Chapter

Resolutions

Author(s):
International Monetary Fund. Secretary's Department
Published Date:
November 1959
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Resolution No. 14-1. General Increase in Quotas

Pursuant to Resolution No. 13-10, the Executive Board resolved on December 19, 1958 that action on the proposal to enlarge the resources of the Fund through increases in quotas 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 December 22, 1958 along with Resolutions Nos. 14-2 and 14-3 for a vote without meeting:

Resolved:

1. The International Monetary Fund proposes that, subject to the provisions of this Resolution, the quotas of members of the International Monetary Fund as of January 31, 1959 shall be increased by 50 per cent for each member.

2. None of the increases in quotas proposed in paragraph 1 of this Resolution shall become effective unless:

  • (i) The member concerned has notified the Fund in writing that it consents to the increase in its quota; and

  • (ii) The Fund determines that members having not less than 75 per cent of the total of quotas on January 31, 1959 have consented to increases in their quotas; and

  • (iii) The requirement is satisfied of a minimum aggregate increase in subscriptions, contained in the Resolution of the Board of Governors of the International Bank for Reconstruction and Development entitled Increase of $10,000,000,000 in Authorized Capital Stock and Subscriptions Thereto, recommended by the Executive Directors of the International Bank for Reconstruction and Development; and

  • (iv) The member concerned has paid the full increase in its quota.

Subject to paragraph 7(c) of this Resolution, each increase in quota shall become effective upon the date of the latest of these four events.

3. The written notices prescribed in paragraph 2(i) shall be signed by a competent official whose authority and signature are duly authenticated.

4. Notices in accordance with paragraph 2(i) shall be received in the Fund not later than September 15, 1959, provided that the Executive Directors may extend this period as they may determine.

5. At any time after the percentage of participation prescribed in paragraph 2(ii) of this Resolution has been reached, the Board of Governors may, by a four-fifths majority of the total voting power, eliminate the requirements in paragraph 2(iii) of this Resolution, and may make such modifications as to the date of the effectiveness of increases in quotas as may then be determined.

6. Subject to paragraph 7(b) of this Resolution, each member shall pay to the Fund within thirty days after the latest of the three events in paragraph 2(i), (ii), and (iii) of this Resolution, 25 per cent of the increase in gold and the balance in its own currency.

7 (a). In giving notice in accordance with paragraph 2(i) of this Resolution, a member may represent that, for reasons which it shall submit to the Fund, its reserves should not be reduced by an immediate full gold payment in accordance with paragraph 6 of this Resolution, and that it therefore consents to the increase in its quota proposed in paragraph 1 of this Resolution, as an increase by installments.

(b). Notwithstanding paragraph 2(iv) of this Resolution, a member increasing its quota by installments shall pay not less than one fifth of the gold and currency prescribed in paragraph 6 within thirty days after the latest of the three events in paragraph 2(i), (ii), and (iii), and shall pay further installments of gold and currency of not less than one fifth of the increase in each twelve months after the first payment until the full amount prescribed in paragraph 6 has been paid.

(c). Subject to paragraph 2 of this Resolution, on the completion of the payment of each installment of the increase, the member’s quota shall be increased by an amount equal to the installment.

8. Since it is in the interests of the Fund and its members that the contemplated increase in its resources be expedited, members are invited to comply as soon as possible with the procedures for notice and payments to the Fund under this Resolution. Any payment made by a member before the effective date of increase in its quota will be kept in separate accounts of the Fund. If it should be established that such increase cannot become effective under this Resolution, the payment will be returned to the member.

The Board of Governors adopted the foregoing Resolution, effective February 2, 1959.

Resolution No. 14-2. Increases in Small Quotas

The following Resolution was submitted to the Board of Governors on December 22, 1958 along with Resolutions Nos. 14-1 and 14-3 for a vote without meeting:

Resolved:

1. The International Monetary Fund proposes that, subject to the provisions of this Second Resolution, if any member to which the small quota policy of the Second Quinquennial Review applies so elects, its quota shall be increased beyond the amount specified in the First Resolution 1 to such an amount, not exceeding a 50 percent increase in the maximum quota available under the said policy, as such member shall communicate to the Fund at the time that it consents to the increase in its quota.

2. Paragraphs 2(i) and (iv), 3, 4, 6, 7, and 8 of the First Resolution2 shall apply to this Second Resolution.

The Board of Governors adopted the foregoing Resolution, effective February 2, 1959.

Resolution No. 14-3. Increases in the Quotas of Canada, the Federal Republic of Germany, and Japan

The following Resolution was submitted to the Board of Governors on December 22, 1958 along with Resolutions Nos. 14-1 and 14-2 for a vote without meeting:

Resolved:

1. The International Monetary Fund proposes that, subject to the provisions of this Third Resolution, if increases in quotas take effect under the First Resolution,2 the quotas of Canada, the Federal Republic of Germany, and Japan shall be increased to the amounts shown below:

Canada$550 million
Federal Republic of Germany$787.5 million
Japan$500 million

2. Paragraphs 2(i) and (iv), 3, 4, 6, and 8 of the First Resolution 2 shall apply to this Third Resolution.

The Board of Governors adopted the foregoing Resolution, effective February 2, 1959.

Resolution No. 14-4. Special Increases in Quotas

Pursuant to Resolution No. 13-10, the Executive Board resolved on February 24, 1959 that action on certain requests for special quota increases in connection with the proposed enlargement of the Fund’s resources 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 March 6, 1959 for a vote without meeting:

Resolved:

1. The International Monetary Fund proposes that, subject to the provisions of this Fourth Resolution, if increases in quotas take effect under the First Resolution 3 adopted by the Board of Governors on February 2, 1959, the quotas of the following members shall be increased to the amounts shown against their names:

Million U.S. dollarsMillion U.S. dollars
Argentina280Israel25
Brazil280Mexico180
Ceylon45Norway100
Cuba100Saudi Arabia55
Denmark130Thailand45
Ghana35Turkey86
Iran70Venezuela150

2. Paragraphs 2(i) and (iv), 3, 4, 6, and 8 of the said First Resolution3 shall apply to this Fourth Resolution.

The Board of Governors adopted the foregoing Resolution, effective April 6, 1959.

Resolution No. 14-54. Financial Statements, Report on Audit, and Administrative Budget

Resolved:

That the Board of Governors of the Fund considers the Report on Audit for the Fiscal Year ended April 30, 1959, the Financial Statements contained therein, and the Administrative Budget for the Fiscal Year ending April 30, 1960, as fulfilling the requirements of Article XII, Section 7, of the Articles of Agreement and Section 20 of the By-Laws.

Resolution No. 14-64. General Reserve

Resolved:

The Board of Governors approves the allocation to the General Reserve of $20,494,308.08, the net income for the fiscal year ended April 30, 1959.

Resolution No. 14-7 4. Amendments to Rules and Regulations

Resolved:

That the Board of Governors of the Fund hereby notifies the Executive Directors that it has reviewed the amendments to Rules 1-2,1-4(f) and (g), and N-13 of the Rules and Regulations adopted by the Executive Board since the Thirteenth Annual Meeting and has no changes to suggest.

Resolution No. 14-8 5. Membership for the Kingdom of Laos

Whereas, the Government of the Kingdom of Laos on July 16, 1959, applied for admission to membership in the International Monetary Fund in accordance with Section 2 of Article II of the Articles of Agreement of the Fund; and

Whereas, pursuant to Section 21 of the By-Laws of the Fund, the Executive Directors have consulted with representatives of that Government and have agreed upon the terms and conditions which, in the opinion of the Executive Directors, the Board of Governors may wish to prescribe for admitting the Kingdom of Laos to membership in the Fund;

Now, therefore, the Board of Governors having considered the recommendations of the Executive Directors, hereby resolves that the terms and conditions upon which the Kingdom of Laos shall be admitted to membership in the Fund shall be as follows:

  • 1. Definitions: As used in this Resolution:

    • (a) The term “Fund” means International Monetary Fund.

    • (b) The term “Articles” means the Articles of Agreement of the International Monetary Fund.

    • (c) The term “dollars” or “$” means United States dollars of the weight and fineness in effect on July 1, 1944.

  • 2. Quota: The quota of the Kingdom of Laos shall be US$7.5 million.

  • 3. Subscription: The subscription of the Kingdom of Laos shall be equal to its quota. The Kingdom of Laos shall pay in gold, as a minimum, the smaller of (i) 25 per cent of its quota; or (ii) 10 per cent of its net official holdings of gold and United States dollars, calculated in accordance with Article XIX of the Fund Agreement, as at the date the Kingdom of Laos makes the representation provided for in paragraph 7 of this Resolution. With the representation provided for in paragraph 7 of this Resolution, the Kingdom of Laos shall furnish to the Fund the data necessary to determine its net official holdings of gold and United States dollars. The balance of the subscription shall be paid in the currency of the Kingdom of Laos.

  • 4. Payment of Subscription: The portion of the subscription to be paid in gold shall be paid not later than the day the Articles are signed on behalf of the Kingdom of Laos. In case the Kingdom of Laos does not acquire membership in the Fund the gold so paid shall be returned to it by the Fund. The remaining part of the subscription which has not been paid in gold shall be paid before the thirtieth day after the initial par value of the currency of the Kingdom of Laos has been agreed in accordance with paragraph 5 below.

  • 5. Determination of Par Value: Within 30 days after the Fund so requests, the Kingdom of Laos shall communicate to the Fund a proposed par value for its currency, and within 60 days following the Fund’s receipt of the proposed par value, the Kingdom of Laos and the Fund shall agree on an initial par value for the currency; provided that the Fund may extend the period of 60 days and that the Kingdom of Laos shall be deemed to have withdrawn from the Fund if agreement on a par value has not been reached when the extended period expires. In the period between accepting membership and the establishment of an initial par value pursuant to this paragraph, the Kingdom of Laos shall not change its exchange rates prevailing at the time of accepting membership without agreement with the Fund after prior consultation.

  • 6. Exchange Transactions with the Fund: The Kingdom of Laos may not engage in exchange transactions with the Fund (a) before the thirtieth day after the par value of its currency has been agreed in accordance with paragraph 5 above and (b) before its subscription has been fully paid.

  • 7. Representation and Information: Before accepting membership in the Fund, the Kingdom of Laos 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 (b) of this Resolution, and the Kingdom of Laos shall furnish to the Fund such information in respect of such action as the Fund may request.

  • 8. Acceptance of Membership: After the Fund shall have informed the Government of the United States of America that the Kingdom of Laos has complied with the conditions set forth in paragraph 7 of this Resolution, the Kingdom of Laos shall become a member of the Fund as of the date when the Kingdom of Laos shall have complied with the following requirements:

    • (a) The Kingdom of Laos shall deposit with the Government of the United States of America an instrument stating that it has accepted 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 Kingdom of Laos shall sign the original copy of the Articles held in the Archives of the Government of the United States of America.

  • 9. Limitation on Period for Acceptance of Membership: The Kingdom of Laos may accept membership in the Fund pursuant to this Resolution within nine months of the effective date of this Resolution, which date shall be the date of its adoption by the Board of Governors; provided, however, that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which the applicant may accept membership pursuant to this Resolution, the Executive Directors may extend such period until such later date as they may determine.

Resolution No. 14-9 6. Membership for Portugal

Whereas, the Government of Portugal on August 4, 1959, applied for admission to membership in the International Monetary Fund in accordance with Section 2 of Article II of the Articles of Agreement of the Fund; and

Whereas, pursuant to Section 21 of the By-Laws of the Fund, the Executive Directors have consulted with representatives of that Government and have agreed upon the terms and conditions which, in the opinion of the Executive Directors, the Board of Governors may wish to prescribe for admitting Portugal to membership in the Fund;

Now, therefore, the Board of Governors, having considered the recommendations of the Executive Directors, hereby resolves that the terms and conditions upon which Portugal shall be admitted to membership in the Fund shall be as follows:

  • 1. Definitions: As used in this Resolution:

    • (a) The term “Fund” means International Monetary Fund.

    • (b) The term “Articles” means the Articles of Agreement of the International Monetary Fund.

    • (c) The term “dollars” or “$” means United States dollars of the weight and fineness in effect on July 1, 1944.

  • 2. Quota: The quota of Portugal shall be US$60 million.

  • 3. Subscription: The subscription of Portugal shall be equal to its quota, and not less than 25 per cent of the subscription shall be paid in gold and the balance in the currency of Portugal.

  • 4. Payment of Subscription: The portion of the subscription to be paid in gold shall be paid not later than the day the Articles are signed on behalf of Portugal. In case Portugal does not acquire membership in the Fund the gold so paid shall be returned to it by the Fund. The remaining part of the subscription which has not been paid in gold shall be paid before the thirtieth day after the initial par value of the currency of Portugal has been agreed in accordance with paragraph 5 below.

  • 5. Determination of Par Value: Within 30 days after the Fund so requests, Portugal shall communicate to the Fund a proposed par value for its currency, and within 60 days following the Fund’s receipt of the proposed par value, Portugal and the Fund shall agree on an initial par value for the currency; provided that the Fund may extend the period of 60 days and that Portugal shall be deemed to have withdrawn from the Fund if agreement on a par value has not been reached when the extended period expires. In the period between accepting membership and the establishment of an initial par value pursuant to this paragraph, Portgual shall not change its exchange rates prevailing at the time of accepting membership without agreement with the Fund after prior consultation.

  • 6. Exchange Transactions with the Fund: Portugal may not engage in exchange transactions with the Fund (a) before the thirtieth day after the par value of its currency has been agreed in accordance with paragraph 5 above and (b) before its subscription has been fully paid.

  • 7. Representation and Information: Before accepting membership in the Fund, Portugal 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 (b) of this Resolution, and Portugal shall furnish to the Fund such information in respect of such action as the Fund may request.

  • 8. Acceptance of Membership: After the Fund shall have informed the Government of the United States of America that Portugal has complied with the conditions set forth in paragraph 7 of this Resolution, Portugal shall become a member of the Fund as of the date when Portugal shall have complied with the following requirements:

    • (a) Portugal shall deposit with the Government of the United States of America an instrument stating that it has accepted 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) Portugal shall sign the original copy of the Articles held in the Archives of the Government of the United States of America.

  • 9. Limitation on Period for Acceptance of Membership: Portugal may accept membership in the Fund pursuant to this Resolution within six months of the effective date of this Resolution, which date shall be the date of its adoption by the Board of Governors; provided, however, that, if extra ordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which the applicant may accept membership pursuant to this Resolution, the Executive Directors may extend such period until such later date as they may determine.

Resolution No. 14-107. Place and Date of Fifteenth Annual Meeting

Resolved:

That the Chairman shall convene the Fifteenth Annual Meeting of the Board of Governors in Washington in September 1960.

Resolution No. 14-118. Officers of the Board of Governors

Resolved:

That the Governor for Australia is hereby elected Chairman of the Board of Governors and the Governors for Mexico and Pakistan are hereby elected Vice-Chairmen to hold office until the close of the next Annual Meeting.

Resolution No. 14-12 8. Composition of Joint Procedures Committee

Resolved:

That a Procedures Committee of the Bank and the Fund is hereby established to be available after the termination of this Meeting, and until the close of the next Annual Meeting, for consultation at the discretion of the Chairman, normally by correspondence, and also, if occasion requires, by convening when necessary. This Committee shall be composed of the Governors for the following members:

Australia, Canada, China, the Dominican Republic, France, Germany, Ghana, India, Ireland, Korea, Lebanon, Libya, Mexico, Norway, Pakistan, the United Kingdom, the United States, Uruguay, and Viet-Nam.

The Chairman and the Vice-Chairmen shall be the Governors for Australia, Mexico, and Pakistan, respectively, and the Governor for Libya shall serve as Reporting Member.

Resolution No. 14-1.

Resolution No. 14-1.

Resolution No. 14-1.

Adopted by the Board of Governors on September 29, 1959.

Adopted by the Board of Governors on September 29, 1959.

Adopted by the Board of Governors on September 29, 1959.

Adopted by the Board of Governors in Joint Session with the Board of Governors of the Bank on October 2, 1959.

Adopted by the Board of Governors in Joint Session with the Board of Governors of the Bank on October 2, 1959.

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