IMF modifies disclosure policy to address deletions, delay

News|Bretton Woods Project|21 November 2005|update 48|url
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The IMF has taken steps that may reduce the number of deletions made in the publicly disclosed versions of its key reports about member countries, including Article IV reports.

The moves come after an internal report found that more than one-third of the published reports "incorporate substantive changes" as a result of corrections and deletions requested by the subjects of the reports. About 60 per cent of these changes entailed "some diminution of candour"; in five per cent of the cases "a key message was significantly altered" according to IMF research. The board debate over "candour" was extensive and resulted in policy changes designed to define exactly what information can be deleted. The board approved a revised definition of "highly market-sensitive" information and added a new category to prevent release of premature information that would undermine governments' ability to implement policies. The board did not accept a staff suggestion to disclose to the public the nature of the modifications made in the public version.

IMF staff judged the disclosure policy to be "broadly satisfactory." Since adopting its "voluntary but presumed" release policy in 2003, the Fund has seen the numbers of country reports disclosed increase from 67 per cent to 77 per cent, although the disclosure rate remains about 60 per cent for developing countries. In one small step to encourage more publication, the Fund for the first time names the countries whose governments continue to veto the release of the two major IMF country reports: the Article IV and Use of Funds reports. The list of 32 includes Brazil, Egypt, Malaysia, Saudi Arabia, Thailand, Uzbekistan and Venezuela.

Another trend uncovered by the report is a growing time lag in the release of reports. The average delay has increased from about a month after board action to almost a month and a half. The record for delayed release is held by South Africa, at 215 days, followed by Mexico, at 207 days.

The next board review of the disclosure policy will be in three years.

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Published: 21 November 2005 , last edited: 21 November 2005

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