- International Monetary Fund. Secretary's Department
- Published Date:
- November 1998
Resolution No. 53-1
Membership for the Republic of Palau
On December 24, 1996 the Government of Palau applied for admission to membership in the International Monetary Fund. The Executive Board resolved on November 7, 1997 that action on the application should not be postponed until the next regular meeting of the Board of Governors.
In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on November 10, 1997 for a vote without meeting:
Whereas, the Republic of Palau, on December 24, 1996, requested admission to membership in the International Monetary Fund in accordance with Article II, Section 2 of the Articles of Agreement of the Fund;
Whereas, pursuant to Section 21 of the By-Laws of the Fund, the Executive Board has consulted with the representative of the Republic of Palau and has agreed upon the terms and conditions which, in the opinion of the Executive Board, the Board of Governors may wish to prescribe for admitting the Republic of Palau to membership in the Fund;
Now, therefore, the Board of Governors, having considered the recommendations of the Executive Board, hereby resolves that the terms and conditions upon which the Republic of Palau shall be admitted to membership in the Fund shall be as follows:
Definitions: As used in this Resolution:
(a) The term “Fund” means the International Monetary Fund;
(b) The term “Articles” means the Articles of Agreement of the Fund, as amended; and
(c) The term “SDRs” means special drawing rights of the Fund.
Quota: The quota of the Republic of Palau shall be SDR 2.25 million.
Payment of Subscription: The subscription of the Republic of Palau shall be equal to its quota. The Republic of Palau shall pay 23.5 percent of its subscription in SDRs or in the currencies of other members selected by the Managing Director from those currencies that the Fund would receive in accordance with the operational budget in effect at the time of payment. The balance of the subscription shall be paid in the currency of the Republic of Palau.
Timing of Payment of Subscription: The Republic of Palau shall pay its subscription within six months after accepting membership in the Fund.
Exchange Transactions with the Fund and Remuneration: The Republic of Palau may not engage in transactions under Article V, Section 3, or receive remuneration under Article V, Section 9, until its subscription has been paid in full.
Exchange Arrangements: Within 30 days after accepting membership in the Fund, the Republic of Palau shall notify the Fund of the exchange arrangements it intends to apply in fulfillment of its obligations under Article IV, Section 1 of the Articles.
Representation and Information: Before accepting membership in the Fund, the Republic of Palau shall represent to the Fund that it has taken all action necessary to sign and deposit the Instrument of Acceptance and sign the Articles as contemplated by paragraph 8(a) and 8(b) of this Resolution, and the Republic of Palau shall furnish to the Fund such information in respect of such action as the Fund may request.
Effective Date of Membership: After the Fund shall have informed the government of the United States of America that the Republic of Palau has complied with the conditions set forth in paragraph 7 of this Resolution, the Republic of Palau shall become a member of the Fund on the date when the Republic of Palau shall have complied with the following requirements:
(a) The Republic of Palau shall deposit with the government of the United States of America an instrument stating that it accepts in accordance with its law the Articles and all the terms and conditions prescribed in this Resolution, and that it has taken all steps necessary to enable it to carry out all its obligations under the Articles and this Resolution; and
(b) The Republic of Palau shall sign the original copy of the Articles held in the Archives of the government of the United States of America.
Period of Acceptance of Membership: The Republic of Palau may accept membership in the Fund pursuant to this Resolution not later than six months after the effective date of this Resolution, which date shall be the date of its adoption by the Board of Governors; provided, however, that if the circumstances of the Republic of Palau are deemed by the Executive Board to warrant an extension of the period during which the Republic of Palau may accept membership pursuant to this Resolution, the Executive Board may extend such period until such later date as it may determine.
The Board of Governors adopted the foregoing Resolution, effective December 8, 1997. The Articles of Agreement were signed by His Excellency Tommy E. Remengesau, Jr., Vice-President and Minister of Administration, on behalf of the Government of the Republic of Palau, on December 16, 1997.
Resolution No. 53-2
Increase in Quotas of Fund Members—Eleventh General Review
Article III, Section 2(a) of the Articles of Agreement provides that “The Board of Governors shall, at intervals of not more than five years, conduct a general review, and if it deems it appropriate, propose an adjustment of the quotas of the members.” The five-year period prescribed by Article III, Section 2(a) for the Eleventh General Review of Quotas ended on March 31, 1998, five years from the date on which the Tenth General Review of Quotas should have been concluded. The Tenth General Review of Quotas was completed in early 1995 without recommending an increase in quotas to the Board of Governors. At its meeting on April 5 of that year, the Interim Committee requested the Executive Board “to continue to review the adequacy of the Fund’s resources, and, in connection with its review of the role of the Fund, to carry forward its work on the Eleventh General Review of Quotas.” At its meeting in October 1995, the Committee “welcomed the progress already made by the Executive Board on Fund quotas, and requested the Board to move forward with the Eleventh Quinquennial Review.…” In September 1996, the Committee reiterated its request to the Executive Board “to continue its work on the Review and to do its utmost to reach a conclusion as soon as possible.” In April 1997, the Committee requested the Executive Board to complete its work on quotas as soon as possible and to report to it in time for the Hong Kong meeting of the Committee. The Executive Board reached agreement on the size and distribution of the increase in quotas, which was endorsed by the Interim Committee at its meeting on September 21, 1997. In its discussions on the Eleventh General Review, the Executive Board has considered, inter alia (i) the size of the overall increase in quotas; (ii) the distribution of the overall increase; (Hi) the procedures for consent and payment for the increase in quotas, including by members with overdue obligations in the General Resources Account; and (iv) the media for payment for the increase in quotas. In its preparatory work on the Review, the Executive Board also considered issues relating to the role of the Fund in providing balance of payments financing, the quota formulas used in making quota calculations, and the declining share in quotas of developing countries in the Fund. In the light of these considerations, and taking into account the agreement reached by the Executive Board at the Annual Meetings in Hong Kong SAR which was endorsed by the Interim Committee at its meeting on September 21, 1997 in Hong Kong SAR, the Executive Board proposed to the Board of Governors that the present total of Fund quotas be increased by 45 percent, from approximately SDR 146 billion to approximately SDR 212 billion. The Executive Board decided on December 19, 1997 to submit a report entitled “Increases in Quotas of Fund Members—Eleventh General Review” to the Governors, containing a proposed Resolution which was recommended for adoption.
In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on December 23, 1997 for a vote without meeting:
Whereas the Executive Board has submitted to the Board of Governors a report entitled “Increases in Quotas of Fund Members—Eleventh General Review” containing recommendations on increases in the quotas of individual members of the Fund; and
Whereas the Executive Board has recommended the adoption of the following Resolution of the Board of Governors, which Resolution proposes increases in the quotas of members of the Fund as a result of the Eleventh General Review of Quotas and deals with certain related matters, by vote without meeting pursuant to Section 13 of the By-Laws of the Fund;
Now, therefore, the Board of Governors hereby resolves that:
The International Monetary Fund proposes that, subject to the provisions of this Resolution, the quotas of members of the Fund shall be increased to the amounts shown against their names in the Annex to this Resolution.
A member’s increase in quota as proposed by this Resolution shall not become effective unless the member has notified the Fund of its consent to the increase not later than the date prescribed by or under paragraph 4 below and has paid the increase in quota in full within the period prescribed by or under paragraph 5 below, provided that no member with overdue repurchases, charges or assessments to the General Resources Account may consent to or pay for the increase in its quota until it becomes current in respect of these obligations.
No increase in quotas shall become effective before the date of the Fund’s determination that members having not less than 85 percent of the total of quotas on December 23, 1997 have consented to the increases in their quotas.
Notices in accordance with paragraph 2 above shall be executed by a duly authorized official of the member and must be received in the Fund before 6:00 p.m., Washington time, January 29, 1999, provided that the Executive Board may extend this period as it may determine.
Each member shall pay to the Fund the increase in its quota within 30 days after the later of (a) the date on which it notifies the Fund of its consent, or (b) the date of the Fund’s determination under paragraph 3 above, provided that the Executive Board may extend the payment period as it may determine.
When deciding on an extension of the period for consent to or payment for the increase in quotas, the Executive Board shall give particular consideration to the situation of members that may still wish to consent to or pay for the increase in quota, including members with protracted arrears to the General Resources Account, consisting of overdue repurchases, charges or assessments to the General Resources Account, that, in its judgment, are cooperating with the Fund toward the settlement of these obligations.
For members that have not yet consented to their increases in quotas under the Ninth Review, the period for consent to such quota increases shall extend to the date determined under paragraph 3 above. For members that have not yet paid for their quota increases under the Ninth Review, the period for payment for such quota increases shall extend to 30 days after the date determined under paragraph 3 above.
Each member shall pay 25 percent of its increase either in special drawing rights or in the currencies of other members specified, with their concurrence, by the Fund, or in any combination of special drawing rights and such currencies. The balance of the increase shall be paid by the member in its own currency.
Annex to Resolution No. 53-2
(In millions of SDRs)
|1. Afghanistan, Islamic State of||161.9|
|5. Antigua and Barbuda||13.5|
|11. Bahamas, The||130.3|
|21. Bosnia and Herzegovina||169.1|
|24. Brunei Darussalam||215.2|
|26. Burkina Faso||60.2|
|31. Cape Verde||9.6|
|32. Central African Republic||55.7|
|38. Congo, Democratic Republic of the||533.0|
|39. Congo, Republic of||84.6|
|40. Costa Rica||164.1|
|41. Côte d’Ivoire||325.2|
|44. Czech Republic||819.3|
|48. Dominican Republic||218.9|
|51. El Salvador||171.3|
|52. Equatorial Guinea||32.6|
|59. Federal Republic of Yugoslavia (Serbia/Montenegro)1||467.7|
|61. Gambia, The||31.1|
|77. Iran, Islamic Republic of||1,497.2|
|90. Kyrgyz Republic||88.8|
|91. Lao People’s Democratic Republic||52.9|
|99. Macedonia, former Yugoslav Republic of||68.9|
|106. Marshall Islands||3.5|
|110. Micronesia, Federated States of||5.1|
|119. New Zealand||894.6|
|126. Palau, Republic of||3.1|
|128. Papua New Guinea||131.6|
|139. San Marino||17.0|
|140. São Tomé and Príncipe||7.4|
|141. Saudi Arabia||6,985.5|
|144. Sierra Leone||103.7|
|146. Slovak Republic||357.5|
|148. Solomon Islands||10.4|
|150. South Africa||1,868.5|
|152. Sri Lanka||413.4|
|153. St. Kitts and Nevis||8.9|
|154. St. Lucia||15.3|
|155. St. Vincent and the Grenadines||8.3|
|161. Syrian Arab Republic||293.6|
|167. Trinidad and Tobago||335.6|
|173. United Arab Emirates||611.7|
|174. United Kingdom||10,738.5|
|175. United States||37,149.3|
|181. Yemen, Republic of||243.5|
The Board of Governors adopted the foregoing Resolution, effective January 30, 1998.
Resolution No. 53-3
Direct Remuneration of Executive Directors and Their Alternates
Pursuant to Section 14(e) of the By-Laws, the 1998 Joint Committee on the Remuneration of Executive Directors and Their Alternates on June 29, 1998 directed the Secretary of the Fund to transmit its report and recommendations to the Board of Governors of the Fund. The Committee’s report contained the following proposed Resolution for adoption by the Board of Governors.
In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on June 30,1998 for a vote without meeting:
That, effective July 1, 1998, the annual rates of remuneration of the Executive Directors of the Fund and their Alternates pursuant to Section 14(e) of the By-Laws shall be as follows:
(i) As salary, $146,200 per year for Executive Directors and $125,500 per year for their Alternates;
(ii) As supplemental allowance (for expenses, including housing and entertainment expenses, except those specified in Section 14(f) of the By-Laws), $9,000 per year for Executive Directors and $7,200 per year for their Alternates.
The Board of Governors adopted the foregoing Resolution, effective August 11, 1998.
Resolution No. 53-4
1998 Regular Election of Executive Directors
The Executive Board resolved on July 30, 1998 that action in connection with the regulations for the conduct of the 1998 regular election of Executive Directors should not be postponed until the time of the next regular meeting of the Board of Governors at which the election would take place.
In accordance with Section 13 of the By-Laws, the following Resolution was submitted to the Governors on July 31,1998 for a vote without meeting:
(a) That the proposed Regulations for the Conduct of the 1998 Regular Election of Executive Directors are hereby adopted; and
(b) That a Regular Election of Executive Directors shall take place at the Annual Meeting of the Board of Governors in 2000.
The Board of Governors adopted the foregoing Resolution, effective August 31, 1998.
Resolution No. 53-5
Financial Statements, Report on Audit, and Administrative and Capital Budgets
That the Board of Governors of the Fund considers the Report on Audit for the Financial Year ended April 30, 1998, the Financial Statements contained therein, and the Administrative Budget for the Financial Year ending April 30, 1999 and the Capital Budget for capital projects beginning in Financial Year 1999 as fulfilling the requirements of Article XII, Section 7 of the Articles of Agreement and Section 20 of the By-Laws.
The Board of Governors adopted the foregoing Resolution, effective October 8, 1998.
Resolution No. 53-6
Amendments of the Rules and Regulations
That the Board of Governors of the Fund hereby notifies the Executive Board that it has reviewed the amendment of Rule J-7 and Rule J-8, and the redesignation of former Rule J-7 as Rule J-9, which have been made since the 1997 Annual Meeting, and has no changes to suggest.
The Board of Governors adopted the foregoing Resolution, effective October 8, 1998.
Under Executive Board Decision No. 10237–(92/150) adopted December 14, 1992, the Federal Republic of Yugoslavia (Serbia/Montenegro) may succeed to the membership of the former Socialist Federal Republic of Yugoslavia.