Selected Decisions and Selected Documents of the International Monetary Fund
Chapter

Burden Sharing

Author(s):
International Monetary Fund
Published Date:
April 2004
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Disposition of Net Income for FY 2000

1. SDR 100,000,000 of the Fund’s net income for FY 2000 derived from the application of paragraph 2 of Decision No. 11944.(99/49), adopted April 30, 1999, shall be placed to the Fund’s Special Reserve after the end of the financial year.

2. The SDR 268,000,000 gain derived from the implementation of International Accounting Standard 19—Employee Benefits during FY 2000 shall be placed to the Fund’s Special Reserve and shall be recorded separately in the financial records of the Fund.

Decision No. 12231-(00/68)

July 6, 2000

The Rate of Charge on the Use of Fund Resources for FY 2000

1. Notwithstanding Rule I-6(4)(a), effective May 1, 1999, the proportion of the rate of charge referred to in Rule I-6(4) to the SDR interest rate under Rule T-1 shall be 113.7 percent.

2. Any net income for financial year 2000 in excess of an amount equivalent to 5 percent of the Fund’s reserves at the beginning of that financial year shall be used to reduce retroactively the proportion of the rate of charge to the SDR interest rate for financial year 2000. If net income for financial year 2000 is below an amount equivalent to 5 percent of the Fund’s reserves at the beginning of that financial year, the amount of projected net income for financial year 2001 shall be increased by the equivalent of that shortfall. For the purpose of this provision, net income shall be calculated without taking into account net operational income generated by the Supplemental Reserve Facility and Contingent Credit Lines or the effect on income of the implementation of International Accounting Standard 19—Employee Benefits.

Decision No. 11944-(99/49)

April 30, 1999

The Rate of Charge on the Use of Fund Resources for FY 2001

1. Notwithstanding Rule I-6(4)(a), effective May 2, 2000, the proportion of the rate of charge referred to in Rule I-6(4) to the SDR interest rate under Rule T-1 shall be 115.9 percent.

2. The net income target for financial year 2001 shall be SDR 48 million. Any net income for financial year 2001 in excess of SDR 48 million shall be used to reduce retroactively the proportion of the rate of charge for financial year 2001. If net income for financial year 2001 is below SDR 48 million, the amount of projected net income for financial year 2002 shall be increased by the equivalent of that shortfall. For the purpose of this provision, net income shall be calculated without taking into account net operational income generated by the Supplemental Reserve Facility and Contingent Credit Lines or the net cumulative effect on income of the implementation of International Accounting Standard 19—Employee Benefits.

Decision No. 12188-(00/45), April 28, 2000

effective May 2, 2000

Changes to Commitment Charge—Stand-By and Extended Arrangements

Rules I-8(a) and I-8(b) of the Rules and Regulations shall be amended to read as follows:

(a) A charge shall be payable at the beginning of each twelvemonth period (“the relevant period”) of an arrangement as follows:

  • (i) ¼ of 1 percent per annum on amounts of up to 100 percent of the member’s quota that could be purchased during the relevant period; and

  • (ii) 1/10 of 1 percent per annum on amounts in excess of 100 percent of the member’s quota that could be purchased during the relevant period.

(b) When a purchase is made under an arrangement, the amount of the charge paid shall be reduced, and a refund equal to the reduction shall be made, as follows:

  • (i) to the extent that purchases during the relevant period do not exceed 100 percent of the member’s quota, the portion of the charge calculated in accordance with subparagraph (a)(i) above shall be reduced by the proportion that the amount of the purchase bears to the amount of the arrangement not exceeding 100 percent of the member’s quota that could be purchased during the relevant period; and

  • (ii) to the extent that purchases during the relevant period exceeds 100 percent of the member’s quota, the portion of the charge calculated in accordance with subparagraph (a)(ii) above shall be reduced by the proportion that the amount of the purchase bears to the amount of the arrangement exceeding 100 percent of the member’s quota that could be purchased during the relevant period.

Decision No. 12347-(00/117)

November 28, 2000

Off-Market Gold Transactions for FY 2000: Mitigation of the Cost to the Fund

For the purpose of paragraph 2 of Decision No. 11944-(99/49), adopted April 30, 1999, net income shall be calculated without taking into account the effect on income of accepting gold in payment of repurchase obligations falling due to the Fund authorized by Decision No. 12063-(99/130).

Decision No. 12064-(99/130)

December 8, 1999

Burden Sharing—Implementation in FY 2000

Section I. Principles of “Burden Sharing

1. The financial consequences for the Fund that stem from the existence of overdue financial obligations shall be shared between debtor and creditor member countries.

2. The sharing shall be applied in a simultaneous and symmetrical fashion.

Section II. Determination of the Rate of Charge

The rate of charge for financial year 2000 referred to in Rule I-6(4) shall be adjusted in accordance with the provisions of Section IV.

Section III. Amount for Special Contingent Account I

An amount equivalent to 5 percent of the Fund’s reserves at the beginning of the financial year shall be generated during financial year 2000 in accordance with the provisions of Section IV, and shall be placed to the Special Contingent Account-1 referred to in Decision No. 9471-(90/98), adopted June 20, 1990.

Section IV. Implementation of Burden Sharing

1. During financial year 2000, notwithstanding Rule I-6(4)(a) and (b) and Rule I-10, the rate of charge referred to in Rule I-6(4) and the rate of remuneration prescribed in Rule I-10 shall be adjusted in accordance with the provisions of this Section.

2. (a) In order to generate the amount to be placed to the Special Contingent Account-1 in accordance with Section III, the rate of charge, and, subject to the limitation in (c), the rate of remuneration, shall be adjusted in accordance with the provisions of this paragraph, so as to produce equal amounts of income.

(b) If income from charges becomes deferred during an adjustment period as defined in (d), the rate of charge and, subject to the limitation in (c), the rate of remuneration, shall be further adjusted, in accordance with the provisions of this paragraph, so as to generate, in equal amounts, an additional amount of income equal to the amount of deferred charges. For the purposes of this provision, special charges on overdue financial obligations under Decision No. 8165-(85/189) G/TR, adopted December 30, 1985, as amended, shall not be taken into account.

(c) No adjustment in the rate of remuneration under this paragraph shall be carried to the point where the average remuneration coefficient would be reduced below 85 percent for an adjustment period.

(d) The adjustments under this paragraph shall be made as of May 1, 1999, August 1, 1999, November 1, 1999, and February 1, 2000:

  • shortly after July 31 for the period May 1 to July 31;

  • shortly after October 31 for the period from August 1 to October 31;

  • shortly after January 31 for the period from November 1 to January 31;

  • shortly after April 30 for the period from February 1 to April 30;

(e) The operation of this decision shall be reviewed when the adjustment in the rate of remuneration reduces the remuneration coefficient to the limit in (c) above.

3. (a) Subject to paragraph 3 of Decision No. 8780-(88/12), adopted January 29, 1988, the balances held in the Special Contingent Account-1 shall be distributed in accordance with the provisions of this paragraph to members that have paid additional charges or have received reduced remuneration as a result of the adjustment when there are no outstanding overdue charges and repurchases, or at such earlier time as the Fund may decide.

(b) An amount equal to the proceeds of any adjustment for deferred charges shall be distributed, in accordance with the provisions of this paragraph, to members that have paid additional charges or have received reduced remuneration when, and to the extent that, charges, the deferral of which had given rise to the same adjustment, are paid to the Fund. Distributions under this provision shall be made quarterly.

(c) Distributions under (a) or (b) shall be made in proportion to the amounts that have been paid or have not been received by each member as a result of the respective adjustments.

(d) If a member that is entitled to a payment under this paragraph has any overdue obligation to the Fund in the General Department at the time of payment, the member’s claim under this paragraph shall be set off against the Fund’s claim in accordance with Decision No. 8271-(86/74), adopted April 30, 1986, or any subsequent decision of the Fund.

(e) Subject to paragraph 4 of Decision No. 8780-(88/12), adopted January 29, 1988, if any loss is charged against the Special Contingent Account-1, it shall be recorded in accordance with the principles of proportionality set forth in (c).

Decision No. 11945-(99/49)

April 30, 1999

Implementation of Burden Sharing in FY 2001

Section I. Principles of Burden Sharing

1. The financial consequences for the Fund, which stem from the existence of overdue financial obligations shall be shared between debtor and creditor member countries.

2. The sharing shall be applied in a simultaneous and symmetrical fashion.

Section II. Determination of the Rate of Charge

The rate of charge referred to in Rule I-6(4) shall be adjusted in accordance with the provisions of Sections III and IV.

Section III. Amount for Special Contingent Account-1

1. An amount of SDR 94 million shall be generated during financial year 2001 in accordance with the provisions of this Section, and shall be placed to the Special Contingent Account-1 referred to in Decision No. 9471-(90/98), adopted June 20, 1990.

2. (a) In order to generate the amount to be placed to the Special Contingent Account-1 in accordance with paragraph 1 of this Section, notwithstanding Rule I-6(4)(a) and (b) and Rule I-10, the rate of charge referred to in Rule I-6(4) and, subject to the limitation in (b), the rate of remuneration prescribed in Rule I-10, shall be adjusted in accordance with the provisions of this paragraph so as to produce equal amounts of income.

(b) No adjustment in the rate of remuneration under this paragraph shall be carried to the point where the average remuneration coefficient would be reduced below 85 percent for an adjustment period.

(c) The adjustments under this paragraph shall be made as of May 1, 2000, August 1, 2000, November 1, 2000, and February 1, 2001:

  • shortly after July 31 for the period May 1 to July 31;

  • shortly after October 31 for the period from August 1 to October 31;

  • shortly after January 31 for the period from November 1 to January 31;

  • shortly after April 30 for the period from February 1 to April 30.

3. (a) Subject to paragraph 3 of Decision No. 8780-(88/12), adopted January 29, 1988, the balances held in the Special Contingent Account-1 shall be distributed in accordance with the provisions of this paragraph to members that have paid additional charges or have received reduced remuneration as a result of the adjustment when there are no outstanding overdue charges and repurchases, or at such earlier time as the Fund may decide.

(b) Distributions under (a) shall be made in proportion to the amounts that have been paid or have not been received by each member as a result of the respective adjustments.

(c) If a member that is entitled to a payment under this paragraph has any overdue obligation to the Fund in the General Department at the time of payment, the member’s claim under this paragraph shall be set off against the Fund’s claim in accordance with Decision No. 8780-(88/12), adopted April 30, 1986, or any subsequent Decision of the Fund.

(d) Subject to paragraph 4 of Decision No. 8780-(88/12), adopted January 29, 1988, if any loss is charged against the Special Contingent Account-1, it shall be recorded in accordance with the principles of proportionality set forth in (b).

Section IV. Adjustment for Deferred Charges

1. (a) If income from charges becomes deferred during an adjustment period as defined in (c), notwithstanding Rule I-6(4)(a) and (b) and Rule I-10, the rate of charge referred to in Rule I-6(4), and, subject to the limitation in (b), the rate of remuneration prescribed in Rule I-10, shall be adjusted in accordance with the provisions of this paragraph, so as to generate, in equal amounts, an additional amount of income equal to the amount of deferred charges. For the purposes of this provision, special charges on overdue financial obligations under Decision No. 8165-(85/189)G/TR, adopted December 30, 1985, shall not be taken into account.

(b) No adjustment in the rate of remuneration under this paragraph shall be carried to the point where the average remuneration coefficient would be reduced below 85 percent for an adjustment period.

(c) The adjustments under this paragraph shall be made as of the first day after each financial quarter beginning May 1, August 1, November 1 and February 1:

  • shortly after July 31 for the period May 1 to July 31;

  • shortly after October 31 for the period August 1 to October 31;

  • shortly after January 31 for the period from November 1 to January 31;

  • shortly after April 30 for the period from February 1 to April 30.

2. (a) An amount equal to the proceeds of any adjustment for deferred charges shall be distributed, in accordance with the provisions of this paragraph, to members that have paid additional charges or have received reduced remuneration, when, and to the extent that, charges, the deferral of which had given rise to the same adjustment, are paid to the Fund. Distribution under this provision shall be made quarterly.

(b) Distribution under (a) shall be made in proportion to the amounts that have been paid or have not been received by each member as a result of the respective adjustments.

(c) If a member that is entitled to a payment under this paragraph has any overdue obligation to the Fund in the General Department at the time of payment, the member’s claim under this paragraph shall be set off against the Fund’s claim in accordance with Decision No. 8271-(86/74), adopted April 30, 1986, or any subsequent decision of the Fund.

Section V. Review

The operation of this decision shall be reviewed when the adjustment in the rate of remuneration reduces the remuneration coefficient to the limit set forth in paragraphs 2(b) of Section III and 1(b) of Section IV.

Decision No. 12189-(00/45), April 28, 2000

effective May 2, 2000

Income Position for FY 2000—Actual Outcome

1. SDR 100,873,481 of the Fund’s net income for FY 2000 derived from the application of paragraph 2 of Executive Board Decision No. 11944-(99/49), adopted April 30, 1999, shall be placed to the Fund’s Special Reserve after the end of the financial year.

2. The SDR 268,262,272 gain derived from the implementation of International Accounting Standard 19—Employee Benefits during FY 2000 shall be placed to the Fund’s Special Reserve and shall be recorded separately in the financial records of the Fund. (EBS/00/119, 6/26/00)

Decision No. 12232-(00/68)

July 6, 2000

Income Position for FY 2001—Review

The Fund has reviewed the income position for FY 2001 in accordance with Rule I-6(4)(b) (EBS/00/232, 11/17/00).

Decision No. 12350-(00/119)

December 1, 2000

Disposition of Net Income for FY 2001

1. SDR 48 million of the Fund’s net income for FY2001 derived from the application of paragraph 2 of Decision No. 12188-(00/45), adopted April 28, 2000 shall be placed to the Fund’s Special Reserve after the end of the financial year.

2. The gain derived from the application of International Accounting Standard 19—Employee Benefits during FY2001 shall be placed to the Fund’s Special Reserve and shall be recorded separately in the financial records of the Fund.

Decision No. 12463-(01/39)

April 16, 2001

The Rate of Charge on Use of Fund Resources for FY 2002

1. Notwithstanding Rule I-6(4)(a), effective May 1, 2001, the proportion of the rate of charge referred to in Rule I-6(4) to the SDR interest rate under Rule T-1 shall be 117.6 percent.

2. The net income target for FY 2002 shall be SDR 51 million. Any net income for financial year 2002 in excess of SDR 51 million shall be used to reduce retroactively the proportion of the rate of charge for financial year 2002. If net income for financial year 2002 is below SDR 51 million, the amount of projected net income for financial year 2003 shall be increased by the equivalent of that shortfall. For the purpose of this provision, net income shall be calculated without taking into account net operational income generated by the surcharges on purchases under the Supplemental Reserve Facility and Contingent Credit Lines, the surcharge on purchases in the credit tranches and under the Extended Fund Facility or the effect on income of the implementation of International Accounting Standard 19—Employee Benefits.

Decision No. 12464-(01/39)

April 16, 2001

Burden Sharing—Implementation in FY 2002

Section I. Principles of Burden Sharing

1. The financial consequences for the Fund, which stem from the existence of overdue financial obligations shall be shared between debtor and creditor member countries.

2. The sharing shall be applied in a simultaneous and symmetrical fashion.

Section II. Determination of the Rate of Charge

The rate of charge referred to in Rule I-6(4) shall be adjusted in accordance with the provisions of Section III of this decision and Section IV of Executive Board Decision No. 12189-(00/45), adopted April 28, 2000.

Section III. Amount for Special Contingent Account-1

1. An amount of SDR 94 million shall be generated during financial year 2002 in accordance with the provisions of this Section, and shall be placed to the Special Contingent Account-1 referred to in Decision No. 9471-(90/98), adopted June 20, 1990.

2. (a) In order to generate the amount to be placed to the Special Contingent Account-1 in accordance with paragraph 1 of this Section, notwithstanding Rule I-6(4)(a) and (b) and Rule I-10, the rate of charge referred to in Rule I-6(4) and, subject to the limitation in (b), the rate of remuneration prescribed in Rule I-10, shall be adjusted in accordance with the provisions of this paragraph so as to produce equal amounts of income.

(b) No adjustment in the rate of remuneration under this paragraph shall be carried to the point where the average remuneration coefficient would be reduced below 85 percent for an adjustment period.

(c) The adjustments under this paragraph shall be made as of May 1, 2001, August 1, 2001, November 1, 2001 and February 1, 2002;

  • shortly after July 31 for the period May 1 to July 31;

  • shortly after October 31 for the period from August 1 to October 31;

  • shortly after January 31 for the period from November 1 to January 31;

  • shortly after April 30 for the period from February 1 to April 30.

3. (a) Subject to paragraph 3 of Decision No. 8780-(88/12), adopted January 29, 1988, the balances held in the Special Contingent Account-1 shall be distributed in accordance with the provisions of this paragraph to members that have paid additional charges or have received reduced remuneration as a result of the adjustment when there are no outstanding overdue charges and repurchases, or at such earlier time as the Fund may decide.

(b) Distributions under (a) shall be made in proportion to the amounts that have been paid or have not been received by each member as a result of the respective adjustments.

(c) If a member that is entitled to a payment under this paragraph has any overdue obligation to the Fund in the General Department at the time of payment, the member’s claim under this paragraph shall be set off against the Fund’s claim in accordance with Decision No. 8271-(86/74), adopted April 30, 1986, or any subsequent decision of the Fund.

(d) Subject to paragraph 4 of Decision No. 8780-(88/12), adopted January 29, 1988, if any loss is charged against the Special Contingent Account-1, it shall be recorded in accordance with the principles of proportionality set forth in (b).

Section IV. Review

The operation of this decision shall be reviewed when the adjustment in the rate of remuneration reduces the remuneration coefficient to the limit set forth in paragraph 2(b) of Section III of this decision and Section IV of Executive Board Decision No. 12189-(00/45), adopted April 28, 2000.

Decision No. 12465-(01/39)

April 16, 2001

Surcharges on Purchases Under Supplemental Reserve Facility and Contingent Credit Lines, and in Credit Tranches and Under Extended Fund Facility—Disposition of Net Operating Income for FY 2002

For financial year 2002, after meeting the cost of administering the PRGF Trust, any remaining net operational income generated by the surcharges on purchases under the Supplemental Reserve Facility and the Contingent Credit Lines and the surcharges on purchases in the credit tranches and under the Extended Fund Facility shall be transferred, after the end of that financial year, to the General Reserve.

Decision No. 12467-(01/39) SRF/CCL

April 16, 2001

Income Position for FY 2002—Review

The Fund has reviewed the income position for FY 2002 in accordance with Rule I-6(4)(b). (EBS/01/199, 11/27/01)

Decision No. 12645-(01/127)

December 10, 2001

Disposition of Net Income for FY 2002

1. SDR 51 million of the Fund’s net income for FY 2002 derived from the application of paragraph 2 of Decision No. 12464-(01/39), adopted April 16, 2001, shall be placed to the Fund’s Special Reserve after the end of the financial year.

2. The expense derived from the application of International Accounting Standard 19—Employee Benefits during FY 2002 shall be charged against the Fund’s Special Reserve and shall be recorded separately in the financial records of the Fund. (EBS/02/60, 4/3/02)

Decision No. 12729-(02/43)

April 26, 2002

Rate of Charge on Use of Fund Resources for FY 2003

1. Notwithstanding Rule I-6(4)(a), effective May 1, 2002, the proportion of the rate of charge referred to in Rule I-6(4) to the SDR interest rate under Rule T-1 shall be 128.0 percent.

2. The net income target for FY 2003 shall be SDR 69 million. Any net income for financial year 2003 in excess of SDR 69 million shall be used to reduce retroactively the proportion of the rate of charge for financial year 2003. If net income for financial year 2003 is below SDR 69 million, the amount of projected net income for financial year 2004 shall be increased by the equivalent of that shortfall. For the purpose of this provision, net income shall be calculated without taking into account net operational income generated by the surcharges on purchases under the Supplemental Reserve Facility and Contingent Credit Lines, the surcharge on purchases in the credit tranches and under the Extended Fund Facility or the effect on income of the implementation of International Accounting Standard 19—Employee Benefits. (EBS/02/60, 4/3/02)

Decision No. 12730-(02/43)

April 26, 2002

Surcharges on Purchases Under Supplemental Reserve Facility and Contingent Credit Lines, and in Credit Tranches and Under Extended Fund Facility—Disposition of Net Operating Income, FY 2003

For financial year 2003, after meeting the cost of administering the PRGF Trust, any remaining net operational income generated by the surcharges on purchases under the Supplemental Reserve Facility and the Contingent Credit Lines and the surcharges on purchases in the credit tranches and under the Extended Fund Facility shall be transferred, after the end of that financial year, to the General Reserve. (EBS/02/60, 4/3/02)

Decision No. 12733-(02/43) SRF/CCL

April 26, 2002

Burden Sharing—Implementation in FY 2003

Section I. Principles of Burden Sharing

1. The financial consequences for the Fund that stem from the existence of overdue financial obligations shall be shared between debtor and creditor member countries.

2. The sharing shall be applied in a simultaneous and symmetrical fashion.

Section II. Determination of the Rate of Charge

The rate of charge referred to in Rule I-6(4) shall be adjusted in accordance with the provisions of Section IV of this decision and Section IV of Executive Board Decision No. 12189-(00/45), adopted April 28, 2000.

Section III. Adjustment for Deferred Charges

Notwithstanding paragraph 1(a) of Section IV of Executive Board Decision No. 12189-(00/45), adopted April 28, 2000, the rate of charge and the rate of remuneration determined under that Section shall be rounded to two decimal places.

Section IV. Amount for Special Contingent Account-1

1. An amount of SDR 94 million shall be generated during financial year 2003 in accordance with the provisions of this Section and shall be placed to the Special Contingent Account-1 referred to in Decision No. 9471-(90/98), adopted June 20, 1990.

2. (a) In order to generate the amount to be placed to the Special Contingent Account-1 in accordance with paragraph 1 of this Section, notwithstanding Rule I-6(4)(a) and (b) and Rule I-10, the rate of charge referred to in Rule I-6(4) and, subject to the limitation in (b), the rate of remuneration prescribed in Rule I-10 shall be adjusted in accordance with the provisions of this paragraph.

(b) Notwithstanding paragraph 1 above, adjustments to the rate of charge and the rate of remuneration under this paragraph shall be rounded to two decimal places. No adjustment in the rate of remuneration under this paragraph shall be carried to the point where the average remuneration coefficient would be reduced below 85 percent for an adjustment period.

(c) The adjustments under this paragraph shall be made as of May 1, 2002, August 1, 2002, November 1, 2002 and February 1, 2003; shortly after July 31 for the period May 1 to July 31; shortly after October 31 for the period from August 1 to October 31; shortly after January 31 for the period from November 1 to January 31; shortly after April 30 for the period from February 1 to April 30.

3. (a) Subject to paragraph 3 of Decision No. 8780-(88/12), adopted January 29, 1988, the balances held in the Special Contingent Account-1 shall be distributed in accordance with the provisions of this paragraph to members that have paid additional charges or have received reduced remuneration as a result of the adjustment when there are no outstanding overdue charges and repurchases, or at such earlier time as the Fund may decide.

(b) Distributions under (a) shall be made in proportion to the amounts that have been paid or have not been received by each member as a result of the respective adjustments.

(c) If a member that is entitled to a payment under this paragraph has any overdue obligation to the Fund in the General Department at the time of payment, the member’s claim under this paragraph shall be set off against the Fund’s claim in accordance with Decision No. 8271-(86/74), adopted April 30, 1986, or any subsequent decision of the Fund.

(d) Subject to paragraph 4 of Decision No. 8780-(88/12), adopted January 29, 1988, if any loss is charged against the Special Contingent Account-1, it shall be recorded in accordance with the principles of proportionality set forth in (b).

Section V. Review

The operation of this decision shall be reviewed when the adjustment in the rate of remuneration reduces the remuneration coefficient to the limit set forth in paragraph 2(b) of Section III of this decision and Section IV of Executive Board Decision No. 12189-(00/45), adopted April 28, 2000. (EBS/02/60, 4/30/02)

Decision No. 12731-(02/43)

April 26, 2002

Income Position for FY 2003—Review

The Fund has reviewed the income position for FY 2003 in accordance with Rule I-6(4)(b). (EBS/02/202, 12/2/02)

Decision No. 12905-(02/121),

December 9, 2002

Disposition of Net Income for FY 2003

1. SDR 69 million of the Fund’s net income for FY 2003 derived from the application of paragraph 2 of Decision No. 12730-(02/43), adopted April 26, 2002, shall be placed to the Fund’s Special Reserve after the end of the financial year.

2. The expense derived from the application of International Accounting Standard 19—Employee Benefits during FY 2003 shall be charged against the Fund’s Special Reserve and shall be recorded separately in the financial records of the Fund. (EBS/03/43, 4/7/03)

Decision No. 12987-(03/36)

April 21, 2003

Rate of Charge on Use of Fund Resources for FY 2004

1. Notwithstanding Rule I-6(4)(a), effective May 1, 2003, the proportion of the rate of charge referred to in Rule I-6(4) to the SDR interest rate under Rule T-1 shall be 132 percent.

2. The net income target for FY 2004 shall be SDR 108 million. Any net income for financial year 2004 in excess of SDR 108 million shall be used to reduce retroactively the proportion of the rate of charge for financial year 2004. If net income for financial year 2004 is below SDR 108 million, the amount of projected net income for financial year 2005 shall be increased by the equivalent of that shortfall. For the purpose of this provision, net income shall be calculated without taking into account net operational income generated by the surcharges on purchases under the Supplemental Reserve Facility and Contingent Credit Lines, the surcharge on purchases in the credit tranches and under the Extended Fund Facility or the effect on income of the implementation of International Accounting Standard 19—Employee Benefits. (EBS/03/43, 4/7/03)

Decision No. 12988-(03/36)

April 21, 2003

Surcharges on Purchases Under Supplemental Reserve Facility and Contingent Credit Lines, and in Credit Tranches and Under Extended Fund Facility—Disposition of Net Operating Income, FY 2004

For financial year 2004, after meeting the cost of administering the PRGF Trust, any remaining net operational income generated by the surcharges on purchases under the Supplemental Reserve Facility and the Contingent Credit Lines and the surcharges on purchases in the credit tranches and under the Extended Fund Facility shall be placed, after the end of that financial year, to the General Reserve. (EBS/03/43, 4/7/03)

Decision No. 12990-(03/36) SRF/CCL

April 21, 2003

Burden Sharing—Implementation in FY 2004

Section I. Principles of Burden Sharing

1. The financial consequences for the Fund that stem from the existence of overdue financial obligations shall be shared between debtor and creditor member countries.

2. The sharing shall be applied in a simultaneous and symmetrical fashion.

Section II. Determination of the Rate of Charge

The rate of charge referred to in Rule I-6(4) shall be adjusted in accordance with the provisions of Section IV of this decision and Section IV of Executive Board Decision No. 12189-(00/45), adopted April 28, 2000.

Section III. Adjustment for Deferred Charges

Notwithstanding paragraph 1(a) of Section IV of Executive Board Decision No. 12189-(00/45), adopted April 28, 2000, the rate of charge and the rate of remuneration determined under that Section shall be rounded to two decimal places.

Section IV. Amount for Special Contingent Account-1

1. An amount of SDR 94 million shall be generated during financial year 2004 in accordance with the provisions of this Section and shall be placed to the Special Contingent Account-1 referred to in Decision No. 9471-(90/98), adopted June 20, 1990.

2. (a) In order to generate the amount to be placed to the Special Contingent Account-1 in accordance with paragraph 1 of this Section, notwithstanding Rule I 6(4)(a) and (b) and Rule I-10, the rate of charge referred to in Rule I-6(4) and, subject to the limitation in (b), the rate of remuneration prescribed in Rule I-10 shall be adjusted in accordance with the provisions of this paragraph.

(b) Notwithstanding paragraph 1 above, adjustments to the rate of charge and the rate of remuneration under this paragraph shall be rounded to two decimal places. No adjustment in the rate of remuneration under this paragraph shall be carried to the point where the average remuneration coefficient would be reduced below 85 percent for an adjustment period.

(c) The adjustments under this paragraph shall be made as of May 1, 2003, August 1, 2003, November 1, 2003 and February 1, 2004; shortly after July 31 for the period May 1 to July 31; shortly after October 31 for the period from August 1 to October 31; shortly after January 31 for the period from November 1 to January 31; shortly after April 30 for the period from February 1 to April 30.

3. (a) Subject to paragraph 3 of Decision No. 8780-(88/12), adopted January 29, 1988, the balances held in the Special Contingent Account-1 shall be distributed in accordance with the provisions of this paragraph to members that have paid additional charges or have received reduced remuneration as a result of the adjustment when there are no outstanding overdue charges and repurchases, or at such earlier time as the Fund may decide.

(b) Distributions under (a) shall be made in proportion to the amounts that have been paid or have not been received by each member because of the respective adjustments.

(c) If a member that is entitled to a payment under this paragraph has any overdue obligation to the Fund in the General Department at the time of payment, the member’s claim under this paragraph shall be set off against the Fund’s claim in accordance with Decision No. 8271-(86/74), adopted April 30, 1986, or any subsequent decision of the Fund.

(d) Subject to paragraph 4 of Decision No. 8780-(88/12), adopted January 29, 1988, if any loss is charged against the Special Contingent Account-1, it shall be recorded in accordance with the principles of proportionality set forth in (b).

Section V. Review

The operation of this decision shall be reviewed when the adjustment in the rate of remuneration reduces the remuneration coefficient to the limit set forth in paragraph 2(b) of Section IV of this decision and Section IV of Executive Board Decision No. 12189-(00/45), adopted April 28, 2000. (EBS/03/43, 4/7/03)

Decision No. 12989-(03/36)

April 21, 2003

Income Position for FY 2004—Review

The Fund has reviewed the income position for FY 2004 in accordance with Rule I-6(4)(b).

Decision No. 13145-(03/114)

December 12, 2003

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