## Loan Agreement between the National Bank of Belgium and the International Monetary Fund — Sections 1–2

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### Purposes, Amounts, and Legal Basis
- Purpose: to enhance the resources available on a temporary basis to the International Monetary Fund (the “Fund”) for crisis prevention and resolution through bilateral borrowing.
- Loan Amount: an SDR-denominated amount up to the equivalent of EUR 9,990 million (the “Loan Amount”).
- Rolled Back Loan Amount: upon effectiveness of the increase in Belgium’s credit arrangement under the Fund’s New Arrangements to Borrow (the “NAB”) as part of the NAB Reform (Decision No. 16645-(20/5), adopted January 16, 2020), the Loan Amount will be automatically reduced to an SDR-denominated amount up to the equivalent of EUR 4,304 million (the “Rolled Back Loan Amount”).
- Legal basis: Article VII, Section 1(i) of the Fund’s Articles of Agreement; this agreement considered in light of the Guidelines for Borrowing by the Fund.
- Terminology preserved: “2020 Borrowing Agreement”; “2016 Borrowing Agreement”; “Bilateral Borrowing Agreements”.

### Term, Activation, Deactivation, and Permitted Uses
- Term end date: December 31, 2023.
- Possible extension: Fund may extend term for one further year through December 31, 2024 by Executive Board decision and with consent of the National Bank of Belgium.
- Activation condition: 2020 Borrowing Agreements may be activated only after the Managing Director notifies the Executive Board that the Forward Commitment Capacity (modified FCC) is below SDR 100 billion (the “activation threshold”).
- Additional activation requirements:
  - NAB is activated at time of notification, or there are no available uncommitted resources under the NAB at that time; and
  - activation approved by creditors representing at least 85 percent of the total credit amount committed under the 2020 Borrowing Agreements by creditors eligible to vote on such activation.
- Exceptional approach: Managing Director may approach creditors before modified FCC is below activation threshold if extraordinary circumstances warrant.
- Deactivation triggers:
  - Automatic deactivation whenever NAB is no longer activated, unless there are no available uncommitted resources under the NAB at that time.
  - Deactivation if Managing Director notifies Executive Board that modified FCC (excluding Bilateral Borrowing Agreements) has risen above activation threshold and either (i) Executive Board determines activation no longer necessary; or (ii) six months have elapsed since notification and modified FCC (excluding Bilateral Borrowing Agreements) has not fallen below activation threshold.
- Permitted uses during activation:
  - (i) use resources to fund any outright purchases made from the GRA during the term of this agreement; and
  - (ii) approve commitments of GRA resources during the term whose purchases could be funded by drawings under this agreement at any time during the period of such commitments, including after expiration of the term and during periods when agreement is no longer activated.
- Early repayment of other 2020 Borrowing Agreements: drawings may fund early repayment of claims under other 2020 Borrowing Agreements if creditors request early repayment as specified in paragraph 8; such drawings may be made while claims remain outstanding, including after expiration or deactivation.
- Creditor balance objective: drawings shall be made with the goal of achieving over time broadly balanced positions among creditors under all Bilateral Borrowing Agreements relative to their commitments.

### Drawing Mechanics, Notices, and Eligibility Conditions
- Estimates: Fund shall provide National Bank of Belgium best estimates of expected drawings prior to each plan period and revised estimates during each period as warranted.
- Inclusion requirement: National Bank of Belgium shall not be included, and no drawings shall be made, if Belgium is not included and is not being proposed by the Managing Director for inclusion in the Financial Transactions Plan for transfers of its currency.
- Balance-of-payments condition: no drawings if Belgium was included in periodic plan but, at time of drawing, Belgium’s currency is not being used in transfers under the Financial Transactions Plan because of Belgium’s balance of payments and reserve position.
- Subsequent inclusion: where Belgium was not included at time of vote on activation and is subsequently included, drawings may be made to fund purchases made and commitments approved during activation period unless National Bank of Belgium notifies Fund it does not wish to be drawn upon.
- Notice periods for drawings:
  - Standard notice: at least five business days’ (Brussels) notice of intention to draw; payment instructions at least two business days (Fund) prior to value date by rapid authenticated means (e.g., SWIFT).
  - Exceptional circumstances: at least three business days (Brussels) notice; National Bank of Belgium would make best efforts to meet such a call.

### Evidence of Indebtedness and Publication
- Publication: outstanding drawings will be included in statements of Belgium’s position in the Fund published monthly by the Fund.
- Instruments: at the request of the National Bank of Belgium, the Fund shall issue non-negotiable instruments evidencing indebtedness; instruments returned for cancellation upon repayment and accrued interest.
- Partial repayment rule: if less than the instrument amount is repaid, instrument returned and a new instrument for the remainder substituted with same maturity date.

### Maturity, Extensions, Repayment, and Business Day Rules
- Standard maturity: each drawing shall have a maturity date of three months from the drawing date, except as otherwise provided in paragraph 5 and paragraph 8.
- Extension mechanics: Fund may elect to extend maturity in additional periods of three months after initial maturity; Fund deemed to have elected extension for all drawings unless, at least five business days (Fund) before a maturity date, Fund notifies National Bank of Belgium it does not elect to extend that drawing.
- Extension limits:
  - (i) maturity of any drawing to fund purchases from the GRA shall not be extended to a date later than the tenth anniversary of the date of such drawing; and
  - (ii) maturity date for drawings to fund early repayments of other creditors’ claims shall be a single common maturity date that is the longest remaining maximum maturity of any claim for which such early repayment has been requested or the tenth anniversary of the date of the relevant drawing to fund early repayment, whichever is earlier.
- Repayment: Fund shall repay principal on the applicable maturity date.
- Early repayment by Fund: after consultation with National Bank of Belgium, Fund may make early repayment in part or in full prior to maturity provided Fund notifies National Bank of Belgium at least five business days (Fund) before such repayment by rapid authenticated means (e.g., SWIFT).
- Restoration of drawing capacity: repayments restore pro tanto the amount that can be drawn; extension of maturity does not reduce amount that can be drawn.
- Business day rule: if maturity date is not a business day in place of payment, payment date will be next business day in that place; interest accrues up to payment date.

### Interest Rate, Calculation, and Payment Schedule
- Interest basis: each drawing shall bear interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement.
- Comparable borrowing clause: if Fund pays an interest rate higher than the SDR interest rate on outstanding balances from any other borrowing on comparable terms effected pursuant to Article VII, Section 1(i), and for as long as such higher rate remains in effect, interest payable on drawings under this agreement shall be equivalent to the interest rate paid by the Fund on such other comparable borrowing.
- Calculation and payment:
  - Interest amount calculated on basis of outstanding amount of the drawing.
  - Interest accrues daily.
  - Interest paid promptly after each July 31, October 31, January 31, and April 30.

### Denomination, Payment Modalities, and Currencies
- Denomination: each drawing and corresponding repayment shall be denominated in SDRs.
- Payment mechanics:
  - Unless otherwise agreed, each drawing paid by National Bank of Belgium on value date by transfer of the SDR equivalent amount of euro to the Fund’s account at the designated depository of Belgium.
  - For drawings pursuant to paragraph 2(e), National Bank of Belgium shall ensure that balances drawn that are not balances of a freely usable currency can be exchanged for a freely usable currency of its choice; with respect to balances that are balances of a freely usable currency, National Bank of Belgium shall collaborate with Fund and other members to enable exchange for another freely usable currency.
- Repayment currencies (except as provided in paragraph 8): as determined by the Fund, repayment of principal shall be made, whenever feasible, in the currency borrowed, and otherwise in euro, in special drawing rights (subject to Article XIX, Section 4 limits unless Belgium agrees), in freely usable currencies, or with agreement of National Bank of Belgium in other currencies included in the Fund’s Financial Transactions Plan for transfers.
- Interest payments: normally in SDRs; Fund and National Bank of Belgium may agree interest will be made in euro.
- Payment accounts:
  - All euro payments to account specified by National Bank of Belgium.
  - SDR payments made by crediting Belgium’s account in the Special Drawing Rights Department.
  - Payments in any other currency to account specified by National Bank of Belgium.

### Early Repayment at Request of the National Bank of Belgium (Paragraph 8)
- Conditions for National Bank of Belgium to request early repayment at face value:
  - (i) National Bank of Belgium represents that Belgium’s balance of payments and reserve position justifies such repayment; and
  - (ii) Fund, giving the representation the overwhelming benefit of any doubt, determines there is a need for the early repayment in light of Belgium’s balance of payments and reserve position.
- Currencies for such repayments: after consultation, Fund may make repayments in SDRs or a freely usable currency as determined by the Fund or, with agreement of National Bank of Belgium, in currencies of other members included in the Fund’s Financial Transactions Plan for transfers.

### Transferability of Claims and Conditions on Transfers
- General prohibition: National Bank of Belgium may not transfer its obligations under this agreement or its claims on the Fund resulting from outstanding drawings except with prior consent of the Fund and on Fund-approved terms, subject to subparagraphs (b)–(h).
- Unrestricted transferees (subparagraph b): National Bank of Belgium may transfer at any time all or part of any claim to:
  - any member of the Fund;
  - the central bank or other fiscal agency designated by any member for Article V, Section 1 purposes (“other fiscal agency”); or
  - any official entity prescribed as a holder of SDRs pursuant to Article XVII, Section 3.
- Transferee conditions (subparagraph c) include assumption of maturity-extension liability under paragraph 5(a) and preservation of terms except for specific adjustments regarding early repayment rights, currency references, payment accounts, and business day references.
- Price: price of a transferred claim shall be as agreed between National Bank of Belgium and transferee.
- Notification: National Bank of Belgium shall notify Fund promptly of claim being transferred, name of transferee, amount of claim transferred, agreed price, and value date of transfer.
- Fund records: a transfer notified under the notification provision shall be reflected in Fund’s records if in accordance with terms and conditions of paragraph 9.

### Selected Clause Highlights from Section 2
- Transfers, interest, and assistance:
  - Transfer effective as of agreed value date.
  - Paragraph 7(g): If all or part of a claim is transferred during a quarterly period as described in paragraph 6(b), the Fund shall pay interest to the transferee on the amount of the claim transferred for the whole of that period.
  - Paragraph 7(h): If requested, the Fund shall assist in seeking to arrange transfers.
- Effective exchange rate (Paragraph 10):
  - Default exchange rate basis: exchange rates for relevant currencies in terms of the SDR established pursuant to Article XIX, Section 7(a) for the second business day of the Fund before the value date; if not a business day in Brussels, use last preceding Fund business day that is also a Brussels business day.
  - For applying drawing limits in paragraphs 1(a), 14(c) and 14(e), the euro value of each SDR-denominated drawing shall be determined and permanently fixed on the value date based on the euro/SDR exchange rate established pursuant to Article XIX, Section 7(a) for the second business day of the Fund before the value date; same Brussels business day fallback applies.
- Changes in valuation of SDR (Paragraph 11): transfers, exchanges and payments made two or more business days of the Fund after the effective date of a change shall be on basis of new SDR valuation method.
- Non-subordination (Paragraph 12): Fund will not take any action making National Bank of Belgium’s claims under this agreement subordinate to claims from any other Article VII, Section 1(i) borrowing.
- Settlement of questions (Paragraph 13): any question arising under this agreement shall be settled by mutual agreement between the National Bank of Belgium and the Fund.

### Transitional Arrangements (Paragraph 14) — interaction with 2016 Borrowing Agreement and NAB
- (a) Regardless of whether this agreement is activated or not, the Fund:
  - (i) subject to paragraph 14(b), shall make drawings under this agreement to repay any outstanding claims under the National Bank of Belgium’s 2016 Borrowing Agreement; and
  - (ii) may make drawings under this agreement to fund purchases under commitments approved by the Fund during an activation of the 2016 Borrowing Agreements or to fund early repayment of claims under other 2016 Borrowing Agreements in case the creditor represents a balance of payments need;
  - provided that the maximum maturity date of the claim from the repayment shall be the residual maximum maturity date of the claim that is repaid, and such claims resulting from the repayment shall be considered claims under the 2016 Borrowing Agreements for certain funding and special-call purposes.
- (b) To the extent claims under the 2016 Borrowing Agreement or this agreement are outstanding when the increase in Belgium’s NAB credit arrangement becomes effective, the National Bank of Belgium shall be deemed to request that the Managing Director make calls under Belgium’s NAB credit arrangement up to the maximum available amount to fund repayment of such claims; if the increase in Belgium’s NAB credit arrangement and this agreement enter into effect at the same time, repayment of outstanding 2016 claims shall be funded first with calls under Belgium’s NAB credit arrangement before drawings under this agreement pursuant to paragraph 14(a).
- (c) If following repayment as provided in paragraph 14(b) outstanding claims remain in excess of the Rolled Back Loan Amount as calculated pursuant to paragraph 10(b), the Fund shall repay any outstanding claims in excess of the Rolled Back Loan Amount; claims with shorter remaining maximum maturities shall be repaid before those with longer remaining maximum maturities.
- (d) After entry into force of this agreement, the Fund may make no further drawing under the National Bank of Belgium’s 2016 Borrowing Agreement.
- (e) No drawing under this agreement shall be made that would cause the total outstanding drawings under both this agreement and the 2016 Borrowing Agreement to, at the time of such drawing, (i) exceed the Loan Amount prior to the effectiveness of the increase in Belgium’s NAB credit arrangement, or (ii) exceed the Rolled Back Loan Amount upon and after the effectiveness of the increase in Belgium’s NAB credit arrangement, as calculated pursuant to paragraph 10(b); provided that drawings beyond the Rolled Back Loan Amount under (ii) are authorized if within the same day any resulting claim that would exceed the Rolled Back Loan Amount is repaid with a special call under Belgium’s NAB credit arrangement and the National Bank of Belgium requests such calls.

### Final Provisions, Effectiveness, and Signatures
- Execution: This agreement may be executed in duplicate counterparts, each deemed an original.
- Effectiveness: This agreement shall become effective on the date last signed below or on the date on which Belgium provides the concurrence required under Article VII, Section 1(i) for Fund borrowing of euro from the National Bank of Belgium, or on January 1, 2021, whichever is later.
- Signatories:
  - National Bank of Belgium: Pierre Wunsch, Governor of the National Bank of Belgium.
  - International Monetary Fund: Kristalina Georgieva, Managing Director.
  - Dates in signature blocks: 28 August 2020 and September 11, 2020.

*Source: Loan Agreement between the National Bank of Belgium and the International Monetary Fund — Sections 1–2.*

### Section 1

### Loan Agreement between the National Bank of Belgium and the International Monetary Fund — Section 1

### 1. Purposes and Amounts
- Purpose: to enhance the resources available on a temporary basis to the International Monetary Fund (the “Fund”) for crisis prevention and resolution through bilateral borrowing.
- Loan Amount: an SDR-denominated amount up to the equivalent of EUR 9,990 million (the “Loan Amount”).
- Rolled Back Loan Amount: upon effectiveness of the increase in Belgium’s credit arrangement under the Fund’s New Arrangements to Borrow (the “NAB”) as part of the NAB Reform (Decision No. 16645-(20/5), adopted January 16, 2020), the Loan Amount will be automatically reduced to an SDR-denominated amount up to the equivalent of EUR 4,304 million (the “Rolled Back Loan Amount”).
- Legal basis: Article VII, Section 1(i) of the Fund’s Articles of Agreement; this agreement considered in light of the Guidelines for Borrowing by the Fund.
- Terminology:
  - “2020 Borrowing Agreement”: this agreement and other bilateral borrowing agreements entered into or amended pursuant to the borrowing framework approved by the Fund in March 2020.
  - “2016 Borrowing Agreement”: bilateral borrowing agreements entered into pursuant to the borrowing framework approved by the Fund in August 2016.
  - “Bilateral Borrowing Agreements”: collective term for the 2020 Borrowing Agreements and the 2016 Borrowing Agreements.

### 2. Term of the Agreement and Use
- Term end date: December 31, 2023.
- Possible extension: Fund may extend term for one further year through December 31, 2024 by Executive Board decision and with consent of the National Bank of Belgium.
- Activation condition: 2020 Borrowing Agreements may be activated only after the Managing Director notifies the Executive Board that the Forward Commitment Capacity (modified FCC) is below SDR 100 billion (the “activation threshold”).
- Additional activation requirements:
  - (i) NAB is activated at time of notification, or there are no available uncommitted resources under the NAB at that time; and
  - (ii) activation approved by creditors representing at least 85 percent of the total credit amount committed under the 2020 Borrowing Agreements by creditors eligible to vote on such activation.
- Creditor voting: Managing Director shall propose activation in writing and request creditors’ vote; creditors ineligible to vote if their 2020 Borrowing Agreement is not effective or if the relevant member is not included in the Fund’s Financial Transactions Plan for transfers of its currency.
- Exceptional approach: Managing Director may approach creditors before modified FCC is below activation threshold if extraordinary circumstances warrant.
- Deactivation:
  - Automatic deactivation whenever NAB is no longer activated, unless there are no available uncommitted resources under the NAB at that time.
  - Deactivation if Managing Director notifies Executive Board that modified FCC (excluding Bilateral Borrowing Agreements) has risen above activation threshold and either (i) Executive Board determines activation no longer necessary; or (ii) six months have elapsed since notification and modified FCC (excluding Bilateral Borrowing Agreements) has not fallen below activation threshold.
  - If deactivated and modified FCC later falls below activation threshold, paragraph 2(b) provisions apply.
- Permitted uses during activation:
  - (i) use resources to fund any outright purchases made from the GRA during the term of this agreement; and
  - (ii) approve commitments of GRA resources during the term whose purchases could be funded by drawings under this agreement at any time during the period of such commitments, including after expiration of the term and during periods when agreement is no longer activated; commitments covered under (ii) include any commitment whose approval caused the activation threshold to be reached.
- Early repayment of other 2020 Borrowing Agreements: following activation, resources may be used to fund early repayment of claims under other 2020 Borrowing Agreements if relevant creditors request early repayment as specified in paragraph 8; drawings may be made for such early repayment for as long as claims under the 2020 Borrowing Agreements remain outstanding, including after expiration or deactivation of this agreement.
- Creditor balance objective: drawings shall be made with the goal of achieving over time broadly balanced positions among creditors under all Bilateral Borrowing Agreements relative to their commitments.

### 3. Estimates, Notices, and Limits on Drawings
- Estimates: prior to each plan period for use of bilateral borrowed resources, Fund shall provide National Bank of Belgium its best estimates of expected drawings for the forthcoming period and revised estimates during each period as warranted.
- Inclusion in periodic plan: National Bank of Belgium shall not be included, and no drawings shall be made, if Belgium is not included and is not being proposed by the Managing Director for inclusion in the Financial Transactions Plan for transfers of its currency.
- Balance-of-payments condition: no drawings if Belgium was included in periodic plan but, at time of drawing, Belgium’s currency is not being used in transfers under the Financial Transactions Plan because of Belgium’s balance of payments and reserve position.
- Subsequent inclusion: where Belgium was not included at time of vote on activation and is subsequently included, drawings may be made to fund purchases made and commitments approved during activation period unless National Bank of Belgium notifies Fund it does not wish to be drawn upon.
- Notice periods for drawings:
  - Standard notice: at least five business days’ (Brussels) notice of intention to draw; payment instructions at least two business days (Fund) prior to value date by rapid authenticated means (e.g., SWIFT).
  - Exceptional circumstances: at least three business days (Brussels) notice; National Bank of Belgium would make best efforts to meet such a call.

### 4. Evidence of Indebtedness
- Publication: outstanding drawings will be included in statements of Belgium’s position in the Fund published monthly by the Fund.
- Instruments: at the request of the National Bank of Belgium, the Fund shall issue non-negotiable instruments evidencing indebtedness; upon repayment of an instrument and accrued interest the instrument shall be returned for cancellation.
- Partial repayment: if less than the instrument amount is repaid, instrument returned and a new instrument for the remainder substituted with same maturity date.

### 5. Maturity
- Standard maturity: each drawing shall have a maturity date of three months from the drawing date, except as otherwise provided in paragraph 5 and paragraph 8.
- Extension: Fund may elect to extend maturity in additional periods of three months after initial maturity; Fund deemed to have elected extension for all drawings unless, at least five business days (Fund) before a maturity date, Fund notifies National Bank of Belgium that it does not elect to extend that drawing.
- Extension limits:
  - (i) maturity of any drawing to fund purchases from the GRA shall not be extended to a date later than the tenth anniversary of the date of such drawing; and
  - (ii) maturity date for drawings to fund early repayments of other creditors’ claims shall be a single common maturity date that is the longest remaining maximum maturity of any claim for which such early repayment has been requested or the tenth anniversary of the date of the relevant drawing to fund early repayment, whichever is earlier.
- Repayment: Fund shall repay principal on the applicable maturity date.
- Early repayment by Fund: after consultation with National Bank of Belgium, Fund may make early repayment in part or in full prior to maturity provided Fund notifies National Bank of Belgium at least five business days (Fund) before such repayment by rapid authenticated means (e.g., SWIFT).
- Restoration of drawing capacity: repayments restore pro tanto the amount that can be drawn; extension of maturity does not reduce amount that can be drawn.
- Business day rule: if maturity date is not a business day in place of payment, payment date will be next business day in that place; interest accrues up to payment date.

### 6. Rate of Interest
- Interest basis: each drawing shall bear interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement.
- Comparable borrowing clause: if Fund pays an interest rate higher than the SDR interest rate on outstanding balances from any other borrowing on comparable terms effected pursuant to Article VII, Section 1(i), and for as long as such higher rate remains in effect, interest payable on drawings under this agreement shall be equivalent to the interest rate paid by the Fund on such other comparable borrowing.
- Calculation and payment:
  - Interest amount calculated on basis of outstanding amount of the drawing.
  - Interest accrues daily.
  - Interest paid promptly after each July 31, October 31, January 31, and April 30.

### 7. Denomination, Media and Modalities of Drawings and Payments
- Denomination: each drawing and corresponding repayment shall be denominated in SDRs.
- Payment mechanics:
  - Unless otherwise agreed, each drawing paid by National Bank of Belgium on value date by transfer of the SDR equivalent amount of euro to the Fund’s account at the designated depository of Belgium.
  - For drawings pursuant to paragraph 2(e), National Bank of Belgium shall ensure that balances drawn that are not balances of a freely usable currency can be exchanged for a freely usable currency of its choice; with respect to balances that are balances of a freely usable currency, National Bank of Belgium shall collaborate with Fund and other members to enable exchange for another freely usable currency.
- Repayment currencies (except as provided in paragraph 8): as determined by the Fund, repayment of principal shall be made, whenever feasible, in the currency borrowed, and otherwise in euro, in special drawing rights (subject to Article XIX, Section 4 limits unless Belgium agrees), in freely usable currencies, or with agreement of National Bank of Belgium in other currencies included in the Fund’s Financial Transactions Plan for transfers.
- Interest payments: normally in SDRs; Fund and National Bank of Belgium may agree interest will be made in euro.
- Payment accounts:
  - All euro payments to account specified by National Bank of Belgium.
  - SDR payments made by crediting Belgium’s account in the Special Drawing Rights Department.
  - Payments in any other currency to account specified by National Bank of Belgium.

### 8. Early Repayment at Request of the National Bank of Belgium
- National Bank of Belgium may request early repayment at face value of all or a portion of outstanding drawings if:
  - (i) National Bank of Belgium represents that Belgium’s balance of payments and reserve position justifies such repayment; and
  - (ii) Fund, giving the representation the overwhelming benefit of any doubt, determines there is a need for the early repayment in light of Belgium’s balance of payments and reserve position.
- Currencies for such repayments: after consultation, Fund may make repayments in SDRs or a freely usable currency as determined by the Fund or, with agreement of National Bank of Belgium, in currencies of other members included in the Fund’s Financial Transactions Plan for transfers.

### 9. Transferability
- General prohibition: National Bank of Belgium may not transfer its obligations under this agreement or its claims on the Fund resulting from outstanding drawings except with prior consent of the Fund and on Fund-approved terms, subject to subparagraphs (b)–(h).
- Unrestricted transfers (subparagraph b): National Bank of Belgium may transfer at any time all or part of any claim to:
  - any member of the Fund;
  - the central bank or other fiscal agency designated by any member for Article V, Section 1 purposes (“other fiscal agency”); or
  - any official entity prescribed as a holder of SDRs pursuant to Article XVII, Section 3.
- Conditions on transferee (subparagraph c):
  - Transferee must assume liability of National Bank of Belgium under paragraph 5(a) regarding extension of maturity of drawings related to transferred claim.
  - Transferred claim held on same terms and conditions as by National Bank of Belgium, except:
    - (i) transferee acquires right to request early repayment under paragraph 8 only if it is a member or central bank/other fiscal agency of a member and at time of transfer the member’s balance of payments and reserve position is considered sufficiently strong that its currency is used in transfers under the Financial Transactions Plan;
    - (ii) if transferee is a member or central bank/other fiscal agency of a member, reference to euro in paragraph 7 deemed to refer to currency of relevant member; otherwise euro deemed to refer to a freely usable currency determined by the Fund;
    - (iii) payments related to transferred claim made to an account specified by transferee;
    - (iv) references to business days (Brussels) deemed to refer to business days in place where transferee is situated.
- Price: price of a transferred claim shall be as agreed between National Bank of Belgium and transferee.
- Notification: National Bank of Belgium shall notify Fund promptly of claim being transferred, name of transferee, amount of claim transferred, agreed price, and value date of transfer.
- Fund records: a transfer notified under the notification provision shall be reflected in Fund’s records if in accordance with terms and conditions of paragraph 9.

*Source: Loan Agreement between the National Bank of Belgium and the International Monetary Fund — Section 1.*

### Section 2

### Section 2 — Borrowing Agreement Provisions (Selected Clauses)

### Transfers, Interest, and Assistance
- The transfer shall be effective as of the value date agreed between the National Bank of Belgium and the transferee.
- Paragraph 7(g): If a ll or part of a claim is transferred during a quarterly period as described in paragraph 6(b), the Fund shall pay interest to the transferee on the amount of the claim transferred for the whole of that period.
- Paragraph 7(h): If requested, the Fund shall assist in seeking to arrange transfers.

### Effective Exchange Rate (Paragraph 10)
- (a) Unless otherwise agreed between the National Bank of Belgium and the Fund, all drawings, exchanges, and payments of principal and interest under this agreement shall be made at the exchange rates for the relevant currencies in terms of the SDR established pursuant to Article XIX, Section 7(a) of the Fund’s Articles of Agreement and the rules and regulations of the Fund thereunder for the second business day of the Fund before the value date of the transfer, exchange or payment. If this exchange rate determination date is not a business day in Brussels, such date shall be the last preceding business day of the Fund that is also a business day in Brussels.
- (b) For purposes of applying the limit on drawings as specified in paragraphs 1(a), 14(c) and 14(e), the euro value of each SDR-denominated drawing shall be determined and permanently fixed on the value date of the drawing based on the euro/SDR exchange rate established pursuant to Article XIX, Section 7(a) of the Fund’s Articles of Agreement and the rules and regulations of the Fund thereunder for the second business day of the Fund before the value date of the drawing. If this exchange rate determination date is not a business day in Brussels, such date shall be the last preceding business day of the Fund that is also a business day in Brussels.

### Changes in Valuation of SDR (Paragraph 11)
- If the Fund changes the method of valuing the SDR, all transfers, exchanges and payments of principal and interest made two 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.

### Non-Subordination of Claims (Paragraph 12)
- The Fund agrees that it will not take any action that would have the effect of making the National Bank of Belgium’s claims on the Fund resulting from outstanding drawings under this agreement subordinate in any way to claims on the Fund resulting from any other borrowing effected pursuant to Article VII, Section 1(i) of the Fund’s Articles of Agreement.

### Settlement of Questions (Paragraph 13)
- Any question arising under this agreement shall be settled by mutual agreement between the National Bank of Belgium and the Fund.

### Transitional Arrangements (Paragraph 14)
- (a) Regardless of whether this agreement is activated or not, the Fund: (i) subject to paragraph 14(b) below, shall make drawings under this agreement to repay any outstanding claims under the National Bank of Belgium’s 2016 Borrowing Agreement, and (ii) may make drawings under this agreement to fund purchases under commitments approved by the Fund during an activation of the 2016 Borrowing Agreements or to fund early repayment of claims under other 2016 Borrowing Agreements in case the creditor represents a balance of payments need; provided that notwithstanding paragraph 5(a) of this agreement the maximum maturity date of the claim from the repayment herein shall be the residual maximum maturity date of the claim that is repaid with drawings under this agreement; and provided further that any claims under this agreement that result from the repayment herein shall be considered claims under the 2016 Borrowing Agreements for purposes of funding the early repayment of these claims in case of balance of payments need in accordance with the 2016 Borrowing Agreements, and for purposes of special calls under paragraph 23 of the Fund’s Decision No. 16645-(20/5), adopted January 16, 2020.
- (b) To the extent that claims under the National Bank of Belgium’s 2016 Borrowing Agreement or this agreement are outstanding when the increase in Belgium’s NAB credit arrangement becomes effective, the National Bank of Belgium shall be deemed to request, on behalf of Belgium, in accordance with paragraph 23 of the Fund’s Decision No. 11428-(97/6), adopted January 27, 1997 on the NAB, as amended, that the Managing Director make calls under Belgium’s NAB credit arrangement up to the maximum available amount, taking into account the Fund’s need for maintaining prudential balances, to fund the repayment of such claims; provided that if the increase in Belgium’s NAB credit arrangement and this agreement enter into effect at the same time, the repayment of the National Bank of Belgium’s outstanding claims under the National Bank of Belgium’s 2016 Borrowing Agreement shall be funded first with calls under Belgium’s NAB credit arrangement before drawings are made under this agreement pursuant to paragraph 14(a) above.
- (c) If following the repayment of outstanding claims under the National Bank of Belgium’s 2016 Borrowing Agreement and this agreement as provided in paragraph 14(b) above, the National Bank of Belgium’s outstanding claims under these agreements remain in excess of the Rolled Back Loan Amount as calculated pursuant to paragraph 10(b), the Fund shall repay any outstanding claims under the National Bank of Belgium’s 2016 Borrowing Agreement and this agreement in excess of the Rolled Back Loan Amount; provided that claims with shorter remaining maximum maturities shall be repaid before those with longer remaining maximum maturities.
- (d) After the entry into force of this agreement, the Fund may make no further drawing under the National Bank of Belgium’s 2016 Borrowing Agreement.
- (e) No drawing under this agreement shall be made that would cause the total outstanding drawings under both this agreement and the 2016 Borrowing Agreement between the National Bank of Belgium and the Fund, at the time of such drawing, to (i) exceed the Loan Amount prior to the effectiveness of the increase in Belgium’s NAB credit arrangement, or (ii) exceed the Rolled Back Loan Amount upon and after the effectiveness of the increase in Belgium’s NAB credit arrangement, as calculated pursuant to paragraph 10(b); provided that drawings beyond the Rolled Back Loan Amount under (ii) herein are authorized, if within the same day of these drawings any resulting claim that would exceed the Rolled Back Loan Amount is repaid with a special call under Belgium’s NAB credit arrangement, and the National Bank of Belgium hereby requests, on behalf of Belgium, that the Managing Director make such calls to fund the repayment in accordance with paragraph 23 of the Fund’s Decision No. 11428-(97/6), adopted January 27, 1997 on the NAB, as amended.

### Final Provisions (Paragraph 15) and Effectiveness
- (a) This agreement may be executed in duplicate counterparts, each of which shall be deemed an original and both of which together shall constitute but one and the same instrument.
- (b) This agreement shall become effective on the date last signed below or on the date on which Belgium provides the concurrence that is required under Article VII, Section 1(i) of the Fund’s Articles of Agreement for Fund borrowing of euro from the National Bank of Belgium, or on January 1, 2021, whichever is later.

### Signatures and Dates
- Signature block for the National Bank of Belgium: Pierre Wunsch, Governor of the National Bank of Belgium.
- Signature block for the International Monetary Fund: Kristalina Georgieva, Managing Director.
- Date listed in one signature block: 28 August 2020.
- Date listed in second signature block: September 11, 2020.

*Source: pr214-signed-belgium-2020-borrowing-agreements - Section 2*

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_Source: https://www.imf.org/-/media/files/news/press-release/2021/pr214/pr214-signed-belgium-2020-borrowing-agreements.pdf_