Abstract

Pursuant to Section III, Paragraph 2 of the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for borrowing from the Government of Canada in terms of the draft agreement set out in the attachment to EBS/95/52 (3/24/95), and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement.

Government of Canada

Pursuant to Section III, Paragraph 2 of the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for borrowing from the Government of Canada in terms of the draft agreement set out in the attachment to EBS/95/52 (3/24/95), and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement.

Decision No. 10939-(95/31) ESAF

March 29, 1995

Attachment to EBS/95/52

Enhanced Structural Adjustment Facility: Proposed Borrowing Agreement with the Government of Canada

I have been authorized to propose on behalf of the International Monetary Fund (the “Fund”) as Trustee of the Enhanced Structural Adjustment Facility Trust (the “Trust”) that the Government of Canada agree to lend to the Fund as Trustee for the purpose of providing resources to the Loan Account of that Trust, in accordance with the terms of the Instrument establishing the Trust (the “Instrument”) adopted by the Executive Board of the Fund by Decision No. 8759-(87/176) ESAF, adopted December 18, 1987, as amended. The amount of the loan is to be the equivalent of SDR 200 million and the terms and conditions of this loan shall be as follows:

1. (a) The Trustee may make drawings under this agreement at any time during the period from the effective date of this agreement through December 31, 1999, upon giving the Government of Canada at least five business days (Washington, D.C.) notice.

(b) If any installment of principal or interest is not paid to the Government of Canada within a period of ten days after its due date, the Trustee shall not make further drawings under this agreement pending consultations with the Government of Canada on the matter. However, the Trustee may resume drawings under this agreement once arrears to the Government of Canada have been discharged

2. (a) The amount of each drawing shall be denominated in SDRs. Unless otherwise agreed between the Trustee and the Government of Canada, the amount shall be paid, on the value date specified in the Trustee’s notice, by transfer of the equivalent amount of U.S. dollars or SDRs by the Bank of Canada to an account specified by the Trustee. Upon receipt of the Trustee’s notice by the Government of Canada, the Bank of Canada shall promptly advise the Trustee of the media to be used for the transfer.

(b) Upon request, the Trustee shall issue to the Government of Canada a nonnegotiable certificate evidencing its claim on the Trust resulting from a drawing outstanding under this agreement.

3. (a) Each drawing shall be repaid in ten equal semiannual installments beginning five and one-half years and ending ten years after the date of the drawing. Repayments by the Trust shall be made on the relevant maturity date.

(b) By agreement between the Government of Canada and the Trustee, any drawing or part thereof may be repaid by the Trustee at any time in advance of maturity.

(c) If a drawing matures on a date that is not a business day of the Fund, the maturity date shall be on the preceding business day.

4. (a) Interest on the amount outstanding in respect of each drawing shall be computed at an annual rate determined by the Trustee at the time each drawing is made and at intervals of six calendar months thereafter, from the product of:

  • (i) the interest rates on domestic instruments in each currency included in the SDR basket, as reported to the Trustee by each reporting agency, on the business day of the Fund referred to in paragraph 8, as follows:

    • – the bond equivalent yield for six-month U.S. Treasury bills,

    • – the six-month interbank rate in Germany,

    • – the midpoint between the bid and offered rate on six-month Treasury bills in France,

    • – the average rate for newly issued bank CDs in Japan with a maturity of between 150 days and 180 days,

    • – the six-month interbank rate in the United Kingdom, and

  • (ii) the percentage weight of that currency in the valuation of the SDR on that business day, calculated by using the same amounts and exchange rates for currencies as are employed by the Fund for calculating the value of the SDR in terms of the U.S. dollar on that day.

The applicable interest rate shall be the sum of the products so calculated, rounded to two decimal places.

(b) The amount of interest payable in respect of each drawing shall be calculated on an actual day basis and shall be paid on all outstanding drawings under this agreement promptly after June 30 and December 31 of each year.

5. (a) Payments of principal and interest shall be made in U.S. dollars or in other media as may be agreed between the Trustee and the Government of Canada.

(b) Payments in U.S. dollars shall be made by crediting the amount due to the account of the Bank of Canada at the Federal Reserve Bank of New York, New York. Payments in SDRs shall be made by crediting Canada’s holdings account in the Special Drawing Rights Department. Payments in other currencies shall be made to an account specified by the Government of Canada.

6. (a) The Government of Canada shall have the right to transfer at any time all or part of any claim to any member of the Fund, to the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1, or to any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement.

(b) The transferee shall acquire all the rights of the Government of Canada under this agreement with respect to repayment of and interest on the transferred claim.

7. At the request of the Government of Canada, calls on its commitment to meet drawings may be suspended temporarily at any time prior to June 30, 1999, subject to the provisions of Section III, paragraph 4(b) and (c) of the Instrument.

8. Unless otherwise agreed between the Trustee and the Government of Canada, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund for the third business day of the Fund before the value date of the transfer, exchange or payment.

9. If the Fund changes the method of valuing the SDR, all transfers, exchanges, and payments of principal and interest made three or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

10. Any question arising hereunder shall be settled by mutual agreement between the Government of Canada and the Trustee.

If the foregoing proposal is acceptable to the Government of Canada this communication and your duly authenticated reply accepting this proposal shall constitute an agreement between the Government of Canada and the Trustee, which shall enter into effect on the date the Trustee acknowledges receipt of the communication by which the Government of Canada notifies the Trustee of the completion of the required legislative procedures.*

Government of China

Pursuant to Section III, Paragraph 2 of the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for borrowing from the Government of China in terms of the draft agreement set out in the attachment to EBS/94/118, and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement.

Decision No. 10711-(94/53) ESAF

June 8, 1994

Attachment to EBS/94/118

Enhanced Structural Adjustment Facility: Proposed Borrowing Agreement with the Government of China

I have been authorized to propose on behalf of the International Monetary Fund (the “Fund”) as Trustee of the Enhanced Structural Adjustment Facility Trust (the “Trust”) that the Government of China agree to lend to the Fund as Trustee for the purpose of providing resources to the Loan Account of that Trust, in accordance with the terms of the Instrument establishing the Trust (the “Instrument”) adopted by the Executive Board of the Fund by Decision No. 8759-(87/176) ESAF, adopted December 18, 1987, as amended. The amount of the loan is to be the equivalent of SDR 100 million and the terms and conditions of this loan shall be as follows:

1. (a) The Trustee may make drawings under this agreement at any time during the period from the effective date of this agreement through December 31, 1999, upon giving the Government of China at least three business days (Washington, D.C.) notice by tested telex.

(b) If any installment of principal or interest is not paid to the Government of China within a period of ten days after its due date, the Trustee shall not make further drawings under this agreement pending consultations with the Government of China on this matter. However, the Trustee may resume drawings under this agreement once arrears to the Government of China have been discharged.

2. (a) The amount of each drawing shall be denominated in SDRs. Unless otherwise agreed between the Trustee and the Government of China, the amount shall be paid by the Government of China, on the value date specified in the Trustee’s notice, by transfer of SDRs to an account specified by the Trustee.

(b) Upon request, the Trustee shall issue to the Government of China a non-negotiable certificate evidencing its claim on the Trust resulting from a drawing outstanding under this agreement.

3. (a) Each drawing shall be repaid in ten equal semiannual installments beginning five and one-half years and ending ten years after the date of the drawing. Repayments by the Trust shall be made on the relevant maturity date.

(b) By agreement between the Government of China and the Trustee, any drawing or part thereof may be repaid by the Trustee at any time in advance of maturity.

(c) If a drawing matures on a date that is not a business day of the Fund, the maturity date shall be on the preceding business day.

4. (a) The rate of interest applicable to each drawing shall be calculated at the time of the drawing and at intervals of six calendar months thereafter. The amount outstanding in respect of each drawing shall bear interest at an annual rate determined by the Trustee at the time of the calculation from the product of:

  • (i) the interest rates on domestic instruments in each currency included in the SDR basket, as reported to the Trustee by each reporting agency, on the business day of the Fund referred to in paragraph 8, as follows:

    • – the bond equivalent yield for six-month U.S. Treasury bills,

    • – the six-month interbank rate in Germany,

    • – the midpoint between the bid and offered rate on six-month Treasury bills in France,

    • – the average rate for newly issued bank CDs in Japan with a maturity of between 150 days and 180 days,

    • – the six-month interbank rate in the United Kingdom, and

  • (ii) the percentage weight of that currency in the valuation of the SDR on that business day, calculated by using the same amounts and exchange rates for currencies as are employed by the Fund for calculating the value of the SDR in terms of the U.S. dollar on that day.

The applicable interest rate shall be the sum of the products so calculated, rounded to two decimal places.

(b) The amount of interest payable in respect of each drawing shall be calculated on an actual day basis and shall be paid on all outstanding drawings under this agreement promptly after June 30 and December 31 of each year.

5. (a) Payments of principal and interest shall be made in SDRs or in other media as may be agreed between the Trustee and the Government of China.

(b) Payments in SDRs shall be made by crediting China’s holdings account in the Special Drawing Rights Department. Payments in other media shall be made to an account specified by the Government of China.

6. (a) The Government of China shall have the right to transfer at any time all or part of any claim to any member of the Fund, to the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1, or to any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement.

(b) The transferee shall acquire all the rights of the Government of China under this agreement with respect to repayment of and interest on the transferred claim.

7. At the request of the Government of China, calls on its commitment to meet drawings may be suspended temporarily at any time prior to June 30, 1999, subject to the provisions of Section III, paragraph 4(b) and (c) of the Instrument.

8. Unless otherwise agreed between the Trustee and the Government of China, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund for the third business day of the Fund before the value date of the transfer, exchange or payment.

9. If the Fund changes the method of valuing the SDR, all transfers, exchanges and payments of principal and interest made three or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

10. Any question arising hereunder shall be settled by mutual agreement between the Government of China and the Trustee.

If the foregoing proposal is acceptable to the Government of China, this proposal and the duly authenticated reply of the Government of China accepting the proposal shall constitute an agreement between the Government of China and the Trustee, which shall enter into effect on the date the Trustee acknowledges receipt of that communication.*

Central Bank of Egypt

Pursuant to Section III, Paragraph 2 of the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for borrowing from the Central Bank of Egypt in terms of the draft agreement set out in the attachment to EBS/94/115, and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement.

Decision No. 10709-(94/52) ESAF

June 7, 1994

Attachment to EBS/94/115

Enhanced Structural Adjustment Facility: Proposed Borrowing Agreement with the Central Bank of Egypt

I have been authorized to propose on behalf of the International Monetary Fund (the “Fund”) as Trustee (the “Trustee”) of the Enhanced Structural Adjustment Facility Trust (the “Trust”) that the Central Bank of Egypt (the “Bank”) agree to lend to the Fund as Trustee for the purpose of providing resources to the Loan Account of that Trust, in accordance with the terms of the Instrument establishing the Trust (the “Instrument”) adopted by the Executive Board of the Fund by Decision No. 8759-(87/176) ESAF, adopted December 18, 1987, as amended. The amount of the loan is to be the equivalent of SDR 100 million and the terms and conditions of this loan shall be as follows:

1. (a) The Trustee may make drawings under this agreement at any time during the period from the effective date of this agreement through December 31, 1999, upon giving the Bank at least three business days (Washington, D.C.) notice by tested telex.

(b) If any installment of principal or interest is not paid to the Bank within a period of ten days after its due date, the Trustee shall not make further drawings under this agreement pending consultations with the Bank on this matter. However, the Trustee may resume drawings under this agreement once arrears to the Bank have been discharged.

2. (a) The amount of each drawing shall be denominated in SDRs. Unless otherwise agreed between the Trustee and the Bank, the amount shall be paid by the Bank, on the value date specified in the Trustee’s notice, by transfer of SDRs to an account specified by the Trustee.

(b) The Trustee shall issue to the Bank a non-negotiable certificate evidencing its claim on the Trust resulting from a drawing outstanding under this agreement.

3. (a) Each drawing shall be repaid in ten equal semiannual installments beginning five and one-half years and ending ten years after the date of the drawing. Repayments by the Trust shall be made on the relevant maturity date.

(b) By agreement between the Bank and the Trustee, any drawing or part thereof may be repaid by the Trustee at any time in advance of maturity.

(c) If a drawing matures on a date that is not a business day of the Fund, the maturity date shall be on the preceding business day.

4. (a) The rate of interest applicable to each drawing shall be calculated at the time of the drawing and at intervals of six calendar months thereafter. The amount outstanding in respect of each drawing, including any amount that may not have been paid on its due date, shall bear interest at an annual rate determined by the Trustee at the time of the calculation from the product of:

  • (i) the interest rates on domestic instruments in each currency included in the SDR basket, as reported to the Trustee by each reporting agency, on the business day of the Fund referred to in paragraph 8, as follows:

    • – the bond equivalent yield for six-month U.S. Treasury bills,

    • – the six-month interbank rate in Germany,

    • – the midpoint between the bid and offered rate on six-month Treasury bills in France,

    • – the average rate for newly issued bank CDs in Japan with a maturity of between 150 days and 180 days,

    • – the six-month interbank rate in the United Kingdom, and

  • (ii) the percentage weight of that currency in the valuation of the SDR on that business day, calculated by using the same amounts and exchange rates for currencies as are employed by the Fund for calculating the value of the SDR in terms of the U.S. dollar on that day.

The applicable interest rate shall be the sum of the products so calculated, rounded to two decimal places.

(b) The amount of interest payable in respect of each drawing shall be calculated on an actual day basis and shall be paid on all outstanding drawings under this agreement promptly after June 30 and December 31 of each year.

5. (a) Payments of principal and interest shall be made in SDRs, or in other media as may be agreed between the Trustee and the Bank.

(b) Payments in SDRs shall be made by crediting Egypt’s holdings account in the Special Drawing Rights Department. Payments in other media shall be made to an account specified by the Bank.

6. (a) The Bank shall have the right to transfer at any time all or part of any claim to any member of the Fund, to the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1, or to any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement.

(b) The transferee shall acquire all the rights of the Bank under this agreement with respect to repayment of and interest on the transferred claim.

7. At the request of the Bank, calls on its commitment to meet drawings may be suspended temporarily at any time prior to June 30, 1999, subject to the provisions of Section III, paragraph 4(b) and (c) of the Instrument.

8. Unless otherwise agreed between the Trustee and the Bank, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund for the third business day of the Fund before the value date of the transfer, exchange or payment.

9. If the Fund changes the method of valuing the SDR, all transfers, exchanges and payments of principal and interest made three or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

10. Any question arising hereunder shall be settled by mutual agreement between the Bank and the Trustee.

If the foregoing proposal is acceptable to the Bank, this proposal and the duly authenticated reply of the Bank accepting the proposal shall constitute an agreement between the Bank and the Trustee, which shall enter into effect on the date the Trustee acknowledges receipt of that communication.*

Caisse Française de Développement

Pursuant to Section III, paragraph 2 of the Instrument to establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for borrowing from the Caisse Française de Développement in terms of the draft agreement set out in the attachment to EBS/94/223, and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement.

Decision No. 10844-(94/104) ESAF

November 23. 1994

Attachment to EBS/94/223

Enhanced Structural Adjustment Facility: Proposed Borrowing Agreement with the Caisse Française de Développement

I have been authorized to propose on behalf of the International Monetary Fund (the “Fund”) as Trustee of the Enhanced Structural Adjustment Facility Trust (the “Trust”) that the Caisse Française de Développement (“CFD”) agree to lend to the Fund as Trustee for the purposes of providing resources to the Loan Account of that Trust, in accordance with the Instalment establishing the Trust (the “Instrument”) adopted by the Executive Board of the Fund by Decision No. 8759-(87/176) ESAF, adopted December 18, 1987, as amended. The purpose of this agreement is to set forth the terms and conditions, as authorized by Section III, paragraph 2 of the Instrument attached hereto, for the loan by CFD to the Fund as Trustee.

1. The amount of the loan shall be the equivalent of SDR 750 million.

2. (a) The Trustee may make drawings under this agreement at any time during the period from the effective date of this agreement through December 31, 1999, upon giving CFD at least ten business days (Washington, D.C.) notice by tested telex, provided that the drawdown date is a date that is a business day in Frankfurt, London, New York, Paris, and Tokyo and that total drawings may not exceed SDR 250 million until June 30, 1996 and SDR 500 million until June 30, 1997. Under exceptional circumstances, a drawing may be canceled by the Trustee or CFD within five business days (Washington, D.C.) after notice of the drawing is given.

(b) If any installment of principal or interest is not paid to CFD within a period of ten days after its due date, the Trustee shall not make further drawings under this agreement pending consultations with CFD on the matter. However, the Trustee may resume drawings under this agreement once arrears to CFD have been discharged.

(c) The Trustee shall seek normally to make drawings in amounts not less than SDR 20 million (unless otherwise agreed between CFD and the Trustee) and shall endeavor not to make more than twelve drawings during any calendar year.

3. (a) The amount of each drawing shall be denominated in SDRs. Unless otherwise agreed between CFD and the Trustee, the amount of each drawing shall be disbursed by CFD, on the drawdown date specified in the Trustee’s notice, by transfer of the equivalent amount of U.S. dollars, deutsche mark, Japanese yen, French francs, and pounds sterling, in proportion to the amounts of each currency unit in the SDR, to the accounts of the Trust as specified in the Trustee’s notice.

(b) Upon request, the Trustee shall issue to CFD a non-negotiable certificate evidencing its claim on the Trust resulting from a drawing outstanding under this agreement.

4. (a) Each drawing shall be repaid in ten equal semiannual installments beginning five and one-half years and ending ten years after the date of the drawing.

(b) Any drawing or part thereof may be repaid by the Trustee at any time in advance of maturity only by agreement between CFD and the Trustee.

(c) Unless otherwise agreed, if a drawing matures or a payment of interest is due on a date that is not a business day in Frankfurt, London, New York, Paris, and Tokyo, the payment date shall be the next business day that is a business day in Frankfurt, London, New York, Paris, and Tokyo.

5. (a) Interest on the amount outstanding in respect of each drawing shall be computed at an annual rate determined by the Trustee at the time each drawing is made and at intervals of six calendar months thereafter, from the product of:

  • (i) the interest rates on domestic instruments in each currency included in the SDR basket, as reported to the Trustee by each reporting agency, on the business day of the Fund referred to in paragraph 9, as follows:

    • – the bond equivalent yield for six-month U.S. Treasury bills,

    • – the six-month interbank rate in Germany,

    • – the midpoint between the bid and offered rate on six-month Treasury bills in France,

    • – the average rate for newly issued bank CDs in Japan with maturity of between 150 and 180 days,

    • – the six-month interbank rate in the United Kingdom, and

  • (ii) the percentage weight of that currency in the valuation of the SDR on that business day, calculated by using the same amounts and exchange rates for currencies as are employed by the Fund for calculating the value of the SDR in terms of the U.S. dollar on that day.

The applicable interest rate shall be the sum of the products so calculated, rounded to two decimal places.

(b) The CFD shall subsidize the interest payable on amounts outstanding in respect of each drawing up to a cumulative amount equivalent to SDR 250 million. For this purpose, the difference between the interest computed in accordance with paragraph 5.a. and the interest payable by the Trustee on amounts outstanding in respect of each drawing in accordance with paragraph 5.c., shall be counted toward the interest subsidy.

(c) Until the date when the interest subsidy reaches a cumulative amount equivalent to SDR 250 million, the amounts outstanding with respect to each drawing shall bear interest at a rate of one half of one percent per annum; provided, however, that if the rate of interest on Trust loans may need to be adjusted to exceed the rate of one half of one percent per annum in any interest period under Section IV, paragraph 5, of the Instrument, the CFD and the Trustee shall review the matter and shall give consideration to an increase in the rate of interest to apply to amounts outstanding during that interest period of the Trust. Such review shall include consideration of the possible implications of any such increase for borrowers from the Trust and for the operation of the Trust. The interest rate applied to amounts outstanding during any interest period of the Trust shall in no event exceed the rate of interest on Trust loans during that interest period.

(d) From the date on which the interest subsidy has reached a cumulative amount of SDR 250 million, the amounts outstanding with respect to each drawing shall bear interest at the annual rate determined by the Trustee in accordance with paragraph 5.a.

(e) Interest in respect of each drawing shall be paid six calendar months after the drawdown date and every six calendar months thereafter. The amount of interest payable shall be calculated on an actual day basis and using a 360 day year, and shall be paid in respect of the period from and including the drawdown date to but excluding the first interest payment date and, for each successive period, from and including the previous interest payment date to but excluding the next interest payment date.

6. Unless otherwise agreed between CFD and the Trustee, payments by the Trustee of principal and interest with respect to each drawing shall be made by crediting the equivalent amount of U.S. dollars, deutsche mark, Japanese yen, French francs, and pounds sterling, in proportion to the amounts of each currency unit in the SDR, to the accounts of CFD as specified by CFD in advance of such payments; the Trustee shall instruct its paying agent to confirm to the institution(s) to which payment is to be made the amounts of currency to be paid and the value date of the payment, such confirmation to be received not later than 11 a.m. in Paris on the value date of the payment.

7. (a) CFD shall have the right to transfer at any time all or part of any claim to any member of the Fund, to the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1, or to any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement.

(b) The transferee shall acquire all the rights of CFD under this agreement with respect to repayment of and interest on the transferred claim.

8. At the request of CFD, calls on its commitment to meet drawings may be suspended temporarily at any time prior to June 30, 1999, subject to the provisions of Section III, paragraphs 4(b) and (c) of the Instrument.

9. Unless otherwise agreed between the Trustee and CFD, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund for the third business day of the Fund before the value date of the transfer, exchange, or payment.

10. If the Fund changes the composition of the SDR or the method of valuing the SDR, all transfers, exchanges, and payments of principal and interest made three or more business days of the Fund after the effective date of the change shall be made on the basis of the new composition or method of valuation; provided, however, that no such change shall affect any drawing for which notice has been given for drawdown subsequent to the change.

11. Any question arising hereunder shall be settled by mutual agreement between CFD and the Trustee.

If the foregoing proposal is acceptable to CFD, this communication and your duly authenticated reply accepting this proposal shall constitute an agreement between CFD and the Trustee, which shall enter into effect on the date the Trustee acknowledges receipt of your reply.*

Ufficio Italiano dei Cambi

Pursuant to Section III, Paragraph 2 of the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for borrowing from the Ufficio Italiano dei Cambi in terms of the draft agreement set out in the attachment to EBS/94/173, and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement.

Decision No. 10779-(94/81) ESAF

September 7, 1994

Attachment to EBS/94/173

Enhanced Structural Adjustment Facility: Proposed Borrowing Agreement with the Ufficio Italiano dei Cambi

I have been authorized to propose on behalf of the International Monetary Fund (the “Fund”) as Trustee of the Enhanced Structural Adjustment Facility Trust (the “Trust”) that the Ufficio Italiano dei Cambi (“UIC”) agree to lend to the Fund as Trustee for the purpose of providing resources to the Loan Account of that Trust, in accordance with the terms of the Instrument establishing the Trust (the “Instrument”) adopted by the Executive Board of the Fund by Decision No. 8759-(87/176) ESAF, adopted December 18, 1987, as amended. The amount of the loan is to be the equivalent of SDR 210 million and the terms and conditions of this loan shall be as follows:

1. (a) The Trustee may make drawings under this agreement at any time during the period from the effective date of this agreement through December 31, 1999, upon giving UIC at least five business days (Rome) notice by tested telex.

(b) If any installment of principal or interest is not paid to UIC within a period of ten days after its due date, the Trustee shall not make further drawings under this agreement pending consultations with the UIC on this matter. However, the Trustee may resume drawings under this agreement once arrears to UIC have been discharged.

2. (a) The amount of each drawing shall be denominated in SDRs. Unless otherwise agreed between the Trustee and UIC, the amount shall be paid by UIC, on the value date specified in the Trustee’s notice, by transfer of SDRs to an account specified by the Trustee.

(b) Upon request, the Trustee shall issue to UIC a non-negotiable certificate evidencing its claim on the Trust resulting from a drawing outstanding under this agreement.

3. (a) Each drawing shall be repaid in ten equal semiannual installments beginning five and one-half years and ending ten years after the date of the drawing. Repayments by the Trust shall be made on the relevant maturity date.

(b) By agreement between UIC and the Trustee, any drawing or part thereof may be repaid by the Trustee at any time in advance of maturity.

(c) If a drawing matures on a date that is not a business day of the Fund, the maturity date shall be on the preceding business day.

4. (a) The rate of interest applicable to each drawing shall be calculated at the time of the drawing and at intervals of six calendar months thereafter. The amount outstanding in respect of each drawing shall bear interest at an annual rate determined by the Trustee at the time of the calculation from the product of:

  • (i) the interest rates on domestic instruments in each currency included in the SDR basket, as reported to the Trustee by each reporting agency, on the business day of the Fund referred to in paragraph 8, as follows:

    • – the bond equivalent yield for six-month U.S. Treasury bills,

    • – the six-month interbank rate in Germany,

    • – the midpoint between the bid and offered rate on six-month Treasury bills in France,

    • – the average rate for newly issued bank CDs in Japan with a maturity of between 150 days and 180 days,

    • – the six-month interbank rate in the United Kingdom, and

  • (ii) the percentage weight of that currency in the valuation of the SDR on that business day, calculated by using the same amounts and exchange rates for currencies as are employed by the Fund for calculating the value of the SDR in terms of the U.S. dollar on that day.

The applicable interest rate shall be the sum of the products so calculated, rounded to two decimal places.

(b) The amount of interest payable in respect of each drawing shall be calculated on an actual day basis and shall be paid on all outstanding drawings under this agreement promptly after June 30 and December 31 of each year.

5. (a) Payments of principal and interest shall be made in SDRs, or in other media as may be agreed between the Trustee and UIC.

(b) Payments in SDRs shall be made by crediting Italy’s holdings account in the Special Drawing Rights Department. Payments in other media shall be made to an account specified by UIC.

6. (a) UIC shall have the right to transfer at any time all or part of any claim to any member of the Fund, to the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1, or to any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement.

(b) The transferee shall acquire all the rights of UIC under this agreement with respect to repayment of and interest on the transferred claim.

7. At the request of UIC, calls on its commitment to meet drawings may be suspended temporarily at any time prior to June 30, 1999, subject to the provisions of Section III, paragraph 4(b) and (c) of the Instrument.

8. Unless otherwise agreed between the Trustee and UIC, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund for the third business day of the Fund before the value date of the transfer, exchange or payment.

9. If the Fund changes the method of valuing the SDR, all transfers, exchanges and payments of principal and interest made three or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

10. Any question arising hereunder shall be settled by mutual agreement between UIC and the Trustee.

If the foregoing proposal is acceptable to UIC, this proposal and the duly authenticated communication by which the UIC notifies the Trustee of the completion of the required legislative procedures and accepts the proposal shall constitute an agreement between UIC and the Trustee, which shall enter into effect on the date the Trustee acknowledges receipt of that communication.*

Export-Import Bank of Japan

Pursuant to Section III, Paragraph 2 of the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for borrowing from the Export-Import Bank of Japan in terms of the draft agreement set out in Attachment I to EBS/94/188, and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement.

Decision No. 10796-(94/89) ESAF

September 21, 1994

Attachment I to EBS/94/188

Enhanced Structural Adjustment Facility: Proposed Borrowing Agreement with the Export-Import Bank of Japan

I have been authorized to propose on behalf of the International Monetary Fund (the “Fund”) as Trustee of the Enhanced Structural Adjustment Facility Trust (the “Trust”) that the Export-Import Bank of Japan (the “Bank”) agree to lend to the Fund as Trustee (the “Trustee”) for the purpose of providing resources to the Loan Account of that Trust, in accordance with Decision No. 8759-(87/176) ESAF, adopted December 18, 1987 and the terms of the Instrument establishing the Trust (the “Instrument”) adopted by that Decision, as amended. The purpose of this agreement is to set forth the terms and conditions, as authorized by Section III, Paragraph 2 of the Instrument attached hereto, for the loan by the Bank to the Fund as Trustee.

1. The amount of the loan shall be up to SDR 2,150 million.

2. The Trustee may make drawings under this agreement at any time during the period from the effective date of this agreement through December 31 1999.

(a) Unless otherwise agreed between the Trustee and the Bank, the Trustee shall give notice to the Bank on the occasion of each drawing of the amount it intends to draw, the drawdown date, and the maturity as follows:

  • (i) An initial notice of each drawing, to be received by the Bank not later than six business days in Tokyo prior to the swap date; under exceptional circumstances, the Trustee may cancel this notice, and the Bank may similarly notify the Trustee that the drawing cannot be made on the intended drawdown date, within five business days in Tokyo after the initial notice is received by the Bank.

  • (ii) A final notice of each drawing, to be received by the Bank not later than one business day in Tokyo prior to the swap date. This notice shall constitute irrevocable and binding notice of call by the Trustee upon the Bank.

(b) Unless otherwise agreed between the Trustee and the Bank, the Trustee shall seek normally to make drawings within the range of SDR 25 million to SDR 200 million and shall endeavor to make not more than twelve drawings during any calendar year.

(c) If any amount of principal or interest is not paid to the Bank within a period of ten days after the due date, the Trustee shall not make further drawings or give initial or final notice of a drawing under this agreement pending consultations with the Bank on the matter. However, the Trustee may resume drawings under this agreement once any arrears to the Bank have been discharged.

3. The Trustee shall make drawings on the commitment of the Bank so as to maintain over time broad proportionality of these drawings on the Bank relative to drawings on the commitments of all lenders to the Loan Account of the Trust, provided that the Trustee will aim to draw fully all loans entered into prior to November 30, 1993 before calling on loans entered into after that date.

4. The amount of each drawing shall be denominated in SDRs. Unless otherwise agreed between the Trustee and the Bank, the amount of each drawing shall be disbursed by the Bank, on the drawdown date specified in the Trustee’s final notice, by transfer of the equivalent amount of U.S. dollars, deutsche mark, Japanese yen, French francs and pounds sterling, in proportion to the amounts of each currency unit in the SDR, to the accounts of the Trust as specified in the Trustee’s notice.

5. (a) Each drawing shall be repaid in ten equal semiannual installments beginning five and one-half years and ending ten years after the date of the drawing. Repayments by the Trust shall be made on the relevant maturity date.

(b) By agreement between the Bank and the Trustee, any drawing or part thereof may be repaid by the Trustee at any time in advance of maturity.

6. (a) The Trustee shall pay interest in respect of each drawing to the Bank on the interest payment date. In case the Trustee fails to pay any amount of principal on the maturity date, interest shall continue to accrue on such overdue amount of principal at the rate of interest calculated as provided in Paragraph 6(b) with respect to the interest period ending immediately prior to the maturity date, applied from (and including) the maturity date to (but excluding) the date of actual payment. The amount of interest payable for each interest period shall be calculated on an actual day basis and using a 360 day year.

(b) The amount outstanding in respect of each drawing shall bear interest at an annual rate calculated by the Trustee at the commencement of each interest period, from the product of:

  • (i) the interest rates on domestic instruments in each currency included in the SDR basket, as reported to the Trustee by each reporting agency, on the combined interest rate computation date, as follows:

    • – the bond equivalent yield for six-month U.S. Treasury bills,

    • – the six-month interbank rate in Germany,

    • – the six-month rate for interbank loans against private paper in France,

    • – the average rate for newly issued bank CDs in Japan with a maturity of between 150 and 180 days,

    • – the six-month interbank rate in the United Kingdom, and

  • (ii) the percentage weight of that currency in the valuation of the SDR on that combined interest rate computation date, calculated by using the same amounts and exchange rates for currencies as are employed by the Fund for calculating the value of the SDR in terms of the U.S. dollar on that day.

The applicable interest rate shall be the sum of the products so calculated, rounded to two decimal places of a percentage point.

7. Unless otherwise agreed between the Trustee and the Bank, payments by the Trustee of principal and interest with respect to each drawing shall be made with good value on the value date by crediting the equivalent amount of U.S. dollars, deutsche mark, Japanese yen, French francs and pounds sterling, in proportion to the amounts of each currency unit in the SDR, to the accounts of the Bank in Tokyo as specified by the Bank in advance of such payments; the Trustee shall instruct its paying agent to confirm to the institutions to which payment is to be made the amounts of currency to be paid and the value date of the payment, such confirmation to be received not later than 12:00 noon in Tokyo on the value date of the payment. Such confirmation shall not constitute payment by the Trustee.

8. (a) The Bank shall have the right to transfer at any time all or part of any claim to any member of the Fund, to the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1, or to any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement.

(b) The transferee shall acquire all the rights of the Bank under this agreement with respect to repayment of and interest on the transferred claim.

9. At the request of the Bank, calls on its commitment to meet drawings may be suspended temporarily at any time prior to June 30, 1999, subject to the provisions of Section III, Paragraphs 4(b) and (c). of the Instrument.

10. Unless otherwise agreed between the Trustee and the Bank, all transfers, exchanges and payments of principal and interest shall be made at the exchange rates for the relevant currencies in terms of the SDR calculated by the Fund on the exchange rate computation date.

11. If the Fund changes the composition of the SDR or the method of valuing the SDR, all transfers, exchanges and payments of principal and interest made three or more business days of the Fund after the effective date of the change shall be made on the basis of the new composition or method of valuation; provided, however, that no such change shall affect any drawing for which the Trust has given final notice to the Bank for drawdown subsequent to the change.

12. For the purposes of this agreement, the terms “business day”, “LIBOR business day”, “calendar month”, “calendar year”, “swap date”, “combined interest rate computation date”, “exchange rate computation date”, “drawdown date” “six-month anniversary date”, “interest period”, “interest payment date”, and “maturity date” shall have the meanings as defined in the Annex to this agreement.

13. The Managing Director of the Trustee and the Bank shall establish such procedural and technical arrangements as are necessary for the implementation of this agreement.

14. This agreement and any operations under it may be reviewed upon request by the Bank or the Trustee.

15. Any question arising hereunder shall be settled by mutual agreement between the Bank and the Trustee.

If the foregoing proposal is acceptable to the Bank, this communication and your duly authenticated reply accepting this proposal shall constitute an agreement between the Bank and the Trustee, which shall enter into effect on the date the Trustee acknowledges receipt of your reply.*

Annex

Definitions

(a) “Business day”: a day on which commercial banks are open for domestic and foreign exchange business in the relevant markets (one or more of the following markets as specified below: Frankfurt, London, New York, Paris and Tokyo).

(b) “LIBOR business day”: a day on which dealings in deposits are carried on in the London interbank Eurocurrency Market.

(c) “Calendar month”: the period from a date in one month to the same date in the succeeding month, provided that if the first date is an end-month date, the date in the succeeding month shall also be an end-month date.

(d) “Calendar year”: a period consisting of twelve calendar months.

(e) “Swap date”: the date one business day in Tokyo prior to the initial combined interest rate computation date in respect of a drawdown, provided that if that date is not a business day in Tokyo, Frankfurt, Paris and London, the swap date shall be the first preceding day that is a business day both in Tokyo and in the market(s) for which that date is not a business day.

(f) “Combined interest rate computation date”: the date two LIBOR business days prior to the commencement of the interest period to which such computation applies.

(g) “Exchange rate computation date”: the date three business days of the Fund prior to the value date of the transfer, exchange or payment, which is also a business day in Tokyo and London. If the date three business days of the Fund prior to the value date of the transfer, exchange or payment is not a business day in Tokyo and London, it shall be the first preceding business day of the Fund that is also a business day in Tokyo and London.

(h) “Drawdown date”: a date that is a business day in Tokyo, New York, Frankfurt, Paris and London.

(i) “Six-month anniversary date”: the date six calendar months after the drawdown date, or after subsequent six-month anniversary dates.

(j) “Interest period”: for each drawdown, the period from (and including) the drawdown date to (but excluding) the first interest payment date or the period from (and including) an interest payment date to (but excluding) the next succeeding interest payment date for each drawdown.

(k) “Interest payment date”: the six-month anniversary date of the drawdown date for each drawing, provided that if that date is not a business day in Tokyo, it shall be the first succeeding business day in Tokyo. If on such interest payment date the domestic market for one or more currencies used in making an interest payment is closed, payment in that currency or currencies shall be made on the next succeeding business day in that market(s) which is also a business day in Tokyo.

(l) “Maturity date”: the eleventh to the twentieth six-month anniversary date for each drawing, provided that if that date is not a business day in Tokyo, it shall be the first succeeding business day in Tokyo. If on such maturity date the domestic market for one or more currencies used in making a principal repayment is closed, payment in that currency or currencies shall be made on the next succeeding business day in that market(s) which is also a business day in Tokyo.

Attachment II to EBS/94/188

SUBJECT: ESAF—Borrowing Agreement Between the Export-Import Bank of Japan (“Bank”) and the Fund as Trustee of the ESAF Trust (“Trustee”): Procedural and Technical Matters

The Managing Director of the Trustee and the Bank agree that the understandings set out below will apply to certain procedural and technical matters relating to implementation of the borrowing agreement dated October, 1994.

1. The borrowing agreement provides for certain formal notices as regards drawings under the agreement (Paragraph 2). In addition, unless otherwise agreed, the Fund staff will provide advance estimates to the Bank of the amounts the Trustee expects to draw and the drawdown date as follows:

  • (i) The Trustee shall provide to the Bank at the end of each month a tentative and preliminary estimate of aggregate monthly drawings over the following six-month period, including the dates for individual drawings in the first two months of that period. This estimate would be based on the best information available to the staff at the time.

  • (ii) An advance estimate of the amount of each drawing and the intended drawdown date will be transmitted by the Trustee at least one calendar month in advance of the drawdown date. This estimate would be reasonably firm, but not certain. At such time, the final notice date would also be established.

  • (iii) At the time the Trustee gives the Bank the initial notice for each drawing, it shall also confirm the date final notice will be received by the Bank and indicate the amount of the drawing in terms of the SDR and the amount in each component currency of the SDR, and the account or accounts to which the Bank shall disburse the proceeds of the loan.

  • (iv) In providing any notice or cancellation of notice, each drawing shall be uniquely identified by its amount, drawdown date and maturity.

  • (v) Notice of the applicable interest rate for an interest period (together with calculations) should be received by the Bank not later than one day after the combined interest rate computation date. Notice of the exchange rates for the relevant currencies in terms of the SDR relevant to all transfers, exchanges and payments of principal and/or interest (together with calculations) should be received by the Bank not later than one business day in Tokyo prior to the value date of the particular transfer, exchange or payment.

  • (vi) Notice of the remittance and the name of the remitting bank and the amount of the transfer should be received by the Bank prior to the value date of the payment.

2. With respect to confirmations under Paragraph 7 of the borrowing agreement, such confirmations to the institutions to which payment is to be made shall also include the beneficiary’s name and the manner of settlement with these institutions.

3. With respect to various calculations to be made under the borrowing agreement, it is understood that:

  • (i) The minimum unit of the SDR is to follow the IMF’s practice, i.e., there would be no fractional units.

  • (ii) Any fractional sum of interest less than the minimum unit of the SDR under (i) above is to be rounded.

  • (iii) The minimum unit of any currency in the SDR basket is to follow the domestic practice in each currency.

  • (iv) Any fractional sum less than the minimum unit of the respective currencies in the SDR basket in converting SDRs into any currency or currencies is to be rounded.

    (Example: SDR 10 $5.72 + DM4.53 + ¥318 + FF8.00 + STGO.81)

  • (v) Rounding shall follow the Fund’s practice, which is to round up to the nearest unit if the fractional part is 0.5 or greater and to round down otherwise.

4. It is understood that communications between the Bank and the Trustee with regard to the agreement shall be transmitted in English by tested telex to the headquarters of the Bank and the Trustee, and that the Trustee’s communications to the Bank are to be repeated to the Bank’s Representative Office in Washington, D.C.

Bank of Korea

Pursuant to Section III, Paragraph 2 of the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for borrowing from the Bank of Korea in terms of the draft agreement set out in the attachment to EBS/94/119, and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement.

Decision No. 10712-(94/53) ESAF

June 8, 1994

Attachment to EBS/94/119

Enhanced Structural Adjustment Facility: Proposed Borrowing Agreement with the Bank of Korea

I have been authorized to propose on behalf of the International Monetary Fund (the “Fund”) as Trustee (the “Trustee”) of the Enhanced Structural Adjustment Facility Trust (the “Trust”) that the Bank of Korea (the “Bank”) agree to lend to the Fund as Trustee for the purpose of providing resources to the Loan Account of that Trust, in accordance with the terms of the Instrument establishing the Trust (the “Instrument”) adopted by the Executive Board of the Fund by Decision No. 8759-(87/176) ESAF, adopted December 18, 1987, as amended. The amount of the loan is to be the equivalent of SDR 27.7 million, and the terms and conditions of this loan shall be as follows:

1. (a) The Trustee may make drawings under this agreement at any time during the period from the effective date of this agreement through December 31, 1999, upon giving the Bank at least five business days (Washington, D.C.) notice by tested telex.

(b) If any installment of principal or interest is not paid to the Bank within a period of ten days after its due date, the Trustee shall not make further drawings under this agreement pending consultations with the Bank on this matter. However, the Trustee may resume drawings under this agreement once arrears to the Bank have been discharged.

2. (a) The amount of each drawing shall be denominated in SDRs. Unless otherwise agreed between the Trustee and the Bank, the amount shall be paid by the Bank, on the value date specified in the Trustee’s notice, by transfer of the equivalent amount of U.S. dollars to the account of the Trust at the Federal Reserve Bank of New York, New York.

(b) Upon request, the Trustee shall issue to the Bank a non-negotiable certificate evidencing its claim on the Trust resulting from a drawing outstanding under this agreement.

3. (a) Each drawing shall be repaid in ten equal semiannual installments beginning five and one-half years and ending ten years after the date of the drawing. Repayments by the Trust shall be made on the relevant maturity date.

(b) By agreement between the Bank and the Trustee, any drawing or part thereof may be repaid by the Trustee at any time in advance of maturity.

(c) If a drawing matures on a date that is not a business day of the Fund, the maturity date shall be on the preceding business day.

4. (a) The rate of interest applicable to each drawing shall be calculated at the time of the drawing and at intervals of six calendar months thereafter. The amount outstanding in respect of each drawing shall bear interest at an annual rate determined by the Trustee at the time of the calculation from the product of:

  • (i) the interest rates on domestic instruments in each currency included in the SDR basket, as reported to the Trustee by each reporting agency, on the business day of the Fund referred to in paragraph 8, as follows:

    • – the bond equivalent yield for six-month U.S. Treasury bills,

    • – the six-month interbank rate in Germany,

    • – the midpoint between the bid and offered rate on six-month Treasury bills in France,

    • – the average rate for newly issued bank CDs in Japan with a maturity of between 150 days and 180 days,

    • – the six-month interbank rate in the United Kingdom, and

  • (ii) the percentage weight of that currency in the valuation of the SDR on that business day, calculated by using the same amounts and exchange rates for currencies as are employed by the Fund for calculating the value of the SDR in terms of the U.S. dollar on that day.

The applicable interest rate shall be the sum of the products so calculated, rounded to two decimal places.

(b) The amount of interest payable in respect of each drawing shall be calculated on an actual day basis and shall be paid on all outstanding drawings under this agreement promptly after June 30 and December 31 of each year.

5. (a) Payments of principal and interest shall be made in U.S. dollars, or in other media as may be agreed between the Trustee and the Bank.

(b) Payments in U.S. dollars shall be made by crediting the amount due to the account of the Bank at the Federal Reserve Bank of New York, New York. Payments in SDRs shall be made by crediting Korea’s holdings account in the Special Drawing Rights Department. Payments in other currencies shall be made to an account specified by the Bank.

6. (a) The Bank shall have the right to transfer at any time all or part of any claim to any member of the Fund, to the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1, or to any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement.

(b) The transferee shall acquire all the rights of the Bank under this agreement with respect to repayment of and interest on the transferred claim.

7. At the request of the Bank, calls on its commitment to meet drawings may be suspended temporarily at any time prior to June 30, 1999, subject to the provisions of Section III, paragraph 4(b) and (c) of the Instrument.

8. Unless otherwise agreed between the Trustee and the Bank, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund for the third business day of the Fund before the value date of the transfer, exchange, or payment.

9. If the Fund changes the method of valuing the SDR, all transfers, exchanges and payments of principal and interest made three or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

10. Any question arising hereunder shall be settled by mutual agreement between the Bank and the Trustee.

If the foregoing proposal is acceptable to the Bank, this communication and your duly authenticated reply accepting this proposal shall constitute an agreement between the Bank and the Trustee, which shall enter into effect on the date the Trustee acknowledges receipt of your reply.*

Bank of Norway

Pursuant to Section III, Paragraph 2 of the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for borrowing from the Bank of Norway in terms of the draft agreement set out in the attachment to EBS/94/120, and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement.

Decision No. 10713-(94/53) ESAF

June 8, 1994

Attachment to EBS/94/120

Enhanced Structural Adjustment Facility: Proposed Borrowing Agreement with the Bank of Norway

I have been authorized to propose on behalf of the International Monetary Fund (the “Fund”) as Trustee of the Enhanced Structural Adjustment Facility Trust (the “Trust”) that the Bank of Norway (the “Bank”) agree to lend to the Fund as Trustee for the purposes of providing resources to the Loan Account of that Trust, in accordance with the Instrument establishing the Trust (the “Instrument”) adopted by the Executive Board of the Fund by Decision No. 8759-(87/176) ESAF, adopted December 18, 1987, as amended. The amount of the loan is to be the equivalent of SDR 60 million and the terms and conditions of this loan shall be as follows:

1. (a) The Trustee may make drawings under this agreement at any time during the period from the effective date of this agreement through December 31, 1999, upon giving the Bank at least five business days (Washington, D.C.) notice by tested telex.

(b) If any installment of principal or interest is not paid to the Bank within a period of ten days after its due date, the Trustee shall not make further drawings under this agreement pending consultations with the Bank on the matter. However, the Trustee may resume drawings under this agreement once the arrears to the Bank have been discharged.

2. The amount of each drawing shall be denominated in SDRs. Unless otherwise agreed between the Trustee and the Bank, the amount shall be paid by the Bank, on the value date specified in the Trustee’s notice, by transfer of the equivalent amount of U.S. dollars to the account of the Trust at the Federal Reserve Bank of New York, New York.

3. (a) Each drawing shall be repaid in ten equal semiannual installments beginning five and one-half years and ending ten years after the date of the drawing. Repayments by the Trust shall be made on the relevant maturity date.

(b) By agreement between the Bank and the Trustee, any drawing or part thereof may be repaid by the Trustee at any time in advance of maturity.

(c) If a drawing matures on a date that is not a business day of the Fund, the maturity date shall be on the preceding business day.

4. (a) The rate of interest applicable to each drawing shall be calculated at the time of the drawing and at intervals of six calendar months thereafter. The amount outstanding in respect of each drawing shall bear interest at an annual rate determined by the Trustee at the time of the calculation from the product of:

  • (i) the interest rates on domestic instruments in each currency included in the SDR basket, as reported to the Trustee by each reporting agency, on the business day of the Fund three business days prior to the interest calculation dates referred to in subparagraph (a) above, as follows:

    • – the bond equivalent yield for six-month U.S. Treasury bills,

    • – the six-month interbank rate in Germany,

    • – the midpoint between the bid and offered rate on six-month Treasury bills in France,

    • – the average rate for newly issued bank CDs in Japan with a maturity of between 150 and 180 days,

    • – the six-month interbank rate in the United Kingdom, and

  • (ii) the percentage weight of that currency in the valuation of the SDR on that business day, calculated by using the same amounts and exchange rates for currencies as are employed by the Fund for calculating the value of the SDR in terms of the U.S. dollar on that day.

The applicable interest rate shall be the sum of the products so calculated, rounded to two decimal places.

(b) The amount of interest payable in respect of each drawing shall be calculated on an actual day basis and shall be paid on all outstanding drawings under this agreement promptly after June 30 and December 31 of each year.

5. (a) Payments of principal and interest shall be made in U.S.dollars or in other media as may be agreed between the Trustee and the Bank.

(b) Payments in U.S. dollars shall be made by crediting the amount due to the account of the Bank at the Federal Reserve Bank of New York, New York. Payments in SDRs shall be made by crediting Norway’s holdings account in the Special Drawing Rights Department. Payments in other currencies shall be made to an account specified by the Bank.

6. (a) The Bank shall have the right to transfer at any time all or part of any claim to any member of the Fund, to the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1, or to any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement.

(b) The transferee shall acquire all the rights of the Bank under this agreement with respect to repayment of and interest on the transferred claim.

7. At the request of the Bank, calls on its commitment to meet drawings may be suspended temporarily at any time prior to June 30, 1999, subject to the provisions of Section III, paragraph 4(b) and (c) of the Instrument.

8. Unless otherwise agreed between the Trustee and the Bank, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund for the third business day of the Fund before the value date of the transfer, exchange, or payment.

9. If the Fund changes the method of valuing the SDR, all transfers, exchanges, and payments of principal and interest made three or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

10. Any question arising hereunder shall be settled by mutual agreement between the Bank and the Trustee.

If the foregoing proposal is acceptable to the Bank, this communication and your duly authenticated reply accepting this proposal shall constitute an agreement between the Bank and the Trustee, which shall enter into effect on the date the Trustee acknowledges receipt of your reply.*

OPEC Fund

Pursuant to Section III, Paragraph 2 of the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for borrowing from the OPEC Fund for International Development in terms of the draft agreement set out in the attachment to EBS/94/239, and authorizes the Managing Director to take such act as is necessary to conclude and implement the agreement.

Decision No. 10860-(94/110) ESAF

December 14, 1994

Attachment to EBS/94/239

Enhanced Structural Adjustment Facility: Proposed Borrowing Agreement with the OPEC Fund for International Development

I have been authorized to propose on behalf of the International Monetary Fund (the “IMF”) as Trustee (the “Trustee”) of the Enhanced Structural Adjustment Facility Trust (the “Trust”) that the OPEC Fund for International Development (hereinafter called the OPEC Fund) agree to lend to the IMF as Trustee for the purpose of providing resources to the Loan Account of that Trust, in accordance with the terms of the Instrument establishing the Trust (the “Instrument”) adopted by the Executive Board of the IMF by Decision No. 8759-(87/176) ESAF, adopted December 18, 1987, as amended. The amount of the loan shall be the SDR equivalent of US$50 million and the terms and conditions of the loan shall be as follows:

1. (a) The Trustee may make drawings under this agreement at any time during the period from the effective date of this agreement through December 31, 1999, upon giving the OPEC Fund at least ten business days (Washington, D.C.) notice by tested telex. Under exceptional circumstances, a drawing may be canceled by the Trustee or the OPEC Fund at least five business days (Washington, D.C.) before the date of the drawing.

(b) If any installment of principal or interest is not paid to the OPEC Fund within a period of ten days after its due date, the Trustee shall not make further drawings under this agreement pending consultations with the OPEC Fund on this matter. However, the Trustee may resume drawings under this agreement once arrears to the OPEC Fund have been discharged.

2. The amount of each drawing shall be denominated in SDRs. Unless otherwise agreed between the Trustee and the OPEC Fund, the amount shall be paid by the OPEC Fund, on the value date specified in the Trustee’s notice, by transfer of the equivalent amount of U.S. dollars to an account specified by the Trustee.

3. (a) Each drawing shall be repaid in ten equal semiannual installments beginning five and one-half years and ending ten years after the date of the drawing. Repayments by the Trustee shall be made on the relevant maturity date.

(b) By agreement between the OPEC Fund and the Trustee, any drawing or part thereof may be repaid by the Trustee at any time in advance of maturity.

(c) If a repayment date does not fall due on a business day either of the Trustee or of the place where the repayment is to be made, the repayment shall be made on the preceding business day of both the Trustee and the place of repayment.

4. (a) The rate of interest applicable to each drawing shall be calculated at the time of the drawing and at intervals of six calendar months thereafter. The amount outstanding in respect of each drawing, including any amount that may not have been paid on its due date, shall bear interest at an annual rate determined by the Trustee at the time of the calculation from the product of:

  • (i) the interest rates on domestic instruments in each currency included in the SDR basket, as reported to the Trustee by each reporting agency, on the business day of the Trustee referred to in paragraph 8, as follows:

    • – the bond equivalent yield for six-month U S Treasury bills,

    • – the six-month interbank rate in Germany,

    • – the midpoint between the bid and offered rate on six-month Treasury bills in France,

    • – the average rate for newly issued bank CDs in Japan with a maturity of between 150 days and 180 days,

    • – the six-month interbank rate in the United Kingdom, and

  • (ii) the percentage weight of that currency in the valuation of the SDR on that business day, calculated by using the same amounts and exchange rates for currencies as are employed by the IMF for calculating the value of the SDR in terms of the U S dollar on that day.

The applicable interest rate shall be the sum of the products so calculated, rounded to two decimal places.

(b) The amount of interest payable in respect of each drawing shall be calculated on an actual day basis and shall be paid on all outstanding drawings under this agreement promptly after June 30 and December 31 of each year.

5. (a) Payments of principal and interest shall be made in U S dollars, or in other media as may be agreed between the Trustee and the OPEC Fund.

(b) Payments in U S dollars or other media shall be made to an account specified by the OPEC Fund.

6. (a) The OPEC Fund shall have the right to transfer at any time all or part of any claim to any member of the IMF, to the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1, or to any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the IMF’s Articles of Agreement.

(b) The transferee shall acquire all the rights of the OPEC Fund under this agreement with respect to repayment of and interest on the transferred claim.

7. At the request of the OPEC Fund, calls on its commitment to meet drawings may be suspended temporarily at any time prior to June 30, 1999, subject to the provisions of Section III, paragraph 4(b) and (c) of the Instrument.

8. Unless otherwise agreed between the Trustee and the OPEC Fund, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the IMF for the third business day of the IMF before the value date of the transfer, exchange or payment.

9. If the IMF changes the method of valuing the SDR, all transfers, exchanges and payments of principal and interest made three or more business days of the IMF after the effective date of the change shall be made on the basis of the new method of valuation.

10. Any question arising hereunder shall be settled by mutual agreement between the OPEC Fund and the Trustee.

If the foregoing proposal is acceptable to the OPEC Fund, this proposal and the duly authenticated reply of the OPEC Fund accepting the proposal shall constitute an agreement between the OPEC Fund and the Trustee, which shall enter into effect on the date the Trustee acknowledges receipt of that communication.*

Monetary Authority of Singapore

Pursuant to Section IV, Paragraph 3 of the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for a loan by the Monetary Authority of Singapore to the Subsidy Account of the Trust in the terms of the draft agreement set out in the Attachment to EBS/94/102, and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement.

Decision No. 10684-(94/44) ESAF

May 18, 1994

Attachment to EBS/94/102

Enhanced Structural Adjustment Facility: Proposed Borrowing Agreement with the Monetary Authority of Singapore

I have been authorized to propose on behalf of the International Monetary Fund (the “Fund”) as Trustee (the “Trustee”) of the Enhanced Structural Adjustment Facility Trust (the “Trust”) that the Monetary Authority of Singapore (the “MAS”) agree to lend to the Fund as Trustee for the purpose of providing resources to the Subsidy Account of that Trust, in accordance with Section IV, paragraph 3(b) of the Instrument establishing the Trust (the “Instrument”) adopted by the Executive Board of the Fund by Decision No. 8759-(87/176) ESAF, December 18, 1987, as amended. The amount of the loan is to be the equivalent of SDR 40 million and the terms and conditions of this loan shall be as follows:

1. The date of the drawing shall be agreed between the Trustee and the MAS, but shall in any event not be made later than May 27, 1994. The proceeds of the drawing shall be invested by the Trustee.

2. (a) The amount of the drawing shall be denominated in SDRs. Unless otherwise agreed between the Trustee and the MAS, the amount shall be paid by the MAS on the value date to be agreed, by transfer of the equivalent amount of SDRs to an account specified by the Trustee.

(b) Upon request, the Trustee shall issue to the MAS a nonnegotiable certificate evidencing its claim on the Trust resulting from the drawing outstanding under this Agreement.

3. The drawing shall have a maturity of ten years. If the maturity period does not end on a business day in the place where payment is to be made, the maturity date shall be the next succeeding business day in that place.

4. (a) The drawing shall bear interest at an annual rate of 2 percent per annum.

(b) The amount of interest payable shall be calculated on the basis of the actual number of days that interest has accrued and a 365-day year and shall be paid annually or on the date the principal amount is repaid, whichever is earlier, from the proceeds of the investment.

5. The Trustee shall repay the principal amount of the drawing on the final maturity date applicable to the drawing or on such earlier repayment date as may be established pursuant to paragraph 9 or 10 of this agreement, from the proceeds of the investment.

6. Payments by the Trustee of principal and interest shall be made in SDRs or in other media as agreed between the Trustee and the MAS. Payments in SDRs shall be made by crediting the amount due to Singapore’s holdings account in the Special Drawings Rights Department. Payments in other media shall be made to accounts specified by the MAS.

7. Unless otherwise agreed between the MAS and the Trustee, all transfers and payments of principal and interest shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund for the third business day of the Fund before the value date of the transfer or payment.

8. If the Fund changes the method of valuing the SDR, all transfers, exchanges, and payment of principal and interest made three or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

9. The MAS intends to maintain the drawing outstanding through its final maturity date. However, if the MAS represents that because of Singapore’s balance of payments and reserve position there is a need for the MAS to suspend the drawing and/or to encash all or part of its claim on the Trust, and the Trustee, having given such representation the overwhelming benefit of any doubt, agrees, the drawing shall be suspended and/or the claims shall be encashed in whole or in part in advance of the final maturity date. The MAS agrees to provide the drawing and/or to restore the drawing as soon as practicable in light of developments in Singapore’s balance of payments and reserve position.

10. The Trustee may repay the principal amount of the drawing in part or in full at any time in advance of the final maturity date.

11. Any question arising hereunder shall be settled by mutual agreement between the MAS and the Trustee.

12. If the foregoing proposal is acceptable to the MAS, this communication and your duly authenticated reply accepting the proposal shall constitute an agreement between the MAS and the Trustee, which shall enter into effect on the date the Trustee acknowledges receipt of your reply.*

Government of the Kingdom of Spain

1. Pursuant to Section III, paragraph 2 of the Instrument to establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for borrowing from the Government of the Kingdom of Spain acting through the Instituto Crédito Oficial in terms of the draft agreement set out in Attachment 1 to EBS/95/5, and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement.

2. Pursuant to Section IV, paragraph 3 of the Instrument to establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the draft agreement for an investment by the Government of the Kingdom of Spain acting through the Instituto Crédito Oficial with the Subsidy Account of the Trust as set out in Attachment II to EBS/95/5, and authorizes the Managing Director to take such action as to conclude and implement the agreement.

Decision No 10894-(95/7) ESAF

January 20, 1995

Attachment I to EBS/95/5

Enhanced Structural Adjustment Facility: Proposed Borrowing Agreement with the Instituto de Crédito Oficial as Agent for the Government of Spain

I have been authorized to propose on behalf of the International Monetary Fund (the “Fund”) as Trustee (the “Trustee”) of the Enhanced Structural Adjustment Facility Trust (the “Trust”) that the Government of the Kingdom of Spain acting through the Instituto de Crédito Oficial (hereafter the “ICO”) as its financial agent under the provisions of the Spanish Cabinet of Ministers on July 8, 1994, agree to lend to the Fund as Trustee for the purpose of providing resources to the Loan Account of that Trust, in accordance with the Instrument establishing the Trust (the “Instrument”) adopted by the Executive Board of the Fund by Decision No 8759-(87/176) ESAF, adopted December 18, 1987, as amended. The amount of the loan is to be the equivalent of SDR 67 million and the terms and conditions of this loan shall be as follows:

1. (a) The Trustee may make drawings under this agreement at any time during the period from January 1, 1996 through December 31, 1999, upon giving the ICO initial notice of 30 calendar days, which shall be confirmed by tested telex at least five business days (Washington, D.C.) before the drawing, provided that (i) total drawings may not exceed SDR 16 million until January 1, 1997; SDR 33 million until January 1, 1998; and SDR 50 million until January 1, 1999 and (ii) that there is no more than one drawing per calendar month.

(b) If any installment of principal or interest is not paid within a period of ten days after its due date under this agreement, or to the Bank of Spain under the agreement which entered into effect on June 20, 1988, the Trustee shall not make further drawings under this agreement pending consultations on this matter with the ICO. However, the Trustee may resume drawings under this agreement once arrears to the ICO under this agreement and/or arrears to the Bank of Spain under the June 20, 1988 agreement have been discharged.

2. The amount of each drawing shall be denominated in SDRs. Unless otherwise agreed between the Trustee and the ICO, the amount shall be paid by the ICO, on the value date specified in the Trustee’s confirmation notice, by transfer of the equivalent amount of U S dollars to the account of the Trust at the Federal Reserve Bank of New York, New York.

3. (a) Each drawing shall be repaid in ten equal semiannual installments beginning five and one-half years and ending ten years after the date of the drawing. The Trustee shall repay each of the first nine semiannual installments of a drawing to the ICO by transferring the amount of the installment to the Subsidy Account of the ESAF Trust. The tenth installment of each drawing shall be repaid directly by the Trustee to the ICO. Repayments by the Trustee shall be made on the relevant maturity date.

(b) By agreement between the ICO and the Trustee, any drawing or part thereof may be repaid by the Trustee at any time in advance of maturity.

(c) If a drawing matures on a date that is not a business day of the Fund, the maturity date shall be on the preceding business day.

4. The Trust shall pay interest to the ICO in respect of the amount outstanding of each drawing at an annual rate of one half of one percent. Such interest shall be calculated on an actual day basis and shall be paid promptly after June 30 and December 31 of each year.

5. (a) Payments of principal and interest shall be made in U S dollars or in other media as may be agreed between the Trustee and the ICO.

(b) Except for the transfers under 3(a), payments in U S. dollars shall be made by crediting the amount due to the account specified by the ICO. Payments in SDRs shall be made by crediting Spain’s holdings account in the Special Drawing Rights Department. Payments in other currencies shall be made to an account specified by the ICO.

6. (a) The ICO shall have the right to transfer at any time all or part of any claim on the Trust to any member of the Fund, to the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1, or to any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement.

(b) The transferee shall acquire all the rights of the ICO under this agreement with respect to repayment of and interest on the transferred claim.

7. At the request of the ICO, calls on its commitment to meet drawings may be suspended temporarily at any time prior to June 30, 1999, subject to the provisions of Section III, paragraph 4(b) and (c) of the Instrument.

8. Unless otherwise agreed between the Trustee and the ICO, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund for the third business day of the Fund before the value date of the transfer, exchange, or payment.

9. If the Fund changes the method of valuing the SDR, all transfers, exchanges, and payments of principal and interest made three or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

10. Any question arising hereunder shall be settled by mutual agreement between the ICO and the Trustee.

If the foregoing proposal is acceptable to the ICO, this communication and a duly authenticated reply from the ICO accepting this proposal shall constitute an agreement between the ICO and the Trustee, which shall enter into effect on the date the Trustee acknowledges receipt of your reply.

Attachment II to EBS/95/5

Draft Agreement with the Instituto de Crédito Oficial as Agent for the Government of Spain on an Investment with the Subsidy Account of the ESAF Trust

I have been authorized to propose on behalf of the International Monetary Fund (the “Fund”) as Trustee (the “Trustee”) of the Enhanced Structural Adjustment Facility Trust (the “Trust”) that the Kingdom of Spain acting through the Instituto de Crédito Oficial (hereafter the “ICO”) as its financial agent under the provisions of the Spanish Cabinet of Ministers on July 8, 1994, agree to invest with the Subsidy Account of the Trust, in accordance with Section IV, Paragraph 3(b) of the Instrument establishing the Trust (the “Instrument”) adopted by the Executive Board of the Fund by Decision No. 8759-(87/176) ESAF, December 18, 1987, as amended. The terms and conditions of the investment shall be as follows:

1. (a) The investment will be made in installments equal to the repayment installments of drawings under the Loan Agreement between the ICO as agent for the Government of Spain and the Trustee as specified in paragraph 3(a) of that agreement.

(b) If interest is not paid to the ICO within a period of ten days after its due date, the Trustee shall make repayment of installments referred to in paragraph l.a above directly to the ICO pending consultations with the ICO on the matter. However, once any arrears to the ICO have been discharged, the ICO agrees to invest with the Subsidy Account any amount that, pursuant to this provision, the Trustee repaid to the ICO earlier than the date specified in paragraph 3.a. of this agreement, and the Trustee may resume the transfer of future repayment installments to the Subsidy Account.

2. The amount of each installment shall be denominated in SDRs. Unless otherwise agreed between the Trustee and the ICO, the amounts shall be transferred by the Trustee in U.S. dollars.

3. (a) Subject to the other provisions of this agreement, the Trustee shall repay to the ICO an amount equivalent to the SDR value of the investments, from the proceeds of the investments, ten years after the date on which the original drawing associated with each of the investments was made under the borrowing agreement between the ICO as agent for the Government of Spain and the Trustee.

(b) If the maturity period does not end on a business day either of the Fund or of the place where payment is to be made, the maturity date shall be fixed to fall on the preceding business day of the Fund and the place of payment.

4. (a) Each installment shall bear interest at an annual rate of one half of one percent per annum.

(b) The amount of interest payable shall be calculated on the basis of the actual number of days that interest has accrued and a 365-day year and shall be paid annually or on the date the principal amount is repaid, whichever is earlier, from the proceeds of the investment.

5. The Trustee shall repay the principal amount of all installments from the proceeds of the investment on the maturity date of each installment or on such earlier repayment date as may be established pursuant to paragraph 9 or 10 of this agreement.

6. Payments by the Trustee of principal and interest shall be made in U.S dollars or in other media as agreed between the Trustee and the ICO. Payments in U S dollars shall be made by crediting the amount due to the account specified by the ICO. Payments in SDRs shall be made by crediting Spain’s holdings account in the Special Drawings Rights Department. Payments in other currencies shall be made to an account specified by the ICO.

7. Unless otherwise agreed between the ICO and the Trustee, all transfers and payments of principal and interest shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund for the third business day of the Fund before the value date of the transfer or payment.

8. If the Fund changes the method of valuing the SDR, all transfers, exchanges, and payment of principal and interest made three or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

9. The ICO intends to maintain each installment of the investment until the maturity date. However, if the ICO represents that because of Spain’s balance of payments and reserve position there is a need for the ICO to request repayment of any installment under the Loan Agreement and/or to encash all or part of its investment with the Trust, and the Trustee, having given such representation(s) the overwhelming benefit of any doubt, agrees, such repayment of any installment shall be made to the ICO and/or the investment shall be encashed in whole or in part in advance of the maturity date. The ICO agrees to invest the repaid amounts and/or to restore the investment as soon as practicable in light of developments in Spain’s balance of payments and reserve position.

10. The Trustee may repay the principal amount of the investment in part or in full at any time in advance of the maturity date.

11. Any question arising hereunder shall be settled by mutual agreement between the ICO and the Trustee.

12. If the foregoing proposal is acceptable to the ICO, this communication and your authenticated reply accepting the proposal shall constitute an agreement between the ICO and the Trustee, which shall enter into effect on the date the Trustee acknowledges receipt of your reply.*

Swiss Confederation

Pursuant to Section III, Paragraph 2 of the Instrument to Establish the Enhanced Structural Adjustment Facility Trust, the International Monetary Fund, in its capacity as Trustee of that Trust, approves the agreement for borrowing from the Swiss National Bank in terms of the draft agreement set out in Attachment III to EBS/95/102, and authorizes the Managing Director to take such action as is necessary to conclude and implement the agreement.

Moreover, the Managing Director is also authorized to send the letter shown in Attachment III to EBS/95/102, in response to the letter from the Minister of Finance on behalf of the Swiss Confederation.

Decision No. 11015-(95/60) ESAF

June 16, 1995

Attachment I

Berne, June 13, 1995

Otto Stich

Member of the Swiss Government

Head of the Ministry of Finance

Dear Sir:

I have been authorized to inform you, on behalf of the Swiss Confederation, that Switzerland will contribute to the extended Enhanced Structural Adjustment Facility (ESAF) of the International Monetary Fund in the form of a loan by the Swiss National Bank in the amount of SDR 151.7 million to the Loan Account of the “ESAF Trust” and through a grant to the Subsidy Account of the “ESAF Trust” in an amount of SDR 41.2 million The terms of the loan will he provided in an agreement between the Swiss National Bank and the International Monetary Fund, as Trustee of the “ESAF Trust,” and the details of transfers to the Subsidy Account will be determined in a notification to you by the Swiss Federal Council.

This agreement between the Swiss Confederation and the International Monetary Fund and the details contained in the above-mentioned notification will enter into effect on the date of your reply.*

With highest regards,

Yours sincerely,

Otto Stich

Mr. Michel Camdessus

Managing Director

International Monetary Fund

Washington, D.C., U.S.A.

Attachment II

Enhanced Structural Adjustment Facility: Proposed Borrowing Agreement with the Swiss National Bank

I have been authorized to propose on behalf of the International Monetary Fund (the “Fund”) as Trustee of the Enhanced Structural Adjustment Facility Trust (the “Trust”) that the Swiss National Bank (the “Bank”) agrees to lend to the Fund as Trustee for the purpose of providing resources to the Loan Account of that Trust, in accordance with the terms of the Instrument establishing the Trust (the “Instrument”) adopted by the Executive Board of the Fund by Decision No. 8759-(87/176) ESAF, adopted December 18, 1987, as amended. The amount of the loan is to be the equivalent of SDR 151.7 million and the terms and conditions of this loan shall be as follows:

1. (a) The Trustee may make drawings under this agreement at any time during the period from the effective date of this agreement through December 31, 1999, upon giving the Bank at least three business days (Washington, D.C.) notice by tested telex.

(b) If any installment of principal or interest is not paid to the Bank under this agreement, or principal to the Swiss Confederation under the agreement which entered into effect on December 23, 1988, within a period of ten days after its due date, the Trustee shall not make further drawings under this agreement pending consultations on this matter with the Bank. However, the Trustee may resume drawings under this agreement once arrears to the Bank and/or the Swiss Confederation have been discharged.

2. (a) The amount of each drawing shall be denominated in SDRs. Unless otherwise agreed between the Trustee and the Bank, the amount shall be paid by the Bank, on the value date specified in the Trustee’s notice, by transfer of the equivalent amount of U.S. dollars to the account of the Trust at the Federal Reserve Bank of New York, New York.

(b) Upon request, the Trustee shall issue to the Bank a nonnegotiable certificate evidencing its claim on the Trust resulting from a drawing outstanding under this agreement.

3. (a) Each drawing shall be repaid in ten equal semiannual installments beginning five and one-half years and ending ten years after the date of the drawing. Repayments by the Trust shall be made on the relevant maturity date.

(b) By agreement between the Bank and the Trustee, any drawing or part thereof may be repaid by the Trustee at any time in advance of maturity.

(c) If a drawing matures on a date that is not a business day of the Fund, the maturity date shall be on the preceding business day.

4. (a) The rate of interest applicable to each drawing shall be calculated at the time of the drawing and at intervals of six calendar months thereafter. The amount outstanding in respect of each drawing shall bear interest at an annual rate determined by the Trustee at the time of the calculation from the product of:

  • (i) the interest rates on domestic instruments in each currency included in the SDR basket, as reported to the Trustee by each reporting agency, on the business day of the Fund referred to in paragraph 8, as follows:

    • – the bond equivalent yield for six-month U S Treasury bills,

    • – the six-month interbank rate in Germany,

    • – the midpoint between the bid and offered rate on six-month Treasury bills in France,

    • – the average rate for newly issued bank CDs in Japan with a maturity of between 150 days and 180 days,

    • – the six-month interbank rate in the United Kingdom, and

  • (ii) the percentage weight of that currency in the valuation of the SDR on that business day, calculated by using the same amounts and exchange rates for currencies as are employed by the Fund for calculating the value of the SDR in terms of the U.S. dollar on that day.

The applicable interest rate shall be the sum of the products so calculated, rounded to two decimal places.

(b) The amount of interest payable in respect of each drawing shall be calculated on an actual day basis and shall be paid on all outstanding drawings under this agreement promptly after June 30 and December 31 of each year.

5. (a) Payments of principal and interest shall be made in U S dollars, or in other media as may be agreed between the Trustee and the Bank.

(b) Payments in U.S dollars shall be made by crediting the amount due to the account of the Bank at the Federal Reserve Bank of New York, New York. Payments in other currencies shall be made to an account specified by the Bank. Payments in SDRs shall be made by crediting the Bank’s holdings account in the Special Drawing Rights Department.

6. (a) The Bank shall have the right to transfer at any time all or part of any claim to any member of the Fund, to the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1, or to any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement.

(b) The transferee shall acquire all the rights of the Bank under this agreement with respect to repayment of the transferred claim.

7. At the request of the Bank, calls on its commitment to meet drawings may be suspended temporarily at any time prior to June 30, 1999, subject to the provisions of Section III, paragraph 4(b) and (c) of the Instrument.

8. Unless otherwise agreed between the Trustee and the Bank, all transfers, exchanges, and payments of principal and interest shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund for the third business day of the Fund before the value date of the transfer, exchange, or payment.

9. If the Fund changes the method of valuing the SDR, all transfers, exchanges, and payments of principal made three or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

10. Any question arising hereunder shall be settled by mutual agreement between the Bank and the Trustee.

If the foregoing proposal is acceptable to the Bank, this communication and your duly authenticated reply accepting this proposal shall constitute an agreement between the Bank and the Trustee, which shall enter into effect on the date the Trustee acknowledges receipt of that communication.*

Attachment III

International Monetary Fund

Washington, D.C., U.S.A.

____________, 1995

Dear Mr. Minister:

I am delighted to acknowledge receipt of your letter dated June 13, 1995, which informs me that the Swiss Confederation will contribute to the extended Enhanced Structural Adjustment Facility (ESAF). Your contribution of SDR 151.7 million to the Loan Account and of SDR 41.2 million to the Subsidy Account are most welcome. At the same time, I also acknowledge receipt of your notification of the same date, which specifies the details of the Swiss contribution to the Subsidy Account.

On behalf of the International Monetary Fund, as Trustee of the ESAF Trust, I would like to express our deep appreciation for the Swiss contribution to the extended ESAF.

With highest regards,

Michel Camdessus

Honorable Otto Stich

Minister of Finance

Federal Department of Finance

Bundesgasse 3

Bernerhof

CH-3003 Bern, Switzerland

*

The agreement entered into effect on May 9, 1995.

*

The agreement entered into effect on July 5, 1994.

*

The agreement entered into effect on June 13, 1994.

*

The agreement entered into effect on January 3, 1995.

*

The agreement has not yet entered into effect as of November 3, 1995.

*

The agreement entered into effect on October 5, 1994.

*

The agreement entered into effect on June 20, 1994.

*

The agreement entered into effect on June 16, 1994.

*

The agreement entered into effect on December 20, 1994.

*

The agreement entered into effect on May 24, 1994.

*

The agreement entered into effect on February 8, 1995.

*

The agreement entered into effect on June 22, 1995.

*

The agreement entered into effect on June 22, 1995.