Article XX, Section 2
- International Monetary Fund. Legal Dept.
- Published Date:
- August 2017
Payment of Net Charges and Assessment in the SDR Department for the Financial Year Ended April 30, 1982
The Executive Board notes the course of action set out in EBS/82/80.
Decision No. 7116-(82/68) S,
May 7, 1982
The problems arising out of these participants’ failure to hold adequate SDRs or to acquire them from other participants or the Fund, to meet net charges and assessments have been dealt with as follows:
(i) Since [members] had sufficient SDRs to pay assessments, these amounts were collected first by debiting their respective SDR accounts. The balance of their SDR holdings was applied toward the payment of net charges.
(ii) [Member], not having any SDRs, was not in a position to pay its assessment of SDR 4,669. This amount will be carried as a receivable in the General Resources Account until such time as it can be collected.
(iii) The unpaid balance of net charges, SDR 15,419,868 will be shown separately in the balance sheet of the Special Drawing Rights Department under the caption “Charges due but not paid.” This item will appear below “Net cumulative allocations of SDRs to participants” and the total of the two items will correspond to the total in the balance sheet of holdings of SDRs by participants.
(iv) When these participants acquire sufficient SDRs to pay the charges due, the entry will be cancelled in accordance with Article XX, Section 5 which states, in part that “special drawing rights acquired by a participant after the date for payment shall be applied against its unpaid charges and cancelled.”
The course of action outlined above follows from the application of the Articles of Agreement and was adopted in 1978 when one participant did not hold sufficient special drawing rights to pay the assessment and charges due with respect to the financial year ending April 30, 1978. While the procedure has already been adopted by the Executive Board for the situation described, it is considered appropriate that the Executive Board again note the course of action taken.