The membership of the International Monetary Fund (IMF) is discussing strictly limited gold sales of 12.97 million ounces (403. 3 metric tons), one-eighth of the total holdings, as part of a package of expenditure and income measures to put the organization's Finances on a sustainable basis but no decisions have been taken by the Excutive Board.

The IMF currently holds 103.4 million ounces (3,217 metric tons) of gold, making it the third largest official holder of the gold. The gold is valued on its balance sheet at 5.9 billion SDR (special drawing rights) (about US$9.2 billion) on the basis of historical cost, the market value of which was US$95.2 billion as of February 20, 2008.

The IMF is considering gold sales because its finances have become unsustainable following a large decline in credit outstanding in recent years.

In absence of measures an income shortfall of US$165 million in fiscal year 2007 is expected to widen to about US$400 million by fiscal year 2010.

Under the IMF's Articles of Agreement, a decision to sell gold requires an 85 percent majority of the total voting power.

(Xinhua News Agency April 25, 2009)