## Note Purchase Agreement between the South African Reserve Bank and the International Monetary Fund (pr214-signed-south-africa-2020-borrowing-agreements)

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### Purposes, principal amounts, and terminology
- Purpose: To enhance the resources available on a temporary basis to the Fund for crisis prevention and resolution through bilateral borrowing by the SARB purchasing from the Fund promissory notes (the “Notes”) issued under this Agreement and the General Terms and Conditions for International Monetary Fund Series G Notes (Annex 1).
- Principal amounts:
  - Notes in a total, SDR-denominated, principal amount up to the equivalent of US$2,000 million (“Principal”) shall be issued under this Agreement.
  - Upon effectiveness of the increase in South Africa’s credit arrangement under the Fund’s New Arrangements to Borrow (the “NAB”) as part of the NAB Reform approved under Decision No. 16645-(20/5), adopted January 16, 2020, the Principal will be automatically reduced to an SDR-denominated amount up to the equivalent of US$862 million (the “Rolled Back Principal”).
- Terminology:
  - This Agreement and bilateral borrowing agreements entered or amended pursuant to the borrowing framework approved by the Fund in March 2020 are each a “2020 Borrowing Agreement” and collectively the “2020 Borrowing Agreements”.
  - Bilateral borrowing agreements entered pursuant to the borrowing framework approved in August 2016 are each a “2016 Borrowing Agreement” and collectively the “2016 Borrowing Agreements”.
  - “Bilateral Borrowing Agreements” refers collectively to the 2020 Borrowing Agreements and the 2016 Borrowing Agreements.

### Term, activation, deactivation, and permitted uses
- Term and extension:
  - The term of this Agreement shall end 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 consent of the SARB.
- Activation conditions (2020 Borrowing Agreements may be activated only after):
  - The Managing Director has notified the Executive Board that the Forward Commitment Capacity of the Fund (as defined in Decision No. 14906-(11/38), adopted April 20, 2011), taking into account all available uncommitted resources under the NAB (the “modified FCC”), is below SDR 100 billion (the “activation threshold”); and
  - The Managing Director shall not provide such notification unless:
    - (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 of the 2020 Borrowing Agreements 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 on such activation.
- Voting, eligibility, and exceptional approach:
  - Managing Director proposes activation in writing and requests creditors’ vote; a creditor is ineligible to vote if its 2020 Borrowing Agreement is not effective or the member is not included in the Fund’s Financial Transactions Plan for transfers of its currency.
  - The Managing Director may approach creditors before the modified FCC falls below the activation threshold if extraordinary circumstances warrant.
- Deactivation rules:
  - Automatic deactivation whenever the NAB is no longer activated, unless there are no available uncommitted resources under the NAB.
  - Deactivation if the Managing Director notifies the Executive Board that the modified FCC (excluding Bilateral Borrowing Agreements amounts) has risen above the activation threshold and either (i) the Executive Board determines activation is no longer necessary, or (ii) six months elapse without the modified FCC falling below the activation threshold.
  - If deactivated under the paragraph above and the modified FCC later falls below the activation threshold, the activation procedures apply anew.
- Permitted uses while activated:
  - The Fund may (i) use resources under this Agreement to fund any outright purchases made from the General Resources Account (“GRA”) during the term, and (ii) approve commitments of GRA resources during the term whose purchases could be funded by issuing Notes for purchase under this Agreement at any time during the period of such commitments, including after expiration of the term or during deactivation; commitments covered under clause (ii) shall include any commitment whose approval caused the activation threshold to be reached.
- Early repayment funding:
  - 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 7 of the General Terms and Conditions for Series G Notes.
  - Notes for purchase may be issued under this Agreement to fund such early repayment for as long as claims under the 2020 Borrowing Agreements remain outstanding, including after the Agreement’s term or during periods of deactivation.
- Goal for issuance:
  - Notes shall be issued with the goal of achieving over time broadly balanced positions among creditors under all Bilateral Borrowing Agreements relative to their commitments under these agreements.

### Estimates, notices, denomination, and pricing
- Estimates and inclusion conditions:
  - Prior to each plan period for use of bilateral borrowed resources, the Fund shall provide SARB its best estimates of amounts of Notes expected to be issued for purchase during the forthcoming period, and revised estimates as warranted.
  - SARB shall not be included in the periodic plan, and no Notes shall be issued for purchase under this Agreement, if South Africa 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 Notes shall be issued if SARB was included in the periodic plan but, at time of issuance, South Africa’s currency is not being used in transfers under the Financial Transactions Plan because of South Africa’s balance of payments and reserve position.
  - If South Africa was not included at activation vote time and is subsequently included in the Financial Transactions Plan, Notes may be issued to fund purchases made and commitments approved during the activation period unless SARB notifies the Fund that it does not wish such issuance.
- Notice requirements:
  - The Fund shall give SARB at least five business days’ (Pretoria) notice of its intention to issue Notes for purchase, and provide payment instructions at least two business days (Fund) prior to the value date by a rapid authenticated means (e.g., SWIFT).
  - In exceptional circumstances where five business days’ notice is not possible, notification shall be at least three business days (Pretoria) in advance and SARB will make best efforts to meet such a call.
- Denomination, multiples, and purchase price:
  - Denomination: Notes shall be denominated in the special drawing right (SDR).
  - Multiples: Notes shall be issued in multiples of SDR 10 million.
  - Purchase price: The purchase price for each Note shall be 100 percent of the principal amount thereof.

### Payments, exchange rates, SDR valuation, and US dollar fixation
- Payment mechanics:
  - Unless otherwise agreed, the purchase price of each Note shall be paid by SARB on the value date specified in the Fund’s notice by transfer of the SDR equivalent amount of South African Rand to the Fund's account with the designated depository of South Africa.
  - For Notes purchased under paragraph 2(e), SARB shall ensure non-freely usable balances can be exchanged for a freely usable currency; freely usable balances shall be exchanged in collaboration with the Fund and other members.
- Exchange rate determination:
  - Unless otherwise agreed, purchases of Notes and exchanges of currency shall be made at the SDR exchange rate established pursuant to Article XIX, Section 7(a) for the second business day of the Fund before the value date of the purchase or exchange.
  - If that exchange rate determination date is not a business day in Pretoria, use the last preceding business day of the Fund that is also a business day in Pretoria.
- Change in SDR valuation:
  - If the Fund changes the method of valuing the SDR, all purchases and exchanges of currency 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.
- US dollar value fixation for limits:
  - For applying issuance limits, the US dollar value of each SDR-denominated Note issued shall be determined and permanently fixed on the value date of issuance based on the US dollar/SDR exchange rate established pursuant to Article XIX, Section 7(a) for the second business day of the Fund before the value date of issuance.
  - If that determination date is not a business day in Pretoria, use the last preceding business day of the Fund that is also a business day in Pretoria.

### Transferability, form, custody, and registered notes
- SARB transfer restriction:
  - SARB may not transfer any of its rights or obligations under this Agreement except with the prior written consent of the Fund.
- Notes form and custody:
  - Notes will only be issued in book entry form.
  - The Fund will maintain a book entry account recording number, issue date, principal amount, series, and maturity date for each Permitted Holder.
  - On request, the Fund will issue a registered Series G Note substantially in the form set out in Annex 2, bearing as its issue date the value date of purchase and issued in the name of the relevant Permitted Holder.
  - Acceptance of custody by the Fund constitutes delivery.
- Transfer restrictions:
  - Notes may be transferred only to Eligible Holders and subject to the transfer restrictions and limitations in the General Terms and Conditions for Series G Notes.
  - Derivative transactions and transfers of participation interests are prohibited.

### Maturity, extensions, early payment, and interest
- Standard maturity:
  - Each Note shall have a maturity date that is three months from its issue date, except as otherwise provided.
- Extension mechanics:
  - The Fund may elect to extend maturity by additional three-month periods; extension is automatically deemed elected for all Notes unless, at least five business days (Fund) before a maturity date, the Fund notifies a Permitted Holder it does not elect to extend.
  - Limitations:
    - (i) maturity of any Note purchased to fund GRA purchases shall not be extended later than the tenth anniversary of the date of such Note; and
    - (ii) maturity date for Notes purchased to fund early repayment pursuant to 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 has been requested or the tenth anniversary, whichever is earlier.
  - Exceptional extension:
    - Following an Executive Board determination of exceptional circumstances due to a shortage of Fund resources, the Fund, with agreement of the Permitted Holder, may extend the maximum maturity for Notes purchased up to an additional five years.
- Early payment by the Fund:
  - The Fund may make early payment in part or in full prior to maturity after consultation with the Permitted Holder, provided at least five business days (Fund) notice is given by rapid authenticated means.
  - Upon payment of principal and accrued interest, the Fund will cancel the Note; partial early payment results in cancellation and issuance of a new Note for the remainder with the same maturity date.
- Rate of interest and payment schedule:
  - Each Note bears interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3; however, if the Fund pays an interest rate higher than the SDR interest rate on outstanding balances from any other comparable borrowing under Article VII, Section 1(i), the interest rate payable on each Note will be equivalent to that higher rate for as long as it remains in effect.
  - Interest accrues daily and is to be paid promptly after each July 31, October 31, January 31, and April 30.

### Early payment at request of certain Permitted Holders and media of payment
- Eligibility for early payment at face value:
  - Rights apply only to Permitted Holders that are either (i) Eligible Purchasers, or (ii) transferees meeting both conditions: (A) transferee is a member, or central bank or fiscal agency of a member, and (B) at time of transfer the balance of payments and reserve position was considered sufficiently strong that its currency was being used in transfers under the Financial Transactions Plan.
  - A qualifying Permitted Holder shall obtain early payment if it represents its balance of payments and reserve position justifies early payment and the Fund, giving the representation the overwhelming benefit of any doubt, determines a need for early payment.
- Media and modalities of payments:
  - Except as provided in paragraph 7, payments of principal shall be made to a Permitted Holder in:
    - (i) the currency borrowed whenever feasible, if the Permitted Holder is the original purchaser;
    - (ii) the currency of the Permitted Holder, if the Permitted Holder is a member of the Fund;
    - (iii) the currency of the Relevant Member, if the Permitted Holder is the central bank or fiscal agency of a member, or is a prescribed SDR holder that is an official institution of a member;
    - (iv) special drawing rights, if the Permitted Holder is covered by clauses (ii) or (iii) or is otherwise a prescribed SDR holder (subject to Article XIX, Section 4 limits unless member agrees);
    - (v) any freely usable currency determined by the Fund in the case of any Permitted Holder; or
    - (vi) other currencies included in the Fund’s periodic Financial Transactions Plan for transfers, with the agreement of the Permitted Holder.
  - Payments of interest will normally be made in SDRs for members, central banks, fiscal agencies, or prescribed SDR holders; the Fund and Permitted Holder may agree on interest payments in the currency of the Relevant Member. Payments of interest to other Permitted Holders will be in a freely usable currency as determined by the Fund.
  - All currency payments will be made by crediting an account specified by the Permitted Holder or by debiting the Fund’s account with the designated depository of that member; SDR payments will be made by crediting the SDR Department account of the Permitted Holder or Relevant Member.
- Effective exchange rate for payments:
  - Unless otherwise agreed, all currency payments will be made at the SDR exchange rates established pursuant to Article XIX, Section 7(a) for the second business day of the Fund before the value date of the payment.
  - If that date is not a business day in the Permitted Holder’s principal location, use the last preceding business day of the Fund that is also a business day in that location.
- Change in SDR valuation:
  - If the Fund changes the method of valuing the SDR, all payments of principal and interest on the Notes made two or more business days of the Fund after the effective date of the change will be made on the basis of the new method.

### Transitional arrangements, limits, and final provisions
- Repayment of 2016 Borrowing Agreement claims:
  - Regardless of activation, the Fund shall issue Notes for purchase under this Agreement to repay any outstanding claims under the SARB’s 2016 Borrowing Agreement, subject to paragraph 9(b).
  - Notes issued under this Agreement resulting from such repayment shall be considered claims under the 2016 Borrowing Agreements for purposes of funding early repayment in case of balance of payments need and for purposes of special calls under paragraph 23 of Fund Decision No. 16645-(20/5), adopted January 16, 2020.
  - Maximum maturity date of the claim from such repayment shall be the residual maximum maturity date of the claim repaid with Notes issued under this Agreement.
- NAB call coordination and excess claims:
  - If claims under the 2016 Borrowing Agreement or this Agreement are outstanding when the increase in South Africa’s NAB credit arrangement becomes effective, SARB shall be deemed to request calls under South Africa’s NAB credit arrangement up to the maximum available amount to fund repayment of such claims; if both enter into effect simultaneously, repayment of 2016 Borrowing Agreement claims shall be funded first with NAB calls before Notes are issued under this Agreement.
  - If following repayment SARB’s outstanding claims remain in excess of the Rolled Back Principal (as calculated pursuant to paragraph 5(d)), the Fund shall repay any outstanding claims in excess of the Rolled Back Principal; claims with shorter remaining maximum maturities shall be repaid before those with longer remaining maximum maturities.
- Cessation of 2016 issuance and aggregate issuance limits:
  - After entry into force of this Agreement, the Fund may no longer issue any Notes under the SARB’s 2016 Borrowing Agreement.
  - No Note shall be issued under this Agreement that would cause total principal outstanding under both this Agreement and the 2016 Borrowing Agreement between the SARB and the Fund to:
    - (i) exceed the Principal prior to the effectiveness of the increase in South Africa’s NAB credit arrangement, or
    - (ii) exceed the Rolled Back Principal upon and after the effectiveness of the increase in South Africa’s NAB credit arrangement, as calculated pursuant to paragraph 5(d).
  - Notes issued beyond the Rolled Back Principal under (ii) are authorized if, within the same day of issuance, any resulting claim that would exceed the Rolled Back Principal is repaid with a special call under South Africa’s NAB credit arrangement and SARB requests such calls.
- Execution and effective date:
  - This Agreement may be executed in duplicate counterparts, each deemed an original.
  - This Agreement shall become effective on the date last signed below, or on the date on which South Africa provides the concurrence required under Article VII, Section 1(i) of the Fund’s Articles of Agreement for Fund borrowing of South African Rand from the SARB, or on the date the Fund acknowledges receipt of a written communication from the SARB notifying completion of domestic requirements for entry into force of this agreement, or on January 1, 2021, whichever is later.
- Signatures noted in the text:
  - For the South African Reserve Bank: Fundi Tshazibana, Deputy Governor — Date (not filled in on signature page).
  - For the International Monetary Fund: Kristalina Georgieva, Managing Director — Date: 17/12/20 and 12/22/2020 (appears on signature pages as provided).

*International Monetary Fund — pr214-signed-south-africa-2020-borrowing-agreements.*

### Section 1

### Note Purchase Agreement between the South African Reserve Bank and the International Monetary Fund

### 1. Purposes and Amounts
- Purpose: To enhance the resources available on a temporary basis to the Fund for crisis prevention and resolution through bilateral borrowing by the SARB purchasing from the Fund promissory notes (the “Notes”) issued under this Agreement and the General Terms and Conditions for International Monetary Fund Series G Notes (Annex 1).
- Principal amounts:
  - Notes in a total, SDR-denominated, principal amount up to the equivalent of US$2,000 million (“Principal”) shall be issued under this Agreement.
  - Upon effectiveness of the increase in South Africa’s credit arrangement under the Fund’s New Arrangements to Borrow (the “NAB”) as part of the NAB Reform approved under Decision No. 16645-(20/5), adopted January 16, 2020, the Principal will be automatically reduced to an SDR-denominated amount up to the equivalent of US$862 million (the “Rolled Back Principal”).
- Terminology:
  - This Agreement and bilateral borrowing agreements entered or amended pursuant to the borrowing framework approved by the Fund in March 2020 are each a “2020 Borrowing Agreement” and collectively the “2020 Borrowing Agreements”.
  - Bilateral borrowing agreements entered pursuant to the borrowing framework approved in August 2016 are each a “2016 Borrowing Agreement” and collectively the “2016 Borrowing Agreements”.
  - “Bilateral Borrowing Agreements” refers collectively to the 2020 Borrowing Agreements and the 2016 Borrowing Agreements.

### 2. Term of the Agreement and Use
- Term:
  - The term of this Agreement shall end on December 31, 2023.
  - The Fund may extend the term for one further year through December 31, 2024 by Executive Board decision, taking into account the Fund’s overall liquidity situation and actual and prospective borrowing requirements, and with the consent of the SARB.
- Activation conditions (2020 Borrowing Agreements may be activated only after):
  - The Managing Director has notified the Executive Board that the Forward Commitment Capacity of the Fund (as defined in Decision No. 14906-(11/38), adopted April 20, 2011), taking into account all available uncommitted resources under the NAB (the “modified FCC”), is below SDR 100 billion (the “activation threshold”); and
  - The Managing Director shall not provide such notification unless:
    - (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 of the 2020 Borrowing Agreements 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 on such activation.
- Voting and creditor eligibility:
  - For purposes of conducting a poll of eligible creditors, the Managing Director shall propose activation in writing and request the creditors’ vote.
  - A creditor shall not be 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.
  - The Managing Director may approach creditors before the modified FCC is below the activation threshold if extraordinary circumstances warrant.
- Deactivation:
  - If activated, the 2020 Borrowing Agreements shall be automatically deactivated whenever the NAB is no longer activated, unless there are no available uncommitted resources under the NAB at that time.
  - 2020 Borrowing Agreements shall be deactivated if the Managing Director notifies the Executive Board that the modified FCC (excluding amounts available under the Bilateral Borrowing Agreements) has risen above the activation threshold and:
    - (i) the Executive Board determines activation is no longer necessary; or
    - (ii) six months have elapsed since the Managing Director’s notification and, within that period, the modified FCC (excluding Bilateral Borrowing Agreements amounts) has not fallen below the activation threshold.
  - If deactivated under this paragraph, and the modified FCC later falls below the activation threshold, paragraph 2(b) procedures apply.
- Permitted uses while activated:
  - The Fund may (i) use resources available under this Agreement to fund any outright purchases made from the General Resources Account (“GRA”) during the term of this Agreement, and (ii) approve, during the term of this Agreement, commitments of GRA resources under Fund arrangements whose purchases could be funded by issuing Notes for purchase under this Agreement at any time during the period of such commitments, including after expiration of the term of this Agreement and during any period in which this Agreement is no longer activated; provided the commitments covered under clause (ii) shall also include any commitment whose approval caused the activation threshold to be reached.
- Early repayment funding:
  - Following activation, resources under this Agreement may be used to fund early repayment of claims under other 2020 Borrowing Agreements if relevant creditors request early repayment under circumstances specified in paragraph 7 of the General Terms and Conditions for Series G Notes.
  - Notes for purchase may be issued under this Agreement to fund such early repayment for as long as claims under the 2020 Borrowing Agreements remain outstanding, including after the Agreement’s term or during periods of deactivation.
- Goal for issuance:
  - Notes shall be issued with the goal of achieving over time broadly balanced positions among creditors under all Bilateral Borrowing Agreements relative to their commitments under these agreements.

### 3. Estimates, Notices and Limits on Issuance of Notes
- Estimates and inclusion conditions:
  - Prior to each plan period for use of bilateral borrowed resources, the Fund shall provide SARB its best estimates of amounts of Notes expected to be issued for purchase during the forthcoming period, and revised estimates as warranted.
  - The SARB shall not be included in the periodic plan, and no Notes shall be issued for purchase under this Agreement, if South Africa 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 Notes shall be issued if SARB was included in the periodic plan but, at time of issuance, South Africa’s currency is not being used in transfers under the Financial Transactions Plan because of South Africa’s balance of payments and reserve position.
  - If South Africa was not included at activation vote time and is subsequently included in the Financial Transactions Plan, Notes may be issued to fund purchases made and commitments approved during the activation period unless SARB notifies the Fund that it does not wish such issuance.
- Notice requirements:
  - The Fund shall give SARB at least five business days’ (Pretoria) notice of its intention to issue Notes for purchase, and provide payment instructions at least two business days (Fund) prior to the value date by a rapid authenticated means (e.g., SWIFT).
  - In exceptional circumstances where five business days’ notice is not possible, notification shall be at least three business days (Pretoria) in advance and SARB will make best efforts to meet such a call.
- Restoration and maturity extensions:
  - Payment by the Fund of the principal amount of a Note shall restore pro tanto the amount of Notes that may be issued under this Agreement.
  - Extension of maturity of a Note, or part thereof, in accordance with paragraph 4(a) of the General Terms and Conditions for Series G Notes shall not reduce the amount of Notes that may be issued under this Agreement.

### 4. Denomination and Price
- Denomination: Notes shall be denominated in the special drawing right (SDR).
- Multiples: Notes shall be issued in multiples of SDR 10 million.
- Purchase price: The purchase price for each Note shall be 100 percent of the principal amount thereof.

### 5. Payments for Purchases, Exchanges of Currencies and SDR Valuation
- Payment mechanics:
  - Unless otherwise agreed, the purchase price of each Note shall be paid by SARB on the value date specified in the Fund’s notice under paragraph 3, by transfer of the SDR equivalent amount of South African Rand to the Fund's account with the designated depository of South Africa.
  - For Notes purchased in accordance with paragraph 2(e), SARB shall ensure balances used in the purchase that are not balances of a freely usable currency can be exchanged for a freely usable currency of its choice; balances that are freely usable currencies shall be exchanged in collaboration with the Fund and other members to enable exchange for another freely usable currency.
- Exchange rate determination:
  - Unless otherwise agreed, purchases of Notes and exchanges of currency pursuant to this Agreement shall be made at the exchange rate for the relevant currency 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 purchase or exchange.
  - If this exchange rate determination date is not a business day in Pretoria, the date shall be the last preceding business day of the Fund that is also a business day in Pretoria.
- Change in SDR valuation:
  - If the Fund changes the method of valuing the SDR, all purchases and exchanges of currency 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.
- US dollar value fixation for limits:
  - For purposes of applying the limit specified in paragraphs 1(a), 9(c) and 9(e) on Fund issuance of Notes for purchase under this Agreement, the US dollar value of each SDR-denominated Note issued by the Fund shall be determined and permanently fixed on the value date of the issuance based on the US dollar/SDR exchange rate 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 issuance.
  - If this exchange rate determination date is not a business day in Pretoria, such date shall be the last preceding business day of the Fund that is also a business day in Pretoria.

### 6. Transferability
- SARB may not transfer any of its rights or obligations under this Agreement except with the prior written consent of the Fund.
- Transfers of Notes may be effected pursuant to, and subject to, the transfer restrictions and other limitations on transfers set forth in the General Terms and Conditions for International Monetary Fund Series G Notes.

### 7. Settlement of Questions
- Any question arising under this Agreement shall be settled by mutual agreement between the SARB and the Fund.

### 8. Cooperation with the Fund
- The SARB stands ready to cooperate with the Fund in the spirit of IMFC/G-20 commitments as needed and appropriate.

### 9. Transitional Arrangements
- Repayment of 2016 Borrowing Agreement claims:
  - Regardless of activation, the Fund shall issue Notes for purchase under this Agreement to repay any outstanding claims under the SARB’s 2016 Borrowing Agreement, subject to paragraph 9(b).
  - The Fund may issue Notes to fund purchases under commitments approved 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.
  - Maximum maturity date of the claim from such repayment shall be the residual maximum maturity date of the claim repaid with Notes issued under this Agreement.
  - Any Notes issued under this Agreement resulting from such repayment shall be considered claims under the 2016 Borrowing Agreements for purposes of funding early repayment in case of balance of payments need and for purposes of special calls under paragraph 23 of Fund Decision No. 16645-(20/5), adopted January 16, 2020.
- NAB call coordination:
  - To the extent claims under the SARB’s 2016 Borrowing Agreement or this Agreement are outstanding when the increase in South Africa’s NAB credit arrangement becomes effective, SARB, on behalf of South Africa, shall be deemed to request the Managing Director make calls under South Africa’s NAB credit arrangement up to the maximum available amount, taking into account the Fund’s need for maintaining prudential balances, to fund repayment of such claims; provided that if the increase in South Africa’s NAB credit arrangement and this Agreement enter into effect at the same time, repayment of SARB’s outstanding claims under the 2016 Borrowing Agreement shall be funded first with calls under South Africa’s NAB credit arrangement before Notes are issued for purchase under this Agreement pursuant to paragraph 9(a).
- Excess claims over Rolled Back Principal:
  - If following repayment as provided, SARB’s outstanding claims under these agreements remain in excess of the Rolled Back Principal (as calculated pursuant to paragraph 5(d)), the Fund shall repay any outstanding claims in excess of the Rolled Back Principal; claims with shorter remaining maximum maturities shall be repaid before those with longer remaining maximum maturities.
- Cessation of 2016 issuance:
  - After the entry into force of this Agreement, the Fund may no longer issue any Notes under the SARB’s 2016 Borrowing Agreement.
- Aggregate issuance limits:
  - No Note shall be issued under this Agreement that would cause the total principal amount of Notes outstanding under both this Agreement and the 2016 Borrowing Agreement between the SARB and the Fund to:
    - (i) exceed the Principal prior to the effectiveness of the increase in South Africa’s NAB credit arrangement, or
    - (ii) exceed the Rolled Back Principal upon and after the effectiveness of the increase in South Africa’s NAB credit arrangement, as calculated pursuant to paragraph 5(d).
  - Notes issued in an amount beyond the Rolled Back Principal under (ii) are authorized if, within the same day of issuance, any resulting claim that would exceed the Rolled Back Principal is repaid with a special call under South Africa’s NAB credit arrangement, and the SARB requests, on behalf of South Africa, that the Managing Director make such calls in accordance with paragraph 23 of Fund Decision No. 11428-(97/6), adopted January 27, 1997 on the NAB, as amended.

### 10. Final Provisions
- Execution:
  - This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original and both of which together shall constitute one instrument.
- Effective date:
  - This Agreement shall become effective on the date last signed below, or on the date on which South Africa provides the concurrence required under Article VII, Section 1(i) of the Fund’s Articles of Agreement for Fund borrowing of South African Rand from the SARB, or on the date the Fund acknowledges receipt of a written communication from the SARB notifying completion of domestic requirements for entry into force of this agreement, or on January 1, 2021, whichever is later.

### Signatures and Dates (as provided in the text)
- For the South African Reserve Bank:
  - Fundi Tshazibana, Deputy Governor — Date (not filled in on signature page).
- For the International Monetary Fund:
  - Kristalina Georgieva, Managing Director — Date: 17/12/20 and 12/22/2020 (appears on signature pages as provided).

*Source: Note Purchase Agreement between the South African Reserve Bank and the International Monetary Fund (Section 1).*

### Section 2

### pr214-signed-south-africa-2020-borrowing-agreements - Section 2

### Definitions
- “Applicable Note Purchase Agreement”: the Note Purchase Agreement between the Fund and the original Eligible Purchaser to whom the Fund (i) had issued the Note, or (ii) had issued any Note in cancellation of which the Note (or one or more Notes previously cancelled in exchange for the Note) had been issued.  
- “Borrowing Guidelines”: the Guidelines for Borrowing by the Fund.  
- “Eligible Purchaser”: (i) a member of the Fund, and (ii) the central bank of a member of the Fund.  
- “Eligible Holder”: (i) an Eligible Purchaser, (ii) a fiscal agency designated by a member of the Fund for purposes of Article V, Section 1 of the Fund’s Articles of Agreement (the “fiscal agency of a member”), and (iii) an official entity that has been prescribed as a holder of special drawing rights (SDRs) pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement (a “prescribed SDR holder”).  
- “Notes”: the promissory notes (International Monetary Fund Series G Notes) subject to these General Terms and Conditions.  
- “Permitted Holder”: (i) an Eligible Holder, and (ii) any other official entity in respect of whom the Fund has consented in writing to a transfer of Notes pursuant to subparagraph 6(b).  
- “Relevant Member”: where a Permitted Holder is the central bank or fiscal agency or other official institution of a member of the Fund, that member of the Fund.

### Eligible Purchasers and Permitted Holders
- The Fund will issue Notes solely to Eligible Purchasers.  
- Each Eligible Purchaser will enter into a Note Purchase Agreement with the Fund governing terms of purchases.  
- Permitted Holders shall be the only authorized holders of the Notes.

### Form, Delivery and Custody of Notes
- Notes will only be issued in book entry form.  
- The Fund will maintain a book entry account in its records in the name of each Permitted Holder recording number, issue date, principal amount, series, and maturity date.  
- As of the value date of each purchase or transfer, the Fund will enter the details in its records; such entry constitutes delivery of the Note.  
- On request, the Fund will issue a registered Series G Note substantially in the form set out in Annex 2, bearing as its issue date the value date of purchase and issued in the name of the relevant Permitted Holder.  
- Unless otherwise agreed, the Fund will keep registered Notes in custody for the Permitted Holder, and acceptance of custody by the Fund constitutes delivery.

### Maturity
- Each Note shall have a maturity date that is three months from its issue date, except as otherwise provided.  
- The Fund may elect to extend the maturity date of any Note or portion thereof by additional periods of three months after the initial maturity date; such extension is automatically deemed elected for all Notes unless, at least five business days (Fund) before a maturity date, the Fund notifies a Permitted Holder by a rapid authenticated means (e.g., SWIFT) that it does not elect to extend.  
- Limitations and special rules on extensions:  
  - (i) maturity of any Note purchased to fund GRA purchases shall not be extended to a date later than the tenth anniversary of the date of such Note; and  
  - (ii) maturity date for any Notes purchased to fund early repayment of other creditors’ claims in accordance with paragraph 2(e) of the Applicable Note Purchase Agreement 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 Notes being issued to fund early repayment, whichever is earlier.  
- Following an Executive Board determination that exceptional circumstances exist as a result of a shortage of Fund resources in relation to Fund obligations falling due, the Fund, with agreement of the Permitted Holder, may extend the maximum maturity for Notes purchased up to an additional five years.  
- The Fund shall pay principal on the applicable maturity date; if that date is not a business day in the place of payment, payment will be the next business day and interest will accrue up to the payment date.  
- The Fund may make early payment in part or in full prior to maturity after consultation with the relevant Permitted Holder, provided the Fund notifies the Permitted Holder at least five business days (Fund) before such payment by a rapid authenticated means (e.g., SWIFT).  
- Upon payment of principal and all accrued interest the Fund will cancel the Note; partial early payment results in cancellation and issuance of a new Note for the remainder with the same maturity date.  
- If a Note’s maturity is extended with respect to less than the principal amount, the Fund will cancel the Note and issue a new Note for the remainder with the extended maturity date.  
- Any Note to be cancelled that is not already in the Fund’s custody shall be surrendered by the Permitted Holder for cancellation.

### Rate of Interest
- Each Note bears interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement; however, if the 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 that higher rate remains in effect, the interest rate payable on each Note will be equivalent to the interest rate paid by the Fund on such other comparable borrowing.  
- Interest is calculated on the principal amount of the Note (including any Note issued in substitution of a cancelled Note).  
- Interest accrues daily and is to be paid promptly by the Fund after each July 31, October 31, January 31, and April 30.

### Transferability of Notes
- A Permitted Holder may transfer all or part of any Note at any time to any Eligible Holder. The Fund will use its best efforts to arrange such transfers if requested.  
- Transfers to an official entity other than an Eligible Holder require prior written consent of the Fund and may be subject to additional terms.  
- No Permitted Holder may transfer any Note, directly or indirectly, to any entity that is not (i) an Eligible Holder, or (ii) an official entity in respect of which the Fund has consented in writing.  
- Derivative transactions in respect of any Note, and transfers of participation interests in any Note, are prohibited.  
- The transferee of a Note transferred pursuant to these provisions shall assume in full the obligations of a Permitted Holder pursuant to paragraph 4(a) regarding extensions of maturity and regarding extension of maximum maturity in exceptional circumstances.  
- Any Note transferred shall be held by the transferee on the same terms and conditions as by the transferor, except as provided in paragraph 7 regarding right to early payment at the request of a Permitted Holder.  
- The price of a Note transferred will be as agreed between transferor and transferee.  
- Transfers under subparagraph (a) will be effected by a duly authenticated notice of transfer from transferor to the Fund stating transferee name, Note being transferred, transferee’s eligibility, and value date.  
- For all transfers, the Fund will cancel the transferred Note in whole or in part and, if registered, the transferor must surrender any such registered Note not already in the Fund’s custody. The Fund will issue a new Note in the name of the transferee for the principal amount transferred and, where appropriate, a new Note in the name of the transferor for any retained part. The issue date of each new Note will be the issue date of the cancelled Note, and new Notes will have the same maturity date (including any extensions). The form and delivery of each new Note as specified in paragraph 3.  
- If a Note is transferred during a quarterly period as described in paragraph 5(b), the Fund will pay interest to the transferee on the principal amount of the Note for the whole of that period.

### Early Payment by the Fund at Request of Certain Permitted Holders
- Rights apply only to Permitted Holders that are either (i) Eligible Purchasers in respect of such Notes, or (ii) transferees pursuant to paragraphs 6(a) or 6(b) meeting both conditions: (A) transferee is a member of the Fund, or the central bank or fiscal agency of a member, and (B) at time of transfer the balance of payments and reserve position of the member or Relevant Member was considered sufficiently strong in the opinion of the Fund that its currency was being used in transfers under the Financial Transactions Plan.  
- A Permitted Holder described above shall obtain early payment at face value of all or a portion of the principal of such Notes if: (i) the Permitted Holder represents that its balance of payments and reserve position (or that of the Relevant Member) justifies early payment; and (ii) the Fund, giving this representation the overwhelming benefit of any doubt, determines that there is a need for early payment as requested in light of the balance of payments and reserve position of the Permitted Holder or the Relevant Member.  
- After consultation with the Permitted Holder, the Fund may make such payments in SDRs or a freely usable currency as determined by the Fund or, with the Permitted Holder’s agreement, in currencies of other members included in the Fund’s periodic Financial Transactions Plan for transfers.

### Media and Modalities of Payments on the Notes
- Except as provided in paragraph 7, payments of principal shall be made to a Permitted Holder in:  
  - (i) the currency borrowed whenever feasible, if the Permitted Holder is the original purchaser;  
  - (ii) the currency of the Permitted Holder, if the Permitted Holder is a member of the Fund;  
  - (iii) the currency of the Relevant Member, if the Permitted Holder is the central bank or fiscal agency of a member, or is a prescribed SDR holder that is an official institution of a member;  
  - (iv) special drawing rights, if the Permitted Holder is covered by clauses (ii) or (iii) or is otherwise a prescribed SDR holder (provided that it does not increase the member’s holdings of SDRs above the limit under Article XIX, Section 4 unless the member agrees to accept SDRs above that limit in such payment, in the case of a Permitted Holder covered by clause (ii));  
  - (v) any freely usable currency determined by the Fund in the case of any Permitted Holder; or  
  - (vi) other currencies included in the Fund’s periodic Financial Transactions Plan for transfers, with the agreement of the Permitted Holder.  
- Payments of interest will normally be made in SDRs if the Permitted Holder is a member of the Fund or a central bank or fiscal agency of such a member, or a prescribed SDR holder; provided that for a member or central bank or fiscal agency the Fund and the Permitted Holder may agree that interest payments will be made in the currency of the Relevant Member. Payments of interest to other Permitted Holders will be made in a freely usable currency as determined by the Fund.  
- All payments in currency will be made by crediting an account specified in advance by the Permitted Holder, or by debiting the Fund’s account with the designated depository of that member as determined by the Fund. Payments in SDRs will be made by crediting the SDR Department account of the Permitted Holder or Relevant Member.

### Effective Exchange Rate for Payments
- Unless otherwise agreed, all payments in currency of principal and interest will 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 Fund rules for the second business day of the Fund before the value date of the payment.  
- If that exchange rate determination date is not a business day in the Permitted Holder’s principal location, the date will be the last preceding business day of the Fund that is also a business day in the Permitted Holder’s principal location.

### Changes in Method of Valuation of SDR
- If the Fund changes the method of valuing the SDR, all payments of principal and interest on the Notes made two or more business days of the Fund after the effective date of the change will be made on the basis of the new method of valuation.

### Non-Subordination of Claims
- The Fund will not take any action that would have the effect of making a Permitted Holder’s claim on the Fund resulting from any Note 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 any Note shall be settled by mutual agreement between the relevant Permitted Holder and the Fund.

### Annex 2 — Form of Registered Series G Note (high-level points)
- The registered note form identifies Issue Date and Maturity Date and states promise to pay an amount equivalent to a specified number of Special Drawing Rights (SDR) on the maturity date and to pay interest as set forth.  
- The Note is one of a series of “Series G Notes” issued in accordance with the General Terms and Conditions and the Applicable Note Purchase Agreement; holders are deemed to have agreed to those terms.  
- The Note contains the restriction: in no event shall any holder sell, assign, dispose of or otherwise transfer this Note, directly or indirectly, to any entity that is not: (I) a member of the Fund or the central bank of a member, (II) a fiscal agency designated by a member for purposes of Article V, Section 1, (III) an official entity prescribed as a holder of SDRs pursuant to Article XVII, Section 3, or (IV) any other official entity in respect of which the Fund has consented in writing to a transfer pursuant to paragraph 6(b).  
- Derivative transactions in respect of the Note, and transfers of participation interests in the Note, are prohibited.  
- Interest accrues daily at the SDR interest rate established pursuant to Article XX, Section 3; if the Fund pays a higher rate on comparable borrowing pursuant to Article VII, Section 1(i), the interest on this Note shall be equivalent to that higher rate while it remains in effect.  
- Interest shall be paid promptly after each July 31, October 31, January 31, and April 30.

*International Monetary Fund — pr214-signed-south-africa-2020-borrowing-agreements (Section 2).*

### Section 3

### pr214-signed-south-africa-2020-borrowing-agreements - Section 3

### Interest payment currency and eligible registered holders
- Payments of interest shall normally be made in SDRs if the registered holder is:
  - a member of the Fund, or
  - a central bank or fiscal agency of a member of the Fund, or
  - a prescribed holder of SDRs.
- The Fund and such registered holder may agree that interest payments will be made:
  - in the currency of the Relevant Member, or
  - in a freely usable currency as determined by the Fund in the case of other registered holders.

### Mechanism for SDR payments
- Payments in SDRs shall be made by crediting the SDR Department account of:
  - the registered holder, or
  - the member for which the registered holder serves as central bank or fiscal agency (in the case of registered holders that are the central bank or fiscal agency of a member of the Fund).

### Formalization
- Section closes with signatory block: [Signatures]

*Source: pr214-signed-south-africa-2020-borrowing-agreements - Section 3*

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