FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department on Thursday made available on its web site the United States' response to the IMF's Questionnaire on Fiscal Transparency and Self-Evaluation Report on Fiscal Transparency.

The IMF questionnaire was developed to help countries assess how their fiscal management systems compare with the requirements of the code. The self-evaluation report was designed to highlight the strengths and weaknesses of these systems. Treasury is releasing the United States' response in an effort to promote widespread implementation of the IMF's Code of Good Practices on Fiscal Transparency - Declaration on Principles. Treasury also anticipates the transparency standards will become an integral part of the IMF's "Article IV" surveillance process.

The IMF's increased focus on promoting fiscal transparency is a response to an emerging consensus that fiscal transparency is a critical part of good governance. Greater transparency is expected to help markets better adjust to economic developments, minimize contagion and reduce volatility. The IMF's Code of Good Practices on Fiscal Transparency - Declaration on Principles was approved by the Executive Board and endorsed by the Interim Committee in 1998 (publicly available on the IMF web site).