Coronavirus (COVID-19) updates from the Australian Government

Part 2: Report on performance (continued)


Program 1.2: Payments to international financial institutions

Program objective

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.

Program deliverables

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 substantial financial payments 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).

Table 1: Financial transactions with international financial institutions in 2012-13
  Nature of transaction Number of transactions Total $’000
 IMF net remuneration* Revenue 4 1,034
 IMF special drawing rights allocation charges* Expense 4 3,489
 IMF financial transactions plan Financing transaction 2 96,875
 IMF new arrangements to borrow Financing transaction 7 204,280
 Asian Development Bank general capital increase Investing transaction 1 16,239
 International Bank for Reconstruction and Development general and selective capital increases Investing transaction 1 9,623

*The proportion of the IMF net remuneration and charges referring to May and June is based on estimated figures as of 30 June 2013.