International Monetary Fund

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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 special drawing rights (SDR), a unit of account defined in terms of a "basket" of four major currencies, the Euro, US dollar, British pound sterling and Japanese yen.

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 2014–2015, payments and other charges consisted of a valuation adjustment of $246 million.

Loans

This account records the value of interest‑bearing loans made under Canada's multi‑lateral and bi‑lateral borrowing arrangements with the IMF. The purpose of these arrangements is to provide temporary resources for IMF‑member countries requiring balance of payment assistance.

There are two outstanding lending arrangements with the IMF outside of the quota system: the multi‑lateral New Arrangements to Borrow (NAB) and General Arrangements to Borrow (GAB).

Canada's participation in the expanded NAB became effective on March 11, 2011. The maximum lending by Canada to the IMF under these arrangements is limited to SDR 7,624 million. As at March 31, 2015, SDR 775 million or $1,353 million (SDR 975 million or $1,665 million in 2014) in lending have been provided to the IMF under the NAB.

Canada also participates in the GAB which was most recently renewed in December 2013. The maximum lending by Canada to the IMF under these arrangements is limited to SDR 893 million. As at March 31, 2015, no lending had been provided to the IMF under the GAB.

Collectively, the outstanding loans under multi‑lateral arrangements with the IMF cannot exceed SDR 8,517 million at any given time. This reflects the maximum commitment under both the NAB and GAB.

At March 31, 2015, a total of SDR 775 million or $1,353 million was outstanding under these arrangements. Amounts advanced under these arrangements are considered part of the Official International Reserves of Canada.

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 2014–2015, notes payable to the IMF increased by $1,543 million.

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