Group of 10 communiqué: Vigilance needed to maintain IMF's strong financial position

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The Finance Ministers and Central Bank Governors of the countries of the Group of 10 met in Washington, D.C., on October 3, 2004. John W. Snow, Secretary of the Treasury of the United States and current Chair of the Group of 10, presided. Ministers and governors took note of reports from Sir Andrew Large, Chair of the Deputies of the Group of 10; John Taylor, Chair of Working Party No. 3 of the Organization for Economic Cooperation and Development (OECD); Malcolm Knight, General Manager of the Bank for International Settlements; and Rodrigo de Rato, Managing Director of the IMF.

Ministers and governors reviewed the financial position of the IMF. They noted that the strong financial position of the IMF is essential for the fulfillment of its responsibilities. This strength reflects, among other factors, the quality of IMF conditionality, the solid history of repayment of IMF loans by borrowers, preferred creditor status, and the IMF's large gold holdings. Moreover, measures have been taken in recent years to reinforce the financial integrity of the IMF, including a strengthened framework for exceptional access in the context of capital account crises, involving the private sector in the resolution of crises, a proactive arrears strategy, and the continued buildup of IMF reserves. Ministers and governors agreed that these measures must be applied rigorously in order for the financial position of the IMF to remain...