IMF targets gold sale profits to help low-income countries
Baku, February 25 (AZERTAC). The International Monetary Fund (IMF) approved the distribution of 1.1 billion U.S. dollars in gold sales profits to members on condition that they contribute most of their gains to the IMF`s lending program for low-income countries.
"Under the decision approved today, the distribution will be effected only when members provide satisfactory assurances that they would make contributions equivalent to at least 90 percent of the amount distributed," the IMF said in a statement.
The time-frame of the operation is therefore contingent upon receiving such assurances from the IMF membership, the statement noted.
The gold sales profits, which are part of the IMF`s general resources, have to be first distributed as dividends to all IMF members in proportion to their quota shares. Individual members then will decide voluntarily to return a corresponding amount as a contribution to the Poverty Reduction and Growth Trust, the lending program for low-income countries.
"This is an important contribution to ensure the Fund`s continued support of its low-income members through adequate financing of the Poverty Reduction and Growth Trust. I urge Fund members to quickly confirm their pledges so that we can move forward," said IMF managing director Christine Lagarde.
The 1.1 billion U.S. dollars is part of the 10.6-billion-dollar profits from 2009-2010 gold sales. In 2008, the IMF decided to put at least 6.8 billion of the profits in an endowment to diversify its income away from lending returns. The executive board "has yet to decide" how to use the remaining 2.7 billion of profits on the gold sales, the statement said.
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