    - Somalia 0.25 0.24
    - Tanzania, United Republic of 0.80 . 51
    - Uganda 0.72 0.81
    - Zambia 0.98 0 .14
- Totals and balances:
  - Total Current Arrangements 8 .16
  - o/w Undrawn Balance (D) 4.64
  - Total Outstanding Credit (E) 9. 37
  - Members without current arrangements: Total Outstanding Credit (F) 7.12
  - Other Upper Credit Tranche (UCT) 3.83
    - o/w Sudan 0.99
    - o/w Ghana 0.52
    - o/w Côte d'Ivoire 0.38
  - Rapid Credit Facility (RCF) 3.28
    - o/w Ghana 0 .74
    - o/w South Sudan 0.25
    - o/w Côte d'Ivoire 0.22
  - TOTAL PRGT COMMITMENTS (D)+(E)+(F) 23.41

### Resilience and Sustainability Trust (RST) Arrangements
- Resilience and Sustainability Facility (RSF) commitments:
  - Bangladesh 1.0 0-
  - Barbados 0 .14 -
  - Costa Rica 0.55 -
  - Jamaica 0.57 -
  - Rwanda 0.24 -
- TOTAL RST COMMITMENTS (G) 2 . 51

### Overall Lending and Outreach Highlights
- TOTAL LENDING COMMITMENTS = SDR 216.09 BILLION
- Note: October 2022 to March 2023.
- Outreach and publications (October 2022 to March 2023):
  - 16. 4 million visitors to flagship publications, blogs, F&D, and Country Focus webpages
  - Publications on Climate, Digital, Inclusion:
    - 55 Climate change
    - 12 Inclusion and Gender
    - 58 Digital money
  - 21 countries received $35.9 billion total financial assistance since October 1, 2022; 12 of which have a PRGT facility
  - CD Delivery in FY23:
    - 1,321 single country CD Projects to 173 countries
    - 66% to LIDCs, FCS, and small states
  - IMF Online Learning (since launch of Online Learning Program (2013) to March 2023):
    - Microlearning via YouTube: 251 videos; 199 countries; 13. 4 k subscribers; 6 languages; 1.1m views; 164 k active users
  - RST*, PRGT, and CCRT Fundraising:
    - of which SDR 7.3 billion is met
- Other operational activity indicators:
  - 6 Financial System Stability Assessments
  - 56 Article IV consultations

*Source: ppea2023014 - Section 2*

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_Source: https://www.imf.org/-/media/files/publications/pp/2023/english/ppea2023014.pdf_