## gpa-am101719

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---

### GLOBAL SETTING AND MULTILATERAL SURVEILLANCE
- The global economy has experienced a synchronized slowdown, and growth remains weak.
- Key headwinds: escalating trade disputes, entrenched policy uncertainty, adverse geopolitical developments, waning demand, and muted inflation.
- Recent policy responses:
  - Several central banks are providing additional monetary policy stimulus.
  - Fiscal stimulus is also in train in some major economies.
- Outlook and risks:
  - The expected recovery in growth in 2020 is precarious.
  - Structural constraints: low labor productivity growth, rising inequality, demographic shifts.
  - Significant downside risks from a further broadening of trade tensions and rising financial vulnerabilities.
  - Growing risk that trade disputes could spill over to monetary, exchange rate, or financial sector policies and threaten global financial stability.
- Policy guidance:
  - Reverse tariff increases and find lasting solutions to trade disputes, including removing domestic distortions and strengthening the multilateral trading system.
  - Monetary policy: remain accommodative in many countries, operate independently, and be data-dependent.
  - Macro-/microprudential policies: tighten where vulnerabilities are building, including from high private sector debt.
  - Exchange rate flexibility, where feasible, to help mitigate external shocks.
  - Fiscal policy: be more growth-friendly and support activity where fiscal space exists while balancing debt sustainability and social objectives.
  - Structural reforms to boost medium-term growth prospects.

### ECONOMIC AND FINANCIAL RESEARCH
- The Fund’s research agenda is translating evidence-based analysis into policy recommendations to enhance resilience and inclusion.
- Integrated Policy Framework:
  - Ongoing work to develop an Integrated Policy Framework to provide members, particularly those exposed to volatile capital flows, a more systematic assessment of the mix of policies to achieve growth and stability.
  - Preliminary insights: complexity of interactions among monetary, exchange rate, macroprudential, and capital flow management policies; importance of currency mismatches and capital market depth.
- Other research and analytical work:
  - Considering the impact of low or negative interest rates, including side effects and unintended consequences.
  - Working on leading practices in central bank governance and a new central bank transparency framework.
  - Deepening analysis of inclusive growth, inequality, and poverty reduction; operationalizing a strategy for the Fund’s engagement on social spending.
  - Addressing within-country regional disparities, gender gaps, and promoting financial inclusion.
  - Deepening analysis of rising market power and implications for competition policy.
  - Macro effects of structural reforms: a new comprehensive database shows a renewed effort could double the speed of convergence of emerging markets and developing economies to the living standards of advanced economies over the next decade.
  - Study on political costs of economic reforms: internalizing political-economy considerations improves political viability of reforms.
- Surveillance and tools:
  - Enhancing macrofinancial surveillance by integrating financial issues in Article IV consultations; developing tools to detect systemic risks (including corporate and real estate sectors and large credit expansions); strengthening the Financial Sector Assessment Program analytical toolkit.
  - Establishing a new monetary and macroprudential policy modeling unit.
  - Implementing the HR strategy and improved training to build financial skills and expertise at the Fund.

### GLOBAL SOLUTIONS
- Trade and international frameworks:
  - Promote an open, stable, and transparent multilateral trading system; modernize rules by opening trade in services and e-commerce and strengthening rules on agricultural and industrial subsidies, investment, and technology transfer.
  - WTO-based plurilateral negotiations can help; Fund will collaborate with WTO and other organizations to promote open trade and facilitate implementation of the WTO Trade Facilitation Agreement.
- External positions and exchange rates:
  - The Fund will continue to provide an evenhanded, multilaterally-consistent assessment of external positions across the full membership.
  - 2019 External Sector Report highlights: recent trade policy actions have not materially affected global current account imbalances, but stock imbalances at record levels increase financial stability risks, especially with high external debt.
  - Countries should avoid manipulating exchange rates to prevent effective balance of payments adjustment or gain an unfair competitive advantage.
- Debt and fiscal transparency:
  - The Fund assists members in strengthening debt transparency and sustainable lending through a multipronged approach with the World Bank.
  - With public debt remaining high, the Fund continues to monitor debt developments, help countries reduce debt risks, and enhance fiscal risk management and public sector balance sheet analysis.
- Fragile and conflict-affected states:
  - Effective support is a key priority given rising migration and forced displacement.
  - Informed by an IEO report and in collaboration with World Bank, UN, and OECD, the Fund is:
    - Developing country engagement strategies.
    - Focusing CD support on building institutional and human capacity.
    - Implementing or discussing Fund programs in 25 of 42 fragile and conflict-affected states aimed at better-tailored and more sustained financial support with streamlined policy commitments.
  - Enhanced focus is being reflected in the HR strategy.
- Financial regulation, fintech, and data:
  - Continue upgrading and implementing the regulatory reform agenda in cooperation with standard setters and other institutions.
  - Analyze adaptation of national prudential frameworks to international reforms and address withdrawal of correspondent banking relationships.
  - Serve as a global platform on fintech (building on the Bali Fintech Agenda): analyze macroeconomic, inclusion, stability, and integrity implications and deepen fintech coverage in surveillance.
  - Study implications of emerging digital assets, including central bank digital currencies and stablecoins, for monetary policy, financial stability, and the international monetary system.
  - Advance work on taxation: coordinated multilateral action to avoid fragmentation, reduce tax avoidance, and minimize profit shifting; analyze impact of global tax changes on LICs; support the Platform for Collaboration on Tax.
  - Integrate work on illicit financial flows, AML/CFT, and tax cooperation to identify areas for multilateral action.
  - Implement enhanced governance framework and ramp up CD on governance and corruption assessment in surveillance and program design.
  - Advance the strategy on data and statistics: reviews of Data Standards Initiatives and Data Provision to the Fund for Surveillance Purposes; leverage Big Data and artificial intelligence; develop approach to cybersecurity risk in the financial sector and support members through CD.

### CLIMATE, SUSTAINABILITY, AND INCLUSION
- Climate change is a global crisis; the Fund is advancing work on climate across multiple fronts:
  - Advice on climate mitigation through carbon pricing and alternative instruments for efficient energy pricing and transition to a greener economy.
  - Strategy to integrate climate change into surveillance and Fund policy reviews.
  - Support for building structural, financial, and post-disaster resilience, particularly in small states and LICs vulnerable to natural disasters.
  - Analysis of sustainable finance and links between climate change and financial stability, in collaboration with central banks and financial regulators.
  - Research into pricing of climate change risk and collaboration with the World Bank on climate policy assessments.

### MODERNIZING THE FUND’S TOOLKIT, OPERATIONS, AND RESOURCES
- Surveillance and program reviews:
  - Ongoing Comprehensive Surveillance Review and Review of the Financial Sector Assessment Program (coordinated with the World Bank) to integrate longer-term trends and enhance traction.
  - Discussing proposals to reform the Fund’s policy on multiple currency practices and reviewing misreporting policies.
  - Completed the first comprehensive stocktake of the Fund’s lending over the past decade; incorporating lessons and principles on program conditionality to restore external sustainability while improving macroeconomic and social outcomes.
  - Major reviews of facilities and financing for LICs: increasing access limits and enhancing flexibility and tailoring of lending instruments.
  - Review of the debt sustainability analysis for market-access countries to sharpen sovereign risk assessments.
  - Review of the debt limits policy to support debt transparency and management, including implications for collateralized sovereign debt.
  - Following the CD strategy review, updating policies and practices in CD delivery, emphasizing integration with surveillance and lending.
- Fund financial strength and governance:
  - Aim to secure swift support for a package to maintain the current level of Fund resources, provide assurances on further governance reform under the 16th General Review of Quotas, and complete the 15th General Review of Quotas.
- Internal modernization and HR:
  - HR strategy and comprehensive review of compensation and benefits to attract, retain, develop, and motivate high-caliber staff, increase regional and gender diversity and inclusion, and foster innovation.
  - Align HR policies with current and future business needs, underpinned by an internal training strategy.
  - Coordinated, large-scale reforms to upgrade processes and systems for core outputs, CD management, data analysis, and human resource and knowledge management.

### Surveillance, Capacity Development, and Lending: Key Activity Indicators
- Article IV consultations: 133
- Current lending arrangements to countries: 35
  - 17 of which have a Poverty Reduction and Growth Trust (PRGT) facility
- Total lending commitments in Special Drawing Rights (SDR): 161 billion
- Program reviews: 64
- Financial Sector Stability Assessments under the FSAP: 14
- Economies covered in the External Sector Report plus the euro area: 29
  - Share of global GDP represented: 90%
- Technical assistance visits: 3,280
- Training courses delivered: 433
- Member countries worked with: 188
- Workstreams covered: 25
- Experts involved in capacity development (Oct 2018–Sep 2019): 1,708
- Officials trained (Oct 2018–Sep 2019): 15,254

### Outstanding Credit, Commitments, and Program Details (as of end of September 2019, in billions of SDR)
- Total Lending Commitments = SDR 161 BILLION
- Total Current Programs (GRA): 124.2
  - o/w: Undrawn Balance (A)85.6
- Total Outstanding Credit (B)49.7
- Members without current arrangements: Total Outstanding Credit (C)18.6
  - o/w: Egypt–8.60
  - o/w: Greece–6.74
- TOTAL GRA COMMITMENTS (A)+(B)+(C)153.9

- PRGT Financial Arrangements:
  - Total Current Programs (PRGT): 2.7
    - o/w: Undrawn Balance (D)1.1
  - Total Outstanding Credit (E)3.3
  - Members without current arrangements: Total Outstanding Credit (F)3.1
  - TOTAL PRGT COMMITMENTS (D)+(E)+(F)7.6

- Notation:
  - 1 Numbers may not add up due to rounding.
  - 2 Includes outstanding credit under expired arrangements and outright disbursements.
  - 3 Available balance not yet drawn under current arrangements.

### Members with Current Arrangements — Selected Lines (current program size / outstanding credit, in SDR)
- Stand-by Arrangement examples:
  - Argentina 40.71 / 31.91
  - Armenia 0.18 / 0.14
  - Honduras 0.15 / –
  - Jamaica 1.20 / 0.47
  - Ukraine 2.80 / 6.88
- Extended Fund Facility examples:
  - Angola 2.67 / 0.89
  - Barbados 0.21 / 0.07
  - Bosnia-Herzegovina 0.44 / 0.13
  - Côte d'Ivoire 0.43 / 0.37
  - Ecuador 3.04 / 0.91
  - Pakistan 4.27 / 4.66
  - Tunisia 1.95 / 1.30
- Flexible Credit Line examples:
  - Colombia 7.85 / –
  - Mexico 53.48 / –
- Precautionary and Liquidity Line example:
  - Morocco 2.15 / –

### IMF Financial Position (as of end of Financial Year 2019, in billions of US dollars)
- TOTAL ASSETS: 713
  - Currencies: 645
    - o/w Usable currencies: 463
    - o/w Credit outstanding: 89
  - SDR holdings: 32
  - Investments: 30
  - Other assets (including gold): 6
- LIABILITIES, RESERVES, AND RETAINED EARNINGS: 713
  - Quotas: 661
  - Borrowings: 19
  - Other liabilities: 3
  - Reserves of the GRA: 29
  - Retained earnings: 1

### Financial Position of Concessional Lending and Debt Relief Trusts (end of FY19, in billions of US dollars)
- PRGT / PRG-HIPC / CCR TRUST — TOTAL ASSETS: 19.8 / 0.5 / 0.2
  - o/w Cash and investments: 10.8 / 0.5 / 0.2
  - o/w Loans receivable: 8.9 / -- / --
- LIABILITIES AND RESOURCES: 19.8 / 0.5 / 0.2
  - o/w Borrowings: 9.3 / 0.1 / -
  - o/w Resources: 10.3 / 0.3 / 0.2

### Consolidated Operational Income and Expenses — Selected Years (in millions of US dollars)
- FY08 / FY12 / FY19
  - A. OPERATIONAL INCOME: 871 / 3,185 / 2,168
    - Lending income (including surcharges): 267 / 2,943 / 1,649
    - Non-lending income: 604 / 242 / 519
      - o/w Investment income: 598 / 237 / 427
  - B. EXPENSES: 932 / 998 / 1,220
    - Net administrative budget: 891 / 947 / 1,131
      - o/w Personnel: 714 / 799 / 995
    - Other: 41 / 189 / --
  - C. NET OPERATIONAL INCOME (A-B): -61 / 2,187 / 948

- MEMORANDUM ITEMS:
  - Net administrative budget in FY19 dollars: 1,194 / 1,122 / 1,135
  - SDR interest rate (end of period): 2.74 / 0.14 / 1.14
  - Three-month US Treasury bill rate (end of period): 1.33 / 0.09 / 2.42
  - Gross Spending on:
    - Surveillance–4: 69 / 59 / 94
    - Oversight of global systems–11: 3 / 14 / 6
    - Lending–186 / 177 / --
    - Capacity development–253 / 401 / --
      - o/w externally financed direct spending–100 / 178 / --

- Note: Figures in US dollars based on average exchange rates for respective years ($1.57/SDR for FY08, $1.57/SDR for FY12, $1.40/SDR for FY19). Figures in US dollars based on an exchange rate of $1.39/SDR as of April 30, 2019.

### IMF’s Lending Capacity and Financing Instruments (as of end of FY19, in billions of US dollars)
- TOTAL LENDING CAPACITY: 989
  - Bilaterals: 347
  - Quotas: 444
  - NAB: 198 (expire 2022)
  - Note: The IMF’s lending capacity is calculated after setting aside a liquidity buffer of 20 percent and considering that only resources of members and participants with strong external positions are used for lending.
  - 4 Bilateral Borrowing Agreements (expire 2019/20)

### Outreach and Digital Engagement (Oct 2018–Sep 2019)
- Unique visitors to IMF.org: 12.1 million
- Top topics by unique visitors:
  1. Country information
  2. Global economy
  3. About the IMF

### Spending on Capacity Development (Direct spending, in millions of US dollars)
- FY 2016: 130
- FY 2017: 127
- FY 2018: 132
- FY 2019: 134

### IMF Highlights Since October 2018 — Major Deliverables and Workstreams
- Advanced work on the Integrated Policy Framework and strengthened the Fund’s modeling capacity.
- Discussed the management implementation plan in response to the IEO recommendations on the Fund’s financial surveillance.
- Held the 9th High-Level Conference on the International Monetary System (jointly with the Swiss National Bank).
- Studied credit booms and the role of the construction sector.
- Presented a proposal to update the Monetary and Financial Policies Transparency Code.
- Analyzed regional disparities in advanced economies and the role of national structural reforms in building resilience in the euro area.
- Studied macroeconomic effects of structural reforms in emerging markets and developing economies and the political costs and viability of economic reforms.
- Delivered and started implementing the Fund’s strategy on engagement on social spending.
- Reviewed implementation of the Fund’s commitments toward the 2030 Development Agenda.
- Advanced management implementation plan in response to IEO recommendations on engagement with fragile and conflict-affected states.
- Continued to monitor trade developments, including in the context of bilateral surveillance.
- Analyzed global imbalances and assessed external positions in the 2019 External Sector Report; studied the role of exchange rates in facilitating external adjustment.
- Delivered an update on the multipronged approach for addressing debt vulnerabilities, jointly with the World Bank.
- Released new fiscal risk assessment and management tools and the public sector balance sheet database.
- Studied a capital market union for Europe.
- Analyzed financial stability implications of banks’ dollar funding and links between sustainable finance and financial stability; presented a framework for evaluating global financial stability risks.
- Examined the role of fiscal policies in mitigating climate change; delivered a strategy for building resilience in developing countries vulnerable to large natural disasters.
- Presented a stocktake on fintech experiences, advanced work on emerging digital assets, and contributed to the G7 report on global stablecoins.
- Expanded coverage of the Data Standards Initiatives and organized a global conference to advance the G20 Data Gaps Initiative; discussed an integrated approach to data policy frameworks.
- Delivered notes to the G20 on: the global economy, imbalances, aging, sustainable lending practices, international taxation, infrastructure investment, and women’s empowerment.
- Advanced work on the 2020 Comprehensive Surveillance Review and the 2020 Review of the Financial Sector Assessment Program (coordinated with the World Bank).
- Completed the 2018 Review of Program Design and Conditionality.
- Concluded the 2018–19 Review of Facilities for Low-Income Countries (LICs) and the Review of the Financing of the Fund’s Concessional Assistance and Debt Relief to LICs.
- Continued engagement on the review of the debt limits policy and advanced work on the review of the debt sustainability analysis for market access countries.
- Presented revisions to the Fund’s policies and practices on capacity development.
- Advanced work on Fund resources and governance reforms.
- Continued roll-out of the new HR strategy and advanced work on the Comprehensive Compensation and Benefits Review.
- Completed the major renovation of the Fund’s headquarters building.
- Continued implementation of a multi-project modernization agenda to upgrade internal operations, integrate business processes, and adopt digital tools.
- Discussed Fund risk mitigation policies and updated on information security.

*Source: THE MANAGING DIRECTOR’S GLOBAL POLICY AGENDA UPDATE — Annual Meetings 2019 / gpa-am101719 - Section 2 (excerpt).*

### Section 1

### THE MANAGING DIRECTOR’S Annual Meetings Bridging Differences through Multilateral Cooperation 2019 UPDATE

### GLOBAL SETTING AND MULTILATERAL SURVEILLANCE
- The global economy has experienced a synchronized slowdown, and growth remains weak.
- Key headwinds: escalating trade disputes, entrenched policy uncertainty, adverse geopolitical developments, waning demand, and muted inflation.
- Recent policy responses:
  - Several central banks are providing additional monetary policy stimulus.
  - Fiscal stimulus is also in train in some major economies.
- Outlook and risks:
  - The expected recovery in growth in 2020 is precarious.
  - Structural constraints: low labor productivity growth, rising inequality, demographic shifts.
  - Significant downside risks from a further broadening of trade tensions and rising financial vulnerabilities.
  - Growing risk that trade disputes could spill over to monetary, exchange rate, or financial sector policies and threaten global financial stability.
- Policy guidance:
  - Reverse tariff increases and find lasting solutions to trade disputes, including removing domestic distortions and strengthening the multilateral trading system.
  - Monetary policy: remain accommodative in many countries, operate independently, and be data-dependent.
  - Macro-/microprudential policies: tighten where vulnerabilities are building, including from high private sector debt.
  - Exchange rate flexibility, where feasible, to help mitigate external shocks.
  - Fiscal policy: be more growth-friendly and support activity where fiscal space exists while balancing debt sustainability and social objectives.
  - Structural reforms to boost medium-term growth prospects.

### ECONOMIC AND FINANCIAL RESEARCH
- The Fund’s research agenda is translating evidence-based analysis into policy recommendations to enhance resilience and inclusion.
- Integrated Policy Framework:
  - Ongoing work to develop an Integrated Policy Framework to provide members, particularly those exposed to volatile capital flows, a more systematic assessment of the mix of policies to achieve growth and stability.
  - Preliminary insights: complexity of interactions among monetary, exchange rate, macroprudential, and capital flow management policies; importance of currency mismatches and capital market depth.
- Other research and analytical work:
  - Considering the impact of low or negative interest rates, including side effects and unintended consequences.
  - Working on leading practices in central bank governance and a new central bank transparency framework.
  - Deepening analysis of inclusive growth, inequality, and poverty reduction; operationalizing a strategy for the Fund’s engagement on social spending.
  - Addressing within-country regional disparities, gender gaps, and promoting financial inclusion.
  - Deepening analysis of rising market power and implications for competition policy.
  - Macro effects of structural reforms: a new comprehensive database shows a renewed effort could double the speed of convergence of emerging markets and developing economies to the living standards of advanced economies over the next decade.
  - Study on political costs of economic reforms: internalizing political-economy considerations improves political viability of reforms.
- Surveillance and tools:
  - Enhancing macrofinancial surveillance by integrating financial issues in Article IV consultations; developing tools to detect systemic risks (including corporate and real estate sectors and large credit expansions); strengthening the Financial Sector Assessment Program analytical toolkit.
  - Establishing a new monetary and macroprudential policy modeling unit.
  - Implementing the HR strategy and improved training to build financial skills and expertise at the Fund.

### GLOBAL SOLUTIONS
- Trade and international frameworks:
  - Promote an open, stable, and transparent multilateral trading system; modernize rules by opening trade in services and e-commerce and strengthening rules on agricultural and industrial subsidies, investment, and technology transfer.
  - WTO-based plurilateral negotiations can help; Fund will collaborate with WTO and other organizations to promote open trade and facilitate implementation of the WTO Trade Facilitation Agreement.
- External positions and exchange rates:
  - The Fund will continue to provide an evenhanded, multilaterally-consistent assessment of external positions across the full membership.
  - 2019 External Sector Report highlights: recent trade policy actions have not materially affected global current account imbalances, but stock imbalances at record levels increase financial stability risks, especially with high external debt.
  - Countries should avoid manipulating exchange rates to prevent effective balance of payments adjustment or gain an unfair competitive advantage.
- Debt and fiscal transparency:
  - The Fund assists members in strengthening debt transparency and sustainable lending through a multipronged approach with the World Bank.
  - With public debt remaining high, the Fund continues to monitor debt developments, help countries reduce debt risks, and enhance fiscal risk management and public sector balance sheet analysis.
- Fragile and conflict-affected states:
  - Effective support is a key priority given rising migration and forced displacement.
  - Informed by an IEO report and in collaboration with World Bank, UN, and OECD, the Fund is:
    - Developing country engagement strategies.
    - Focusing CD support on building institutional and human capacity.
    - Implementing or discussing Fund programs in 25 of 42 fragile and conflict-affected states aimed at better-tailored and more sustained financial support with streamlined policy commitments.
  - Enhanced focus is being reflected in the HR strategy.
- Financial regulation, fintech, and data:
  - Continue upgrading and implementing the regulatory reform agenda in cooperation with standard setters and other institutions.
  - Analyze adaptation of national prudential frameworks to international reforms and address withdrawal of correspondent banking relationships.
  - Serve as a global platform on fintech (building on the Bali Fintech Agenda): analyze macroeconomic, inclusion, stability, and integrity implications and deepen fintech coverage in surveillance.
  - Study implications of emerging digital assets, including central bank digital currencies and stablecoins, for monetary policy, financial stability, and the international monetary system.
  - Advance work on taxation: coordinated multilateral action to avoid fragmentation, reduce tax avoidance, and minimize profit shifting; analyze impact of global tax changes on LICs; support the Platform for Collaboration on Tax.
  - Integrate work on illicit financial flows, AML/CFT, and tax cooperation to identify areas for multilateral action.
  - Implement enhanced governance framework and ramp up CD on governance and corruption assessment in surveillance and program design.
  - Advance the strategy on data and statistics: reviews of Data Standards Initiatives and Data Provision to the Fund for Surveillance Purposes; leverage Big Data and artificial intelligence; develop approach to cybersecurity risk in the financial sector and support members through CD.

### CLIMATE, SUSTAINABILITY, AND INCLUSION
- Climate change is a global crisis; the Fund is advancing work on climate across multiple fronts:
  - Advice on climate mitigation through carbon pricing and alternative instruments for efficient energy pricing and transition to a greener economy.
  - Strategy to integrate climate change into surveillance and Fund policy reviews.
  - Support for building structural, financial, and post-disaster resilience, particularly in small states and LICs vulnerable to natural disasters.
  - Analysis of sustainable finance and links between climate change and financial stability, in collaboration with central banks and financial regulators.
  - Research into pricing of climate change risk and collaboration with the World Bank on climate policy assessments.

### MODERNIZING THE FUND’S TOOLKIT, OPERATIONS, AND RESOURCES
- Surveillance and program reviews:
  - Ongoing Comprehensive Surveillance Review and Review of the Financial Sector Assessment Program (coordinated with the World Bank) to integrate longer-term trends and enhance traction.
  - Discussing proposals to reform the Fund’s policy on multiple currency practices and reviewing misreporting policies.
  - Completed the first comprehensive stocktake of the Fund’s lending over the past decade; incorporating lessons and principles on program conditionality to restore external sustainability while improving macroeconomic and social outcomes.
  - Major reviews of facilities and financing for LICs: increasing access limits and enhancing flexibility and tailoring of lending instruments.
  - Review of the debt sustainability analysis for market-access countries to sharpen sovereign risk assessments.
  - Review of the debt limits policy to support debt transparency and management, including implications for collateralized sovereign debt.
  - Following the CD strategy review, updating policies and practices in CD delivery, emphasizing integration with surveillance and lending.
- Fund financial strength and governance:
  - Aim to secure swift support for a package to maintain the current level of Fund resources, provide assurances on further governance reform under the 16th General Review of Quotas, and complete the 15th General Review of Quotas.
- Internal modernization and HR:
  - HR strategy and comprehensive review of compensation and benefits to attract, retain, develop, and motivate high-caliber staff, increase regional and gender diversity and inclusion, and foster innovation.
  - Align HR policies with current and future business needs, underpinned by an internal training strategy.
  - Coordinated, large-scale reforms to upgrade processes and systems for core outputs, CD management, data analysis, and human resource and knowledge management.

*Source: THE MANAGING DIRECTOR’S GLOBAL POLICY AGENDA UPDATE — Annual Meetings 2019*

### Section 2

### gpa-am101719 - Section 2

### Surveillance, Capacity Development, and Lending: Key Activity Indicators
- Article IV consultations: 133
- Current lending arrangements to countries: 35
  - 17 of which have a Poverty Reduction and Growth Trust (PRGT) facility
- Total lending commitments in Special Drawing Rights (SDR): 161 billion
- Program reviews: 64
- Financial Sector Stability Assessments under the FSAP: 14
- Economies covered in the External Sector Report plus the euro area: 29
  - Share of global GDP represented: 90%
- Technical assistance visits: 3,280
- Training courses delivered: 433
- Member countries worked with: 188
- Workstreams covered: 25
- Experts involved in capacity development (Oct 2018–Sep 2019): 1,708
- Officials trained (Oct 2018–Sep 2019): 15,254

### Outstanding Credit, Commitments, and Program Details (as of end of September 2019, in billions of SDR)
- Total Lending Commitments = SDR 161 BILLION
- Total Current Programs (GRA): 124.2
  - o/w: Undrawn Balance (A)85.6
- Total Outstanding Credit (B)49.7
- Members without current arrangements: Total Outstanding Credit (C)18.6
  - o/w: Egypt–8.60
  - o/w: Greece–6.74
- TOTAL GRA COMMITMENTS (A)+(B)+(C)153.9

- PRGT Financial Arrangements:
  - Total Current Programs (PRGT): 2.7
    - o/w: Undrawn Balance (D)1.1
  - Total Outstanding Credit (E)3.3
  - Members without current arrangements: Total Outstanding Credit (F)3.1
  - TOTAL PRGT COMMITMENTS (D)+(E)+(F)7.6

- Notation:
  - 1 Numbers may not add up due to rounding.
  - 2 Includes outstanding credit under expired arrangements and outright disbursements.
  - 3 Available balance not yet drawn under current arrangements.

### Members with Current Arrangements — Selected Lines (current program size / outstanding credit, in SDR)
- Stand-by Arrangement examples:
  - Argentina 40.71 / 31.91
  - Armenia 0.18 / 0.14
  - Honduras 0.15 / –
  - Jamaica 1.20 / 0.47
  - Ukraine 2.80 / 6.88
- Extended Fund Facility examples:
  - Angola 2.67 / 0.89
  - Barbados 0.21 / 0.07
  - Bosnia-Herzegovina 0.44 / 0.13
  - Côte d'Ivoire 0.43 / 0.37
  - Ecuador 3.04 / 0.91
  - Pakistan 4.27 / 4.66
  - Tunisia 1.95 / 1.30
- Flexible Credit Line examples:
  - Colombia 7.85 / –
  - Mexico 53.48 / –
- Precautionary and Liquidity Line example:
  - Morocco 2.15 / –

### IMF Financial Position (as of end of Financial Year 2019, in billions of US dollars)
- TOTAL ASSETS: 713
  - Currencies: 645
    - o/w Usable currencies: 463
    - o/w Credit outstanding: 89
  - SDR holdings: 32
  - Investments: 30
  - Other assets (including gold): 6
- LIABILITIES, RESERVES, AND RETAINED EARNINGS: 713
  - Quotas: 661
  - Borrowings: 19
  - Other liabilities: 3
  - Reserves of the GRA: 29
  - Retained earnings: 1

### Financial Position of Concessional Lending and Debt Relief Trusts (end of FY19, in billions of US dollars)
- PRGT / PRG-HIPC / CCR TRUST — TOTAL ASSETS: 19.8 / 0.5 / 0.2
  - o/w Cash and investments: 10.8 / 0.5 / 0.2
  - o/w Loans receivable: 8.9 / -- / --
- LIABILITIES AND RESOURCES: 19.8 / 0.5 / 0.2
  - o/w Borrowings: 9.3 / 0.1 / -
  - o/w Resources: 10.3 / 0.3 / 0.2

### Consolidated Operational Income and Expenses — Selected Years (in millions of US dollars)
- FY08 / FY12 / FY19
  - A. OPERATIONAL INCOME: 871 / 3,185 / 2,168
    - Lending income (including surcharges): 267 / 2,943 / 1,649
    - Non-lending income: 604 / 242 / 519
      - o/w Investment income: 598 / 237 / 427
  - B. EXPENSES: 932 / 998 / 1,220
    - Net administrative budget: 891 / 947 / 1,131
      - o/w Personnel: 714 / 799 / 995
    - Other: 41 / 189 / --
  - C. NET OPERATIONAL INCOME (A-B): -61 / 2,187 / 948

- MEMORANDUM ITEMS:
  - Net administrative budget in FY19 dollars: 1,194 / 1,122 / 1,135
  - SDR interest rate (end of period): 2.74 / 0.14 / 1.14
  - Three-month US Treasury bill rate (end of period): 1.33 / 0.09 / 2.42
  - Gross Spending on:
    - Surveillance–4: 69 / 59 / 94
    - Oversight of global systems–11: 3 / 14 / 6
    - Lending–186 / 177 / --
    - Capacity development–253 / 401 / --
      - o/w externally financed direct spending–100 / 178 / --

- Note: Figures in US dollars based on average exchange rates for respective years ($1.57/SDR for FY08, $1.57/SDR for FY12, $1.40/SDR for FY19). Figures in US dollars based on an exchange rate of $1.39/SDR as of April 30, 2019.

### IMF’s Lending Capacity and Financing Instruments (as of end of FY19, in billions of US dollars)
- TOTAL LENDING CAPACITY: 989
  - Bilaterals: 347
  - Quotas: 444
  - NAB: 198 (expire 2022)
  - Note: The IMF’s lending capacity is calculated after setting aside a liquidity buffer of 20 percent and considering that only resources of members and participants with strong external positions are used for lending.
  - 4 Bilateral Borrowing Agreements (expire 2019/20)

### Outreach and Digital Engagement (Oct 2018–Sep 2019)
- Unique visitors to IMF.org: 12.1 million
- Top topics by unique visitors:
  1. Country information
  2. Global economy
  3. About the IMF

### Spending on Capacity Development (Direct spending, in millions of US dollars)
- FY 2016: 130
- FY 2017: 127
- FY 2018: 132
- FY 2019: 134
- FUND FINANCED / EXTERNALLY FINANCED breakdown shown in source figure (FY 2019 totals noted above)

### IMF Highlights Since October 2018 — Major Deliverables and Workstreams
- Advanced work on the Integrated Policy Framework and strengthened the Fund’s modeling capacity.
- Discussed the management implementation plan in response to the IEO recommendations on the Fund’s financial surveillance.
- Held the 9th High-Level Conference on the International Monetary System (jointly with the Swiss National Bank).
- Studied credit booms and the role of the construction sector.
- Presented a proposal to update the Monetary and Financial Policies Transparency Code.
- Analyzed regional disparities in advanced economies and the role of national structural reforms in building resilience in the euro area.
- Studied macroeconomic effects of structural reforms in emerging markets and developing economies and the political costs and viability of economic reforms.
- Delivered and started implementing the Fund’s strategy on engagement on social spending.
- Reviewed implementation of the Fund’s commitments toward the 2030 Development Agenda.
- Advanced management implementation plan in response to IEO recommendations on engagement with fragile and conflict-affected states.
- Continued to monitor trade developments, including in the context of bilateral surveillance.
- Analyzed global imbalances and assessed external positions in the 2019 External Sector Report; studied the role of exchange rates in facilitating external adjustment.
- Delivered an update on the multipronged approach for addressing debt vulnerabilities, jointly with the World Bank.
- Released new fiscal risk assessment and management tools and the public sector balance sheet database.
- Studied a capital market union for Europe.
- Analyzed financial stability implications of banks’ dollar funding and links between sustainable finance and financial stability; presented a framework for evaluating global financial stability risks.
- Examined the role of fiscal policies in mitigating climate change; delivered a strategy for building resilience in developing countries vulnerable to large natural disasters.
- Presented a stocktake on fintech experiences, advanced work on emerging digital assets, and contributed to the G7 report on global stablecoins.
- Expanded coverage of the Data Standards Initiatives and organized a global conference to advance the G20 Data Gaps Initiative; discussed an integrated approach to data policy frameworks.
- Delivered notes to the G20 on: the global economy, imbalances, aging, sustainable lending practices, international taxation, infrastructure investment, and women’s empowerment.
- Advanced work on the 2020 Comprehensive Surveillance Review and the 2020 Review of the Financial Sector Assessment Program (coordinated with the World Bank).
- Completed the 2018 Review of Program Design and Conditionality.
- Concluded the 2018–19 Review of Facilities for Low-Income Countries (LICs) and the Review of the Financing of the Fund’s Concessional Assistance and Debt Relief to LICs.
- Continued engagement on the review of the debt limits policy and advanced work on the review of the debt sustainability analysis for market access countries.
- Presented revisions to the Fund’s policies and practices on capacity development.
- Advanced work on Fund resources and governance reforms.
- Continued roll-out of the new HR strategy and advanced work on the Comprehensive Compensation and Benefits Review.
- Completed the major renovation of the Fund’s headquarters building.
- Continued implementation of a multi-project modernization agenda to upgrade internal operations, integrate business processes, and adopt digital tools.
- Discussed Fund risk mitigation policies and updated on information security.

*Source: gpa-am101719 - Section 2 (excerpt).

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_Source: https://www.imf.org/-/media/files/publications/pp/gpa/2019/gpa-am101719.pdf_