Policy Papers

May 6, 2025

Implementation Plan in Response to the Board-Endorsed Recommendations from the IEO Evaluation on the Evolving Application of the IMF's Mandate

Description: This Management Implementation Plan (MIP) proposes actions in response to the Board-endorsed recommendations provided by the Independent Evaluation Office (IEO)'s report on the Evolving Application of the IMF's Mandate. The MIP addresses the four IEO recommendations, which aim to (i) Enhance the decision-making process for Fund engagement in new policy areas; (ii) Address operational challenges by producing budget data in a manner that allows tracking by policy area across all Fund activities and operations; (iii) Enhance the clarity of key elements regarding surveillance in new policy areas, and (iv) Adopt an Executive Board-approved high-level Statement of Principles for Engagement with Partners. Staff will leverage existing and planned workstreams to address the IEO's recommendations.

May 2, 2025

FY2026-FY2028 Medium-Term Budget

Description: The global economy has proven resilient in the post-pandemic period, with global disinflation continuing, but with significant remaining uncertainty. This backdrop and transformations in the economic landscape are driving strong demand for Fund engagement. The proposed budget is guided by the longstanding principle of budget prudence. Notwithstanding a modest proposed structural top-up to supplement critical cybersecurity-related needs, overall net resourcing to departments will decline, given ongoing unwinding of temporary pandemic-era resources.

May 2, 2025

Review of the Fund's Income Position for FY 2025 and FY 2026

Description: This paper updates the projections of the Fund’s income position for FY 2025 and FY 2026 and proposes related decisions for the current and the following financial years. The paper includes proposed decisions to transfer part of its net income to facilitate the generation of subsidy resources for Poverty Reduction and Growth Trust (PRGT) and to initiate the payout from the Endowment Subaccount to meet administrative expenses. It also includes a proposed decision to keep the margin for the rate of charge unchanged at the level set by the Executive Board in October 2024. The Fund’s total comprehensive income for FY 2025 is projected at about SDR 3.4 billion after taking into account the projected pension-related remeasurement gain and estimated retained income in the Investment Account.

May 2, 2025

2025 Update of Resource Adequacy of the Poverty Reduction and Growth Trust, Resilience and Sustainability Trust, and Debt Relief Trusts

Description: This paper provides an update of the resource adequacy of the Fund's Trust funds. Poverty Reduction and Growth Trust (PRGT) finances remain broadly in line with expectations at the completion of the 2024 PRGT Facilities and Financing Review, which included policy reforms and financing measures to ensure adequate and durable financial support to low-income countries (LICs) and restore the PRGT self-sustainability. Following the review, good progress has been made in securing assurances from members under the comprehensive framework to distribute GRA resources to facilitate the generation of additional PRGT subsidy resources. On the Resilience and Sustainability Trust (RST), the agreed process of voluntary bilateral contributions has progressed well. Based on updated projections, there are sufficient resources to meet demand through the RST Comprehensive Review, at which time staff will take stock of experience and assess medium-term resource needs. The RST's reserves remain adequate and the interest rate cap for Group A countries remains appropriate, though risks have increased. The Catastrophe Containment and Relief Trust (CCRT) remains underfunded and its next comprehensive review provides an opportunity to address its financing challenges. The Heavily Indebted Poor Countries (HIPC) initiative is nearly complete, although Sudan's progress towards the Completion Point is delayed. Staff assesses that risks to the finances of the PRGT and RST are appropriately mitigated at this time. Accordingly, and pending the outcome of the CCRT Review, staff does not propose any adjustments or policy changes to the Fund's Trust funds in this annual update.

April 30, 2025

Precautionary and Liquidity Line - Operational Guidance Note

Description: This note provides operational guidance on the use of the Precautionary and Liquidity Line (PLL). After an overview of the instrument explaining its specific nature, the operational issues are grouped into six areas: an outline of the process and specific steps that need to be followed if a member expresses interest in an arrangement; guidance on determining qualification of a member; guidance on access, phasing, ex-post conditionality, review process; guidance on purchases; guidance on communication of expiration or cancellation; and guidance on interaction with other instruments. The note is an aid to the implementation of the policy and its underlying principles. If there is any instance in which a provision of the guidance note or its implementation conflicts with Board policy, Board policy prevails. It will be revised as needed, for example, following relevant policy reviews.

April 30, 2025

Flexible Credit Line and Short-Term Liquidity Line - Operational Guidance Note

Description: This note provides operational guidance on the use of the Flexible Credit Line (FCL) and the Short-Term Liquidity Line (SLL). After an overview of each instrument, explaining its specific nature, the operational issues are grouped into five areas: an outline of the process and specific steps that need to be followed if a member expresses interest in an arrangement; guidance on the modalities of concurrent use of the two instruments; guidance on interaction with other instruments; guidance on determining qualification of a member; and a how-to guide for determining appropriate access levels. The note is an aid to the implementation of the policy and its underlying principles. If there is any instance in which a provision of the guidance note or its implementation conflicts with Board policy, Board policy prevails. It will be revised as needed, for example following relevant policy reviews.

April 29, 2025

FY 2026 Executive Board Work Program

Description: Global growth is projected to remain broadly steady this year and next, but the outlook is subject to elevated uncertainty as significant policy changes are underway in major economies and ongoing wars and conflicts continue to impose a heavy humanitarian and economic toll. Medium-term growth prospects remain tepid, largely held back by weak productivity, and public debt is high in many countries. The low-growth, high-debt outlook could stifle job creation, and leave countries exposed to future shocks and with limited room to finance essential investment. For EMDEs, it would also set back prospects for their convergence to higher income levels and, for vulnerable countries, exacerbate challenges from high debt service payments and elevated development needs. Transformative changes—including digitalization/AI, demographic shifts, and climate transitions—are reshaping the world economy, creating both challenges and opportunities, including for jobs, productivity, and innovation.

April 24, 2025

Development Committee: The Managing Director's Written Statement

Description: The world economy is at a pivotal juncture. At the center are shifting policy priorities by major economies and escalating trade tensions, in the face of high public debt, weak medium-term growth prospects, and transformative forces reshaping the economic landscape. In this context, the economic outlook is highly uncertain, with intensifying downside risks. Based on information available as of April 4, 2025, global growth is projected to fall significantly while headline inflation is expected to further decline, though at a slightly slower pace than expected earlier. Many low-income developing countries (LIDCs) face the added challenge of collapsing aid flows. While growth in LIDCs is expected to further improve in the aggregate, the rate of per capita growth is projected to decline in 2025-26. Moreover, of the 20 fastest growing countries in the world in 2024, around half were LIDCs—yet many of the poorer LIDCs have seen virtually no progress in per capita incomes over the past 15 years. In the current environment of elevated uncertainty and frequent shocks, policies should be geared towards enhancing economic and financial stability, rebuilding buffers, and improving growth potential. Countries should also renew their focus on addressing internal and external macroeconomic imbalances, which can help enhance stability internally, externally, and globally. Multilateral cooperation remains essential to deliver sustained growth and meet global challenges.

April 24, 2025

The Managing Director's Global Policy Agenda, Spring Meetings 2025: Medium-Term Direction for the IMF: Anchoring Stability and Promoting Balanced Growth

Description: The IMF was created 80 years ago to promote macroeconomic and financial stability, facilitate a balanced expansion of international trade, and ensure a smooth functioning of the world economy. Even as the world has evolved profoundly, the institution’s mission is as relevant today as it was then. At this time of great flux in the world economy, when policymakers are focused on the immediate fallout from the trade issues, this Global Policy Agenda sets a high-level roadmap to ensure that the IMF continues to serve as a trusted advisor to policymakers, a reliable lender of last resort during crises to resolve balance of payments problems, a champion of strong policy frameworks, and a convener to confront common economic challenges. As we continuously adapt to changing conditions, we will remain engaged with our members to meet their needs over the medium and long term.

Notes: Managing Director's Press briefing on the Global Policy Agenda

April 23, 2025

2025 Handbook of IMF Facilities for Low-Income Countries

Description: This Handbook provides guidance to staff on the IMF’s facilities available to countries eligible to obtain concessional financing from the Fund under the PRGT, namely low-income countries (LICs). It updates the previous version of the Handbook that was published in March 2023 by incorporating modifications resulting from the 2024 Review of the Poverty Reduction and Growth Trust (PRGT) Facilities and Financing and other recent policy papers. Designed as a comprehensive reference tool for program work in LICs, this Handbook also refers, in summary form, to a range of relevant policies that apply more generally to IMF members. As with all guidance notes, the relevant IMF Executive Board decisions, including the terms of the various LIC Trust Instruments that have been adopted by the Board, remain the primary legal authority on the matters covered in this Handbook.