## _081610

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### Executive Summary — Overview and key statistics
- Total arrears to the Fund declined by SDR 17.5 million to SDR 1,309.5 million (end-June 2010).
- Protracted arrears remain with three members: Somalia, Sudan, and Zimbabwe.
  - Overdue Financial Obligations by member (as of end-June 2010, in millions of SDRs): Somalia 230; Sudan 990; Zimbabwe 89.
- Distribution of arrears (end-June 2010):
  - Total arrears: SDR 1,309.5 million (end-June 2010) vs SDR 1,326.9 million (end-June 2009).
  - Principal: 447.3 (end-June 2009) -> 439.6 (end-June 2010).
    - GRA principal: 299.0 -> 292.1.
    - PRGT principal: 73.8 -> 72.9.
    - Other principal: 74.5 -> 74.5.
  - Interest: 879.6 -> 869.9.
    - GRA interest: 826.0 -> 829.8.
    - PRGT interest: 15.6 -> 15.9.
    - Other interest: 38.0 -> 24.2.
- Account distribution:
  - 86 percent of arrears were to the General Resources Account (GRA); Trust Fund 6.8 percent, PRGT 6.8 percent, SAF less than 1 percent.
- Burden-shared deferred charges to the GRA: SDR 696 million (increase of SDR 3.7 million from a year ago).
- Overdue currency valuation adjustments:
  - 8 members: SDR 1.3 billion (end-June 2010) vs SDR 1.2 billion (end-June 2009).
  - Protracted arrears cases accounted for SDR 665.5 million, or 50 percent of the total.
- Arrears of protracted cases to other IFIs (as of end-June 2010, in millions of SDRs):
  - Fund: 1,309.5; World Bank: 1,058.8; AfDB: 553.4; Total: 2,921.6.
  - Somalia: Fund 230.3; World Bank 145.5; AfDB 53.6; Total 429.5.
  - Sudan: Fund 990.4; World Bank 394.4; AfDB 170.3; Total 1,555.0.
  - Zimbabwe: Fund 88.8; World Bank 518.9; AfDB 329.4; Total 937.2.
- Short-term arrears:
  - Six members (six instances) incurred short-term arrears (less than six months) in the 12-month period to end-June 2010.
  - Four instances occurred in the first half of 2010 and were settled before formal Managing Director communication under remedial timetables.

### Protracted arrears cases — Somalia, Sudan, Zimbabwe
- Somalia
  - Executive Board review postponed since October 1990 due to absence of a government recognized by the Fund and lack of official economic/financial information.
  - In context of the general SDR allocation in August 2009, Somalia’s overdue obligations to the SDR Department of about SDR 14.2 million were fully settled.
  - Remaining arrears to the Fund are to the GRA, Trust Fund and SAF.
  - Declaration of ineligibility to use the Fund’s general resources remains in place.
- Sudan
  - Continued cooperation on policies and payments amid sharp decline in oil receipts.
  - Payments to the Fund remained consistent with authorities’ commitments and exceeded new obligations falling due, but were reduced to US$11 million in 2009 from US$50 million in 2008.
  - So far in 2010, Sudan made four payments totaling US$3.2 million (equivalent to SDR 2.1 million) compared to new obligations falling due of SDR 0.2 million and its SMP commitment to make payments of at least US$10 million in 2010.
  - Executive Board review in June 2010 urged prompt actions to safeguard macroeconomic stability; no further remedial action taken and Board to review again within six months.
- Zimbabwe
  - Cooperation on policies weakened significantly; cooperation on payments remained poor.
  - Payments so far in 2010: three payments totaling US$1.3 million (equivalent to SDR 0.85 million), exceeding new obligations falling due and the authorities’ commitment to quarterly payments of about US$100,000.
  - Payments in 2009 amounted to US$0.2 million (about SDR 0.1 million).
  - Executive Board restored Zimbabwe’s voting and related rights and terminated ineligibility to use the Fund’s general resources on February 19, 2010.
  - Executive Board review of PRGT arrears in May 2010: Directors urged corrective fiscal and governance actions, and added macroeconomic statistics to targeted areas where technical assistance was lifted in May 2009; remedial measures remain in place and Board to review within six months.

### Fund actions, strategy assessment, and proposals
- Strategy elements: prevention, intensified collaboration (including the rights approach), and remedial measures.
  - Preventive element has generally worked well in avoiding new arrears or prompting quick clearance.
  - Timetables for remedial measures for the General and SDR Departments and the PRGT are set out in Annexes I and II.
- Rights approach
  - It is proposed that the availability of the rights approach be extended by another year, to end-August 2011.
  - The rights approach remains an important option for arrears clearance for the remaining two eligible members (Somalia and Sudan).
- Flexibility for catastrophe-hit members
  - Proposed: apply flexibility under the policy on the de-escalation of remedial measures when assessing cooperation on payments by members in protracted arrears that are hit by a Qualifying Catastrophic Disaster as defined under the PCDR Trust.
  - A decision is proposed to this effect.
- No other changes are proposed to the Fund’s strategy on arrears; remedial measures are in place against the three protracted arrears cases.

### Rights approach — status, operational requirements, and proposal
- History and eligibility:
  - Initiated in 1990 and used to clear arrears of Peru, Sierra Leone, and Zambia in the 1990s.
  - Eligibility restricted to the eleven members with protracted arrears at end-1989; only Somalia and Sudan remain eligible.
  - Use is not required but "could provide a useful approach for arrears clearance in light of country-specific circumstances."
  - Proposed extension of availability to end-August 2011.
- Operational requirements under the rights approach:
  - An eligible member must establish a track record of cooperation on policies with the Fund by undertaking an economic program with conditionality equivalent to that of upper credit tranche Fund arrangements.
  - The member is also expected to make payments to the Fund (and the World Bank) that, at a minimum, are sufficient to meet new obligations falling due.
  - By establishing such a track record, the member accumulates “rights” to future drawings of Fund resources following the clearance of its arrears.
  - At the end of the rights accumulation program, bilateral creditors would provide a bridge loan to clear the member’s arrears to the Fund, which would be followed by the member’s access to new Fund financing.

### Flexibility on payments after catastrophes (de-escalation policy and PCDR Trust)
- PCDR Trust context:
  - Provides debt relief to members on eligible debt to help meet exceptional balance of payments needs resulting from qualifying catastrophic disasters and complements the Fund’s concessional financing through the PRGT.
  - PCDR support limited to the poorest PRGT-eligible members that have suffered a catastrophic disaster with an impact that exceeds certain pre-defined thresholds of economic damage and population affected.
  - Eligible debt includes, inter alia, all outstanding debt to the Fund (other than debt scheduled to be repaid under other debt relief trusts) as of the date of the catastrophe in respect of which the member had made regular scheduled debt service payments (interest and amortization) before the disaster—debt in protracted arrears to the Fund is therefore ineligible.
- Proposed flexibility under the de-escalation policy:
  - Apply flexibility when assessing cooperation on payments by countries in protracted arrears hit by a catastrophe.
  - The Fund would exercise flexibility in accepting significantly reduced payments particularly during the first two years following a Qualifying Catastrophic Disaster as defined under the PCDR Trust.
  - Rationale: the de-escalation policy generally expects payments at least equal to newly maturing obligations for a sustained period; similar case-by-case flexibility already allowed in post-conflict cases is proposed for post-catastrophe cases.

### Key statistics and selected country arrears tables (selected figures)
- Countries with protracted overdue financial obligations to the Fund (As of end-June 2010), total indebtedness and overdue (SDR millions):
  - Somalia: Total Indebtedness 230.3; Of which Overdue Principal 112.0; Interest 118.3; Total 230.3
  - Sudan: Total Indebtedness 990.4; Of which Overdue Principal 254.7; Interest 735.7; Total 990.4
  - Zimbabwe: Total Indebtedness 88.8; Of which Overdue Principal 72.9; Interest 15.9; Total 88.8
  - Total (Somalia + Sudan + Zimbabwe): 1,309.5; Of which Overdue Principal 439.6; Interest 869.9; Total 1,309.5
- Deferred GRA charges of countries with protracted arrears, FY 2006–2011 (In millions of SDRs, as of June 30, 2010) — balances at selected dates:
  - Somalia: Balance Apr. 30, 2006 102.9; Balance Apr. 30, 2007 108.0; Balance Apr. 30, 2008 111.6; Balance Apr. 30, 2009 115.0; Balance Apr. 30, 2010 116.3; Balance Jun. 30, 2010 116.6
  - Sudan: Balance Apr. 30, 2006 678.1; Balance Apr. 30, 2007 693.0; Balance Apr. 30, 2008 703.0; Balance Apr. 30, 2009 710.8; Balance Apr. 30, 2010 713.5; Balance Jun. 30, 2010 714.1
  - Total (Somalia + Sudan + Zimbabwe entries): Total Apr. 30, 2006 781.0; Total Apr. 30, 2007 801.0; Total Apr. 30, 2008 814.6; Total Apr. 30, 2009 825.8; Total Apr. 30, 2010 829.8; Total Jun. 30, 2010 830.7
- Countries with overdue currency valuation adjustments (In millions of SDRs; as of end-June 2010):
  - Angola 276.6
  - Congo, Dem. Rep. of 307.2
  - Marshall Islands 0.2
  - Micronesia 0.2
  - Palau 0.3
  - Somalia 135.8 (Adjustments outstanding since the end of FY 1991)
  - Sudan 529.7 (Adjustments outstanding since the end of FY 1996)
  - Suriname 74.8 (Adjustments outstanding since the end of FY 1999)
  - Total 1,324.8
- Financial obligations falling due and payments to the Fund by current protracted arrears cases, 2000–2010 (selected entries for Somalia and Sudan, in millions of SDRs):
  - Obligations falling due (Somalia / Sudan / Total):
    - 2000: 5.9 / 25.4 / 61.4 / 92.7
    - 2005: 4.1 / 12.8 / 10.8 / 27.7
    - Jan.–Jun. 2010: 0.7 / 1.4 / 0.2 / 2.3
  - Payments made to the Fund (Somalia / Sudan / Total):
    - 2000: -- / 43.3 / 61.4 / 104.7
    - 2005: -- / 20.5 / 111.7 / 132.2
    - Jan.–Jun. 2010: -- / 2.1 / 0.9 / 3.0
  - Payments made as percent of obligations falling due (Somalia / Sudan / Total):
    - 2000: -- / 170.8 / 100.0 / 113.0
    - 2005: -- / 160.3 / 1034.3 / 477.7
    - Jan.–Jun. 2010: -- / 147.4 / 476.4 / 129.8

### Timetables of remedial measures
- Annex I: GRA and SDR Department
  - Immediate: Staff sends a cable urging prompt payment; member not permitted any use of Fund resources nor any request placed before Executive Board until arrears cleared.
  - 2 weeks: Management sends communication to the Governor stressing seriousness and urging full and prompt settlement.
  - 1 month: Managing Director notifies Executive Board that an obligation is overdue.
  - 6 weeks: Managing Director notifies the member that a complaint will be issued unless arrears settled; may recommend communications to Fund Governors.
  - 2 months: A complaint is issued by the Managing Director to the Executive Board.
  - 3 months: A brief factual statement noting the existence and amount of arrears is posted on Fund’s external website; complaint is given substantive consideration by the Executive Board; Board usually decides to limit use of general resources and, if overdue SDR obligations, suspend right to use SDRs; press release issued.
  - 6–12 months: Executive Board will review its decision on limitation within three months, with possibility of a second review; a declaration of ineligibility will be considered to take effect not more than twelve months after the emergence of arrears.
  - Up to 15 months: A declaration of noncooperation will be considered within three months after dispatch of communications; upon declaration technical assistance will be suspended unless Board decides otherwise.
  - Up to 18 months: Decision on suspension of voting and representation rights considered within three months after declaration of noncooperation.
  - Up to 24 months: Procedure on compulsory withdrawal will be initiated within six months after the decision on suspension.
- Annex II: PRGT
  - Immediate: Staff sends a cable urging prompt payment; member’s access to Fund resources, including Trust resources, is suspended.
  - 2 weeks: Management sends communication to the Governor urging full and prompt settlement.
  - 1 month: Managing Director notifies the Executive Board that an obligation to the Trust is overdue.
  - 6 weeks: Managing Director notifies the member that a report will be issued to the Executive Board unless arrears settled; may recommend communications to Fund Governors.
  - 2 months: A report is issued by the Managing Director to the Executive Board requesting that the Board limit the member’s use of PRGT resources.
  - 3 months: Report is given substantive consideration by the Executive Board; a factual statement is posted on the member’s country-specific page indicating suspension of access to Trust resources; press release issued.
  - 6 months: Executive Board reviews its decision on limitation and may remove the member from the list of PRGT-eligible countries; press release issued upon removal or reinstatement.
  - 12 months: A declaration of noncooperation with the PRGT may be issued by the Executive Board depending on assessment of the member’s performance; upon declaration the Fund could decide to suspend provision of technical assistance; the Managing Director may also limit technical assistance earlier if judged not contributing adequately to arrears resolution.

*Source: Executive Summary and Finance Department text and tables (IMF), _081610, end-June 2010.*

### Executive Summary ......................................................................................................

### Executive Summary

### Overview and key statistics
- Total arrears to the Fund declined by SDR 17.5 million to SDR 1,309.5 million (end-June 2010).
- Protracted arrears remain with three members: Somalia, Sudan, and Zimbabwe.
  - Overdue Financial Obligations by member (as of end-June 2010, in millions of SDRs): Somalia 230; Sudan 990; Zimbabwe 89.
- Distribution of arrears (end-June 2010):
  - Total arrears: SDR 1,309.5 million (end-June 2010) vs SDR 1,326.9 million (end-June 2009).
  - Principal: 447.3 (end-June 2009) -> 439.6 (end-June 2010).
    - GRA principal: 299.0 -> 292.1.
    - PRGT principal: 73.8 -> 72.9.
    - Other principal: 74.5 -> 74.5.
  - Interest: 879.6 -> 869.9.
    - GRA interest: 826.0 -> 829.8.
    - PRGT interest: 15.6 -> 15.9.
    - Other interest: 38.0 -> 24.2.
- The majority (86 percent) of arrears were to the General Resources Account (GRA); the remainder: Trust Fund 6.8 percent, PRGT 6.8 percent, SAF less than 1 percent.
- Burden-shared deferred charges to the GRA: SDR 696 million (increase of SDR 3.7 million from a year ago).
- Overdue currency valuation adjustments:
  - 8 members: SDR 1.3 billion (end-June 2010) vs SDR 1.2 billion (end-June 2009).
  - Protracted arrears cases accounted for SDR 665.5 million, or 50 percent of the total.
- Arrears of protracted cases to other IFIs (as of end-June 2010, in millions of SDRs):
  - Fund: 1,309.5; World Bank: 1,058.8; AfDB: 553.4; Total: 2,921.6.
  - Somalia: Fund 230.3; World Bank 145.5; AfDB 53.6; Total 429.5.
  - Sudan: Fund 990.4; World Bank 394.4; AfDB 170.3; Total 1,555.0.
  - Zimbabwe: Fund 88.8; World Bank 518.9; AfDB 329.4; Total 937.2.
- Short-term arrears: six members (six instances) incurred short-term arrears (less than six months) in the 12-month period to end-June 2010; four instances occurred in the first half of 2010 and were settled before formal Managing Director communication under remedial timetables.

### Developments in the three protracted arrears cases
- Somalia
  - Executive Board review postponed since October 1990 due to absence of a government recognized by the Fund and lack of official economic/financial information.
  - In context of the general SDR allocation in August 2009, Somalia’s overdue obligations to the SDR Department of about SDR 14.2 million were fully settled.
  - Remaining arrears to the Fund are to the GRA, Trust Fund and SAF.
  - Declaration of ineligibility to use the Fund’s general resources remains in place.
- Sudan
  - Continued cooperation on policies and payments amid sharp decline in oil receipts.
  - Payments to the Fund remained consistent with authorities’ commitments and exceeded new obligations falling due, but were reduced to US$11 million in 2009 from US$50 million in 2008.
  - So far in 2010, Sudan made four payments totaling US$3.2 million (equivalent to SDR 2.1 million) compared to new obligations falling due of SDR 0.2 million and its SMP commitment to make payments of at least US$10 million in 2010.
  - Executive Board review in June 2010 urged prompt actions to safeguard macroeconomic stability; no further remedial action taken and Board to review again within six months.
- Zimbabwe
  - Cooperation on policies weakened significantly; cooperation on payments remained poor.
  - Payments so far in 2010: three payments totaling US$1.3 million (equivalent to SDR 0.85 million), exceeding new obligations falling due and the authorities’ commitment to quarterly payments of about US$100,000.
  - Payments in 2009 amounted to US$0.2 million (about SDR 0.1 million).
  - Executive Board restored Zimbabwe’s voting and related rights and terminated ineligibility to use the Fund’s general resources on February 19, 2010.
  - Executive Board review of PRGT arrears in May 2010: Directors urged corrective fiscal and governance actions, and added macroeconomic statistics to targeted areas where technical assistance was lifted in May 2009; remedial measures remain in place and Board to review within six months.

### Fund actions, strategy assessment, and proposals
- The Fund’s strengthened cooperative strategy on overdue financial obligations comprises three elements: prevention, intensified collaboration (including the rights approach), and remedial measures.
  - Preventive element has generally worked well in avoiding new arrears or prompting quick clearance.
  - Timetables for remedial measures for the General and SDR Departments and the PRGT are set out in Annexes I and II (as provided in the source).
- Rights approach
  - It is proposed that the availability of the rights approach be extended by another year, to end-August 2011.
  - The rights approach remains an important option for arrears clearance for the remaining two eligible members (Somalia and Sudan).
- Flexibility for catastrophe-hit members
  - As contemplated at establishment of the Post-Catastrophe Debt Relief (PCDR) Trust, it is proposed that flexibility be applied under the policy on the de-escalation of remedial measures when assessing cooperation on payments by members in protracted arrears that are hit by a Qualifying Catastrophic Disaster as defined under the PCDR Trust.
  - A decision is proposed to this effect.
- No other changes are proposed to the Fund’s strategy on arrears, which remains broadly effective in dealing with both short-term and protracted arrears. Remedial measures are in place against the three protracted arrears cases.

*Source: Executive Summary (IMF), _081610 - Executive Summary (PDF), end-June 2010.*

### 16.      The rights approach remains an important option for arrears clearance for the

### _081610 - 16.      The rights approach remains an important option for arrears clearance for the

### Rights Approach: status and proposal
- The rights approach was initiated in 1990 and was used in clearing the arrears to the Fund of three members—Peru, Sierra Leone, and Zambia—in the 1990s.
- Eligibility for the rights approach was restricted to the eleven members that had protracted arrears to the Fund at end-1989.
- Of these countries, only two—Somalia and Sudan—remain eligible for the rights approach.
- Use of the rights approach is not required for these members, but it "could provide a useful approach for arrears clearance in light of country-specific circumstances."
- It is proposed that the availability of the rights approach be extended for another year, to end-August 2011.

- Notes on operational requirements under the rights approach (as described in the source):
  - An eligible member must establish a track record of cooperation on policies with the Fund by undertaking an economic program with conditionality equivalent to that of upper credit tranche Fund arrangements.
  - The member is also expected to make payments to the Fund (and the World Bank) that, at a minimum, are sufficient to meet new obligations falling due.
  - By establishing such a track record, the member accumulates “rights” to future drawings of Fund resources following the clearance of its arrears.
  - At the end of the rights accumulation program, bilateral creditors would provide a bridge loan to clear the member’s arrears to the Fund, which would be followed by the member’s access to new Fund financing.

### Flexibility on payments after catastrophes (de-escalation policy and PCDR Trust)
- Context:
  - The Post-Catastrophe Debt Relief (PCDR) Trust provides debt relief to members on eligible debt to help meet exceptional balance of payments needs resulting from qualifying catastrophic disasters and complements the Fund’s concessional financing through the PRGT.
  - PCDR support is limited to the poorest PRGT-eligible members that have suffered a catastrophic disaster with an impact that exceeds certain pre-defined thresholds of economic damage and population affected.
  - Eligible debt includes, inter alia, all outstanding debt to the Fund (other than debt scheduled to be repaid under other debt relief trusts) as of the date of the catastrophe in respect of which the member had made regular scheduled debt service payments (interest and amortization) before the disaster—debt in protracted arrears to the Fund is therefore ineligible.

- Proposed flexibility under the de-escalation policy:
  - It is proposed that flexibility be applied under the de-escalation policy with respect to payments to the Fund by countries in protracted arrears that have been hit by a catastrophe.
  - In assessing such members’ cooperation on payments under the de-escalation policy, the Fund would exercise flexibility in accepting significantly reduced payments particularly during the first two years following a Qualifying Catastrophic Disaster as defined under the PCDR Trust.
  - Rationale: while the de-escalation policy generally expects that a member will make payments at least equal to newly maturing obligations for a sustained period, the policy allows flexibility in post-conflict cases where the level of payments needed to sustain cooperation is judged on a case-by-case basis; a similar flexibility is proposed for post-catastrophe cases.

### Key statistics and country arrears (selected figures from tables)
- Countries with protracted overdue financial obligations to the Fund (As of end-June 2010), total indebtedness and overdue (SDR millions):
  - Somalia: Total Indebtedness 230.3; Of which Overdue Principal 112.0; Interest 118.3; Total 230.3
  - Sudan: Total Indebtedness 990.4; Of which Overdue Principal 254.7; Interest 735.7; Total 990.4
  - Zimbabwe: Total Indebtedness 88.8; Of which Overdue Principal 72.9; Interest 15.9; Total 88.8
  - Total (Somalia + Sudan + Zimbabwe): 1,309.5; Of which Overdue Principal 439.6; Interest 869.9; Total 1,309.5

- Deferred GRA charges of countries with protracted arrears, FY 2006–2011 (In millions of SDRs, as of June 30, 2010) — balances at selected dates:
  - Somalia: Balance Apr. 30, 2006 102.9; Balance Apr. 30, 2007 108.0; Balance Apr. 30, 2008 111.6; Balance Apr. 30, 2009 115.0; Balance Apr. 30, 2010 116.3; Balance Jun. 30, 2010 116.6
  - Sudan: Balance Apr. 30, 2006 678.1; Balance Apr. 30, 2007 693.0; Balance Apr. 30, 2008 703.0; Balance Apr. 30, 2009 710.8; Balance Apr. 30, 2010 713.5; Balance Jun. 30, 2010 714.1
  - Total (Somalia + Sudan + Zimbabwe entries): Total Apr. 30, 2006 781.0; Total Apr. 30, 2007 801.0; Total Apr. 30, 2008 814.6; Total Apr. 30, 2009 825.8; Total Apr. 30, 2010 829.8; Total Jun. 30, 2010 830.7

- Countries with overdue currency valuation adjustments (In millions of SDRs; as of end-June 2010):
  - Angola 276.6
  - Congo, Dem. Rep. of 307.2
  - Marshall Islands 0.2
  - Micronesia 0.2
  - Palau 0.3
  - Somalia 135.8 (Adjustments outstanding since the end of FY 1991)
  - Sudan 529.7 (Adjustments outstanding since the end of FY 1996)
  - Suriname 74.8 (Adjustments outstanding since the end of FY 1999)
  - Total 1,324.8

- Financial obligations falling due and payments to the Fund by current protracted arrears cases, 2000–2010 (selected entries for Somalia and Sudan, in millions of SDRs):
  - Obligations falling due (Somalia / Sudan / Total): 
    - 2000: 5.9 / 25.4 / 61.4 / 92.7
    - 2005: 4.1 / 12.8 / 10.8 / 27.7
    - Jan.–Jun. 2010: 0.7 / 1.4 / 0.2 / 2.3
  - Payments made to the Fund (Somalia / Sudan / Total):
    - 2000: -- / 43.3 / 61.4 / 104.7
    - 2005: -- / 20.5 / 111.7 / 132.2
    - Jan.–Jun. 2010: -- / 2.1 / 0.9 / 3.0
  - Payments made as percent of obligations falling due (Somalia / Sudan / Total):
    - 2000: -- / 170.8 / 100.0 / 113.0
    - 2005: -- / 160.3 / 1034.3 / 477.7
    - Jan.–Jun. 2010: -- / 147.4 / 476.4 / 129.8

### Timetable of remedial measures (Annex I: GRA and SDR Department)
- Immediate: Staff sends a cable urging prompt payment; member not permitted any use of Fund resources nor any request placed before Executive Board until arrears cleared.
- 2 weeks: Management sends communication to the Governor stressing seriousness and urging full and prompt settlement.
- 1 month: Managing Director notifies Executive Board that an obligation is overdue.
- 6 weeks: Managing Director notifies the member that a complaint will be issued unless arrears settled; may recommend communications to Fund Governors.
- 2 months: A complaint is issued by the Managing Director to the Executive Board.
- 3 months: A brief factual statement noting the existence and amount of arrears is posted on Fund’s external website; complaint is given substantive consideration by the Executive Board; Board usually decides to limit use of general resources and, if overdue SDR obligations, suspend right to use SDRs; press release issued.
- 6–12 months: Executive Board will review its decision on limitation within three months, with possibility of a second review; a declaration of ineligibility will be considered to take effect not more than twelve months after the emergence of arrears.
- Up to 15 months: A declaration of noncooperation will be considered within three months after dispatch of communications; upon declaration technical assistance will be suspended unless Board decides otherwise.
- Up to 18 months: Decision on suspension of voting and representation rights considered within three months after declaration of noncooperation.
- Up to 24 months: Procedure on compulsory withdrawal will be initiated within six months after the decision on suspension.

### Timetable of remedial measures (Annex II: PRGT)
- Immediate: Staff sends a cable urging prompt payment; member’s access to Fund resources, including Trust resources, is suspended.
- 2 weeks: Management sends communication to the Governor urging full and prompt settlement.
- 1 month: Managing Director notifies the Executive Board that an obligation to the Trust is overdue.
- 6 weeks: Managing Director notifies the member that a report will be issued to the Executive Board unless arrears settled; may recommend communications to Fund Governors.
- 2 months: A report is issued by the Managing Director to the Executive Board requesting that the Board limit the member’s use of PRGT resources.
- 3 months: Report is given substantive consideration by the Executive Board; a factual statement is posted on the member’s country-specific page indicating suspension of access to Trust resources; press release issued.
- 6 months: Executive Board reviews its decision on limitation and may remove the member from the list of PRGT-eligible countries; press release issued upon removal or reinstatement.
- 12 months: A declaration of noncooperation with the PRGT may be issued by the Executive Board depending on assessment of the member’s performance; upon declaration the Fund could decide to suspend provision of technical assistance; the Managing Director may also limit technical assistance earlier if judged not contributing adequately to arrears resolution.

*Source: Finance Department (text and tables as provided).*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2010/_081610.pdf_