Selected Decisions Annex (14th Ed)
Chapter

Policy on Enlarged Access: Borrowing Agreements with Saudi Arabian Monetary Agency—Amendments

Author(s):
International Monetary Fund
Published Date:
April 1989
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The Executive Board authorizes the Managing Director to propose to the Saudi Arabian Monetary Agency (SAMA) amendments to the 1981 Borrowing Agreement and the 1984 Supplementary Agreement between SAMA and the Fund, substantially in the terms set forth in the Attachment to EBS/86/250, and expresses its appreciation for the continued cooperation of the Saudi Arabian authorities with the Fund.

Decision No. 8460-(86/189) December 1, 1986

Attachment to EBS/86/250

Proposed Communication from Fund Amending the Borrowing Agreements with SAMA

1. Reference borrowing agreement of May 7, 1981 and supplementary agreement of April 30, 1984, between the Saudi Arabian Monetary Agency (SAMA) and the International Monetary Fund (the Fund) (henceforth referred to as the 1981 Borrowing Agreement and the 1984 Supplementary Agreement). Pursuant to Executive Board Decision No. 8460-(86/189), adopted December 1, 1986, I have been authorized to propose on behalf of the Fund that the 1981 Borrowing Agreement and the 1984 Supplementary Agreement be amended as follows:

A. The 1981 Borrowing Agreement

1. The period referred to in paragraph 1(A) of the 1981 Borrowing Agreement during which SAMA will stand committed to make loans to the Fund under the 1981 Borrowing Agreement, is extended from May 7, 1987 to November 6, 1987, in respect of amounts that remain undrawn on May 7, 1987, up to a maximum of SDR 500 million.

2. Each loan made under the 1981 Borrowing Agreement during the period from May 7, 1987 to November 6, 1987 shall be repaid by the Fund in four equal annual installments on May 6, in each of the years from 1991 to 1994 inclusive, except that if May 6 shall not be a banking day in any of these years, payment shall fall due and be made on the banking day immediately preceding.

B. The 1984 Supplementary Agreement

1. The period referred to in paragraph 1(A) of the 1981 Borrowing Agreement during which SAMA will stand committed to make loans to the fund under the 1984 Supplementary Agreement (referred to as Third Tranche Loans pursuant to paragraph 2 of the 1984 Supplementary Agreement) is extended from May 7, 1987 to May 6, 1989.

2. Each Third Tranche Loan made under the 1984 Supplementary Agreement during the period May 7, 1987 to May 6, 1989 shall mature and be repaid by the Fund in a single installment on November 6, 1989.

C. General Provision

1. In all other respects, the provisions of the 1981 Borrowing Agreement and 1984 Supplementary Agreement, other than those provisions which by their terms have already expired, shall continue in effect and shall apply to all amounts drawn during the relevant extended periods.

2. Please confirm by tested telex your acceptance of this proposal. This communication and your reply accepting the foregoing proposal shall constitute an amendment to the 1981 Borrowing Agreement and the 1984 Supplementary Agreement and shall enter into force on the date on which the Fund receives such reply.*

Very truly yours,

J. de Larosière

Managing Director

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