## Loan Agreement between the Deutsche Bundesbank and the International Monetary Fund

## Source details

**Canonical URL:** [Loan Agreement between the Deutsche Bundesbank and the International Monetary Fund](https://www.imf.org/-/media/files/news/press-release/2021/pr214/pr214-signed-germany-2020-borrowing-agreements.pdf)

## Other formats

- [Markdown version](/-/media/files/news/press-release/2021/pr214/pr214-signed-germany-2020-borrowing-agreements.pdf.md)
- [Structured JSON version](/-/media/files/news/press-release/2021/pr214/pr214-signed-germany-2020-borrowing-agreements.pdf.json)

---

### 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 EUR41,500million (the "Loan Amount").
- Rolled Back Loan Amount: upon effectiveness of the NAB Reform, the Loan Amount will be automatically reduced to an SDR-denominated amount up to the equivalent of EUR17,878million (the "RolledBackLoanAmount").
- Legal basis: Article VII, Section 1(i) of the Fund's Articles of Agreement and the Guidelines for Borrowing by the Fund.
- Definitions: agreements entered into or amended pursuant to the March 2020 borrowing framework are "2020 Borrowing Agreements"; those pursuant to August 2016 are "2016 Borrowing Agreements"; collectively "Bilateral Borrowing Agreements".

### Term of the Agreement, Activation, and Use
- Term end date: December 31, 2023.
- Extension: Fund may extend term for one further year through December 31, 2024 by Executive Board decision and with Deutsche Bundesbank consent.
- Activation threshold: Forward Commitment Capacity (modified FCC) below SDR100billion required for activation.
- Activation conditions:
  - (I) NAB is activated or no available uncommitted NAB resources at notification time; and
  - (II) approval by creditors representing at least 85 percent of the total credit amount committed under the 2020 Borrowing Agreements by creditors eligible to vote.
- Voting eligibility: creditors with effective 2020 Borrowing Agreement and included in the Fund's Financial Transactions Plan for transfers of its currency.
- Deactivation triggers:
  - automatic when NAB is no longer activated unless no available uncommitted NAB resources;
  - deactivated if modified FCC (excluding Bilateral Borrowing Agreements) rises above activation threshold and either:
    - (i) Executive Board determines activation no longer necessary, or
    - (ii) six months elapse since Managing Director notification without modified FCC falling below activation threshold.
- Use while activated:
  - (i) fund any outright purchases made from the GRA during the term; and
  - (ii) approve commitments of GRA resources under Fund arrangements 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 any period this agreement is not activated; commitments include those whose approval caused the activation threshold to be reached.
- Early repayment funding:
  - resources may be used to fund early repayment of claims under other 2020 Borrowing Agreements if relevant creditors request early repayment (paragraph 8).
  - Drawings to fund such early repayment may be made while 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.

### Estimates, Notices, and Limits on Drawings
- Prior to each plan period the Fund shall provide Deutsche Bundesbank best estimates of expected draws and revised estimates when warranted.
- No inclusion/drawings if Germany is not included or proposed to be included in the Financial Transactions Plan for transfers of its currency.
- No drawings if Germany is included in the periodic plan but its currency is not being used in transfers under the Financial Transactions Plan because of Germany's balance of payments and reserve position.
- If Germany was not included at activation vote but later included, drawings may be made to fund purchases made and commitments approved during activation unless Deutsche Bundesbank notifies the Fund it does not wish to be drawn upon.
- Notice requirements:
  - At least five business days' (Frankfurt am Main) 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' (Frankfurt am Main) notice if five days not possible; Deutsche Bundesbank to make best efforts to meet such a call.

### Evidence of Indebtedness, Maturity, and Repayment
- Outstanding drawings will be included in statements of Germany's position in the Fund published monthly.
- At Deutsche Bundesbank request, Fund shall issue non-negotiable instruments evidencing the Fund's indebtedness to Deutsche Bundesbank under this agreement.
- Instruments returned for cancellation upon full repayment and accrued interest; if partially repaid, instrument returned and new instrument substituted for remainder with same maturity date.
- Standard maturity: three months from drawing date for each drawing (subject to paragraph exceptions).
- Extension: Fund may elect to extend maturity by additional three-month periods; extensions deemed elected for all drawings then outstanding unless Fund notifies Deutsche Bundesbank at least five business days (Fund) before a maturity date that it does not elect extension for a particular drawing or portion.
- Limits on extension:
  - (i) maturity date of any drawing to fund purchases from the GRA shall not be extended later than the tenth anniversary of the date of such drawing;
  - (ii) maturity date for drawings to fund early repayment of other creditors' claims per paragraph 2(e) shall be a single common maturity date equal to the longest remaining maximum maturity of any claim for which such early repayment was requested or the tenth anniversary of the drawing date, whichever is earlier.
- Repayment: Fund shall repay principal on applicable maturity date.
- Early repayment by Fund: may make early repayment in part or full after consultation and at least five business days (Fund) notice by rapid authenticated means.
- Repayments restore pro tanto the amount drawable under this agreement; extension of maturity does not reduce drawable amount.
- Business day rule: if maturity not a business day where payment is to be made, payment date will be next business day in that place; interest accrues up to payment date.

### Rate of Interest
- Interest rate: SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund's Articles of Agreement.
- Exception: if the Fund pays a higher interest rate on outstanding balances from any other borrowing on comparable terms effected pursuant to Article VII, Section 1(i), and such higher rate remains in effect, the interest rate payable under this agreement shall be equivalent to that higher interest rate.
- Interest calculation: calculated on basis of outstanding amount of the drawing, accrues daily, and paid promptly after each July 31, October 31, January 31, and April 30.

### Denomination, Modalities of Drawings and Payments, and Exchange Rates
- Denomination: each drawing and corresponding repayment denominated in SDRs.
- Payment of drawings: Deutsche Bundesbank will pay the SDR equivalent amount of euro to the Fund's designated depository of Germany on the value date specified in the Fund's notice.
- For drawings under paragraph 2(e): Deutsche Bundesbank to ensure that balances drawn that are not freely usable currency can be exchanged for a freely usable currency of its choice; for balances that are freely usable currency, Bundesbank shall collaborate to enable exchange for another freely usable currency.
- Repayment of principal: as determined by the Fund, to be made in the currency borrowed whenever feasible, in euro, in special drawing rights (subject to Article XIX, Section 4 limit and Germany's agreement), in freely usable currencies, or with Bundesbank agreement in other currencies included in the Fund's Financial Transactions Plan for transfers.
- Interest payments: normally in SDRs; Fund and Bundesbank may agree interest payments in euro.
- Payment accounts: euro payments to account specified by Deutsche Bundesbank; SDR payments by crediting Germany's account in the Special Drawing Rights Department; other currencies to account specified by Deutsche Bundesbank.
- Effective Exchange Rate:
  - rates for relevant currencies in terms of the SDR established pursuant to Article XIX, Section 7(a) and Fund rules for the second business day of the Fund before the value date of the transfer, exchange or payment.
  - If that exchange rate determination date is not a business day in Frankfurt am Main, the date shall be the last preceding business day of the Fund that is also a business day in Frankfurt am Main.
  - For applying drawing limits in paragraphs 1(a), 15(c), and 15(e), euro value of each SDR-denominated drawing determined and permanently fixed on the drawing value date based on the euro/SDR exchange rate established pursuant to Article XIX, Section 7(a) and Fund rules for the second business day of the Fund before the drawing value date; if that date is not a business day in Frankfurt am Main, the last preceding business day of the Fund that is also a business day in Frankfurt am Main shall apply.
- Changes in Method of Valuation of SDR:
  - 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.

### Early Repayment at Deutsche Bundesbank Request and Non-Subordination
- Deutsche Bundesbank may request early repayment at face value of all or part of outstanding drawings if:
  - (i) Deutsche Bundesbank represents Germany's balance of payments and reserve position justifies repayment; and
  - (ii) Fund, giving the representation the overwhelming benefit of any doubt, determines there is a need for early repayment in light of Germany's balance of payments and reserve position.
- Repayments under this paragraph may be made in SDRs or a freely usable currency as determined by the Fund or, with Bundesbank agreement, in currencies of other members included in the Fund's Financial Transactions Plan for transfers.
- Non-Subordination of Claims: The Fund agrees it will not take any action that would have the effect of making Deutsche Bundesbank'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).

### Transferability and Related Conditions
- General rule: Deutsche Bundesbank may not transfer its obligations or claims under this agreement except with Fund consent.
- Permitted transfers: Deutsche Bundesbank may transfer all or part of any claim to any Fund member, 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:
  - transferee assumes liabilities concerning extension of maturity under paragraph 5(a) for drawings related to the transferred claim;
  - transferred claim held on same terms and conditions, except:
    - (i) transferee acquires right to request early repayment under paragraph 8 only if it is a member, or central bank or other fiscal agency of a member, and at transfer time the member's balance of payments and reserve position is considered sufficiently strong for its currency to be used in transfers under the Financial Transactions Plan;
    - (ii) if transferee is a member or its central bank/fiscal agency, reference to euro in paragraph 7 deemed to refer to the relevant member's currency; otherwise to a freely usable currency determined by the Fund;
    - (iii) payments related to transferred claim made to account specified by transferee;
    - (iv) references to business days (Frankfurt am Main) deemed to refer to business days in place where transferee is situated.
- Price: price of transferred claim as agreed between Deutsche Bundesbank and transferee.
- Notification: Deutsche Bundesbank shall notify Fund promptly of claim transferred, transferee name, amount, agreed price, and value date.
- Recordation: transfer reflected in Fund records if in accordance with paragraph 9 terms; effective as of agreed value date.
- Interest payment during quarter: if claim transferred during a quarterly period as described in paragraph 6(b), Fund shall pay interest to transferee on amount of claim transferred for whole of that period.
- Assistance: Fund shall assist in seeking to arrange transfers if requested.

### Transitional Arrangements (paragraph 15)
- The Fund, regardless of whether this agreement is activated, shall:
  - (i) subject to paragraph 15(b), make drawings under this agreement to repay any outstanding claims under Deutsche Bundesbank'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) 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 Bilateral 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.
- Paragraph 15(b):
  - To the extent that claims under Deutsche Bundesbank's 2016 Borrowing Agreement or this agreement are outstanding when the increase in the NAB credit arrangement of Deutsche Bundesbank's becomes effective, Deutsche Bundesbank shall be deemed to request, 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 the NAB credit arrangement of Deutsche Bundesbank 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 the NAB credit arrangement of Deutsche Bundesbank and this agreement enter into effect at the same time, the repayment of Deutsche Bundesbank's outstanding claims under Deutsche Bundesbank's 2016 Borrowing Agreement shall be funded first with calls under Deutsche Bundesbank's NAB credit arrangement before drawings are made under this agreement pursuant to paragraph 15(a).
- Paragraph 15(c):
  - If following the repayment of outstanding claims under Deutsche Bundesbank's 2016 Borrowing Agreement and this agreement as provided in paragraph 15(b), Deutsche Bundesbank'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 Deutsche Bundesbank'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.
- Paragraph 15(d): After the entry into effect of this agreement, the Fund may make no further drawing under Deutsche Bundesbank's 2016 Borrowing Agreement.
- Paragraph 15(e):
  - No drawing under this agreement shall be made that would cause total outstanding drawings under both this agreement and the 2016 Borrowing Agreement between Deutsche Bundesbank and the Fund, at the time of such drawing, to:
    - (i) exceed the Loan Amount prior to the effectiveness of the increase in Deutsche Bundesbank's NAB credit arrangement, or
    - (ii) exceed the Rolled Back Loan Amount upon and after the effectiveness of the increase in Deutsche Bundesbank'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 Deutsche Bundesbank's NAB credit arrangement, and Deutsche Bundesbank hereby requests the Managing Director to make such calls to fund the repayment in accordance with paragraph 23 of the Fund's Decision No.11428-(97/6).

### Final Provisions, Signatures, and Dates
- Paragraph 16(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.
- Paragraph 16(b): This agreement shall become effective on the date last signed below or on January 1, 2021, or the date on which Germany 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 Deutsche Bundesbank, whichever is later.
- Signatories:
  - For Deutsche Bundesbank:
    - Jens Weidmann, President
    - Claudia M. Buch, Vice-President
  - For the International Monetary Fund:
    - Kristalina Georgieva, Managing Director
- Signature date recorded: 10/29/2020

*Source: Loan Agreement between the Deutsche Bundesbank and the International Monetary Fund (Sections 1 and 2).*

### Section 1

### Loan Agreement between the Deutsche Bundesbank and the International Monetary Fund

### 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 EUR41,500million (the "Loan Amount").
- Rolled Back Loan Amount: upon effectiveness of the NAB Reform, the Loan Amount will be automatically reduced to an SDR-denominated amount up to the equivalent of EUR17,878million (the "RolledBackLoanAmount").
- Legal basis: Article VII, Section 1(i) of the Fund's Articles of Agreement and the Guidelines for Borrowing by the Fund.
- Definitions: agreements entered into or amended pursuant to the March 2020 borrowing framework are "2020 Borrowing Agreements"; those pursuant to August 2016 are "2016 Borrowing Agreements"; collectively "Bilateral Borrowing Agreements".

### Term of the Agreement and Use
- Term end date: December 31, 2023.
- Extension: Fund may extend term for one further year through December 31, 2024 by Executive Board decision and with Deutsche Bundesbank consent.
- Activation threshold: Forward Commitment Capacity (modified FCC) below SDR100billion required for activation.
- Activation conditions: Managing Director notification requires (I) NAB is activated or no available uncommitted NAB resources at notification time, and (II) approval by creditors representing at least 85 percent of the total credit amount committed under the 2020 Borrowing Agreements by creditors eligible to vote.
- Voting eligibility: creditors with effective 2020 Borrowing Agreement and included in the Fund's Financial Transactions Plan for transfers of its currency.
- Deactivation triggers: automatic when NAB is no longer activated unless no available uncommitted NAB resources; also deactivated if modified FCC (excluding Bilateral Borrowing Agreements) rises above activation threshold and (i) Executive Board determines activation no longer necessary, or (ii) six months elapse since Managing Director notification without modified FCC falling below activation threshold.
- Use while activated:
  - (i) fund any outright purchases made from the GRA during the term; and
  - (ii) approve commitments of GRA resources under Fund arrangements 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 any period this agreement is not activated; commitments include those whose approval caused the activation threshold to be reached.
- Early repayment funding: resources may be used to fund early repayment of claims under other 2020 Borrowing Agreements if relevant creditors request early repayment (paragraph 8). Drawings to fund such early repayment may be made while 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.

### Estimates, Notices, and Limits on Drawings
- Prior to each plan period the Fund shall provide Deutsche Bundesbank best estimates of expected draws and revised estimates when warranted.
- No inclusion/drawings if Germany is not included or proposed to be included in the Financial Transactions Plan for transfers of its currency.
- No drawings if Germany is included in the periodic plan but its currency is not being used in transfers under the Financial Transactions Plan because of Germany's balance of payments and reserve position.
- If Germany was not included at activation vote but later included, drawings may be made to fund purchases made and commitments approved during activation unless Deutsche Bundesbank notifies the Fund it does not wish to be drawn upon.
- Notice requirements:
  - At least five business days' (Frankfurt am Main) 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' (Frankfurt am Main) notice if five days not possible; Deutsche Bundesbank to make best efforts to meet such a call.

### Evidence of Indebtedness
- Outstanding drawings will be included in statements of Germany's position in the Fund published monthly.
- At Deutsche Bundesbank request, Fund shall issue non-negotiable instruments evidencing the Fund's indebtedness to Deutsche Bundesbank under this agreement.
- Instruments returned for cancellation upon full repayment and accrued interest; if partially repaid, instrument returned and new instrument substituted for remainder with same maturity date.

### Maturity
- Standard maturity: three months from drawing date for each drawing (subject to paragraph exceptions).
- Extension: Fund may elect to extend maturity by additional three-month periods; extensions deemed elected for all drawings then outstanding unless Fund notifies Deutsche Bundesbank at least five business days (Fund) before a maturity date that it does not elect extension for a particular drawing or portion.
- Limits on extension:
  - (i) maturity date of any drawing to fund purchases from the GRA shall not be extended later than the tenth anniversary of the date of such drawing;
  - (ii) maturity date for drawings to fund early repayment of other creditors' claims per paragraph 2(e) shall be a single common maturity date equal to the longest remaining maximum maturity of any claim for which such early repayment was requested or the tenth anniversary of the drawing date, whichever is earlier.
- Repayment: Fund shall repay principal on applicable maturity date.
- Early repayment by Fund: may make early repayment in part or full after consultation and at least five business days (Fund) notice by rapid authenticated means.
- Repayments restore pro tanto the amount drawable under this agreement; extension of maturity does not reduce drawable amount.
- Business day rule: if maturity not a business day where payment is to be made, payment date will be next business day in that place; interest accrues up to payment date.

### Rate of Interest
- Interest rate: SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund's Articles of Agreement.
- Exception: if the Fund pays a higher interest rate on outstanding balances from any other borrowing on comparable terms effected pursuant to Article VII, Section 1(i), and such higher rate remains in effect, the interest rate payable under this agreement shall be equivalent to that higher interest rate.
- Interest calculation: calculated on basis of outstanding amount of the drawing, accrues daily, and paid promptly after each July 31, October 31, January 31, and April 30.

### Denomination, Media and Modalities of Drawings and Payments
- Denomination: each drawing and corresponding repayment denominated in SDRs.
- Payment of drawings: Deutsche Bundesbank will pay the SDR equivalent amount of euro to the Fund's designated depository of Germany on the value date specified in the Fund's notice.
- For drawnings under paragraph 2(e): Deutsche Bundesbank to ensure that balances drawn that are not freely usable currency can be exchanged for a freely usable currency of its choice; for balances that are freely usable currency, Bundesbank shall collaborate to enable exchange for another freely usable currency.
- Repayment of principal: as determined by the Fund, to be made in the currency borrowed whenever feasible, in euro, in special drawing rights (subject to Article XIX, Section 4 limit and Germany's agreement), in freely usable currencies, or with Bundesbank agreement in other currencies included in the Fund's Financial Transactions Plan for transfers.
- Interest payments: normally in SDRs; Fund and Bundesbank may agree interest payments in euro.
- Payment accounts: euro payments to account specified by Deutsche Bundesbank; SDR payments by crediting Germany's account in the Special Drawing Rights Department; other currencies to account specified by Deutsche Bundesbank.

### Early Repayment at Request of the Deutsche Bundesbank
- Deutsche Bundesbank may request early repayment at face value of all or part of outstanding drawings if:
  - (i) Deutsche Bundesbank represents Germany's balance of payments and reserve position justifies repayment; and
  - (ii) Fund, giving the representation the overwhelming benefit of any doubt, determines there is a need for early repayment in light of Germany's balance of payments and reserve position.
- Repayments under this paragraph may be made in SDRs or a freely usable currency as determined by the Fund or, with Bundesbank agreement, in currencies of other members included in the Fund's Financial Transactions Plan for transfers.

### Transferability
- General rule: Deutsche Bundesbank may not transfer its obligations or claims under this agreement except with Fund consent.
- Permitted transfers: Deutsche Bundesbank may transfer all or part of any claim to any Fund member, 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:
  - transferee assumes liabilities concerning extension of maturity under paragraph 5(a) for drawings related to the transferred claim;
  - transferred claim held on same terms and conditions, except:
    - (i) transferee acquires right to request early repayment under paragraph 8 only if it is a member, or central bank or other fiscal agency of a member, and at transfer time the member's balance of payments and reserve position is considered sufficiently strong for its currency to be used in transfers under the Financial Transactions Plan;
    - (ii) if transferee is a member or its central bank/fiscal agency, reference to euro in paragraph 7 deemed to refer to the relevant member's currency; otherwise to a freely usable currency determined by the Fund;
    - (iii) payments related to transferred claim made to account specified by transferee;
    - (iv) references to business days (Frankfurt am Main) deemed to refer to business days in place where transferee is situated.
- Price: price of transferred claim as agreed between Deutsche Bundesbank and transferee.
- Notification: Deutsche Bundesbank shall notify Fund promptly of claim transferred, transferee name, amount, agreed price, and value date.
- Recordation: transfer reflected in Fund records if in accordance with paragraph 9 terms; effective as of agreed value date.
- Interest payment during quarter: if claim transferred during a quarterly period as described in paragraph 6(b), Fund shall pay interest to transferee on amount of claim transferred for whole of that period.
- Assistance: Fund shall assist in seeking to arrange transfers if requested.

### Effective Exchange Rate
- Exchange rate for drawings, exchanges, and payments: rates for relevant currencies in terms of the SDR established pursuant to Article XIX, Section 7(a) of the Fund's Articles of Agreement and Fund rules for the second business day of the Fund before the value date of the transfer, exchange or payment.
- If that exchange rate determination date is not a business day in Frankfurt am Main, the date shall be the last preceding business day of the Fund that is also a business day in Frankfurt am Main.
- For applying drawing limits in paragraphs 1(a), 15(c), and 15(e), euro value of each SDR-denominated drawing determined and permanently fixed on the drawing value date based on the euro/SDR exchange rate established pursuant to Article XIX, Section 7(a) and Fund rules for the second business day of the Fund before the drawing value date; if that date is not a business day in Frankfurt am Main, the last preceding business day of the Fund that is also a business day in Frankfurt am Main shall apply.

### Changes in Method of Valuation of SDR
- 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
- The Fund agrees it will not take any action that would have the effect of making Deutsche Bundesbank'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
- Any question arising under this agreement shall be settled by mutual agreement between Deutsche Bundesbank and the Fund.

*Source: Loan Agreement between the Deutsche Bundesbank and the International Monetary Fund (Section 1).*

### Section 2

### pr214-signed-germany-2020-borrowing-agreements - Section 2

### Transitional arrangements (paragraph 15)
- Regardless of whether this agreement is activated or not, the Fund:
  - (i) subject to paragraph 15(b) below, shall make drawings under this agreement to repay any outstanding claims under Deutsche Bundesbank'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 Bilateral 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.

- Paragraph 15(b):
  - To the extent that claims under Deutsche Bundesbank's 2016 Borrowing Agreement or this agreement are outstanding when the increase in the NAB credit arrangement of Deutsche Bundesbank's becomes effective, Deutsche Bundesbank shall be deemed to request, 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 the NAB credit arrangement of Deutsche Bundesbank 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 the NAB credit arrangement of Deutsche Bundesbank and this agreement enter into effect at the same time, the repayment of Deutsche Bundesbank's outstanding claims under Deutsche Bundesbank's 2016 Borrowing Agreement shall be funded first with calls under Deutsche Bundesbank's NAB credit arrangement before drawings are made under this agreement pursuant to paragraph 15(a) above.

- Paragraph 15(c):
  - If following the repayment of outstanding claims under Deutsche Bundesbank's 2016 Borrowing Agreement and this agreement as provided in paragraph 15(b) above, Deutsche Bundesbank'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 Deutsche Bundesbank'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.

- Paragraph 15(d):
  - After the entry into effect of this agreement, the Fund may make no further drawing under Deutsche Bundesbank's 2016 Borrowing Agreement.

- Paragraph 15(e):
  - No drawing under this agreement shall be made that would cause total outstanding drawings under both this agreement and the 2016 Borrowing Agreement between Deutsche Bundesbank and the Fund, at the time of such drawing, to
    - (i) exceed the Loan Amount prior to the effectiveness of the increase in Deutsche Bundesbank's NAB credit arrangement, or
    - (ii) exceed the Rolled Back Loan Amount upon and after the effectiveness of the increase in Deutsche Bundesbank'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 Deutsche Bundesbank's NAB credit arrangement, and Deutsche Bundesbank hereby requests the Managing Director to 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 16)
- Paragraph 16(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.
- Paragraph 16(b):
  - This agreement shall become effective on the date last signed below or on January 1, 2021, or the date on which Germany 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 Deutsche Bundesbank, whichever is later.

### Signatures and dates
- For Deutsche Bundesbank:
  - Jens Weidmann, President
  - Claudia M. Buch, Vice-President
- For the International Monetary Fund:
  - Kristalina Georgieva, Managing Director
- Signature date recorded: 10/29/2020

*Source: https://www.imf.org/-/media/files/news/press-release/2021/pr214/pr214-signed-germany-2020-borrowing-agreements.pdf*

---


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