Cap. 209 Art. 8Powers of the Minister.

In KraftAmtlicher Text

(1) The Minister may by order make such provisions as are necessary for carrying into effect any of the provisions of the Fund

Agreement.

(2) The Minister may, from time to time, by order amend, repeal or substitute the Schedules made under this Act.

(3) Any Schedules made under this Act and any amendment or revocation of the said Schedules may be made in the English language only.. INTERNATIONAL MONETARY FUND

https://www.imf.org/external/pubs/ft/aa/ amended effective January 26, 2016 by the modifications approved by Governors of the International Monetary Fund in Resolution No. 66-2, December 15, 2010, as reproduced hereunder: ARTICLES OF

AGREEMENT ARTICLES OF

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International Monetary Fund, publisher. | United Nations and Financial Conference (1944 : Bretton Woods, N.H.). Articles of agreement of the International Monetary Fund : adopted United Nations Monetary and Financial Conference, Bretton Woods, Hampshire, July 22, 1944 … amended effective January 26, 2016 by modifications approved by the Board of Governors in Resolution 66–2, adopted December 15, 2010. titles: IMF articles of agreement. Description: Washington, DC : International Monetary Fund, 2020. | index.

Identifiers: 978-1-51352-124-4 (paper) 978-1-51353-081-9 (ePub) 978-1-51353-082-6 (PDF)

Subjects: LCSH: International Monetary Fund—Membership. | International Fund—By-laws. Classification: LCC HG3881.5.I58 I578 2020

Reprinted, March 2020 Articles of Agreement

International Monetary

Adopted at the United Nations Monetary Financial Conference, Bretton Woods, shire, July 22, 1944. Entered into force 27, 1945. Amended effective July 28, modifications approved by the Board in Resolution No. 23–5, adopted May amended effective April 1, 1978, by tions approved by the Board of Governors lution No. 31–4, adopted April 30, 1976; effective November 11, 1992, by the approved by the Board of Governors No. 45–3, adopted June 28, 1990; amended tive August 10, 2009, by the modifications by the Board of Governors in Resolution adopted September 23, 1997; amended February 18, 2011, by the modifications by the Board of Governors in Resolution adopted May 5, 2008; amended effective 2011, by the modifications approved of Governors in Resolution No. 63–2, April 28, 2008; amended effective 2016 by the modifications approved of Governors in Resolution No. 66–2, December 15, 2010.

INTERNATIONAL MONETARY WASHINGTON, T C able of ontents

I A ��1 ntroductory rticle I. P ��2 urposes II. M ��3 embership 1. � Original members��3 2. � Other members��3

III. Q S �� uotas and ubscriptions 1. � Quotas and payment of subscriptions��3 2. � Adjustment of quotas ��3 3. � Payments when quotas are changed��4 4. � Substitution of securities for currency ��5 IV. O R E bligations egarding xchang A ��5 rrangements 1. � General obligations of members��5 2. � General exchange arrangements��6 3. � Surveillance over exchange arrangements 4. � Par values ��7 5. � Separate currencies within a member’s territories��7

V. O T F perations and ransactions of the 1. � Agencies dealing with the Fund��8 2. � Limitation on the Fund’s operations and transactions��8 3. � Conditions governing use of the Fund’s resources��8 4. � Waiver of conditions��10 5. � Ineligibility to use the Fund’s general resources��10 6. � Other purchases and sales of special drawing rights by the Fund��11 7. � Repurchase by a member of its currency by the Fund��11 8. � Charges��13 9. � Remuneration��14 10. � Computations ��16 11. � Maintenance of value��16 12. � Other operations and transactions��16

C T �� 20 apital ransfers 1. � Use of the Fund’s general resources for capital transfers��20 2. � Special provisions for capital transfers��20 3. � Controls of capital transfers ��20

R S C �� 21 eplenishment and carce urrencies 1. � Measures to replenish the Fund’s holdings of currencies��21 2. � General scarcity of currency��21 3. � Scarcity of the Fund’s holdings��21 4. � Administration of restrictions��22 5. � Effect of other international agreements on restrictions��22

G O M �� 22 eneral bligations of embers 1. � Introduction��22 2. � Avoidance of restrictions on current payments��23 3. � Avoidance of discriminatory currency practices��23 4. � Convertibility of foreign-held balances ��23 5. � Furnishing of information��24 6. � Consultation between members regarding existing international agreements��26 7. � Obligation to collaborate regarding policies on reserve assets��26 S , I , P �� 26 tatus mmunities and rivileges 1. � Purposes of Article��26 2. � Status of the Fund��26 3. � Immunity from judicial process ��27 4. � Immunity from other action ��27 5. � Immunity of archives ��27 6. � Freedom of assets from restrictions ��27 7. � Privilege for communications��27 8. � Immunities and privileges of officers and employees��27 9. � Immunities from taxation��28 10. � Application of Article��28

X. R O I elations with ther nternational O �� rganizations XI. R N -M C elations with on ember ount 1. � Undertakings regarding relations with non-member countries��29 2. � Restrictions on transactions with non-member countries��29 XII. O M �� rganization and anagement 1. � Structure of the Fund��30 2. � Board of Governors��30 3. � Executive Board��31 4. � Managing Director and staff��33 5. � Voting��33 6. � Reserves, distribution of net income, and investment��34 7. � Publication of reports��36 8. � Communication of views to members��36

XIII. O D �� ffices and epositories 1. � Location of offices��37 2. � Depositories��37 3. � Guarantee of the Fund’s assets��37

XIV. T A �� ransitional rrangements 1. � Notification to the Fund ��38 2. � Exchange restrictions ��38 3. � Action of the Fund relating to restrictions XV. S D R �� pecial rawing ights 1. � Authority to allocate special drawing rights��39 2. � Valuation of the special drawing right ��39 XVI. G D S eneral epartment and pecial D R D �� rawing ights epartment 1. � Separation of operations and transactions��39 2. � Separation of assets and property��40 3. � Recording and information��40 XVII. P O H articipants and ther olders of S D R �� pecial rawing ights 1. � Participants��40 2. � Fund as a holder ��41 3. � Other holders��41

A C S llocation and ancellation of pecial D R �� 42 rawing ights 1. � Principles and considerations governing allocation and cancellation��42 2. � Allocation and cancellation��42 3. � Unexpected major developments��43 4. � Decisions on allocations and cancellations��44 O T S perations and ransactions in pecial D R �� 45 rawing ights 1. � Use of special drawing rights��45 2. � Operations and transactions between participants��45 3. � Requirement of need��45 4. � Obligation to provide currency��46 5. � Designation of participants to provide currency ��46 6. � Reconstitution��47 7. � Exchange rates ��47 S D R D pecial rawing ights epartment I C �� 48 nterest and harges 1. � Interest��48 2. � Charges��48 3. � Rate of interest and charges ��48 4. � Assessments ��48 5. � Payment of interest, charges, and assessments��49 A G dministration of the eneral D S D epartment and the pecial rawing R D �� 49 ights epartment G O P �� 51 eneral bligations of articipants S O uspension of perations and T S D R .�� 51 ransactions in pecial rawing ights 1. � Emergency provisions��51 2. � Failure to fulfill obligations��51 T P �� 52 ermination of articipation 1. � Right to terminate participation ��52 2. � Settlement on termination��53 3. � Interest and charges��53

4. � Settlement of obligation to the Fund��54 5. � Settlement of obligation to a terminating participant��54 6. � General Resources Account transactions

XXV. L S D iquidation of the pecial rawing R D �� ights epartment XXVI. W M �� ithdrawal from embership 1. � Right of members to withdraw��56 2. � Compulsory withdrawal��56 3. � Settlement of accounts with members withdrawing��56

XXVII. E P �� mergency rovisions 1. � Temporary suspension��57 2. � Liquidation of the Fund��57

XXVIII. A �� mendments XXIX. I �� nterpretation XXX. E T �� xplanation of erms XXXI. F P �� inal rovisions 1. � Entry into force��61 2. � Signature��61

SCHEDULES

A. Q �� uotas B. T P R ransitional rovisions with espect R , P A to epurchase ayment of dditional S , G , C ubscriptions old and ertain O M �� perational atters C. P V �� ar alues D. C �� ouncil E. T P R ransitional rovisions with espect E D �� to xecutive irectors F. D �� esignation G. R �� econstitution

P �� 74 rmination of articipation L S ministration of iquidation of the pecial R D �� 75 awing ights epartment A M ettlement of ccounts with embers �� 77 thdrawing L �� 80 ministration of iquidation V R �� 82 spension of oting ights O -T A S cial ne ime llocation of pecial R �� 84 awing ights

�� 91

A A rticles of greement of the I M F nternational onetary un

The Governments on whose behalf the present Agreement agree as follows:

Introductory Article

(i) The International Monetary Fund is established operate in accordance with the provisions of ment as originally adopted and subsequently

(ii) To enable the Fund to conduct its operations tions, the Fund shall maintain a General Department a Special Drawing Rights Department. Membership Fund shall give the right to participation in Drawing Rights Department.

(iii) Operations and transactions authorized by this shall be conducted through the General Department, sisting in accordance with the provisions of this of the General Resources Account, the Special ment Account, and the Investment Account; operations and transactions involving special rights shall be conducted through the Special Rights Department.

A I rticle Purposes purposes of the International Monetary Fund are: To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration on international monetary problems.

To facilitate the expansion and balanced growth of inter national trade, and to contribute thereby to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy.

To promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation. To assist in the establishment of a multilateral system of payments in respect of current transactions between mem bers and in the elimination of foreign exchange restrictions which hamper the growth of world trade.

To give confidence to members by making the general resources of the Fund temporarily available to them under adequate safeguards, thus providing them with opportunity to correct maladjustments in their balance of payments without resorting to measures destructive of national or international prosperity.

In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members.

shall be guided in all its policies and decisions by the pur forth in this Article.

A II rticle Membership

Section 1. Original members

The original members of the Fund shall be those of represented at the United Nations Monetary and Financial whose governments accept membership before December

Section 2. Other members

Membership shall be open to other countries at such accordance with such terms as may be prescribed by Governors. These terms, including the terms for subscriptions, based on principles consistent with those applied to other are already members.

A III rticle Quotas and Subscriptions

Section 1. Quotas and payment of subscriptions

Each member shall be assigned a quota expressed in special rights. The quotas of the members represented at the United Monetary and Financial Conference which accept membership December 31, 1945, shall be those set forth in Schedule A. of other members shall be determined by the Board of Governors. subscription of each member shall be equal to its quota and in full to the Fund at the appropriatedepository.

Section 2. Adjustment of quotas

(a) The Board of Governors shall at intervals of not more years conduct a general review, and if it deems it appropriate an adjustment, of the quotas of the members. It may also, consider at any other time the adjustment of any particular request of the member concerned.

(b) The Fund may at any time propose an increase in those members of the Fund that were members on August in proportion to their quotas on that date in a cumulative amounts transferred under Article V, Section 12( f )(i) and Special Disbursement Account to the General Resources eighty-five percent majority of the total voting power shall for any change in quotas.

quota of a member shall not be changed until the member consented and until payment has been made unless payment is have been made in accordance with Section 3(b) of this

Payments when quotas are changed member which consents to an increase in its quota under of this Article shall, within a period determined by the the Fund twenty-five percent of the increase in special rights, but the Board of Governors may prescribe that this pay made, on the same basis for all members, in whole or in currencies of other members specified, with their concur Fund, or in the member’s own currency.Anon-participant the currencies of other members specified by the Fund, with concurrence, a proportion of the increase corresponding to the be paid in special drawing rights by participants. The bal-increase shall be paid by the member in its own currency. holdings of a member’s currency shall not be increased level at which they would be subject to charges under Article 8(b)(ii), as a result of payments by other members under this member which consents to an increase in its quota under of this Article shall be deemed to have paid to the Fund an subscription equal to such increase.

member consents to a reduction in its quota, the Fund shall, days, pay to the member an amount equal to the reduction. payment shall be made in the member’s currency and in such special drawing rights or the currencies of other members with their concurrence, by the Fund as is necessary to prevent reduction of the Fund’s holdings of the currency below the new provided that in exceptional circumstances the Fund may reduce of the currency below the new quota by payment to the its own currency.

(d) A seventy percent majority of the total voting power required for any decision under (a) above, except for the determination of a period and the specification of currencies under that provision.

Section 4. Substitution of securities for currency The Fund shall accept from any member, in place of any member’s currency in the General Resources Account judgment of the Fund is not needed for its operations and notes or similar obligations issued by the member or the designated by the member under Article XIII, Section 2, which non-negotiable, non-interest bearing and payable at their demand by crediting the account of the Fund in the designated tory. This Section shall apply not only to currency subscribed bers but also to any currency otherwise due to, or acquired and to be placed in the General Resources Account.

A IV rticle Obligations Regarding Exchange Arrangements

Section 1. General obligations of members

Recognizing that the essential purpose of the international system is to provide a framework that facilitates the exchange services, and capital among countries, and that sustains sound growth, and that a principal objective is the continuing development the orderly underlying conditions that are necessary for economic stability, each member undertakes to collaborate Fund and other members to assure orderly exchange arrangements to promote a stable system of exchange rates. In particular, ber shall:

(i) endeavor to direct its economic and financial toward the objective of fostering orderly economic with reasonable price stability, with due circumstances;

(ii) seek to promote stability by fostering orderly economic and financial conditions and a monetary that does not tend to produce erratic disruptions;

avoid manipulating exchange rates or the international monetary system in order to prevent effective balance of payments adjustment or to gain an unfair competitive advantage over other members; and follow exchange policies compatible with the undertakings under this Section.

General exchange arrangements member shall notify the Fund, within thirty days after the second amendment of this Agreement, of the exchange it intends to apply in fulfillment of its obligations under this Article, and shall notify the Fund promptly of any its exchange arrangements.

an international monetary system of the kind prevailing 1, 1976, exchange arrangements may include (i) the main a member of a value for its currency in terms of the special right or another denominator, other than gold, selected by the

(ii) cooperative arrangements by which members maintain their currencies in relation to the value of the currency or other members, or (iii) other exchange arrangements of choice. accord with the development of the international monetary Fund, by an eighty-five percent majority of the total voting make provision for general exchange arrangements without right of members to have exchange arrangements of their consistent with the purposes of the Fund and the obligations Section 1 of this Article.

Surveillance over exchange arrangements Fund shall oversee the international monetary system in ensure its effective operation, and shall oversee the compliance member with its obligations under Section 1 of this Article.

order to fulfill its functions under (a) above, the Fund shall surveillance over the exchange rate policies of members, adopt specific principles for the guidance of all members with those policies. Each member shall provide the Fund with the necessary for such surveillance, and, when requested by the Fund, shall consult with it on the member’s exchange The principles adopted by the Fund shall be consistent with arrangements by which members maintain the value of their in relation to the value of the currency or currencies of other as well as with other exchange arrangements of a member’s consistent with the purposes of the Fund and Section 1 of These principles shall respect the domestic social and political of members, and in applying these principles the Fund shall regard to the circumstances of members.

Section 4. Par values The Fund may determine, by an eighty-five percent majority total voting power, that international economic conditions introduction of a widespread system of exchange arrangements on stable but adjustable par values. The Fund shall make the tion on the basis of the underlying stability of the world economy, for this purpose shall take into account price movements expansion in the economies of members. The determination made in light of the evolution of the international monetary particular reference to sources of liquidity, and, in order effective operation of a system of par values, to arrangements which both members in surplus and members in deficit in their of payments take prompt, effective, and symmetrical action adjustment, as well as to arrangements for intervention and ment of imbalances. Upon making such determination, the notify members that the provisions of Schedule C apply.

Section 5. Separate currencies within a member’s territories

(a) Action by a member with respect to its currency under shall be deemed to apply to the separate currencies of all respect of which the member has accepted this Agreement cle XXXI, Section 2(g) unless the member declares that relates either to the metropolitan currency alone, or only to specified separate currencies, or to the metropolitan currency or more specified separate currencies.

(b) Action by the Fund under thisArticle shall be deemed all currencies of a member referred to in (a) above unless declares otherwise.

A V rticle Operations and Transactions of the Fund

Agencies dealing with the Fund member shall deal with the Fund only through its Treasury, stabilization fund, or other similar fiscal agency, and the deal only with or through the same agencies.

Limitation on the Fund’s operations and transactions as otherwise provided in this Agreement, transactions on of the Fund shall be limited to transactions for the purpose a member, on the initiative of such member, with special rights or the currencies of other members from the general the Fund, which shall be held in the General Resources exchange for the currency of the member desiring to make requested, the Fund may decide to perform financial and tech services, including the administration of resources contributed by that are consistent with the purposes of the Fund. Operations the performance of such financial services shall not be on of the Fund. Services under this subsection shall not impose obligation on a member without its consent.

Conditions governing use of the Fund’s general resources

Fund shall adopt policies on the use of its general resources, policies on stand-by or similar arrangements, and may adopt policies for special balance of payments problems, that will members to solve their balance of payments problems in a manner with the provisions of this Agreement and that will establish safeguards for the temporary use of the general resources of member shall be entitled to purchase the currencies of other from the Fund in exchange for an equivalent amount of its currency subject to the following conditions: the member’s use of the general resources of the Fund would be in accordance with the provisions of this Agree ment and the policies adopted under them;

(ii) the member represents that it has a need purchase because of its balance of payments position or developments in its reserves;

(iii) the proposed purchase would be a reserve chase, or would not cause the Fund’s holdings purchasing member’s currency to exceed percent of its quota;

(iv) the Fund has not previously declared under this Article, Article VI, Section 1, or Article tion 2(a) that the member desiring to purchase to use the general resources of the Fund.

(c) The Fund shall examine a request for a purchase whether the proposed purchase would be consistent with the of this Agreement and the policies adopted under them, requests for reserve tranche purchases shall not be subject

(d) The Fund shall adopt policies and procedures on the currencies to be sold that take into account, in consultation bers, the balance of payments and reserve position of members developments in the exchange markets, as well as the desirability promoting over time balanced positions in the Fund, provided member represents that it is proposing to purchase the another member because the purchasing member wishes equivalent amount of its own currency offered by the other shall be entitled to purchase the currency of the other member the Fund has given notice under Article VII, Section 3 that of the currency have become scarce.

(e) (i) Each member shall ensure that balances of purchased from the Fund are balances of a currency or can be exchanged at the time of a freely usable currency of its choice at an exchange between the two currencies equivalent to the exchange between them on the basis of Article XIX, Section

(ii) Each member whose currency is purchased from or is obtained in exchange for currency purchased the Fund shall collaborate with the Fund and bers to enable such balances of its currency exchanged, at the time of purchase, for the currencies of other members.

An exchange under (i) above of a currency that is not freely usable shall be made by the member whose cur rency is purchased unless that member and the purchasing member agree on another procedure.

A member purchasing from the Fund the freely usable currency of another member and wishing to exchange it at the time of purchase for another freely usable currency shall make the exchange with the other member if requested by that member. The exchange shall be made for a freely usable currency selected by the other member at the rate of exchange referred to in (i) above.

policies and procedures which it shall adopt, the Fund may provide a participant making a purchase in accordance with this special drawing rights instead of the currencies of other

Waiver of conditions may in its discretion, and on terms which safeguard its waive any of the conditions prescribed in Section 3(b)(iii) and Article, especially in the case of members with a record of large or continuous use of the Fund’s general resources. In waiver it shall take into consideration periodic or exceptional of the member requesting the waiver. The Fund shall also consideration a member’s willingness to pledge as collateral acceptable assets having a value sufficient in the opinion of the protect its interests and may require as a condition of waiver such collateral security.

Ineligibility to use the Fund’s general resources the Fund is of the opinion that any member is using the resources of the Fund in a manner contrary to the purposes of shall present to the member a report setting forth the views and prescribing a suitable time for reply. After presenting to a member, the Fund may limit the use of its general the member. If no reply to the report is received from the within the prescribed time, or if the reply received is unsat-the Fund may continue to limit the member’s use of the resources of the Fund or may, after giving reasonable notice to the member, declare it ineligible to use the general resources Fund.

Section 6. O ther purchases and sales of special drawing Fund

(a) The Fund may accept special drawing rights offered pant in exchange for an equivalent amount of the currencies members.

(b) The Fund may provide a participant, at its request, drawing rights for an equivalent amount of the currencies members. The Fund’s holdings of a member’s currency increased as a result of these transactions above the level holdings would be subject to charges under Section 8(b)(ii) Article.

(c) The currencies provided or accepted by the Fund under tion shall be selected in accordance with policies that take the principles of Section 3(d) or 7(i) of thisArticle. The Fund into transactions under this Section only if a member whose provided or accepted by the Fund concurs in that use of its

Section 7. Repurchase by a member of its currency held by

(a) A member shall be entitled to repurchase at any time holdings of its currency that are subject to charges under of this Article.

(b) A member that has made a purchase under Section cle will be expected normally, as its balance of payments position improves, to repurchase the Fund’s holdings of its result from the purchase and are subject to charges under of this Article. A member shall repurchase these holdings dance with policies on repurchase that the Fund shall adopt consultation with the member, the Fund represents to the it should repurchase because of an improvement in its balance ments and reserve position.

(c) A member that has made a purchase under Section Article shall repurchase the Fund’s holdings of its currency from the purchase and are subject to charges under Section Article not later than five years after the date on which

The Fund may prescribe that repurchase shall be made by a installments during the period beginning three years and years after the date of a purchase. The Fund, by an eighty-five majority of the total voting power, may change the periods for under this subsection, and any period so adopted shall apply members. Fund, by an eighty-five percent majority of the total voting adopt periods other than those that apply in accordance with which shall be the same for all members, for the repurchase of currency acquired by the Fund pursuant to a special pol-use of its general resources.

member shall repurchase, in accordance with policies that the adopt by a seventy percent majority of the total voting power, holdings of its currency that are not acquired as a result of and are subject to charges under Section 8(b)(ii) of this decision prescribing that under a policy on the use of the general the Fund the period for repurchase under (c) or (d) above shorter than the one in effect under the policy shall apply only acquired by the Fund subsequent to the effective date of the

Fund, on the request of a member, may postpone the date of a repurchase obligation, but not beyond the maximum

(c) or (d) above or under policies adopted by the Fund above, unless the Fund determines, by a seventy percent the total voting power, that a longer period for repurchase consistent with the temporary use of the general resources of justified because discharge on the due date would result in hardship for the member.

Fund’s policies under Section 3(d) of this Article may be supplemented by policies under which the Fund may decide after con with a member to sell under Section 3(b) of this Article its the member’s currency that have not been repurchased in with this Section 7, without prejudice to any action that the be authorized to take under any other provision of this repurchases under this Section shall be made with special rights or with the currencies of other members specified by the

Fund. The Fund shall adopt policies and procedures with currencies to be used by members in making repurchases account the principles in Section 3(d) of this Article. The ings of a member’s currency that is used in repurchase increased by the repurchase above the level at which they subject to charges under Section 8(b)(ii) of this Article.

( j) (i) If a member’s currency specified by the Fund above is not a freely usable currency, the member ensure that the repurchasing member can obtain time of the repurchase in exchange for a currency selected by the member whose currency specified. An exchange of currency under this shall take place at an exchange rate between rencies equivalent to the exchange rate between the basis of Article XIX, Section 7(a).

(ii) Each member whose currency is specified by repurchase shall collaborate with the Fund and bers to enable repurchasing members, at the repurchase, to obtain the specified currency for the freely usable currencies of other members.

(iii) An exchange under ( j)(i) above shall be made member whose currency is specified unless and the repurchasing member agree on another

(iv) If a repurchasing member wishes to obtain, of the repurchase, the freely usable currency member specified by the Fund under (i) above, if requested by the other member, obtain from the other member in exchange for a currency at the rate of exchange referred to in The Fund may adopt regulations on the currency to be provided in an exchange.

Section 8. Charges

(a) (i) The Fund shall levy a service charge on the a member of special drawing rights or the another member held in the General Resources in exchange for its own currency, provided may levy a lower service charge on reserve purchases than on other purchases. The service charge on reserve tranche purchases shall not exceed one-half of one percent. The Fund may levy a charge for stand-by or similar arrange-ments. The Fund may decide that the charge for an arrange-ment shall be offset against the service charge levied under

(i) above on purchases under the arrangement.

Fund shall levy charges on its average daily balances of a currency held in the General ResourcesAccount to the extent have been acquired under a policy that has been the sub ject of an exclusion under Article XXX(c), or exceed the amount of the member’s quota after excluding any balances referred to in (i) above.

charge normally shall rise at intervals during the period in balances are held.

member fails to make a repurchase required under Section 7 Article, the Fund, after consultation with the member on the the Fund’s holdings of its currency, may impose such the Fund deems appropriate on its holdings of the member’s should have been repurchased. seventy percent majority of the total voting power shall be the determination of the rates of charge under (a) and (b) shall be uniform for all members, and under (c) above. member shall pay all charges in special drawing rights, pro exceptional circumstances the Fund may permit a member charges in the currencies of other members specified by the Fund, consultation with them, or in its own currency. The Fund’s hold-member’s currency shall not be increased as a result of pay-other members under this provision above the level at which be subject to charges under (b)(ii) above.

Remuneration

Fund shall pay remuneration on the amount by which the of quota prescribed under (b) or (c) below exceeds the

Fund’s average daily balances of a member’s currency held eral ResourcesAccount other than balances acquired under has been the subject of an exclusion under Article XXX(c). remuneration, which shall be determined by the Fund by a cent majority of the total voting power, shall be the same bers and shall be not more than, nor less than four-fifths of, interest under Article XX, Section 3. In establishing the neration, the Fund shall take into account the rates of Article V, Section 8(b).

(b) The percentage of quota applying for the purposes shall be:

(i) for each member that became a member before amendment of this Agreement, a percentage corresponding to seventy-five percent of its date of the second amendment of this Agreement, each member that became a member after the second amendment of this Agreement, a percentage quota calculated by dividing the total of the responding to the percentages of quota that other members on the date on which the member a member by the total of the quotas of the other on the same date; plus

(ii) the amounts it has paid to the Fund in currency drawing rights under Article III, Section 3(a) date applicable under (b)(i) above; and minus

(iii) the amounts it has received from the Fund in special drawing rights under Article III, Section the date applicable under (b)(i) above.

(c) The Fund, by a seventy percent majority of the total voting may raise the latest percentage of quota applying for the purposes above to each member to:

(i) a percentage, not in excess of one hundred shall be determined for each member on the same criteria for all members, or

(ii) one hundred percent for all members.

Remuneration shall be paid in special drawing rights, provided the Fund or the member may decide that the payment to the shall be made in its own currency.

Computations value of the Fund’s assets held in the accounts of the General shall be expressed in terms of the special drawing right.

computations relating to currencies of members for the pur applying the provisions of thisAgreement, exceptArticle IV and shall be at the rates at which the Fund accounts for these accordance with Section 11 of this Article. Computations for the determination of amounts of currency in quota for the purpose of applying the provisions of this shall not include currency held in the Special Disbursement in the Investment Account.

Maintenance of value value of the currencies of members held in the General Account shall be maintained in terms of the special draw-accordance with exchange rates under Article XIX, Sec-

adjustment in the Fund’s holdings of a member’s currency this Section shall be made on the occasion of the use of that an operation or transaction between the Fund and another at such other times as the Fund may decide or the member Payments to or by the Fund in respect of an adjustment within a reasonable time, as determined by the Fund, after adjustment, and at any other time requested by the

Other operations and transactions

Fund shall be guided in all its policies and decisions under by the objectives set forth in Article VIII, Section 7 and by of avoiding the management of the price, or the establish fixed price, in the gold market.

(b) Decisions of the Fund to engage in operations or under (c), (d), and (e) below shall be made by an eighty-five majority of the total voting power.

(c) The Fund may sell gold for the currency of any member sulting the member for whose currency the gold is sold, provided Fund’s holdings of a member’s currency held in the General Account shall not be increased by the sale above the level would be subject to charges under Section 8(b)(ii) of this Article the concurrence of the member, and provided that, at the request member, the Fund at the time of sale shall exchange for the another member such part of the currency received as would an increase.The exchange of a currency for the currency of ber shall be made after consultation with that member, increase the Fund’s holdings of that member’s currency above at which they would be subject to charges under Section 8(b)(ii) Article. The Fund shall adopt policies and procedures with exchanges that take into account the principles applied under of this Article. Sales under this provision to a member shall agreed for each transaction on the basis of prices in the market.

(d) The Fund may accept payments from a member in of special drawing rights or currency in any operations or under this Agreement. Payments to the Fund under this provision be at a price agreed for each operation or transaction on prices in the market.

(e) The Fund may sell gold held by it on the date of amendment of this Agreement to those members that were August 31, 1975 and that agree to buy it, in proportion to on that date. If the Fund intends to sell gold under (c) above purpose of ( f )(ii) below, it may sell to each developing agrees to buy it that portion of the gold which, if sold under would have produced the excess that could have been distributed under ( f )(iii) below. The gold that would be sold under this a member that has been declared ineligible to use the general of the Fund under Section 5 of this Article shall be sold to ineligibility ceases, unless the Fund decides to make the The sale of gold to a member under this subsection (e) shall exchange for its currency and at a price equivalent at the time one special drawing right per 0.888 671 gram of fine gold.

Whenever under (c) above the Fund sells gold held by it on the second amendment of this Agreement, an amount of the equivalent at the time of sale to one special drawing right per gram of fine gold shall be placed in the General Resources except as the Fund may decide otherwise under (g) below, shall be held in the Special Disbursement Account. The the Special DisbursementAccount shall be held separately other accounts of the General Department, and may be used at to make transfers to the General Resources Account for immediate use in operations and transactions authorized by provisions of this Agreement other than this Section;

for operations and transactions that are not authorized by other provisions of this Agreement but are consistent with the purposes of the Fund. Under this subsection ( f )(ii) balance of payments assistance may be made available on special terms to developing members in difficult cir cumstances, and for this purpose the Fund shall take into account the level of per capita income;

for distribution to those developing members that were members onAugust 31, 1975, in proportion to their quotas on that date, of such part of the assets that the Fund decides to use for the purposes of (ii) above as corresponds to the proportion of the quotas of these members on the date of distribution to the total of the quotas of all members on the same date, provided that the distribution under this provision to a member that has been declared ineligible to use the general resources of the Fund under Section 5 of this Article shall be made when the ineligibility ceases, unless the Fund decides to make the distribution sooner.

use assets pursuant to (i) above shall be taken by a seventy majority of the total voting power, and decisions pursuant to (ii) above shall be taken by an eighty-five percent majority of the power. Fund may decide, by an eighty-five percent majority of the power, to transfer a part of the excess referred to in ( f ) Investment Account for use pursuant to the provisions of Section 6( f ).

(h) Pending uses specified under ( f ) above, the Fund member’s currency held in the Special Disbursement investment as it may determine, in accordance with rules lations adopted by the Fund by a seventy percent majority voting power. The income of investment and interest received

(ii) above shall be placed in the Special Disbursement Account.

(i) The General ResourcesAccount shall be reimbursed time in respect of the expenses of administration of the bursementAccount paid from the General ResourcesAccount fers from the Special DisbursementAccount on the basis of estimate of such expenses.

( j) The Special Disbursement Account shall be terminated event of the liquidation of the Fund and may be terminated liquidation of the Fund by a seventy percent majority of the power. Upon termination of the account because of the liquidation the Fund, any assets in this account shall be distributed in with the provisions of Schedule K. Upon termination prior of the Fund, any assets in this account shall be transferred to Resources Account for immediate use in operations and The Fund, by a seventy percent majority of the total voting adopt rules and regulations for the administration of the bursement Account.

(k) Whenever under (c) above the Fund sells gold acquired the date of the second amendment of this Agreement, an amount proceeds equivalent to the acquisition price of the gold shall in the General ResourcesAccount, and any excess shall be Investment Account for use pursuant to the provisions of Section 6( f ). If any gold acquired by the Fund after the second amendment of this Agreement is sold after April prior to the date of entry into force of this provision, then, upon into force of this provision, and notwithstanding the limit Article XII, Section 6( f )(ii), the Fund shall transfer to the Account from the General Resources Account an amount proceeds of such sale less (i) the acquisition price of the gold

(ii) any amount of such proceeds in excess of the acquisition may have already been transferred to the Investment Account the date of entry into force of this provision.

A VI rticle Capital Transfers

Use of the Fund’s general resources for capital transfers member may not use the Fund’s general resources to meet a sustained outflow of capital except as provided in Section 2 of and the Fund may request a member to exercise controls to use of the general resources of the Fund. If, after receiving request, a member fails to exercise appropriate controls, the Fund the member ineligible to use the general resources of the

Nothing in this Section shall be deemed: to prevent the use of the general resources of the Fund for capital transactions of reasonable amount required for the expansion of exports or in the ordinary course of trade, banking, or other business; or to affect capital movements which are met out of a mem ber’s own resources, but members undertake that such capital movements will be in accordance with the purposes of the Fund.

Special provisions for capital transfers shall be entitled to make reserve tranche purchases to meet transfers.

Controls of capital transfers may exercise such controls as are necessary to regulate capital movements, but no member may exercise these a manner which will restrict payments for current transac which will unduly delay transfers of funds in settlement of commitments, except as provided in Article VII, Section 3(b) and in Section 2.

A VII rticle Replenishment and Scarce Currencies

Section 1. Measures to replenish the Fund’s holdings of currencies

The Fund may, if it deems such action appropriate to holdings of any member’s currency in the General Resources needed in connection with its transactions, take either or following steps:

(i) propose to the member that, on terms and agreed between the Fund and the member, the its currency to the Fund or that, with the concurrence the member, the Fund borrow such currency other source either within or outside the territories member, but no member shall be under any make such loans to the Fund or to concur in ing of its currency by the Fund from any other

(ii) require the member, if it is a participant, to rency to the Fund for special drawing rights General Resources Account, subject to Article tion 4. In replenishing with special drawing Fund shall pay due regard to the principles of under Article XIX, Section 5.

Section 2. General scarcity of currency If the Fund finds that a general scarcity of a particular developing, the Fund may so inform members and may issue setting forth the causes of the scarcity and containing recommendations designed to bring it to an end. A representative of the member currency is involved shall participate in the preparation of

Section 3. Scarcity of the Fund’s holdings

(a) If it becomes evident to the Fund that the demand ber’s currency seriously threatens the Fund’s ability to supply rency, the Fund, whether or not it has issued a report under this Article, shall formally declare such currency scarce apportion its existing and accruing supply of the scarce cur-due regard to the relative needs of members, the general economic situation, and any other pertinent considera Fund shall also issue a report concerning its action. formal declaration under (a) above shall operate as an authori member, after consultation with the Fund, temporarily to limitations on the freedom of exchange operations in the scarce Subject to the provisions of Article IV and Schedule C, the shall have complete jurisdiction in determining the nature of limitations, but they shall be no more restrictive than is necessary demand for the scarce currency to the supply held by, or the member in question, and they shall be relaxed and rapidly as conditions permit.

authorization under (b) above shall expire whenever the Fund declares the currency in question to be no longer scarce.

Administration of restrictions member imposing restrictions in respect of the currency of any member pursuant to the provisions of Section 3(b) of this Article sympathetic consideration to any representations by the other regarding the administration of such restrictions.

Effect of other international agreements on restrictions agree not to invoke the obligations of any engagements with other members prior to thisAgreement in such manner prevent the operation of the provisions of this Article.

A VIII rticle General Obligations of Members

Introduction addition to the obligations assumed under other articles of this each member undertakes the obligations set out in this

Section 2. Avoidance of restrictions on current payments

(a) Subject to the provisions of Article VII, Section 3(b) XIV, Section 2, no member shall, without the approval impose restrictions on the making of payments and transfers international transactions.

(b) Exchange contracts which involve the currency of and which are contrary to the exchange control regulations ber maintained or imposed consistently with this Agreement unenforceable in the territories of any member. In addition, may, by mutual accord, cooperate in measures for the purpose ing the exchange control regulations of either member more provided that such measures and regulations are consistent Agreement.

Section 3. Avoidance of discriminatory currency practices No member shall engage in, or permit any of its fiscal referred to in Article V, Section 1 to engage in, any discriminatory rency arrangements or multiple currency practices, whether outside margins under Article IV or prescribed by or under except as authorized under this Agreement or approved by such arrangements and practices are engaged in at the date Agreement enters into force, the member concerned shall the Fund as to their progressive removal unless they are maintained imposed under Article XIV, Section 2, in which case the Section 3 of that Article shall apply.

Section 4. Convertibility of foreign-held balances

(a) Each member shall buy balances of its currency held member if the latter, in requesting the purchase, represents:

(i) that the balances to be bought have been recently as a result of current transactions; or

(ii) that their conversion is needed for making current transactions.

member shall have the option to pay either in special draw subject to Article XIX, Section 4, or in the currency of the making the request.

obligation in (a) above shall not apply when:

the convertibility of the balances has been restricted con-sistently with Section 2 of this Article or Article VI, Section 3;

the balances have accumulated as a result of transactions effected before the removal by a member of restrictions maintained or imposed under Article XIV, Section 2;

the balances have been acquired contrary to the exchange regulations of the member which is asked to buy them;

the currency of the member requesting the purchase has been declared scarce under Article VII, Section 3(a); or the member requested to make the purchase is for any reason not entitled to buy currencies of other members from the Fund for its own currency.

Furnishing of information

Fund may require members to furnish it with such informa deems necessary for its activities, including, as the minimum the effective discharge of the Fund’s duties, national data following matters: official holdings at home and abroad of (1) gold, (2) for eign exchange;

holdings at home and abroad by banking and financial agencies, other than official agencies, of (1) gold, (2) foreign exchange;

production of gold; gold exports and imports according to countries of desti nation and origin;

total exports and imports of merchandise, in terms of local currency values, according to countries of destination and origin;

(vi) international balance of payments, including goods and services, (2) gold transactions, (3) tal transactions, and (4) other items;

(vii) international investment position, i.e., investments the territories of the member owned abroad ments abroad owned by persons in its territories it is possible to furnish this information;

(viii) national income;

(ix) price indices, i.e., indices of commodity prices sale and retail markets and of export and import

(x) buying and selling rates for foreign currencies;

(xi) exchange controls, i.e., a comprehensive exchange controls in effect at the time of assuming bership in the Fund and details of subsequent they occur; and

(xii) where official clearing arrangements exist, amounts awaiting clearance in respect of commercial financial transactions, and of the length of which such arrears have been outstanding.

(b) In requesting information the Fund shall take into the varying ability of members to furnish the data requested. shall be under no obligation to furnish information in such the affairs of individuals or corporations are disclosed. Members take, however, to furnish the desired information in as accurate a manner as is practicable and, so far as possible, estimates.

(c) The Fund may arrange to obtain further information with members. It shall act as a centre for the collection and information on monetary and financial problems, thus facilitating preparation of studies designed to assist members in developing which further the purposes of the Fund.

onsultation between members regarding existing interna tional agreements under thisAgreement a member is authorized in the special or circumstances specified in the Agreement to maintain or restrictions on exchange transactions, and there are other between members entered into prior to this Agreement conflict with the application of such restrictions, the parties to engagements shall consult with one another with a view to making mutually acceptable adjustments as may be necessary. The provi-Article shall be without prejudice to the operation ofArticle 5.

bligation to collaborate regarding policies on reserve assets member undertakes to collaborate with the Fund and with other order to ensure that the policies of the member with respect assets shall be consistent with the objectives of promoting international surveillance of international liquidity and making drawing right the principal reserve asset in the international system.

A IX rticle Status, Immunities, and Privileges

Purposes of Article the Fund to fulfill the functions with which it is entrusted, immunities, and privileges set forth in this Article shall be the Fund in the territories of each member.

Status of the Fund shall possess full juridical personality, and in particular, the to contract;

to acquire and dispose of immovable and movable prop erty; and to institute legal proceedings.

Section 3. Immunity from judicial process

The Fund, its property and its assets, wherever located and soever held, shall enjoy immunity from every form of judicial except to the extent that it expressly waives its immunity for of any proceedings or by the terms of any contract.

Section 4. Immunity from other action

Property and assets of the Fund, wherever located and soever held, shall be immune from search, requisition, expropriation, or any other form of seizure by executive action.

Section 5. Immunity of archives The archives of the Fund shall be inviolable.

Section 6. Freedom of assets from restrictions

To the extent necessary to carry out the activities provided Agreement, all property and assets of the Fund shall be free tions, regulations, controls, and moratoria of any nature.

Section 7. Privilege for communications

The official communications of the Fund shall be accorded bers the same treatment as the official communications members.

Section 8. Immunities and privileges of officers and employees All Governors, Executive Directors,Alternates, members tees, representatives appointed underArticle XII, Section 3( of any of the foregoing persons, officers, and employees of

(i) shall be immune from legal process with respect performed by them in their official capacity the Fund waives this immunity;

(ii) not being local nationals, shall be granted the nities from immigration restrictions, alien requirements, and national service obligations same facilities as regards exchange restrictions accorded by members to the representatives, officials, and employees of comparable rank of other members; and shall be granted the same treatment in respect of traveling facilities as is accorded by members to representatives, officials, and employees of comparable rank of other members.

Immunities from taxation

Fund, its assets, property, income, and its operations and authorized by this Agreement shall be immune from all from all customs duties. The Fund shall also be immune for the collection or payment of any tax or duty. shall be levied on or in respect of salaries and emoluments Fund to Executive Directors,Alternates, officers, or employ-Fund who are not local citizens, local subjects, or other local taxation of any kind shall be levied on any obligation or secu by the Fund, including any dividend or interest thereon, by held:

which discriminates against such obligation or security solely because of its origin; or if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business main-tained by the Fund.

Application of Article member shall take such action as is necessary in its own ter the purpose of making effective in terms of its own law the set forth in this Article and shall inform the Fund of the action which it has taken.

A X rticle Relations with Other International Organizations

The Fund shall cooperate within the terms of thisAgreement general international organization and with public international zations having specialized responsibilities in related fields. ments for such cooperation which would involve a modification provision of this Agreement may be effected only after amendment this Agreement under Article XXVIII.

A XI rticle Relations with Non-Member Countries

Section 1. Undertakings regarding relations with non-member

Each member undertakes:

(i) not to engage in, nor to permit any of its fiscal referred to in Article V, Section 1 to engage actions with a non-member or with persons member’s territories which would be contrary provisions of this Agreement or the purposes

(ii) not to cooperate with a non-member or with a non-member’s territories in practices which contrary to the provisions of this Agreement poses of the Fund; and

(iii) to cooperate with the Fund with a view to the in its territories of appropriate measures to prevent actions with non-members or with persons tories which would be contrary to the provisions Agreement or the purposes of the Fund.

Section 2. Restrictions on transactions with non-member Nothing in this Agreement shall affect the right of any impose restrictions on exchange transactions with non-members persons in their territories unless the Fund finds that such prejudice the interests of members and are contrary to the the Fund.

A XII rticle Organization and Management

Structure of the Fund shall have a Board of Governors, an Executive Board, a Director, and a staff, and a Council if the Board of Governors an eighty-five percent majority of the total voting power, provisions of Schedule D shall be applied.

Board of Governors powers under this Agreement not conferred directly on the Governors, the Executive Board, or the Managing Director vested in the Board of Governors. The Board of Governors shall one Governor and one Alternate appointed by each member manner as it may determine. Each Governor and each Alternate until a new appointment is made. No Alternate may vote absence of his principal. The Board of Governors shall the Governors as Chairman. Board of Governors may delegate to the Executive Board exercise any powers of the Board of Governors, except the conferred directly by this Agreement on the Board of

Board of Governors shall hold such meetings as may be pro-the Board of Governors or called by the Executive Board. the Board of Governors shall be called whenever requested members or by members having one-quarter of the total vot-

quorum for any meeting of the Board of Governors shall be a the Governors having not less than two-thirds of the total power. Governor shall be entitled to cast the number of votes allot Section 5 of this Article to the member appointing him.

Board of Governors may by regulation establish a procedure Executive Board, when it deems such action to be in the of the Fund, may obtain a vote of the Governors on a question without calling a meeting of the Board of Governors.

(g) The Board of Governors, and the Executive Board authorized, may adopt such rules and regulations as may or appropriate to conduct the business of the Fund.

(h) Governors and Alternates shall serve as such without tion from the Fund, but the Fund may pay them reasonable incurred in attending meetings.

(i) The Board of Governors shall determine the remuneration paid to the Executive Directors and their Alternates and the terms of the contract of service of the Managing Director. ( j) The Board of Governors and the Executive Board such committees as they deem advisable. Membership of need not be limited to Governors or Executive Directors Alternates.

Section 3. Executive Board

(a) The Executive Board shall be responsible for conducting business of the Fund, and for this purpose shall exercise all delegated to it by the Board of Governors.

(b) Subject to (c) below, the Executive Board shall consist Executive Directors elected by the members, with the Managing tor as chairman.

(c) For the purpose of each regular election of Executive the Board of Governors, by an eighty-five percent majority voting power, may increase or decrease the number of Executive tors specified in (b) above.

(d) Elections of Executive Directors shall be conducted of two years in accordance with regulations which shall be the Board of Governors. Such regulations shall include a total number of votes that more than one member may cast candidate.

(e) Each Executive Director shall appoint an Alternate power to act for him when he is not present, provided that Governors may adopt rules enabling an Executive Director more than a specified number of members to appoint two Such rules, if adopted, may only be modified in the context lar election of Executive Directors and shall require an appointing two Alternates to designate: (i) the Alternate who the Executive Director when he is not present and both are present and (ii) theAlternate who shall exercise the pow-Executive Director under ( f ) below. When the Executive appointing them are present, Alternates may participate in may not vote. Executive Directors shall continue in office until their successors If the office of an Executive Director becomes vacant more days before the end of his term, another Executive Director elected for the remainder of the term by the members that former Executive Director.Amajority of the votes cast shall for election. While the office remains vacant, the Alternate Executive Director shall exercise his powers, except that an Alternate.

Executive Board shall function in continuous session at the office of the Fund and shall meet as often as the business of may require. quorum for any meeting of the Executive Board shall be a the Executive Directors having not less than one-half of the power.

Each Executive Director shall be entitled to cast the num ber of votes which counted towards his election. When the provisions of Section 5(b) of this Article are applicable, the votes which an Executive Director would otherwise be entitled to cast shall be increased or decreased correspondingly. All the votes which an Executive Direc tor is entitled to cast shall be cast as a unit.

When the suspension of the voting rights of a member is terminated under Article XXVI, Section 2(b), the member may agree with all the members that have elected an Executive Director that the number of votes allotted to that member shall be cast by such Executive Director, provided that, if no regular election of Executive Directors has been conducted during the period of the suspension, the Executive Director in whose election the member had participated prior to the suspension, or his successor elected in accordance with paragraph 3(c)(i) of Schedule L or with ( f ) above, shall be entitled to cast the number of votes allotted to the member. The member deemed to have participated in the election of tive Director entitled to cast the number of votes to the member.

( j) The Board of Governors shall adopt regulations under member may send a representative to attend any meeting tive Board when a request made by, or a matter particularly that member is under consideration.

Section 4. Managing Director and staff

(a) The Executive Board shall select a Managing Director not be a Governor or an Executive Director. The Managing shall be chairman of the Executive Board, but shall have no a deciding vote in case of an equal division. He may participate ings of the Board of Governors, but shall not vote at such meetings. Managing Director shall cease to hold office when the Executive so decides.

(b) The Managing Director shall be chief of the operating the Fund and shall conduct, under the direction of the Executive the ordinary business of the Fund. Subject to the general Executive Board, he shall be responsible for the organization, ment, and dismissal of the staff of the Fund.

(c) The Managing Director and the staff of the Fund, in of their functions, shall owe their duty entirely to the Fund other authority. Each member of the Fund shall respect the character of this duty and shall refrain from all attempts to of the staff in the discharge of these functions.

(d) In appointing the staff the Managing Director shall, paramount importance of securing the highest standards and of technical competence, pay due regard to the importance recruiting personnel on as wide a geographical basis as possible.

Section 5. Voting

(a) The total votes of each member shall be equal to the basic votes and its quota-based votes.

(i) The basic votes of each member shall be the votes that results from the equal distribution the members of 5.502 percent of the aggregate sum of the total voting power of all the members, provided that there shall be no fractional basic votes. The quota-based votes of each member shall be the num ber of votes that results from the allocation of one vote for each part of its quota equivalent to one hundred thou-sand special drawing rights.

Whenever voting is required underArticle V, Section 4 or 5, each have the number of votes to which it is entitled under (a) adjusted by the addition of one vote for the equivalent of each four hundred thousand special drawing rights of net sales of its currency from the general resources of the Fund up to the date when the vote is taken, or by the subtraction of one vote for the equivalent of each four hundred thousand special drawing rights of its net purchases under Article V, Section 3(b) and ( f ) up to the date when the vote is taken, neither net purchases nor net sales shall be deemed at any exceed an amount equal to the quota of the member involved. as otherwise specifically provided, all decisions of the made by a majority of the votes cast.

Reserves, distribution of net income, and investment Fund shall determine annually what part of its net income placed to general reserve or special reserve, and what part, if distributed.

Fund may use the special reserve for any purpose for which the general reserve, except distribution. distribution is made of the net income of any year, it shall all members in proportion to their quotas. Fund, by a seventy percent majority of the total voting power, at any time to distribute any part of the general reserve. Any distribution shall be made to all members in proportion to their

(e) Payments under (c) and (d) above shall be made in ing rights, provided that either the Fund or the member may the payment to the member shall be made in its own currency.

( f ) (i) The Fund may establish an Investment Account purposes of this subsection ( f ). The assets of ment Account shall be held separately from accounts of the General Department.

(ii) The Fund may decide to transfer to the Investment a part of the proceeds of the sale of gold in with Article V, Section 12(g) and, by a seventy majority of the total voting power, may decide to the Investment Account, for immediate currencies held in the General Resources Account. amount of these transfers shall not exceed the of the general reserve and the special reserve of the decision.

(iii) The Fund may use a member’s currency Investment Account for investment as it may in accordance with rules and regulations adopted Fund by a seventy percent majority of the power. The rules and regulations adopted pursuant provision shall be consistent with (vii), (viii), below.

(iv) The income of investment may be invested in with the provisions of this subsection ( f ). invested shall be held in the Investment Account be used for meeting the expenses of conducting ness of the Fund.

(v) The Fund may use a member’s currency Investment Account to obtain the currencies meet the expenses of conducting the business

(vi) The Investment Account shall be terminated of liquidation of the Fund and may be terminated, amount of the investment may be reduced, prior dation of the Fund by a seventy percent majority total voting power.

(vii) Upon termination of the Investment Account liquidation of the Fund, any assets in this account distributed in accordance with the provisions of Sched-ule K, provided that a portion of these assets corresponding to the proportion of the assets transferred to this account under Article V, Section 12(g) to the total of the assets transferred to this account shall be deemed to be assets held in the Special DisbursementAccount and shall be distributed in accordance with Schedule K, paragraph 2(a)(ii).

Upon termination of the Investment Account prior to liquidation of the Fund, a portion of the assets held in this account corresponding to the proportion of the assets transferred to this account under Article V, Section 12(g) to the total of the assets transferred to the account shall be transferred to the Special Disbursement Account if it has not been terminated, and the balance of the assets held in the Investment Account shall be transferred to the General Resources Account for immediate use in opera-tions and transactions.

On a reduction of the amount of the investment by the Fund, a portion of the reduction corresponding to the proportion of the assets transferred to the Investment Account under Article V, Section 12(g) to the total of the assets transferred to this account shall be transferred to the Special Disbursement Account if it has not been ter-minated, and the balance of the reduction shall be trans-ferred to the General Resources Account for immediate use in operations and transactions.

Publication of reports

Fund shall publish an annual report containing an audited its accounts, and shall issue, at intervals of three months or summary statement of its operations and transactions and its special drawing rights, gold, and currencies of members. Fund may publish such other reports as it deems desirable out its purposes.

Communication of views to members shall at all times have the right to communicate its views any member on any matter arising under this Agreement.

The Fund may, by a seventy percent majority of the total voting decide to publish a report made to a member regarding its economic conditions and developments which directly tend a serious disequilibrium in the international balance of members. The relevant member shall be entitled to representation accordance with Section 3( j) of thisArticle. The Fund shall a report involving changes in the fundamental structure of organization of members.

A XIII rticle Offices and Depositories

Section 1. Location of offices

The principal office of the Fund shall be located in the territory member having the largest quota, and agencies or branch be established in the territories of other members.

Section 2. Depositories

(a) Each member shall designate its central bank as a depository all the Fund’s holdings of its currency, or if it has no central designate such other institution as may be acceptable to the

(b) The Fund may hold other assets, including gold, in tories designated by the five members having the largest such other designated depositories as the Fund may select. least one-half of the holdings of the Fund shall be held in the designated by the member in whose territories the Fund has office and at least forty percent shall be held in the depositories nated by the remaining four members referred to above. transfers of gold by the Fund shall be made with due regard of transport and anticipated requirements of the Fund. In an the Executive Board may transfer all or any part of the holdings to any place where they can be adequately protected.

Section 3. Guarantee of the Fund’s assets

Each member guarantees all assets of the Fund against from failure or default on the part of the depository designated

A XIV rticle Transitional Arrangements

Notification to the Fund member shall notify the Fund whether it intends to avail itself transitional arrangements in Section 2 of this Article, or whether to accept the obligations of Article VIII, Sections 2, 3, and availing itself of the transitional arrangements shall notify soon thereafter as it is prepared to accept these obligations.

Exchange restrictions that has notified the Fund that it intends to avail itself of arrangements under this provision may, notwithstanding the any other articles of this Agreement, maintain and adapt circumstances the restrictions on payments and transfers international transactions that were in effect on the date on became a member. Members shall, however, have continuous their foreign exchange policies to the purposes of the Fund, as conditions permit, they shall take all possible measures such commercial and financial arrangements with other will facilitate international payments and the promotion of system of exchange rates. In particular, members shall withdraw maintained under this Section as soon as they are satisfied be able, in the absence of such restrictions, to settle their payments in a manner which will not unduly encumber their general resources of the Fund.

Action of the Fund relating to restrictions shall make annual reports on the restrictions in force under this Article. Any member retaining any restrictions incon Article VIII, Sections 2, 3, or 4 shall consult the Fund to their further retention. The Fund may, if it deems such necessary in exceptional circumstances, make representations member that conditions are favorable for the withdrawal of any restriction, or for the general abandonment of restrictions, with the provisions of any other articles of thisAgreement. shall be given a suitable time to reply to such rep If the Fund finds that the member persists in maintaining restrictions which are inconsistent with the purposes of member shall be subject to Article XXVI, Section 2(a).

A XV rticle Special Drawing Rights

Section 1. Authority to allocate special drawing rights

(a) To meet the need, as and when it arises, for a supplement ing reserve assets, the Fund is authorized to allocate special rights in accordance with the provisions of Article XVIII that are participants in the Special Drawing Rights Department.

(b) In addition, the Fund shall allocate special drawing members that are participants in the Special Drawing Rights ment in accordance with the provisions of Schedule M.

Section 2. Valuation of the special drawing right

The method of valuation of the special drawing right shall mined by the Fund by a seventy percent majority of the power, provided, however, that an eighty-five percent majority total voting power shall be required for a change in the principle ation or a fundamental change in the application of the effect.

A XVI rticle General Department and Special Drawing Rights Department

Section 1. Separation of operations and transactions

All operations and transactions involving special drawing be conducted through the Special Drawing Rights Department. operations and transactions on the account of the Fund authorized under this Agreement shall be conducted through the General ment. Operations and transactions pursuant to Article XVII, shall be conducted through the General Department as well cial Drawing Rights Department.

Separation of assets and property and property of the Fund, except resources administered V, Section 2(b), shall be held in the General Department, assets and property acquired under Article XX, Section 2 XXIV and XXV and Schedules H and I shall be held in the Drawing Rights Department.Any assets or property held in one shall not be available to discharge or meet the liabilities, or losses of the Fund incurred in the conduct of the opera transactions of the other Department, except that the expenses conducting the business of the Special Drawing Rights Department by the Fund from the General Department which shall be in special drawing rights from time to time by assessments XX, Section 4 made on the basis of a reasonable estimate expenses.

Recording and information changes in holdings of special drawing rights shall take effect recorded by the Fund in the Special Drawing Rights Depart Participants shall notify the Fund of the provisions of this Agree which special drawing rights are used. The Fund may participants to furnish it with such other information as it deems its functions.

A XVII rticle Participants and Other Holders of Special Drawing Rights

Participants member of the Fund that deposits with the Fund an instrument that it undertakes all the obligations of a participant in the Drawing Rights Department in accordance with its law and that all steps necessary to enable it to carry out all of these obli-become a participant in the Special Drawing Rights as of the date the instrument is deposited, except that no become a participant before the provisions of this Agree pertaining exclusively to the Special Drawing Rights Department into force and instruments have been deposited under this

Section by members that have at least seventy-five percent of quotas.

Section 2. Fund as a holder The Fund may hold special drawing rights in the General Account and may accept and use them in operations and conducted through the General Resources Account with participants accordance with the provisions of this Agreement or with holders in accordance with the terms and conditions prescribed Section 3 of this Article.

Section 3. Other holders

The Fund may prescribe:

(i) as holders, non-members, members that are non-participants, institutions that perform functions of a central bank than one member, and other official entities;

(ii) the terms and conditions on which prescribed be permitted to hold special drawing rights and and use them in operations and transactions pants and other prescribed holders; and

(iii) the terms and conditions on which participants Fund through the General Resources Account into operations and transactions in special drawing with prescribed holders.

An eighty-five percent majority of the total voting power required for prescriptions under (i) above. The terms and prescribed by the Fund shall be consistent with the provisions Agreement and the effective functioning of the Special Drawing Department.

A XVIII rticle Allocation and Cancellation of Special Drawing Rights rinciples and considerations governing allocation and cancellation its decisions with respect to the allocation and cancellation drawing rights the Fund shall seek to meet the long-term as and when it arises, to supplement existing reserve assets manner as will promote the attainment of its purposes and will economic stagnation and deflation as well as excess demand and the world. first decision to allocate special drawing rights shall take into special considerations, a collective judgment that there is a to supplement reserves, and the attainment of a better bal-payments equilibrium, as well as the likelihood of a better work-adjustment process in the future.

Allocation and cancellation Decisions of the Fund to allocate or cancel special drawing rights made for basic periods which shall run consecutively and shall in duration. The first basic period shall begin on the date decision to allocate special drawing rights or such later date specified in that decision. Any allocations or cancellations place at yearly intervals.

rates at which allocations are to be made shall be expressed percentages of quotas on the date of each decision to allocate. The which special drawing rights are to be cancelled shall be percentages of net cumulative allocations of special draw the date of each decision to cancel. The percentages shall for all participants. decision for any basic period the Fund may provide, not

(a) and (b) above, that:

the duration of the basic period shall be other than five years; or the allocations or cancellations shall take place at other than yearly intervals; or

(iii) the basis for allocations or cancellations shall tas or net cumulative allocations on dates other dates of decisions to allocate or cancel.

(d) A member that becomes a participant after a basic shall receive allocations beginning with the next basic period allocations are made after it becomes a participant unless decides that the new participant shall start to receive allocations ning with the next allocation after it becomes a participant. decides that a member that becomes a participant during a shall receive allocations during the remainder of that basic the participant was not a member on the dates established

(e) A participant shall receive allocations of special drawing made pursuant to any decision to allocate unless:

(i) the Governor for the participant did not vote the decision; and

(ii) the participant has notified the Fund in writing the first allocation of special drawing rights decision that it does not wish special drawing be allocated to it under the decision. On the participant, the Fund may decide to terminate of the notice with respect to allocations of special rights subsequent to the termination.

( f ) If on the effective date of any cancellation the amount drawing rights held by a participant is less than its share drawing rights that are to be cancelled, the participant shall negative balance as promptly as its gross reserve position shall remain in consultation with the Fund for this purpose. ing rights acquired by the participant after the effective date cellation shall be applied against its negative balance and

Section 3. Unexpected major developments

The Fund may change the rates or intervals of allocation lation during the rest of a basic period or change the length period or start a new basic period, if at any time the Fund able to do so because of unexpected major developments.

Decisions on allocations and cancellations

Decisions under Section 2(a), (b), and (c) or Section 3 of this be made by the Board of Governors on the basis of pro Managing Director concurred in by the Executive Board. making any proposal, the Managing Director, after hav himself that it will be consistent with the provisions of of this Article, shall conduct such consultations as will to ascertain that there is broad support among participants proposal. In addition, before making a proposal for the first the Managing Director shall satisfy himself that the provi Section 1(b) of this Article have been met and that there is support among participants to begin allocations; he shall make for the first allocation as soon after the establishment of the Drawing Rights Department as he is so satisfied. Managing Director shall make proposals: not later than six months before the end of each basic period;

if no decision has been taken with respect to allocation or cancellation for a basic period, whenever he is satisfied that the provisions of (b) above have been met;

when, in accordance with Section 3 of this Article, he considers that it would be desirable to change the rate or intervals of allocation or cancellation or change the length of a basic period or start a new basic period; or within six months of a request by the Board of Governors or the Executive Board;

that, if under (i), (iii), or (iv) above the Managing Director that there is no proposal which he considers to be consistent provisions of Section 1 of this Article that has broad support participants in accordance with (b) above, he shall report to the Governors and to the Executive Board. eighty-five percent majority of the total voting power shall be decisions under Section 2(a), (b), and (c) or Section 3 of except for decisions under Section 3 with respect to a the rates of allocation.

A XIX rticle Operations and Transactions in Special Drawing

Section 1. Use of special drawing rights

Special drawing rights may be used in the operations tions authorized by or under this Agreement.

Section 2. Operations and transactions between participants

(a) A participant shall be entitled to use its special drawing obtain an equivalent amount of currency from a participant under Section 5 of this Article.

(b) A participant, in agreement with another participant, special drawing rights to obtain an equivalent amount of currency the other participant.

(c) The Fund, by a seventy percent majority of the total voting may prescribe operations in which a participant is authorized in agreement with another participant on such terms and the Fund deems appropriate. The terms and conditions shall tent with the effective functioning of the Special Drawing Department and the proper use of special drawing rights in with this Agreement.

(d) The Fund may make representations to a participant into any operation or transaction under (b) or (c) above that ment of the Fund may be prejudicial to the process of according to the principles of Section 5 of this Article or inconsistent with Article XXII. A participant that persists into such operations or transactions shall be subject to Article Section 2(b).

Section 3. Requirement of need

(a) In transactions under Section 2(a) of this Article, except erwise provided in (c) below, a participant will be expected special drawing rights only if it has a need because of its payments or its reserve position or developments in its reserves, for the sole purpose of changing the composition of its reserves.

use of special drawing rights shall not be subject to challenge of the expectation in (a) above, but the Fund may make representations to a participant that fails to fulfill this expectation. A that persists in failing to fulfill this expectation shall be sub-Article XXIII, Section 2(b). Fund may waive the expectation in (a) above in any trans which a participant uses special drawing rights to obtain an amount of currency from a participant designated under Sec-Article that would promote reconstitution by the other under Section 6(a) of this Article; prevent or reduce a nega of the other participant; or offset the effect of a failure by participant to fulfill the expectation in (a) above.

Obligation to provide currency participant designated by the Fund under Section 5 of this provide on demand a freely usable currency to a participant drawing rights under Section 2(a) of this Article. A par-obligation to provide currency shall not extend beyond the which its holdings of special drawing rights in excess of its net allocation are equal to twice its net cumulative allocation or limit as may be agreed between a participant and the Fund. participant may provide currency in excess of the obligatory agreed higher limit.

Designation of participants to provide currency Fund shall ensure that a participant will be able to use its drawing rights by designating participants to provide currency amounts of special drawing rights for the purposes of Sec and 4 of this Article. Designations shall be made in accord following general principles supplemented by such other the Fund may adopt from time to time: A participant shall be subject to designation if its balance of payments and gross reserve position is sufficiently strong, but this will not preclude the possibility that a participant with a strong reserve position will be desig-nated even though it has a moderate balance of payments deficit. Participants shall be designated in such manner as will promote over time a balanced distribution ings of special drawing rights among them.

(ii) Participants shall be subject to designation promote reconstitution under Section 6(a) of to reduce negative balances in holdings of special rights, or to offset the effect of failures to fulfill tation in Section 3(a) of this Article.

(iii) In designating participants, the Fund normally priority to those that need to acquire special drawing to meet the objectives of designation under

(b) In order to promote over time a balanced distribution of special drawing rights under (a)(i) above, the Fund shall rules for designation in Schedule F or such rules as may under (c) below.

(c) The rules for designation may be reviewed at any time rules shall be adopted if necessary. Unless new rules are rules in force at the time of the review shall continue to apply.

Section 6. Reconstitution

(a) Participants that use their special drawing rights shall their holdings of them in accordance with the rules for reconstitution Schedule G or such rules as may be adopted under (b) below.

(b) The rules for reconstitution may be reviewed at any rules shall be adopted if necessary. Unless new rules are decision is made to abrogate rules for reconstitution, the at the time of review shall continue to apply.Aseventy percent of the total voting power shall be required for decisions to ify, or abrogate the rules for reconstitution.

Section 7. Exchange rates

(a) Except as otherwise provided in (b) below, the exchange transactions between participants under Section 2(a) and Article shall be such that participants using special drawing receive the same value whatever currencies might be provided whichever participants provide those currencies, and the adopt regulations to give effect to this principle.

Fund, by an eighty-five percent majority of the total voting adopt policies under which in exceptional circumstances a seventy percent majority of the total voting power, may participants entering into transactions under Section 2(b) of to agree on exchange rates other than those applicable under

Fund shall consult a participant on the procedure for deter of exchange for its currency.

the purpose of this provision the term participant includes a participant.

A XX rticle Drawing Rights Department Interest and Charges

Interest the same rate for all holders shall be paid by the Fund to on the amount of its holdings of special drawing rights. The pay the amount due to each holder whether or not sufficient received to meet the payment of interest.

Charges the same rate for all participants shall be paid to the Fund participant on the amount of its net cumulative allocation of drawing rights plus any negative balance of the participant or charges.

Rate of interest and charges shall determine the rate of interest by a seventy percent the total voting power. The rate of charges shall be equal to interest.

Assessments decided under Article XVI, Section 2 that reimbursement made, the Fund shall levy assessments for this purpose at the all participants on their net cumulative allocations.

Section 5. Payment of interest, charges, and assessments

Interest, charges, and assessments shall be paid in special rights.Aparticipant that needs special drawing rights to pay or assessment shall be obligated and entitled to obtain them, rency acceptable to the Fund, in a transaction with the Fund through the General Resources Account. If sufficient special rights cannot be obtained in this way, the participant shall and entitled to obtain them with a freely usable currency from pant which the Fund shall specify. Special drawing rights participant after the date for payment shall be applied against charges and cancelled.

A XXI rticle Administration of the General Department and Special Drawing Rights Department

(a) The General Department and the Special Drawing Rights ment shall be administered in accordance with the provisions XII, subject to the following provisions:

(i) For meetings of or decisions by the Board on matters pertaining exclusively to the Special Rights Department only requests by, or the the votes of, Governors appointed by members participants shall be counted for the purpose meetings and determining whether a quorum whether a decision is made by the required

(ii) For decisions by the Executive Board on matters ing exclusively to the Special Drawing Rights only Executive Directors elected by at least that is a participant shall be entitled to vote. Executive Directors shall be entitled to cast of votes allotted to the members that are whose votes counted towards his election. Only ence of Executive Directors elected by members participants and the votes allotted to members participants shall be counted for the purpose ing whether a quorum exists or whether made by the required majority.

Questions of the general administration of the Fund, including reimbursement under Article XVI, Section 2, and any question whether a matter pertains to both Depart ments or exclusively to the Special Drawing Rights Department shall be decided as if they pertained exclu sively to the General Department. Decisions with respect to the method of valuation of the special drawing right, the acceptance and holding of special drawing rights in the General ResourcesAccount of the General Department and the use of them, and other decisions affecting the operations and transactions conducted through both the General Resources Account of the General Department and the Special Drawing Rights Department shall be made by the majorities required for decisions on matters pertain-ing exclusively to each Department.Adecision on a matter pertaining to the Special Drawing Rights Department shall so indicate.

addition to the privileges and immunities that are accorded IX of this Agreement, no tax of any kind shall be levied drawing rights or on operations or transactions in special rights.

question of interpretation of the provisions of this Agreement pertaining exclusively to the Special Drawing Rights Depart-be submitted to the Executive Board pursuant to Article only on the request of a participant. In any case where the Board has given a decision on a question of interpretation exclusively to the Special Drawing Rights Department only may require that the question be referred to the Board of underArticle XXIX(b). The Board of Governors shall decide Governor appointed by a member that is not a participant entitled to vote in the Committee on Interpretation on questions exclusively to the Special Drawing Rights Department. Whenever a disagreement arises between the Fund and a par has terminated its participation in the Special Drawing Department or between the Fund and any participant during the of the Special Drawing Rights Department with respect to arising exclusively from participation in the Special Drawing Department, the disagreement shall be submitted to arbitration accordance with the procedures in Article XXIX(c).

A XXII rticle General Obligations of Participants

In addition to the obligations assumed with respect to special rights under other articles of this Agreement, each participant takes to collaborate with the Fund and with other participants to facilitate the effective functioning of the Special Drawing Department and the proper use of special drawing rights in with thisAgreement and with the objective of making the ing right the principal reserve asset in the international system.

A XXIII rticle Suspension of Operations and Transactions Special Drawing Rights

Section 1. Emergency provisions

In the event of an emergency or the development of unforeseen cumstances threatening the activities of the Fund with respect Special Drawing Rights Department, the Executive Board, eighty-five percent majority of the total voting power, may a period of not more than one year the operation of any sions relating to operations and transactions in special drawing and the provisions ofArticle XXVII, Section l(b), (c), and apply.

Section 2. Failure to fulfill obligations

(a) If the Fund finds that a participant has failed to fulfill tions under Article XIX, Section 4, the right of the participant special drawing rights shall be suspended unless the Fund decides.

(b) If the Fund finds that a participant has failed to fulfill obligation with respect to special drawing rights, the Fund the participant to use special drawing rights it acquires after suspension. Regulations shall be adopted to ensure that before action is taken participant under (a) or (b) above, the participant shall be immediately of the complaint against it and given an adequate for stating its case, both orally and in writing. Whenever participant is thus informed of a complaint relating to (a) above, it special drawing rights pending the disposition of the

Suspension under (a) or (b) above or limitation under (c) above affect a participant’s obligation to provide currency in accor Article XIX, Section 4. Fund may at any time terminate a suspension under (a) or provided that a suspension imposed on a participant under failure to fulfill the obligations under Article XIX, Sec-shall not be terminated until one hundred eighty days after the first calendar quarter during which the participant complies rules for reconstitution. right of a participant to use its special drawing rights shall not because it has become ineligible to use the Fund’s general under Article V, Section 5, Article VI, Section 1, or Article Section 2(a). Article XXVI, Section 2 shall not apply because a has failed to fulfill any obligations with respect to special rights.

A XXIV rticle Termination of Participation

Right to terminate participation participant may terminate its participation in the Special Rights Department at any time by transmitting a notice in the Fund at its principal office. Termination shall become the date the notice is received.

participant that withdraws from membership in the Fund shall to have simultaneously terminated its participation in the Drawing Rights Department.

Section 2. Settlement on termination

(a) When a participant terminates its participation in Drawing Rights Department, all operations and transactions minating participant in special drawing rights shall cease except erwise permitted under an agreement made pursuant to order to facilitate a settlement or as provided in Sections this Article or in Schedule H. Interest and charges that accrued date of termination and assessments levied before that date shall be paid in special drawing rights.

(b) The Fund shall be obligated to redeem all special drawing held by the terminating participant, and the terminating participant be obligated to pay to the Fund an amount equal to its net allocation and any other amounts that may be due and payable of its participation in the Special Drawing Rights Department. obligations shall be set off against each other and the amount drawing rights held by the terminating participant that is setoff to extinguish its obligation to the Fund shall be cancelled.

(c) A settlement shall be made with reasonable despatch ment between the terminating participant and the Fund with any obligation of the terminating participant or the Fund after in (b) above. If agreement on a settlement is not reached provisions of Schedule H shall apply.

Section 3. Interest and charges

After the date of termination the Fund shall pay interest standing balance of special drawing rights held by a terminating pant and the terminating participant shall pay charges on any obligation owed to the Fund at the times and rates prescribed Article XX. Payment shall be made in special drawing rights. nating participant shall be entitled to obtain special drawing a freely usable currency to pay charges or assessments in with a participant specified by the Fund or by agreement from holder, or to dispose of special drawing rights received as transaction with any participant designated under Article 5 or by agreement with any other holder.

Settlement of obligation to the Fund received by the Fund from a terminating participant shall the Fund to redeem special drawing rights held by partici proportion to the amount by which each participant’s holdings drawing rights exceed its net cumulative allocation at the time is received by the Fund. Special drawing rights so redeemed drawing rights obtained by a terminating participant under provisions of this Agreement to meet any installment due under an on settlement or under Schedule H and set off against that shall be cancelled.

Settlement of obligation to a terminating participant the Fund is required to redeem special drawing rights held terminating participant, redemption shall be made with currency participants specified by the Fund. These participants shall in accordance with the principles in Article XIX, Section 5. specified participant shall provide at its option the currency of the participant or a freely usable currency to the Fund and shall equivalent amount of special drawing rights. However, a participant may use its special drawing rights to obtain its currency, a freely usable currency, or any other asset from any Fund so permits.

General Resources Account transactions to facilitate settlement with a terminating participant, the decide that a terminating participant shall: use any special drawing rights held by it after the setoff in Section 2(b) of this Article, when they are to be redeemed, in a transaction with the Fund conducted through the General Resources Account to obtain its own currency or a freely usable currency at the option of the Fund; or obtain special drawing rights in a transaction with the Fund conducted through the General Resources Account for a currency acceptable to the Fund to meet any charges or installment due under an agreement or the provisions of Schedule H.

A XXV rticle Liquidation of the Special Drawing Rights Department

(a) The Special Drawing Rights Department may not except by decision of the Board of Governors. In an emergency, Executive Board decides that liquidation of the Special Drawing Department may be necessary, it may temporarily suspend or cancellations and all operations and transactions in special rights pending decision by the Board of Governors. A decision Board of Governors to liquidate the Fund shall be a decision both the General Department and the Special Drawing Department.

(b) If the Board of Governors decides to liquidate the Special ing Rights Department, all allocations or cancellations and tions and transactions in special drawing rights and the activities Fund with respect to the Special Drawing Rights Department except those incidental to the orderly discharge of the obligations participants and of the Fund with respect to special drawing all obligations of the Fund and of participants under this with respect to special drawing rights shall cease except those thisArticle,Article XX,Article XXI(d),Article XXIV,Article and Schedule H, or any agreement reached under Article XXIV to paragraph 4 of Schedule H, and Schedule I.

(c) Upon liquidation of the Special Drawing Rights interest and charges that accrued to the date of liquidation ments levied before that date but not paid shall be paid in ing rights. The Fund shall be obligated to redeem all special rights held by holders, and each participant shall be obligated Fund an amount equal to its net cumulative allocation of ing rights and such other amounts as may be due and payable of its participation in the Special Drawing Rights Department.

(d) Liquidation of the Special Drawing Rights Department administered in accordance with the provisions of Schedule

A XXVI rticle Withdrawal from Membership

Right of members to withdraw member may withdraw from the Fund at any time by transmit-in writing to the Fund at its principal office. Withdrawal effective on the date such notice is received.

Compulsory withdrawal member fails to fulfill any of its obligations under thisAgree-Fund may declare the member ineligible to use the general the Fund. Nothing in this Section shall be deemed to limit provisions of Article V, Section 5 or Article VI, Section 1. after the expiration of a reasonable period following a decla ineligibility under (a) above, the member persists in its failure of its obligations under this Agreement, the Fund may, by percent majority of the total voting power, suspend the voting member. During the period of the suspension, the provi-Schedule L shall apply. The Fund may, by a seventy percent the total voting power, terminate the suspension at any time.

after the expiration of a reasonable period following a decision suspension under (b) above, the member persists in its failure to ful-obligations under this Agreement, that member may be withdraw from membership in the Fund by a decision of the Governors carried by a majority of the Governors having percent of the total voting power. Regulations shall be adopted to ensure that before action is taken member under (a), (b), or (c) above, the member shall be reasonable time of the complaint against it and given an opportunity for stating its case, both orally and in writing.

Settlement of accounts with members withdrawing member withdraws from the Fund, normal operations and of the Fund in its currency shall cease and settlement of between it and the Fund shall be made with reasonable agreement between it and the Fund. If agreement is not reached promptly, the provisions of Schedule J shall apply ment of accounts.

A XXVII rticle Emergency Provisions

Section 1. Temporary suspension

(a) In the event of an emergency or the development of circumstances threatening the activities of the Fund, the Board, by an eighty-five percent majority of the total voting suspend for a period of not more than one year the operation the following provisions:

(i) Article V, Sections 2, 3, 7, 8(a)(i) and (e);

(ii) Article VI, Section 2;

(iii) Article XI, Section 1;

(iv) Schedule C, paragraph 5.

(b) Asuspension of the operation of a provision under (a) not be extended beyond one year except by the Board of which, by an eighty-five percent majority of the total voting extend a suspension for an additional period of not more than if it finds that the emergency or unforeseen circumstances

(a) above continue to exist.

(d) The Fund may adopt rules with respect to the subject provision during the period in which its operation is suspended.

Section 2. Liquidation of the Fund

(a) The Fund may not be liquidated except by decision of Governors. In an emergency, if the Executive Board liquidation of the Fund may be necessary, it may temporarily all operations and transactions, pending decision by the Governors.

Board of Governors decides to liquidate the Fund, the Fund forthwith cease to engage in any activities except those incidental collection and liquidation of its assets and the settlement liabilities, and all obligations of members under this Agreement except those set out in this Article, in Article XXIX(c), in paragraph 7, and in Schedule K. Liquidation shall be administered in accordance with the provi-Schedule K.

A XXVIII rticle Amendments proposal to introduce modifications in this Agreement, emanating from a member, a Governor, or the Executive Board, communicated to the chairman of the Board of Governors who the proposal before the Board of Governors. If the proposed is approved by the Board of Governors, the Fund shall, by letter or telegram, ask all members whether they accept the amendment. When three-fifths of the members, having eighty-of the total voting power, have accepted the proposed the Fund shall certify the fact by a formal communication all members. Notwithstanding (a) above, acceptance by all members is required any amendment modifying: the right to withdraw from the Fund (Article XXVI, Sec-tion 1);

the provision that no change in a member’s quota shall be made without its consent (Article III, Section 2(d)); and the provision that no change may be made in the par value of a member’s currency except on the proposal of that member (Schedule C, paragraph 6).

Amendments shall enter into force for all members three months of the formal communication unless a shorter period is the circular letter or telegram.

A XXIX rticle Interpretation

(a) Any question of interpretation of the provisions of ment arising between any member and the Fund or between bers of the Fund shall be submitted to the Executive Board decision. If the question particularly affects any member, entitled to representation in accordance with Article XII,

(b) In any case where the Executive Board has given a decision

(a) above, any member may require, within three months of the decision, that the question be referred to the Board of whose decision shall be final. Any question referred to Governors shall be considered by a Committee on Interpretation Board of Governors. Each Committee member shall have Board of Governors shall establish the membership, procedures, voting majorities of the Committee. A decision of the Committee be the decision of the Board of Governors unless the Board nors, by an eighty-five percent majority of the total voting decides otherwise. Pending the result of the reference to Governors the Fund may, so far as it deems necessary, act of the decision of the Executive Board.

(c) Whenever a disagreement arises between the Fund and which has withdrawn, or between the Fund and any member liquidation of the Fund, such disagreement shall be submitted tion by a tribunal of three arbitrators, one appointed by the Fund, by the member or withdrawing member, and an umpire who, parties otherwise agree, shall be appointed by the President national Court of Justice or such other authority as may have scribed by regulation adopted by the Fund. The umpire shall power to settle all questions of procedure in any case where are in disagreement with respect thereto.

A XXX rticle Explanation of Terms

In interpreting the provisions of this Agreement the members shall be guided by the following provisions:

Fund’s holdings of a member’s currency in the General Account shall include any securities accepted by the Fund III, Section 4. Stand-by arrangement means a decision of the Fund by which a assured that it will be able to make purchases from the Gen-Resources Account in accordance with the terms of the decision specified period and up to a specified amount.

Reserve tranche purchase means a purchase by a member of spe-rights or the currency of another member in exchange for currency which does not cause the Fund’s holdings of the mem-currency in the General Resources Account to exceed its quota, for the purposes of this definition the Fund may exclude and holdings under: policies on the use of its general resources for compensa-tory financing of export fluctuations; policies on the use of its general resources in connection with the financing of contributions to international buffer stocks of primary products; and other policies on the use of its general resources in respect of which the Fund decides, by an eighty-five percent majority of the total voting power, that an exclusion shall be made.

Payments for current transactions means payments which are not purpose of transferring capital, and includes, without limitation:

all payments due in connection with foreign trade, other current business, including services, and normal short-term banking and credit facilities;

payments due as interest on loans and as net income from other investments; payments of moderate amount for amortization of loans or for depreciation of direct investments; and moderate remittances for family living expenses.

may, after consultation with the members concerned, deter-whether certain specific transactions are to be considered current or capital transactions.

(e) Net cumulative allocation of special drawing rights total amount of special drawing rights allocated to a participant share of special drawing rights that have been cancelled XVIII, Section 2(a). ( f ) A freely usable currency means a member’s currency Fund determines (i) is, in fact, widely used to make payments national transactions, and (ii) is widely traded in the principal markets.

(g) Members that were members onAugust 31, 1975, shall to include a member that accepted membership after that to a resolution of the Board of Governors adopted before

(h) Transactions of the Fund means exchanges of monetary the Fund for other monetary assets. Operations of the Fund uses or receipts of monetary assets by the Fund.

(i) Transactions in special drawing rights means exchanges drawing rights for other monetary assets. Operations in special rights means other uses of special drawing rights.

A XXXI rticle Final Provisions

Section 1. Entry into force This Agreement shall enter into force when it has been behalf of governments having sixty-five percent of the total tas set forth in Schedule A and when the instruments referred tion 2(a) of this Article have been deposited on their behalf, event shall this Agreement enter into force before May 1,

Section 2. Signature

(a) Each government on whose behalf thisAgreement is deposit with the Government of the United States of America ment setting forth that it has accepted this Agreement in with its law and has taken all steps necessary to enable it to of its obligations under this Agreement.

country shall become a member of the Fund as from the date deposit on its behalf of the instrument referred to in (a) above, no country shall become a member before this Agreement force under Section 1 of this Article. Government of the United States ofAmerica shall inform the of all countries whose names are set forth in Schedule A, governments of all countries whose membership is approved in withArticle II, Section 2, of all signatures of thisAgreement deposit of all instruments referred to in (a) above.

time this Agreement is signed on its behalf, each govern-transmit to the Government of the United States of America one-hundredth of one percent of its total subscription in gold or dollars for the purpose of meeting administrative expenses The Government of the United States of America shall hold in a special deposit account and shall transmit them to the Governors of the Fund when the initial meeting has been this Agreement has not come into force by December 31, Government of the United States ofAmerica shall return such governments that transmitted them. Agreement shall remain open for signature at Washington on governments of the countries whose names are set forth in until December 31, 1945. December 31, 1945, this Agreement shall be open for sig behalf of the government of any country whose membership approved in accordance with Article II, Section 2.

their signature of this Agreement, all governments accept it own behalf and in respect of all their colonies, overseas territories under their protection, suzerainty, or authority, territories in respect of which they exercise a mandate. Subsection (d) above shall come into force with regard to each government as from the date of its signature. signature and depositary clause reproduced below followed the Article XX in the original Articles of Agreement]

Done at Washington, in a single copy which shall remain in the archives of the Government of the United States which shall transmit certified copies to all governments whose are set forth in Schedule A and to all governments whose is approved in accordance with Article II, Section 2.

S A chedule Quotas

(In millions of United States dollars)

Australia��200 India��400 Belgium��225 Iran��25 Bolivia��10 Iraq��8 Brazil��150 Liberia�� .5 Canada��300 Luxembourg ��10 Chile��50 Mexico��90 China��550 Netherlands��275 Colombia��50 New Zealand��50 Rica��5 Nicaragua��2 ��50 Norway��50 Czechoslovakia��125 Panama �� .5 Denmark*��* Paraguay��2 Republic��5 Peru��25 Ecuador��5 Philippine Commonwealth��15 Egypt��45 Poland��125 Salvador�� 2.5 Union of South Africa��100 ��6 Union of Soviet Socialist France�� 450 Republics��1200 Greece��40 United Kingdom��1300 Guatemala��5 United States��2750 ��5 Uruguay��15 Honduras�� 2.5 Venezuela��15 Iceland��1 Yugoslavia��60

of Denmark shall be determined by the Fund after the Danish Government readiness to sign thisAgreement but before signature takes place.

S B chedule Transitional Provisions with Respect to Repurchase, Additional Subscriptions, Gold, and Certain Operational

Änderungsgeschichte

Amended by VII.2023.4

Verweist auf

Cap. 209 Art. 5