Selected Decisions and Selected Documents of the IMF, Fortieth Issue -- Relationship Between Performance Criteria and Phasing of Purchases Under Fund Arrangements—Operational Guidelines

Prepared by the Legal Department of the IMF
As updated as of April 30, 2019

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ARTICLE V, SECTION 3(a), (b), AND (c)
Use of Fund Resources


  • 1. The number of purchases and corresponding performance criteria in Fund GRA arrangements will depend on the circumstances of the member, provided however that there would be a minimum of two purchases (in addition to the initial purchase) and two sets of corresponding performance criteria during each 12-month period of an arrangement.1 In considering a member’s circumstances, the member’s policies, and the likely timing of its balance of payments needs, and the external economic environment will be taken into account. For members facing an actual balance of payments crisis that may involve fast moving developments or an uncertain external economic environment, more frequent monitoring on a quarterly basis could be expected. In all cases, the purchase dates and the test dates for performance criteria would be expected to be distributed as evenly as possible throughout the period of the arrangement. In the case of performance criteria, the date of the first performance test would not normally be earlier than the date on which the arrangement becomes effective, and the date of the last performance test would not be earlier than three months from the end of the arrangement in cases where purchases are phased quarterly.

  • 2. Every effort should be made to include performance criteria initially for as much of each 12-month period of a Fund GRA arrangement as possible. However, it may not always be possible to establish in advance one or more performance criteria for each 12-month period of the arrangement because of substantial uncertainties about major economic trends and normal time lags between the completion of program discussions and Executive Board discussion. Performance criteria should normally be included initially which would govern purchases over a period of at least six months of an arrangement. Indicative targets would normally be included at the outset for that part of each 12-month period of an arrangement for which performance criteria are yet to be established.

  • 3. Access under a Fund GRA arrangement may be frontloaded as appropriate, taking into account a member’s actual or potential need for resources from the Fund, the likely timing of the member’s balance of payments need, the member’s policies, the external economic environment, the sequencing of financing from other sources, and the desirability of maintaining a reasonable level of reserves.

  • 4. Every effort should be made to: (i) limit to a minimum the lag between the beginning of a member’s program and the date of discussion by the Executive Board of the member’s request for a Fund arrangement; and (ii) limit the period between the approval by Fund management of the member’s request and the Executive Board discussions of the request to no more than three months. Should the period in (ii) above be exceeded, the staff would confirm that the program as originally proposed remains generally appropriate. In cases where a delay indicates a significant slippage in the implementation of the agreed program, the program would be renegotiated, including the performance criteria and phasing of purchases.

  • 5. Lags between the reporting of data relating to performance criteria should be minimized in order to preserve the reliability of data. All members are expected to limit such reporting lags to two months. Where reporting lags exceed two months, the staff will explain the reasons for such lags as well as the steps being taken to reduce them. (SM/09/69, Sup. 2, 03/24/09)

Decision No. 7925-(85/38), March 8, 1985,

as amended by Decision Nos. 8887-(88/89), June 6, 1988, and

14281-(09/29), March 24, 2009, and

15017-(11/112), November 21, 2011

1 Ed. Note: Paragraph 13 of Decision No. 15017-(11/112), November 21, 2011 states: “Decision No. 7925-(85/38), adopted March 8, 1985, as amended, on the relationship between performance criteria and phasing under GRA arrangements, shall not apply to PLL arrangements.”

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