Selected Decisions Annex (14th Ed)
Chapter

Policy on Enlarged Access: Borrowing Agreement with the Saudi Arabian Monetary Agency—Supplementary Agreement*

Author(s):
International Monetary Fund
Published Date:
April 1989
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1. Pursuant to Article VII, Section 1 of the Articles, the Executive Board approves the following agreements and authorizes the Managing Director to take such action as is necessary to conclude and implement them:

(d) a Supplementary Agreement with the Saudi Arabian Monetary Agency (SAMA), in terms of the draft set out in the Attachment [below], supplementing and amending the Borrowing Agreement with SAMA effective May 7, 1981.

2. With respect to promissory Notes of the Fund that may be requested, pursuant to the provisions of the Borrowing Agreement with SAMA, in exchange for loans from the additional amount of SDR 3 billion specified in the Supplementary Agreement referred to in paragraph l(d)above, the Managing Director is authorized to designate paying agents and agents for service of process, to arrange for the issue and delivery of such Notes substantially in the form and on the terms and conditions provided in that Agreement and the Supplementary Agreement, and to arrange the issue and delivery of Notes in exchange for or replacement of Notes previously issued. All such Notes and coupons attached thereto shall be executed in the manner prescribed in paragraph 4 of Decision No. 6843-(81/75), adopted May 6, 1981.

Decision No. 7677-(84/64) April 24, 1984

Attachment

Letter from the Managing Director of the Fund to the Acting Governor of the Saudi Arabian Monetary Agency

April 24, 1984

Your Excellency:

I refer to the agreement of May 7, 1981 (the Borrowing Agreement) between the Saudi Arabian Monetary Agency (SAMA) and the International Monetary Fund (the Fund), under which SAMA has agreed to make loans to the Fund to assist in the financing of enlarged access by members to the resources of the Fund. Pursuant to Executive Board Decision No. 7677-(84/64), adopted on April 24, 1984, I have been authorized to propose on behalf of the Fund that the Borrowing Agreement be supplemented and amended as follows:

1. The maximum aggregate amount of SAMA’s commitment under paragraph 1(a) of the Borrowing Agreement shall be increased by an amount equivalent to SDR 3 billion, to a cumulative total equivalent to SDR 11 billion.

2. Except as provided in this Supplementary Agreement, all the provisions of the Borrowing Agreement, other than those provisions which by their terms have already expired, shall apply to the additional amount and to calls on such amount, loans made in response to such calls (hereinafter called Third Tranche loans), and Notes that may be issued in respect of such loans.

3. (a) The Fund may call on the additional amount only after the amount of SDR 8 billion originally committed under the Borrowing Agreement has been fully called, provided that (a) no call shall be made on the additional amount prior to January 1, 1985 and (b) the aggregate amount of such calls made prior to January 1, 1986 shall not exceed the equivalent of SDR 1. 5 billion.

(b) The Fund agrees that, when effecting an exchange pursuant to the last sentence of paragraph 3(a) of the Borrowing Agreement, SAMA may elect to exchange riyals for freely usable currencies other than U.S. dollars, in accordance with the arrangements set forth in the communication from SAMA to the Fund dated August 12, 1982.

4. (a) Notwithstanding the second sentence of paragraph 4(a) of the Borrowing Agreement and the provisions of Annex A thereto, the interest rate applicable to each Third Tranche loan during each interest period shall, at the option of SAMA, be computed either (i) in the manner set forth in Annex I-A to this Supplementary Agreement, or (ii) in the manner set forth in Annex II-A to this Supplementary Agreement. SAMA shall exercise its option, by notice to the Fund, not later than fifteen days before the date the first Third Tranche loan is to be made. Failing such notice, the computation shall be made as specified in (i) above.

(b) Notwithstanding paragraph 5 of the Borrowing Agreement, each Third Tranche loan shall mature and be repaid in a single installment on the last day of the period of 30 months following the date the loan was made. If this maturity date does not fall on a banking day, the loan shall mature and be repaid on the banking day immediately preceding such date.

(c) The amounts of SDR 4 billion and SDR 2 billion specified in paragraphs 10(c) and 11(a) of the Borrowing Agreement shall be applicable only to outstanding loans other than Third Tranche loans. In the case of Third Tranche loans, (i) the maximum amount of such loans payable by the Fund immediately pursuant to paragraph 10(c) shall be equivalent to SDR 1.5 billion; and (ii) the amount of the quarterly installments payable by the Fund in respect of such loans pursuant to paragraph 11(a) shall be equivalent to SDR 750 million.

5. In the event that SAMA exercises its right to obtain Bearer Notes, pursuant to paragraph 15 of the Borrowing Agreement, in exchange for all or any part of any outstanding Third Tranche loan, the form of such Notes shall be as set forth in Annex B to the Borrowing Agreement, except that (a) the Executive Board decision referred to in the Notes shall be Decision No. 7677-(84/64); (b) if the method of computing interest on Third Tranche loans is that specified in Annex I-A to this Supplementary Agreement, paragraph 2 of the Notes shall be substantially in the terms set forth in Annex I-B; and (c) if the method of computing such interest is that specified in Annex II-A to this Supplementary Agreement, paragraph 2 of the Notes shall be substantially in the terms set forth in Annex II-B.

6. If during the period of one year following the effective date of this Supplementary Agreement the Fund enters into a borrowing arrangement with any other lender that is a member of the Fund or the central bank of a member on financial terms that can reasonably be considered by either SAMA or the Fund to be more favorable to the lender than those provided herein, SAMA and the Fund shall, at the request of SAMA, consult with a view to reaching an agreement whereby comparable financial terms are applied to Third Tranche loans and, to the extent appropriate, to any Notes that may subsequently be delivered to SAMA in exchange for such loans. If no such agreement has been reached within 30 days from the date of SAMA’s request, the matter shall be settled by arbitration in accordance with paragraph 18 of the Borrowing Agreement.

This communication and its Annexes, and your reply indicating that the foregoing proposal is acceptable to SAMA, shall constitute an agreement between SAMA and the Fund which shall become effective on the date the Fund acknowledges receipt of your reply, and the Borrowing Agreement shall be supplemented and amended accordingly with effect from that date.

Very truly yours,

/s/

J. DE LAROSIÈRE

Managing Director

His Excellency

Hamad Al-Sayari

Acting Governor

Saudi Arabian

Monetary Agency

Riyadh, Saudi Arabia

Annexes

I-A. Computation of Interest Rate on Third Tranche Loans on Basis of Eurocurrency Rates

1. The annual interest rate applicable to the first interest period of each Third Tranche loan shall be computed as of the third business day of the Fund before the date the loan is made, and that applicable to each subsequent interest period shall be computed as of the third business day of the Fund before the interest payment date immediately preceding the commencement of such period. The day as of which the computation is made is hereinafter referred to as the interest computation date.

2. (a) The computation shall be made by the Fund using the interest rates notified to the Fund for this purpose by the Bank of England or the Banque de France as provided in (b) below or otherwise determined as provided in (c) below.

(b) For each currency used by the Fund in valuing the special drawing right on the interest computation date, the Bank of England shall notify the Fund of the interest rate which it determines to be representative of six-month Eurocurrency offered rates in that currency quoted to prime banks in the London interbank market at or about 11:00 a.m., London time, on that date. If the London market is closed on the interest computation date, the determination and notification shall be made by the Banque de France on the basis of corresponding quotations in the Paris interbank market at or about 11:00 a.m., Paris time, on that date, and if both markets are closed on the interest computation date the determination and notification shall be made by the Bank of England on the basis of corresponding quotations in the London interbank market at or about 11:00 a.m., London time, on the last day preceding the interest computation date on which the London market was open, provided that this day is not more than seven days prior to the interest computation date. If on the specified day quotations are not available in the applicable market for a currency used in valuing the special drawing right or, in the opinion of the Bank of England or the Banque de France as the case may be, the available quotations in that currency do not provide a reasonable basis for determining an interest rate to be notified to the Fund, the interest rate for that currency shall be notified by the Bank of England on the basis of quotations on the last preceding day for which it considers a determination can reasonably be made, provided that this day is not more than seven days prior to the interest computation date.

(c) If an interest rate for a currency cannot be notified to the Fund on the basis specified in (b), SAMA and the Fund in consultation with the Bank of England shall seek to reach agreement on a substitute rate. In the absence of agreement otherwise within thirty days after the interest computation date, the substitute rate shall be the rate or yield for that currency used by the Fund pursuant to its Rules in computing the interest payable on holdings of special drawing rights for the period that includes the interest computation date.

3. Each interest rate notified or otherwise determined in accordance with paragraph 2 shall be multiplied by the percentage weight of the corresponding currency in the valuation of the special drawing right on the interest computation date, such percentage weight being calculated by using the same amounts and exchange rates for each currency as are used by the Fund when calculating the value of the special drawing right in terms of the U.S. dollar on that date. The resulting products shall be added together and the total, rounded up to the nearest one eighth of one percent, shall be the interest rate applicable to the interest period for which the computation is made.

4. Notwithstanding the foregoing,

(a) if an interest rate for a Third Tranche loan has been computed using for a currency a substitute rate determined pursuant to paragraph 2(c), and prior to the expiration of the interest period to which that computation relates, the Bank of England notifies the Fund of a rate (the “notified rate”) which it has determined to be representative of six-month Eurocurrency offered rates quoted in that currency to prime banks in the London interbank market at or about 11:00 a.m., London time, on a date (the “adjustment date”) subsequent to the interest computation date, the Fund shall compute a new interest rate as of the adjustment date on the same basis in all respects as the previous computation except that the notified rate shall be used for that currency in lieu of the substitute rate, and interest on the loan shall accrue at this new rate from and including the adjustment date until the commencement of the next interest period, or until a further computation is made pursuant to this subparagraph (a);

(b) if the Fund should decide to change the method of valuation of the special drawing right, a new interest rate shall be computed for each Third Tranche loan then outstanding, on the basis of rates notified or otherwise determined in accordance with paragraph 2 for the third business day of the Fund before the change becomes effective and percentage weights calculated using the amounts and exchange rates which would have been used by the Fund in valuing the special drawing right in terms of the U.S. dollar had the change been effective on that day, and the new interest rate shall apply from and including such effective date until the commencement of the next interest period; provided that if SAMA has exercised its option under paragraph 8 of the Agreement, the former interest rate shall continue to apply to Third Tranche loans in respect of which such option has been exercised until the end of the interest period, and all subsequent interest computations on such loans shall be made on the basis of the method of valuing the special drawing right in terms of the U.S. dollar used by the Fund immediately prior to the effective date of the change.

5. The amount of interest payable in respect of each interest period shall be calculated on the basis of the actual number of days in the period and a 360 day year.

I-B. Text of Paragraph 2 of Bearer Notes if Interest on Third Tranche Loans is Computed in Accordance with Annex I-A

2. (a) During each successive interest period until payment of the principal sum of this Note has been made or duly provided for, interest shall accrue daily on the principal sum at the Combined Market Interest Rate computed by the Fund for that period. For purposes of computing interest: (i) the first interest period shall commence on the day following the date of this Note and shall end on the first interest payment date, and each subsequent interest period shall commence on the day following an interest payment date and shall end on the next succeeding interest payment date; (ii) “interest computation date,” in relation to the first interest period means a date three business days of the Fund before the date of this Note, and in relation to subsequent interest periods means a date three business days of the Fund before the interest payment date immediately preceding the commencement of such period; (iii) “reporting agency” means the official agency responsible for determining Reference Rates pursuant to (c) or (d) below, as applicable, such agency being the Bank of England when the determination is made by reference to quotations in the London interbank market and the Banque de France when the determination is made by reference to quotations in the Paris interbank market; and (iv) a “Reference Rate,” in relation to a currency, means an interest rate which the responsible reporting agency has determined to be representative of six-month Eurocurrency offered rates in that currency quoted to prime banks in the applicable interbank market at the applicable time, as specified in (c)(i), (c)(ii) or (d) below, and which the reporting agency has reported to the Fund in writing for purposes of an interest computation hereunder.

(b) The Combined Market Interest Rate shall be computed on the basis of the component currencies used by the Fund on the interest computation date in valuing the Special Drawing Right pursuant to the Articles of Agreement of the Fund, and the applicable Reference Rate for each such currency. The computation shall be made by multiplying each Reference Rate by the percentage weight of the corresponding currency in the valuation of the Special Drawing Right on the interest computation date, such percentage weight being calculated by using the same amounts and exchange rates for each currency as are used by the Fund when calculating the value of the Special Drawing Right in terms of the United States dollar on that date. The resulting products for all component currencies shall be added together and the total, rounded up to the nearest one eighth of one percent, shall be the Combined Market Interest Rate to be applied during the ensuing interest period.

(c) For each currency used by the Fund in valuing the Special Drawing Right on the interest computation date, the applicable Reference Rate shall be determined in the following manner:

(i) If the London interbank market is open on the interest computation date, the Reference Rate shall be determined by the Bank of England on the basis of the offered rates quoted in that market at or about 11:00 a.m., London time, on that date. If the London market is not open on the interest computation date, the Reference Rate shall be determined by the Banque de France on the basis of the offered rates quoted in the Paris interbank market at or about 11:00 a.m., Paris time, on that date. If neither market is open on the interest computation date, the Reference Rate shall be determined by the Bank of England on the basis of the offered rates quoted in the London interbank market at or about 11:00 a.m., London time, on the last day preceding the interest computation date on which that market was open, provided that this day is not more than seven days prior to the interest computation date.

(ii) Notwithstanding (i) above, if the reporting agency for the applicable market notifies the Fund that the relevant rate quotations are not available in that market on the specified day for a currency used in valuing the Special Drawing Right, or that in the opinion of such agency the available quotations do not provide a reasonable basis for determining a Reference Rate, the Reference Rate for the currency in question shall be determined by the Bank of England on the basis of the offered rates quoted for that currency in the London interbank market at or about 11:00 a.m., London time, on the last preceding day for which the Bank of England considers a determination can reasonably be made, provided that this day is not more than seven days prior to the interest computation date.

(d) If a Reference Rate for any currency has not been determined in accordance with (c) above and reported to the Fund, the Fund for purposes of computing the Combined Market Interest Rate for the applicable interest period shall use as a substitute the interest rate or yield (the “Alternative Rate”) for that currency which it has used pursuant to its Rules in computing the interest payable on holdings of Special Drawing Rights for the period that includes the interest computation date; provided that if prior to the expiration of such interest period the Bank of England notifies the Fund of a Reference Rate which it has determined to be representative of six-month Eurocurrency offered rates quoted in that currency to prime banks in the London interbank market at or about 11:00 a.m., London time, on a date (the “Adjustment Date”) subsequent to the interest computation date, the Fund shall compute a new Combined Market Interest Rate as of the Adjustment Date, on the same basis in all respects as the previous computation except that the new Reference Rate shall be used for that currency in lieu of the Alternative Rate. In this event, interest shall accrue at the new Combined Market Interest Rate from and including the Adjustment Date until the commencement of the next interest period, or until a further computation is made pursuant to this subparagraph (d).

(e) Notwithstanding the foregoing, if the Fund should decide to change the method of valuation of the Special Drawing Right, a new Combined Market Interest Rate shall be computed as of an interest computation date three business days of the Fund before the change becomes effective, in the manner specified in (b) and (c) or, when applicable, (d) above except that the currencies shall be those to be used by the Fund under the new method of valuation, and the percentage weights shall be calculated using the amounts and exchange rates which would have been used by the Fund in valuing the Special Drawing Right in terms of the U.S. dollar had the change been effective when the computation is made. Interest shall accrue at the previous Rate until the effective date of the change and at the new Rate from and including such effective date until the commencement of the next interest period after such effective date.

(f) The Fund shall give notice of each Combined Market Interest Rate computed hereunder, by publication in the manner specified in paragraph 8, as soon as practicable following the interest computation.

(g) The amount of interest payable in respect of each interest period shall be calculated on the basis of the actual number of days in the period and a 360-day year.

II-A. Computation of Interest on Third Tranche Loans on Basis of Official Domestic Rates

1. For purposes of computing interest payable on each Third Tranche loan (i) “interest computation date,” in relation to the first interest period under the loan, means a date three business days of the Fund before the date the loan is made, and in relation to subsequent interest periods means a date three business days of the Fund before the interest payment date immediately preceding the commencement of such period, (ii) “reporting agency” means an agency which serves as the reporting agency for a currency used in making an interest computation, as provided in paragraph three below, and (iii) a “reported yield,” in relation to a currency, means the yield applicable to that currency as provided in paragraph 3 below for the interest computation date or, if no such yield is available for that date, the yield for the next preceding day for which such yield is available, as reported to the Fund by the relevant reporting agency.

2. The Combined Market Interest Rate shall be computed by the Fund on the basis of the component currencies used by the Fund on the interest computation date in valuing the special drawing right pursuant to the Articles of Agreement of the Fund. The computation shall be made by multiplying each reported yield by the percentage weight of the corresponding currency in the valuation of the special drawing right on the interest computation date, such percentage weight being calculated by using the same amounts and exchange rates for each currency as are used by the Fund when calculating the value of the special drawing right in terms of the United States dollar on that date. The resulting products for all component currencies shall be added together and the total, rounded up to the nearest one eighth of one percent, shall be the Combined Market Interest Rate to be applied during the ensuing period.

3. (a) The Fund, after consultation with SAMA, shall arrange for the central bank or other appropriate official agency in each country whose currency is a component currency in the valuation of the special drawing right to serve as the reporting agency hereunder and to report to the Fund the yield applicable to that currency as provided in (b) and (c) below, as needed for each interest computation. Initially the Fund has arranged for the following institutions to serve as reporting agencies for the currencies indicated:

French francCaisse des Dépôts et Consignations
deutsche markDeutsche Bundesbank
Japanese yenBank of Japan
pound sterlingBank of England
U.S. dollarDepartment of the U.S. Treasury

(b) The reported yield applicable to each currency shall be the gross yield to maturity, computed by the relevant reporting agency according to established practice in the domestic market of the country of such currency on the basis set out below:

(i) for the French franc, the average yield to maturity on a representative sample of securities of major French public sector enterprises with a remaining life in the range of two to three years, based on market prices for the securities,* as calculated by the Caisse des Dépôts et Consignations;

(ii) for the deutsche mark, the yield to maturity on notes and bonds of the Federal Republic, Railways and Post Office with a remaining period to maturity of two and a half years as calculated by the Deutsche Bundesbank on the basis published in the Statistical Supplement (Series 2, Table 8D) to the Bundesbank’s Monthly Report;

(iii) for the Japanese yen, the yield to maturity of that ten-year Japanese Government bond with a remaining period to maturity closest to two and a half years, based on the closing market price officially published by the Tokyo Stock Exchange;

(iv) for the pound sterling, the calculated redemption yield on British Government securities, determined for a constant maturity of two and a half years, as calculated by the Bank of England on the basis published in its Quarterly Bulletin;

(v) for the U.S. dollar, the average of the yields to maturity on actively traded U.S. Government securities, determined for constant maturities of two years and three years, as calculated by the U.S. Treasury and presently published each week by the Federal Reserve Board in Statistical Release H. 15; and

(vi) for any other currency, the gross yield to maturity; computed by the relevant reporting agency according to established practice in the domestic market of the country of such currency, on representative issues of government securities with an average remaining period to maturity of two and a half years, or, if such securities are not available, then on the closest substitute thereto selected by such reporting agency after consultation with the Fund and SAMA.

(c) If a reporting agency notifies the Fund that the yield described in (b) applicable to its currency can no longer be reported to the Fund, or that some material change has occurred making that yield no longer appropriate for the purpose of interest computations hereunder, SAMA and the Fund in consultation with the reporting agency shall seek to reach agreement on a substitute yield. Failing such agreement the yield shall be that which the reporting agency determines to be the most appropriate substitute for the purpose, having regard to the criteria specified in subparagraph (b)(vi) above.

4. Notwithstanding the foregoing, if the Fund should decide to change the method of valuation of the special drawing right, a new Combined Market Interest Rate shall be computed as of a date three business days of the Fund before the change becomes effective, but on the basis of the currencies used by the Fund under the new method of valuation, and percentage weights calculated using, the amounts and exchange rates which would have been used by the Fund in valuing the special drawing right in terms of the U.S. dollar had the change been effective on that date, and interest shall accrue at the previous Rate until the effective date of the change and at the new Rate from and including such effective date until, the commencement of the next interest period after such effective date; provided that if SAMA has exercised its option under paragraph 8 of the Agreement, the former interest rate shall continue to apply to Third Tranche loans in respect of which the option has been exercised, and all interest computations thereafter on such loans shall be made on the basis of the method of valuing the special drawing right in terms of the United States dollar used by the Fund immediately prior to the effective date of the change leading to the exercise of the option.

II-B. Text of Paragraph 2 of Bearer Notes if Interest on Third Tranche Loans is Computed in Accordance with Annex II-A

2. (a) During each successive interest period until payment of the principal sum of this Note has been made or duly provided for, interest shall accrue daily on the principal sum at the Combined Market Interest Rate computed by the Fund for that period. For purposes of computing interest, (i) the first interest period shall commence on the day following the date of this Note and shall end on the first interest payment date, and each subsequent interest period shall commence on the day following an interest payment date and shall end on the next succeeding interest payment date; (ii) “interest computation date,” in relation to the first interest period means a date three business days of the Fund before the date of this Note, and in relation to subsequent interest periods means a date three business days of the Fund before the interest payment date immediately preceding the commencement of such period; (iii) “reporting agency” means an agency which serves as the reporting agency for a currency used in making an interest computation, as provided in (c) below; and (iv) a “reported yield,” in relation to a currency, means the yield applicable to that currency as provided in (c) below for the interest computation date or, if no such yield is available for that date, the yield for the next preceding day for which such yield is available, as reported to the Fund by the relevant reporting agency.

(b) The Combined Market Interest Rate shall be computed on the basis of the component currencies used by the Fund on the interest computation date in valuing the Special Drawing Right pursuant to the Articles of Agreement of the Fund. The computation shall be made by multiplying each reported yield by the percentage weight of the corresponding currency in the valuation of the Special Drawing Right on the interest computation date, such percentage weight being calculated by using the same amounts and exchange rates for each currency as are used by the Fund when calculating the value of the Special Drawing Right in terms of the United States dollar on that date. The resulting products for all component currencies shall be added together and the total, rounded up to the nearest one eighth of one percent, shall be the Combined Market Interest Rate to be applied during the ensuing interest period.

(c) (i) The Fund shall arrange for the central bank or other appropriate official agency in each country whose currency is a component currency in the valuation of the Special Drawing Right to serve as the reporting agency hereunder and to report to the Fund the yield applicable to that currency as provided in (ii) and (iii) below, as needed for each interest computation. Initially the Fund has arranged for the following institutions to serve as reporting agencies for the currencies indicated:

French francCaisse des Dépôts et Consignations
deutsche markDeutsche Bundesbank
Japanese yenBank of Japan
pound sterlingBank of England
U.S. dollarDepartment of the U.S. Treasury

(ii) The reported yield applicable to each currency shall be the gross yield to maturity, computed by the relevant reporting agency according to established practice in the domestic market of the country of such currency on the basis set out below: (A) for the French franc, the average yield to maturity on a representative sample of securities of major French public sector enterprises with a remaining life in the range of two to three years, based on market prices for the securities as calculated by the Caisse des Dépôts et Consignations; (B) for the deutsche mark, the yield to maturity on notes and bonds of the Federal Republic, Railways and Post Office with a remaining period to maturity of two and a half years as calculated by the Deutsche Bundesbank on the basis published in the Statistical Supplement (Series 2, Table 8D) to the Bundesbank’s Monthly Report; (C) for the Japanese yen, the yield to maturity of that ten-year Japanese Government bond with a remaining period to maturity closest to two and a half years, based on the closing market price officially published by the Tokyo Stock Exchange; (D) for the pound sterling, the calculated redemption yield on British Government securities, determined for a constant maturity of two and a half years, as calculated by the Bank of England on the basis published in its Quarterly Bulletin; (E) for the U.S. dollar, the average of the yields to maturity on actively traded U.S. Government securities, determined for constant maturities of two years and three years, as calculated by the U.S. Treasury and presently published each week by the Federal Reserve Board in Statistical Release H.15; and (F) for any other currency, the gross yield to maturity, computed by the relevant reporting agency according to established practice in the domestic market of the country of such currency, on representative issues of government securities with an average remaining period to maturity of two and a half years, or, if such securities are not available, then on the closest substitute thereto selected by such reporting agency after consultation with the Fund.

(iii) If a reporting agency notifies the Fund that the yield described above in (ii) applicable to its currency can no longer be reported to the Fund, or that some material change has occurred making that yield no longer appropriate for the purpose of interest computations hereunder, the reporting agency, after consultation with the Fund, shall determine the most appropriate substitute yield for the purpose, having regard to the criteria specified in subparagraph (ii)(F) above.

(d) Notwithstanding the foregoing, if the Fund should decide to change the method of valuation of the Special Drawing Right, a new Combined Market Interest Rate shall be computed as of an interest computation date three business days of the Fund before the change becomes effective, in the manner specified in (b) and (c) above except that the currencies shall be those to be used by the Fund under the new method of valuation, and the percentage weights shall be calculated using the amounts and exchange rates which would have been used by the Fund in valuing the Special Drawing Right in terms of the U.S. dollar had the change been effective when the computation is made. Interest shall accrue at the previous Rate until the effective date of the change and at the new Rate from and including such effective date until the commencement of the next interest period after such effective date.

(e) The Fund shall give notice of the name of any reporting agency designated pursuant to subparagraph (c)(i) above and not specifically named therein, and of each Combined Market Interest Rate computed hereunder. Each such notice shall be given by publication in the manner specified in paragraph 8, as soon as practicable following the designation or interest computation as the case may be.

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