## APPENDIX VIII / APPENDIX IX — Excerpts (IMF Annual Report 1998) ## Source details **Canonical URL:** [APPENDIX VIII / APPENDIX IX — Excerpts (IMF Annual Report 1998)](https://www.imf.org/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/ar/98/pdf/_file10pdf.pdf) ## Other formats - [Markdown version](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/ar/98/pdf/_file10pdf.pdf.md) - [Structured JSON version](/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/ar/98/pdf/_file10pdf.pdf.json) --- ### Temporary Alternate Executive Directors (1997/98) - The following served as Temporary Alternate Executive Directors to the Executive Directors indicated during 1997/98 (format: Temporary Alternate — Executive Director Served): - Wafa Fahmi Abdelati (Egypt) — A. Shakour Shaalan (Egypt) - Hj. Ibrahim Abdul Rahman (Brunei Darussalam) — ZAMANI Abdul Ghani (Malaysia) - Aidar Abdychev (Kyrgyz Republic) — Daniel Kaeser (Switzerland) - Roberto F. Cippa (Switzerland) — Daniel Kaeser (Switzerland) - Meekal A. Ahmed (Pakistan) — Abbas Mirakhor (Iran, Islamic Republic of) - Patrick A. Akatu (Nigeria) — Dinah Z. Guti (Zimbabwe) - Zhanat Akhmetova (Kazakhstan) — Willy Kiekens (Belgium) - Mario B. Alemán (Nicaragua) — Juan José Toribio (Spain) - Ahmed Saleh Alosaimi (Saudi Arabia) — Abdulrahman A. Al-Tuwaijri (Saudi Arabia) - Mostafa Askari-Rankouhi (Canada) — Thomas A. Bernes (Canada) - Christopher Austin (United Kingdom) — Gus O’Donnell (United Kingdom) - Taye Berrihun Belay (Ethiopia) — Dinah Z. Guti (Zimbabwe) - Olver Luis Bernal (Colombia) — Alexandre Kafka (Brazil) - Nicolas R. F. Blancher (France) — Marc-Antoine Autheman (France) - Jean-Claude Milleron (France) — (multiple entries as Temporary Alternate served) - Jitendra G. Borpujari (India) — Abdulrahman A. Al-Tuwaijri (Saudi Arabia) - Peter I. Botoucharov (Bulgaria) — J. de Beaufort Wijnholds (Netherlands) - Olivier Bourges (France) — Jean-Claude Milleron (France) - Martha Brettschneider (United States) — Karin Lissakers (United States) - Tabeila Brizuela (Venezuela) — Juan José Toribio (Spain) - Martin Arnulf Brooke (United Kingdom) — Gus O’Donnell (United Kingdom) - Sarah Kate Brownlee (United Kingdom) — Gus O’Donnell (United Kingdom) - Michele Shannon Budington (United States) — Karin Lissakers (United States) - Erik Martin Carlens (Sweden) — Eva Srejber (Sweden) - Kai Aaen Hansen (Denmark) — Kai Aaen Hansen (Denmark) (listed as Temporary Alternate) - Jeffrey Allen Chelsky (Canada) — Thomas A. Bernes (Canada) - Denia Nery Chen Pineda (Panama) — Alexandre Kafka (Brazil) - In-Kang Cho (Korea) — Gregory F. Taylor (Australia) - Melinda Ann Cilento (Australia) — Ewen L. Waterman (Australia) - Gregory F. Taylor (Australia) — Gregory F. Taylor (Australia) (multiple listings) - Henry William Cocker (Tonga) — ZAMANI Abdul Ghani (Malaysia) - Ana Lucia Coronel (Ecuador) — Alexandre Kafka (Brazil) - Jose Antonio Costa (Argentina) — A. Guillermo Zoccali (Argentina) - Daniel A.A. Daco (Belgium) — Willy Kiekens (Belgium) - Christoph Karl Ernst Duenwald (Germany) — Thomas A. Bernes (Canada) - Lodewyk J. F. Erasmus (South Africa) — Dinah Z. Guti (Zimbabwe) - Julio C. Estrella (Dominican Republic) — Alexandre Kafka (Brazil) - Samia S. Farid (Egypt) — A. Shakour Shaalan (Egypt) - Laurent Fontaine (France) — Marc-Antoine Autheman (France) - Pierre-Michel Fremann (France) — Marc-Antoine Autheman (France) - Daiho Fujii (Japan) — Yukio Yoshimura (Japan) - Shunichi Fukushima (Japan) — Yukio Yoshimura (Japan) - Jean-Daniel Gerber (Switzerland) — Daniel Kaeser (Switzerland) - Danute Giga (Latvia) — Eva Srejber (Sweden) - Alessandro Giustiniani (Italy) — Enzo R. Grilli (Italy) - Norbert Goffinet (Luxembourg) — Willy Kiekens (Belgium) - Celia M. Gonzalez (Philippines) — Ewen L. Waterman (Australia) - Werner Gruber (Switzerland) — Daniel Kaeser (Switzerland) - Andreas Guennewich (Germany) — Bernd Esdar (Germany) - Nikolay Kirov Gueorguiev (Bulgaria) — J. de Beaufort Wijnholds (Netherlands) - Harry Hagan (United Kingdom) — Gus O’Donnell (United Kingdom) - Mohamed Ali Hammoudi (Algeria) — Abbas Mirakhor (Iran, Islamic Republic of) - Robert Josef Heinbuecher (Germany) — Bernd Esdar (Germany) - Kerstin M. Heinonen (Finland) — Eva Srejber (Sweden) - Oscar A. Hendrick Fong (Peru) — A. Guillermo Zoccali (Argentina) - Oussama A. Himani (Lebanon) — Abdulrahman A. Al-Tuwaijri (Saudi Arabia) - Johanna Kim Honeyfield (New Zealand) — Ewen L. Waterman (Australia) - HUANG Xinghai (China) — ZHANG Zhixiang (China) - Garbis M. Iradian (Canada) — A. Shakour Shaalan (Egypt) - Abdel Rehman Ismael (Mauritius) — Koffi Yao (Côte d’Ivoire) - Ourkali Issaev (Kyrgyz Republic) — Daniel Kaeser (Switzerland) - Narendra Jadhav (India) — M.R. Sivaraman (India) - Hossein Javaheri (Iran, Islamic Republic of) — Abbas Mirakhor (Iran, Islamic Republic of) - Hervé Joly (France) — Jean-Claude Milleron (France) - Jiri Jonas (Czech Republic) — Willy Kiekens (Belgium) - J. Mills Jones (Liberia) — Dinah Z. Guti (Zimbabwe) - Eric Jourcin (France) — Marc-Antoine Autheman (France) - Ramalinga Kannan (India) — M.R. Sivaraman (India) - Katrin Kask (Estonia) — Eva Srejber (Sweden) - Heinz Kaufmann (Switzerland) — Daniel Kaeser (Switzerland) - Michael Stuart Kell (United Kingdom) — Gus O’Donnell (United Kingdom) - Subodh Kumar Keshava (India) — M.R. Sivaraman (India) - Brenda Killen (United Kingdom) — Gus O’Donnell (United Kingdom) - Bernard Konan (Côte d’Ivoire) — Koffi Yao (Côte d’Ivoire) - Ekaterina Kouprianova (Russia) — Aleksei V. Mozhin (Russia) - Kwassivi Kpetigo (Togo) — Koffi Yao (Côte d’Ivoire) - Tuseno-Minu Kudiwu (Congo, Dem. Rep. of) — Koffi Yao (Côte d’Ivoire) - Kitty Lai (China) — ZHANG Zhixiang (China) - Jurgen Pieter Leijdekker (Netherlands) — J. de Beaufort Wijnholds (Netherlands) - Azriel Levy (Israel) — J. de Beaufort Wijnholds (Netherlands) - James M. Lister (United States) — Karin Lissakers (United States) - David G. Loevinger (United States) — Karin Lissakers (United States) - Benoit Loutrel (France) — Marc-Antoine Autheman (France) - LU Ang (China) — ZHANG Zhixiang (China) - Cascone Angelo Lucenti (Venezuela) — Juan José Toribio (Spain) - Andrei Lushin (Russia) — Aleksei V. Mozhin (Russia) - Boris M. Lvin (Russia) — Aleksei V. Mozhin (Russia) - Mohd. Zubir bin Maatan (Malaysia) — ZAMANI Abdul Ghani (Malaysia) - John Mafararikwa (Zimbabwe) — Dinah Z. Guti (Zimbabwe) - Mohammad-Hadi Mahdavian (Iran, Islamic Republic of) — Abbas Mirakhor (Iran, Islamic Republic of) - Scott Daniel Melese-d'Hospital (United States) — Karin Lissakers (United States) - Melhem F. Melhem (Lebanon) — Abdulrahman A. Al-Tuwaijri (Saudi Arabia) - Francesca Mercusa (Italy) — Enzo R. Grilli (Italy) - Daniel Merino (Argentina) — A. Guillermo Zoccali (Argentina) - Wolfgang Merz (Germany) — Bernd Esdar (Germany) - Iljae Moon (Korea) — Ewen L. Waterman (Australia) - Helio Mori (Brazil) — Alexandre Kafka (Brazil) - James A. K. Munthali (Malawi) — Dinah Z. Guti (Zimbabwe) - Simon N’guiamba (Cameroon) — Koffi Yao (Côte d’Ivoire) - Melih Nemli (Turkey) — Willy Kiekens (Belgium) - Mikhail Nikitenko (Belarus) — Willy Kiekens (Belgium) - Jean-Christian Obame (Gabon) — Koffi Yao (Côte d’Ivoire) - Ricardo Ochoa (Mexico) — Juan José Toribio (Spain) - Hiroshi Ogushi (Japan) — Yukio Yoshimura (Japan) - Ovidio Otazú (Paraguay) — A. Guillermo Zoccali (Argentina) - Lev Valentinovich Palei (Russia) — Aleksei V. Mozhin (Russia) - Axel R. Palmason (Iceland) — Eva Srejber (Sweden) - Hélène Paris (France) — Marc-Antoine Autheman (France) - José Luis Pascual Pascual (Spain) — Juan José Toribio (Spain) - Yasmin Patel (Mozambique) — Dinah Z. Guti (Zimbabwe) - Manh Hung Phan (Vietnam) — ZAMANI Abdul Ghani (Malaysia) - Laura Pinzani (Italy) — Enzo R. Grilli (Italy) - Tomislav Presecan (Croatia) — J. de Beaufort Wijnholds (Netherlands) - QI Jianming (China) — ZHANG Zhixiang (China) - Eugen T. Radulescu (Romania) — J. de Beaufort Wijnholds (Netherlands) - Ganga P. Ramdas (United States) — Alexandre Kafka (Brazil) - Borut Repansek (Slovenia) — Willy Kiekens (Belgium) - Vladimir Rigász (Slovak Republic) — Willy Kiekens (Belgium) - Eddy Rodríguez (Costa Rica) — Juan José Toribio (Spain) - James Roaf (United Kingdom) — Gus O’Donnell (United Kingdom) - Sadok Rouai (Tunisia) — Abbas Mirakhor (Iran, Islamic Republic of) - Daniel Saha (Cameroon) — Koffi Yao (Côte d’Ivoire) - Joao Santos (Portugal) — Enzo R. Grilli (Italy) - Felix Jakob Dominik Schaad (Switzerland) — Roberto F. Cippa (Switzerland) - Oliver Schmalzriedt (Germany) — Bernd Esdar (Germany) - Todd Turner Schneider (United States) — Karin Lissakers (United States) - Ann W. Scoffier (France) — Marc-Antoine Autheman (France) - Ommar Sein (Myanmar) — ZAMANI Abdul Ghani (Malaysia) - Sigurd Simonsen (Norway) — Eva Srejber (Sweden) - Raju Jan Singh (Switzerland) — Roberto F. Cippa (Switzerland) - Mark Sobel (United States) — Karin Lissakers (United States) - SONG Jianqi (China) — ZHANG Zhixiang (China) - David L. Stanton (United Kingdom) — Gus O’Donnell (United Kingdom) - Yoshiyuki Tahara (Japan) — Yukio Yoshimura (Japan) - Ulugbek Y. Tilyayev (Uzbekistan) — Daniel Kaeser (Switzerland) - Vishwapati Trivedi (India) — M.R. Sivaraman (India) - Therese Turner-Huggins (The Bahamas) — Thomas A. Bernes (Canada) - Laura van Geest (Netherlands) — J. de Beaufort Wijnholds (Netherlands) - Marius Vismantas (Lithuania) — Eva Srejber (Sweden) - WANG Xiaolei (China) — ZHANG Zhixiang (China) - Ratan Prakash Watal (India) — M.R. Sivaraman (India) - Myles Wickstead (United Kingdom) — Gus O’Donnell (United Kingdom) - Paul Winje (Norway) — Kai Aaen Hansen (Denmark) - Abdul-Gafoor Yakub (Seychelles) — Ewen L. Waterman (Australia) - Matthew Yiu (Hong Kong) — Gus O’Donnell (United Kingdom) - Szilvia Zádor (Hungary) — Willy Kiekens (Belgium) - Igor Zakharchenkov (Russia) — Aleksei V. Mozhin (Russia) - Edgar Zamalloa (Peru) — A. Guillermo Zoccali (Argentina) - ZHANG Fengming (China) — ZHANG Zhixiang (China) - ZHENG Hong (China) — ZHANG Zhixiang (China) - Zubir bin Abdullah (Singapore) — ZAMANI Abdul Ghani (Malaysia) ### Authority and Scope of the Audit; Audit Opinion - Audit mandate and scope: - Conducted in accordance with Section 20(b) of the By-Laws of the International Monetary Fund. - Audited financial statements covering: - General Department for the year ended April 30, 1998, - SDR Department for the year ended April 30, 1998, - Accounts Administered by the International Monetary Fund for the year ended April 30, 1998, consisting of Enhanced Structural Adjustment Facility Trust; Enhanced Structural Adjustment Facility Administered Accounts; ESAF-HIPC Trust including the Umbrella Account for HIPC Operations; Administered Accounts Established at the Request of Members; Trust Fund; Supplementary Financing Facility Subsidy Account; Retired Staff Benefits Investment Account. - Audit procedures: in accordance with generally accepted auditing standards; reviews of accounting and internal control systems, tests of accounting records, evaluation of outside accounting firm and Office of Internal Audit and Inspection work. - External Audit Committee opinion: - "In our opinion, the financial statements of the General Department, the SDR Department, and the Accounts Administered by the International Monetary Fund have been prepared in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding year and give a true and fair view of the respective financial positions and the allocations and holdings of SDRs as at April 30, 1998, and of the financial results of operations and transactions during the period then ended." - External Audit Committee signatories and report date: - /s/ Amaffe Roger Ako, Chairman (Côte d’Ivoire) - /s/ José Nicolás Agudin (Argentina) - /s/ Stephen Park (United Kingdom) - Report dated: Washington, D.C., June 18, 1998 ### General Department — Key Financials (as at April 30, 1998 and 1997) (In thousands of SDRs) - Assets — General Resources Account: - Currencies and securities: 1998 — 144,638,372; 1997 — 143,698,359 - SDR holdings: 1998 — 764,424; 1997 — 1,494,149 - Gold holdings: 1998 — 3,624,797; 1997 — 3,624,797 - Charges, interest, and other receivables: 1998 — 1,586,322; 1997 — 1,321,781 - Other assets: 1998 — 263,920; 1997 — 227,754 - Total General Resources Account: 1998 — 150,877,835; 1997 — 150,366,840 - Assets — Special Disbursement Account: - Structural Adjustment Facility loans: 1998 — 921,793; 1997 — 1,219,681 - Interest receivable: 1998 — 6,454; 1997 — 6,196 - Total Special Disbursement Account: 1998 — 928,247; 1997 — 1,225,877 - Total Assets: - 1998 — 151,806,082; 1997 — 151,592,717 - Quotas, Reserves, Liabilities, and Resources — General Resources Account: - Quotas: 1998 — 145,321,050; 1997 — 145,318,800 - Reserves: 1998 — 2,133,515; 1997 — 1,969,667 - Special Contingent Accounts: 1998 — 1,883,888; 1997 — 1,785,404 - Remuneration payable: 1998 — 433,730; 1997 — 273,495 - Other liabilities: 1998 — 188,016; 1997 — 144,909 - Deferred income: 1998 — 917,636; 1997 — 874,565 - Total General Resources Account: 1998 — 150,877,835; 1997 — 150,366,840 - Total Quotas, Reserves, Liabilities, and Resources: - 1998 — 151,806,082; 1997 — 151,592,717 ### General Department — Income and Expense Highlights (Years Ended April 30, 1998 and 1997) (In thousands of SDRs) - General Resources Account — Operational Income: - Periodic charges: 1998 — 1,852,807; 1997 — 1,525,109 - Interest on SDR holdings: 1998 — 37,426; 1997 — 57,593 - Other charges and income: 1998 — 99,650; 1997 — 38,880 - Burden-sharing contributions, net of refunds: - Additional charges: 1998 — 73,961; 1997 — 81,812 - Reduction of remuneration: 1998 — 72,928; 1997 — 116,960 - Deferred income, net of settlements: 1998 — (43,071); 1997 — (39,874) - Total Operational Income: 1998 — 2,093,701; 1997 — 1,780,480 - Operational Expenses: - Remuneration: 1998 — 1,462,905; 1997 — 1,217,948 - Allocation to the Special Contingent Accounts: 1998 — 98,483; 1997 — 151,944 - Total Operational Expenses: 1998 — 1,561,388; 1997 — 1,369,892 - Net Operational Income: - 1998 — 532,313; 1997 — 410,588 - Administrative Expenses: - 1998 — 368,465; 1997 — 316,794 - Net Income of the General Resources Account: - 1998 — 163,848; 1997 — 93,794 - Special Disbursement Account: - Interest and special charges: 1998 — 4,531; 1997 — 6,079 - Administrative expenses: 1998 — —; 1997 — 30,700 - Net Income (Loss) of the Special Disbursement Account: 1998 — 4,531; 1997 — (24,621) ### Changes in Reserves and Resources (Years Ended April 30, 1998 and 1997) (In thousands of SDRs) - Reserves — General Resources Account: - Special Reserve: - Balance, beginning of the year: 1998 — 1,604,087; 1997 — 1,510,293 - Net income transferred to the Special Reserve: 1998 — 98,483; 1997 — 93,794 - Balance, end of the year: 1998 — 1,702,570; 1997 — 1,604,087 - General Reserve: - Balance, beginning of the year: 1998 — 365,580; 1997 — 365,580 - Net income transferred to the General Reserve: 1998 — 65,365; 1997 — — - Balance, end of the year: 1998 — 430,945; 1997 — 365,580 - Total Reserves: 1998 — 2,133,515; 1997 — 1,969,667 - Resources — Special Disbursement Account: - Balance, beginning of the year: 1998 — 1,221,497; 1997 — 1,547,179 - Transfers from the Trust Fund: 1998 — 660; 1997 — 4,860 - Net transfers to the ESAF Trust: 1998 — (242,592); 1997 — (306,100) - Transfers to the ESAF-HIPC Trust: 1998 — (60,989); 1997 — — - Aggregate after transfers: 1998 — 918,576; 1997 — 1,246,118 - Net income (loss): 1998 — 4,531; 1997 — (24,621) - Total Resources of the Special Disbursement Account: 1998 — 923,107; 1997 — 1,221,497 ### Significant Accounting Practices and Units of Account - Unit of account: SDR. - SDR valuation basket (amounts): - U.S. dollar 0.582 - Deutsche mark 0.446 - Japanese yen 27.2 - French franc 0.813 - Pound sterling 0.105 - Valuation of currencies: based on representative exchange rates determined for each currency; revaluation establishes receivables or payables. - Income recognition: accrual basis; income from charges overdue six months or more deferred unless member current in settling charges. - Capital assets: capitalized at cost and depreciated straight-line; IMF capitalizes assets with cost in excess of $100,000. ### Quotas, IMF Credit, and Rate/Charge Structure — Key Figures and Movements - Members’ quotas: - April 30, 1996: 145,319 (in millions of SDRs) - April 30, 1997: 145,319 - April 30, 1998: 145,321 - Members’ outstanding use of IMF credit in the GRA: - April 30, 1996: 36,268 - April 30, 1997: 34,539 - April 30, 1998: 49,701 - Members’ outstanding reserve tranche positions in the GRA: - April 30, 1996: (37,352) - April 30, 1997: (36,103) - April 30, 1998: (50,324) - Currencies and securities (total): - April 30, 1996: 144,181 - April 30, 1997: 143,698 - April 30, 1998: 144,638 - Valuation receivables and payables from last revaluation (April 30, 1998): - Receivable: SDR 11,249.8 million - Payable: SDR 1,139.2 million - At April 30, 1997: receivable SDR 7,970.0 million; payable SDR 4,055.9 million - At June 11, 1998: receivable SDR 9,471.0 million; payable SDR 1,155.7 million - Rate structure and special charges: - Rate of charge set as a proportion of the SDR interest rate; surcharge on SRF use progressing from 300 basis points above rate of charge up to 500 basis points. - Special charges on overdue holdings and overdue charges; service charge on each purchase except reserve tranche purchases; stand-by fee charged on Stand-By and Extended Arrangements. ### IMF Facilities — Outstanding Use by Facility (in millions of SDRs) - Regular facilities: - April 30, 1996: 18,623 - April 30, 1997: 16,537 - April 30, 1998: 24,460 - Extended Fund Facility: - April 30, 1996: 7,435 - April 30, 1997: 9,463 - April 30, 1998: 11,339 - Supplemental Reserve Facility (SRF): - Established December 17, 1997 - April 30, 1998 outstanding: 7,100 - Systemic Transformation Facility: - April 30, 1996: 3,984 - April 30, 1998: 3,869 - Enlarged Access: - April 30, 1996: 4,436 - April 30, 1997: 3,046 - April 30, 1998: 2,089 - Compensatory and Contingency Financing Facility: - April 30, 1996: 1,602 - April 30, 1997: 1,335 - April 30, 1998: 685 - Supplementary Financing Facility: - April 30, 1996: 188 - April 30, 1997: 74 - April 30, 1998: 159 - Total outstanding use of IMF credit in GRA: - April 30, 1996: 36,268 - April 30, 1997: 34,539 - April 30, 1998: 49,701 - Total holdings on which the IMF levied charges: - April 30, 1998: SDR 49,701.2 million - April 30, 1997: SDR 34,539.2 million ### Borrowing Arrangements - General Arrangements to Borrow (GAB): may borrow up to SDR 18.5 billion; extended through December 25, 1998; not activated at April 30, 1998. - New Arrangements to Borrow (NAB): IMF may borrow up to SDR 34 billion; to enter into force when participants adopt totaling no less than SDR 28.9 billion. - Outstanding drawings and commitments under GAB and NAB limited to combined total of SDR 34 billion. ### Overdue Obligations and Cooperative Strategy (as at April 30, 1998) - Six members were six months or more overdue at April 30, 1998 and 1997; four of these were overdue to the General Department. The Federal Republic of Yugoslavia also six months or more overdue. - Credit extended to these members and Yugoslavia through GRA and SDA, including SAF loans: - April 30, 1998: SDR 1,182.0 million - April 30, 1997: SDR 1,215.0 million - Repurchases and SAF loan repayments and charges and SAF interest six months or more overdue: - Total overdue (1998): 1,156 ; (1997): 1,165 - Overdue for six months or more (1998): 1,147 ; (1997): 1,147 - Overdue for three years or more (1998): 1,064 ; (1997): 1,043 - Type and duration of arrears as of April 30, 1998 (in millions of SDRs; Longest Obligation dates): - Congo, Democratic Republic of: Repurchases and SAF Loans 275.0; Charges and SAF Interest 53.5; Total 328.5; Longest Obligation May 1991 - Liberia: Repurchases and SAF Loans 201.5; Charges and SAF Interest 206.0; Total 407.5; Longest Obligation April 1985 - Somalia: Repurchases and SAF Loans 105.5; Charges and SAF Interest 74.8; Total 180.3; Longest Obligation July 1987 - Sudan: Repurchases and SAF Loans 517.7; Charges and SAF Interest 561.3; Total 1,079.0; Longest Obligation July 1985 - Yugoslavia, Federal Republic of (Serbia/Montenegro): Repurchases and SAF Loans 56.1; Charges and SAF Interest 15.0; Total 71.1; Longest Obligation September 1992 - Total: Repurchases and SAF Loans 1,155.8; Charges and SAF Interest 910.6; Total 2,066.4 - Strengthened cooperative strategy components: 1. Preventive measures 2. Remedial and deterrent measures 3. Intensified collaboration and the rights approach (including IMF-monitored programs and rights accumulation programs) - Rights accumulation programs: - Permit a member with protracted arrears to earn rights toward future financing through implementation of a comprehensive economic program; rights encashed under successor arrangement after clearance of arrears and meeting successor arrangement requirements. ### Deferred Income and Special Contingent Accounts (SCAs) - Policy: charges due by members six months or more overdue excluded from current income and recorded as deferred income unless member current in payment of charges. - Charges due and accrued by members six months or more overdue and deferred: - April 30, 1998: SDR 917.6 million - April 30, 1997: SDR 874.6 million - Since May 1, 1986 debtor and creditor members share equally financial consequences of overdue obligations: amount equal to deferred charges (excluding special charges) is generated and included in IMF income each quarter by adjustment of rate of charge and rate of remuneration. - Precautionary balances in Special Contingent Accounts: - Total held in SCA-1 and SCA-2 at April 30, 1998: SDR 1,883.9 million - SCA-1 at April 30, 1998: SDR 883.9 million (April 30, 1997: SDR 785.4 million) - SCA-2 at April 30, 1998: SDR 1,000.0 million (April 30, 1997: SDR 1,000.0 million) - Outstanding credit in the GRA following completion and encashment of rights accumulation programs: - April 30, 1998: SDR 514.1 million - April 30, 1997: SDR 621.3 million - Adjustments to charges and remuneration (selected totals and cumulative figures): - Cumulative charges, net of settlements, deferred since May 1, 1986 and resulting in adjustments: SDR 729.2 million at April 30, 1998 (SDR 680.8 million at April 30, 1997) - Cumulative refunds for the same period: SDR 961.9 million (SDR 960.7 million at April 30, 1997) ### Other Assets (Capital Assets) — Composition (In millions of SDRs) - Land and buildings: 274.7 (1998); 246.3 (1997) - Equipment: 29.6 (1998); 24.1 (1997) - Total capital assets: 304.3 (1998); 270.4 (1997) - Less accumulated depreciation: 88.0 (1998); 76.4 (1997) - Net capital assets: 216.3 (1998); 194.0 (1997) ### Administrative Expenses (Years Ended April 30, 1998 and 1997) (In millions of SDRs) - General Resources Account: - Personnel: 243.5 (1998); 246.9 (1997) - Travel: 54.6 (1998); 46.6 (1997) - Other: 74.8 (1998); 58.2 (1997) - Less reimbursements for administration of: - The SDR Department: (4.4) (1998); (4.2) (1997) - The ESAF Trust and the Special Disbursement Account: — (1998); (30.7) (1997) - Total administrative expenses, net of reimbursements: 368.5 (1998); 316.8 (1997) - Board decision affecting reimbursements and transfers: - Board decided to forgo reimbursement for financial years 1998 and 1999 and to transfer the amount that would otherwise have been reimbursed to the GRA. - Amount transferred for financial year 1998: SDR 40.7 million (from the ESAF Trust Reserve Account, through the Special Disbursement Account, to the ESAF-HIPC Trust). This amount is included under Transfers to ESAF-HIPC Trust. ### Staff Retirement Plans and Postretirement Benefits — Key Figures and Policies - Plans: - Funded defined-benefit Staff Retirement Plan and funded defined-benefit Supplemental Retirement Benefits Plan covering nearly all staff. - Funding and actuarial basis: - IMF contribution to the Plans during year ended April 30, 1998: SDR 13.7 million (SDR 23.5 million during year ended April 30, 1997). - Present value of benefits payable under the Plans at April 30, 1998: SDR 1,998.3 million. - Assets for actuarial purposes at April 30, 1998: SDR 1,894.5 million (SDR 1,875.4 million and SDR 1,691.7 million, respectively, at April 30, 1997). - Postretirement medical and life insurance benefits: - Cumulative cost estimated at SDR 136.0 million at April 30, 1998 (SDR 131.9 million at April 30, 1997). - Retired Staff Benefits Investment Account balance at April 30, 1998: SDR130.3 million (SDR 108.7 million at April 30, 1997). ### Schedule 1 — General Resources Account: Key Totals and Selected Member Data (as at April 30, 1998) (In thousands of SDRs) - Member Quotas Total: 145,321,050 - Fund’s holdings of currencies: 144,638,372 - Use of Fund Resources — GRA: 50,324,030 - Use of Fund Resources — ESAF Trust: 49,701,200 - Percent of quota: 100.00 - SDA: 921,793 - For information — ESAF Trust total: 5,269,650 - Total Use of Fund Resources (A)+(B)+(C)=(D): 55,982,431 - Selected member examples (Fund’s holdings / Use of Fund Resources — GRA / Percent of quota / Reserve tranche position / SDA / ESAF Trust / Total): - Afghanistan, Islamic State of: 120,400 115,488 95.9 4,928 - Albania: 35,300 44,125 125.0 5 8,825 0.02 31,060 39,885 - Algeria: 914,400 2,505,273 274.0 7 1,590,875 3.20 1,590,875 - Argentina: 1,537,100 5,694,740 370.5 4,157,615 8.37 4,157,615 - China: 3,385,200 1,329,508 39.3 2,055,694 - India: 3,055,500 3,340,186 109.3 212,793 497,375 1.00 497,375 - Japan: 8,241,500 1,163,787 14.1 7,077,818 - Korea: 799,600 11,999,570 1,500.7 33 11,200,000 22.53 11,200,000 - Mexico: 1,753,300 8,488,385 484.1 173 6,735,240 13.55 6,735,240 - Russian Federation: 4,313,100 14,528,375 336.8 926 10,216,058 20.56 10,216,058 - United States: 26,526,800 12,994,063 49.0 13,528,378 ### Schedule 2 — Repurchases and Repayments of Loans (as at April 30, 1998) (In thousands of SDRs) - Totals: - Total repurchases and repayments: General Resources Account: 49,701,200; Special Disbursement Account: 921,793 - Financial year breakdown (General Resources Account / Special Disbursement Account): - Overdue: 1,030,116 / 125,733 - 1999: 9,446,675 / 261,658 - 2000: 13,804,740 / 175,076 - 2001: 6,820,322 / 79,024 - 2002: 7,302,323 / 90,679 - 2003: 5,544,501 / 61,864 - 2004: 1,937,681 / 50,823 - 2005: 1,519,936 / 40,270 - 2006: 1,169,964 / 36,666 - 2007: 807,110 / — - 2008: 317,832 / — ### Schedule 3 — Status of Arrangements (as at April 30, 1998) (In thousands of SDRs) - Total Stand-By Arrangements: 28,323,230; Undrawn Balance: 12,368,256 - Selected Stand-By arrangements examples: - Indonesia: 7,338,240; 5,136,768 - Korea: 15,500,0001; 4,300,000 - Thailand: 2,900,000; 900,000 - Total Extended Arrangements: 12,335,700; Undrawn Balance: 6,828,466 - Selected Extended arrangements examples: - Argentina: 2,080,000; 2,080,000 - Russian Federation: 6,901,000; 3,064,736 - Total General Resources Account: 40,658,930; Undrawn Balance: 19,196,722 - Note: Includes SRF availability (footnote): SDR 9.95 billion available until December 17, 1998 under the Supplemental Reserve Facility. ### SDR Department — Allocations, Holdings, Receipts and Uses (In thousands of SDRs) - Net cumulative allocations of SDRs: 21,433,330 (1998 and 1997) - Total Allocations: 21,511,996 (1998); 21,497,941 (1997) - Total holdings of participants: 20,361,807 (1998); 18,696,850 (1997) - General Resources Account holdings: 764,424 (1998); 1,494,149 (1997) - Holdings of SDRs by prescribed holders: 385,765 (1998); 1,306,942 (1997) - Total Holdings: 21,511,996 (1998); 21,497,941 (1997) - Total receipts (1998): 20,255,796 (Participants 14,792,666; GRA 4,843,781; Prescribed Holders 619,349) - Total uses (1998): 20,241,741 (Participants 13,127,709; GRA 5,573,506; Prescribed Holders 1,540,526) - Charges due and overdue to the SDR Department: - Charges overdue to the SDR Department: SDR 78.7 million (1998); SDR 64.6 million (1997) - Charges due and overdue for six months or more: 71.3 (1998); 58.1 (1997) - Charges overdue for three years or more: 43.8 (1998); 35.1 (1997) - SDR interest rate determination: - Rate determined by reference to a combined market interest rate (weighted average yields/rates on short-term instruments in France, Germany, Japan, the United Kingdom, and the United States). Combined market rate calculated each Friday; SDR interest rate enters into effect on the following Monday. ### Enhanced Structural Adjustment Facility (ESAF) Trust — Purpose and Financial Highlights (In thousands of SDRs) - Purpose: provide concessional loans to qualifying low-income developing country members. - Loans receivable: 5,269,650 (1998); 4,590,574 (1997) - Loans outstanding at April 30, 1998: SDR 5,269.6 million - Reserve Account balance (end of year): 2,089,814 - Subsidy Account balance (end of year): 1,623,882 - Combined Trust balance, end of year: 3,713,696 (1998); 3,332,746 (1997) - Combined balance sheet totals: - Total Assets (Combined): 9,433,112 (1998); 8,286,621 (1997) - Investments: 4,084,062 (1998); 3,648,538 (1997) - Borrowing: 5,613,451 (1998); 4,900,730 (1997) - Combined Income Statement for Year Ended April 30, 1998: - Income: 181,368 (1998); 151,973 (1997) - Expense: 186,703 (1998); 158,684 (1997) - Net Income (Loss): (5,335) (1998); (6,711) (1997) - Loan Account: (158,817) net loss - Reserve Account: 80,133 net income - Subsidy Account: 73,349 net income ### ESAF Trust — Contributions, Borrowing, and Commitments - Cumulative contributions received at April 30, 1998: SDR 1,866.7 million (1997: SDR 1,723.0 million) - Total direct contributions to the Subsidy Account: 1,352,757 (in thousands of SDRs) - Transfers from Special Disbursement Account: 400,000 - Total contributions received and transfers from SDA: 1,866,708 - Borrowing agreements summary (as at April 30, 1998): - Loan Account: Amount Agreed 9,288,529 / Amount Undrawn 3,379,332 - Subsidy Account: Amount Agreed 243,481 / Amount Undrawn 6,665 - Undrawn balances under loan arrangements: SDR 2,164.5 million (33 arrangements) at April 30, 1998 - Transfers through the Special Disbursement Account: - Executive Board decided to forgo reimbursement and transfer SDR 40.7 million from the Reserve Account, through the SDA, to the ESAF-HIPC Trust. - Up to SDR 250 million may be transferred from the Reserve Account through the SDA to the ESAF-HIPC Trust; at April 30, 1998, SDR 20.3 million had been transferred for this purpose. ### ESAF-HIPC Trust — Purpose, Resources, and Activity (as at April 30, 1998) - Purpose: provide grants and loans to eligible members under the HIPC Initiative and interim ESAF subsidy operations. - Resources and structure: - Trust Account and Umbrella Account for HIPC Operations; resources separate from other IMF assets. - Contributions and transfers: - At April 30, 1998, four contributions amounting to SDR 34.2 million had been received (Finland SDR 2.3; Nigeria SDR 1.1; Japan SDR 27.2; Netherlands SDR 3.6 earmarked for interim ESAF subsidy operations). - Total transfers from ESAF Trust Reserve Account through the SDA: SDR 61.0 million (of which SDR 20.3 million transferred to the Trust for grants/loans; Executive Board decision to transfer SDR 40.7 million included). - Deposits at April 30, 1998: - Two deposits amounting to SDR 15.6 million: SDR 14.6 million (rate 2 percent; repayable one installment five years after deposit date); SDR 1 million (rate 1/2 of 1 percent; repayable one installment ten years after deposit date). - Disbursements: - At April 30, 1998, a single disbursement of SDR 51.5 million had been made to the Umbrella Account for the benefit of Uganda. - At April 30, 1998, no disbursements had been made from a subaccount within the Umbrella Account. ### Administered Accounts Established at Request of Members — Selected Accounts and Balances (as at April 30, 1998) - Administered Account Japan (U.S. dollars): - Investments: 1998 — 96,700; 1997 — 91,500 - Total Assets / Total Resources: 1998 — 96,783; 1997 — 91,561 - Income earned on investments: 1998 — 5,222; 1997 — 3,964 - Administered Account for Selected Fund Activities—Japan (U.S. dollars): - Investments: 1998 — 20,634; 1997 — 14,996 - Contributions: 1998 — 18,868; 1997 — 20,950 - Payments to beneficiaries: 1998 — 14,303; 1997 — 18,484 - Balance, end of year: 1998 — 20,634; 1997 — 14,996 - Administered Account—Rwanda (SDRs): - Investments: 1998 — 3,389; 1997 — 3,029 - Contributions: 1998 — 2,961; 1997 — 2,985 - Payments to beneficiaries: 1998 — 2,778; 1997 — 1,023 - Balance, end of year: 1998 — 3,389; 1997 — 3,029 - Framework Administered Account for Technical Assistance Activities: - At April 30, 1998, cumulative contributions received amounted to $7.1 million, of which $4.0 million had been disbursed. ### Trust Fund, Supplementary Financing Facility Subsidy Account, and Retired Staff Benefits Investment Account (Selected Financials) - Trust Fund (post-termination affairs) — selected figures (In thousands of SDRs): - Loans receivable: 1998 — 89,784; 1997 — 90,444 - Deferred income: 1998 — 25,952; 1997 — 25,501 - Total Assets: 1998 — 115,736; 1997 — 115,945 - Total overdue (1998): 89.8 ; (1997): 90.4 (in millions of SDRs) - Supplementary Financing Facility Subsidy Account: - Deposits: 1998 — 2,381; 1997 — 2,286 - Interest receivable: 1998 — 25; 1997 — 22 - Total Assets: 1998 — 2,406; 1997 — 2,308 - Retired Staff Benefits Investment Account (RSBIA) — selected figures (In thousands of U.S. dollars): - Total Investments: 1998 — 174,373; 1997 — 147,249 - Total Assets: 1998 — 176,304; 1997 — 148,420 - Contributions received: 1998 — 12,600; 1997 — 12,100 - Income earned on investments: 1998 — 7,189; 1997 — 6,547 - Net gain in current value of investments: 1998 — 11,667; 1997 — 3,891 - Balance, end of year: 1998 — 176,304; 1997 — 144,848 ### Staff Retirement Plan — Key Financial and Actuarial Figures (In thousands of U.S. dollars) - Accumulated Plan Benefits (actuarial present value): - Total actuarial present value of accumulated Plan benefits: 1,925,500 (1998); 1,765,600 (1997) - Assets Available for Benefits: - Investments: 3,075,069 (1998); 2,613,477 (1997) - Total assets: 3,089,909 (1998); 2,628,299 (1997) - Net assets available for benefits: 3,069,752 (1998); 2,624,021 (1997) - Excess of net assets available for benefits over actuarial present value of accumulated Plan benefits: 1,144,252 (1998); 858,421 (1997) - Changes in Net Assets Available for Benefits (selected items): - Net realized/unrealized gain on investments: 404,944 (1998); 129,507 (1997) - Interest and dividends: 87,296 (1998); 84,769 (1997) - Total investment income: 492,240 (1998); 214,276 (1997) - Total additions: 513,285 (1998); 264,201 (1997) - Total payments (benefits and investment fees): 67,554 (1998); 65,855 (1997) - Net additions: 445,731 (1998); 198,346 (1997) ### Actuarial Valuation and Funding Policy — Employer Contribution Rates and Assumptions - Employer contribution rates (reported): - For financial year beginning May 1, 1995: 14.25 percent - For year beginning May 1, 1996: 10.56 percent - For year beginning May 1, 1997: 5 percent of pensionable gross remuneration - Presentation: of this 5 percent: 0.05percent represents a current contribution (equal to $0.15 million) and 4.95 percent represents a deferred contribution (equal to $14.7 million) in one presentation; in another presentation 4.95 percent represents a deferred contribution (equal to $0.06 million). - Actuarial assumptions used: - Average rate of return on investments: 8.5 percent a year - Discount rate: 8.5 percent - Average inflation rate: 5 percent a year - Life expectancy based on United Nations mortality tables (1984 for men; 1982 for women) - Valuation of assets using a five-year moving-average method - Valuation results (1997 / 1996 — In millions of U.S. dollars): - Present value of benefits payable: 2,699 / 2,540 - Assets for valuation purposes: 2,580 / 2,310 - Required future funding: 119 / 230 - Present value of prospective contributions from participants (7 percent): 211 / 203 - Present value of future funding required from the Employer: (92) / 27 *Source: _file10pdf — Excerpts from the International Monetary Fund Annual Report 1998 (Appendices VIII and IX; financial statements and notes as at April 30, 1998 and comparative figures for 1997).* ### APPENDIX VIII ### APPENDIX VIII ### Temporary Alternate Executive Directors (1997/98) - The following served as Temporary Alternate Executive Directors to the Executive Directors indicated during 1997/98 (format: Temporary Alternate — Executive Director Served): - Wafa Fahmi Abdelati (Egypt) — A. Shakour Shaalan (Egypt) - Hj. Ibrahim Abdul Rahman (Brunei Darussalam) — ZAMANI Abdul Ghani (Malaysia) - Aidar Abdychev (Kyrgyz Republic) — Daniel Kaeser (Switzerland) - Roberto F. Cippa (Switzerland) — Daniel Kaeser (Switzerland) - Meekal A. Ahmed (Pakistan) — Abbas Mirakhor (Iran, Islamic Republic of) - Patrick A. Akatu (Nigeria) — Dinah Z. Guti (Zimbabwe) - Zhanat Akhmetova (Kazakhstan) — Willy Kiekens (Belgium) - Mario B. Alemán (Nicaragua) — Juan José Toribio (Spain) - Ahmed Saleh Alosaimi (Saudi Arabia) — Abdulrahman A. Al-Tuwaijri (Saudi Arabia) - Mostafa Askari-Rankouhi (Canada) — Thomas A. Bernes (Canada) - Christopher Austin (United Kingdom) — Gus O’Donnell (United Kingdom) - Taye Berrihun Belay (Ethiopia) — Dinah Z. Guti (Zimbabwe) - Olver Luis Bernal (Colombia) — Alexandre Kafka (Brazil) - Nicolas R. F. Blancher (France) — Marc-Antoine Autheman (France) - Jean-Claude Milleron (France) — (multiple entries as Temporary Alternate served) - Jitendra G. Borpujari (India) — Abdulrahman A. Al-Tuwaijri (Saudi Arabia) - Peter I. Botoucharov (Bulgaria) — J. de Beaufort Wijnholds (Netherlands) - Olivier Bourges (France) — Jean-Claude Milleron (France) - Martha Brettschneider (United States) — Karin Lissakers (United States) - Tabeila Brizuela (Venezuela) — Juan José Toribio (Spain) - Martin Arnulf Brooke (United Kingdom) — Gus O’Donnell (United Kingdom) - Sarah Kate Brownlee (United Kingdom) — Gus O’Donnell (United Kingdom) - Michele Shannon Budington (United States) — Karin Lissakers (United States) - Erik Martin Carlens (Sweden) — Eva Srejber (Sweden) - Kai Aaen Hansen (Denmark) — Kai Aaen Hansen (Denmark) (listed as Temporary Alternate) - Jeffrey Allen Chelsky (Canada) — Thomas A. Bernes (Canada) - Denia Nery Chen Pineda (Panama) — Alexandre Kafka (Brazil) - In-Kang Cho (Korea) — Gregory F. Taylor (Australia) - Melinda Ann Cilento (Australia) — Ewen L. Waterman (Australia) - Gregory F. Taylor (Australia) — Gregory F. Taylor (Australia) (multiple listings) - Henry William Cocker (Tonga) — ZAMANI Abdul Ghani (Malaysia) - Ana Lucia Coronel (Ecuador) — Alexandre Kafka (Brazil) - Jose Antonio Costa (Argentina) — A. Guillermo Zoccali (Argentina) - Daniel A.A. Daco (Belgium) — Willy Kiekens (Belgium) - Christoph Karl Ernst Duenwald (Germany) — Thomas A. Bernes (Canada) - Lodewyk J. F. Erasmus (South Africa) — Dinah Z. Guti (Zimbabwe) - Julio C. Estrella (Dominican Republic) — Alexandre Kafka (Brazil) - Samia S. Farid (Egypt) — A. Shakour Shaalan (Egypt) - Laurent Fontaine (France) — Marc-Antoine Autheman (France) - Pierre-Michel Fremann (France) — Marc-Antoine Autheman (France) - Daiho Fujii (Japan) — Yukio Yoshimura (Japan) - Shunichi Fukushima (Japan) — Yukio Yoshimura (Japan) - Jean-Daniel Gerber (Switzerland) — Daniel Kaeser (Switzerland) - Danute Giga (Latvia) — Eva Srejber (Sweden) - Alessandro Giustiniani (Italy) — Enzo R. Grilli (Italy) - Norbert Goffinet (Luxembourg) — Willy Kiekens (Belgium) - Celia M. Gonzalez (Philippines) — Ewen L. Waterman (Australia) - Werner Gruber (Switzerland) — Daniel Kaeser (Switzerland) - Andreas Guennewich (Germany) — Bernd Esdar (Germany) - Nikolay Kirov Gueorguiev (Bulgaria) — J. de Beaufort Wijnholds (Netherlands) - Harry Hagan (United Kingdom) — Gus O’Donnell (United Kingdom) - Mohamed Ali Hammoudi (Algeria) — Abbas Mirakhor (Iran, Islamic Republic of) - Robert Josef Heinbuecher (Germany) — Bernd Esdar (Germany) - Kerstin M. Heinonen (Finland) — Eva Srejber (Sweden) - Oscar A. Hendrick Fong (Peru) — A. Guillermo Zoccali (Argentina) - Oussama A. Himani (Lebanon) — Abdulrahman A. Al-Tuwaijri (Saudi Arabia) - Johanna Kim Honeyfield (New Zealand) — Ewen L. Waterman (Australia) - HUANG Xinghai (China) — ZHANG Zhixiang (China) - Garbis M. Iradian (Canada) — A. Shakour Shaalan (Egypt) - Abdel Rehman Ismael (Mauritius) — Koffi Yao (Côte d’Ivoire) - Ourkali Issaev (Kyrgyz Republic) — Daniel Kaeser (Switzerland) - Narendra Jadhav (India) — M.R. Sivaraman (India) - Hossein Javaheri (Iran, Islamic Republic of) — Abbas Mirakhor (Iran, Islamic Republic of) - Hervé Joly (France) — Jean-Claude Milleron (France) - Jiri Jonas (Czech Republic) — Willy Kiekens (Belgium) - J. Mills Jones (Liberia) — Dinah Z. Guti (Zimbabwe) - Eric Jourcin (France) — Marc-Antoine Autheman (France) - Ramalinga Kannan (India) — M.R. Sivaraman (India) - Katrin Kask (Estonia) — Eva Srejber (Sweden) - Heinz Kaufmann (Switzerland) — Daniel Kaeser (Switzerland) - Michael Stuart Kell (United Kingdom) — Gus O’Donnell (United Kingdom) - Subodh Kumar Keshava (India) — M.R. Sivaraman (India) - Brenda Killen (United Kingdom) — Gus O’Donnell (United Kingdom) - Bernard Konan (Côte d’Ivoire) — Koffi Yao (Côte d’Ivoire) - Ekaterina Kouprianova (Russia) — Aleksei V. Mozhin (Russia) - Kwassivi Kpetigo (Togo) — Koffi Yao (Côte d’Ivoire) - Tuseno-Minu Kudiwu (Congo, Dem. Rep. of) — Koffi Yao (Côte d’Ivoire) - Kitty Lai (China) — ZHANG Zhixiang (China) - Jurgen Pieter Leijdekker (Netherlands) — J. de Beaufort Wijnholds (Netherlands) - Azriel Levy (Israel) — J. de Beaufort Wijnholds (Netherlands) - James M. Lister (United States) — Karin Lissakers (United States) - David G. Loevinger (United States) — Karin Lissakers (United States) - Benoit Loutrel (France) — Marc-Antoine Autheman (France) - LU Ang (China) — ZHANG Zhixiang (China) - Cascone Angelo Lucenti (Venezuela) — Juan José Toribio (Spain) - Andrei Lushin (Russia) — Aleksei V. Mozhin (Russia) - Boris M. Lvin (Russia) — Aleksei V. Mozhin (Russia) - Mohd. Zubir bin Maatan (Malaysia) — ZAMANI Abdul Ghani (Malaysia) - John Mafararikwa (Zimbabwe) — Dinah Z. Guti (Zimbabwe) - Mohammad-Hadi Mahdavian (Iran, Islamic Republic of) — Abbas Mirakhor (Iran, Islamic Republic of) - Scott Daniel Melese-d'Hospital (United States) — Karin Lissakers (United States) - Melhem F. Melhem (Lebanon) — Abdulrahman A. Al-Tuwaijri (Saudi Arabia) - Francesca Mercusa (Italy) — Enzo R. Grilli (Italy) - Daniel Merino (Argentina) — A. Guillermo Zoccali (Argentina) - Wolfgang Merz (Germany) — Bernd Esdar (Germany) - Iljae Moon (Korea) — Ewen L. Waterman (Australia) - Helio Mori (Brazil) — Alexandre Kafka (Brazil) - James A. K. Munthali (Malawi) — Dinah Z. Guti (Zimbabwe) - Simon N’guiamba (Cameroon) — Koffi Yao (Côte d’Ivoire) - Melih Nemli (Turkey) — Willy Kiekens (Belgium) - Mikhail Nikitenko (Belarus) — Willy Kiekens (Belgium) - Jean-Christian Obame (Gabon) — Koffi Yao (Côte d’Ivoire) - Ricardo Ochoa (Mexico) — Juan José Toribio (Spain) - Hiroshi Ogushi (Japan) — Yukio Yoshimura (Japan) - Ovidio Otazú (Paraguay) — A. Guillermo Zoccali (Argentina) - Lev Valentinovich Palei (Russia) — Aleksei V. Mozhin (Russia) - Axel R. Palmason (Iceland) — Eva Srejber (Sweden) - Hélène Paris (France) — Marc-Antoine Autheman (France) - José Luis Pascual Pascual (Spain) — Juan José Toribio (Spain) - Yasmin Patel (Mozambique) — Dinah Z. Guti (Zimbabwe) - Manh Hung Phan (Vietnam) — ZAMANI Abdul Ghani (Malaysia) - Laura Pinzani (Italy) — Enzo R. Grilli (Italy) - Tomislav Presecan (Croatia) — J. de Beaufort Wijnholds (Netherlands) - QI Jianming (China) — ZHANG Zhixiang (China) - Eugen T. Radulescu (Romania) — J. de Beaufort Wijnholds (Netherlands) - Ganga P. Ramdas (United States) — Alexandre Kafka (Brazil) - Borut Repansek (Slovenia) — Willy Kiekens (Belgium) - Vladimir Rigász (Slovak Republic) — Willy Kiekens (Belgium) - Eddy Rodríguez (Costa Rica) — Juan José Toribio (Spain) - James Roaf (United Kingdom) — Gus O’Donnell (United Kingdom) - Sadok Rouai (Tunisia) — Abbas Mirakhor (Iran, Islamic Republic of) - Daniel Saha (Cameroon) — Koffi Yao (Côte d’Ivoire) - Joao Santos (Portugal) — Enzo R. Grilli (Italy) - Felix Jakob Dominik Schaad (Switzerland) — Roberto F. Cippa (Switzerland) - Oliver Schmalzriedt (Germany) — Bernd Esdar (Germany) - Todd Turner Schneider (United States) — Karin Lissakers (United States) - Ann W. Scoffier (France) — Marc-Antoine Autheman (France) - Ommar Sein (Myanmar) — ZAMANI Abdul Ghani (Malaysia) - Sigurd Simonsen (Norway) — Eva Srejber (Sweden) - Raju Jan Singh (Switzerland) — Roberto F. Cippa (Switzerland) - Mark Sobel (United States) — Karin Lissakers (United States) - SONG Jianqi (China) — ZHANG Zhixiang (China) - David L. Stanton (United Kingdom) — Gus O’Donnell (United Kingdom) - Yoshiyuki Tahara (Japan) — Yukio Yoshimura (Japan) - Ulugbek Y. Tilyayev (Uzbekistan) — Daniel Kaeser (Switzerland) - Vishwapati Trivedi (India) — M.R. Sivaraman (India) - Therese Turner-Huggins (The Bahamas) — Thomas A. Bernes (Canada) - Laura van Geest (Netherlands) — J. de Beaufort Wijnholds (Netherlands) - Marius Vismantas (Lithuania) — Eva Srejber (Sweden) - WANG Xiaolei (China) — ZHANG Zhixiang (China) - Ratan Prakash Watal (India) — M.R. Sivaraman (India) - Myles Wickstead (United Kingdom) — Gus O’Donnell (United Kingdom) - Paul Winje (Norway) — Kai Aaen Hansen (Denmark) - Abdul-Gafoor Yakub (Seychelles) — Ewen L. Waterman (Australia) - Matthew Yiu (Hong Kong) — Gus O’Donnell (United Kingdom) - Szilvia Zádor (Hungary) — Willy Kiekens (Belgium) - Igor Zakharchenkov (Russia) — Aleksei V. Mozhin (Russia) - Edgar Zamalloa (Peru) — A. Guillermo Zoccali (Argentina) - ZHANG Fengming (China) — ZHANG Zhixiang (China) - ZHENG Hong (China) — ZHANG Zhixiang (China) - Zubir bin Abdullah (Singapore) — ZAMANI Abdul Ghani (Malaysia) ### Authority and Scope of the Audit - Audit mandate: - Conducted in accordance with Section 20(b) of the By-Laws of the International Monetary Fund. - Audited the financial statements covering: - General Department for the year ended April 30, 1998, - SDR Department for the year ended April 30, 1998, and - Accounts Administered by the International Monetary Fund for the year ended April 30, 1998, which consist of: 1. Enhanced Structural Adjustment Facility Trust, 2. Enhanced Structural Adjustment Facility Administered Accounts: Austria, Belgium, Botswana, Chile, Greece, Indonesia, Islamic Republic of Iran, Portugal, Saudi Fund for Development Special Account, 3. ESAF-HIPC Trust, including the Umbrella Account for HIPC Operations, 4. Administered Accounts Established at the Request of Members: Administered Account Japan, Administered Account for Selected Fund Activities—Japan, Framework Administered Account for Technical Assistance Activities, Administered Account for Rwanda, 5. Trust Fund, 6. Supplementary Financing Facility Subsidy Account, 7. Retired Staff Benefits Investment Account. - Audit procedures: - Conducted in accordance with generally accepted auditing standards. - Included reviews of accounting and internal control systems and tests of the accounting records. - Evaluated work of outside accounting firm and the Office of Internal Audit and Inspection of the IMF and used other audit procedures as necessary. ### Audit Opinion - Opinion of the External Audit Committee: - "In our opinion, the financial statements of the General Department, the SDR Department, and the Accounts Administered by the International Monetary Fund have been prepared in accordance with generally accepted accounting principles applied on a basis consistent with that of the preceding year and give a true and fair view of the respective financial positions and the allocations and holdings of SDRs as at April 30, 1998, and of the financial results of operations and transactions during the period then ended." - External Audit Committee signatories: - /s/ Amaffe Roger Ako, Chairman (Côte d’Ivoire) - /s/ José Nicolás Agudin (Argentina) - /s/ Stephen Park (United Kingdom) - Report dated: Washington, D.C., June 18, 1998 ### General Department — Balance Sheets (as at April 30, 1998 and 1997) (In thousands of SDRs) - Assets — General Resources Account: - Currencies and securities (Notes 2 and 5): 1998 — 144,638,372; 1997 — 143,698,359 - SDR holdings (Note 3): 1998 — 764,424; 1997 — 1,494,149 - Gold holdings (Note 4): 1998 — 3,624,797; 1997 — 3,624,797 - Charges, interest, and other receivables (Notes 2 and 5): 1998 — 1,586,322; 1997 — 1,321,781 - Other assets (Note 6): 1998 — 263,920; 1997 — 227,754 - Total General Resources Account: 1998 — 150,877,835; 1997 — 150,366,840 - Assets — Special Disbursement Account: - Structural Adjustment Facility loans: 1998 — 921,793; 1997 — 1,219,681 - Interest receivable: 1998 — 6,454; 1997 — 6,196 - Total Special Disbursement Account: 1998 — 928,247; 1997 — 1,225,877 - Total Assets: - 1998 — 151,806,082; 1997 — 151,592,717 - Quotas, Reserves, Liabilities, and Resources — General Resources Account: - Quotas (Note 2): 1998 — 145,321,050; 1997 — 145,318,800 - Reserves (Note 7): 1998 — 2,133,515; 1997 — 1,969,667 - Special Contingent Accounts (Note 5): 1998 — 1,883,888; 1997 — 1,785,404 - Liabilities: - Remuneration payable (Note 5): 1998 — 433,730; 1997 — 273,495 - Other liabilities: 1998 — 188,016; 1997 — 144,909 - Combined remuneration and other liabilities: 1998 — 621,746; 1997 — 418,404 - Deferred income (Note 5): 1998 — 917,636; 1997 — 874,565 - Total General Resources Account: 1998 — 150,877,835; 1997 — 150,366,840 - Special Disbursement Account liabilities and resources: - Accumulated resources: 1998 — 923,107; 1997 — 1,221,497 - Deferred income (Note 5): 1998 — 5,140; 1997 — 4,380 - Total Special Disbursement Account: 1998 — 928,247; 1997 — 1,225,877 - Total Quotas, Reserves, Liabilities, and Resources: - 1998 — 151,806,082; 1997 — 151,592,717 ### General Department — Income Statements (for the Years Ended April 30, 1998 and 1997) (In thousands of SDRs) - General Resources Account — Operational Income (Note 5): - Periodic charges: 1998 — 1,852,807; 1997 — 1,525,109 - Interest on SDR holdings: 1998 — 37,426; 1997 — 57,593 - Other charges and income: 1998 — 99,650; 1997 — 38,880 - Burden-sharing contributions, net of refunds: - Additional charges: 1998 — 73,961; 1997 — 81,812 - Reduction of remuneration: 1998 — 72,928; 1997 — 116,960 - Deferred income, net of settlements: 1998 — (43,071); 1997 — (39,874) - Total Operational Income: 1998 — 2,093,701; 1997 — 1,780,480 - Operational Expenses: - Remuneration (Note 5): 1998 — 1,462,905; 1997 — 1,217,948 - Allocation to the Special Contingent Accounts (Note 5): 1998 — 98,483; 1997 — 151,944 - Total Operational Expenses: 1998 — 1,561,388; 1997 — 1,369,892 - Net Operational Income: - 1998 — 532,313; 1997 — 410,588 - Administrative Expenses (Notes 1 and 8): - 1998 — 368,465; 1997 — 316,794 - Net Income of the General Resources Account: - 1998 — 163,848; 1997 — 93,794 - Special Disbursement Account: - Interest and special charges: 1998 — 4,531; 1997 — 6,079 - Administrative expenses (Note 8): 1998 — —; 1997 — 30,700 - Net Income (Loss) of the Special Disbursement Account: 1998 — 4,531; 1997 — (24,621) ### General Department — Statements of Changes in Reserves and Resources (for the Years Ended April 30, 1998 and 1997) (In thousands of SDRs) - Reserves — General Resources Account: - Special Reserve (Note 7): - Balance, beginning of the year: 1998 — 1,604,087; 1997 — 1,510,293 - Net income transferred to the Special Reserve: 1998 — 98,483; 1997 — 93,794 - Balance, end of the year: 1998 — 1,702,570; 1997 — 1,604,087 - General Reserve (Note 7): - Balance, beginning of the year: 1998 — 365,580; 1997 — 365,580 - Net income transferred to the General Reserve: 1998 — 65,365; 1997 — — - Balance, end of the year: 1998 — 430,945; 1997 — 365,580 - Total Reserves of the General Resources Account: - 1998 — 2,133,515; 1997 — 1,969,667 - Resources — Special Disbursement Account: - Balance, beginning of the year: 1998 — 1,221,497; 1997 — 1,547,179 - Transfers from the Trust Fund: 1998 — 660; 1997 — 4,860 - Transfers from the Supplementary Financing Facility Subsidy Account: 1998 — —; 1997 — 179 - Net transfers to the ESAF Trust (Note 8): 1998 — (242,592); 1997 — (306,100) - Transfers to the ESAF-HIPC Trust (Note 8): 1998 — (60,989); 1997 — — - Aggregate after transfers: 1998 — 918,576; 1997 — 1,246,118 - Net income (loss): 1998 — 4,531; 1997 — (24,621) - Total Resources of the Special Disbursement Account: - 1998 — 923,107; 1997 — 1,221,497 *APPENDIX VIII — Excerpt from the International Monetary Fund Annual Report 1998* ### APPENDIX IX ### APPENDIX IX ### General Department structure and purpose - The General Department consists of the General Resources Account, the Special Disbursement Account, and the Investment Account (which had not been activated at April 30, 1998). - The General Resources Account (GRA) reflects receipt of quota subscriptions, purchases and repurchases, collection of charges on members’ use of IMF credit, and payment of remuneration on members’ creditor positions in the IMF. - Assets held in the GRA include currencies of the IMF’s member countries, SDR holdings, and gold. - A member’s reserve tranche: extent equals IMF holdings of its currency (excluding holdings reflecting member’s use of IMF credit) being less than the member’s quota; reserve tranche purchases are not considered use of IMF credit and are not subject to repurchase obligations or charges. ### Significant accounting practices - Unit of account: accounts of the General Department are expressed in terms of the SDR. The SDR valuation basket reviewed in financial year 1996. Basket composition and amounts: - U.S. dollar 0.582 - Deutsche mark 0.446 - Japanese yen 27.2 - French franc 0.813 - Pound sterling 0.105 - Valuation of currencies: currencies are valued in terms of the SDR on the basis of representative exchange rates determined for each currency; revaluation establishes receivables or payables to maintain SDR value. - Income recognition: accrual basis; income from charges overdue six months or more is deferred and recognized only when paid unless the member has remained current in settling charges when due. Compensating income is generated through the burden sharing mechanism. - Capital assets: land, buildings, and equipment capitalized at cost and depreciated straight-line; IMF capitalizes assets with cost in excess of $100,000. ### Quotas, currencies, and securities — key balances and movements - Members’ quotas: - April 30, 1996: 145,319 (in millions of SDRs) - April 30, 1997: 145,319 - April 30, 1998: 145,321 - Members’ outstanding use of IMF credit in the GRA: - April 30, 1996: 36,268 - Net change to April 30, 1997: (1,729) => April 30, 1997: 34,539 - Net change to April 30, 1998: 15,162 => April 30, 1998: 49,701 - Members’ outstanding reserve tranche positions in the GRA: - April 30, 1996: (37,352) - April 30, 1997: (36,103) - April 30, 1998: (50,324) - Administrative currency balances: - April 30, 1996: 2 - April 30, 1997: (1) - April 30, 1998: (2) - Currencies and securities (total): - April 30, 1996: 144,181 - April 30, 1997: 143,698 - April 30, 1998: 144,638 - Valuation receivables and payables from last revaluation (April 30, 1998): - Receivable: SDR 11,249.8 million - Payable: SDR 1,139.2 million - At April 30, 1997: receivable SDR 7,970.0 million; payable SDR 4,055.9 million - At June 11, 1998: receivable SDR 9,471.0 million; payable SDR 1,155.7 million ### SDR holdings - SDRs are reserve assets created by the IMF; IMF may acquire, hold, and dispose of SDRs through the General Resources Account. - IMF receives SDRs from members in settlement of obligations and earns interest on SDR holdings at the same rate as other holders. ### Gold holdings - At April 30, 1998 and 1997, IMF held 3,217,341 kilograms equal to 103,439,916 fine ounces of gold at designated depositories. - Gold valuation under Articles: 0.888671 gram of fine gold per SDR (equivalent to SDR 35 per fine ounce), except 21,396 fine ounces acquired at market value equivalent to SDR 5.1 million (original cost basis). - Market price valuation as of April 30, 1998: SDR 23.9 billion (SDR 25.8 billion at April 30, 1997). ### IMF operations — facilities, holdings, and charges - Changes in outstanding use of IMF credit by facility (in millions of SDRs): - Regular facilities: - April 30, 1996: 18,623 - Net to April 30, 1997 (purchases 1,837; repurchases 3,923): April 30, 1997: 16,537 - Net to April 30, 1998 (purchases 9,027; repurchases 1,104): April 30, 1998: 24,460 - Extended Fund Facility: - April 30, 1996: 7,435 - April 30, 1997: 9,463 - April 30, 1998: 11,339 - Supplemental Reserve Facility (SRF): - Established December 17, 1997 - April 30, 1998 outstanding: 7,100 - Systemic Transformation Facility: - April 30, 1996: 3,984 - April 30, 1998: 3,869 - Enlarged Access: - April 30, 1996: 4,436 - April 30, 1997: 3,046 - April 30, 1998: 2,089 - Compensatory and Contingency Financing Facility: - April 30, 1996: 1,602 - April 30, 1997: 1,335 - April 30, 1998: 685 - Supplementary Financing Facility: - April 30, 1996: 188 - April 30, 1997: 74 - April 30, 1998: 159 - Total outstanding use of IMF credit in GRA: - April 30, 1996: 36,268 - April 30, 1997: 34,539 - April 30, 1998: 49,701 - At April 30, 1998, total holdings on which the IMF levied charges: SDR 49,701.2 million (SDR 34,539.2 million at April 30, 1997). - Rate structure and special charges: - Rate of charge set as a proportion of the SDR interest rate; adjusted periodically to offset deferred charges and finance additions to Special Contingent Accounts. - Surcharge on SRF use: progressing from 300 basis points above rate of charge up to 500 basis points. - Special charges levied on holdings not repurchased when due and on overdue charges not settled when due; special charges do not apply to members six months or more overdue. - Service charge levied on each purchase except reserve tranche purchases; stand-by fee charged on Stand-By and Extended Arrangements and refunded in proportion to purchases. - Remuneration on remunerated reserve tranche positions: - Norm (average) amounted to 94.5 percent of quota at April 30, 1998 and 1997. - Rate of remuneration equals the SDR interest rate and is adjusted, subject to a specific floor, to offset the effect of the deferral of charges and to finance additions to Special Contingent Accounts. - Total creditor positions remunerated: - April 30, 1997: SDR 29,676.1 million - April 30, 1998: SDR 44,010.6 million ### Borrowing arrangements - General Arrangements to Borrow (GAB): IMF may borrow up to SDR 18.5 billion; effective October 24, 1962; extended through December 25, 1998; GAB had not been activated at April 30, 1998. - New Arrangements to Borrow (NAB): adopted January 27, 1997; IMF may borrow up to SDR 34 billion; NAB to enter into force when participants adopt totaling no less than SDR 28.9 billion, including five participants with largest credit arrangements. - Outstanding drawings and commitments under GAB and NAB limited to combined total of SDR 34 billion. ### Overdue obligations and cooperative strategy - At April 30, 1998 and 1997, six members were six months or more overdue; four of these were overdue to the General Department. The Federal Republic of Yugoslavia (Serbia/Montenegro) also six months or more overdue. - Credit extended to these members and Yugoslavia through GRA and SDA, including SAF loans: - April 30, 1998: SDR 1,182.0 million - April 30, 1997: SDR 1,215.0 million - Repurchases and SAF loan repayments and charges and SAF interest six months or more overdue (in millions of SDRs): - Total overdue (1998): 1,156 ; (1997): 1,165 - Overdue for six months or more (1998): 1,147 ; (1997): 1,147 - Overdue for three years or more (1998): 1,064 ; (1997): 1,043 - Type and duration of arrears as of April 30, 1998 (in millions of SDRs; Longest Obligation dates): - Congo, Democratic Republic of: Repurchases and SAF Loans 275.0; Charges and SAF Interest 53.5; Total 328.5; Longest Obligation May 1991 - Liberia: Repurchases and SAF Loans 201.5; Charges and SAF Interest 206.0; Total 407.5; Longest Obligation April 1985 - Somalia: Repurchases and SAF Loans 105.5; Charges and SAF Interest 74.8; Total 180.3; Longest Obligation July 1987 - Sudan: Repurchases and SAF Loans 517.7; Charges and SAF Interest 561.3; Total 1,079.0; Longest Obligation July 1985 - Yugoslavia, Federal Republic of (Serbia/Montenegro): Repurchases and SAF Loans 56.1; Charges and SAF Interest 15.0; Total 71.1; Longest Obligation September 1992 - Total: Repurchases and SAF Loans 1,155.8; Charges and SAF Interest 910.6; Total 2,066.4 - Strengthened cooperative strategy components: 1. Preventive measures 2. Remedial and deterrent measures 3. Intensified collaboration and the rights approach (including IMF-monitored programs and rights accumulation programs) - Rights accumulation programs permit a member with protracted arrears to earn rights toward future financing through implementation of a comprehensive economic program; rights encashed under successor arrangement after clearance of arrears and meeting successor arrangement requirements. ### Deferred income and Special Contingent Accounts (SCAs) - Policy: exclude from current income charges due by members that are six months or more overdue unless the member is current in payment of charges; such charges recorded as deferred income. - Charges due and accrued by members six months or more overdue and deferred: - April 30, 1998: SDR 917.6 million - April 30, 1997: SDR 874.6 million - Since May 1, 1986 debtor and creditor members share equally financial consequences of overdue obligations: amount equal to deferred charges (excluding special charges) is generated and included in IMF income each quarter by adjustment of rate of charge and rate of remuneration. - Precautionary balances in Special Contingent Accounts: - Total held in SCA-1 and SCA-2 at April 30, 1998: SDR 1,883.9 million - SCA-1 at April 30, 1998: SDR 883.9 million (April 30, 1997: SDR 785.4 million) - SCA-2 at April 30, 1998: SDR 1,000.0 million (April 30, 1997: SDR 1,000.0 million) - SCA-2 established July 1, 1990 to accumulate SDR 1.0 billion over about five years through adjustment to rate of charge and rate of remuneration; financing of SCA-2 was completed during financial year (text ends). *APPENDIX IX — ANNUAL REPORT 1998* ### 1997. The resources accumulated in the SCA-2 safeguard ### 1997. The resources accumulated in the SCA-2 safeguard against potential losses arising from purchases made under a successor arrangement after a rights accumulation program has ### Resources accumulated in the SCA-2 safeguard and outstanding credit - Outstanding credit in the General Resources Account following the completion and encashment of rights accumulation programs amounted to SDR 514.1 million at April 30, 1998 (SDR621.3 million at April 30, 1997). ### Adjustments to charges and remuneration (Special Contingent Accounts and deferred charges) - Adjustments to charges and remuneration in respect of the Special Contingent Accounts and the costs of deferred charges during the years ended April 30, 1998 and 1997: - Deferred charges: 24.9 (Charges) 23.8 (Remuneration) 24.9 24.7 47.5 - SCA-1: 49.7 (Charges) 49.7 (Remuneration) 99.4 94.8 - SCA-2: ——— 58.6 - Refunds of deferred charges settled: (0.6) (0.6) (1.2) (2.1) - Burden-sharing contributions, net of refunds: 74.0 72.9 146.9 198.8 - The cumulative charges, net of settlements, deferred since May 1, 1986 and resulting in adjustments amounted to SDR 729.2 million at April 30, 1998 (SDR 680.8 million at April 30, 1997). - The cumulative refunds for the same period amounted to SDR 961.9 million (SDR 960.7 million at April 30, 1997). ### Other assets (capital assets) - Other assets include capital assets which at April 30, 1998 and 1997 amounted to SDR 216.3 million and SDR 194.0 million, respectively. - Composition (In millions of SDRs): - Land and buildings: 274.7 (1998) 246.3 (1997) - Equipment: 29.6 (1998) 24.1 (1997) - Total capital assets: 304.3 (1998) 270.4 (1997) - Less accumulated depreciation: 88.0 (1998) 76.4 (1997) - Net capital assets: 216.3 (1998) 194.0 (1997) ### Reserves - The IMF determines annually what part of its net income shall be placed to the General Reserve or to the Special Reserve, and what part, if any, shall be distributed. - The Articles of Agreement permit the IMF to use the Special Reserve for any purpose for which it may use the General Reserve, except distribution. - An administrative deficit for any financial year must be charged first against the Special Reserve. ### Administrative expenses (years ended April 30, 1998 and 1997) - General Resources Account (In millions of SDRs): - Personnel: 243.5 (1998) 246.9 (1997) - Travel: 54.6 (1998) 46.6 (1997) - Other: 74.8 (1998) 58.2 (1997) - Less reimbursements for the administration of: - The SDR Department: (4.4) (1998) (4.2) (1997) - The ESAF Trust and the Special Disbursement Account: — (1998) (30.7) (1997) - Total administrative expenses, net of reimbursements: 368.5 (1998) 316.8 (1997) - Special Disbursement Account: - Reimbursement to the GRA for the administration of the ESAF Trust and the Special Disbursement Account: — (1998) 30.7 (1997) - Board decision affecting reimbursements and transfers: - Following establishment of the SRF and increased net operational income, the Board decided to forgo reimbursement for financial years 1998 and 1999 and to transfer the amount that would otherwise have been reimbursed to the GRA. - Amount transferred for financial year 1998: SDR 40.7 million (from the ESAF Trust Reserve Account, through the Special Disbursement Account, to the ESAF-HIPC Trust). - This amount is included under Transfers to ESAF-HIPC Trust in the Statements of Changes in Reserves and Resources. ### Staff Retirement Plans and postretirement benefits - The IMF has a funded defined-benefit Staff Retirement Plan and a funded defined-benefit Supplemental Retirement Benefits Plan (“the Plans”) covering nearly all staff. - Contributions and administration: - Participants contribute a fixed percentage of their pensionable remuneration. - The IMF contributes the remainder of the cost of funding the Plans and pays certain administrative costs. - IMF uses the aggregate cost method for determining its pension cost; contributions, including those for cost of living adjustments and for experience gains and losses, are spread over expected future working lifetimes of participants. - Actuarial basis: - Funding and cost of the Plans for the year ended April 30, 1998 are based on an actuarial valuation at April 30, 1997. - Contributions and valuations: - IMF contribution to the Plans during year ended April 30, 1998: SDR 13.7 million (SDR 23.5 million during year ended April 30, 1997). - Present value of benefits payable under the Plans at April 30, 1998: SDR 1,998.3 million. - Assets for actuarial purposes at April 30, 1998: SDR 1,894.5 million (SDR 1,875.4 million and SDR 1,691.7 million, respectively, at April 30, 1997). - Postretirement medical and life insurance benefits: - Cost determined actuarially using the projected unit credit method; funding and cost for year ended April 30, 1998 based on actuarial valuation at May 1, 1997. - Cumulative cost estimated at SDR 136.0 million at April 30, 1998 (SDR 131.9 million at April 30, 1997). - Retired Staff Benefits Investment Account balance at April 30, 1998: SDR130.3 million (SDR 108.7 million at April 30, 1997). ### Schedule 1 — General Resources Account: key totals and selected member data (as at April 30, 1998) - Total (bottom-line figures): - Member Quotas Total: 145,321,050 (In thousands of SDRs) - Fund’s holdings of currencies: 144,638,372 (In thousands of SDRs) - Use of Fund Resources — GRA: 50,324,030 (In thousands of SDRs) - Use of Fund Resources — ESAF Trust: 49,701,200 (In thousands of SDRs) - Percent of quota: 100.00 - SDA: 921,793 - For information — ESAF Trust total: 5,269,650 - Total Use of Fund Resources (A)+(B)+(C)=(D): 55,982,431 - Selected member entries (Fund’s holdings / Use of Fund Resources — GRA / Percent of quota / Reserve tranche position / SDA / ESAF Trust / Total): - Afghanistan, Islamic State of: 120,400 115,488 95.9 4,928 — — — — — - Albania: 35,300 44,125 125.0 5 8,825 0.02 — 31,060 39,885 - Algeria: 914,400 2,505,273 274.0 7 1,590,875 3.20 — — 1,590,875 - Argentina: 1,537,100 5,694,740 370.5 — 4,157,615 8.37 — — 4,157,615 - Australia: 2,333,200 1,692,226 72.5 641,035 — — — — — - Austria: 1,188,300 295,980 24.9 892,306 — — — — — - Bangladesh: 392,500 392,364 100.0 139 — — 13,369 248,250 261,619 - Brazil: 2,170,800 2,187,142 100.8 — 15,539 0.03 — — 15,539 - Canada: 4,320,300 3,153,200 73.0 1,167,169 — — — — — - China: 3,385,200 1,329,508 39.3 2,055,694 — — — — — - India: 3,055,500 3,340,186 109.3 212,793 497,375 1.00 — — 497,375 - Indonesia: 1,497,600 3,699,073 247.0 — 2,201,472 4.43 — — 2,201,472 - Italy: 4,590,700 2,354,017 51.3 2,236,687 — — — — — - Japan: 8,241,500 1,163,787 14.1 7,077,818 — — — — — - Korea: 799,600 11,999,570 1,500.7 33 11,200,000 22.53 — — 11,200,000 - Mexico: 1,753,300 8,488,385 484.1 173 6,735,240 13.55 — — 6,735,240 - Russian Federation: 4,313,100 14,528,375 336.8 926 10,216,058 20.56 — — 10,216,058 - United States: 26,526,800 12,994,063 49.0 13,528,378 — — — — — - United Kingdom: 7,414,600 5,217,884 70.4 2,196,750 — — — — — - Ukraine: 997,300 2,814,127 282.2 81,816,828 3.66 — — 1,816,828 - Venezuela: 1,951,300 2,976,956 152.6 144,950 1,170,604 2.36 — — 1,170,604 - Zimbabwe: 261,300 386,229 147.8 164 125,092 0.25 — 146,430 271,522 - Notes from Schedule 1: - Includes nonnegotiable, non-interest-bearing notes that members are entitled to issue in substitution for currencies, and outstanding currency valuation adjustments. - The Special Disbursement Account (SDA) of the General Department provides financing under Structural Adjustment Facility (SAF) and Enhanced Structural Adjustment Facility (ESAF) arrangements. - For information purposes only: The ESAF Trust provides financing under ESAF arrangements and is not a part of the General Department. - Includes outstanding Trust Fund loans to Liberia (SDR 24.1 million), Somalia (SDR 6.5 million), and Sudan (SDR 59.2 million). - Less than SDR 500 indicated by * ### Schedule 2 — General Department: Schedule of Repurchases and Repayments of Loans (as at April 30, 1998) - Totals (In thousands of SDRs): - Total repurchases and repayments: General Resources Account: 49,701,200; Special Disbursement Account: 921,793 - Financial year breakdown (General Resources Account / Special Disbursement Account): - Overdue: 1,030,116 125,733 - 1999: 9,446,675 261,658 - 2000: 13,804,740 175,076 - 2001: 6,820,322 79,024 - 2002: 7,302,323 90,679 - 2003: 5,544,501 61,864 - 2004: 1,937,681 50,823 - 2005: 1,519,936 40,270 - 2006: 1,169,964 36,666 - 2007: 807,110 — - 2008: 317,832 — - Note: A member is entitled to repurchase at any time the IMF’s holdings of its currency subject to charges and is expected to make repurchases as and when its balance of payments and reserve position improve. *Source: _file10pdf - 1997. The resources accumulated in the SCA-2 safeguard* ### APPENDIX IX ### APPENDIX IX ### Schedule 3 — General Department: Status of Arrangements as at April 30, 1998 (In thousands of SDRs) - Total Stand-By Arrangements: 28,323,230; Undrawn Balance: 12,368,256 - Selected Stand-By arrangements (Amount Agreed, Undrawn Balance) - Bulgaria: 371,900; 124,300 - Cape Verde: 2,100; 2,100 - Djibouti: 6,600; 2,625 - Egypt: 271,400; 271,400 - El Salvador: 37,680; 37,680 - Estonia, Republic of: 16,100; 16,100 - Indonesia: 7,338,240; 5,136,768 - Korea: 15,500,0001; 4,300,000 - Latvia, Republic of: 33,000; 33,000 - Philippines: 1,020,790; 1,020,790 - Romania: 301,500; 180,900 - Thailand: 2,900,000; 900,000 - Ukraine: 398,920; 217,593 - Uruguay: 125,000; 125,000 - Total Extended Arrangements: 12,335,700; Undrawn Balance: 6,828,466 - Selected Extended arrangements (Amount Agreed, Undrawn Balance) - Algeria: 1,169,280; 84,480 - Argentina: 2,080,000; 2,080,000 - Azerbaijan: 58,500; 26,330 - Croatia, Republic of: 353,160; 324,380 - Gabon: 110,300; 49,630 - Jordan: 238,040; 47,350 - Kazakhstan, Republic of: 309,400; 309,400 - Moldova, Republic of: 135,000; 97,500 - Pakistan: 454,920; 398,060 - Panama: 120,000; 110,000 - Peru: 300,200; 139,700 - Russian Federation: 6,901,000; 3,064,736 - Yemen, Republic of: 105,900; 96,900 - Total General Resources Account: 40,658,930; Undrawn Balance: 19,196,722 1. Includes SDR 9.95 billion available until December 17, 1998 under the Supplemental Reserve Facility. ### SDR Department — Statements of Allocations and Holdings as at April 30, 1998 and 1997 (In thousands of SDRs) - Allocations - Net cumulative allocations of SDRs: 21,433,330 (1998 and 1997) - Overdue charges (Note 2): 78,666 (1998); 64,611 (1997) - Total Allocations: 21,511,996 (1998); 21,497,941 (1997) - Holdings (1998 / 1997) - Participants with holdings above allocations - Allocations: 10,457,271 (1998); 10,399,818 (1997) - Net receipts of SDRs: 6,731,164 (1998); 5,162,821 (1997) - Total: 17,188,435 (1998); 15,562,639 (1997) - Participants with holdings below allocations - Allocations: 10,976,059 (1998); 11,033,512 (1997) - Net uses of SDRs: 7,802,687 (1998); 7,899,301 (1997) - Total: 3,173,372 (1998); 3,134,211 (1997) - Total holdings of participants: 20,361,807 (1998); 18,696,850 (1997) - General Resources Account holdings: 764,424 (1998); 1,494,149 (1997) - Holdings of SDRs by prescribed holders: 385,765 (1998); 1,306,942 (1997) - Total Holdings: 21,511,996 (1998); 21,497,941 (1997) ### SDR Department — Statements of Receipt and Use for the Year Ended April 30, 1998 (with comparative totals for year ended April 30, 1997) (In thousands of SDRs) - Total holdings, beginning of the year: 18,696,850 (participants); 1,494,149 (General Resources Account); 1,306,942 (Prescribed Holders); Total 21,497,941 (beginning) - Total receipts (1998): 14,792,666 (Participants) ; 4,843,781 (General Resources Account) ; 619,349 (Prescribed Holders) ; Total 20,255,796 - Major receipt items (1998) - Transactions by agreement (participants and prescribed holders): 8,539,330; 27,561; Total 8,566,891 - SAF/ESAF loans: 351,745 - ESAF contributions and payments: 33,310; 95,934 (ESAF contributions/payments shown in later breakdown) - Net interest on SDRs (Note 2): 242,541 (participants); 41,715 (prescribed holders); Total 284,256 - Repurchases (transfers from participants to General Resources Account): 2,917,685 - Charges (transfers from participants to General Resources Account): 1,877,315 - Remuneration (transfers from General Resources Account to participants): 1,220,129 - Refunds and adjustments: 90,115 - Total uses (1998): 13,127,709 (Participants) ; 5,573,506 (General Resources Account) ; 1,540,526 (Prescribed Holders) ; Total 20,241,741 - Major use items (1998) - Transactions by agreement (uses among participants and prescribed holders): 7,463,648; 1,103,243; Total 8,566,891 - Settlement of financial obligations: 34,182; 52,228; Total 86,410 - SAF/ESAF loans (uses): 351,745 - ESAF contributions and payments: 95,934; 33,310; Total 129,244 - Repurchases, transfers from participants to General Resources Account: 2,917,685 - Charges: 1,877,315 - Purchases from General Resources Account to participants: 4,243,310 - Remuneration: 1,220,129 - Charges paid in the SDR Department (Note 2) - Net charges due: 328,687 (1998); 319,502 (1997) - Charges not paid when due: (18,335) (1998); (15,689) (1997) - Settlement of unpaid charges: 4,280 (1998); 4,490 (1997) - Total holdings, end of the year: 20,361,807 (Participants); 764,424 (General Resources Account); 385,765 (Prescribed Holders); Total 21,511,996 (end) ### SDR Department — Uses, Overdue Charges, and Arrears (as at April 30, 1998) - At April 30, 1998, charges overdue to the SDR Department: SDR 78.7 million (SDR 64.6 million at April 30, 1997) - At April 30, 1998 and 1997, six members were six months or more overdue in meeting their financial obligations to the IMF; five of these members were six months or more overdue to the SDR Department at April 30, 1998 (four members at April 30, 1997) - Charges due from members (including Serbia/Montenegro) that are six months or more overdue: - 1998 / 1997 (In millions of SDRs) - Total overdue charges: 78.7 (1998); 62.9 (1997) - Overdue for six months or more: 71.3 (1998); 58.1 (1997) - Overdue for three years or more: 43.8 (1998); 35.1 (1997) - Duration and amount of longest overdue obligations (In millions of SDRs) - Afghanistan: 2.5; Longest Overdue February 1996 - Congo, Democratic Republic of: 5.4; Longest Overdue November 1996 - Iraq: 32.9; Longest Overdue November 1990 - Liberia: 16.4; Longest Overdue August 1988 - Somalia: 6.1; Longest Overdue February 1991 - Yugoslavia, Federal Republic of (Serbia/Montenegro): 15.4; Longest Overdue November 1992 - Total: 78.7 ### SDR Department — Unit of Account; SDR Valuation Basket (amounts) - Accounts expressed in terms of the SDR. The SDR valuation basket currencies and amounts: - U.S. dollar: 0.582 - Deutsche mark: 0.446 - Japanese yen: 27.2 - French franc: 0.813 - Pound sterling: 0.105 - The SDR valuation basket was last revised in financial year 1996. The IMF reviews the SDR valuation basket every five years. ### SDR Department — Interest, Charges, Assessment, and Operational Rules - Interest is paid on holdings of SDRs; charges are levied on each participant’s net cumulative allocation plus any negative balance or unpaid charges. - Interest on SDR holdings and charges on net cumulative allocations are levied at the same rate and settled quarterly by crediting and debiting individual holdings accounts on the first day of the subsequent quarter. - If sufficient SDRs are not received because charges are overdue, additional SDRs are temporarily created to pay holders. - The rate of interest on the SDR is determined by reference to a combined market interest rate, a weighted average of yields or rates on short-term instruments in France, Germany, Japan, the United Kingdom, and the United States. The combined market interest rate is calculated each Friday; the SDR interest rate (equal to the combined market interest rate) enters into effect on the following Monday and applies until the end of the following Sunday. - Expenses of conducting the business of the SDR Department are paid by the IMF from the General Resources Account, which is reimbursed in SDRs by the SDR Department at the end of each financial year via an assessment on all participants in proportion to their net cumulative allocation. ### Enhanced Structural Adjustment Facility (ESAF) Trust — Purpose and Structure - Purpose: The Trust, for which the IMF is Trustee, was established in December 1987 and extended/enlarged in February 1994 to provide loans on concessional terms to qualifying low-income developing country members. - Trust operations are separate from other IMF accounts and are conducted through three accounts: - Loan Account - Reserve Account - Subsidy Account ### ESAF Trust — Loan Account (as at April 30, 1998) - Loans receivable: 5,269,650 (1998); 4,590,574 (1997) (In thousands of SDRs) - Interest on outstanding loan balances: currently set at the rate of 1/2 of 1 percent a year - Loan Account resources consist of proceeds from borrowing and principal and interest payments on loans extended by the Trust. - At April 30, 1998, loans outstanding: SDR 5,269.6 million ### ESAF Trust — Reserve Account and Subsidy Account (as at April 30, 1998) - Reserve Account resources consist of amounts transferred by the IMF from the Special Disbursement Account and net earnings from investment of resources held in the Reserve and Loan Accounts. - Reserve Account balance (end of year): 2,089,814 (In thousands of SDRs) - Subsidy Account resources consist of donations, transfers of net earnings from ESAF administered accounts, SDR 400 million transferred by the IMF from the Special Disbursement Account, net earnings on loans made to the Trust for the Subsidy Account, and investment earnings. - Subsidy Account balance (end of year): 1,623,882 (In thousands of SDRs) - Combined Trust balance, end of year: 3,713,696 (1998); 3,332,746 (1997) (In thousands of SDRs) ### ESAF Trust — Combined Balance Sheet as at April 30, 1998 (with comparative totals as at April 30, 1997) (In thousands of SDRs) - Total Assets (Combined): 9,433,112 (1998); 8,286,621 (1997) - Loans receivable: 5,269,650 - Investments (Notes 2 and 4): 4,084,062 (1998); 3,648,538 (1997) - Interest receivable: 79,400 (1998); 47,507 (1997) - Accrued account transfers: (15,059) (Loan Account); 66,960 (Reserve Account); (51,901) (Subsidy Account) — combined presentation included in total assets - Total Resources and Liabilities (Combined): 9,433,112 (1998); 8,286,621 (1997) - Resources: 3,713,696 (Reserve and Subsidy Account resources) - Borrowing: 5,613,451 (1998); 4,900,730 (1997) - Interest payable: 65,265 (1998); 53,145 (1997) - Transfer payable: 40,700 (Reserve Account) ### ESAF Trust — Combined Income Statement for Year Ended April 30, 1998 (In thousands of SDRs) - Income (Combined): 181,368 (1998); 151,973 (1997) - Investment income: 157,196 (1998); 130,173 (1997) - Interest on loans: 24,124 (1998); 21,726 (1997) - Exchange valuation gain: 48 (1998); 74 (1997) - Expense (Combined): 186,703 (1998); 158,684 (1997) - Interest expense: 186,665 (1998); 158,597 (1997) - Other expenses: 38 (1998); 87 (1997) - Net Income (Loss): (5,335) (1998); (6,711) (1997) - Loan Account: (158,817) net loss - Reserve Account: 80,133 net income - Subsidy Account: 73,349 net income ### ESAF Trust — Statements of Changes in Resources for Year Ended April 30, 1998 (In thousands of SDRs) - Balance, beginning of the year (Reserve and Subsidy): 1,773,448 (Reserve); 1,559,298 (Subsidy); Combined 3,332,746 - Contributions: 143,693 to Subsidy Account (1998); 202,358 (1997) - Transfers from the Special Disbursement Account: 303,581 - Transfers through the Special Disbursement Account to the ESAF-HIPC Trust: (60,989) - Net transfers between accounts: - Loan to Reserve Accounts: 6,359 (Loan) ; (6,359) (Reserve) - Loan to Subsidy Accounts: 152,458 (Loan) ; (152,458) (Subsidy) - Net income (loss) for the year: (158,817) (Loan); 80,133 (Reserve); 73,349 (Subsidy) ; Combined (5,335) - Balance, end of the year: Reserve Account 2,089,814; Subsidy Account 1,623,882; Combined 3,713,696 *Source: APPENDIX IX, ANNUAL REPORT 1998 — IMF financial statements and schedules as at April 30, 1998.* ### APPENDIX IX ### APPENDIX IX ### Accounting Practices - The accounts of the Trust are expressed in terms of the SDR. - SDR valuation: - The currency value of the SDR is determined daily by summing values in U.S. dollars, based on market exchange rates, of a basket of five currencies. - The IMF reviews the SDR valuation basket every five years. - The SDR valuation basket was last reviewed in financial year 1996. - Currencies and amounts in the basket: - U.S. dollar 0.582 - Deutsche mark 0.446 - Japanese yen 27.2 - French franc 0.813 - Pound sterling 0.105 - Members are not obligated to maintain the SDR value of their currencies held in the accounts of the Trust. - Accounting basis: accounts are maintained on the accrual basis; income is recognized as earned, and expenses are recorded as incurred. ### Investments - Trust resources are invested pending their use. - Investments are denominated in SDRs or in currency and are carried at cost, which does not exceed net realizable value. - Pending investment, resources may be temporarily held in currency, which may give rise to valuation gains and losses. ### Contributions (Subsidy Account) - The Trustee accepts contributions on terms agreed with contributors. - Cumulative contributions received at April 30, 1998: SDR 1,866.7 million (SDR 1,723.0 million at April 30, 1997). - Schedule 2 totals (as at April 30, 1998) — contributions and resources (in thousands of SDRs): - Total direct contributions to the Subsidy Account: 1,352,757 - Total net income transferred from Administered Accounts: 113,951 - Total contributions received: 1,466,708 - Transfers from Special Disbursement Account: 400,000 - Total contributions received and transfers from Special Disbursement Account: 1,866,708 - Cumulative net income of the Subsidy Account: 448,579 - Resources disbursed to subsidize Trust lending: (691,405) - Total resources of the Subsidy Account: 1,623,882 - Note: In addition to direct contributions, a number of members also make loans available to the Loan Account on concessional terms. ### Borrowing - The Trust borrows resources for the Loan Account and for the Subsidy Account on terms agreed with lenders. - Summary of borrowing agreements as at April 30, 1998 (in thousands of SDRs): - Amount Agreed / Amount Undrawn - Loan Account: 9,288,529 / 3,379,332 - Subsidy Account: 243,481 / 6,665 - Trustee arrangement: principal repayments of Trust borrowing may be held and invested in a suspense account within the Loan Account on behalf of a lender; principal repayments are accumulated until final maturity and invested, with interest payments to the lender made exclusively from earnings on the invested amounts. ### Commitments Under Loan Arrangements - At April 30, 1998, undrawn balances under 33 loan arrangements amounted to SDR 2,164.5 million (SDR 1,675.7 million under 35 arrangements at April 30, 1997). - Loan arrangements and scheduled repayments are detailed in Schedules 5 and 6. ### Transfers Through the Special Disbursement Account - Expenses of conducting Trust business are paid by the General Resources Account of the IMF and reimbursed through the Special Disbursement Account; corresponding transfers are made from the Reserve Account as needed. - For financial year 1998, the Executive Board decided to forgo such reimbursement and to transfer SDR 40.7 million from the Reserve Account, through the Special Disbursement Account, to the ESAF-HIPC Trust. - Up to SDR 250 million may be transferred from the Reserve Account through the Special Disbursement Account to the ESAF-HIPC Trust for grant or loans to eligible members under the HIPC initiative. - At April 30, 1998, SDR 20.3 million had been transferred for this purpose. ### Schedule Highlights — Outstanding Loans (Schedule 1) - Total loans outstanding (as at April 30, 1998): - ESAF Loan Account: 5,269,650 (100.00 percent) - Structural Adjustment Facility: 921,793 (100.00 percent) - Notable individual balances (in thousands of SDRs): - Zambia: 661,682 (12.54 percent) and 181,750 (19.71 percent) - Pakistan: 399,660 (7.58 percent) and 174,816 (18.95 percent) - Côte d’Ivoire: 416,850 (7.91 percent) - Sri Lanka: 252,000 (4.78 percent) and 42,389 (4.60 percent) - Uganda: 285,927 (5.43 percent) and 8,964 (0.97 percent) ### Schedule Highlights — Borrowing Agreements (Schedule 3) - Total borrowing agreements summarized (in thousands of SDRs): - Total prior to enlargement of ESAF: Agreed 4,945,000 / Drawn 4,941,429 / Amount Outstanding 4,238,650 - Total for enlargement of ESAF: Agreed 4,343,529 / Drawn 964,198 / Amount Outstanding 964,198 - Resources held pending repayment: 233,787 - Total—Loan Account: Agreed 9,288,529 / Drawn 5,905,627 / Amount Outstanding 5,436,635 - Total—Subsidy Account: Agreed 243,481 / Drawn 236,816 / Amount Outstanding 176,816 - Selected lender terms and notes: - Canada: prior agreement 300,000 (loan at market-related rates fixed when disbursed) - France: agreements include fixed 0.50 percent on portions and variable thereafter; specific provisions tied to implicit interest subsidy thresholds - Japan: large variable-rate loans (e.g., 2,200,000 agreed prior to enlargement; outstanding amounts reported) - OPEC Fund for International Development agreement is for an amount of $50 million (note 5). - Resources held pending repayment represent principal repayments held and invested on behalf of a lender (note 6). - Thailand: outstanding borrowings repaid at Thailand’s request on January 30, 1998 (note 7). - Uruguay: interest rate payable equals the rate on SDR-denominated deposits less 2.6 percent a year (note 8). ### Schedule Highlights — Repayments of Borrowing (Schedule 4) - Repayment schedule of borrowing (in thousands of SDRs): - Total Loan Account repayments scheduled: 5,436,635 - Total Subsidy Account repayments scheduled: 176,816 - Period breakdown (selected years, ending April 30): - 1999: Loan 310,313 / Subsidy 40,000 - 2000: Loan 393,078 / Subsidy 20,000 - 2001: Loan 466,532 / Subsidy 10,000 - 2005: Loan 601,542 / Subsidy 90,751 - 2006: Loan 1,158,857 / Subsidy — - 2008: Loan 364,010 / Subsidy 1,365 - 2010: Loan — / Subsidy 2,668 - 2014: Loan — / Subsidy 667 ### Schedule Highlights — Status of Loan Arrangements (Schedule 5) - As at April 30, 1998: - Total amount agreed under loan arrangements: 4,410,286 - Total undrawn under these arrangements: 2,164,528 - Examples of arrangements with undrawn balances (in thousands of SDRs): - Armenia: Agreed 101,250 / Undrawn 33,750 (Arrangement Feb. 14, 1996; Expiration Feb. 13, 1999) - Pakistan: Agreed 682,380 / Undrawn 454,920 (Arrangement Oct. 20, 1997; Expiration Oct. 19, 2000) - Côte d’Ivoire: Agreed 285,840 / Undrawn 202,470 (Arrangement Mar. 17, 1998; Expiration Mar. 16, 2001) - Cameroon: Agreed 162,120 / Undrawn 108,080 (Arrangement Aug. 20, 1997; Expiration Aug. 19, 2000) - Zambia: Agreed 701,682 / Undrawn 40,000 (Arrangement Dec. 6, 1995; Expiration Dec. 5, 1999) - Note: The Saudi Fund for Development may provide associated loans; as at April 30, 1998, SDR 49.5 million of such associated loans had been disbursed. ### Schedule Highlights — Repayments of Loans Receivable (Schedule 6) - Scheduled repayments of loans receivable (Loan Account) (in thousands of SDRs): - 1999: 375,767 - 2000: 463,331 - 2001: 511,686 - 2002: 680,726 - 2003: 722,241 - 2004: 803,893 - 2005: 677,260 - 2006: 565,749 - 2007: 303,663 - 2008: 165,334 - Total: 5,269,650 ### Enhanced Structural Adjustment Facility Administered Accounts — Financial Statements Highlights - Administered accounts established at member request to administer resources deposited for the Subsidy Account of the ESAF Trust; difference between interest earned and interest payable on deposits is transferred to the Subsidy Account. - The Saudi Fund for Development (SFD) Special Account established for disbursement of amounts under associated loans; IMF acts as agent for SFD transfers. - Resources of each administered account are separate from assets of all other accounts of or administered by the IMF and may not be used to discharge liabilities or meet losses of other accounts. - Selected administered account balances and flows (examples presented in schedules): - Investments, interest receivable, advance payments, resources/deposits, interest payable, investment income, interest expense on deposits, net income, transfers to the ESAF Trust Subsidy Account, and year-end balances are reported for multiple country-administered accounts (Austria, Belgium, Botswana, Chile, Greece, Indonesia, Iran, Portugal, among others) for 1998 and 1997. - Example figures (in thousands of SDRs): - Austria (1998): Investments 62,000; Interest receivable 1,736; Total assets 63,736; Net income 2,473; Transfers to Subsidy Account (1,468); Balance end of year 1,496. - Belgium (1998): Investments 180,000; Interest receivable 1,521; Total assets 181,521; Net income 6,969; Transfers to Subsidy Account (6,321); Balance end of year 1,365. - Greece (1998): Investments 42,000; Interest receivable 1,334; Total assets 43,334; Net income 1,663; Transfers to Subsidy Account (866); Balance end of year 1,295. *Enhanced Structural Adjustment Facility Trust — APPENDIX IX, Annual Report 1998* ### 1. Accounting Practices ### 1. Accounting Practices ### Accounting practices (general) - The administered accounts are expressed in terms of the SDR. - SDRs are reserve assets allocated to participants in the IMF’s SDR Department. - The currency value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of a basket of five currencies. - The IMF reviews the SDR valuation basket every five years. The SDR valuation basket was last reviewed in financial year 1996. - Members are not obligated to maintain the SDR value of their currencies held in the accounts of the Trust. - The administered accounts and the accounts of the Trust are maintained on the accrual basis; accordingly, income is recognized as it is earned, and expenses are recorded as they are incurred. ### SDR valuation basket (currencies and amounts) - U.S. dollar 0.582 - Deutsche mark 0.446 - Japanese yen 27.2 - French franc 0.813 - Pound sterling 0.105 ### Investments (administered accounts) - The resources of each administered account are invested in SDR-denominated deposits and valued at cost, which approximates market value. - For the ESAF-HIPC Trust, investments are denominated in SDRs or in currency and are carried at cost, which does not exceed net realizable value. - Pending their investment, resources may be temporarily held in currency, which also may give rise to valuation gains and losses. ### Deposits (administered accounts requested by members) - Administered Account Austria: - Established on December 27, 1988. - Two deposits: one of SDR 60.0 million made on December 30, 1988, and one of SDR 50.0 million made on August 10, 1995. - Repayment: to be repaid in ten equal semiannual installments beginning 5!/2 years after the date of each deposit and ending at the end of the tenth year after the date of each deposit. - Interest: deposits bear interest at a rate of !/2of 1 percent a year. - Administered Account Belgium: - Established on July 27, 1988. - Four deposits: SDR 30.0 million (July 29, 1988); SDR 35.0 million (December 30, 1988); SDR 35.0 million (June 30, 1989); SDR 80.0 million (April 29, 1994). - Initial maturity six months, renewable at IMF option; final maturity ten years from initial date of each deposit. - Interest: !/2of 1 percent a year. - Administered Account Botswana: - Established on July 1, 1994. - Deposit: SDR 6.9 million. - Repayment: one installment ten years after the date of deposit. - Interest: 2 percent a year. - Administered Account Chile: - Established on October 4, 1994. - Deposit: SDR 15.0 million. - Repayment: one installment ten years after the date of deposit. - Interest: !/2of 1 percent a year. - Administered Account Greece: - Established on November 30, 1988. - Two deposits of SDR 35.0 million each (December 15, 1988 and April 29, 1994). - Repayment: ten equal semiannual installments beginning 5!/2 years after the date of deposit and completed at the end of the tenth year after the date of the deposits. - Interest: !/2of 1 percent a year. - Administered Account Indonesia: - Established on June 30, 1994. - Deposit: SDR 25.0 million. - Repayment: one installment ten years after the date the deposit was made. - Interest: equivalent to that obtained for the investment of the deposit less 2 percent a year. - Administered Account Islamic Republic of Iran: - Established on June 6, 1994. - Five annual deposits, each of SDR 1.0 million. - Repayment: all deposits repaid at the end of ten years after the date of the first deposit. - Interest: each deposit bears interest at a rate of !/2of 1 percent a year. - Administered Account Portugal: - Established on May 16, 1994. - Six annual deposits, each of SDR 2.2 million. - Repayment: each deposit repaid in five equal annual installments beginning six years after the date of the deposit and completed at the end of the tenth year after the date of the deposit. - Interest: !/2of 1 percent a year. ### Associated loans (Saudi Fund for Development / SFD) - The SFD agreed to provide resources up to the equivalent of SDR 200.0 million to support arrangements under the ESAF through loans in association with loans under the ESAF. - Funds become available under an associated loan after a bilateral agreement between the SFD and the recipient country has been effected. - Amounts denominated in SDRs for disbursement to a recipient country under an associated loan are placed by the SFD in the Special Account for disbursement by the IMF simultaneously with disbursements under an ESAF arrangement. - Repayment: these loans are repayable in ten equal semiannual installments commencing not later than the end of the first six months of the sixth year, and are to be completed at the end of the tenth year after the date of disbursement. - Interest: interest on the outstanding balance is currently set at the rate of !/2of 1 percent a year. --- ### ESAF-HIPC Trust ### Purpose and framework - The Trust for Special ESAF Operations for the Heavily Indebted Poor Countries and for Interim ESAF Subsidy Operations (“the ESAF-HIPC Trust”), for which the IMF is Trustee, was established on February 4, 1997 to provide balance of payments assistance to low-income developing members by making grants and loans to eligible members for the purpose of reducing their external debt burden and for interim ESAF subsidy purposes. - The resources of the Trust are separate from the assets of all other accounts of, or administered by, the IMF and may not be used to discharge liabilities or to meet losses incurred in the administration of other accounts. - The operations of the Trust are conducted through the ESAF-HIPC Trust Account and the Umbrella Account for HIPC Operations. ### ESAF-HIPC Trust Account (resources and uses) - Resources consist of grant contributions, deposits, loans, and other types of investments made by contributors; amounts transferred by the IMF from the Special Disbursement Account; and net earnings from investment of resources held in the ESAF-HIPC Trust Account. - Resources are to be used by the Trustee to make grants or loans to eligible members that qualify for assistance under the HIPC Initiative and for subsidizing the interest rate on interim ESAF operations to ESAF-eligible members. ### Umbrella Account for HIPC Operations (purpose and operation) - The Umbrella Account receives and administers the proceeds of grants or loans made to eligible members that qualify for assistance under the terms of the ESAF-HIPC Trust. - Within the Umbrella Account, resources received are administered through the establishment of subaccounts for each eligible member upon the approval of a disbursement under the ESAF-HIPC Trust. - Resources of a subaccount consist of: - (i) amounts disbursed from the ESAF-HIPC Trust Account as grants or loans for the benefit of a member, and - (ii) net earnings from investment of the resources held in the subaccount. - The resources held in a subaccount are to be used to meet the member’s debt obligations to the IMF in accordance with the schedule agreed upon by the Trustee and the member for the use of the proceeds of ESAF-HIPC disbursements. ### Accounting practices (ESAF-HIPC Trust) - The accounts of the Trust are expressed in terms of the SDR. - The currency value of the SDR is determined by the IMF each day by summing the values in U.S. dollars, based on market exchange rates, of a basket of five currencies. - The IMF reviews the SDR valuation basket every five years. The SDR valuation basket was last reviewed in financial year 1996. - The accounts of the Trust are maintained on the accrual basis; income is recognized as it is earned, and expenses are recorded as they are incurred. ### Contributions and transfers (ESAF-HIPC Trust Account) - At April 30, 1998, four contributions amounting to SDR 34.2 million had been received: - SDR 2.3 million from Finland; - SDR 1.1 million from Nigeria; - SDR 27.2 million from Japan; - SDR 3.6 million from the Netherlands (earmarked for interim ESAF subsidy operations). - At April 30, 1997, one contribution amounting to SDR 2.3 million had been received from Finland (transferred from the Temporary Administered Account for ESAF-HIPC Operations, terminated on February 12, 1997). - Total transfers from the ESAF Trust Reserve Account through the Special Disbursement Account amount to SDR 61.0 million. - Of this amount, SDR 20.3 million has been transferred to the Trust from the ESAF Trust Reserve Account, through the Special Disbursement Account to provide grants or loans to eligible members. - The Executive Board decided to transfer an amount of SDR 40.7 million from the ESAF Trust Reserve Account, through the Special Disbursement Account, to the ESAF-HIPC Trust. ### Umbrella Account receipts - At April 30, 1998 a grant amounting to SDR 51.5 million had been received on behalf of Uganda. ### Deposits (ESAF-HIPC Trust Account) - At April 30, 1998, two deposits amounting to SDR 15.6 million had been received: - First deposit: SDR 14.6 million; bears interest at a rate of 2 percent a year; to be repaid in one installment five years after the date of deposit (made on April 30, 1997). - Second deposit: SDR 1 million; bears interest at a rate of !/2of 1 percent a year; to be repaid in one installment ten years after the date of the deposit (made on May 30, 1997). ### Disbursements - ESAF-HIPC Trust Account: - The proceeds of grants or loans made on behalf of an eligible member are paid in a single disbursement to the Umbrella Account for the benefit of that member. - Resources needed for interim ESAF subsidy operations will be drawn by the Trustee on an as-needed basis. - At April 30, 1998, a single disbursement of SDR 51.5 million had been made to the Umbrella Account for the benefit of Uganda. - Umbrella Account: - The resources of a subaccount, including any income from investment, shall be used to meet the member’s debt service payments on its existing debt to the IMF as they fall due in accordance with the schedule agreed upon by the Trustee and the member. - At April 30, 1998, no disbursements had been made from a subaccount within the Umbrella Account. --- ### Administered Accounts Established at the Request of Members ### Framework - At the request of members, the IMF has established special purpose accounts to administer contributed resources and to perform financial and technical services consistent with the purposes of the IMF. - The assets of each account and each subaccount are separate from the assets of all other accounts of, or administered by, the IMF and are not to be used to discharge liabilities or to meet losses incurred in the administration of other accounts. ### Selected administered accounts (balances and activity as at April 30, 1998 and 1997) - Administered Account Japan (In thousands of U.S. dollars): - Investments (Note 2): 1998 — 96,700; 1997 — 91,500 - Currency deposit: 1998 — 83; 1997 — 61 - Total Assets / Total Resources: 1998 — 96,783; 1997 — 91,561 - Balance, beginning of the year: 1998 — 91,561; 1997 — 71,102 - Contributions: 1998 — — ; 1997 — 16,495 - Income earned on investments (Note 2): 1998 — 5,222; 1997 — 3,964 - Balance, end of the year: 1998 — 96,783; 1997 — 91,561 - Administered Account for Selected Fund Activities—Japan (In thousands of U.S. dollars): - Investments (Note 2): 1998 — 20,634; 1997 — 14,996 - Total Assets / Total Resources: 1998 — 20,634; 1997 — 14,996 - Balance, beginning of the year: 1998 — 14,996; 1997 — 11,742 - Contributions: 1998 — 18,868; 1997 — 20,950 - Income earned on investments (Note 2): 1998 — 1,073; 1997 — 788 - Payments to beneficiaries: 1998 — 14,303; 1997 — 18,484 - Balance, end of the year: 1998 — 20,634; 1997 — 14,996 - Administered Account—Rwanda (In thousands of SDRs): - Investments (Note 2): 1998 — 3,389; 1997 — 3,029 - Interest receivable: 1998 — — ; 1997 — — - Total Assets / Total Resources: 1998 — 3,389; 1997 — 3,029 - Balance, beginning of the year: 1998 — 3,029; 1997 — 970 - Contributions: 1998 — 2,961; 1997 — 2,985 - Income earned on investments (Note 2): 1998 — 177; 1997 — 97 - Payments to beneficiaries: 1998 — 2,778; 1997 — 1,023 - Balance, end of the year: 1998 — 3,389; 1997 — 3,029 - Other subaccounts and administered accounts noted include: - Framework Administered Account for Technical Assistance Activities: - At April 30, 1998, cumulative contributions received amounted to $7.1 million, of which $4.0 million had been disbursed. - Subaccount for Japan Advanced Scholarship Program: - At April 30, 1998, cumulative contributions received amounted to $2.9 million, of which $1.3 million had been disbursed. - Rwanda—Macroeconomic Management Capacity Subaccount: - At April 30, 1998, cumulative contributions received amounted to $1.5 million, of which $1.3 million had been disbursed. - Australia—IMF Scholarship Program for Asia Subaccount: - At April 30, 1998, cumulative contributions received amounted to $0.5 million, of which $0.3 million had been disbursed. - Switzerland Technical Assistance Subaccount: - Established August 27, 1996 to finance technical assistance activities; status and balances reflected in the notes. *Source: _file10pdf - 1. Accounting Practices* ### APPENDIX IX ### APPENDIX IX ### Administered Accounts — French Technical Assistance Subaccount; Administered Account for Rwanda - French Technical Assistance Subaccount - Established on September 30, 1996 to cofinance costs of training in economic fields for nationals of certain member countries. - At April 30, 1998, cumulative contributions received amounted to $0.26 million, of which $0.13 million had been disbursed. - At April 30, 1997, cumulative contributions received amounted to $0.09 million, all of which had been disbursed. - Administered Account for Rwanda - Established on October 27, 1995 to administer resources contributed by the Netherlands, Sweden, and the United States to provide grants to Rwanda to reimburse the service charge and reduce to the equivalent of a rate of 0.5 percent a year the rate of quarterly charges payable by Rwanda on its use of IMF financial resources under the CCFF. - At April 30, 1998, cumulative contributions received by the account amounted to SDR 1.54 million, of which SDR 0.86 million had been disbursed. - At April 30, 1997, cumulative contributions received amounted to SDR 1.54 million, of which SDR 0.49 million had been disbursed. ### Accounting Practices (Administered Accounts and Rwanda) - General - Accounts are maintained on the accrual basis; income is recognized as it is earned, and expenses are recorded as they are incurred. - Administered Account Japan; Administered Account for Selected Fund Activities—Japan; Framework Administered Account for Technical Assistance Activities - Accounts are expressed in U.S. dollars. - All transactions and operations of these accounts are denominated in U.S. dollars, except OAP transactions which are denominated in Japanese yen or in other currencies as agreed. - Contributions denominated in other currencies are converted into U.S. dollars upon receipt. - Administered Account for Rwanda - Accounts are expressed in SDRs. - The currency value of the SDR is determined daily by summing the values in U.S. dollars, based on market exchange rates, of a basket of five currencies. - The SDR valuation basket was last reviewed in financial year 1996. The currencies in the basket and their amounts are: - U.S. dollar 0.582 - Deutsche mark 0.446 - Japanese yen 27.2 - French franc 0.813 - Pound sterling 0.105 - Transfers to and disbursements from the accounts are made in U.S. dollars or other freely usable currencies. Transactions and operations shall be denominated in SDRs. Contributions in other currencies are converted into SDRs upon receipt. ### Investments (Administered Accounts) - Assets of the accounts are invested pending disbursement and are valued at cost, which approximates market value. - Interest received on these assets varies and is market related. ### Accounts Termination (Administered Accounts) - Administered Account Japan - Can be terminated by the IMF or by Japan. Remaining resources at termination are returned promptly to Japan. - Administered Account for Selected Fund Activities—Japan - Can be terminated by the IMF or Japan. Remaining resources net of accrued liabilities under technical assistance projects or OAP are returned promptly to Japan. - Framework Administered Account for Technical Assistance Activities - The Framework Account or any subaccount may be terminated by the IMF at any time. Termination of the Framework Account terminates each subaccount. - A subaccount may be terminated by the contributor. Termination effective on receipt of notice. Balances net of continuing liabilities and commitments are returned promptly to the contributor. - Administered Account for Rwanda - Can be terminated at any time by the IMF or by unanimous agreement of the donor countries. - Will be terminated by the IMF when Rwanda’s financial obligations under the CCFF have been fully discharged or when the account resources have been exhausted, whichever is earlier. - Any balance at termination shall be transferred promptly to donor countries in proportion to their contribution, or to Rwanda if so instructed. ### Trust Fund — Purpose and Key Financials - Purpose - Established in 1976 to provide balance of payments assistance on concessional terms to eligible members. - IMF decided that upon completion of final loan disbursements the Trust Fund would be terminated as of April 30, 1981; post-termination activities confined to conclusion of affairs. Resources are separate from other IMF assets. - Accounting Practices - Accounts expressed in terms of the SDR. SDR valuation basket (last reviewed financial year 1996) and amounts: - U.S. dollar 0.582 - Deutsche mark 0.446 - Japanese yen 27.2 - French franc 0.813 - Pound sterling 0.105 - Accounts maintained on the accrual basis; income recognized as earned and expenses recorded as incurred, except interest income from members overdue by six months or more is deferred and recognized only when paid unless member has remained current in settling charges when due. - Residual administrative costs absorbed by the General Resources Account after Trust Fund termination. - Loans - Final Trust Fund loan installment was due on March 31, 1991. - Interest charged at the rate of 1/2 of 1 percent a year, although special charges have been levied on overdue payments since February 1986. - Beginning May 1, 1993, special charges on overdue obligations suspended for members more than six months overdue. - Overdue Obligations (April 30, 1998 and 1997) - Three members with obligations were six months or more overdue at both dates; interest income recognition and special charges from these members are deferred. - Total deferred income: SDR 26.0 million at April 30, 1998; SDR 25.5 million at April 30, 1997. - Overdue loan repayments and interest and special charges (in millions of SDRs): - Total overdue: 1998 89.8 ; 1997 90.4 - Overdue six months or more: 1998 89.8 ; 1997 90.4 - Overdue three years or more: 1998 89.8 ; 1997 90.4 - Type and duration of arrears at April 30, 1998 (in millions of SDRs): - Liberia — Loans 24.1 ; Interest and Special Charges 6.7 ; Total 30.8 ; Longest Overdue Obligation January 1985 - Somalia — Loans 6.5 ; Interest and Special Charges 1.3 ; Total 7.8 ; Longest Overdue Obligation July 1987 - Sudan — Loans 59.2 ; Interest and Special Charges 17.8 ; Total 77.0 ; Longest Overdue Obligation June 1985 - Total — Loans 89.8 ; Interest and Special Charges 25.8 ; Total 115.6 - Transfer of Resources - Resources held on April 30, 1981 or received thereafter used to pay interest and principal when due and to make transfers to the Special Disbursement Account. - Trust Fund Selected Financial Statement Figures (In thousands of SDRs) - Balance Sheets as at April 30, 1998 and 1997 - Loans receivable: 1998 89,784 ; 1997 90,444 - Interest and charges receivable and accrued: 1998 25,952 ; 1997 25,501 - Total Assets: 1998 115,736 ; 1997 115,945 - Trust resources: 1998 89,784 ; 1997 90,444 - Deferred income: 1998 25,952 ; 1997 25,501 - Total Resources and Deferred Income: 1998 115,736 ; 1997 115,945 - Income Statements for years ended April 30, 1998 and 1997 (In thousands of SDRs) - Interest and charges on loans: 1998 450 ; 1997 469 - Deferred income, net of settlements: 1998 (450) ; 1997 (300) - Net Income: 1998 — ; 1997 169 - Statements of Changes in Resources for years ended April 30, 1998 and 1997 (In thousands of SDRs) - Balance, beginning of year: 1998 90,444 ; 1997 95,135 - Net Income: 1998 — ; 1997 169 - Balance before transfers to the Special Disbursement Account: 1998 90,444 ; 1997 95,304 - Transfers to the Special Disbursement Account: 1998 (660) ; 1997 (4,860) - Balance, end of year: 1998 89,784 ; 1997 90,444 ### Supplementary Financing Facility Subsidy Account — Purpose and Key Financials - Purpose - Established in December 1980 to assist low-income developing country members to meet the cost of using resources made available through the IMF’s Supplementary Financing Facility and under the policy on exceptional use. - All repurchases scheduled for completion by January 31, 1991; final subsidy payments approved July 1991. - Two members (Liberia and Sudan) overdue in payment of charges remain ineligible to receive previously approved subsidy payments until overdue charges are settled; account remains in operation retaining amounts for payment to these members. - Resources are separate from other IMF accounts. - Accounting Practices - Accounts expressed in SDRs. SDR valuation basket (last reviewed financial year 1996) and amounts: - U.S. dollar 0.582 - Deutsche mark 0.446 - Japanese yen 27.2 - French franc 0.813 - Pound sterling 0.105 - Accounts maintained on the accrual basis; income recognized as earned and expenses recorded as incurred. - Deposits - Assets held as interest-earning time deposits denominated in SDRs pending disbursement. - Transfer of Resources - Resources in excess of remaining subsidy payments to be transferred to the Special Disbursement Account. - At April 30, 1998 and 1997, subsidy payments totaling SDR 2.2 million had not been made to Liberia and Sudan and were being held pending payment of overdue charges by these members. - Supplementary Financing Facility Subsidy Account Selected Financial Statement Figures (In thousands of SDRs) - Balance Sheets as at April 30, 1998 and 1997 - Deposits: 1998 2,381 ; 1997 2,286 - Interest receivable: 1998 25 ; 1997 22 - Total Assets: 1998 2,406 ; 1997 2,308 - Total Resources: 1998 2,406 ; 1997 2,308 - Income Statements and Changes in Resources for years ended April 30, 1998 and 1997 (In thousands of SDRs) - Balance, beginning of year: 1998 2,308 ; 1997 2,395 - Investment income: 1998 98 ; 1997 92 - Balance before transfers: 1998 2,406 ; 1997 2,487 - Transfers to the Special Disbursement Account: 1998 — ; 1997 (179) - Balance, end of year: 1998 2,406 ; 1997 2,308 ### Retired Staff Benefits Investment Account (RSBIA) — Purpose and Key Financials - Purpose - Established to hold, administer, and invest resources contributed by the IMF for meeting postretirement medical and life insurance benefits to eligible retirees and other beneficiaries. - Accumulates resources to finance benefits to current and future retirees; assets consist of IMF contributions and income earned thereon; assets are within sole ownership of the IMF to be used to meet claims of retirees and administrative costs of the RSBIA. - Cumulative contributions received by the RSBIA amounted to $140.1 million at April 30, 1998 ($127.5 million at April 30, 1997). - The portion of cumulative past-service cost charged to income in the General Resources Account is fully funded. - Assets kept separate from other IMF accounts. - Selected Financial Statement Figures (In thousands of U.S. dollars) - Balance Sheets as at April 30, 1998 and 1997 - Investments — Cash equivalents: 1998 29,495 ; 1997 32,010 - Investments — Other: 1998 144,878 ; 1997 115,239 - Total Investments: 1998 174,373 ; 1997 147,249 - Interest and other receivables: 1998 1,931 ; 1997 1,171 - Total Assets: 1998 176,304 ; 1997 148,420 - Accounts payable: 1998 — ; 1997 3,572 - Total Resources: 1998 176,304 ; 1997 144,848 - Total Resources and Liabilities: 1998 176,304 ; 1997 148,420 - Income Statements and Changes in Resources for years ended April 30, 1998 and 1997 (In thousands of U.S. dollars) - Balance, beginning of year: 1998 144,848 ; 1997 122,310 - Contributions received: 1998 12,600 ; 1997 12,100 - Income earned on investments: 1998 7,189 ; 1997 6,547 - Net gain in current value of investments: 1998 11,667 ; 1997 3,891 - Total income: 1998 18,856 ; 1997 10,438 - Balance, end of year: 1998 176,304 ; 1997 144,848 *Source: APPENDIX IX — financial statements and notes as presented in the provided content.* ### 1. Accounting Practices ### 1. Accounting Practices ### Unit of Account and Basis of Accounting - The RSBIA is expressed in U.S. dollars. All transactions and operations of the RSBIA, including the transfers to and by the RSBIA, are denominated in U.S. dollars. - The RSBIA is maintained on the accrual basis; income is recognized as it is earned, and expenses are recorded as they are incurred. - The financial statements of the Staff Retirement Plan are prepared on the accrual basis; income is recognized as it is earned, and expenses are recorded as they are incurred. ### Investments (RSBIA) - Investment policy: invests in equity securities, debt securities, short-term investments, and real estate. - Valuation rules: - Securities listed on stock exchanges: last reported market sales price on the last business day of the accounting period. - Over-the-counter securities: bid price on the last business day of the accounting period. - Purchases and sales valued on the trade date basis. - Net gain in current value of investments comprises: - Gains and losses realized during the year from sale of investments. - Unrealized appreciation and depreciation of market value. - Valuation differences for investments denominated in currencies other than the U.S. dollar due to exchange rate changes. - RSBIA investments at market values (In millions of U.S. dollars): - Equity securities: 63.3 (1998); 52.4 (1997) - Debt securities: 62.0 (1998); 62.7 (1997) - Short-term investments: 29.6 (1998); 32.2 (1997) - Real estate: 20.6 (1998); 1.1 (1997) - Total: 175.5 (1998); 148.4 (1997) - Derivatives and interest-rate risk management: - Commitments in fixed income futures contracts to minimize interest rate risk. - At April 30, 1998 the notional value of these derivatives amounted to $11.1 million and the unrealized gain was less than $0.1 million. ### Actuarial Valuation (RSBIA / IMF) - Eligible retirees may elect to continue life insurance and medical coverage; cost of these benefits is actuarially determined based on data in effect at the beginning of the year. - IMF’s actuarially determined cost: $183.2 million at April 30, 1998 ($180.1 million at April 30, 1997). - Transfers to RSBIA (amounts transferred from General Resources Account, net of return on investments): - $12.6 million transferred to the RSBIA during the year ended April 30, 1998. - $12.1 million transferred during the year ended April 30, 1997. - It is expected that the RSBIA will be a net recipient of resources until the unfunded cost is fully amortized and its assets meet the cost of benefits to retirees. ### Account Termination (RSBIA) - The RSBIA can be terminated by the IMF at any time. - After meeting any existing obligations, remaining resources in the RSBIA are to be transferred to the General Resources Account of the IMF. ### Audit and Audit Opinion (Staff Retirement Plan) - Audit performed in accordance with Section 20(b) of the By-Laws of the International Monetary Fund and generally accepted auditing standards. - Audit included reviews of accounting and internal control systems and tests of accounting records, and evaluation of outside accounting firm and IMF Office of Internal Audit and Inspection work. - Audit opinion: financial statements of the Staff Retirement Plan have been prepared in accordance with generally accepted accounting principles applied on a basis consistent with the preceding year and give a true and fair view as at April 30, 1998 and for the year then ended. ### Key Financial Figures — Staff Retirement Plan (In thousands of U.S. dollars) - Accumulated Plan Benefits (actuarial present value): - Retired participants: 635,000 (1998); 597,400 (1997) - Active participants: 595,800 (1998); 516,800 (1997) - Nonvested benefits: 694,700 (1998); 651,400 (1997) - Total actuarial present value of accumulated Plan benefits: 1,925,500 (1998); 1,765,600 (1997) - Assets Available for Benefits: - Investments (Note 3): 3,075,069 (1998); 2,613,477 (1997) - Receivables (accrued interest and dividends; contributions; other): 14,840 (1998); 14,822 (1997) - Total assets: 3,089,909 (1998); 2,628,299 (1997) - Liabilities: - Accounts payable: 5,428 (1998); 4,278 (1997) - Deferred contributions (Note 2): 14,729 (1998); — (1997) - Total liabilities: 20,157 (1998); 4,278 (1997) - Net assets available for benefits: 3,069,752 (1998); 2,624,021 (1997) - Excess of net assets available for benefits over actuarial present value of accumulated Plan benefits: 1,144,252 (1998); 858,421 (1997) ### Changes in Accumulated Plan Benefits (In thousands of U.S. dollars) - Actuarial present value of accumulated Plan benefits, beginning of year: 1,765,600 (1998); 1,644,400 (1997) - Increase (decrease) during the year: - Benefits accumulated (Note 1): 67,300 (1998); 36,838 (1997) - Interest accrued: 147,800 (1998); 137,600 (1997) - Benefits paid: (55,200) (1998); (53,238) (1997) - Net increase: 159,900 (1998); 121,200 (1997) - Actuarial present value of accumulated Plan benefits, end of year: 1,925,500 (1998); 1,765,600 (1997) ### Changes in Net Assets Available for Benefits (In thousands of U.S. dollars) - Investment income: - Net realized/unrealized gain on investments (Note 3): 404,944 (1998); 129,507 (1997) - Interest and dividends: 87,296 (1998); 84,769 (1997) - Total investment income: 492,240 (1998); 214,276 (1997) - Contributions (Note 2): - International Monetary Fund: 151 (1998); 29,548 (1997) - Participants: 20,970 (1998); 19,759 (1997) - Participants restored to service: 133 (1998); 275 (1997) - Net transfers (to) from retirement plans of other international organizations: (209) (1998); 343 (1997) - Total contributions and transfers: 21,045 (1998); 49,925 (1997) - Total additions: 513,285 (1998); 264,201 (1997) - Benefits and payments: - Pension: 44,543 (1998); 41,399 (1997) - Commutation: 5,045 (1998); 8,183 (1997) - Withdrawal: 3,859 (1998); 3,383 (1997) - Death: 406 (1998); 273 (1997) - Total benefits: 53,853 (1998); 53,238 (1997) - Investment fees: 13,701 (1998); 12,617 (1997) - Total payments: 67,554 (1998); 65,855 (1997) - Net additions: 445,731 (1998); 198,346 (1997) - Net assets available for benefits: - Beginning of year: 2,624,021 (1998); 2,425,675 (1997) - End of year: 3,069,752 (1998); 2,624,021 (1997) ### Description of the Plan — Key Rules and Parameters - Plan type: defined-benefit pension plan covering nearly all staff members of the International Monetary Fund. - Ownership: All assets and income of the Plan are the property of the Employer and are held and administered by it separately from all its other property and assets and are to be used solely for the benefit of participants, retired participants, and their beneficiaries. - Pension eligibility and calculation: - Normal retirement age: 62; unreduced pension begins at normal retirement age. - Accrual rates: - Benefits earned before May 1, 1990: 2 percent of gross remuneration per year of service. - Benefits earned after May 1, 1990: 2.2 percent for the first 25 years of service and 1.8 percent for the next 10 years of service. - Participants hired before May 1, 1990: pensions based on a prorated combination of old and new accrual rates. - Early/unreduced retirement rules: - Participants between ages 50 and 55 may retire with a reduced pension if age plus years of service total at least 75. - Participants aged 55 and older may retire with an unreduced pension if age plus years of service equals 85 or more. - Cost of Living Adjustment: - Pensions are augmented by a pension supplement equal to the increase in the cost of living for the financial year of the country of permanent residence. - If the cost of living increase exceeds 3 percent, the Employer may reduce prospectively the additional supplement to not less than 3 percent. - Deferred pensions become subject to cost of living adjustments when the sum of a former participant’s age and years of service is at least 50. - Withdrawal benefit: - Participant with at least three years of eligible service may elect a withdrawal benefit or a deferred pension (commencing at age 55 or age 50 if age plus years of service add to at least 75). - Commutation: - Pensioner entitled to a normal, early, or deferred pension may commute up to one-third of the pension for a lump-sum amount at retirement. - Disability pensioners may commute one-third of the early retirement pension that would otherwise apply. - Disability, death, and survivor benefits: provided under the Plan. - Currency of pension payments: participant may elect payment in the currency of permanent residence or a combination of U.S. dollar and local currency. - Contributions: - Participant contribution rate: presently 7 percent of the participant’s gross remuneration. - Employer: meets certain administrative costs and contributes any additional amount not provided by participants to pay Plan costs and expenses not otherwise covered. - Administrative costs met by the Employer in financial year 1998: approximately $0.09 million ($0.12 million in 1997). - Plan termination: - On termination by the Employer, Plan assets shall be used to satisfy all liabilities to participants, retired participants and their beneficiaries, and all other liabilities of the Plan; any remaining balance shall be returned to the Employer. ### Valuation of Investments, Trading and Risk-Management Instruments (Staff Retirement Plan) - Investments recorded at market value: - Securities listed on stock exchanges: last reported market sales price on last business day. - Over-the-counter securities: bid price on last business day. - Real estate: last reported appraised value. - Derivatives: valued at fair value, equivalent to unrealized gain or loss. - Trading instruments: net gain in market value represents realized gains/losses, unrealized appreciation/depreciation, and valuation differences from exchange rate changes for non-U.S. dollar investments. - Risk-management instruments: - Net fair value of forward contracts, futures contracts, swaps, and options is included in net assets available for Plan benefits; changes in value are recognized currently. - For swap derivatives, options, and forward and futures contracts, contract or notional amounts do not represent exposure to credit loss; potential credit loss approximates the unrealized gain on the open contract. *Source: _file10pdf - 1. Accounting Practices (financial statements and notes as at April 30, 1998 and 1997)* ### 2. Actuarial Valuation and Funding Policy ### 2. Actuarial Valuation and Funding Policy ### Funding method and Employer contribution rates - The valuation uses the “closed method”: the Plan is assumed to continue to exist and active participants will continue to earn pension benefits until withdrawal, disability, death, or retirement, but no new participant will join the Plan. - Funding by the Employer is based on the “aggregate cost method,” which expresses liabilities and contribution requirements as single consolidated figures including provision for experience gains and losses and cost of living increases. - Required Employer contributions are expressed as a percentage to be applied to the gross remuneration of participants and are based on the valuation completed 12 months previously. - Employer contribution rates reported: - For the financial year that began on May 1, 1995: 14.25 percent. - For the year that began on May 1, 1996: 10.56 percent. - For the year beginning May 1, 1997: 5 percent of pensionable gross remuneration. - In one presentation, of this 5 percent: 0.05percent represents a current contribution (equal to $0.15million) and 4.95 percent represents a deferred contribution (equal to $14.7 million). The deferred contribution represents the Employer’s prepayment of future contributions. - In another presentation later in the text, of this 5 percent: 0.05 percent represents a current contribution and 4.95 percent represents a deferred contribution (equal to $0.06 million). The deferred contribution represents the Employer’s prepayment of future contributions. ### Actuarial assumptions used to determine Employer contributions - Life expectancy based on the 1984 and 1982 United Nations mortality tables for men and women, respectively. - Withdrawal or retirement assumptions: a certain percentage of staff at each age, differentiated by gender. - Average rate of return on investments: 8.5 percent a year. - Discount rate: 8.5 percent. - Average inflation rate: 5 percent a year. - Salary increase percentages that vary with age. - Valuation of assets using a five-year moving-average method. ### Valuation results (April 30, 1997 and 1996) - 1997 / 1996 — In millions of U.S. dollars: - Present value of benefits payable: 2,699 / 2,540 - Less: Assets for valuation purposes: 2,580 / 2,310 - Required future funding: 119 / 230 - Less: Present value of prospective contributions from participants (7 percent of gross remuneration): 211 / 203 - Present value of future funding required from the Employer: (92) / 27 *Source: _file10pdf - 2. Actuarial Valuation and Funding Policy* --- _Source: https://www.imf.org/-/media/websites/imf/imported-flagship-issues/external/pubs/ft/ar/98/pdf/_file10pdf.pdf_