Page 265 - DMGT401Business Environment

Business Environment

Notes
A second question, just technical-so does India pay you in SDRs for this transaction?
And finally, are you optimistic you won't need to go to the market to sell all of the gold?

SENIOR IMF OFFICIAL: On the first question-well, the decision to sell is very clearly
limited to 403 tons. That's the decision taken by the Board. And so far the Board has also
decided that a certain amount, which was roughly SDR 500 to 600 million of resources
linked to the sale would be provided for concessional subsidies for concessional lending.
So those are the decisions that have been taken so far.
As I said, we haven't yet sold all the gold, so we don't yet know whether, at the end of the
day, we will have more than we were originally anticipating, or how much more. So I
think it's probably too early to speculate on that.
In terms of payment, the payments are in currencies, not in SD So the payment will be
settled in the major currencies that make up the SDR basket.
The third question was-sorry, I missed the third question.
QUESTIONER: Whether you're optimistic that you won't need to sell on the market.
SENIOR IMF OFFICIAL: Well, again, this depends whether there's further interest from
the official sector. If not, we would still proceed as we've planned previously. And we
have indicated that before we start any on-market sales we would inform the market that
we are beginning those sales.
Again, it's probably too early to tell, but we are certainly proceeding with our original
plans, and we'll see if there's more off-market demand or we'll begin the on-market sales.
QUESTIONER: You'd said that you plan to be transparent and provide the public with
announcement of the progress. And I'm wondering why the decision was made not to
make an announcement during hours when the market's open for trading. You know, it's
six o'clock now. The market's kind of closed.

SENIOR IMF OFFICIAL: Well, the markets are always open somewhere … and the market
will be opening, I guess, in Asia pretty soon. So I don't think there's any particular good
time to make these announcements.
As I said, the transactions were only concluded on Friday, and we wanted to get the
announcement out as quickly as possible.

Source: imf.org

12.2 International Bank for Reconstruction and Development
(World Bank)

The World Bank is one of the world's largest sources of finance and knowledge to its member
countries to improve the condition of health centres, provide water and electricity, fight disease,
and protect the environment. The World Bank is not a "bank" in the common sense. The World
Bank is an international organization owned by the 184 countries both developed and developing
that are its members. Since inception in 1944, the World Bank has expanded from a single
institution to a closely associated group of five development institutions.
In June 1944, 17 countries met in Atlantic City, USA to prepare the agenda for the Bretton Woods
conference, and 44 countries which signed the final agreement established the Bank. India was
one of the 17 countries and one of the 44 countries which signed the agreement. It was India
which suggested the name "International Bank for Reconstruction and Development" (IBRD) to

258 LOVELY PROFESSIONAL UNIVERSITY