Press Release: Lao People's Democratic Republic Accepts IMF's Article VIII Obligations
July 21, 2010Press Release No. 10/298
July 21, 2010
The government of the Lao People’s Democratic Republic has notified the International Monetary Fund (IMF) that it has accepted the obligations of Article VIII, Sections 2, 3, and 4 of the IMF's Articles of Agreement, with effect from May 28, 2010.
Under Article VIII, Sections 2, 3 and 4, IMF members undertake not to impose restrictions on the making of payments and transfers for current international transactions, and not to engage in, or permit any of their fiscal agencies to engage in, any discriminatory currency arrangements or multiple currency practices, except with IMF approval.
A total of 167 of the IMF's 187 members have now accepted the obligations of Article VIII, Sections 2, 3 and 4.
By accepting the obligations of Article VIII, Sections 2, 3 and 4, Lao P.D.R. signals to the international community that it will pursue economic policies which will make restrictions on the making of payments and transfers for current international transactions unnecessary, and will contribute to a multilateral payments system free of restrictions.
Lao P.D.R. joined the IMF in 1961. Its quota1 is SDR 52.9 million (about US$79.7 million).
1 A member’s quota in the IMF determines, in particular, the amount of its subscription, its voting weight, its access to IMF financing and its share of the allocation of Special Drawing Rights.