Selected Decisions and Selected Documents of the International Monetary Fund
Chapter

Article V, Section 12(f) Special Disbursement Account1

Author(s):
International Monetary Fund
Published Date:
April 2004
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Trust Fund: Termination and Transfer of Resources to Special Disbursement Account

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3. (b) Of the resources received in the Special Disbursement Account as a consequence of the termination of the Trust Fund which are not used for the Subsidy Account as provided in (a) above, SDR 1,500 million shall be used to provide balance of payments assistance on concessional terms, on a uniform basis, to low-income developing members in need of such assistance under arrangements similar to those set forth in the Trust Instrument. The remainder shall be used to provide assistance to low-income developing members in accordance with the second sentence of subsection 12 (f)(ii) of Article V of the Articles of Agreement under a decision of the Fund to be taken not later than June 30, 1986. If no such decision is taken by that date, the remainder referred to in the preceding sentence shall be used on the same terms as the SDR 1,500 million referred to in the first sentence of this subparagraph.

Decision No. 6704-(80/185) TR

December 17, 1980

Special Disbursement Account: Investment

1. The Managing Director is authorized to invest a member’s currency held in the Special Disbursement Account in accordance with the provisions of Article V, Section 12(h).

2. Decision No. 7990-(85/81), adopted May 28, 1985, is repealed.

3. The Fund will review this investment strategy before September 30, 2002.

Decision No. 12152-(00/21)

March 3, 2000

Special Disbursement Account: Transitional Investment of Balances with the Federal Reserve Bank of New York

Pending placement in SDR-denominated investments with the Bank for International Settlements in accordance with Executive Board Decision No. 7990-(85/81), adopted May 28, 1985, the Managing Director is hereby authorized to invest with the Federal Reserve Bank of New York the U.S. dollars held by the Special Disbursement Account.

Decision No. 8029-(85/105)

July 11, 1985

Structural Adjustment Facility—Use of Resources of Special Disbursement Account

I. Income from Investment and LoansAvailability for Use1

II. Regulations for Administration

Pursuant to Article V, Section 12(j), the Fund adopts the Regulations set forth in the Annex to this decision for the administration of the Structural Adjustment Facility within the Special Disbursement Account.

Decision No. 8238-(86/56) SAF

March 26, 1986,

as amended by Decision Nos. 8497-(87/3) SAF, January 7, 1987,

8652-(87/105) SAF, July 22, 1987,

8758-(87/176) SAF, December 18, 1987,

9118-(89/40) SAF, March 29, 1989,

9490-(90/106) SAF, July 2, 1990,

9863-(91/156) SAF/ESAF, November 15, 1991,

10093-(92/94) SAF, July 23, 1992, and

10353-(93/49) SAF,

April 9, 1993

ANNEX TO DECISION II

Structural Adjustment Facility Within Special Disbursement Account

Paragraph 1. Purposes

The Structural Adjustment Facility within the Special Disbursement Account shall provide balance of payments assistance on concessional terms, on a uniform basis, to low-income developing members of the Fund in need of such assistance, in accordance with these Regulations.

Paragraph 2. Resources

The resources of the Special Disbursement Account available for the Structural Adjustment Facility (“the Facility”) shall consist of the assets that have been made, or will be, available for the Facility pursuant to Executive Board Decision No. 6704-(80/185) TR and Decision No. 8237-(86/56) SAF.

Paragraph 3. Conditions for Assistance

Balance of payments assistance shall be provided in the form of loans on the terms specified in paragraph 7 to eligible members that qualify for assistance under paragraph 5.

Paragraph 4. Amount of Assistance

1. The potential access of all eligible members to the resources of the Facility shall be expressed as a uniform proportion of their quotas in the Fund. It shall be determined from time to time, at least annually, by the Fund.

2. Whenever a member has notified the Fund that it does not intend to make use of the resources available under the Facility, the member shall not be included in the calculations under subparagraph (1) above.

3. If, after resources have been committed to a member under paragraph 5(2), the member’s potential access is increased or decreased pursuant to subparagraph (1) or (2) above, the total amount available to the member under the three-year commitment will be proportionately modified and subsequent disbursements will be modified accordingly. If the member’s potential access is increased after all disbursements under the three-year commitment have been made, but before the expiration of the commitment, an amount not in excess of the balance may be disbursed to the member at its request, upon a determination by the Fund that the member is continuing to make a reasonable effort to strengthen its balance of payments position.

4. Access to the Fund’s resources under other policies of the Fund will remain available in accordance with the terms of those policies.

Paragraph 5. Qualification for Assistance

1. An eligible member shall consult the Managing Director before making an initial request for a commitment of resources for a three-year period.

2. Resources shall be committed to a qualifying member, subject to these Regulations, for a three-year period upon approval by the Fund of an arrangement in support of a three-year macroeconomic and structural adjustment program presented by the member. The arrangement will prescribe the total amount, and the annual amounts within the total, available in accordance with the original or any modified terms of the arrangement, subject to these Regulations.

3. Before approving a three-year arrangement, the Fund shall be satisfied that the member has a protracted balance of payments problem and is making a reasonable effort to strengthen its balance of payments position.

4. A member shall be deemed to be making a reasonable effort within the meaning of subparagraph (3) of this paragraph if the member has presented to the Fund (i) a three-year adjustment program which seeks to correct macroeconomic and structural problems that have impeded balance of payments adjustment and economic growth, and (ii) the first of three annual programs setting forth the objectives for the year and the policies to be followed during the year to meet those objectives.

5. Resources under three-year commitments shall be made available in the form of loans under three annual arrangements approved by the Fund. An annual arrangement may not be approved before the expiration of the preceding annual arrangement, other than under exceptional circumstances. The approval of an annual arrangement under a three-year commitment must precede the expiration of the commitment period.

6. An annual arrangement shall be approved only for a member that has submitted a satisfactory program for the corresponding year and has a need for balance of payments assistance.

7. If, during a three-year commitment period, a member ceases to be eligible for assistance under the Facility, a commitment of resources under the Facility, made to the member for that period, shall remain in effect, subject to these Regulations.

Paragraph 6. Disbursements

1. One disbursement shall be made for each annual arrangement upon approval of the arrangement.

2. Disbursements to a member under the Facility shall be suspended while the member has an overdue financial obligation to the Fund in the General Resources Account, the Special Disbursement Account, or the SDR Department, or to the Fund as Trustee. The disbursements shall be made when the overdue financial obligation has been discharged.

3. No disbursement under a three-year commitment shall be made after the expiration of the commitment period.

Paragraph 7. Terms of Loans

1. Interest shall be charged at the rate of one half of one percent per annum on the outstanding balance of a loan and shall be paid on June 30 and December 31 of each year, or the next day if the day when payment is due is not a business day. Additional interest shall be charged on (i) the amount of overdue interest on structural adjustment facility loans, at a rate equal to one half of the sum of the rate of interest on loans under the Structural Adjustment Facility and the rate of interest on the SDR, and (ii) the overdue amounts of repayments of loans under the Structural Adjustment Facility, at a rate equal to one half of the sum of the rate of interest on loans under the Structural Adjustment Facility and the rate of interest on the SDR, less one half percent, and subject to the rules on waiver, notification, and payment of special charges under Executive Board Decision No. 8165-(85/189) G/TR, adopted December 30, 1985, or any subsequent decision of the Fund thereon.

Effective May 1, 1993, such additional interest shall not be levied on overdue obligations of a member that is overdue for six months or more in meeting any financial obligation to the Fund subject to additional interest under this paragraph.

8. A member shall repay each loan in ten equal semiannual installments, which shall begin not later than the end of the first six months of the sixth year, and be completed at the end of the tenth year, after the date of the disbursement.

9. On the request of a member when repayment of an installment is due under a loan, the Fund may reschedule the repayment to a date not later than two years after the due date if the Fund finds that repayment on the due date would result in serious hardship for the member and that such rescheduling would not impair the ability of the Special Disbursement Account to meet the liabilities of the Facility.

Paragraph 8. Unit of Account

The SDR shall be the unit of account for commitments, loans, and all other operations under the Facility.

Paragraph 9. Media of Payment

Loans shall be disbursed and repaid, and interest paid, in U.S. dollars. The Managing Director is authorized to make arrangements under which, at the request of a member, SDRs may be used for disbursements to the member or payment of interest or repayments of loans by it to the Fund.

Paragraph 10. Reimbursement of Expenses

The General Resources Account of the Fund shall be reimbursed annually by the Special Disbursement Account in respect of the expenses of administration of the Facility that are paid from the General Resources Account. Reimbursement shall be made on the basis of a reasonable estimate of these expenses by the Fund.

Paragraph 11. Reserves

The Fund may establish, in the Special Disbursement Account, such reserves for the purposes of the Facility as it deems appropriate.

Paragraph 12. Modifications

Any modification of these Regulations will affect only loans made after the effective date of the modification, provided that a modification of the interest rate shall apply to interest accruing after the effective date of the modification.

Paragraph 13. Identification of Decisions

Decisions and other actions taken by the Fund in the administration of the Facility shall be identified as such.

Paragraph 14. Loans Under Enhanced Structural Adjustment Facility

Assistance from the Structural Adjustment Facility, in conjunction with loans from the Enhanced Structural Adjustment Facility Trust, under the Enhanced Structural Adjustment Facility established by Decision No. 8757-(87/176) SAF/ESAF, adopted December 18, 1987 shall be governed by these Regulations subject to the following provisions:

1. (a) The amounts of such assistance shall be identified in any commitment, arrangement, or disbursement under the Enhanced Structural Adjustment Facility. They shall remain available for disbursement until the expiration of any commitment under the Enhanced Structural Adjustment Facility.

(b) If the full amount of resources committed to an eligible member under a three-year arrangement under the Structural Adjustment Facility has not been disbursed and a subsequent three-year commitment is made under the Enhanced Structural Adjustment Facility for that member, the undisbursed amounts under the previous arrangement may be made available to the member under the three-year arrangement under the Enhanced Structural Adjustment Facility.

10. Disbursements under each annual arrangement shall be made in two installments, the first after approval of the corresponding annual arrangement, and the second after

  • (i) a finding by the Managing Director that the performance criteria that have been established for that disbursement have been met, and a determination by the Fund that the midterm review of the program supported by the arrangement has been completed to the satisfaction of the Fund, or

  • (ii) if so specified in the annual arrangement, a finding by the Managing Director that the performance criteria that have been established for that disbursement have been met.

11. Disbursements shall be made at the same time as the corresponding disbursements under Trust loans.

12. If, pursuant to subparagraph (2) above, a second disbursement under an annual arrangement is not made, the period of the three-year commitment may be extended, and the corresponding amount may be made available during the extended period, subject to these Regulations.

13. If a three-year commitment to an eligible member has expired with undrawn amounts, the Fund may approve a new commitment for that member, subject to these Regulations, provided that the member submits a three-year macroeconomic and structural adjustment program and that the amount of resources that could be made available under the new commitment shall not exceed the undrawn amounts under the expired commitment. The new commitment may be made under a one-year or a two-year arrangement, as the case may be, with annual access to be determined on the basis of the strength of the member’s program and its balance of payments need.

14. If a member has received loans from the Structural Adjustment Facility in conjunction with loans from the Enhanced Structural Adjustment Facility Trust, any payment made by the member for the discharge of an obligation under any such loan shall also be attributed to the obligation under the other loan having the same due date in proportion to the respective amounts of such obligations.

III. Use of SDRs in Operations1

IV. List of Eligible Members and Amounts of Assistance

1. The members on the list annexed to this decision are eligible to receive balance of payments assistance under the Structural Adjustment Facility within the Special Disbursement Account (“the Facility”).

2. The potential access of each eligible member to the resources of the Facility as of March 29, 1989 shall be 50 percent of quota; no more than 15 percent of quota shall be disbursed under the first annual arrangement; no more than 20 percent of quota shall be disbursed under the second annual arrangement; and no more than 15 percent of quota shall be disbursed under the third annual arrangement.

Decision No. 8240-(86/56) SAF

March 26, 1986,

as amended by Decision Nos. 8542-(87/36) SAF, March 2, 1987,

8651-(87/105) SAF, July 22, 1987,

8935-(88/118) SAF, July 29, 1988,

9117-(89/40) SAF, March 29, 1989,

9986-(92/48) SAF, April 7, 1992, and

10184-(92/132) SAF,

November 3, 1992

ANNEX TO DECISION IV

Low-Income Developing Members Eligible for Assistance Under Structural Adjustment Facility Within Special Disbursement Account*

Members
AfghanistanMadagascar
Albania 3/Malawi
Angola 3/Maldives
Armenia 4/Malawi
Azerbaijan 7/Maldives
BangladeshMali
BeninMauritania
BhutanMoldova, Republic of 8/
BoliviaMongolia 3/
Burkina FasoMozambique
BurundiMyanmar
CambodiaNepal
Cameroon 5/Nicaragua 3/
Cape VerdeNiger
Central African RepublicNigeria 3/
ChadPakistan
ComorosPapua New Guinea 9/
Congo, Democratic Republic ofRwanda
Congo, Republic of 7/St. Lucia
Cote d’Ivoire 3/St. Vincent and the Grenadines
DjiboutiSao Tomé and Principe
DominicaSamoa
Eritrea 6/Senegal
EthiopiaSierra Leone
Gambia, TheSolomon Islands
Georgia 4/Somalia
GhanaSri Lanka
GrenadaSudan
GuineaTajikistan 4/
Guinea-BissauTanzania
GuyanaTimor Leste 9/
HaitiTogo
Honduras 3/Tonga 2/
India 1/Uganda
KenyaUzbekistan 9/
Kiribati 2/Vanuatu
Kyrgyz Republic 4/Vietnam
Lao, People’s Democratic RepublicYemen, Republic of
LesothoZambia
LiberiaZimbabwe 3/

V. Review of Operation of Facility

The Fund shall review the operation of the Structural Adjustment Facility within the Special Disbursement Account not later than May 31, 1988.

Decision No. 8241-(86/56) SAF

March 26, 1986

Special Disbursement Account: Review of Structural Adjustment Facility and Establishment of the Enhanced Structural Adjustment Facility

1. The Executive Board has reviewed the operation of the Structural Adjustment Facility within the Special Disbursement Account, as provided in Decision No. 8241-(86/56) SAF, adopted March 26, 1986.

2. (a) The Executive Board decides to establish a Facility to be known as the Enhanced Structural Adjustment Facility. Loans under that Facility shall be provided by the Enhanced Structural Adjustment Facility Trust, normally in conjunction with loans under the Structural Adjustment Facility, on concessional terms, to low-income developing members that qualify for assistance.

Assistance under that Facility may also be provided from loans by the Enhanced Structural Adjustment Facility Trust not made in conjunction with loans from the Structural Adjustment Facility to members that are eligible for assistance from the Structural Adjustment Facility and have notified the Fund of their intention not to make use of the resources of the Structural Adjustment Facility.

(b) The use of resources provided by the Structural Adjustment Facility shall be subject to the Regulations for the Administration of the Structural Adjustment Facility, as amended by Decision No. 8758-(87/176) SAF, adopted December 18, 1987.

(c) The use of resources provided by the Enhanced Structural Adjustment Facility Trust shall be subject to the provisions of the Enhanced Structural Adjustment Facility Trust Instrument adopted by Decision No. 8759-(87/176) ESAF, adopted December 18, 1987.1

3. Resources provided by lenders that agree to support arrangements under the Enhanced Structural Adjustment Facility through loans to qualifying members shall be used in association with loans under the Enhanced Structural Adjustment Facility and in accordance with the arrangements between the Fund and the lenders.

4. The Fund shall review the operation of the Enhanced Structural Adjustment Facility, of the Structural Adjustment Facility, and of the Enhanced Structural Adjustment Facility Trust, not later than March 31, 1989.

Decision No. 8757-(87/176) SAF/ESAF

December 18, 1987,

as amended by Decision No. 9987-(92/48) SAF/ESAF,

April 7, 1992

Structural Adjustment Facility, Enhanced Structural Adjustment Facility, and Enhanced Structural Adjustment Facility Trust—1992 Review

Pursuant to Decision No. 9808-(91/114) SAF/ESAF, adopted September 4, 1991, the Fund has reviewed the operation of the Structural Adjustment Facility, of the Enhanced Structural Adjustment Facility and of the Enhanced Structural Adjustment Facility Trust. The operation of these facilities and of the Enhanced Structural Adjustment Facility Trust shall be further reviewed not later than July 10, 1993.

Decision No. 10089-(92/94) SAF/ESAF

July 23, 1992

Special Disbursement Account: Structural Adjustment Facility—1992 Review of Potential Access

Pursuant to paragraph 4(1) of the Regulations for the Administration of the Structural Adjustment Facility within the Special Disbursement Account (Annex to Decision No. 8238-(86/56) SAF, as amended), the Fund determines that the potential access of each eligible member to the resources of the facility established by Decision No. 8240-(86/56) SAF, adopted March 26, 1986, as amended, continues to be adequate. The potential access under the facility shall be further reviewed before the increase in quotas under the Ninth General Review becomes effective in accordance with paragraph 3 of Board of Governors Resolution No. 45-2, adopted effective June 28, 1990, and in any event not later than July 10, 1993.

Decision No. 10090-(92/94) SAF

July 23, 1992

Special Disbursement Account: Enhanced Structural Adjustment Facility—Extension of Commitment and Disbursement Periods for Agreements

The Managing Director is authorized to conclude agreements on the extension of commitment and disbursement periods for agreements pursuant to paragraph 3 of Decision No. 8757-(87/176) SAF/ESAF, adopted December 18, 1987, on behalf of the Fund.

Decision No. 9116-(89/40) ESAF

March 29, 1989

Special Disbursement Account: Transfer of Resources from the Special Disbursement Account to the Enhanced Structural Adjustment Facility Trust and Retransfer to the Special Disbursement Account

1. The following resources held in, or to be received by, the Special Disbursement Account shall be transferred to the Enhanced Structural Adjustment Facility Trust (“the Trust”)1 for its Reserve Account upon the establishment of the Trust or upon receipt of these resources by the Special Disbursement Account, whichever is later:

  • (i) all income already received or to be received from the investment of resources available for the Structural Adjustment Facility within the Special Disbursement Account;

  • (ii) all interest already received or to be received, including from special charges, on loans under the Structural Adjustment Facility;

  • (iii) all repayments of loans under the Structural Adjustment Facility; and

  • (iv) all the resources held in the Special Disbursement Account that are derived from the termination of the 1976 Trust Fund and that can no longer be used under the Structural Adjustment Facility, and that have not been transferred to the Subsidy Account of the ESAF Trust in accordance with Decision No. 10531-(93/170) SAF;

provided that the above resources shall be retransferred to the Special Disbursement Account when and to the extent that they are needed for the reimbursement of the expenses incurred by the General Resources Account in the administration of the Structural Adjustment Facility and the Trust, which must be reimbursed in accordance with paragraph 10 of the Regulations for the Administration of the Structural Adjustment Facility and paragraph 3 of this decision.

2. Whenever the Trustee determines that amounts in the Reserve Account of the Trust exceed the amount that may be needed to cover the total liabilities of the Trust to lenders that are authorized to be discharged by the Reserve Account, the Trustee shall retransfer such excess amounts to the Special Disbursement Account. Upon liquidation of the Trust, all amounts in the Reserve Account remaining after discharge of liabilities authorized to be discharged by the Reserve Account shall be transferred to the Special Disbursement Account.

3. The Special Disbursement Account shall reimburse the General Resources Account annually in respect of the expenses of conducting the business of the Enhanced Structural Adjustment Facility Trust.

4. Resources transferred under this decision shall be available to cover liabilities that are authorized to be discharged by the Reserve Account with respect to members that are eligible for assistance from the Structural Adjustment Facility and have notified the Fund of their intention not to make use of the resources of the Structural Adjustment Facility.

5. This decision replaces Decision No. 8237-(86/56) SAF, adopted March 26, 1986.

Decision No. 8760-(87/176)

December 18, 1987

as amended by Decision Nos. 9989-(92/48), April 7, 1992, and

10531-(93/170) SAF,

December 15, 1993

Special Disbursement Account: Review of Structural Adjustment Facility (SAF), Termination of Authority to Make Commitments to Provide Assistance from SAF in Conjunction with Loans from ESAF Trust, and Transfer of Resources from SDA to ESAF Trust

1. The Fund has reviewed the operation of the Structural Adjustment Facility (SAF) within the Special Disbursement Account (SDA) and decides that from the date this decision becomes effective it will no longer approve commitments to provide assistance from the SAF in conjunction with loans from the Enhanced Structural Adjustment Facility Trust (ESAF Trust).

2. With the exception of the resources that have been or are to be transferred to the Reserve Account of the ESAF Trust pursuant to subparagraphs 1(i), 1(ii), or 1(iii) of Decision No. 8760-(87/176), as amended, (i) SDR 260 million of the resources held in the SDA derived from the termination of the 1976 Trust Fund shall be maintained in that account for further use under the SAF, and (ii) SDR 400 million of the resources held or to be received by the SDA that are derived from the termination of the 1976 Trust Fund shall be transferred promptly after the effectiveness of this decision to the Subsidy Account of the ESAF Trust for the subsidization of ESAF Trust loans. Accordingly, Decision No. 8760-(87/176), as amended, is further amended by adding at the end of subparagraph 1(iv) the following: “and that have not been transferred to the Subsidy Account of the ESAF Trust in accordance with Decision No. 10531-(93/170) SAF.”

Decision No. 10531-(93/170) SAF

December 15, 1993

Modalities of Gold Pledge for Use of PRGF Trust Resources Under Rights Approach

1. As long as loans from the Poverty Reduction and Growth Facility Trust (hereinafter the “PRGF Trust”) to members for the financing of “rights” as defined in the Managing Director’s Summing Up at EBM/90/97 of June 20, 1990 are outstanding, the Fund shall review the adequacy of the Reserve Account of the ESAF Trust (hereinafter the “Reserve Account”) by end March and end September of each year.

2. The Fund shall determine whether the amounts held in the Reserve Account, plus other available means of financing that would effectively restore the resources of the Trust, are sufficient to meet all obligations which could give rise to a payment from the Reserve Account to lenders to the Loan Account of the ESAF Trust in the six months following a review under paragraph 1. To the extent that it is determined by the Fund that these resources are insufficient to meet all such obligations (the “potential shortfall”), then the Managing Director is hereby authorized and instructed to sell gold held in the General Resources Account of the Fund in an amount that would generate proceeds available for transfer to the Special Disbursement Account under Article V, Section 12(f), up to the equivalent of the potential shortfall in the Reserve Account provided that

  • (i) these proceeds shall not exceed the equivalent of the previous drawings on the Reserve Account attributable to overdue obligations under loans from the ESAF Trust to members for the financing of rights as described above, plus foregone interest earnings on amounts equivalent to these drawings, and less any amounts corresponding to these drawings that have been subsequently paid by such members or for which the Reserve Account has previously been replenished from the proceeds of a gold sale under this decision; and

  • (ii) the total amount of gold available for sale under this decision shall not exceed the amount specified in paragraph 4.

3. The proceeds of any sale of gold under this decision in excess of an amount equivalent at the time of the sale to one special drawing right per 0.888 671 gram of fine gold shall be placed in the Special Disbursement Account and shall be transferred immediately thereupon to the Reserve Account.

4. Subject to Paragraphs 5, 6, and 7 the Fund shall retain full ownership of holdings of gold of 3 million ounces in the General Resources Account, less any amounts sold pursuant to this decision, as long as loans from the ESAF Trust to members for the financing of rights as described above remain outstanding.

5. The need to maintain the full amount specified in paragraph 4 available for sale shall be reassessed on the occasion of the reviews under paragraph 1. This amount shall not be reduced without the consent of all lenders to the Loan Account of the ESAF Trust.

6. This decision shall not be amended by the Fund except with the consent of all lenders to the Loan Account of the ESAF Trust.

7. This decision shall be terminated (i) when after all loans that may be made from the ESAF Trust have been fully disbursed, the resources held in the Reserve Account exceed the amounts outstanding under ESAF Trust loans, or (ii) when after all loans that may be made from the ESAF Trust for the financing of rights as described above have been fully disbursed, there are no outstanding obligations under such ESAF Trust loans, with respect to which a gold sale can be made under this decision, whichever is earlier.

Decision No. 10286-(93/23) ESAF

February 22, 1993,

as amended by Decision No. 12228-(00/66) PRGF,

June 30, 2000

PRGF Trust and PRGF-HIPC Trust—Reserve Account—September 2001 Review

Pursuant to Decision No. 10286-(93/23) ESAF, the Fund has reviewed the adequacy of the Reserve Account of the PRGF Trust, and determines that amounts held in the account are sufficient to meet all obligations which could give rise to a payment from the Reserve Account to lenders to the Loan Account of the PRGF Trust in the six months from October 1, 2001 to March 31, 2002. (SM/01/277, 8/29/01)

Decision No. 12568-(01/93) PRGF

September 12, 2001

PRGF Trust and PRGF-HIPC Trust—Reserve Account—April 2002 Review

Pursuant to Decision No. 10286-(93/23) ESAF, the Fund has reviewed the adequacy of the Reserve Account of the PRGF Trust, and determines that amounts held in the account are sufficient to meet all obligations which could give rise to a payment from the Reserve Account to lenders to the Loan Account of the PRGF Trust in the six months from April 1, 2002 to September 30, 2002. (SM/02/96) 3/26/02)

Decision No. 12720-(02/40) PRGF

April 9, 2002

PRGF Trust and PRGF-HIPC Trust—Reserve Account—September 2002 Review

Pursuant to Decision No. 10286-(93/23) ESAF, the Fund has reviewed the adequacy of the Reserve Account of the PRGF Trust, and determines that amounts held in the account are sufficient to meet all obligations which could give rise to a payment from the Reserve Account to lenders to the Loan Account of the PRGF Trust in the six months from April 1, 2002 to September 30, 2002. (SM/02/273, 8/21/02)

Decision No. 12847-(02/94) PRGF

September 6, 2002

PRGF Trust and PRGF-HIPC Trust—Reserve Account—March 2003 Review

Pursuant to Decision No. 10286-(93/23) ESAF, adopted on February 22, 1993, as amended, the Fund has reviewed the adequacy of balances in the Reserve Account of the PRGF Trust, and determines that they are sufficient to meet all obligations that could give rise to payments from the Account to lenders to the Loan Account of the PRGF Trust in the six months from April 1, 2003 to September 30, 2003. (SM/03/100, 3/21/03)

Decision No. 12979-(03/31) PRGF

March 31, 2003

PRGF Trust and PRGF-HIPC Trust—Reserve Account—September 2003 Review

Pursuant to Decision No. 10286-(93/23) ESAF, adopted on February 22, 1993, as amended, the Fund has reviewed the adequacy of balances in the Reserve Account of the PRGF Trust, and determines that they are sufficient to meet all obligations that could give rise to payments from the Account to lenders to the Loan Account of the PRGF Trust in the six months from October 1, 2003 to March 31, 2004.

Decision No. 13089-(03/84) PRGF

September 3, 2003

Off-Market Gold Sales, Acceptance of Gold in Payment of Repurchase Obligations, and Use of Proceeds of Gold Sales Placed in Special Disbursement Account

1. The Fund stands ready to sell gold held by it on August 31, 1975 to generate an amount equivalent to SDR 2.226 billion for the Special Disbursement Account (“gold profits”), but not to exceed 14 million troy ounces of fine gold, to members willing to buy such gold and that meet the following conditions: (i) have repurchase obligations falling due to the Fund, (ii) represent that they will not sell the gold so acquired in the market, and (iii) represent that they intend to use the gold so purchased to make payments in gold to the Fund in connection with a repurchase obligation falling due on the day of the gold purchase. Each sale shall be made for U.S. dollars at the U.S. dollar price per troy ounce of fine gold at the morning fixing price in London three business days prior to the value day of the sale, and the value of the U.S. dollar in terms of the SDR shall be as determined under Rule O-2(a). Payment shall be made on the same value day of the related repurchase obligation. In accordance with Article V, Section 12(c), the Fund has consulted with the United States for whose currency the gold will be sold.

2. In accordance with Article V, Section 12(f), an amount of the proceeds of gold sales equivalent at the time of sale to one SDR per 0.888671 gram of fine gold shall be placed in the General Resources Account. Any balance over this amount, but not to exceed the equivalent of SDR 2.226 billion, shall be held in the Special Disbursement Account and invested in accordance with Article V, Section 12(h). Of the proceeds of such investments, only nine-fourteenths (9/14) of the equivalent of SDR 1.76 billion on an “as needed” basis shall be transferred, as needed, to a separate sub-account of the PRGF-HIPC Trust and shall be used exclusively to provide debt relief from the Fund under the HIPC Initiative to members that qualify for such relief or, if not needed for such purpose, shall be used to replenish resources from other sources that have been used for such relief. The remaining five-fourteenths (5/14) of proceeds from investments equivalent to SDR 1.76 billion on an “as needed” basis shall be kept, and reinvested, in the Special Disbursement Account until a further decision on their use is adopted.

3. The Fund stands ready to accept gold in payment of repurchase obligations from a member that has acquired gold from the Fund in accordance with paragraph 1 of this decision, up to the amount that has been sold to the member under paragraph 1 of this decision. Gold received in payment by the Fund under this decision shall be valued in terms of the SDR on the basis of the U.S. dollar price per troy ounce of fine gold at the morning fixing price in London three business days prior to the value day of the payment, and the value of the U.S. dollar in terms of the SDR shall be as determined under Rule O-2(a).

Decision No. 12063-(99/130)

December 8, 1999

Financing Fund Participation in Initiatives for Heavily Indebted Poor Countries and Poverty Reduction Growth Facility—Use of Investment Income on Proceeds of Off-Market Gold Transactions

Pursuant to Article V, Section 12(f), the Fund decides that the remaining five-fourteenths (5/14ths) of proceeds from investments equivalent to SDR 1.76 billion on an “as needed” basis kept in the Special Disbursement Account in accordance with the last sentence of paragraph 2 of Decision No. 12063-(99/130), adopted December 8, 1999, shall be transferred and used in the same manner as specified for the other nine-fourteenths (9/14ths) of the proceeds in paragraph 2 of Decision No. 12063-(99/130). (EBS/00/224, 11/13/00).

Decision No. 12330-(00/115)

November 20, 2000

See also Decision No. 7989-(85/81) SBS, May 28, 1985, on pages 714–15.

See pages 705–706 for text.

Decision No. 8237-(86/56) SAF was replaced by Decision No. 8760-(87/176). See pages 438–40.

See Decision No. 8239-(86/56) SAF, March 26, 1986, page 653.

See page 61.

On the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, later renamed the Poverty Reduction and Growth Facility Trust, see Decision No. 8759-(87/176) ESAF on page 61.

*

Effective November 22, 1999, the Enhanced Structural Adjustment Facility (ESAF) was renamed to the Poverty Reduction and Growth Facility (PRGF). Unless otherwise indicated, the list of countries below were first made SAF/PRGF eligible on March 26, 1986.

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