RESCO Sugar Buffer Stock Financing Country Files

66555

1966-1984

series

textual records

2 linear feet of textual records

English

Series is open according to the Archives Access Policy. Files will be screened by reference staff for any time restrictions.

Series consists of country files arranged alphabetically. Files include requests by member countries for financial assistance under the Buffer Stock Financing Facility to correct balance of payments deficits. The purpose of having buffer stocks ensured that these stocks were held and not sold to offset foreign exchange loans. Therefore, stocks could not be used as collateral for repayment of a member government's outstanding loans to developing countries. The IMF, in consultation with member countries, developed a system whereby countries could purchase stocks as an alternate means of finding appropriate solutions for balance of payments difficulties., In order to process requests pertaining to special stocks of sugar, for example, the IMF required that the country with balance of payment difficulties produce certificates of existence of accumulated stocks that were sent to the International Sugar Organization and copied to the IMF to show that the country was adhering to the arrangements of the agreement. The country also had to confirm that there were no outstanding loans in foreign exchange for which the special stocks could be used as collateral. The country was also required to produce balance sheets showing areas planted to growth of the particular crop (perhaps sugar) and to provide information that would be used to update the balance of payment tables contained in the compensatory financing paper., Files contains copies of certificates establishing verification of special stocks of sugar held by the country recording that a sample of the product was inspected in fulfilment of the requirements of the International Sugar Organization. Copies of photographs taken at site during inspection were copied and sent to the IMF. The files explain the role and function of the "Interntional Sugar Association" relating to the member exporting countries' agreement to maintain certain stocks of sugar to keep the world market price at a certain level. Funds were available from the IMF on a loan basis, subject to satisfaction of balance of payments criteria, to those countries obliged to maintain special sugar stocks.