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Fri, Dec 25, 2009 - Page 10 News List

Profit better than expected: IMF

AFP , WASHINGTON

The IMF said on Wednesday that its profit for the current fiscal year would be better than expected at US$688 million, lifted by crisis lending and favorable exchange rates.

The IMF, which had been losing money before the global economic crisis, increased its forecast for the fiscal year to April 30 from a projection in June of US$453 million in net income.

The Fund’s midyear review said income from lending would be about US$180 million more than anticipated as a result of the vast expansion of its lending during the global crisis.

HELPED

The IMF said its financial position was also helped by the lower value of the dollar against the IMF unit known as a Special Drawing Right, based on a basket of currencies.

Because IMF business is conducted in SDRs, its administrative expenses would be lower than anticipated because of the weaker dollar.

The IMF said gold sales authorized this year to help diversify the fund’s asset base have yielded profits so far of around US$4.7 billion.

Some 212 metric tonnes were sold in October and last month of a total of 403.3 metric tonnes authorized for sale.

The IMF has been investing these profits in an endowment “to generate income on a sustainable long-term basis,” the IMF statement said.

INVESTMENTS

The Washington-based international organization said it expects to earn a total of US$150 million in the current fiscal year from its investments.

In the prior fiscal year the IMF closed its books with a profit of US$126 million, compared with a loss of US$89 million a year earlier.

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