A Questionnaire for the IMF

version 1, Tuesday, August 19, 2014

version 2, Wednesday, February 10, 2016

version 3

Thursday, March 3, 2016

Authored by

Naima Mouali

In the name of God

and the International Community

email:  united_chambers@firemail.de    voice: 32 465 807 278   fax: 1 206-339-7486

To the attention of :

Her Excellency Madame Christine Lagarde

Managing Director, IMF

International Monetary Fund

700 19th Street, N.W.

Washington, D.C. 20431

Brussels, Tuesday 19 August, 2014

Your Excellency Madame Lagarde,  

As a future partner, representing the private sector, it is my greatest honor to share my opinion about the Annual Report 2013 and 2014 and the related financial statements.  

Attached you will find a list of questions about the shortcomings which I found in the Annual Reports of 2013 and 2014, and in the related financial statements.  

Could you please answer these questions and perhaps you may apply the corrections in the annual report of 2015 ?  


I thank you very much, Your Excellency.   I am  looking forward to receiving your answers on the questions.  

Yours sincerely,

Naima Mouali


United Chambers of Commerce & Industry

A Questionnaire for the IMF

Concerning the IMF Strategy :

  1. Do you believe the IMF Quota-system cannot be altered and should not be altered in any way ?

  1. Do you think that all the 189 members of the IMF understand the Quota System and the Special Drawing Rights ?  I would like a yes or no answer

  1. If the strategy is poverty reduction, then the SDR system and the quota system are contradicting this strategy.  Is it possible to align the SDR and the quota system with proven poverty reduction strategies ?

  1. The IMF organization chart does not contain a department related it's strategy (which is the poverty reduction).    The operational budget of the General Department does not reflect expenditures related to the poverty reduction or the IMF's strategy.  The annual reports does not contain any achievements in this field, no future plans, no forecasts of expenditures in for this domain, nor a global percentage of poverty reduction.   Could you please update the IMF annual reports to reflect the main strategy of the IMF ?

  1. The IMF Annual Report 2013 preaches stability.  When you take fact sheet with IMF lending (http://www.imf.org/external/np/exr/facts/howlend.htm ) and read the section with the heading entitled “The changing nature of IMF lending”.  You will clearly understand from that section that the IMF admits needing a crisis for making business.  Is this the real strategy ?  Do you think that without instabilities like disasters and crisis, whether humanitarian, natural or financial, or whether due to terrorism, the IMF wouldn't exist ?  

Concerning the Annual Report 2013 and the Financial Statements :

  1. In the annual report there is no information about any milestones or something about what the IMF has achieved in 2012 and 2013.   The text of the annual report didn't change for 10 years.   Could you provide sample cases about the IMF programs and success stories, that illustrate what is possible with the IMF, please ?

  1. There is no reporting on the taxes related to income and the earnings, or under which tax regime you are operating.  The nature of our contributions to the IMF is tax money.   It would be fair to continue respecting the nature of the funds.  The fiscal authorities of the USA where the IMF is operating are mentioned nowhere in your reports, and we would like to learn about their tax system to improve our economies, through the IMF.  Isn't the IMF about solidarity between the nations ?   Could you please a letter from the local tax authorities confirming the reception of the IMF file, or proof that IMF is exempted from taxes, or the most recent tax return check, or the latest tax declarations ?  

  1. The operational budget is not sufficiently in details.  The following details are missing : number of staff, wages, benefits, retirement pensions, training, health care and other compensations, social charges, insurances, payroll charges and other personnel expenses (see financial statement of the general department on page 8 of appendix 6.  There is some administrative expenditure related to personnel on page 58 in the annual report, but I am rejecting it because there is no break down.   Could you please provide a break down like in a classic company balance sheet, please ?

  1. The operational budget contains no information about any procurement or purchases and the related trade debts.  Any duties and taxes (for example for the purchasing of foreign currencies like the Euro, the Yen and the Pound Sterling) are not mentioned.   No building, no furniture, no leasing contracts.  There is only a total reported for the fixed assets, on page 17, but the figures don't convince me unless broken down in specific assets.   On page 57 of the annual report, they mention building renovation, but without more details like e.g.: architecture, refurbishment, utility, contractors etc.   Could you please add these items and include pictures of the building renovation ?

  1. The financial statement of the general department does not reflect the cost centers on the organization chart ([1]).  The loans or the loan mass of the Directors and the Managers per department are not specified, the income and expenses per geographic area is also not specified.   Could you please adapt your organization chart to the operational financial statements, or adapt your operational financial statements to the organization chart ?

  1. There is no information about any saving deposits, bonds and securities or other income from financial assets, apart from gold and the IMF's own SDR (in your appendix 1), which the developing countries buy for the IMF.  Could you please report about any saving deposits and securities in the income of 2013 for the IMF ?

  1. What is missing everywhere in this financial report is the cash flow projections.  That is when the cash is actually going to come, so that you can plan the IMF business to generate cash you need for staying out of debt.   The IMF didn't report the total cash-in against the total cash-out.    Could you please add an estimate of cash flow projections for the next 2 financial years ?

  1. On page 42 of the financial statement the total comprehensive income is reported as a loss. Why was this income reported as as loss ?  

  1. Why didn't you put the figures between brackets, if it were a loss ?  


  1. The interests from the SDR holdings is normally an income for the SDR buyers.  The SDR buyers are the members.   In note 6, on page 16 in the financial statement, they talk about “interests and charges”.  The note says that the IMF levies charges on the SDR holdings. On page 6 you will see that the interests of the SDR are considered an income for the IMF.  On page 7 you will see that the “interests and charges” concerns the same amount of money, which is reported as an income, but put between brackets (as a loss).  Thus, there is no redistribution of the profits to the holders of the SDR.  Where do the profits from the interest and the charges go ?  

  1. How do you explain the negative cash flow on the interests on SDR holdings for the Usable currencies and SDRs  from operating activities, for example, on page 7 of the financial statement for the General Department ?

  1. The historic financial statements should preferably be 3 years or more, so that the bondholders can compare earnings.  The IMF financial statements show a history of 2 years.  This says something about the IMF bondholders: they're not financiers.  Could you please report at least 3 years of financial history ?

  1. How come I can buy bonds of anybody at the stock exchange and not the bonds of the IMF ?   Why isn't the IMF bond available on the stock market ?  How come that only the AA rated countries can buy bonds and not the all the members of the IMF ?  How come that the Bank of International Settlements can buy bonds and it is not credit rated, and some “other organizations” on the list are not mentioned by name, but they are triple A rated (see page 13 of financial statement) ?  

  1. The IMF is managing the sovereign funds of everyone, and the IMF is not credit-rated.  How do you explain this ?

  1. Belgium pays a quota of 4.6 billion SDR (7.2 billion USD[2]) to the IMF ([3]).    Is this extra public expenditure supported by a decision of the Belgian Parliament ?   If not, is it possible to make sure that any contribution to the IMF is supported by a vote from the country's Parliament first ?  Perhaps you can publish the reference number of that decision on the IMF Votes and Quota web page.

  1. On page 55 of the IMF annual report of 2013, you will read that the Belgian National Bank (BNB) agreed to borrow under the PRGT (poverty reduction and growth trust) program, up to SDR 350 million (US$540 million) in new loan resources for low-income countries.  

Using too formal and too technical language before an international audience can be an obstacle.  What does “borrowing” mean in an IMF report ?    Does this mean that Belgium lends money to the IMF or that the IMF lends money to Belgium ?   It is not clear from the texts in the AR13 and in the financial statement.

On page C2 of the AR13, you have a list of acronyms and abbreviations, that is perfect. However, I didn't find a list with the terminology.  So, please name the token, give a definition, supply the characteristics and give an example of what you mean with “borrowing”.  

  1. In the case my understanding that the BNB lends money to the IMF is right, are there other central banks that lend money to the IMF ?

  1. What is also remarkable is that the independent auditor's report, which is in the financial statement, is not signed by a person from Deloitte ?   That signature says « Deloitte & Touche LLP » and it may not be valid.  Could you please request from Deloitte & Touche  a letter with the name of the Chief Auditor or the Associate Partner on it ?  Could you also make sure they sign with blue ink ?

  1. Could you please publish a color copy of the letters from the independent auditors in your financial statement ?  

  1. Could you please include a letter from the IMF to Deloitte & Touche in which the IMF is handing over the annual accounts ?

  1. The pictures which illustrate the Annual Report consist of sharp contrasts between the advanced countries, and the poor and underdeveloped countries, like on page 11, 13, 32, 35, 37. What's the meaning of those contrasts?   Is it possible to reflect diversity in all fields of life, and to make sure the combinations are not condescending ?

  1. Apart from an annual report, I think that the lack of public information makes it difficult for the membership and the for the public to assess the progress of the yearly objectives.   How could you leave the reporting sitting there for one year, before letting the membership know about the IMF performances as well as in which direction the monetary policy is going as well as the currency rates ?

  1. The IMF serves about 189 central banks of all the member countries in the world and manages an asset value of 7 trillion US dollars.  Does the public really have any transparency if the IMF is only releasing an annual report of about 60 or 70 pages long ?

Concerning the IMF monetary policy :

  1. Monetary policy is not on a preset course,  We want to set a path of policy that will achieve the objectives the membership has assigned to the IMF and that certainly entails making sure that the expansion – doing what we can – to make sure that the expansions are continuous .  

Could you share your views as to the strength of your banking system today ?

  1. Madame Lagarde, when you issue a monetary policy, are your speaking for the committee of 189 countries, are you speaking for yourself, or for someone else ?  

  1. When it comes to the communications of monetary policy, does the IMF have any guide-lines for the governments and the central banks in place ?  

  1. Does the IMF hold public or private meetings about monetary policy making ?  Is it possible to make available the transcripts or summaries of those meetings that you have ?  If your answer to these questions is “no”, please explain why.  

  1. On this link ( http://bit.ly/ULffyU ) you will find a news article saying that Belgium (the National Bank of Belgium) has been able to borrow money at a negative interest rate,  Since the National Bank of Belgium (NBB) is the parent company of the IMF (see question 62), is it possible to say where the NBB finds loans at a negative interest rate ?  

  1. How come that Belgium finds these loans and a developing country or even Eurozone countries like Greece, Spain and Portugal can't ?  

  1. Did the IMF ever recommend negative rates to any central bank ?  

  1. Can the IMF impose negative rates on savings, for instance ?

  1. If negative rates were imposed on the savers, than that would mean that the savers will have to pay in order to put their money in the banks.   Isn’t that the equivalent of “attacks on saving ?

Concerning the SDR and the Loans :

  1. The financial statements are mostly in SDR, and in certain parts in US Dollar.  Why do you not report everything in US Dollar ?

  1. Isn’t the SDR an illegal currency manipulation, with regards to the Yen, the Euro, the Swiss Franc and the US dollar.  Isn’t that an unacceptable monetary policy ?

  1. How will the devaluation of one currency affect the SDR composite in these turbulent times ?  What does IMF do to keep the SDR stable ?  Could you please expose your policy in the annual report ?

  1. The IMF is considered a (world) government and it is not a trading company which pays taxes.   Thus the IMF doesn't qualify for commercial activities.   Then why does the IMF export SDR to foreign countries ?  

  1. In the fact sheet IMF lending (http://www.imf.org/external/np/exr/facts/howlend.htm) it is mentioned that unlike the development banks, the IMF does not lend for specific projects. However, an SDR without a project is like a toxic investment.   It is like investing blindly, and encouraging this type of investment is unacceptable for a financial authority like the IMF.   It is like encouraging the same system which has lead to the 2008 subprime mortgage crisis.  

But in AR13, on page 19, box 3.1, concerning the engagement of the IMF in Europe, you will find that “the IMF tailors its policy advice to individual members, and program design in individual European countries”.   It seems like the IMF loans are linked to programs, when it comes to the European countries.  Could you please explain who funds those programs and how the funding for the European countries is raised ?    

  1. Why is Europe excluded from the SDR-zone ?   Why don't they talk about the SDR on page 19, box 3.1, concerning the engagement of the IMF in Europe, they only speak in terms of Euro and Dollar ?  When Europe is excluded from the SDR -zone, how could you state in the press communication of the International Monetary and Financial Committee and the Development Committee of  24 September 2011, “We commit to do everything within our means to support strong, sustainable, balanced and inclusive growth in all our member countries ?

  1. The real currencies (like the USD, Euro and the Pound) offer the possibility to see how well the countries are performing, but with something like the SDR and without using the banks, you see nothing.  The results for every country are altered by the SDR and by all the IMF policies. So how does the IMF do it to produce country reports ?  

Concerning the IMF Organization and the Service Quality :

  1. Could you please publish on the IMF website a photo or a specimen of the SDR currency, because my bank doesn't have one ?   I'm so curious to see if  there is a face on it of it's leader ?

  1. Is it possible to provide for the IMF members an online quota calculator or a spreadsheet to download with the quota formula already in it ?  

  1. Does the IMF have a bank account number ?  Please make sure it is visible on all the IMF printings, to allow investors to transfer money to the IMF.

  1. Does the IMF have a VAT number and a company registration number ?  If so, could you please mention those together with the international banking number below the postal address of the IMF on the last page of the Annual Report 2013 ?

  1. Could you also specify if the IMF is a limited or an unlimited corporation, or a non-profit organization ?

  1. In IMF organization chart shows two levels above the Managing Director and no President overlooking the whole.  If you have no President, you basically can do what you want, Madame Lagarde.    Is that position vacant ?   If so, please put a box marked “vacancy”at the very top of the organization chart, and post the open position on the IMF web pages, under “jobs”.

  1. Is it possible to provide a page with a description of what every department in your  organization does precisely ?

  1. It would be interesting to have the names of the people seating in the International Monetary and Financial Committee and the Development Committee.

  1. Is it possible to at least add the e-mail addresses of the departments ?  For now, there is no email or phone number to be found in the annual report and in the appendixes.   The IMF should be open to the public.  

  1. How many pension funds does the IMF need in it's organization chart ?

Concerning the IMF Mandates, Salaries and Wages  :

  1. How many people work at the IMF ?

  1. In the financial statements of the IMF there no clarity concerning salaries and wages, pensions and other social contributions.  What is the average hourly earning at the IMF ?

  1. Who decides the salaries, the wages, the pensions and the health insurance at the IMF, the workers or the management ?

  1. Do you think that the mass-legal immigration of employees who work for the IMF, the World Bank, and the IBRD has put some weight on the wages of the native Americans ?

  1. Does a strong US dollar have an influences on the wages of the IMF employees ?


  1. Would investments in wages and training this year lower or increase the IMF operating profits, next year ?

  1. Is the IMF under increased pressure to pay employees more, when the IMF earnings are growing ?

  1. When do you expect the IMF earnings to grow again ?

  1. Don't people ever get fired at the IMF ?  Did you ever fire anybody a the IMF, Madame Lagarde ?  

  1. How much indemnity does an employee get in the case of a layoff ?  

  1. Does the IMF sign social agreements with the labor unions ?

  1. Should there ever be a strike of the public transport in Washington, how much would that cost to the IMF per day ?

  1. Are social elections allowed inside the IMF or not ?  Does the IMF allow labor unions at all ?  If yes, which ones ?

  1. Would an increase in the wages affect the value of the IMF bond ?

  1. How many people work on a report which you release only once a year, such as the annual report ?

  1. Don’t you think that a more transparent IMF would be more helpful to the IMF workers themselves ?

Concerning the IMF Being Governed by the National Bank of Belgium Only :

  1. On this link ( http://1drv.ms/1L6zuzQ ) you will find an extract from the Belgian Official Journal, one is of 1999, with an decision on page 21 and 22, article number I, II and III….  and one is of 2011 ( http://1drv.ms/24DSZ9u ) with an article on page 2 and 58 mentioning the appointment of the governor of the National Bank of Belgium as the governor of the IMF and the IBRD.  

How come that the National Bank of Belgium is the only central bank in the world who governs the IMF directly and all the other central banks in the world indirectly ?

  1. On this link ( http://1drv.ms/1WwCXau ) you will find an extract from the Belgian Official Journal, with several articles on pages 9, 13, 14, 15, 21, 29, 32...  concerning the reimbursement of the contributions of the Kingdom of Belgium to the IMF, the UN, European Investment Bank, International Atomic Energy Agency, etc….. .  

  1. Would you agree that the IMF is a system and that it has systemic effects on everybody in the world.   The IMF as a gigantic institution affecting every citizen in 189 countries that are members of it, but your annual reports shows that the IMF is not part of the system.   It is only part of the system to point of cashing in very big amounts of taxpayers contributions from every country and of taking the interests on the loans.

To what extent do the contributions to the IMF of all countries increase these current economic risks ?

  1. Is it possible to pay back the contributions to the IMF members, if it is not possible to pay out the interest rates ?

Concerning the Global Economic Outlook :

  1. Following the worst financial crisis since the Great Depression, The IMF annual report of 2009 mentions a call for a global fiscal stimulus equivalent to 2 percent of the (total) GDP to which countries have largely delivered, it says.   Ever since, the unemployment continued to rise everywhere, those who are working are not earning as much as they should.  The slowdown was international and the European exports were challenged by the strong Euro, the lowing oil prices haven’t provided the economic boost which the analysts expected.

The global recovery which was announced in the IMF annual report of 2010, has not yet materialized, 6 years later.   Entire nations lost wealth.   Many companies disappeared. Millions of people lost jobs.  In many countries, like Spain, Dubai and the United States, they foreclosed homes.  Most forgot how devastating the 2008 crisis was.   Instead of working to strengthen our economy and to bolster the financial system’s safeguards, the IMF seems to want to go back to business as usual, as if everyone forgot what happened in 2006-7-8 , as if they don’t know about the human suffering in every country.

Instead of the IMF conducting investigations, we have seen lobbyist do everything for weakening the laws for banks and nonbanks, and for making it impossible for the regulators to finalize the rules.  The IMF never talked about improving credit protection and debt collection.  The IMF, who did nothing to reduce the risks imposed by big banks involvement in the commodities business and in the international trade.   The IMF needs to make public determinations if individual banks have not provided credible exit plans that demonstrate that they could go out of business without wrecking the financial system.

The IMF as a monetary policy maker should continue to examine the potential threats in the financial sector, to promote the financial stability, by stabilizing the financial institutions, and to protect the banks and the governments, to help prevent what could be the next crisis.  The IMF's monetary policies should be consistent with achieving and maintaining maximum employment.  They should be appropriate to foster financial conditions consistent with the attainment over time of the objectives set by the IMF membership, and consistent with the objectives in the annual report of 2010.

The IMF anticipates the evolution of the economic conditions exclusively on a monetary policy basis.  What would you say today that the precipitous decline in the price of oil and Gas, plus the rise of the dollar, has surprised the IMF, to some extent or could you have predict it all of this ?

  1. Why are global and US markets tumbling ?  Why do the investors fear a weakening in the global growth, because this would undermine the US growth, which has been the strongest in the industrialized world, and that in turn will undermine the growth in Europe ?  What's going on with the global economy ?

  1. Do you feel that you or the IMF are responsible for this decline ?

  1. How do you explain for example the devaluation of China's currency, the US dollar , the Japanese Yen and the Euro ?

  1. How do you explain the dramatic drop in the oil prices ?

  1. How do you assess the contribution of lowering the oil prices to the global economic and financial outlook ?

  1. Stock markets have repriced the valuation of banks sharply lower, largely because of concerns about loan exposure to the energy sector and the relentless compression of net interest margins. Investors will be looking for Yellen instead of the IMF to indicate whether this suggests systemic problems or reflects a new and eventually stable valuation paradigm.  What is the role of the IMF in the stock markets ?  

  1. How do you explain the response of the stock markets to all these devaluations ?   Does the sharp decline in banking-sector stocks indicate a new problem ?  Can the IMF stop bank failures before they happen ?

  1. The recent behavior of markets has raised questions about the effectiveness of continued unconventional policies by central banks as a means to boost the economic activity. The growing recognition that these institutions are less able (in the case of the Eurozone, China and Japan) and less willing (the Fed) to consistently repress financial volatility raises questions about the possibility of adverse spillovers into the broader economy.  

  1. Will financial market volatility contaminate the economy ?   Please provide an assessment of the risk.

  1. In which countries she expects inflation to rise and how this will affect the global economy ?

  1. In the case of unexpected upturns or downturns in any country, does the IMF still use the Quota and the Special Drawing Rights which is based on the Quota in a lot of it’s deliberations ?

  1. A monetary policy is by no means a preset course.  It should be ideally a path of policy that will achieve the objectives which the IMF members assign to the IMF, and that makes sure that the expansions are continuous.  

What is the IMF doing to ensure protecting the consumers while differentiating the monetary policies that impact the small banks versus the big banks, or between the big banks and the community banks ?  Isn’t consumer protection not part of your supervision ?

  1. What has to be done at the IMF to address long term unemployment and to foster policies that transform economic growth into growth for hard-working families ?  

  1. Context matters.  In USA, Europe and Asia we have seen combinations of fiscal austerity and tight monetary policies that can be toxic for an economy that is recovering.  Can you describe the risks to the economy of tightening too soon, while taking the global into considerations ?

  1. What is the condition of the IMF system?  Do you feel comfortable about the IMF system, so many countries go into recession ?

Concerning the US Economic Outlook (because the USA that is where the IMF is ) :

  1. Given the impact of the housing crisis which cause the stock market crash of 2008, and which is discussed in the IMF Annual report of 2009, could you give us your perspective on what the IMF is saying on the housing sector right now and what it would mean for the American taxpayer ?   Did you see a recovery somewhere ?  What can the IMF do to bring the housing sector back in consistency with the demographics ?

  1. A Financial Times survey of economists now puts the chance of a US recession this year at 20 % ([4])  Are you convinced by this survey, Madame ?  

  1. The interest rate of the 10 year US treasury bond is pushed down sharply, and an additional negative factor for the bond investors is that the central banks in Europe and Japan have moved to negative interest rates to boost growth.  Negative rates will squeeze profits on already stressed European banks.  Their stocks have been battered and the US banks obviously have been hit too.  It is partly because it concerns the federal reserve might also move to negative rates.  Financial news reports of 11 February 2016 say that the Honorable Madam Yellen, Chair of the US FED declared, that she is skeptical of the idea, but the policy makers are studying it, but and she did not rule it out.  

Those negative interest rates will throw not only the US economy further off track, but all the banks risk to disappear.  The banks are becoming too expensive and they will have to restructure or move to cheaper regions.  Is the IMF prepared to follow them ?

  1. I am asking these questions to you Madame Lagarde, because during more than half a century many countries in the world have been blaming the Federal Reserve (FED) of the United States of America for the lack of growth in their economies, for the divisions in their government, for the corruption of the business class in their societies, for the dictatorship in their countries, for the exploitation of the poor population, and for the subsequent revolts and civil wars.  Do you think the FED or the Honorable Madam Yellen are to blame for the misery everywhere in the world ?  

  1. Yes or no ?

  1. If no, how come that all the countries in the world believe that the United States is driving their economy and that they have the last say on their lives and deaths ?   In popular language, they say “USA is the big Satan ruling our lives”, leading mobs to cry their anger against the USA in ecstatic ways while burning the American flag and dancing on it. It goes to the extent that each time the people get frustrated about their governments, they attack the American people on their soil, like the attacks in Ben Ghazi, Libya, in 2013 (?), and the Americans have never been involved in any wars with Libya.  How come that every time when there is a recession somewhere, everyone blames the USA for having all the money in the world ?  

  1. The IMF and the IBRD belong to the same owners, but the IBRD financial statement reports that the USA provides the largest share (about 45 %) of the financial resources to exactly these international institutions.  How come that everyone in the world thinks that the FED is deciding the austerity, the negative interest rates and the lack of prosperity which comes with all these negative monetary policies, whereas the FED is only concerned with the US Dollar ?   The risk is that bonds are sold to foreign governments in the name of the Federal Reserve, and that the holders of these bonds never get interests paid out because the bonds were not endorsed by the US Government.  How come that everyone thinks that the IMF is the FED and how can you help prevent this amalgamation in the future ?  

  1. How come that the world doesn't see that the USA has recessions too, that the Americans are struggling with their taxes and that they work hard to earn a living without much holidays, health insurance, unemployment benefits and all sorts of social aids like in Europe ?

  1. If yes, then show me all the possible currencies that are coupled to the US dollar please.  

  1. Although the U.S. has been one of the world's most powerful engines of job creation in recent years, the recovery of the labor market has not yet been accompanied by solid increases in wages. Data in the January employment report -- particularly the increase in both hourly earnings and hours worked -- have led to predictions of more robust wage growth ahead. How is this likely to play out ?  

  1. Is the recent acceleration in wage growth sustainable ?  

  1. Is inflation or deflation the main risk to the U.S. economy?

Concerning the Economic Outlook in the Eurozone :

One of the IMF's duty is to closely monitor greater risks from abroad. Let's have a look at the Euro-zone :

  1. Do you know if the Euro-zone economy – although it has peaked during a number of years in the past – will start declining and put us into a recession of some kind ?   It this something you are watching ?  What would you say to reassure the Europeans?

  1. How is the international weakness influencing the European economic prospects?

  1. Europe depends almost exclusively on the large US markets.  The US economy slowed and it is uncertain whether the slowdown is a blip or a more prolonged slump.   What are the risks of a recession in Europe, in the coming months ?

  1. The IMF conducts monetary policy actions to affect economic conditions in a favorable way, to promote maximum employment, international trade and currency stability.   How come that in practice the IMF handles the Greek crisis by imposes austerity combined with the increase of the taxes, lower wages, job cuts and higher interest rates ?

  1. When it comes to international trade, do you see Greece as part of the Euro-zone or as a foreign country, despite the same currency like in the rest of Europe ?

  1. Who will be able to foster growth in Greece, the IMF, the European Union or the ECB ?


According to you, how likely is a Greek default to actually hurt the global economy, and the USA in particular ?  Is there a potential for contagion ?


Is the IMF big enough for saving a country like Greece ?


If yes, then how come that the shareholders of Dexia bank in Belgium, were looking to sell Dexia SA and Dexia BIL with the Greek debt legacy still inside of it to any foreign buyer ? How come that the National Bank of Belgium didn't turn to the IMF for help ?


In the event that the European Union crashes, given the possibility of a Grexit and / or a Brexit what do you think will happen with the IMF ?  


Why does the IMF wait with it’s monetary adjustments until a country is about to default ? Where was the IMF before the Greek banks began to have trouble ?  

Concerning the Economic Outlook in the Emerging Economies :


The possibility of higher wage growth suggests an upward trend for inflation. But there also are forces pushing in the other direction, including the further fall in oil prices over the last few months, which, has added to the deflationary trends in Europe in particular. Several countries continue to be inclined to rely on policies that export deflation, such as currency devaluations, as they struggle to maintain domestic growth. And companies remain quite risk averse, and are hesitant to deploy their considerable cash holdings for expansionary spending on new plants and equipment.

Is the recent acceleration in wage growth, sustainable particularly in the emerging economies ?  Please provide guidance on how the balance of these forces evolves.


What can you advise to your clients who are the central banks to boost the economy ?  They buy the SDR in bulk and you are so quiet ?  


Isn't the IMF, who is the ultimate financial authority existing on the planet ?  Then why is it not saying one word to reassure the investors, the banks and the governments ?  What tools does the IMF have to deal with a future slowdown ?


What is the most urgently required action to ensure sustainable economic prosperity and genuine financial stability ?   According to you, is it to continue the excessive reliance of the central banks on the macroeconomic and monetary policies or a more comprehensive approach that removes structural impediments to growth, including outdated infrastructure, tax distortions and inadequate investments in human capital, that deals with aggregate demand deficiencies, that eliminates crushing pockets of over-indebtedness and that helps restore confidence thanks to more effective global policy coordination ?  


Is the answer you have just given, according to you or the IMF ?

Concerning the Economic Outlook of the Poor Countries :


What is productivity according to you and from which factors does it depend  ?


Does debt hurt productivity according to you ?


Is it a ridiculous notion if the poor countries look at the IMF's monetary policy to increase productivity ?


Does the quality of capital equipment affect the monetary policy or vice versa ?


Does monetary policy affect infrastructure investment ?  


Does monetary policy affect knowledge or skills ?


The IMF issued a number of new regulations streaming from the Basel III bank capital rules, such as a total loss absorbing capital, the liquidity coverage ratio, and high quality liquid asset ratings.  These rulemakings are set by the Bank of International Settlement and it’s Basle Committee on banking supervision.  Are those international requirements properly tailored for the domestic financial institutions in the poor countries ?   Are they harming their economy or placing their firms at a disadvantage compared to the multinational companies ?


Are certain groups of countries doing better than others in wage growth ?


We can't reach full employment until the women and the minorities, everybody is included. Do you make formal determinations that certain plans in this sense are not credible ?  


Can the global economy reach full employment, without labor force participation of the developing economies as well as the women and minorities, and have widespread wage growth everywhere ?

Concerning the IMF Funding :


The IMF exclusively deals with the macro-economic rule-making, with the governments and with the central banks.   However,  the impact of the macro-economy on the micro-economy is as important as the impact of  the micro-economy on the macro-economy.  Without the participation of as many taxpayers as possible, thanks to whom all the countries are able to contribute to the global solidarity and security, and to a stable world economy stability, the IMF would not be raising as much funds as it could possibly raise.
Does the IMF raise funds on the basis of the outlook of the international economy ?


Is the IMF careful of looking at every aspect of the international economy (employment, capital market liquidity, currency stability, etc..) before it raises funds ?  


Is the precarious state of family balance sheets not on your minds  ?


If so, what macro-economic tools and policies does the IMF have to help lower a middle-income family build wealth for the long term ?


Does the IMF raise funds on the basis of the outlook of the international economy and it's own monetary policy or on the basis of predictions from other market analysts ?   If so who?


Does the IMF examine the larger banks that might be competing with the IMF on the same markets, and that are more consumer complaint, and that supply loans to the smaller banks?


When you change something in the organization of the IMF, do you also change something about the currency rates at the same time ?


Do you want the members to gain control of the IMF organization and funding ?


Would more transparency, more reporting, more supervision, more regulation and more control by the membership over the day-to-day operations of the IMF organization be in any way counter to the IMF's independence on setting monetary policy ?


Has the IMF ever donated any money to a Member of the IMF ?  

Concerning Basle II and III :


Recently, the IMF has issued a number of new regulations streaming from the Basel III bank capital rules, such as a total loss absorbing capital, the liquidity coverage ratio, and high quality liquid asset ratings ([5]). These rulemakings are set by the Bank of International Settlement and it’s Basle Committee on banking supervision.  

Is the IMF involved in this ?


Are those international requirements properly tailored for the domestic financial institutions in every country ?  


Are they even necessary given the existing rules in those countries ?  


Are they harming the local economy or placing foreign firms at a disadvantage ?


What do you think of government bonds ?   Should these not be excluded from being highly qualified liquid asset rules under Basel III ?  


Economic performance is the IMF's top priority.  The IMF monitors the financial stability of the central banks in the world.  On this link, you will find an analysis of the annual report 2013 of the Bank Al Maghreb of Morocco.  The Moroccan government has a deficit of % and this deficit is almost entirely related to treasury bonds in Euro.  The Euro has been one of the most reliable and stable currencies existing on the planet, for the past 15 years.   How come that the Euro generated a gaping debt swallowing nearly the entire GDP Morocco ?


Do you think these were the objectives what that the IMF’s objective ?  If this wasn’t the IMF’s objective, then whose objective was it ?


Why doesn't the IMF monitor and sanction the creation of such a government deficits like the European Commission does ?


Does the IMF consider itself a huge bank, a huge community bank or a huge foundation, comparable to the Anna Lindh Foundation ?


Every country should prepare a cost-benefit analysis of working with the IMF.  How much does it cost a country and how much benefits does it get from working with the IMF ?  


Does the IMF anticipate providing feedback on submissions of exit plans of highly exposed financial institutions ?  


Madame Lagarde, in which countries do you feel that the banks are over regulated or under-regulated ?  


Is the IMF committed to making formal determinations about insufficient plans, and provide feedback on those determinations ?


The size of a bank or a fund poses an economic and a financial risk when things don't turn the way they should or as expected.   The bigger the organization, particularly with overseas operations in different part of the world, with increased exposure to risks.  They are complex, and sometimes the CEOs don’t even know and understand the complexity of their institutions.   Have you ever heard of exit plans ?  An exit plan is usually part of the business plan which explains in what way you plan to stop the business or to quit it, if the business is not turning in the direction that should be.  An exit plan is an essential part of a basic business plan, and extremely important if we are to have a plan by which we can resolve the very big business organizations with trillions of assets such as the IMF and the world Bank, in the event we determine that they are putting the global economy us all at risk. As the Managing Director of the most important global financial institution, what can you tell us about an exit plan for the IMF ?


Following the financial crisis of  2008 (Lehman Brothers’ collapse and with Fannie Mae and Freddie Mac), and the “too big to fail” situation for many large banks, the American government voted the the  Dodd-Frank act.  The goals of Dodd-Frank is to reduce the complexity of the world’s most significant financial institutions, and it is basically a very significant steps that will improve the odds under ordinary bankruptcy proceedings without endangering the broader economy, the  need to establish a rational and less complex legal structure that would improve solvability and reliability.  

In which category does the IMF fit, in the “too big to fail” category or the “too big to save” category ?


What are the implications of the Dodd-Frank act for the International Monetary Fund in Washington ?  


How does Basle II and III apply on the IMF and the IBRD ?


What do you think of the negative interest rates affecting the productivity of the banks ?  


Does the IMF consider negative rates for herself ?


Did the IMF submit any exit plan or living will to anybody, or at least to the most generous membership ?


We are seeing the rise of a new World Bank by the bricks – the bricks bank.  We are also seeing consolidation of banks in certain parts of the globe pretty rapidly given that their net interest is squeezed.  ( insert from the news )  Is that true throughout the globe, and are you concerned about that ?


For the larger banks whose failure would have systemic consequences, it is critically important to make sure that they hold more capital liquidity to address the threats that they pose to the financial stability of a country in the global economy.  Do you think the IMF disposes of sufficient capital liquidity to address the financial threats globally ?


If things go wrong, is the IMF considering going south to a place that doesn't have that much oversight, where the people are highly tolerant and less regarding or flexible with the rule of law ?  Yes or no ?   If yes, which country do you have in mind ?


Should there ever be problems with the IMF and heading for liquidation, which bankruptcy law should you consider : chapter 5, chapter 7, chapter 11, chapter 13 or all of them together ?

Concerning the IMF's Public Image :


The general issue is how do you ensure that there is real public participation ?  One of the impressions we have is that the IMF is a game of insiders in which one of the top directors directly appointed by the bank were influential.  How do you ensure that there is a real public scrutiny of these directors ?  


Do you really think that in 2016, and in a global information society, with SMS, MMS, Whatsapp, LinkedIn, Facebook, Twitter, Instagram, Snapchat, YouTube, Pinterest, Skype and other live messengers the IMF can continue to earn contributions and interests, and at the same time continue to ignore the voice of the citizens, the enterprises, the banks and the governments from around the world, particularly now during this uncertain global economic climate ?

Concerning the IMF Trusted Auditors :


The IMF hired the Deloitte and Touche Auditors for reviewing their financial statements.  The letter from the auditor which is in the financial statement says that the audit was according to the International Standards of Auditing .   Normally audits are performed according to the local tax rules.  That is not the case with the IMF.  Why ?  


There is something strange about the signature on the independent auditor's report.  It is not a name of a person but the handwritten name of the audit company “Deloitte & Touche LLP”.   Is it a forged report ?


Has the IMF ever sent the Deloitte & Touche auditors to any central bank in world, to see if they are operating according to the “IMF standards” ?


End of Questionnaire

A Questionnaire for the IMF                

[1]        http://www.imf.org/external/pubs/ft/ar/2013/eng/pdf/orgch.pdf

[2]        Currency Unit : SDR , $ 1.47638 = 1 SDR on 24 June 2014

[3]        http://www.imf.org/external/np/sec/memdir/members.aspx

[4]        http://www.ft.com/cms/s/2/da2ed38a-c6bd-11e5-b3b1-7b2481276e45.html#axzz42bDrh8LI

[5]        http://www.imf.org/external/np/pp/eng/2013/111313b.pdf