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Gold/Mining/Energy : Gold Price Monitor

GDXJ 97.80

+0.9%

Nov 19 4:00 PM EST

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To: Alex who wrote (45838)	12/9/1999 6:14:00 PM
From: lorne	Read Replies (2) of 116763

IMF to begin off-market gold sales to finance debt relief Dec. 9, 1999 The International Monetary Fund is about to begin a series of off-market gold sales to finance its contribution to a debt-relief programme for the world's poorest nations. The Fund said in a statement Wednesday the transactions would begin "in the next few days". The plan is to sell gold at market price to the central bank of a country due to make a loan repayment to the IMF, with the bank immediately using the gold to finance the repayment. The gold would not leave IMF vaults, avoiding any adverse effect on the international gold market. But the Fund would be able to use the difference between the book value of the gold and the much higher market value. The cash would then be invested and the interest used to support the Heavily Indebted Poor Countries Initiative (HIPC), which provides debt relief to about 30 of the world's poorest nations that agree to adhere to IMF economic reforms. The plan aims to reduce about 27 billion dollars in multilateral debt held by the targeted countries. The debt- and poverty-reduction initiative, also sponsored by the World Bank, will in addition receive contributions from IMF member countries. The IMF had initially planned to sell 14 million ounces of gold in off-market transactions, but the amount was later reduced to nine million ounces in line with a decision by the US Congress. A source close to the IMF said the first gold deals would be made with Mexico and Brazil. The Fund puts the value-per-ounce of its gold at 48 dollars, compared with 283 dollars fetched on the international market on Wednesday. voila.co.uk

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