IMF Review of Fund’s Income Position for FY 2022 and FY 2023-2024

  • Net operational income is anticipated to remain strong for FY 2022 and to continue in FY 2023 and FY 2024 but subject to greater than normal uncertainties. A projected unrealized pension-related accounting gain is expected to increase overall Fund income in FY 2022.
  • The Executive Board agreed to maintain the margin for the rate of charge on IMF lending unchanged at 100 basis points for financial years FY 2023 and FY 2024.
  • Washington, DC: On April 28, 2022, the Executive Board of the International Monetary Fund (IMF) completed its annual review of the Fund’s income position for the financial year (FY) ending April 30, 2022.

    FY 2022 Income Position

    Net operational income, of about SDR 1.5 billion (US$2.1 billion), is anticipated for FY 2022, reflecting mainly the ongoing elevated use of Fund credit. The actuarial remeasurement of staff retirement plan assets and liabilities is projected to make an unrealized contribution of about SDR 0.5 billion (US$0.7 billion) to the net income for the year.[1]Overall net income is expected to reach SDR 2.2 billion (US$3.1 billion) after adding estimated investment income in the Endowment Subaccount of SDR 0.2 billion (US$0.3 billion). Net income excluding the impact of IAS 19 gains and losses will increase the Fund’s precautionary balances, which are projected to rise to SDR 20.9 billion (US$29.1 billion) at end‑FY 2022.

    The Executive Board also adopted several other decisions that are relevant to the Fund’s finances. These included decisions to: (i) place the pension-related remeasurement gain in the special reserve and the remainder of net income equally in the special and general reserves; (ii) transfer currencies equivalent to the increase in the Fund’s reserves from the General Resources Account (GRA) to the Investment Account; (iii) retain the income of the Fixed-Income Subaccount and Endowment Subaccount for FY 2022 in the Investment Account; and (iv) reimburse costs to the GRA for the expenses of conducting the business of the SDR Department.

    Projections of the Fund’s income remain subject to greater than normal uncertainties as economic pressures and the war in Ukraine continue to weigh heavily on the recovery from the pandemic. Changes in key assumptions such as the discount rate used to measure the Fund’s retirement plan obligations and asset returns can have a large impact on the actual outcome. The FY 2022 annual financial statements will update for the impact of changes in key assumptions made at the time of the April projections.

    FY 2023-2024 Income Position and Lending Rate

    As noted above, operational income for FY 2023 and FY 2024 is expected to remain strong, with projected annual net income of SDR 2.1 billion (US$3.0 billion) for both years. However, these projections are subject to a high degree of uncertainty related to the scale of new lending associated with macroeconomic developments and the varying paths to recovery; as well as the timing and amounts of disbursements under approved arrangements . Prospects for recovery remain uncertain as the war in Ukraine and the lingering effects of the pandemic combine to increase inflationary pressures; and are likely to impact actuarial assumptions such as the discount rate, and the performance of the Fund’s investment and retirement plan asset portfolios. Positive projected net income should allow the Fund to continue to accumulate precautionary balances.

    The IMF’s basic lending rate for member countries’ use of IMF credit is the SDR interest rate plus a fixed margin. The Board sets the margin for a period of two financial years, in line with the principle that the margin should be stable and predictable. The Executive Board agreed to maintain the margin for the rate of charge unchanged at 100 basis points for financial years FY 2023 and FY 2024.


    [1]IAS 19 ‘Employee Benefits’, requires the actuarial remeasurement of post‑employment obligations.

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