The executive board of the International Monetary Fund (IMF) proposed Monday a "new and sustainable" framework for the institution's finances.
The new income and expenditure framework was designed to close a projected 400 million U.S. dollars budget deficit over the next few years, said a statement issued by the IMF.
IMF Managing Director Dominique Strauss-Kahn applauded the framework, calling it "a landmark agreement that will put the institution on solid financial footing and modernize the IMF's structure and operations."
The executive board agreed to revamp the fund's "income model from one that primarily relies on lending to one that generates funds from various sources," said the statement.
At the same time, the board considered the institution's medium-term budget for the financial years 2009-2011, which includes deep spending cuts, and approved the administrative budget for financial year of 2009(from May 1, 2008 to April 30, 2009).
The IMF, with these measures, expects to close the projected income-expenditure gap of 400 million dollars within a few years, the press release said.
The wide-ranging overhaul plan could lead to the eventual sale of 403.3 tons of the IMF's gold holdings.
The sale, amounting to some 12 percent of the IMF's total gold reserves, cannot occur without congressional approval as well as legislative action in most of its 185 members.
If approved, gold sales would likely be conducted over several years to avoid any risk of market disruption, according to the press release.
The IMF faces a budget shortfall of some 140 million dollars for the fiscal year 2008 that ends on April 30.
Source:Xinhua
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