## 1. Purposes and Amounts ## Source details **Canonical URL:** [1. Purposes and Amounts](https://www.imf.org/-/media/files/news/press-release/2021/pr214/pr214-signed-netherlands-2020-borrowing-agreements.pdf) ## Other formats - [Markdown version](/-/media/files/news/press-release/2021/pr214/pr214-signed-netherlands-2020-borrowing-agreements.pdf.md) - [Structured JSON version](/-/media/files/news/press-release/2021/pr214/pr214-signed-netherlands-2020-borrowing-agreements.pdf.json) --- ### Purpose and principal amounts - Objective: enhance the resources available on a temporary basis to the International Monetary Fund (the “Fund”) for crisis prevention and resolution through bilateral borrowing. - Loan commitments by De Nederlandsche Bank NV: - Loan Amount: an SDR-denominated amount up to the equivalent of EUR 13,610 million. - Rolled Back Loan Amount: upon effectiveness 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 5,863 million. - Legal basis: Article VII, Section 1(i) of the Fund’s Articles of Agreement; agreement to be considered in light of the Guidelines for Borrowing by the Fund (quota subscriptions remain the basic source of Fund financing; borrowing is a temporary supplement). ### Relationship to other borrowing frameworks - Terminology: - “2020 Borrowing Agreement”: each bilateral borrowing agreement entered or amended pursuant to the borrowing framework approved by the Fund in March 2020. - “2016 Borrowing Agreement”: each bilateral borrowing agreement entered pursuant to the borrowing framework approved in August 2016. - Collectively: the “Bilateral Borrowing Agreements”. ### 2. Term, Activation Conditions, and Permitted Uses ### Term and extension - Agreement term ends on December 31, 2023. - The Fund may extend the term for one further year through December 31, 2024 by Executive Board decision and with the written consent of De Nederlandsche Bank NV. ### Activation conditions (2020 Borrowing Agreements) - Activation threshold: the Fund’s modified FCC (Forward Commitment Capacity, Decision No. 14906-(11/38), adopted April 20, 2011, taking into account all available uncommitted NAB resources) is below SDR 100 billion. - Additional conditions before the Managing Director notifies the Executive Board: - (i) the NAB is activated as of the time of notification, or there are no available uncommitted resources under the NAB as of that time; and - (ii) activation has been approved 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: a creditor is not eligible to vote if, at the time of the vote, its 2020 Borrowing Agreement is not effective, or the relevant member is not included in the Fund’s Financial Transactions Plan for transfers of its currency. - Managing Director may approach creditors before the modified FCC is below the activation threshold if extraordinary circumstances warrant. ### Deactivation rules - Automatic deactivation whenever NAB is no longer activated, unless there are no available uncommitted NAB resources 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 elapse since notification and the modified FCC has not fallen below the threshold. - If deactivated under these rules and the modified FCC later falls below the threshold, paragraph 2(b) procedures apply. ### Permitted uses while activated - (i) Fund may use resources under this agreement to fund any outright purchases from the GRA during the term of the agreement. - (ii) Fund may approve commitments of GRA resources whose purchases could be funded by drawings under this agreement at any time during the period of such commitments, including after expiration of the agreement or during any period in which the agreement is no longer activated; commitments covered include any commitment whose approval caused the activation threshold to be reached. - (e) Following activation, resources may also be used to fund early repayment of claims under other 2020 Borrowing Agreements if relevant creditors request early repayment per paragraph 8; drawings to fund such early repayments may be made for as long as claims under the 2020 Borrowing Agreements remain outstanding, including after expiration of the agreement or during any deactivated period. - 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 ### Planning and eligibility - Prior to each plan period, the Fund provides De Nederlandsche Bank NV with its best estimates of expected drawings for the forthcoming period and revised estimates as warranted. - De Nederlandsche Bank NV shall not be included in the periodic plan, and no drawings shall be made under this agreement, if the Netherlands is not included and is not being proposed by the Managing Director to be included in the Financial Transactions Plan for transfers of its currency. - No drawings if De Nederlandsche Bank NV was included in the periodic plan but, at the time of drawing, the Netherlands’ currency is not being used in transfers under the Financial Transactions Plan because of the Netherlands’ balance of payments and reserve position. - If the Netherlands was not included at activation and is subsequently included, drawings may be made to fund purchases and commitments approved during the activation period unless De Nederlandsche Bank NV notifies the Fund it does not wish to be drawn upon. ### Notice requirements - At least five business days’ (Amsterdam) notice of intention to draw; payment instructions at least two business days (Fund) prior to the value date by rapid authenticated means (e.g., SWIFT). - Exceptional circumstances: if five business days’ notice not possible, at least three business days (Amsterdam) notice; De Nederlandsche Bank NV will make best efforts to meet such a call. ### 4. Evidence of Indebtedness - Outstanding drawings included in the statements of the Netherlands’ position in the Fund published monthly. - At De Nederlandsche Bank NV’s request, the Fund will issue non-negotiable instruments evidencing indebtedness: - Upon repayment of an instrument and all accrued interest, the instrument is returned for cancellation. - If partial repayment, instrument returned and substituted for remainder with same maturity date. ### 5. Maturity, Repayment, and Extensions ### Standard maturity and extensions - Each drawing shall have a maturity date of three months from the drawing date, except as otherwise provided. - Fund may elect to extend maturity by additional periods of three months after initial maturity; such extensions deemed automatic for all drawings unless Fund notifies De Nederlandsche Bank NV at least five business days (Fund) before a maturity date that it does not elect to extend. ### Limits on extensions - (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) For drawings to fund early repayments of other creditors’ claims (paragraph 2(e)), the maturity date shall be a single common maturity date equal to the longest remaining maximum maturity of any claim for which early repayment was requested or the tenth anniversary of the date of the relevant drawing to fund early repayment, whichever is earlier. - Following an Executive Board determination that exceptional circumstances exist due to shortage of Fund resources relative to obligations falling due, the Fund, with De Nederlandsche Bank NV agreement, may extend maximum maturity for drawings under this agreement up to an additional five years. ### Repayment mechanics - Fund shall repay principal on applicable maturity date. - Fund may make early repayment in part or full after consultation with De Nederlandsche Bank NV, with at least five business days (Fund) notice by rapid authenticated means. - Repayments restore pro tanto the amount that can be drawn; extensions of maturity do not reduce drawable amount. - If maturity date is not a business day where payment is to be made, payment date is next business day; interest accrues up to payment date. ### 6. Rate of Interest and Interest Payments ### Interest rate - Each drawing bears interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement. - If the Fund pays an interest rate higher than the SDR interest rate on outstanding balances from any other comparable borrowing effected pursuant to Article VII, Section 1(i), then the interest rate payable under this agreement shall be equivalent to the interest rate paid by the Fund on such other comparable borrowing for as long as that higher rate remains in effect. ### Interest calculation and payment timing - Interest calculated on outstanding amount of each drawing; accrues daily. - Interest to be paid promptly by the Fund after each July 31, October 31, January 31, and April 30. ### 7. Denomination, Payment Media, and Modalities ### Denomination - Each drawing and corresponding repayment denominated in SDRs. ### Payment mechanics - Unless otherwise agreed, De Nederlandsche Bank NV pays the SDR-equivalent amount of euro to the Fund’s account at the designated depository of the Netherlands on the value date specified in the Fund’s notice. - For drawings under paragraph 2(e), De Nederlandsche Bank NV must ensure that balances drawn that are not balances of a freely usable currency can be exchanged for a freely usable currency of its choice; for balances that are freely usable currencies, it shall collaborate with the Fund and other members to enable exchange for another freely usable currency. ### Repayment currency options - Except as provided in paragraph 8, repayment of principal shall be made, as determined by the Fund, in the currency borrowed whenever feasible, in euro, in special drawing rights (subject to Article XIX, Section 4 limits unless Netherlands agrees to accept SDRs above that limit), in freely usable currencies, or, with De Nederlandsche Bank NV agreement, in other currencies included in the Fund’s Financial Transactions Plan for transfers. - Interest payments normally in SDRs; Fund and De Nederlandsche Bank NV may agree that interest payments be made in euro. - All euro payments to an account specified by De Nederlandsche Bank NV; SDR payments by crediting the Netherlands’ account in the Special Drawing Rights Department; other currencies to an account specified by De Nederlandsche Bank NV. ### 8. Early Repayment at Request of De Nederlandsche Bank NV - De Nederlandsche Bank NV may obtain early repayment at face value of all or part of outstanding drawings if: - (i) De Nederlandsche Bank NV represents that the Netherlands’ balance of payments and reserve position justifies such repayment; and - (ii) the Fund, giving the representation the overwhelming benefit of any doubt, determines that early repayment is needed in light of the Netherlands’ balance of payments and reserve position. - After consultation, Fund may make repayments in SDRs or a freely usable currency as determined by the Fund or, with De Nederlandsche Bank NV agreement, in currencies of other members included in the Fund’s Financial Transactions Plan for transfers. ### 9. Transferability of Claims and Obligations ### General rule and permitted transfers - De Nederlandsche Bank NV may not transfer obligations under this agreement or claims resulting from outstanding drawings except with Fund’s prior consent and on terms approved by the Fund, subject to subparagraphs (b)–(h). - De Nederlandsche Bank NV may transfer at any time all or part of any claim on the Fund from outstanding drawings 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”); - any official entity prescribed as a holder of SDRs pursuant to Article XVII, Section 3. ### Conditions on transferees and operational details - Transferee assumes liability of De Nederlandsche Bank NV with respect to paragraph 5(a) extensions and exceptional maximum maturity extensions. - Transferred claims 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 the central bank/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 fiscal agency, the reference to euro in paragraph 7 is deemed to refer to the currency of the relevant member; otherwise it is deemed to refer to a freely usable currency determined by the Fund; - (iii) payments related to transferred claim shall be made to an account specified by the transferee; - (iv) references to business days (Amsterdam) deemed to refer to business days in the place where the transferee is situated. - Commercial terms and notifications: - Price of a transferred claim agreed between De Nederlandsche Bank NV and transferee. - De Nederlandsche Bank NV must promptly notify the Fund of the claim transferred, transferee name, amount transferred, agreed price, and value date. - Transfers reflected in Fund records if in accordance with paragraph 9 terms and conditions; effective as of agreed value date. - If a claim is transferred during a quarterly period as described in paragraph 6(b), the Fund shall pay interest to the transferee on the transferred amount for the whole of that period. - Fund will assist in seeking to arrange transfers if requested. ### 10. Effective Exchange Rate ### Exchange rate determination - 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, unless otherwise agreed between De Nederlandsche Bank NV and the Fund. - If this exchange rate determination date is not a business day in Amsterdam, such date shall be the last preceding business day of the Fund that is also a business day in Amsterdam. ### Euro value determination for SDR-denominated drawings - For purposes of applying the limit on drawings as specified in paragraphs 1(a), 15(c) and 15(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 Amsterdam, such date shall be the last preceding business day of the Fund that is also a business day in Amsterdam. ### 11. 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. ### 12. Non-Subordination of Claims - The Fund agrees that it will not take any action that would have the effect of making De Nederlandsche Bank NV’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. ### 13. Settlement of Questions - Any question arising under this agreement shall be settled by mutual agreement between De Nederlandsche Bank NV and the Fund. ### 14. Cooperation with the Fund - De Nederlandsche Bank NV stands ready to cooperate with the Fund in the spirit of IMFC/G-20 commitments as needed and appropriate. ### 15. Transitional Arrangements - (a) 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 De Nederlandsche Bank NV’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 De Nederlandsche Bank NV’s 2016 Borrowing Agreement or this agreement are outstanding when the increase in the Netherlands’ NAB credit arrangement becomes effective, De Nederlandsche Bank NV shall be deemed to request, on behalf of the Netherlands, 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 Netherlands’ 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 the Netherlands’ NAB credit arrangement and this agreement enter into effect at the same time, the repayment of De Nederlandsche Bank NV’s outstanding claims under De Nederlandsche Bank NV’s 2016 Borrowing Agreement shall be funded first with calls under the Netherlands’ NAB credit arrangement before drawings are made under this agreement pursuant to paragraph 15(a) above. - (c) If following the repayment of outstanding claims under De Nederlandsche Bank NV’s 2016 Borrowing Agreement and this agreement as provided in paragraph 15(b) above, De Nederlandsche Bank NV’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 De Nederlandsche Bank NV’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 De Nederlandsche Bank NV’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 De Nederlandsche Bank NV and the Fund, at the time of such drawing, to: - (i) exceed the Loan Amount prior to the effectiveness of the increase in the Netherlands’ NAB credit arrangement, or - (ii) exceed the Rolled Back Loan Amount upon and after the effectiveness of the increase in the Netherlands’ 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 the Netherlands’ NAB credit arrangement, and De Nederlandsche Bank NV hereby requests, on behalf of the Netherlands, 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. ### 16. Final Provisions - (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 the Netherlands 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 De Nederlandsche Bank NV, or on January 1, 2021, whichever is later. *Source: pr214-signed-netherlands-2020-borrowing-agreements (PDF).* ### 1. Purposes and Amounts. ### 1. Purposes and Amounts. ### Purpose and principal amounts - Objective: enhance the resources available on a temporary basis to the International Monetary Fund (the “Fund”) for crisis prevention and resolution through bilateral borrowing. - Loan commitments by De Nederlandsche Bank NV: - Loan Amount: an SDR-denominated amount up to the equivalent of EUR 13,610 million. - Rolled Back Loan Amount: upon effectiveness 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 5,863 million. - Legal basis: Article VII, Section 1(i) of the Fund’s Articles of Agreement; agreement to be considered in light of the Guidelines for Borrowing by the Fund (quota subscriptions remain the basic source of Fund financing; borrowing is a temporary supplement). ### Relationship to other borrowing frameworks - Terminology: - “2020 Borrowing Agreement”: each bilateral borrowing agreement entered or amended pursuant to the borrowing framework approved by the Fund in March 2020. - “2016 Borrowing Agreement”: each bilateral borrowing agreement entered pursuant to the borrowing framework approved in August 2016. - Collectively: the “Bilateral Borrowing Agreements”. ### Term, activation conditions, and permitted uses - Term: - Agreement term ends on December 31, 2023. - The Fund may extend the term for one further year through December 31, 2024 by Executive Board decision and with the written consent of De Nederlandsche Bank NV. - Activation conditions (applicable to the 2020 Borrowing Agreements): - Activation threshold: the Fund’s modified FCC (Forward Commitment Capacity, Decision No. 14906-(11/38), adopted April 20, 2011, taking into account all available uncommitted NAB resources) is below SDR 100 billion. - Additional conditions before the Managing Director notifies the Executive Board: (i) the NAB is activated as of the time of notification, or there are no available uncommitted resources under the NAB as of that time; and (ii) activation has been approved 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: a creditor is not eligible to vote if, at the time of the vote, its 2020 Borrowing Agreement is not effective, or the relevant member is not included in the Fund’s Financial Transactions Plan for transfers of its currency. - Managing Director may approach creditors before the modified FCC is below the activation threshold if extraordinary circumstances warrant. - Deactivation rules: - Automatic deactivation whenever NAB is no longer activated, unless there are no available uncommitted NAB resources 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 elapse since notification and the modified FCC has not fallen below the threshold. - If deactivated under these rules and the modified FCC later falls below the threshold, paragraph 2(b) procedures apply. - Permitted uses while activated: - (i) Fund may use resources under this agreement to fund any outright purchases from the GRA during the term of the agreement. - (ii) Fund may approve commitments of GRA resources whose purchases could be funded by drawings under this agreement at any time during the period of such commitments, including after expiration of the agreement or during any period in which the agreement is no longer activated; commitments covered include any commitment whose approval caused the activation threshold to be reached. - (e) Following activation, resources may also be used to fund early repayment of claims under other 2020 Borrowing Agreements if relevant creditors request early repayment per paragraph 8; drawings to fund such early repayments may be made for as long as claims under the 2020 Borrowing Agreements remain outstanding, including after expiration of the agreement or during any deactivated period. - 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 - Planning and eligibility: - Prior to each plan period, the Fund provides De Nederlandsche Bank NV with its best estimates of expected drawings for the forthcoming period and revised estimates as warranted. - De Nederlandsche Bank NV shall not be included in the periodic plan, and no drawings shall be made under this agreement, if the Netherlands is not included and is not being proposed by the Managing Director to be included in the Financial Transactions Plan for transfers of its currency. - No drawings if De Nederlandsche Bank NV was included in the periodic plan but, at the time of drawing, the Netherlands’ currency is not being used in transfers under the Financial Transactions Plan because of the Netherlands’ balance of payments and reserve position. - If the Netherlands was not included at activation and is subsequently included, drawings may be made to fund purchases and commitments approved during the activation period unless De Nederlandsche Bank NV notifies the Fund it does not wish to be drawn upon. - Notice requirements: - At least five business days’ (Amsterdam) notice of intention to draw; payment instructions at least two business days (Fund) prior to the value date by rapid authenticated means (e.g., SWIFT). - Exceptional circumstances: if five business days’ notice not possible, at least three business days (Amsterdam) notice; De Nederlandsche Bank NV will make best efforts to meet such a call. ### Evidence of indebtedness - Outstanding drawings included in the statements of the Netherlands’ position in the Fund published monthly. - At De Nederlandsche Bank NV’s request, the Fund will issue non-negotiable instruments evidencing indebtedness: - Upon repayment of an instrument and all accrued interest, the instrument is returned for cancellation. - If partial repayment, instrument returned and substituted for remainder with same maturity date. ### Maturity, repayment, and extensions - Standard maturity: - Each drawing shall have a maturity date of three months from the drawing date, except as otherwise provided. - Fund may elect to extend maturity by additional periods of three months after initial maturity; such extensions deemed automatic for all drawings unless Fund notifies De Nederlandsche Bank NV at least five business days (Fund) before a maturity date that it does not elect to extend. - Limits on extensions: - (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) For drawings to fund early repayments of other creditors’ claims (paragraph 2(e)), the maturity date shall be a single common maturity date equal to the longest remaining maximum maturity of any claim for which early repayment was requested or the tenth anniversary of the date of the relevant drawing to fund early repayment, whichever is earlier. - Notwithstanding the above, following an Executive Board determination that exceptional circumstances exist due to shortage of Fund resources relative to obligations falling due, the Fund, with De Nederlandsche Bank NV agreement, may extend maximum maturity for drawings under this agreement up to an additional five years. - Repayment mechanics: - Fund shall repay principal on applicable maturity date. - Fund may make early repayment in part or full after consultation with De Nederlandsche Bank NV, with at least five business days (Fund) notice by rapid authenticated means. - Repayments restore pro tanto the amount that can be drawn; extensions of maturity do not reduce drawable amount. - If maturity date is not a business day where payment is to be made, payment date is next business day; interest accrues up to payment date. ### Rate of interest and interest payments - Interest rate: - Each drawing bears interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement. - If the Fund pays an interest rate higher than the SDR interest rate on outstanding balances from any other comparable borrowing effected pursuant to Article VII, Section 1(i), then the interest rate payable under this agreement shall be equivalent to the interest rate paid by the Fund on such other comparable borrowing for as long as that higher rate remains in effect. - Interest calculation and payment timing: - Interest calculated on outstanding amount of each drawing; accrues daily. - Interest to be paid promptly by the Fund after each July 31, October 31, January 31, and April 30. ### Denomination, payment media, and modalities - Denomination: - Each drawing and corresponding repayment denominated in SDRs. - Payment mechanics: - Unless otherwise agreed, De Nederlandsche Bank NV pays the SDR-equivalent amount of euro to the Fund’s account at the designated depository of the Netherlands on the value date specified in the Fund’s notice. - For drawings under paragraph 2(e), De Nederlandsche Bank NV must ensure that balances drawn that are not balances of a freely usable currency can be exchanged for a freely usable currency of its choice; for balances that are freely usable currencies, it shall collaborate with the Fund and other members to enable exchange for another freely usable currency. - Repayment currency options: - Except as provided in paragraph 8, repayment of principal shall be made, as determined by the Fund, in the currency borrowed whenever feasible, in euro, in special drawing rights (subject to Article XIX, Section 4 limits unless Netherlands agrees to accept SDRs above that limit), in freely usable currencies, or, with De Nederlandsche Bank NV agreement, in other currencies included in the Fund’s Financial Transactions Plan for transfers. - Interest payments normally in SDRs; Fund and De Nederlandsche Bank NV may agree that interest payments be made in euro. - All euro payments to an account specified by De Nederlandsche Bank NV; SDR payments by crediting the Netherlands’ account in the Special Drawing Rights Department; other currencies to an account specified by De Nederlandsche Bank NV. ### Early repayment at request of De Nederlandsche Bank NV - De Nederlandsche Bank NV may obtain early repayment at face value of all or part of outstanding drawings if: - (i) De Nederlandsche Bank NV represents that the Netherlands’ balance of payments and reserve position justifies such repayment; and - (ii) the Fund, giving the representation the overwhelming benefit of any doubt, determines that early repayment is needed in light of the Netherlands’ balance of payments and reserve position. - Currency of such repayments: after consultation, Fund may make repayments in SDRs or a freely usable currency as determined by the Fund or, with De Nederlandsche Bank NV agreement, in currencies of other members included in the Fund’s Financial Transactions Plan for transfers. ### Transferability of claims and obligations - General rule: - De Nederlandsche Bank NV may not transfer obligations under this agreement or claims resulting from outstanding drawings except with Fund’s prior consent and on terms approved by the Fund, subject to subparagraphs (b)–(h). - Permitted transfers (subparagraph (b)): - De Nederlandsche Bank NV may transfer at any time all or part of any claim on the Fund from outstanding drawings 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”); - any official entity prescribed as a holder of SDRs pursuant to Article XVII, Section 3. - Conditions on transferees (subparagraph (c)): - Transferee assumes liability of De Nederlandsche Bank NV with respect to paragraph 5(a) extensions and exceptional maximum maturity extensions. - Transferred claims 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 the central bank/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 fiscal agency, the reference to euro in paragraph 7 is deemed to refer to the currency of the relevant member; otherwise it is deemed to refer to a freely usable currency determined by the Fund; - (iii) payments related to transferred claim shall be made to an account specified by the transferee; - (iv) references to business days (Amsterdam) deemed to refer to business days in the place where the transferee is situated. - Commercial terms and notifications: - Price of a transferred claim agreed between De Nederlandsche Bank NV and transferee. - De Nederlandsche Bank NV must promptly notify the Fund of the claim transferred, transferee name, amount transferred, agreed price, and value date. - Transfers reflected in Fund records if in accordance with paragraph 9 terms and conditions; effective as of agreed value date. - If a claim is transferred during a quarterly period as described in paragraph 6(b), the Fund shall pay interest to the transferee on the transferred amount for the whole of that period. - Fund will assist in seeking to arrange transfers if requested. *Source: https://www.imf.org/-/media/files/news/press-release/2021/pr214/pr214-signed-netherlands-2020-borrowing-agreements.pdf* ### 10. Effective Exchange Rate. ### 10. Effective Exchange Rate. ### Effective exchange rate provisions - (a) 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, unless otherwise agreed between De Nederlandsche Bank NV and the Fund. - If this exchange rate determination date is not a business day in Amsterdam, such date shall be the last preceding business day of the Fund that is also a business day in Amsterdam. ### Euro value determination for SDR-denominated drawings - (b) For purposes of applying the limit on drawings as specified in paragraphs 1(a), 15(c) and 15(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 Amsterdam, such date shall be the last preceding business day of the Fund that is also a business day in Amsterdam. ### 11. 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. ### 12. Non-Subordination of Claims - The Fund agrees that it will not take any action that would have the effect of making De Nederlandsche Bank NV’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. ### 13. Settlement of Questions - Any question arising under this agreement shall be settled by mutual agreement between De Nederlandsche Bank NV and the Fund. ### 14. Cooperation with the Fund - De Nederlandsche Bank NV stands ready to cooperate with the Fund in the spirit of IMFC/G-20 commitments as needed and appropriate. ### 15. Transitional Arrangements - (a) 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 De Nederlandsche Bank NV’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 De Nederlandsche Bank NV’s 2016 Borrowing Agreement or this agreement are outstanding when the increase in the Netherlands’ NAB credit arrangement becomes effective, De Nederlandsche Bank NV shall be deemed to request, on behalf of the Netherlands, 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 Netherlands’ 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 the Netherlands’ NAB credit arrangement and this agreement enter into effect at the same time, the repayment of De Nederlandsche Bank NV’s outstanding claims under De Nederlandsche Bank NV’s 2016 Borrowing Agreement shall be funded first with calls under the Netherlands’ NAB credit arrangement before drawings are made under this agreement pursuant to paragraph 15(a) above. - (c) If following the repayment of outstanding claims under De Nederlandsche Bank NV’s 2016 Borrowing Agreement and this agreement as provided in paragraph 15(b) above, De Nederlandsche Bank NV’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 De Nederlandsche Bank NV’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 De Nederlandsche Bank NV’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 De Nederlandsche Bank NV and the Fund, at the time of such drawing, to: - (i) exceed the Loan Amount prior to the effectiveness of the increase in the Netherlands’ NAB credit arrangement, or - (ii) exceed the Rolled Back Loan Amount upon and after the effectiveness of the increase in the Netherlands’ 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 the Netherlands’ NAB credit arrangement, and De Nederlandsche Bank NV hereby requests, on behalf of the Netherlands, 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. ### 16. Final Provisions - (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 the Netherlands 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 De Nederlandsche Bank NV, or on January 1, 2021, whichever is later. *Source: pr214-signed-netherlands-2020-borrowing-agreements - 10. Effective Exchange Rate. (PDF).* --- _Source: https://www.imf.org/-/media/files/news/press-release/2021/pr214/pr214-signed-netherlands-2020-borrowing-agreements.pdf_