Article V, Section 3(a), (b), and (c): Use of Fund’s Resources

International Monetary Fund
Published Date:
April 1987
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Extended Fund Facility and Stand-By Arrangements: Review

1. Pursuant to Decision No. 8192-(86/13), adopted January 27, 1986, the Fund has reviewed the experience with recent programs supported by stand-by and extended arrangements, and decides that the provisions of the extended Fund facility and the guidelines on conditionality will remain in force in the present circumstances.

2. The Fund will again review the experience relating to programs supported by stand-by and extended arrangements at an appropriate time pursuant to paragraph 12 of the guidelines on conditionality. At that time, the Fund will also review the provisions of the extended Fund facility.

3. In the light of forthcoming discussions by the Executive Board on issues relating to conditionality, the Executive Board will decide when it may be appropriate to have the next comprehensive review of conditionality.

Decision No. 8583-(87/72)

May 8, 1987

Policy on Enlarged Access: Extension and Access Limits for 1988

The Fund, having reviewed the Decisions on the Policy on Enlarged Access and the limits on access to the Fund’s resources under that Policy and under the special facilities of the Fund (No. 6783-(81/40); No. 7599-(84/3), as amended; No. 7600-(84/3), as amended; and No. 7602-(84/3)), decides that:

1. In paragraph a. of Decision No. 7599-(84/3), as amended, “1987” shall be replaced by “1988.”

2.(a) In the third sentence of paragraph a. of Decision No. 7600-(84/3), as amended, “1986 and 1987” shall be replaced by “1986, 1987, and 1988.”

(b) In paragraph b. of Decision No. 7600-(84/3), as amended, “1987” shall be replaced by “1988.”

Decision No. 8744-(87/166)

December 4, 1987

Compensatory Financing of Fluctuations in the Cost of Cereal Imports: Review

The Executive Board has reviewed Decision No. 6860-(81/81), adopted May 13, 1981, as amended, on Compensatory Financing of Fluctuations in the Cost of Cereal Imports, as required by paragraph 17 of that decision. The next review of the decision shall be conducted not later than May 13, 1989.

Decision No. 8586-(87/73)

May 13, 1987

Multiple Currency Practices Applicable Solely to Capital Transactions

The phrase “multiple currency practices” in decisions of the Fund relating to the use of the Fund’s resources does not, except as otherwise provided, include multiple currency practices applying solely to capital transactions.

Decision No. 8648-(87/104)

July 17, 1987

The Acting Chairman’s Concluding Remarks at the Discussion on Additions to the Special Contingent Account Executive Board Meeting 88/12, January 29, 1988

Some Directors made reference to the enhanced structural adjustment facility in the context of the arrears problem. The Managing Director has stated several times that members in arrears to the Fund would not have access to the enhanced structural adjustment facility, just as they do not currently have access to the structural adjustment facility (Buff/87/260, 12/17/87), or the facilities in its General Resources Account. Thus, the existing arrears policy is not changed or modified in the context of the enhanced structural adjustment facility. At the heart of dealing with those cases in which arrears exist are the elements of a strong adjustment program which will assist in attracting external resources to help the country clear its arrears. The Fund could then grant access to its facilities as appropriate, including, of course, the enhanced structural adjustment facility when it becomes operational.

The Acting Chairman’s Summing Up at the Conclusion of the Discussion on Overdue Financial Obligations—Six-Monthly Report Executive Board Meeting 88/19, February 10, 1988

Second, Directors also agreed that the present practice, whereby the general policies and procedures relating to overdue financial obligations to the Fund are not applied to overdue maintenance of value adjustments, should be continued. Again, it was emphasized that prompt settlement of these adjustments constitutes an essential element of members’ financial obligations to the Fund, and the staff was encouraged to follow up actively in cases of overdue valuation adjustments in order to achieve a more speedy settlement and to report periodically to the Board in the context of staff papers on individual members.

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