Front Matter

Front Matter

International Monetary Fund. Finance Dept.
Published Date:
October 2014
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    2014 International Monetary Fund, Publication Services

    P.O. Box 92780

    Washington, D.C. 20090, U.S.A.

    (202) 623-7430

    (202) 623-7201





    2014 Previously published as Financial Organization and Operations of the IMF First edition 1986; Sixth edition 2001

    Cataloging-in-Publication Data

    Joint Bank-Fund Library

    IMF Financial operations / Finance Department, International Monetary

    Fund. – Washington, D.C. : International Monetary Fund, 2014

    p. ; cm.

    Includes bibliographical references.

    1. International Monetary Fund. 2. International finance. 3. Financial organization and operations of the IMF. I. International Monetary Fund. Finance Department.

    HG3881.5.I58 F48 2014



    The International Monetary Fund was conceived in July 1944, at a United Nations conference in Bretton Woods, New Hampshire, United States. The 44 participating governments sought to build a framework for economic cooperation that would forestall any repetition of the disastrous policies, including competitive devaluations, that contributed to the Great Depression of the 1930s and, ultimately, to World War II.

    The IMF now has 188 member countries and has evolved over time as the global economy has expanded, become more integrated, and endured both boom and bust. But the IMF’s mission has remained the same: to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to transact with one other and that is essential for promoting sustainable economic growth, increasing living standards, and reducing poverty.

    This publication provides a broad introduction to how the IMF fulfills this mission through its financial activities. It covers the financial structure and operations of the IMF and also provides background detail of the financial statements for the IMF’s activities during the most recent financial year. Making such financial information publicly available is part of the IMF’s overarching commitment to transparency. Transparency in economic policy and the availability of reliable data on economic and financial developments is critical for sound decision-making and for the smooth functioning of the international economy. Toward that end, this publication also contains numerous links to other publicly available information on IMF finances, including on the IMF’s website,

    Chapter 1 reviews the evolution of the IMF’s financial structure and operations, its role and functions, governance structure, and the nature of recent reforms. Chapters 2 and 3 explain how the IMF provides lending to member countries experiencing actual or potential balance of payments problems, meaning that the country cannot find sufficient financing on affordable terms to meet its net international payments (for example, for imports or external debt redemptions). This financial assistance enables countries to rebuild their international reserves, stabilize their currencies, continue paying for imports, and restore conditions for strong economic growth, while undertaking policies to correct underlying problems. Chapter 2 reviews IMF lending made at market rates (that is, nonconcessional lending facilities), and Chapter 3 describes the various concessional facilities by which the IMF lends to low-income member countries at favorable rates (currently, a zero interest rate).

    Chapter 4 reviews the SDR mechanism; Chapter 5 outlines the sources of income for the IMF; and Chapter 6 outlines the institution’s approach to financial risk management. The publication also includes a list of common abbreviations, a glossary, and an index.

    What’s New

    This publication updates a previous report entitled Financial Organization and Operations of the IMF, first published in 1986 and last issued in 2001 (the sixth edition). That 2001 report reflected the seismic shifts in the global economy and in the IMF’s structure and operations that occurred after the fall of the Soviet Union and the various currency and financial crises of the 1990s. This revised and updated report covers more recent developments, including reform of the IMF’s income model, measures taken in response to the global financial crisis of 2007–09, and the institutional reforms aimed at ensuring that the IMF’s governance structure evolves in line with developments in the global economy.

    The IMF significantly bolstered its lending capacity in the wake of the global financial crisis. This was done to meet the unprecedented financing needs of a number of countries hit hard by the crisis and to help strengthen global economic and financial stability. IMF lending capacity was expanded several ways, including through borrowing, completion of a general quota review that resulted in an agreement to double its quota resources, and implementation of two SDR allocations. Moreover, the IMF refined its general lending framework to better meet member country needs and, in particular, to emphasize measures to prevent crises in the future.

    The IMF also reformed its policies toward low-income countries and significantly increased the resources available to the world’s poorest countries. In November 2010, IMF member countries agreed to a historic governance reform that creates a more representative, all elected Executive Board and increases the voting power of emerging market and developing economies, while simultaneously preserving the voice of the low-income members.

    How to Use This Document

    This publication includes descriptions of the IMF’s financial organization, its policies and lending arrangements, and details on its financial statements. These are meant only to explain and synthesize official IMF documents, records, and agreements. For authoritative versions of these materials, readers should directly consult the official institutional records, which are available at

    Digital technology and the Internet make it easier to create and distribute this type of compendium in multiple formats and also to keep it up to date. This publication will be updated on an annual basis, and in line with the IMF’s financial year on April 30, and it will be available in multiple digital and print formats, including print copies, PDF files available for online viewing and print-on-demand, and formats for eReaders (eBook, iBook, Mobi, Kindle, Nook, and more).2 We will update individual chapters more regularly if there are significant changes to IMF structures or lending facilities or if we uncover errors in the published edition. These updates will be available online and will note the date of the last revision. The version of record will be the latest electronic version published on the IMF’s website and eLibrary.

    We invite your feedback and comments. This publication is meant to answer your questions about the IMF. If some of your questions remain unanswered, please contact us at

    Andrew Tweedie

    Director, Finance Department


    This publication was prepared by staff members of the Finance Department under the direction of Susan Prowse, Advisor. Principal contributors include Elena Budras, Lia Cruz, Joanna Grochalska, Curtis Hatch, Lodewyk Erasmus, Lukas Kohler, Sergio Rodriguez, and Fang Yang. Christine Kadama was the project manager for this publication and also provided outstanding research and information technology support. Yanaisse Arica, Corinne Danklou, and Vanessa Ince provided exceptional administrative support for the project. From the IMF Communications Department, Linda Griffin Kean led the editorial effort and managed production of this publication. In addition, valuable contributions were provided by Mariel Acosta, Alexander Attie, Preet Bhullar, Veerayudh Bunsoong, Andrei Galatanu, Chris Geiregat, Ivetta Hakobyan, Heikki Hatanpaa, Mary Hoare, Hideaki Imamura, Paul Jenkins, Jane Mburu, Maria Mendez, Diviesh Nana, Patrick Njoroge, Breno Oliveira, Andres Perez, Robert Powell, John Ralyea, Tracey Redfern, Rachel Saperstein, Mariusz Sumlinski, and Barry Yuen. Comments and suggestions were also received from other departments in the IMF, including the Legal and Strategy, Policy, and Review Departments.

    IMF Financial Operations provides a summary of financial operations and policies of the International Monetary Fund. It represents a thorough updating of a previous report entitled Financial Organization and Operations of the IMF, first published in 1986 and last issued in 2001. Many descriptions have been simplified in a reader-friendly manner and should not be treated as authoritative statements on IMF policies. The views expressed in this publication are those of IMF staff and do not necessarily represent the views of the Executive Board or their national authorities.


    BISBank for International Settlements
    BPM6Balance of Payments Manual, sixth edition
    CEPCommittee of Eminent Persons
    EACExternal Audit Committee
    ECFExtended Credit Facility
    EFFExtended Fund Facility
    ENDAEmergency Natural Disaster Assistance
    EPCAEmergency Post Conflict Assistance
    ESAFEnhanced Structural Adjustment Facility
    ESFExogenous Shocks Facility
    FCCForward Commitment Capacity
    FCLFlexible Credit Line
    FSAPFinancial Sector Assessment Program
    FTPFinancial Transactions Plan
    FYFinancial Year
    GABGeneral Arrangements to Borrow
    G-20Group of Twenty
    GDPGross Domestic Product
    GFSRGlobal Financial Stability Report
    GLAGeneral Loan Account
    GRAGeneral Resources Account
    GSAGeneral Subsidy Account
    HAPAHigh Access Precautionary Arrangement
    HIPCHeavily Indebted Poor Countries
    IAInvestment Account
    IDAInternational Development Association
    IFIInternational Financial Institution
    IFRSInternational Financial Reporting Standards
    IFSInternational Financial Statistics
    IMFInternational Monetary Fund
    IMFCInternational Monetary and Financial Committee
    LICLow-Income Country
    MDRIMultilateral Debt Relief Initiative
    NABNew Arrangements to Borrow
    NPVNet Present Value
    OECDOrganization for Economic Cooperation and Development
    OPECOrganization of Petroleum Exporting Countries
    PCDRPost-Catastrophe Debt Relief
    PLLPrecautionary and Liquidity Line
    PPPPurchase Power Parity
    PRGTPoverty Reduction and Growth Trust
    PRSPPoverty Reduction Strategy Paper
    PSIPolicy Support Instrument
    QPCQuantitative Performance Criteria
    RAReserve Account
    RAPRights Accumulation Program
    RCFRapid Credit Facility
    REITReal Estate Investment Trust
    RFIRapid Financing Instrument
    RMPResource Mobilization Plan
    SBAStand-By Arrangement
    SCASpecial Contingent Account
    SCFStandby Credit Facility
    SDASpecial Disbursement Account
    SDRSpecial Drawing Right
    SMPStaff Monitored Program
    SSASpecial Subsidy Account
    TBRETime-Based Repurchase Expectation Policy
    TFTrust Fund
    TIMTrade Integration Mechanism
    TMUTechnical Memorandum of Understanding
    UCTUpper-Credit Tranche
    VTAVoluntary Trading Arrangements

    The following symbols have been used throughout this publication:

    . . . to indicate that data are not available

    — to indicate that the figure is zero or less than half the final digit shown, or that the item does not exist

    – between years or months (for example, 2012–13 or January–June) to indicate the years or months covered, including the beginning and ending years or months

    / between years (for example, 2012/13) to indicate a fiscal or financial year

    “Billion” means a thousand million; “trillion” means a thousand billion.

    “Basis points” refer to hundredths of 1 percentage point (for example, 25 basis points are equivalent to ¼ of 1 percentage point).

    FY refers to the IMF’s financial year (May 1–April 30) unless otherwise noted.

    “n.a.” means “not applicable.”

    Minor discrepancies between sums of constituent figures and totals are due to rounding.

    As used in this publication, the term “country” does not in all cases refer to a territorial entity that is a state as understood by international law and practice. As used here, the term also covers some territorial entities that are not states but for which statistical data are maintained on a separate and independent basis.

    1In addition, a complete archive of the Annual Reports issued by the Executive Board is available on the IMF eLibrary at
    2For web PDF files, visit; for other digital formats, visit
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