Press Release No. 99/48

The Executive Board of the International Monetary Fund (IMF) is considering conducting off-market transactions of up to 14 million fine ounces of gold. On the basis of market prices, the IMF will sell gold to some central banks of member countries with repayment obligations to the IMF, on the understanding that these central banks will use the gold to make the repayment. These transactions will allow the IMF to place an amount of the sales proceeds equivalent to SDR 35 an ounce in the general resources account, and the balance in the Special Disbursement Account for investments benefitting the ESAF-HIPC Trust.

A resolution adopted by the Board of Governors today indicates: "that off-market transactions of up to 14 million ounces of gold by the IMF that are envisaged will be a one-time operation of a highly exceptional nature that is part of a broader financing package to allow the IMF to contribute to the resolutions of the debt problems of the HIPCs at the turn of the millennium and to the continuation of concessional operations to support countries' efforts to achieve sustained growth and poverty reduction."