International Monetary Fund

Public Accounts of Canada 2023 Volume I—Top of the page Navigation

Subscriptions

This account records the value of Canada’s subscription (its “quota”) to the capital of the International Monetary Fund (IMF).

The amount by which the sum of Canada's subscriptions plus loans to the IMF under special facilities exceeds the IMF's holdings of Canadian dollars represents the amount of foreign exchange which Canada is entitled to draw from the IMF on demand for balance of payments purposes. The subscription is expressed in terms of SDR, a unit of account defined in terms of a "basket" of five major currencies, the Euro, the US dollar, the British pound sterling, the Japanese yen and the Chinese renminbi.

Canada has accumulated its subscriptions through settlements to the IMF in Canadian dollars, gold and SDRs. Annual maintenance of value payments are made to, or received from, the IMF when the Canadian dollar depreciates or appreciates against the SDR, in order to maintain the SDR-value of the IMF's holdings of Canadian dollars.

In 2023, payments and other charges consisted of a valuation adjustment of $992 million.

Loans

This account records the value of interest-bearing loans made under Canada's multilateral and bilateral lending arrangements with the IMF. The purpose of these arrangements is to provide temporary resources to the IMF, which works to promote economic growth and safeguard the stability of the international monetary system.

There are two outstanding lending arrangements with the IMF outside of the quota system: the New Arrangements to Borrow (NAB) and the temporary bilateral borrowing agreements (BBAs).

Canada’s current participation in the NAB is governed by the October 2020 NAB Decision, effective from January 2021 to December 2025. Canada’s maximum commitment under the NAB is 7,747 million SDR. As of March 31, 2023, SDR 37 million or $67 million was outstanding to the IMF under the NAB (SDR 76 million or $132 million as at March 31, 2022).

Canada also participates in the BBAs, which further increase the financial resources the IMF can borrow from member countries. In early 2017, Canada extended an SDR 8,200 million time-bound precautionary credit line to the IMF that was in effect until 2020, and was not drawn upon. A successor BBA, which took effect on January 1, 2021, lowered BBA commitments to offset the increase in the NAB. Canada's commitment was lowered to SDR 3,532 million.

Collectively, pursuant to the Bretton Woods and Related Agreements Act, the outstanding loans under multilateral and bilateral arrangements with the IMF cannot exceed SDR 13,000 million, or any other amount that may be fixed by the Governor in Council, at any given time. Canada’s maximum commitments under the NAB and BBA of SDR 11,279 million fall within this limit.

At March 31, 2023, a total of SDR 37 million or $67 million was outstanding under these arrangements. Amounts advanced under these arrangements are considered part of the Official International Reserves of Canada.

Resilience and Sustainability Trust

Canada entered into an agreement, pursuant to the Bretton Woods and Related Agreements Act, with the Resilience and Sustainability Trust (RST) in September 2022 to lend SDR to the RST , up to the equivalent of $2,000 million. Drawings upon the facility may be made by the RST  through November 30, 2030. The helps low-income and vulnerable middle-income countries address longer-term challenges, such as those related to climate change and pandemic preparedness.

RST loan account

No loans were provided during the year 2023.

RST deposit account

Under the agreement, in October 2022, Canada deposited SDR 228 million in the RST  deposit account, an amount equivalent to $400 million. The amount deposited by Canada earns interest, which is paid quarterly, and matures November 30, 2050. Further, Canada’s deposit, and amounts so deposited by other contributors to the RST , are invested by the RST , with investment gains and losses being allocated to Canada’s deposit on a pro-rata basis.

Contribution to RST reserve account

Also under the agreement, in October 2022 Canada made a contribution of SDR 23 million, an amount equivalent to $40 million, to the RST  reserve account, which is meant to cover the RST 's credit and liquidity risk, and administration costs. Canada’s contribution to the RST reserve account does not earn interest, has no fixed maturity, and was recognized as a transfer payment expense.

Notes payable

This account records non-marketable, non-interest bearing notes issued by the government to the IMF. These notes are payable on demand and are subject to redemption or re-issue, depending on the needs of the IMF for Canadian currency.

Canadian dollar holdings of the IMF include these notes and a small working balance (initially equal to one-quarter of one percent of Canada’s subscription) held on deposit at the Bank of Canada. In 2023, notes payable to the IMF increased by $411 million.

Public Accounts of Canada 2023 Volume I—Bottom of the page Navigation

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