Selected Decisions and Selected Documents of the IMF, Thirty- Eighth Issue -- Summing Up by the ChairmanóBiennial Review of the Fundís Surveillance Policy, Executive Board Meeting 93/15, January 29, 1993

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

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ARTICLE V, SECTION 2(b)
Technical and Financial Services
Technical Services

Summing Up by the Chairman— Biennial Review of the Fund’s Surveillance Policy

Executive Board Meeting 93/15, January 29, 1993

The Executive Board agreed that the criteria relating to enhanced surveillance set out on pages 28 and 29 of SM/92/234 [below] would be appropriate. In sum, these provide that the procedures, which would normally be initiated by the authorities in the context of Article IV discussions, would involve submitting a quantified annual economic program, generally formulated with the assistance of the staff, and also half-yearly reports to the Board; both the Article IV reports (as appropriately modified) and the half-yearly reports could be made available to creditors. Application of the procedures would be approved by the Executive Board until the next Article IV consultation or for a 12-month period. These procedures should be reviewed within two years, and in the interim, they will be applied with a view to the concerns noted by you today and during the discussion of January 27.

SUR/93/15,

February 3, 1993

SM/92/234

The principal features of the proposed revised enhanced surveillance procedures are summarized below.

  • 1. Enhanced surveillance procedures would be initiated by a member with a request for Fund monitoring of its macroeconomic and structural policies, usually at the time of the Article IV consultation.

  • 2. The Executive Board would respond to the member’s request on a case-by-case basis, taking into account among other things a member’s track record of adjustment.

  • 3. In recognition of a concern of Executive Directors at the time of the 1989 review of enhanced surveillance, each Executive Board approval of the application of the procedures would be only until the time of the next Article IV consultation with the member (or a 12-month period), when a further request for application of the procedures could be presented. Limiting the duration of the procedures to a relatively short period should reduce the need for unilateral termination of such procedures by the Fund.

  • 4. The member’s request for enhanced surveillance would be granted on the strength of a quantified economic policy program, which had been discussed with the Fund staff, usually as part of the consultation discussions. It is expected that there would be a mid-term review of progress under the economic program before the next scheduled Article IV consultation, irrespective of the actual performance; failing which, Directors would be informed of the absence of the review and the reasons. The review report would be issued by the staff under the same procedures as for interim consultations and the Executive Board would take note of the report on a lapse-of-time basis unless a discussion was requested by a Director or the Managing Director.

  • 5. As before, enhanced surveillance would not involve Executive Board approval or endorsement of the macroeconomic program presented by the member.

  • 6. Information on the economic program and its implementation, as well as the staff’s assessment of the situation as contained in the staff reports, could be made available by the authorities to donors and creditors on a timely basis. In addition to the staff report, official creditors/donors would also receive the Chairman’s summing up of the Executive Board discussion.

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