Journal Issue
Share
Article

Recent Activity—International Monetary Fund

Author(s):
International Monetary Fund. External Relations Dept.
Published Date:
June 1966
Share
  • ShareShare
Show Summary Details

THE FIRST QUARTER of 1966 was another busy period for the International Monetary Fund. New drawings during the quarter were made by 19 member countries, in the total amount of $478 million. Outstanding drawings at the end of March had risen to $4,580 million, an increase of $226 million since the beginning of the year. The cumulative total of all drawings made on the Fund since it began operations in March 1947 had climbed to $11.9 billion.

Transactions during the quarter included drawings by Argentina, Ireland, and the United States, as well as those made by 8 other countries under existing stand-by arrangements. Twelve countries drew on the Fund to help finance the payment of their additional quota subscriptions. These were Burundi, Ceylon, Colombia, Haiti, India, Liberia, New Zealand, Somalia, the Sudan, the Syrian Arab Republic, the United Kingdom, and Yugoslavia.

New stand-by arrangements in continued support of stabilization programs were announced for eight countries during the quarter. These included four Latin American republics, Brazil, Chile, Costa Rica, and Peru, and two countries in Africa, Burundi and Somalia, as well as new arrangements for Korea and Turkey. At the end of March, the Fund was maintaining stand-by arrangements with 23 members, and undrawn balances under these arrangements amounted to $433 million.

The largest single transaction agreed during the quarter was a drawing equivalent to $187.5 million made by the Government of India to help meet that country’s payments difficulties caused by drought. Unfavorable weather conditions, which last year extended over most of the country, have severely reduced the production of foodgrain and industrial raw materials in India, and also of several commodities important to its export income, especially jute, oilseeds, and tea. Shipments of grain from the United States and other countries will alleviate India’s difficulties, but exceptional foreign exchange expenses remain.

The drawings of $187.5 million by the Government of India, announced on March 23, was effected early in April in ten currencies, as follows: $37.5 million in French francs; $25 million in U.S. dollars; $25 million in pounds sterling; $25 million in Italian lire; $15 million in Canadian dollars; $15 million in Netherlands guilders; $15 million in Belgian francs; $10 million in deutsche mark; $10 million in Japanese yen; and $10 million in Australian dollars.

This brought India’s outstanding drawings on the Fund to the equivalent of $475 million. India’s quota in the Fund had been previously increased from $600 million to $750 million.

Quota Increases

Increased quotas in the Fund became effective for many members during the first quarter after the two Resolutions approved by the Fund’s Board of Governors in March 1965, proposing general and special quota increases, had become effective as from February 24, 1966. By that date, 59 member countries, representing 67.82 per cent of total Fund quotas, had notified the Fund of their consent to a quota increase. Under the terms of the Resolutions, members having not less than two thirds of the total quotas in the Fund as of February 26, 1965 were required to consent to their individual quota increase before any of the proposed increases came into effect.

By the end of March, the number of countries consenting to their quota increases had risen to 78, and 53 of these members had completed their additional subscription payments. As a result, total quotas in the Fund on March 31, 1966 had risen to $19,231 million.

The period in which the remaining members of the Fund may consent to their quota increase has been extended until July 31, 1966. When all the proposed quota increases have become effective, total quotas in the Fund are expected to rise to about $21 billion.

DRAWINGS BY MEMBERS DURING THE FIRST QUARTER OF 1966
MemberMonthAmount

($ million)
AfghanistanJanuary, March3.38
ArgentinaJanuary30.00
BurundiMarch.94 *
CeylonJanuary, March11.50 *
ChileMarch10.00
ColombiaJanuary, March19.75 *
Costa RicaMarch2.00
HaitiJanuary, March.70 *
HondurasMarch2.50
IndiaMarch37.50 *
IrelandJanuary22.50
LiberiaJanuary, March2.19 *
New ZealandMarch8.00 *
SomaliaMarch.94 *
SudanMarch3.00 *
SyriaFebruary, March3.25 *
United KingdomMarch122.50 *
United StatesJanuary, March160.00
YugoslaviaMarch37.50 *
Total drawings in the first quarter of 1966:478.14
Total net drawings at the end of the first quarter of 1966:4,579.80

Drawings made in connection with payments of additional quota subscriptions.

Drawings made in connection with payments of additional quota subscriptions.

STAND-BY ARRANGEMENTS APPROVED DURING THE FIRST QUARTER OF 1966
Amount
MemberMonth($ million)
BrazilFebruary125.0
BurundiMarch5.0
ChileFebruary40.0
Costa RicaFebruary10.0
KoreaMarch12.0
PeruMarch37.5
SomaliaJanuary2.8
TurkeyJanuary21.5
Total253.8

FUND STAND-BY ARRANGEMENTS

(As of March 31, 1966)

USE OF FUND’S RESOURCES

(As of March 31, 1966)

SURVEY MISSION REPORTS FROM THE WORLD BANK

Since 1949 the World Bank has sent more than a score of economic survey missions to as many different countries. Organized at the request of governments, the missions make on-the-scene surveys of the problems and potential for development in the country being studied, and they make recommendations to assist the government in shaping long-term development programs. Each mission’s final report, in English, is published as a book by The Johns Hopkins Press. Reports on the following countries are available: Kenya, Spain, Uganda, Tanganyika, and Venezuela, U.S. $8.50 each; Libya, Jordan, Malaya, and Syria, $7.50 each; Thailand, $6.00; Jamaica and Surinam, $5.00 each.

Orders should be sent directly to The Johns Hopkins Press, Baltimore, Maryland 21218.

Other Resources Citing This Publication