Program 1.2: Payments to international financial institutions
The objectives of program 1.2 are to:
- make payments to the IMF, under the International Monetary Agreements Act 1947, to promote international monetary cooperation, exchange stability and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustments; and
- make payments to other international financial institutions, as required, to facilitate the achievement of government objectives in international forums. This includes strengthening the international financial system, support for development objectives through the multilateral development banks, and multilateral debt relief.
The program deliverables are:
- payments of subscriptions to international financial institutions, including the IMF, are made with due regard to minimising cost and risk for Australia.
Key performance indicators
The key performance indicators are:
- financial transactions with the international financial institutions, including the IMF, are timely and accurate.
Analysis of performance
Australia makes significant financial commitments to international financial institutions to support their operations.
The Treasury manages most of Australia’s financial relations with the IMF and capital contributions to the World Bank Group (the International Bank for Reconstruction and Development, the Multilateral Investment Guarantee Agency, the International Development Association and the International Finance Corporation), the Asian Development Bank and the European Bank for Reconstruction and Development.
The Treasury conducted routine financial transactions to manage existing obligations. These were timely and efficient (see Table 1 below).
|Nature of transaction||Number of transactions||Total $’000|
|IMF net remuneration*||Revenue||4||3,066|
|IMF special drawing rights allocation charges*||Expense||4||11,289|
|IMF financial transactions plan||Financing transaction||5||296,135|
|IMF new arrangements to borrow||Financing transaction||4||436,586|
|Asian Development Bank general capital increase||Investing transaction||1||14,812|
|International Bank for Reconstruction and Development general and selective capital increases||Investing transaction||1||12,172|
*The proportion of the IMF net remuneration and charges referring to May and June is based on estimated figures as of 30 June 2012.