International Monetary Fund

Public Accounts of Canada 2024 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-valueof the IMF's holdings of Canadian dollars.

In 2024, receipts and other credits consisted of a foreign exchange valuation adjustment of $286 million.

The IMF's Board of Governors conducts General Review of Quotas (GRQs) at least every five years to assess the adequacy of quotas (i.e., size and distribution). On December 15, 2023, the IMF Board of Governors voted to conclude the 16th GRQ with an increase in all IMF members’ quotas by 50 percent. A condition of the quota increase is to maintain the IMF's lending capacity by reducing reliance on borrowed resources, specifically through a rollback of the NAB (see below). Once fully implemented, Canada’s quota share will be increased from SDR 11,024 million to SDR 16,536 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 SDR 7,747 million. As of March 31, 2024, the amount was fully reimbursed under the NAB (SDR 37 million, or $67 million, was outstanding under the NAB as at March 31, 2023). Once the outcomes of the 16th GRQ become effective, Canada’s maximum commitment under the NAB will be reduced to SDR 6,486 million. 

Canada also participates in the BBAs, which further increase the financial resources the IMF can borrow from member countries. Under the current BBA's, which took effect on January 1, 2021, Canada’s commitment is SDR 3,532 million. The BBAs have never been activated by the IMF, and no draws have been made on Canada’s commitment. The current BBAs were set to expire at the end of 2023, however in 2023 all participants agreed to extend the terms through end of 2024. The IMF is currently working with all participating countries (including Canada) to allow for an extension of the BBAs, as a transitionary measure until the outcomes of the 16th GRQ become effective.

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, 2024, no amount was outstanding under these arrangements. Amounts advanced under these arrangements are considered part of the Official International Reserves of Canada.

International Monetary Fund Trusts

Canada lends funds to trusts established by the IMF to support low-income and middle-income members. For these trusts, the total revolving loan authority pursuant to the Bretton Woods and Related Agreements Act is set at SDR 1,000 million, or such greater amount as may be fixed by the Governor in Council. The amount was fixed at SDR 4,200 million by the Governor in Council on February 19, 2024. Certain loans to the IMF's Poverty Reduction and Growth Trust that are subject to this authority are included in other loans, investments and advances, details of which are provided in Section 9 of this volume.

Poverty Reduction and Growth Trust

PRGT loan account

This account records the value of loans to the IMF's Poverty Reduction and Growth Trust (PRGT) in order to provide financial assistance to qualifying low-income countries as authorized by the Bretton Woods and Related Agreements Act.

Of Canada’s SDR 2,000 million revolving commitment to the PRGT loan account, total loans of SDR 960 million are outstanding as at March 31, 2024 (SDR 2,000 million commitment, with total loans outstanding of SDR 710 million, as at March 31, 2023).

Of the total outstanding loans to the PRGT loan account as at March 31, 2024, SDR 276 million is included in the foreign exchange accounts (nil as at March 31, 2023). The outstanding balance was translated into Canadian dollars at the year-end closing rate of exchange (1 SDR /$1.7922 CAD). During the year, transactions included issuances and a foreign exchange valuation adjustment. In addition to the PRGT loans included in the foreign exchange accounts, SDR 684 million in outstanding loans to the PRGT as at March 31, 2024 (SDR 710 million as at March 31, 2023) is included in other loans, investments and advances (refer to Section 9 of this volume for details). 

PRGT deposit and investment account

In March 2024, Canada and the IMF signed an agreement for Canada to provide a loan to the PRGT deposit and investment account of SDR 700 million, with issuance scheduled for April 2024. The amount lent by Canada will earn interest and matures March 15, 2034. Further, Canada’s loan, and amounts lent by other contributors to the PRGT, will be invested by the IMF, with investment gains and losses being allocated to Canada’s loan on a pro-rata basis.

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 RST 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

Under the agreement, in December 2023, Canada lent SDR 37 million to the RST loan account, an amount equivalent to $66 million at the time of lending. The loan earns interest, which is paid quarterly, and has a maturity date of December 2043.

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 at the time of deposit. The amount deposited by Canada earns interest, which is paid quarterly, and matures November 30, 2050. Further, Canada’s deposit, and amounts 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 at the time of contribution, 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 2024, notes payable to the IMF increased by $385 million.

Public Accounts of Canada 2024 Volume I—Bottom of the page Navigation

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