Selected Decisions, 16th Edition
Chapter

Article V, Section 5

Author(s):
International Monetary Fund
Published Date:
June 1991
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Ineligibility to Use the Fund’s General Resources

Use of Fund’s Resources: Limitation and Ineligibility Under Article V, Section 5

The Fund has, in the case of a member which has had a previous exchange transaction with the Fund, power to declare the member ineligible or limit its use of the resources of the Fund if the member is, in the opinion of the Fund, using the resources of the Fund in a manner contrary to the purposes of the Fund.

Decision No. 284-3

March 10, 1948

Use of Fund’s Resources: Postponement and Limitation Under Article V, Section 5

If the Fund receives a request from a member to purchase exchange and either, (1) the Fund is considering sending the member a report pursuant to Article V, Section 5 or (2) the Fund finds when the request is before it that action pursuant to that Section should be considered, then the Fund has the authority, pursuant to Article V, Section 5 of the Fund Agreement, to postpone the transfer as permitted under the provisions of Rules and Regulations G-3* for such time as may reasonably be necessary to decide the question of applying Article V, Section 5, and, if it decides to apply it, to prepare and send to the member a report and subject its use of the Fund’s resources to limitations. Under such circumstances the limitations imposed will apply to the pending request for the purchase of exchange as well as to future requests.

Decision No. 286-1

March 15, 1948

Corresponds to Rule G-4 of the Rules and Regulations adopted April 29, 1981 effective May 1, 1981.

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