IMF Has $2.79 Billion Windfall Profit on Gold Sale, Debates Use

Monday, 11 Apr 2011 07:14 AM

 

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The International Monetary Fund started discussions on how to allocate $2.79 billion of windfall profit from gold sales, considering three options.

The gold sales, which were initiated in October 2009 and ended in December 2010, generated more profit than expected because of higher than anticipated gold prices, the IMF said.

The institution agreed in September 2009 to dispose of 403.3 metric tons of bullion as part of a plan to shore up its finances and lend at reduced rates to low-income countries. More than half of the gold amount was acquired by the central banks of India, Mauritius, Sri Lanka and Bangladesh, according to past announcements.

Many executive directors on the IMF board supported using the extra profit for lending at lower rates, the IMF said. Many also backed putting it toward the fund’s precautionary balances or putting it in the endowment, where most of the profit is already going to go, it said.

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