A Framework for the Fund's Issuance of Notes to the Official Sector
Policy Papers, June 17, 2009
Source details
- Canonical URL
- A Framework for the Fund's Issuance of Notes to the Official Sector
Other formats
Bibliographic details
- Published: June 17, 2009
- Series: Policy Papers
Overview
- On July 1, 2009, the Executive Board of the International Monetary Fund discussed the Managing Director's proposal for a framework for issuing notes to the official sector.
- The framework approved by the Executive Board was adapted on the basis of these discussions, as reflected in supplement 2 of the paper.
- Publication date shown on the landing page: June 17, 2009.
Key features of the framework
- Enables members to invest in IMF paper under note purchase agreements approved by the Board.
- Permits note purchase agreements without any pre-specified limit on the cumulative amount committed under note purchase agreements.
- The actual issuance of notes will occur should the IMF need additional resources at the time of a loan disbursement to a member.
- The notes would have similar financial terms to the IMF’s recent bilateral borrowing agreements.
Operational triggers and use
- Issuance trigger: need for additional resources at the time of a loan disbursement to a member.
- Mechanism: issuance under note purchase agreements approved by the Board.
Financial and legal design
- Notes offered to the official sector under the approved note purchase agreements.
- Financial terms: similar to the IMF’s recent bilateral borrowing agreements (no further numeric terms provided on the page).
Governance and approvals
- Board approval required for note purchase agreements.
- Framework adapted based on Executive Board discussions and reflected in supplement 2.
Subjects and thematic coverage (as listed on the page)
- Article VII, Section 1(i)
- Borrowed resources use
- Borrowing by Fund
- External financing
- Financial instruments
- Fund approval proposed
- Fund general resources
- Holdings of Fund
- New Arrangements to Borrow
- Real sector
Source: A Framework for the Fund's Issuance of Notes to the Official Sector (June 17, 2009).
Content in this bundle
- A Framework for the Fund’s Issuance of Notes to the Official Sector; IMF Policy Paper; June 17, 2009