IMF Executive Board Reviews the Fund's Income Position for Financial Years 2017–18

IMF News, May 30, 2017

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Canonical URL: IMF Executive Board Reviews the Fund's Income Position for Financial Years 2017–18

The Executive Board completed its annual review of the Fund’s income position for the financial years ending April 30, 2017 (FY 2017) and FY 2018 on April 26, 2017.
Press Release No. 17/197.

Total FY 2017 net income, including income from surcharges applied to higher access borrowing from the IMF, is estimated at SDR 1.7 billion (US$2.3 billion).
Net income excluding the retained earnings of the gold endowment will be added to the IMF’s precautionary balances.
Precautionary balances are projected to reach SDR 16.4 billion (US$22.5 billion) at end-FY 2017.
The net income position for FY 2017 is higher than estimated a year earlier.
- This improvement reflects:
- the amended IAS (International Accounting Standard) 19 adjustment, relating to reporting of employee benefits, and
- higher investment income.

Net income projected for FY 2018: SDR 0.7 billion (US$1 billion).
Projection sensitivities:
- timing and amounts of disbursements under approved arrangements included in the projections,
- possible new arrangements,
- the performance of the Fund’s investment portfolio,
- the annual pension expense as determined under IAS 19.
The projected net income will allow the IMF to continue to add to its precautionary balances.

The IMF charges member countries a basic rate of charge on the use of IMF credit, determined as the SDR interest rate plus a margin expressed in basis points.
In April 2016, the Executive Board set the margin for this rate of charge at 100 basis points for financial years FY 2017 and FY 2018.
At the midpoint comprehensive review of the Fund’s income position, the Executive Board concluded that the margin should remain unchanged.

IMF Executive Board Reviews the Fund's Income Position for Financial Years 2017–18; Press Release No. 17/197.