Update on the Financing of the Fund's Participation in the PRGF and HIPC Initiatives (579 kb pdf file)
August 29, 2001

Report by the Acting Managing Director on Financing the Fund's Participation in the HIPC Initiative and the Continuation of the Poverty Reduction and Growth Facility
April 14, 2000

Progress in Strengthening the Architecture of the International Financial System
March 30, 2000



Financing the Fund's Participation in the HIPC Initiative and the Continuation of the Poverty Reduction and Growth Facility—An Update

April 20, 2001


1. This note provides an update on the status of contributions to the PRGF-HIPC Trust, which was reviewed by the Executive Board on March 28, 2001.

2. The total cost to the Fund of participation in the HIPC Initiative and the continuation of the PRGF is estimated at US$3.8 billion in end-2000 net present value (NPV) terms1, with the HIPC Initiative accounting for about two-thirds of the total. These financing requirements are to be met through contributions by the Fund amounting to US$2.3 billion in NPV terms and bilateral contributions amounting to US$1.5 billion in NPV terms.

3. The bulk of the IMF's total contribution of US$2.3 billion comes from the investment income on the net proceeds generated from off-market transactions in gold of 12.9 million troy ounces equivalent to US$1.7 billion in NPV terms. The off-market gold transactions were completed in April 2000, generating net proceeds of SDR 2.226 billion. These resources have been placed in the Special Disbursement Account (SDA) and invested for the benefit of the HIPC Initiative. Immediately after the off-market transactions in gold, the IMF's Executive Board authorized the transfer of nine-fourteenths of the investment income from the net gold proceeds to be used for this purpose. Subsequently, on November 30, 2000, the IMF's Executive Board took a decision to authorize the transfer of the remaining five-fourteenths of the investment income.

4. The IMF also contributes about US$0.6 billion in NPV terms by foregoing compensation for the cost of administering PRGF operations for the financial years 1998 through 2004 and transferring the equivalent amount from the PRGF Trust Reserve Account to the PRGF-HIPC Trust, and by transferring to the PRGF-HIPC Trust part of the interest surcharge on certain outstanding purchases under the Supplemental Reserve Facility.

5. Bilateral pledges from member countries come from a wide spectrum of the IMF's membership, demonstrating the broad support for the HIPC and PRGF initiatives. Altogether, 94 member countries have pledged their support: 27 industrial countries; 58 developing countries; and 9 countries in transition. As of mid-April 2001, effective bilateral contributions amounted to US$1.4 billion in NPV terms, or 92 percent of total pledged contributions.


1 All figures expressed in NPV terms refer to end-2000 net present values. These estimates exclude projections of use of PRGF resources and HIPC assistance by Liberia, Somalia, and Sudan.

 

 

Pledged Bilateral Contributions to the PRGF-HIPC Trust
by Country Group

(As of April 20, 2001; in millions of SDRs "as needed") 1


       

TOTAL (94 contributors)

 

1,559.8

 
       

Major industrial countries

 

880.5

 

Canada

 

48.8

 

France

 

82.2

 

Germany

 

127.2

 

Italy

 

63.6

 

Japan

 

144.0

 

United Kingdom

 

82.2

 

United States

 

332.6

 
       

Other advanced countries

 

299.7

 

Australia

 

24.8

 

Austria

 

14.3

 

Belgium

 

35.3

 

Denmark

 

18.5

 

Finland

 

8.0

 

Greece

 

6.3

 

Iceland

 

0.9

 

Ireland

 

5.9

 

Israel

 

1.8

 

Korea

 

15.9

 

Luxembourg

 

0.7

 

Netherlands

 

45.4

 

New Zealand

 

1.7

 

Norway

 

18.5

 

Portugal

 

6.6

 

San Marino

 

--

2

Singapore

 

16.5

 

Spain

 

23.3

 

Sweden

 

18.3

 

Switzerland

 

37.0

 
       

Fuel exporting countries

 

88.3

 

Algeria

 

5.5

 

Bahrain

 

0.9

 

Brunei Darussalam

 

0.1

 

Gabon

 

2.5

 

Iran, Islamic Republic of

 

2.2

 

Kuwait

 

3.1

 

Nigeria

 

13.9

 

Oman

 

0.8

 

Qatar

 

0.5

 

Saudi Arabia

 

53.5

 

Trinidad and Tobago

 

1.6

 

United Arab Emirates

 

3.8

 
       

Other developing countries

 

173.4

 

Argentina

 

16.2

 

Bangladesh

 

1.7

 

Barbados

 

0.4

 

Belize

 

0.3

 

Botswana

 

3.1

 

Brazil

 

15.0

 

Cambodia

 

--

2

Chile

 

4.4

 

China

 

19.7

 

Colombia

 

0.9

 

Cyprus

 

0.8

 

Dominican Republic

 

0.5

 

Egypt

 

1.3

 

Fiji

 

0.1

 

Ghana

 

0.5

 

Grenada

 

0.1

 

India

 

22.9

 

Indonesia

 

8.2

 

Jamaica

 

2.7

 

Jordan

 

0.7

 

Lebanon

 

0.4

 

Libya

 

7.3

 

Malaysia

 

12.7

 

Maldives

 

--

2

Malta

 

1.1

 

Mauritius

 

0.1

 

Micronesia, Federated States of

--

2

Morocco

 

1.6

 

Pakistan

 

3.4

 

Paraguay

 

0.1

 

Peru

 

2.5

 

Philippines

 

6.7

 

Samoa

 

--

2

South Africa

 

28.6

 

Sri Lanka

 

0.6

 

St. Lucia

 

0.1

 

St. Vincent and the Grenadines

 

0.1

 

Swaziland

 

--

2

Thailand

 

4.5

 

Tonga

 

--

2

Tunisia

 

1.5

 

Uruguay

 

2.2

 

Vanuatu

 

0.1

 

Vietnam

 

0.4

 
       

Countries in transition

 

42.9

 

Croatia

 

0.4

 

Czech Republic

 

4.1

 

Estonia

 

0.5

 

Hungary

 

6.0

 

Latvia

 

1.0

 

Poland

 

12.0

 

Russian Federation

 

14.6

 

Slovak Republic

 

4.0

 

Slovenia

 

0.4

 
       

Others

 

74.9

 

1 The term "as needed" refers to the nominal undiscounted sum of the projected delivery of HIPC assistance plus the profile of projected subsidy needs for interim PRGF lending. All calculations are based on an SDR interest rate assumption of 5 percent per annum.
2 Less than SDR 0.05 million.
-->