Press Release: IMF Executive Board Reviews Fund's Income Position and Sets Margin for Lending Rate for 2012 Financial Year
IMF News, May 10, 2011
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- Published: May 10, 2011
FY 2011 Income Position
- FY 2011 net operational income is projected at SDR 292 million (US$467 million), before taking account of income from surcharges applied to higher access borrowing from the Fund that are estimated at SDR 497 million (US$794 million).
- FY 2011 net income also includes gold profits of about SDR 3.1 billion (US$5.0 billion) from the recently concluded limited gold sales program, which began in FY 2010.
- The gold sales will:
- 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.
- A work program is underway for the IMF Executive Board to:
- establish new rules and regulations for this endowment, and
- consider possible uses for the additional windfall profit from the gold sales.
FY 2012 Lending Rate and Income Position
- The IMF’s basic rate of charge on use of IMF credit is determined as the SDR interest rate plus a margin expressed in basis points.
- The Executive Board agreed to maintain the margin for this rate of charge unchanged at 100 basis points.
- Projections for FY 2012:
- net operational income position of SDR 482 million (US$770 million), before taking account of income from surcharges estimated at SDR 981 million (US$1.6 billion).
- Projection caveats:
- The projections are subject to a high degree of uncertainty and are sensitive to the timing and amounts of disbursements under approved arrangements included in the projections, possible new arrangements, and the performance of the Fund’s investment portfolio.
Other Executive Board Decisions Affecting Fund Finances
- Transfer of amounts attributable to net operational income and surcharges in FY 2011 to the Fund’s investment account.
- Placement of net income to the Fund’s reserves.
- Continue special charges on certain overdue obligations.
Press Release No. 11/167, May 10, 2011.