## Report on the Incidence of Longer-Term Program Engagement (072806)

## Source details

**Canonical URL:** [Report on the Incidence of Longer-Term Program Engagement (072806)](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2006/_072806.pdf)

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### Background and mandate
- Semi-annual reporting on the incidence of Longer-Term Program Engagement (LTPE) was requested by the Executive Board following the Task Force on Prolonged Use of Fund Resources. This is the sixth such report and provides information through June 2006.
- The Executive Board concluded a review of Ex Post Assessments (EPAs) and LTPE-related policy on May 15, 2006.

### Changes to the LTPE definition (May 15, 2006)
- All members are now considered as having LTPE if they have spent at least seven out of the last ten years under programs supported by Fund resources. Exact phrasing preserved: "at least seven out of the last ten years under programs supported by Fund resources."
- Time spent under precautionary arrangements that remain undrawn does not count toward LTPE.
- Consequences of the changes:
  - "17 PRGF-eligible countries are no longer classified as having LTPE."
  - "This change removed five countries from the list of members with LTPE." (referring to the precautionary-arrangements adjustment)

### Incidence of LTPE as of end-June 2006
- "Thirty-two countries, of which 29 are PRGF-eligible, met the new LTPE definition at end-June 2006."
- By end-June 2006, EPAs had been discussed at the Board for 26 of the members that met the new LTPE definition.
- Countries newly removed from LTPE classification on May 15, 2006:
  - "PRGF-eligible Members" list includes: Bangladesh; Burundi; Congo, Republic Of; Nepal; Sierra Leone; Lesotho; Mauritania; Mongolia; Sri Lanka; Togo; Vietnam; Cambodia; Ethiopia; Gambia; Guinea-Bissau; Lao People D.R.; Guinea (arranged in two columns in source—preserved content).
  - "Non-PRGF-eligible Members" list includes: Bulgaria; Croatia; Peru; Romania; Macedonia; Macedonia appears in source as "Macedonia" and "Macedonia, FYR" elsewhere.
- Table 2 listing members with LTPE (as of June 30, 2006) identifies PRGF-eligible and non-PRGF-eligible members and flags members for which an EPA had not been considered by the Board at end-June 2006 with a "4/". Notable counts and flags preserved:
  - PRGF-eligible Members meeting LTPE: Albania 3/; Armenia; Benin; Burkina Faso 4/; Cameroon; Chad; Georgia; Ghana 4/; Guyana 4/; Honduras; Kenya 4/; Kyrgyz Republic; Malawi; Mali; Moldova; Mozambique; Nicaragua 4/; Niger; Rwanda; Tanzania; Zambia; plus other listed PRGF-eligible members.
  - Non-PRGF-eligible Members meeting LTPE: Bolivia; Azerbaijan; Guinea; Madagascar; Pakistan; Tajikistan; Senegal; Uganda; Uruguay; Jordan; Kyrgyz entries as in source.

### Ex Post Assessments (EPAs) — completed and tentative
- EPAs considered by the Board (selected chronology preserved exactly as in source):
  - 2003: Mozambique (Article IV discussion 10-Dec-03 SM/03/375); Mali (Article IV discussion 15-Dec-03 SM/03/380).
  - 2004: Armenia (Article IV discussion 1-Dec-04 SM/04/386); Benin (Article IV discussion 6-Oct-04 SM/04/313); Bulgaria (Article IV discussion 14-Jun-04 SM/04/169); Cambodia (Article IV discussion 13-Sep-04 SM/04/275); Chad (Article IV discussion 19-Mar-04 SM/04/147); Ethiopia 1/ (Article IV discussion 13-Sep-04 SM/04/291); Georgia (Ex-post assessment 21-Jan-04 SM/03/407); Guinea (Ex-post assessment 27-Aug-04 SM/04/220); Guinea-Bissau (Article IV discussion 19-Nov-04 SM/04/360); Honduras (Article IV discussion 18-Feb-04 SM/04/24); Kazakhstan (Request for PRGF arrangement SM/04/206); Kyrgyz Rep. (Article IV discussion 19-Nov-04 SM/04/337); Lesotho (6th Review under PRGF arrangement 10-Sep-04 SM/04/259); Macedonia, FYR (2nd Review under SBA 4-Aug-04 SM/04/263); Malawi (Article IV discussion 29-Oct-04 SM/04/325); Moldova (Article IV discussion 26-Jan-04 SM/04/03); Niger (Article IV discussion 28-Jun-04 SM/04/188); Peru (Article IV discussion 23-Feb-04 SM/04/37); Romania (Ex-post assessment 12-Apr-04 SM/04/101); Vietnam (Article IV discussion 22-Nov-04 SM/04/376); Zambia (Ex-post assessment 7-Apr-04 SM/04/97).
  - 2005: Albania (Article IV discussion 28-Feb-05 SM/05/46); Azerbaijan (5th Review under PRGF arrangement 24-Jun-05 SM/05/214); Bolivia (Ex-post assessment 8-Apr-05 SM/05/99); Cameroon (Article IV discussion 22-Apr-05 SM/05/113); Gambia (Article IV discussion 18-Jul-05 SM/05/234); Jordan (Article IV discussion 21-Nov-05 SM/05/395); Mongolia (Article IV discussion 21-Sep-05 SM/05/344); Pakistan (Article IV discussion 2-Nov-05 SM/05/367); Republic of Madagascar (Article IV discussion 1-Jun-05 SM/05/159); Sierra Leone (6th Review under PRGF arrangement 1-Jun-05 SM/05/158); Uganda (5th Review under PRGF arrangement 8-Jul-05 SM/05/223); Ukraine (Article IV discussion 9-Nov-05 SM/05/379); Uruguay (Ex-post assessment 18-Mar-05 SM/05/84).
  - 2006: Rwanda (Ex-post assessment 25-Jan-06 SM/06/5); Tajikistan (6th Review under PRGF arrangement 6-Feb-06 SM/06/22); Senegal (Ex-post assessment 1-Mar-06 SM/06/56); Lao PDR (Article IV discussion 8-Mar-06 SM/06/80); Tanzania (5th Review under PRGF arrangement 7-Apr-06 SM/06/117); Togo (Article IV discussion 8-May-06 SM/06/149).
- EPAs expected or tentatively expected for July–December 2006 (as listed in Table 4):
  - Argentina 2/
  - Burkina Faso
  - Guyana
  - Nicaragua 3/
  - Notes from source:
    - "EPA expected to be discussed in the context of Article IV consultations or combined Article IV/program review discussions unless otherwise indicated."
    - "EPA expected to be discussed in the context of Article IV consultation, together with an ex post evaluation of program engagement under the exceptional access policy." (Argentina footnote)
    - "EPA expected to coincide with the final review under the program, but depending on circumstances may need to be done on a stand-alone basis." (Nicaragua footnote)

### EPA scheduling, recent developments, and near-term outlook
- Of the six EPAs that were expected for the period March–September 2006 in the previous (fifth) semi-annual report:
  - EPAs for "Tanzania and Togo were considered by the Board during the second quarter of 2006."
  - "No EPA is now expected for Mauritania because this member no longer qualifies as having LTPE in light of the revised definition of LTPE for PRGF-eligible members."
  - "The EPAs for Argentina and Burkina Faso are expected to be completed during the third quarter of 2006."
  - "The EPA for Guyana is now expected to be discussed by the Board during the fourth quarter, and an EPA discussion is also tentatively expected for Nicaragua in the second half of 2006."
- Timing constraint introduced in the May 15, 2006 review:
  - "A minimum five-year interval between EPAs for a single members was introduced," implying "the earliest any of these countries could be required to have a second EPA would be late 2008."
- Outlook for 2007 EPA workload:
  - The number of EPAs to be considered at the Board in 2007 is expected to be "particularly low" for two reasons:
    - Of the 32 members meeting the LTPE definition at end-June 2006, "only Ghana and Kenya are not expected to have had an EPA considered at the Board by the end of 2006."
    - Among current users of Fund resources that did not meet the LTPE definition at end-June 2006, "only Turkey appears likely to met the LTPE definition in 2007." Turkey’s current arrangement "expires in 2008."

*Prepared by the Policy Development and Review Department; Approved by Mark Allen; July 28, 2006.*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2006/_072806.pdf_