## IMF Executive Board reviews the Staff-Monitored Program with Board Involvement

_IMF News, February 20, 2024_

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**Canonical URL:** [IMF Executive Board reviews the Staff-Monitored Program with Board Involvement](https://www.imf.org/en/news/articles/2024/02/16/pr2452-imf-executive-board-reviews-the-staff-monitored-program-with-board-involvement)

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## Bibliographic details
- Published: February 20, 2024

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### Overview
- Press Release No. 24/52
- Date on page: February 20, 2024
- The Executive Board completed the review of the policy on Staff-Monitored Programs with Board Involvement (PMB).
- The PMB is an instrument to help member countries establish a track record to access an IMF-supported program.

### Executive Board decision
- The Executive Board endorsed the proposal to keep the PMB in the Fund’s toolkit.
- A subsequent review of the instrument is expected in three years.
- The Board completed the review on February 7 (date of completion noted in the text).

### Purpose and use criteria of the PMB
- Objective: To build or rebuild a track record of policy implementation towards an Upper Credit Tranche (UCT)-quality Fund-supported program.
- PMB is carefully circumscribed for member countries under either:
  - (i) an ongoing concerted international effort by creditors or donors to provide substantial new financing or debt relief in support of the member’s policy program; or
  - (ii) significant outstanding credit under emergency financing (EF) instruments at the time of a new EF request.
- The PMB allows the Executive Board to:
  - Opine, at the time of PMB approval, on the robustness of the member’s policies to meet the program’s objectives.
  - In the context of reviews, opine on whether it agrees with staff that the member is on track to meet those objectives.

### Experience and cases to date
- Since inception, three members have implemented PMBs:
  - Malawi
  - Ukraine
  - South Sudan
- Given the limited number of cases, further experience is needed to draw more definitive conclusions on the PMB’s usefulness relative to alternative instruments.

### Executive Board Assessment (summary of Directors’ views)
- Broad support to maintain the PMB in the Fund’s toolkit, while noting limited case experience.
- Agreement that the Staff-Monitored Program (SMP) should remain the Fund’s primary instrument to build or rebuild a track record of policy implementation toward a UCT-quality program.
- Noted potential benefits of limited Executive Board involvement through the PMB:
  - Enhancing donor coordination.
  - Catalyzing additional financial support including in low-income, fragile, and conflict-affected countries.
  - Creating an additional safeguard in cases of elevated emergency financing exposure.
  - Reflecting the Board’s views on policies at an earlier stage, thereby facilitating the transition to UCT-quality programs.
  - Positive experiences cited for Ukraine and Malawi.
- Concerns and caveats raised by Directors:
  - Limited number of PMB cases prevents firm conclusions on pros and cons.
  - A few Directors were skeptical about PMB merits relative to the regular SMP.
  - Access to the PMB should remain limited to the two specified use criteria to prevent encroachment on SMP use.
  - The choice between a PMB or a regular SMP should remain voluntary and rest with the requesting member.
  - Importance of mitigating risks that could blur the lines between Board-endorsed programs and SMPs:
    - Maintain effective communication on the nature and purpose of the PMB.
    - Communicate clearly that responsibility for PMBs rests with staff and management, and the Board has limited involvement and does not endorse a PMB.
  - Directors encouraged the next review to include an assessment of risks and challenges that may emerge with more PMB experience.
- Timing of next review:
  - Directors agreed to have the review in three years once more experience is gained.
  - A number of Directors were open to an earlier review if warranted.

### Contact information
- IMF Communications Department, MEDIA RELATIONS
- PRESS OFFICER: Randa Elnagar
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
- Twitter: @IMFSpokesperson

*International Monetary Fund*

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## References

- [Malawi and the IMF](http://www.imf.org/external/country/MWI/index.htm)
- [Republic of South Sudan and the IMF](http://www.imf.org/external/country/SSD/index.htm)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [Staff-Monitored Program with Board Involvement (PMB)](https://www.imf.org/en/News/Articles/2022/10/05/pr22335-imf-approves-a-new-food-shock-window-and-an-enhanced-staff-monitored-program)
- [http://www.IMF.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2024/02/16/pr2452-imf-executive-board-reviews-the-staff-monitored-program-with-board-involvement_