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Programme 1.2: Payments to International Financial Institutions

Programme objective

Payments are made to the International Monetary Fund (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.

Payments are made to other international financial institutions, as required, to facilitate the achievement of government objectives in international forums, including strengthening the international financial system, support for development objectives through the multilateral development banks, and multilateral debt relief.

Please see Part 5 Appendices — Australia and the International Financial Institutions for more information regarding the IMF and the World Bank Group.

Programme deliverables

Payments to international financial institutions, including the IMF, are made with due regard to minimising cost and risk for Australia.

Key performance indicators

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.

In 2013-14, the Treasury conducted routine financial transactions to manage existing obligations. These were timely and efficient (see Table 1 over).

Table 1: Financial transactions with international financial institutions in 2013-14(a)
Nature of transaction Number of transactions Total $’000
Receipts
  IMF net remuneration Revenue 4 1,299
  IMF new arrangements to borrow — interest Revenue 4 880
Payments      
IMF special drawing rights allocation charges(b) Expense 4 4,878
IMF new arrangements to borrow      
— loans Financing transaction 6 209,461
— repayments   5 -130,899
IMF maintenance of value Financing transaction 1 455,936
Asian Development Bank general capital increase Investing transaction 1 16,510
International Bank for Reconstruction and Development general capital increase Investing transaction 1 10,534

Transactions are reported on a cash basis. There were no transactions relating to the European Bank for Reconstruction and Development, the International Finance Corporation or Multilateral Investment Guarantee Agency. Australia is a participant in the IMF’s Financial Transactions Plan. More information on Australia’s financial transactions with international financial institutions, including the IMF, is at Part 5 Appendices — Australia and the International Financial Institutions.

This amount includes the annual assessment fee paid to the SDR Department.