IMF - Thirty- Fifth Issue -- E. Off-Market Transactions in Gold by the Fund

Selected Decisions and Selected Documents of the IMF, Thirty- Fifth Issue -- E. Off-Market Transactions in Gold by the Fund

Prepared by the Legal Department of the IMF
As updated as of December 31, 2010

RESOLUTION

Whereas the Executive Board is considering off-market transactions in gold consisting of sales of up to 14 million ounces of fine gold on the basis of prices in the market to cooperating members with repurchase obligations to the Fund falling due, and acceptance of the same amount of gold from those members in payments of their repurchase obligations falling due to the Fund; and
Whereas those off-market transactions will enable the Fund to place an amount of the sales proceeds equivalent to SDR 35 per ounce of fine gold in the General Resources Account and the balance in the Special Disbursement Account for investments for the benefit of the ESAF-HIPC Trust; and
Whereas the Interim Committee has requested the endorsement by the Board of Governors of this approach as a one-time operation of a highly exceptional nature,

Now, therefore, the Board of Governors hereby resolves that:

The off-market transactions of up to 14 million ounces of fine gold by the Fund that are envisaged will be a one-time operation of a highly exceptional nature that is a part of a broader financing package to allow the Fund to contribute to the resolution of the debt problems of the HIPCs at the turn of the millennium and to the continuation of concessional operations to support countries’ efforts to achieve sustained growth and poverty reduction.

Resolution No. 54-10,
September 24, 1999

Source: http://www.imf.org/external/pubs/ft/sd/index.asp?decision=54-10