- The Fund's General Resources Account (GRA) net income is projected to remain strong for FY 2025, and is estimated at about US$3.0 billion (SDR 2.3 billion). The positive net income trend is expected to be maintained in FY 2026.
- The Executive Board approved the first annual distribution of net income, transferring about US$1.81 billion (SDR 1.38 billion) from the GRA into the Interim Placement Administered Account (IPAA) established in October 2024 as part of a framework to facilitate the generation of Poverty Reduction and Growth Trust (PRGT) subsidy resources.
- Precautionary balances are expected to remain above the medium-term target of SDR 25 billion and to reach SDR 25.9 billion (US$34.4 billion) by end FY 2025, after the distribution into the IPAA.
Washington, DC: On April 18, 2025, 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, 2025.
FY 2025 Income Position and Related Decisions
GRA net income, before the distribution and related transfer of about US$1.81 billion (SDR 1.38 billion) into the IPAA, is anticipated at about US$3.0 billion (SDR 2.3 billion). Total comprehensive income for FY 2025, including the estimated pension-related remeasurement gain [1] and the estimated retained income in the investment account of about US$1.3 billion (SDR 1.0 billion) in addition to GRA net income, is expected to reach US$4.5 billion (SDR 3.4 billion).
Given the strong income position, the Fund's precautionary balances, after the distribution into the IPAA, are expected to increase to US$34.4 billion (SDR 25.9 billion) at the end of FY 2025, above the medium-term target of SDR 25 billion.
The Executive Board adopted several decisions that are relevant to the Fund's finances. These included decisions to: (i) reimburse costs to the GRA for the expenses of conducting the business of the SDR Department and for the operational cost of administering the Resilience and Sustainability Trust (RST); (ii) transfer a portion of the income from the Fixed-Income Subaccount and the Endowment Subaccount to the GRA for meeting FY 2025 administrative expenses; (iii) place any pension-related remeasurement gain [2] to the Special Reserve; (iv) distribute US$1.81 billion (SDR 1.38 billion) from net income to facilitate new PRGT subsidy contributions and to place the distribution amount in the IPAA; (v) place residual GRA net income to the Special Reserve; and (iv) transfer currencies equivalent to the increase in the Fund's reserves from the GRA to the Investment Account.
Projections of the Fund's income and precautionary balances remain susceptible to risks stemming from the uncertain global economic environment and financial market volatility. The FY 2025 annual financial statements will update the income position for the impact of changes in key assumptions made at the time of the April projections.
FY 2026 Income Position and Lending Rate
GRA net income for FY 2026 is expected to remain strong, with projected annual net income of about US$2.3 billion (SDR 1.7 billion), before any distribution. However, these projections remain susceptible to financial market volatility, intensifying downside risks to global growth, and uncertainties around the global interest rate environment that are expected to impact the performance of the Fund's investment and retirement plan asset portfolios. The projections are also sensitive to the timing and amounts of disbursements under approved and projected lending arrangements.
The IMF's basic lending rate for member countries' use of GRA credit is the SDR interest rate plus a fixed margin. The Executive Board agreed to keep the margin for the rate of charge at 60 basis points over the SDR interest rate, the level set by the Executive Board in October 2024 for the rest of FY 2025 and FY 2026.
[1] IAS 19 'Employee Benefits', requires the actuarial remeasurement of post‑employment obligations.
[2] In case of a remeasurement loss, such loss up to SDR 1,020 million would be charged against the General Reserve and any loss exceeding that amount would be charged against the Special Reserve.
