Chapter

Enhanced Structural Adjustment Facility Trust–Subsidy Account–Establishment of Administered Account

Author(s):
International Monetary Fund
Published Date:
November 1995
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Bank of Botswana

1. Pursuant to Article V, Section 2(b), at the request of the Bank of Botswana (the “Bank”) as set forth in its letter dated May 19, 1994 (Annex I), the Fund adopts the Instrument to establish an account for the administration by the Fund of the deposit to be provided by the Bank on the terms and conditions set forth in the Instrument that is annexed to this decision (Attachment to Annex I).

2. The provisions of the Instrument may be amended only by a decision of the Fund and with the concurrence of the Bank.

3. The Managing Director is authorized to accept the proposal by the Bank to make to the Account a deposit in SDRs equivalent to US$10 million on a value date to be agreed between the Fund and the Bank (Annex II). The deposit shall be administered in accordance with the provisions of the Instrument adopted under paragraph 1 of this decision. The agreement between the Fund and the Bank shall enter into effect on the date the Fund acknowledges receipt of the communication by which the Bank notifies the Fund of the completion of all internal procedures, as required.*

Decision No. 10726-(94/59) ESAF

June 30, 1994

Annex I

Gaborone, May 19, 1994

Mr. Michel Camdessus

Managing Director

International Monetary Fund

700 19th Street, N.W.

Washington, D.C. 20431

U.S.A.

Dear Mr. Camdessus,

The Bank of Botswana (the “Bank”) proposes to deposit in an account to be established with the International Monetary Fund for the administration of the deposited resources in accordance with Article V, Section 2(b) of the Fund’s Articles of Agreement an amount denominated in SDRs equivalent to US$10 million three business days before a value date to be agreed between the Bank and the Fund, but in any case not later than July 1, 1994. It is also proposed that the deposit and its administration be governed by the provisions of the attached Instrument, which is subject to the approval of the Executive Board of the Fund.

If the foregoing proposal is acceptable to the Fund, this communication and your duly authenticated reply accepting this proposal shall constitute an agreement between the Fund and the Bank. It shall enter into effect on the date the Fund acknowledges receipt of the communication by which the Bank of Botswana notifies the Fund of the completion of all internal procedures, as required.

The Bank requests the Fund to establish an account for the administration of the deposit in accordance with Article V, Section 2(b) of the Fund’s Articles of Agreement.

Sincerely,

/s/

H.C.L. Hermans

GOVERNOR

Annex I Attachment

Proposed Instrument for an Administered Account Botswana

To help fulfill its purposes, the International Monetary Fund (hereinafter called the Fund) has adopted this Instrument to establish an account in accordance with Article V, Section 2(b) (“Administered Account Botswana”) at the request of the Bank of Botswana (the “Bank”), which shall be governed by, and administered in accordance with, the terms and conditions of this Instrument.

1. The Managing Director is hereby authorized to establish with the Fund an account for the administration of resources deposited in that account by the Bank.

2. The amount of the deposit shall be denominated in SDRs. Unless otherwise agreed between the Fund and the Bank, an amount of U.S. dollars shall be transferred to an account designated by the Fund, and the SDR amount of the deposit will be the equivalent of the amount of U.S. dollars at the exchange rate three business days before the value date of the deposit.

3. The resources of the account shall be invested by the Fund. The Managing Director is authorized (i) to make all arrangements, including establishment of accounts in the name of the International Monetary Fund, with such depositories of the Fund as may be necessary to carry out the operations of the account, and (ii) to take all measures necessary to implement the provisions of this Instrument.

4. (a) The deposit shall bear interest at a rate of 2 percent per annum.

(b) The amount of interest payable in respect of the amount of the deposit outstanding shall be calculated on the basis of the actual number of days that interest has accrued and a 365-day year and shall be paid from the proceeds of the investment on each anniversary of the deposit or on the date the principal amount is repaid, whichever is earlier.

5. The difference between the interest earned by the Fund on the invested amount net of any cost, and the interest due to the Bank under paragraph 4, shall be transferred promptly to the Subsidy Account of the Enhanced Structural Adjustment Facility Trust.

6. (a) Subject to the other provisions of this Instrument, the Fund shall repay the principal amount of the deposit from the proceeds of the investment ten years after the date of the deposit.

(b) If the repayment date or an interest payment date does not fall on a business day either of the Fund or of the place where the payment is to be made, the payment shall be made on the preceding business day of both the Fund and the place of payment.

7. (a) Payments by the Fund of principal and interest shall be made in U.S. dollars, or in other media as may be agreed between the Bank and the Fund.

(b) Payments in U.S. dollars shall be made by crediting the amount due to the account of the Bank of Botswana at the Federal Reserve Bank of New York, New York. Payments in SDRs shall be made by crediting the amount due to Botswana’s holdings account in the Special Drawing Rights Department. Payments in other currencies shall be made to accounts specified by the Bank.

8. Unless otherwise agreed between the Bank and the Fund, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies, in terms of the SDR, established by the Fund for the third business day of the Fund before the value date of the transfer or payment.

9. The Bank intends to maintain the deposit outstanding through its maturity. However, if the Bank represents that because of Botswana’s balance of payments and reserve position there is a need to encash all or part of the deposit, and the Fund, having given this representation the overwhelming benefit of any doubt, agrees, the deposit may be encashed in whole or in part in advance of maturity. The Bank agrees to restore the deposit as soon as practicable in light of developments in Botswana’s balance of payments and reserve position.

10. The Fund may repay the principal amount of the deposit in part or in full at any time in advance of maturity.

11. (a) The assets and property of the account shall be kept separate from the assets and property of all other accounts of, or administered by, the Fund. The assets and property held in such other accounts shall not be used to discharge or meet the liabilities, obligations or losses of the Fund incurred in the administration of the account; nor shall the assets and property of the account be used to discharge or meet the liabilities, obligations or losses incurred by the Fund in the administration of such other accounts.

(b) Subject to the provisions of this Instrument, the Fund, in administering the account, shall apply mutatis mutandis the same rules and procedures as apply to operations of the General Resources Account of the Fund.

(c) No charge shall be levied on the Bank for the services rendered by the Fund in the administration, operation, and termination of this account.

12. (a) The Fund shall maintain separate financial records and prepare separate financial statements for the account.

(b) The Audit Committee selected under Section 20 of the Fund’s By-Laws shall audit the operations and transactions conducted through the account. The audit shall relate to the financial year of the Fund.

(c) The Fund shall report on the assets and property and on the operations of the account in the Annual Report of the Executive Board to the Board of Governors and shall include in that Annual Report the report of the Audit Committee on the account.

13. The account shall be terminated upon completion of its operation. Once the obligation to repay the deposit has been discharged and the final payment of interest has been made, any surplus remaining in the account shall be transferred to the Subsidy Account of the Enhanced Structural Adjustment Facility Trust.

14. Any question arising hereunder shall be settled by mutual agreement between the Bank and the Fund.

Annex II

June, 1994

Dear Mr. Hermans,

I am delighted to acknowledge and thank you for your letter of May 19, 1994 proposing to make a deposit by the Bank of Botswana in an Administered Account Botswana to be established by the Fund, for the benefit of the Subsidy Account of the Enhanced Structural Adjustment Facility Trust. I have been authorized to accept your proposal for the bank’s deposit, and I am pleased to inform you that the Executive Board has adopted the Instrument for an Administered Account Botswana as set out in the attachment to your letter.

Please let me express my deep appreciation, and that of the Fund’s membership, for the generous support the Bank of Botswana is providing for the extended and enlarged ESAF.

Sincerely,

Michel Camdessus

Mr. H.C L. Hermans

Governor

Bank of Botswana

P.O. Box 712

Gaborone

Botswana

Banco Central de Chile

1. Pursuant to Article V, Section 2(b), at the request of the Banco Central de Chile (the “Bank”), as fiscal agent for the Republic of Chile, as set forth in its letter dated August 18, 1994 (Annex I of EBS/94/166), the Fund adopts the Instrument to establish an account for the administration by the Fund of the deposit to be provided by the Bank on the terms and conditions set forth in the Instrument that is annexed to this decision (Attachment to Annex I).

2. The provisions of the Instrument may be amended only by a decision of the Fund and with the concurrence of the Bank.

3. The Managing Director is authorized to accept the proposal by the Bank to make to the Account a deposit of SDR 15 million on a value date to be agreed between the Fund and the Bank (Annex II of EBS/94/166). The deposit shall be administered in accordance with the provisions of the Instrument adopted under paragraph 1 of this decision. The agreement between the Fund and the Bank shall enter into effect on the date the Fund acknowledges receipt of the communication by which the Bank notifies the Fund of the completion of all internal procedures, as required.*

Decision No. 10769-(94/75) ESAF

August 24, 1994

Annex I to EBS/94/166

August 18, 1994

Mr. Michel Camdessus

Managing Director

International Monetary Fund

700 19th Street, N.W.

Washington, D.C. 20431

U.S.A.

Dear Mr. Camdessus,

Banco Central de Chile (the “Bank”), as fiscal agent for the Republic of Chile, proposes to deposit in an account to be established with the International Monetary Fund for the administration of the deposited resources in accordance with Article V, Section 2(b) of the Fund’s Articles of Agreement an amount equivalent to SDR 15 million on a value date to be agreed. It is also proposed that the deposit and its administration be governed by the provisions of the attached Instrument, which is subject to the approval of the Executive Board of the Fund.

If the foregoing proposal is acceptable to the Fund, this communication and your duly authenticated reply accepting this proposal shall constitute an agreement between the Fund and the Bank. It shall enter into effect on the date the Fund acknowledges receipt of the communication by which the Banco Central de Chile notifies the Fund of the completion of all internal procedures, as required.

The Bank requests the Fund to open an account for the administration of the deposit in accordance with Article V, Section 2(b) of the Fund’s Articles of Agreement.

Sincerely.

/ s /

Roberto Zahler

President

Annex I Attachment

Proposed Instrument for an Administered Account Chile

To help fulfill its purposes, the International Monetary Fund (hereinafter called the Fund) has adopted this Instrument to establish an account in accordance with Article V, Section 2(b) (“Administered Account Chile”) at the request of Banco Central de Chile (the “Bank”), as fiscal agent for the Republic of Chile, which shall be governed by, and administered in accordance with, the terms and conditions of this Instrument:

1. The Managing Director is hereby authorized to establish with the Fund an account for the administration of resources deposited in that account by the Bank.

2. The amount of the deposit shall be denominated in SDRs. Unless otherwise agreed between the Fund and the Bank, the amount shall be paid by the Bank by transfer of an equivalent amount of U.S. dollars to an account designated by the Fund.

3. The resources of the account shall be invested by the Fund. The Managing Director is authorized (i) to make all arrangements, including establishment of accounts in the name of the International Monetary Fund, with such depositories of the Fund as may be necessary to carry out the operations of the account, and (ii) to take all measures necessary to implement the provisions of this Instrument.

4. (a) The deposit shall bear interest at an annual rate of one-half of 1 percent per annum.

(b) The amount of interest payable in respect of the amount of the deposit outstanding shall be calculated on the basis of the actual number of days that interest has accrued and a 365-day year and shall be paid from the proceeds of the investment on each anniversary of the deposit or on the date the principal amount is repaid, whichever is earlier.

5. The difference between the interest earned by the Fund on the invested amount and the interest due to the Bank under paragraph 4, net of any cost, shall be transferred promptly to the Subsidy Account of the Enhanced Structural Adjustment Facility Trust.

6. (a) Subject to the other provisions of this Instrument, the Fund shall repay the principal amount of the deposit from the proceeds of the investment five years after the date of the deposit.

(b) If the repayment date or an interest payment date does not fall on a business day either of the Fund or of the place where the payment is to be made, the payment shall be made on the preceding business day of both the Fund and the place of payment.

7. (a) Payments by the Fund of principal and interest shall be made in U.S. dollars, or in other media as may be agreed between the Bank and the Fund.

(b) Payments in U.S. dollars shall be made by crediting the amount due to the account of Banco Central de Chile at the Federal Reserve Bank of New York, New York. Payments in SDRs shall be made by crediting the amount due to Chile’s holdings account in the Special Drawing Rights Department. Payments in other currencies shall be made to accounts specified by the Bank.

8. Unless otherwise agreed between the Bank and the Fund, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies, in terms of the SDR, established by the Fund for the third business day of the Fund before the value date of the transfer or payment.

9. The Bank intends to maintain the deposit outstanding through its maturity. However, if the Bank represents that because of Chile’s balance of payments and reserve position there is a need to encash all or part of the outstanding deposit, and the Fund, having given this representation the overwhelming benefit of any doubt, agrees, the deposit may be encashed in whole or in part in advance of maturity. The Bank agrees to restore (i.e. within the maturity of the original deposit) the deposit as soon as practicable in light of developments in Chile’s balance of payments and reserve position.

10. The Fund may repay the principal amount of the deposit in part or in full at any time in advance of maturity.

11. (a) The assets and property of the account shall be kept separate from the assets and property of all other accounts of, or administered by, the Fund. The assets and property held in such other accounts shall not be used to discharge or meet the liabilities, obligations or losses of the Fund incurred in the administration of the account; nor shall the assets and property of the account be used to discharge or meet the liabilities, obligations or losses incurred by the Fund in the administration of such other accounts.

(b) Subject to the provisions of this Instrument, the Fund, in administering the account, shall apply mutatis mutandis the same rules and procedures as apply to operations of the General Resources Account of the Fund.

(c) No charge shall be levied on the Bank for the services rendered by the Fund in the administration, operation, and termination of this account.

12. (a) The Fund shall maintain separate financial records and prepare separate financial statements for the account.

(b) The Audit Committee selected under Section 20 of the Fund’s By-Laws shall audit the operations and transactions conducted through the account. The audit shall relate to the financial year of the Fund.

(c) The Fund shall report on the assets and property and on the operations of the account in the Annual Report of the Executive Board to the Board of Governors and shall include in that Annual Report the report of the Audit Committee on the account.

13. The account shall be terminated upon completion of its operation. Once the obligation to repay the deposit has been discharged and the final payment of interest has been made, any surplus remaining in the account shall be transferred to the Subsidy Account of the Enhanced Structural Adjustment Facility Trust.

14. Any question arising hereunder shall be settled by mutual agreement between the Bank and the Fund.

Annex II to EBS/94/166

August __, 1994

Dear Mr. Zahler,

I am delighted to acknowledge and thank you for your letter of August 18, 1994 proposing to make a deposit by the Banco Central de Chile as fiscal agent for the Republic of Chile, in an Administered Account Chile to be established by the Fund, for the benefit of the Subsidy Account of the Enhanced Structural Adjustment Facility Trust. I have been authorized to accept your proposal for the bank’s deposit, and I am pleased to inform you that the Executive Board has adopted the Instrument for an Administered Account Chile as set out in the attachment to your letter.

Please let me express my deep appreciation, and that of the Fund’s membership, for the generous support Chile is providing for the extended and enlarged ESAF.

Sincerely,

Michel Camdessus

Mr. Roberto Zahler

President

Banco Central de Chile

Santiago

Chile

Bank Indonesia

1. Pursuant to Article V, Section 2(b), at the request of Bank Indonesia (the “Bank”) as set forth in its letter dated June 14, 1994 (Annex I), the Fund adopts the Instrument to establish an account for administration by the Fund of the deposit to be provided by the Bank on the terms and conditions set forth in the Instrument that is annexed to this decision (Attachment to Annex I).

2. The provisions of the Instrument may be amended only by a decision of the Fund and with the concurrence of the Bank.

3. Pursuant to Article V, Section 2(b), the Managing Director is authorized to accept the proposal by the Bank (Annex II) to make a deposit with the Administered Account in the equivalent of SDR 25 million. The deposit shall be administered in accordance with the provisions of the Instrument adopted under paragraph 1 of this decision. The agreement between the Fund and the Bank on the deposit shall enter into effect on the date the Fund accepts the proposal by the Bank for a deposit with an Administered Account.*

Decision No 10718-(94/56) ESAF

June 23, 1994

Annex I

Jakarta, June 14, 1994

Mr. Michel Camdessus

Managing Director

International Monetary Fund

700 19th Street, N.W.

Washington, D.C. 20431

U.S.A.

Dear Mr. Camdessus,

Bank Indonesia (the “Bank”) proposes to deposit in an account to be established with the International Monetary Fund for the administration of the deposited resources in accordance with Article V, Section 2(b) of the Fund’s Articles of Agreement an amount equivalent to SDR 25 million on a value date to be agreed between the Bank and the Fund, but in any case not later than June 30, 1994. It is also proposed that the deposit and its administration be governed by the provisions of the attached Instrument which is subject to the approval of the Executive Board of the Fund.

If the foregoing proposal is acceptable to the Fund, this communication and your duly authenticated reply accepting this proposal shall constitute an agreement between the Fund and the Bank. It shall enter into effect on the date the Fund accepts the proposal.

The Bank requests the Fund to open an account for the administration of the deposit in accordance with Article V, Section 2(b) of the Fund’s Articles of Agreement.

Sincerely,

Governor

Bank Indonesia

/s/

J. Soedradjad Djiwandono

Annex I Attachment

Proposed Instrument for An Administered Account Indonesia

To help fulfill its purposes, the International Monetary Fund (hereinafter called the Fund) has adopted this Instrument to establish an account in accordance with Article V, Section 2(b) (“Administered Account Indonesia”) at the request of Bank Indonesia (the “Bank”) which shall be governed by, and administered in accordance with, the terms and conditions of this Instrument:

1. The Managing Director is hereby authorized to establish with the Fund an account for the administration of resources deposited in that account by the Bank.

2. The amount of the deposit shall be denominated in SDRs. Unless otherwise agreed between the Fund and the Bank, the amount shall be paid by the Bank by transfer of an equivalent amount of U.S. dollars to an account designated by the Fund.

3. The resources of the account shall be invested by the Fund. The Managing Director is authorized (i) to make all arrangements, including establishment of accounts in the name of the International Monetary Fund, with such depositories of the Fund as may be necessary to carry out the operations of the account, and (ii) to take all measures necessary to implement the provisions of this Instrument.

4. (a) The deposit shall bear interest at an annual rate equivalent to the interest rate for SDR-denominated deposits that is obtained by the Fund (net of any costs) for the investment of the proceeds of this deposit, less two percent per annum, subject to the condition that, if the interest rate obtained by the Fund is less than two percent per annum, the deposit shall bear zero interest. The Fund shall certify annually to the Bank the amount of interest obtained on the investment of the proceeds of the deposit, and such certification shall be final.

(b) The amount of interest payable in respect of the amount of the deposit outstanding shall be calculated on the basis of the actual number of days that interest has accrued and a 365-day year and shall be paid from the proceeds of the investment on each anniversary of the deposit or on the date the principal amount is repaid, whichever is earlier.

5. Investment income of SDR 0.5 million per annum on the deposit of SDR 25 million or such lesser amount as available in accordance with paragraph 4.a. shall be transferred promptly as received to the Subsidy Account of the Enhanced Structural Adjustment Facility.

6. (a) Subject to the other provisions of this Instrument, the Fund shall repay the principal amount of the deposit from the proceeds of the investment ten years after the date of the deposit.

(b) If the repayment date or an interest payment date does not fall on a business day either of the Fund or of the place where the payment is to be made, the payment shall be made on the preceding business day of both the Fund and the place of payment.

7. (a) Payments by the Fund of principal and interest shall be made in U.S. dollars, or in other media as may be agreed between the Bank and the Fund.

(b) Payments in U.S. dollars shall be made by crediting the amount due to the account of Bank Indonesia at the Federal Reserve Bank of New York, New York. Payments in SDRs shall be made by crediting the amount due to Indonesia’s holdings account in the Special Drawing Rights Department. Payments in other currencies shall be made to accounts specified by the Bank.

8. Unless otherwise agreed between the Bank and the Fund, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies, in terms of the SDR, established by the Fund for the third business day of the Fund before the value date of the transfer or payment.

9. The Bank intends to maintain the deposit outstanding through its maturity. However, if the Bank represents that because of Indonesia’s balance of payments and reserve position there is a need to encash all or part of the outstanding deposit, and the Fund, having given this representation the overwhelming benefit of any doubt, agrees, the deposit may be encashed in whole or in part in advance of maturity. The Bank agrees to restore the deposit as soon as practicable in light of developments in Indonesia’s balance of payments and reserve position.

10. The Fund may repay the principal amount of the deposit in part or in full at any time in advance of maturity.

11. (a) The assets and property of the account shall be kept separate from the assets and property of all other accounts of, or administered by, the Fund. The assets and property held in such other accounts shall not be used to discharge or meet the liabilities, obligations or losses of the Fund incurred in the administration of the account; nor shall the assets and property of the account be used to discharge or meet the liabilities, obligations or losses incurred by the Fund in the administration of such other accounts.

(b) Subject to the provisions of this Instrument, the Fund, in administering the account, shall apply mutatis mutandis the same rules and procedures as apply to operations of the General Resources Account of the Fund.

(c) No charge shall be levied on the Bank for the services rendered by the Fund in the administration, operation, and termination of this account.

12. (a) The Fund shall maintain separate financial records and prepare separate financial statements for the account.

(b) The Audit Committee selected under Section 20 of the Fund’s By-Laws shall audit the operations and transactions conducted through the account. The audit shall relate to the financial year of the Fund.

(c) The Fund shall report on the assets and property and on the operations of the account in the Annual Report of the Executive Board to the Board of Governors and shall include in that Annual Report the report of the Audit Committee on the account.

13. The account shall be terminated upon completion of its operation. Once the obligation to repay the deposit has been discharged and the final payment of interest has been made, any surplus remaining in the account shall be transferred to the Subsidy Account of the Enhanced Structural Adjustment Facility Trust.

14. Any question arising hereunder shall be settled by mutual agreement between the Bank and the Fund.

Annex II

June, 1994

Dear Mr. Djiwandono,

I am delighted to acknowledge and thank you for your letter of June 14, 1994 proposing to make a deposit by the Bank Indonesia in an Administered Account Indonesia to be established by the Fund, for the benefit of the Subsidy Account of the Enhanced Structural Adjustment Facility Trust. I have been authorized to accept your proposal for the Bank’s deposit, and I am pleased to inform you that the Executive Board has adopted the Instrument for an Administered Account Indonesia as set out in the attachment to your letter.

Please let me express my deep appreciation, and that of the Fund’s membership, for the generous support the Bank Indonesia is providing for the extended and enlarged ESAF.

Sincerely,

Michel Camdessus

Mr. J. Soedradjad Djiwandono

Governor

Bank Indonesia

P.O. Box 1035

Jakarta 10010

Indonesia

Central Bank of the Islamic Republic of Iran

1. Pursuant to Article V, Section 2(b), at the request of the Central Bank of the Islamic Republic of Iran (the “Bank”) as set forth in its letter dated April 7, 1994 (Annex I), the Fund adopts the Instrument to establish an account for the administration by the Fund of the deposits to be provided by the Bank on the terms and conditions set forth in the Instrument that is annexed to this decision (Attachment to Annex I).

2. The provisions of the Instrument may be amended only by a decision of the Fund and with the concurrence of the Bank.

3. The Managing Director is authorized to accept the proposal by the Bank to make to the Account five annual deposits, each equivalent to SDR 1 million on a value date to be agreed between the Fund and the Bank, with the first deposit to be made not later than June 6, 1994 (Annex II). The deposit shall be administered in accordance with the provisions of the Instrument adopted under paragraph 1 of this decision. The agreement between the Fund and the Bank shall enter into effect on the date the Fund acknowledges receipt of the communication by which the Bank notifies the Fund of the completion of all internal procedures, as required.*

Decision No. 10687-(94/47) ESAF

May 24, 1994

Annex I

Tehran, April 7, 1994

Dear Mr Camdessus,

The Central Bank of the Islamic Republic of Iran (the “Bank”) proposes to make deposits in an account to be established with the International Monetary Fund for the administration of the deposited resources in accordance with Article V, Section 2(b) of the Fund’s Articles of Agreement. The Bank proposes to make 5 annual deposits each equivalent to SDR 1 million on value dates to be agreed between the Bank and the Fund, but in any case the first annual deposit is to be made not later than (April 30), 1994. It is also proposed that the deposits and their administration be governed by the provisions of the attached Instrument, which is subject to the approval of the Executive Board of the Fund.

The Bank shall have the right to suspend further deposits (i) if interest is not paid to the Bank within a period of ten days after its due date, and pending consultation with the Bank on the matter, with the understanding that the Trustee may obtain further deposits once any arrears to the Bank have been discharged; and (ii) if the Bank represents that Iran needs such a suspension because of its balance of payments and reserve position, and the Trustee, having given such representation the overwhelming benefit of any doubt, agrees; the Bank will resume making the scheduled deposit(s) as soon as practicable in light of developments in Iran’s balance of payments and reserve position.

If the foregoing proposal is acceptable to the Fund, this communication and your duly authenticated reply accepting this proposal shall constitute an agreement between the Fund and the Bank. It shall enter into effect on the date the Fund acknowledges receipt of the communication by which the Central Bank of the Islamic Republic of Iran notifies the Fund of the completion of all internal procedures, as required.

The Bank requests the Fund to open an account for the administration of the deposits in accordance with Article V, Section 2(b) of the Fund’s Articles of Agreement.

Sincerely,

/s/

S.M.H. Adeli

Mr. Michel Camdessus

Managing Director

International Monetary Fund

700 19th Street, N.W.

Washington, D.C. 20431

U.S.A.

Annex I Attachment

Proposed Instrument for An Administered Account Iran

To help fulfill its purposes, the International Monetary Fund (hereinafter called the Fund) has adopted this Instrument to establish an account in accordance with Article V, Section 2(b) (“Administered Account Iran”) at the request of The Central Bank of the Islamic Republic of Iran (the “Bank”) which shall be governed by, and administered in accordance with, the terms and conditions of this Instrument:

1. The Managing Director is hereby authorized to establish with the Fund an account for the administration of resources deposited in that account by the Bank.

2. Amounts to be deposited shall be denominated in SDRs. Unless otherwise agreed between the Fund and the Bank, each deposit shall be paid by the Bank by transfer of an equivalent amount of U.S. dollars to an account designated by the Fund.

3. The resources of the account shall be invested by the Fund. The Managing Director is authorized (i) to make all arrangements, including establishment of accounts in the name of the International Monetary Fund, with such depositories of the Fund as may be necessary to carry out the operations of the account, and (ii) to take all measures necessary to implement the provisions of this Instrument.

4. (a) Each deposit shall bear interest at an annual rate of one-half of 1 percent per annum.

(b) The amount of interest payable in respect of the amount of each deposit outstanding shall be calculated on the basis of the actual number of days that interest has accrued and a 365-day year and shall be paid from the proceeds of the investment on each anniversary of the deposit or on the date the principal amount is repaid, whichever is earlier.

5. The difference between the interest earned by the Fund on invested amounts and the interest due to the Bank under paragraph 4, net of any cost, shall be transferred promptly to the subsidy account of the Enhanced Structural Adjustment Facility Trust.

6. (a) Subject to the other provisions of this Instrument, the Fund shall repay from the proceeds of the investment the principal amount of all the deposits together at the end of ten years after the date of the first deposit.

(b) If the repayment date or an interest payment date does not fall on a business day either of the Fund or of the place where the payment is to be made, the payment shall be made on the preceding business day of both the Fund and the place of payment.

7. (a) Payments by the Fund of principal and interest shall be made in U.S. dollars, or in other media as may be agreed between the Bank and the Fund.

(b) Payments in U.S. dollars shall be made by crediting the amount due to the account of the Central Bank of the Islamic Republic of Iran at the Federal Reserve Bank of New York, New York. Payments in SDRs shall be made by crediting the amount due to Iran’s holdings account in the Special Drawing Rights Department. Payments in other currencies shall be made by crediting the amount due to accounts designated by the Bank.

8. Unless otherwise agreed between the Bank and the Fund, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies, in terms of the SDR, established by the Fund for the third business day of the Fund before the value date of the transfer or payment.

9. The Bank intends to maintain each deposit outstanding through its maturity. However, if the Bank represents that because of Iran’s balance of payments and reserve position there is a need to encash all or part of the outstanding deposits, and the Fund, having given this representation the overwhelming benefit of any doubt, agrees, the deposits may be encashed in whole or in part in advance of maturity. The Bank agrees to restore the deposits as soon as practicable in light of developments in Iran’s balance of payments and reserve position.

10. The Fund may repay the principal amount of the deposits in part or in full at any time in advance of maturity.

11. (a) The assets and property of the account shall be kept separate from the assets and property of all other accounts of, or administered by, the Fund. The assets and property held in such other accounts shall not be used to discharge or meet the liabilities, obligations or losses of the Fund incurred in the administration of the account; nor shall the assets and property of the account be used to discharge or meet the liabilities, obligations, or losses incurred by the Fund in the administration of such other accounts.

(b) Subject to the provisions of this Instrument, the Fund, in administering the account, shall apply mutatis mutandis the same rules and procedures as apply to operations of the General Resources Account of the Fund.

(c) No charge shall be levied on the Bank for the services rendered by the Fund in the administration, operation, and termination of this account.

12. (a) The Fund shall maintain separate financial records and prepare separate financial statements for the account.

(b) The Audit Committee selected under Section 20 of the Fund’s By-Laws shall audit the operations and transactions conducted through the account. The audit shall relate to the financial year of the Fund.

(c) The Fund shall report on the assets and property and on the operations of the account in the Annual Report of the Executive Board to the Board of Governors and shall include in that Annual Report the report of the Audit Committee on the account.

13. The account shall be terminated upon completion of its operation. Once the obligation to repay all deposits has been discharged and the final payment of interest has been made, any surplus remaining in the account shall be transferred to the Subsidy Account of the Enhanced Structural Adjustment Facility Trust.

14. Any question arising hereunder shall be settled by mutual agreement between the Bank and the Fund.

Annex II

May __, 1994

Dear Dr. Adeli,

I am delighted to acknowledge and thank you for your letter of April 7, 1994 proposing to make deposits by the Central Bank of the Islamic Republic of Iran in an Administered Account Iran to be established by the Fund, for the benefit of the Subsidy Account of the Enhanced Structural Adjustment Facility Trust. I have been authorized to accept your proposal for the Bank’s deposits, and I am pleased to inform you that the Executive Board has adopted the Instrument for an Administered Account Iran as set out in the attachment to your letter. Please let me express my deep appreciation, and that of the Fund’s membership, for the generous support the Central Bank of the Islamic Republic of Iran is providing for the extended and enlarged ESAF.

Sincerely,

Michel Camdessus

H.E. Sayyed Mohammad Hossein Adeli

Governor

Central Bank of the Islamic Republic of Iran

P.O. Box 11365/8531

Ferdowsi Avenue

Teheran

Islamic Republic of Iran

Banco de Portugal

1. Pursuant to Article V, Section 2(b), at the request of the Banco de Portugal (the “Bank”) as set forth in its letter dated April 21, 1994 (Annex I), the Fund adopts the Instrument to establish an account for the administration by the Fund of the deposits to be provided by the Bank on the terms and conditions set forth in the Instrument that is annexed to this decision (Attachment to Annex I).

2. The provisions of the Instrument may be amended only by a decision of the Fund and with the concurrence of the Bank.

3. The Managing Director is authorized to accept the proposal by the Bank to make to the Account six annual deposits, each equivalent to SDR 2.191 million on a value date to be agreed between the Fund and the Bank, with the first deposit to be made not later than May 16, 1994 (Annex II). The deposits shall be administered in accordance with the provisions of the Instrument adopted under Paragraph 1 of this decision. The agreement between the Fund and the Bank shall enter into effect on the date the Fund acknowledges receipt of the communication by which the Bank notifies the Fund of the completion of all internal procedures, as required.*

Decision No. 10675-(94/41) ESAF

May 5, 1994

Annex I

Lisbon, April 21, 1994

Dear Mr. Camdessus,

Banco de Portugal (the “Bank”) proposes to deposit in an account to be established with the International Monetary Fund for the administration of the deposited resources in accordance with Article V, Section 2(b) of the Fund’s Articles of Agreement. The Bank proposes to make six annual deposits each equivalent to SDR 2.191 million on value dates to be agreed between the Bank and the Fund, but in any case the first deposit is to be made not later than May 16, 1994. It is also proposed that the deposit and its administration be governed by the provisions of the attached Instrument, which is subject to the approval of the Executive Board of the Fund.

The Bank shall have the right to suspend making further deposits (i) if interest is not paid to the Bank within a period of ten days after its due date, and pending consultation with the Bank on the matter, with the understanding that the Trustee may obtain further deposits once any arrears to the Bank have been discharged; and (ii) if the Bank represents that Portugal needs such a suspension because of its balance of payments and reserve position, and the Trustee, having given such representation the overwhelming benefit of any doubt, agrees; the Bank will resume making the scheduled deposits as soon as practicable in light of developments in Portugal’s balance of payments and reserve position.

If the foregoing proposal is acceptable to the Fund, this communication and your duly authenticated reply accepting this proposal shall constitute an agreement between the Fund and the Bank. It shall enter into effect on the date the Fund acknowledges receipt of the communication by which the Banco de Portugal notifies the Fund of the completion of all internal procedures, as required.

The Bank requests the Fund to open an account for the administration of the deposit in accordance with Article V, Section 2(b) of the Fund’s Articles of Agreement.

With best regards,

Sincerely,

/s/

Luis Miguel Beleza

Mr. Michel Camdessus

Managing Director

International Monetary Fund

700 19th Street, N.W.

Washington, D.C. 20431

U.S.A.

Annex I Attachment

Proposed Instrument for an Administered Account Portugal

To help fulfill its purposes, the International Monetary Fund (hereinafter called the Fund) has adopted this Instrument to establish an account in accordance with Article V, Section 2(b) (“Administered Account Portugal”) at the request of Banco de Portugal (the “Bank”) which shall be governed by, and administered in accordance with, the terms and conditions of this Instrument.

1. The Managing Director is hereby authorized to establish with the Fund an account for the administration of resources deposited in that account by the Bank.

2. Amounts to be deposited shall be denominated in SDRs. Unless otherwise agreed between the Fund and the Bank, each deposit shall be paid by the Bank by transfer of an equivalent amount of U.S. dollars to an account designated by the Fund.

3. The resources of the account shall be invested by the Fund. The Managing Director is authorized (i) to make all arrangements, including establishment of accounts in the name of the International Monetary Fund, with such depositories of the Fund as may be necessary to carry out the operations of the account, and (ii) to take all measures necessary to implement the provisions of this Instrument.

4. (a) Each deposit shall bear interest at an annual rate of one-half of 1 percent per annum.

(b) The amount of interest payable in respect of each deposit outstanding shall be calculated on the basis of the actual number of days that interest has accrued and a 365-day year and shall be paid from the proceeds of the deposit on each anniversary of the deposit or on a date of repayment of principal, whichever is earlier.

5. The difference between the interest earned by the Fund on invested amounts net of any cost, and the interest due to the Bank under paragraph 4, shall be transferred promptly to the subsidy account of the Enhanced Structural Adjustment Facility Trust.

6. (a) Subject to the other provisions of this Instrument, the Fund shall repay from the proceeds of each deposit the principal amount of each deposit in five equal annual amounts beginning six years and ending ten years after the date on which the deposit was made.

(b) If the repayment date or an interest payment date does not fall on a business day either of the Fund or of the place where the payment is to be made, the payment shall be made on the preceding business day of both the Fund and the place of payment.

7. (a) Payments by the Fund of principal and interest shall be made in U.S. dollars, or in other media as may be agreed between the Bank and the Fund.

(b) Payments in U.S. dollars shall be made by crediting the amount due to the account of Banco de Portugal at the Federal Reserve Bank of New York, New York. Payments in SDRs shall be made by crediting the amount due to Portugal’s holdings account in the Special Drawing Rights Department. Payments in other currencies shall be made to accounts specified by the Bank.

8. Unless otherwise agreed between the Bank and the Fund, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies, in terms of the SDR, established by the Fund for the third business day of the Fund before the value date of the transfer or payment.

9. The Bank intends to maintain each deposit outstanding through its maturity. However, if the Bank represents that because of Portugal’s balance of payments and reserve position there is a need to encash all or part of the outstanding deposits, and the Fund, having given this representation the overwhelming benefit of any doubt, agrees, the deposits may be encashed in whole or in part in advance of maturity. The Bank agrees to restore the deposits as soon as practicable in light of developments in Portugal’s balance of payments and reserve position.

10. The Fund may repay the principal amount of the deposits in part or in full at any time in advance of maturity.

11. (a) The assets and property of the account shall be kept separate from the assets and property of all other accounts of, or administered by, the Fund. The assets and property held in such other accounts shall not be used to discharge or meet the liabilities, obligations or losses of the Fund incurred in the administration of the account; nor shall the assets and property of the account be used to discharge or meet the liabilities, obligations or losses incurred by the Fund in the administration of such other accounts.

(b) Subject to the provisions of this Instrument, the Fund, in administering the account, shall apply mutatis mutandis the same rules and procedures as apply to operations of the General Resources Account of the Fund.

(c) No charge shall be levied on the Bank for the services rendered by the Fund in the administration, operation, and termination of this account.

12. (a) The Fund shall maintain separate financial records and prepare separate financial statements for the account.

(b) The Audit Committee selected under Section 20 of the Fund’s By-Laws shall audit the operations and transactions conducted through the account. The audit shall relate to the financial year of the Fund.

(c) The Fund shall report on the assets and property and on the operations of the account in the Annual Report of the Executive Board to the Board of Governors and shall include in that Annual Report the report of the Audit Committee on the account.

13. The account shall be terminated upon completion of its operation. Once the obligation to repay all deposits has been discharged and the final payment of interest has been made, any surplus remaining in the account shall be transferred to the Subsidy Account of the Enhanced Structural Adjustment Facility Trust.

14. Any question arising hereunder shall be settled by mutual agreement between the Bank and the Fund.

The agreement entered into effect on April 22, 1994.

The agreement entered into effect on June 30, 1994.

The agreement entered into effect on September 28, 1994.

The agreement entered into effect on June 23, 1994.

The agreement entered into effect on June 6, 1994.

The agreement entered into effect on May 6, 1994.

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