Posts Tagged Adequacy of Precautionary Balances

IMF Executive Board reviews the Adequacy of Precautionary Balances

9 April 2012
 
The Executive Board of the International Monetary Fund (IMF) reviewed the adequacy of the Fund’s precautionary balances applying the more transparent and rules-based framework that was developed in 2010.
 
Precautionary balances (comprising the Special Contingent Account (SCA-1) and retained earnings from normal operations held in the Fund’s reserves) are one element of the IMF’s multi-layered framework for managing financial risks and are available to absorb possible financial losses or to help protecting the value of members’ positions in the IMF financing mechanism.
 
For more information please refer to Review of the Adequacy of the Fund’s Precautionary Balances 2010 and Review of the Adequacy of the Fund’s Precautionary Balances 2012.

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