## Press Release: IMF Executive Board Reviews Fund's Income Position and Sets Lending Rate for 2011 Financial Year

_IMF News, May 19, 2010_

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**Canonical URL:** [Press Release: IMF Executive Board Reviews Fund's Income Position and Sets Lending Rate for 2011 Financial Year](https://www.imf.org/en/news/articles/2015/09/14/01/49/pr10204)

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## Bibliographic details
- Published: May 19, 2010

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### FY 2010 Income Position
- FY 2010 net operational income position is projected at SDR 365 million (US$534 million), compared with SDR 290 million (US$424 million) envisaged at the beginning of the financial year.
- Improved outlook primarily attributed to:
  - higher than expected earnings on the Fund’s investment portfolio, which is made up largely of fixed-income securities; and
  - lower net administrative expenditures, in SDR terms, reflecting movements in the U.S. dollar/SDR exchange rate.
- FY 2010 net income will include gold profits estimated at about SDR 3.5 billion (US$5.1 billion) from part of the limited sale of the Fund’s gold.
- Purpose of the gold sales:
  - fund an endowment; and
  - increase the Fund’s resources for lending to low-income countries under a strategy endorsed by the IMF Executive Board in July 2009.
- Note on the endowment: the endowment to provide a sustainable source of income has not yet been established pending approval by the membership of the proposed amendment to the Articles of Agreement to broaden the investment mandate.

### FY 2011 Lending Rate and Income Position
- The Executive Board agreed to maintain the margin on the rate of charge unchanged at 100 basis points above the SDR interest rate for FY 2011.
- Projections for FY 2011:
  - net operational income position of about SDR 202 million (US$295 million), before taking account of income from surcharges;
  - income from surcharges applied to higher access borrowing estimated at SDR 499 million (US$730 million).
- Projections subject to a high degree of uncertainty given:
  - difficulty of predicting future demand for Fund financing;
  - sensitivity to the timing and amounts of disbursements under arrangements included in the assumptions;
  - possible new arrangements; and
  - performance of the Fund’s investment portfolio.

### Other Decisions Affecting IMF Finances
- Use FY 2010 investment income to meet expenses of conducting the business of the Fund during FY 2010.
- Transfer amounts attributable to FY 2010 net operational income to the Fund’s investment portfolio.
- Continue special charges on certain overdue obligations.

*Press Release No. 10/204 — May 19, 2010*

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## References

- [Press Releases](https://www.imf.org/en/news/searchnews)
- [Review of the Fund’s Income Position for FY 2010 and FY 2011](http://www.imf.org/external/pp/longres.aspx?id=4453)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2015/09/14/01/49/pr10204_