News Briefs
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The IMF's Board of Governors approved on May 5 a broadening of the Fund's investment authority, a key element of the proposed new IMF income model that will allow the institution to generate revenue from a variety of sources.
So far, the IMF has largely been dependent on income earned from lending to finance its operations. But the IMF's lending has fallen in recent years, reducing income earned.
The IMF's broader investment mandate will enable the institution to increase the average expected return and adapt its investment strategy over time. The investment policies will reflect the public nature of the funds to be invested and include safeguards to ensure that IMF investments do not lead to actual or perceived conflicts of interest.
The new income model also foresees the creation of an endowment funded by limited gold sales. Once established, the endowment with profits from the gold sales will be invested.
The IMF Executive Board approved a three-year, $79 million Poverty Reduction and Growth Facility arrangement for Zambia in support of the country's policies to alleviate poverty and sustain growth. The June 4 decision enables Zambia to request an initial disbursement of $11 million.
IMF Deputy Managing Director Takatoshi Kato commended the Zambian authorities for their "prudent macroeconomic policies, which, in the context of high copper prices and debt relief, contributed to robust economic growth."
The IMF Executive Board approved in late May a disbursement of $21.2 million to help Mali finance costs arising from higher food and oil import prices.
The disbursement is the first installment of Mali's three-year, $46 million arrangement under the Poverty Reduction and Growth Facility. In approving the loan, the IMF Executive Board supported a front-loaded disbursement schedule for the country, whose economy has doubled in size since the early 1990s but remains vulnerable to shocks.
IMF Managing Director Dominique Strauss-Kahn announced that he will appoint four new IMF department directors: Olivier Blanchard, Research; Antoinette Sayeh, African; Andrew Tweedie, Finance; and Reza Moghadam...
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