Selected Decisions and Selected Documents of the IMF, Thirty- Eighth Issue -- Proposed Steps to Address Excessive Delays in the Completion of Article IV Consultations

Prepared by the Legal Department of the IMF
As updated as of February 29, 2016

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ARTICLE IV
Exchange Arrangements and Surveillance

PROPOSED STEPS TO ADDRESS EXCESSIVE DELAYS IN THE COMPLETION OF ARTICLE IV CONSULTATIONS

This decision is adopted pursuant to Article IV, Section 3(a) and (b) of the Fund’s Articles. It establishes a framework for addressing cases where there are delays in the completion of Article IV consultations or mandatory financial stability assessments.

  • 1. Whenever an Article IV consultation for a member or a mandatory financial stability assessment pursuant to Decision No. 14736-(10/92), September 21, 2010 (a “mandatory financial stability assessment”) has not been concluded within 12 months of the expected deadline for conclusion, and staff discussions with the member have not been completed, the Managing Director shall notify the member in writing of the delay. The notification shall be calibrated to the circumstances of the member and, where appropriate, shall remind the member of its obligation to consult. Subsequent notifications shall be sent to the member at 12 month intervals as long as the Article IV consultation or mandatory stability assessment has not been concluded and staff discussions with the member have not been completed. If the Managing Director determines that: (i) the Article IV consultation or mandatory financial stability assessment has been delayed because of exceptional circumstances, such as extreme natural disaster, extreme civil unrest or war, or (ii) there is uncertainty as to the views of the international community regarding the recognition of an administration in effective control of the country, the Managing Director may postpone sending the notification of the delay to the relevant member until the Managing Director decides that the situation leading to the postponement no longer exists. The Managing Director will promptly inform the Executive Board of any decision to postpone or resume sending notifications to a member.

  • 2. The Fund shall, at intervals of not more than six months, publish a list of all members whose Article IV consultation or mandatory financial stability assessment has, as of the date of publication, not been concluded within 18 months of the expected deadline for conclusion. For each such member, the list shall, in particular, specify (i) the fact of the delay in completion and (ii) the reasons for the delay. Where applicable, the list will note the cases when staff discussions with members have been completed.

  • 3. Whenever an Article IV consultation or a mandatory financial stability assessment for a member has not been concluded within 18 months of the expected deadline for conclusion, staff shall, except as provided below, informally brief Executive Directors on the economic developments and policies of the member or on its financial sector, as applicable. No such briefing shall be required to the extent that (i) staff discussions with the member for the Article IV consultation or mandatory financial stability assessment have been completed, or (ii) Executive Directors have, within the previous twelve months, been briefed on the member’s economic developments and policies or on its financial sector, as applicable, in another context, or (iii) the Managing Director, in exceptional circumstances, determines that the available information is so inadequate as to seriously undermine the ability of Fund staff to conduct a meaningful analysis of the member’s economic developments and policies or of its financial sector, as applicable. Following the initial briefing and, for so long as the conditions set out in (i), (ii) and (iii) have not been met, staff shall, in cases of delayed Article IV consultations, brief the Executive Directors on the economic development and policies of the relevant member every 12 months thereafter; and in cases of delayed mandatory financial stability assessments, brief the Executive Directors on the financial sector of the relevant member every 60 months thereafter. Whenever a briefing under this paragraph is held, the Fund will make public the fact that the briefing took place. Whenever the Managing Director makes the determination specified in (iii) above, the Managing Director will inform the Executive Board that no such briefing will be held and the Fund will make public the fact that no briefing was held due to the lack of adequate information.

  • 4. Any calculation of the deadlines in paragraphs 1, 2, and 3 above shall be made in accordance with Decision No. 14747-(10/96), September 28, 2010, as amended and Decision No. 14736-(10/92), September 21, 2010, as amended, taking into account any grace period, as applicable.

  • 5. Paragraph 1 of this Decision shall begin to apply one month after the date of adoption of this Decision.

  • 6. Paragraph 2 of this Decision shall begin to apply immediately upon the date of adoption of this Decision provided, however, that the first public announcement required under that paragraph shall take place no later than six months following the date of adoption of the Decision.

  • 7. Paragraph 3 of this Decision shall begin to apply six months after the date of adoption of this Decision. (SM/12/24, 02/03/12)

Decision No. 15106-(12/21), February 29, 2012,

as amended by Decision No. 15494-(13/110),

December 2, 2013

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