Chapter

Appendix VI. Scale of Fund Charges

Author(s):
International Monetary Fund
Published Date:
September 1962
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The following charges are made by the Fund: a service charge of ½ of 1 per cent of the amount of the purchase of a currency from the Fund, a charge of ¼ of 1 per cent per annum for standby arrangements (credited against the service charge if the member makes a purchase during the period of the stand-by), and a charge payable by the member on the Fund’s holdings of its currency that exceed its quota. The rate of charge on balances in excess of quota rises in two dimensions: the larger the member’s drawings relative to its quota, and the longer the period during which the Fund holds the member’s currency.

Charges on transactions effected in 1954 or later are as follows:

Charge for Period Stated and for Portion of Holdings in Excess of QuotaAverage Effective Rates 1 for Portion of Holdings in Excess of Quota
Portion of HoldingsPer CentPortion of HoldingsPer Cent
Exceeding QuotaExceeding Quota
By more than05075By more than05075
But by not more than5075100But by not more than5075100
Service Charge0.50.50.5
Charge forPer CentAverage forPer Cent
Period ofPer AnnumPeriod ofPer Annum
0 to 3 months0.00.00.03 months2.002.002.00
3 to 6 months2.02.02.06 months7.002.002.00
½ to 1 year2.02.02.51 year7.002.002.25
1 to 1½ years2.02.53.01½ years2.002.172.50
1½ to 2 years2.53.03.52 years7.122.382.75
2 to 2½ years3.03.54.0*2½ years7.302.603.00
2½ to 3 years3.54.0*4.53 years2.502.833.25
3 to 3½ years4.0*4.55.03½ years2.713.073.50
3½ to 4 years4.55.04 years7.943.31
4 to 4½ years5.04½ years3.17

When a charge reaches 4 per cent per annum, the Fund and the member must consult on means to reduce the Fund’s holding of the member’s currency. The charge continues to increase by an additional ½ per cent per annum each six months, subject to the following provisions: If agreement is reached for full repurchase within five years from the date of the drawing, the maximum rate is 5 per cent per annum; but a higher maximum may be fixed by the Fund if the agreement is for a repurchase running beyond five years. Failing agreement, the Fund may impose such charges as it deems appropriate after the rate of 5 per cent per annum is reached.

Charges are normally paid in gold; but when a member’s monetary reserves are below half its quota, charges may be paid partly or wholly in the member’s currency.

Point at which the Fund and the member consult.

Total charges payable by the member over the stated period, expressed as a per cent and divided by the number of years of the period. Includes service charge.

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