## ppea2023003 — Resilience and Sustainability Trust (RST) contribution agreements and key terms ## Source details **Canonical URL:** [ppea2023003 — Resilience and Sustainability Trust (RST) contribution agreements and key terms](https://www.imf.org/-/media/files/publications/pp/2023/english/ppea2023003.pdf) ## Other formats - [Markdown version](/-/media/files/publications/pp/2023/english/ppea2023003.pdf.md) - [Structured JSON version](/-/media/files/publications/pp/2023/english/ppea2023003.pdf.json) --- ### Overview - Managing Director solicited contributions from 35 potential contributors with strong external positions seeking a total amount of at least SDR 33 billion. - Pledges received to date: SDR 30.4 billion (from 17 members). - Pledges to all three RST accounts (LA, DA, RA) that count toward target: SDR 25.3 billion = 77 percent of SDR 33 billion target. - By RST operationalization on October 12, 2022, agreements finalized with six contributors. ### Status of pledges and finalized contributions - Total pledges received: SDR 30.4 billion (from 17 members). - Pledges counting toward target: SDR 25.3 billion = 77 percent of SDR 33 billion target. - Six finalized contribution agreements provide total contributions across RST accounts of about SDR 15.3 billion: - Loan Account (LA) total across agreements: approximately SDR 8,613 million. - Deposit Account (DA) total across agreements: approximately SDR 6,079 million. - Reserve Account (RA) total across agreements: approximately SDR 631 million. ### Finalized contribution agreements — contributors and totals - Australia: contribution agreement totaling SDR 927.2 million to all three RST accounts, effective October 11, 2022. - Canada: contribution agreement totaling SDR 1,387.6 million to all three RST accounts, effective September 27, 2022. - People’s Bank of China: contribution agreement totaling SDR 6,000 million to all three RST accounts, effective September 27, 2022. - Germany: agreement for contributions of the SDR equivalent of Euro 5,700 million to the DA and Euro 600 million to the RA (standalone contribution), effective October 12, 2022; DA and RA contributions expected to be received by end-February 2023. - Japan: contribution agreement totaling SDR 798.0 million to all three RST accounts, effective October 6, 2022; LA and DA in the form of a Note Purchase Agreement (NPA). - Spain: contributions to the LA and DA by the Bank of Spain and a contribution to the RA by the Ministry for the Economy and Digitalization, all effective September 8, 2022, totaling SDR 1,417.1 million. ### Key financial terms and uniform substantive features - Denomination: All transactions denominated in Special Drawing Rights (SDR). - Minimum thresholds (for contributions linked to LA commitments): Deposit Account at least 20 percent and Reserve Account at least 2 percent of a contributor’s commitment to the LA (not applicable to standalone DA/RA contributions). - Encashment rights: - Contributors can seek encashment of outstanding loan account and deposit contributions in case of a contributor’s balance of payments needs or due to developments in a contributor’s reserves (RA has no encashment right). - Remuneration: - Outstanding loan and deposit account claims remunerated at an interest rate that cannot exceed the SDRi; RA contributions are not remunerated. - Investment: - DA and RA resources invested under a uniform investment strategy in liquid, high-quality instruments. - Deviations from templates described as very minor and reflecting legal and operational requirements of contributors. - China waived its encashment right under paragraph 6 of the borrowing agreement to early repayment of any outstanding claims on the RST's Loan Account until the total amount of committed RST loan resources reaches SDR 11.8 billion (waiver date: November 7, 2022). ### Table of selected amounts by account (from finalized agreements) - Effectiveness dates (as reported): Australia 10/11/2022; Canada 9/27/2022; China 9/27/2022; Germany 10/12/2022; Japan 10/6/2022; Spain 9/8/2022. - Amounts (In SDR million) by account: - Australia: Loan Account 760.0; Deposit Account 152.0; Reserve Account 15.2. - Canada: Loan Account 1,137.4; Deposit Account 227.5; Reserve Account 22.8. - China: Loan Account 4,900.0; Deposit Account 1,000.0; Reserve Account 100.0. - Germany: Loan Account n/a; Deposit Account 4,336.1; Reserve Account 456.4. - Japan: Loan Account 654.1; Deposit Account 130.8; Reserve Account 13.1. - Spain: Loan Account 1,161.6; Deposit Account 232.3; Reserve Account 23.2. - Media for disbursement: SDR or freely usable currencies (varies by agreement and account as specified in agreements). - Remuneration summary: - Loan Account: SDRi (or lower if agreed). - Deposit Account: SDRi (or lower if agreed). - Reserve Account: Not remunerated. - Encashment right for LA and DA: Yes (subject to terms); RA: No. ### Annex I — Selected key terms (LA, DA, RA summary) - Loan Account (LA): - Denomination: All transactions denominated in SDR. - Drawdown period: November 30, 2030 (can be shorter on an exceptional basis). Drawing after November 30, 2030 permitted to cover encashment calls for drawings that finance RST lending prior to November 30, 2030. - Maturity: Maximum maturity for each drawing is 20 years from the date the claim was originated. - Principal repayments: 20 equal semi-annual instalments beginning 10.5 years from the date of drawing. - Interest payments: Calculated and accrued daily at the applicable SDR interest rate (SDRi), or lower if agreed; paid promptly after each financial quarter. - Encashment: Loan claims encashable upon a contributor’s representation of a balance of payments or reserves need; undrawn commitments become unavailable during representation; encashment funded by calls on other contributors’ LA commitments. - Transfer of claims: Transferable to other RST contributors, other IMF members, and prescribed holders of SDRs. - Deposit Account (DA): - Denomination: All transactions denominated in SDR. - Due date: Deposit made promptly on or after effectiveness of Contribution Agreement. - Maturity: November 30, 2050 (excluding stand-alone DA contributions); for stand-alone contributions maturity date is agreed, with 10 years preferable. - Principal repayments: Principal returned at maturity net of any attributed losses; remaining net investment amount attributed to this contributor transferred to their RA claim. - Interest payments: Calculated and accrued daily at SDRi (or lower if agreed) and paid quarterly promptly after April 30, July 31, October 31, and January 31. - Investment strategy: Invested in liquid, high-quality instruments under an Executive Board–approved strategy. - Encashment: Contributors can encash DA claims before maturity in case of BoP and reserve needs; encashments funded from liquidation proceeds of pooled DA assets; contributor commits to reconstitute deposit when BoP/reserve need is resolved. - Transfer of claims and early repayment: Transferable; Trustee may repay part or all of DA contributions prior to maturity as agreed. - Reserve Account (RA): - Denomination: All transactions denominated in SDR. - Due date: Reserve contribution made promptly on or after effectiveness of Contribution Agreement. - Maturity: No fixed maturity date; for stand-alone contributions a 10-year maturity may be preferable. - Principal repayments: On liquidation of the Trust, Trustee distributes contributors’ shares in RA resources; Trustee can decide on early distribution. - Interest payments: None. - Investment strategy: Invested in liquid, high-quality instruments under an Executive Board–approved strategy. - Encashment: No right to seek encashment. - Transfer of claims and early repayment: Transferable; Trustee may repay part of the RA following Trustee decision to distribute balances. ### Contributor-specific operational and contractual notes (selected examples) - Australia (examples in its Contribution Agreement): - LA Amount: SDR 760 million; DA Amount: SDR 152 million; RA Amount: SDR 15.2 million. - Notice period for Trustee drawing: at least five (Canberra and Sydney) business days; payment instructions at least two (Fund) business days prior to value date by SWIFT unless otherwise mutually decided. - Encashment: Contributor may seek early repayment if Australia’s balance of payments and reserve position justifies it; Trustee concurs after giving representation the overwhelming benefit of any doubt. - Modality: Payments of principal and interest in SDRs unless otherwise mutually decided. - Canada (selected provisions): - LA commitment up to equivalent of C$2,000,000,000 (SDR-denominated amount determined at specified exchange rate timing). - Deposit: Amount equivalent to C$400,000,000; Maturity November 30, 2050. - Reserve Contribution: Contribution equivalent to C$40,000,000; no remuneration. - Notice period for Trustee drawing: at least five (Ottawa) business days; payment instructions at least two (Fund) business days prior to value date by SWIFT unless otherwise agreed. - China (selected provisions): - LA Amount: Loan Account 4,900.0 (SDR million); DA Amount: 1,000.0 (SDR million); RA Amount: 100.0 (SDR million). - China waived its encashment right under paragraph 6 of the borrowing agreement to early repayment of any outstanding claims on the RST's Loan Account until the total amount of committed RST loan resources reaches SDR 11.8 billion (waiver date: November 7, 2022). - Germany (selected provisions): - Deposit: Original Amount of the Deposit: 5.7 billion euro. - Reserve Contribution: 600 million euro; Deposit to be made by February 28, 2023 in euros; maturity preferences described (10 years for stand-alone). - Example repayment timing: "As soon as practicable but not later than 60 days following the Maturity Date" in certain agreements. - Japan (selected provisions): - Contribution agreement totaling SDR 798.0 million; LA and DA in the form of a Note Purchase Agreement. - Reserve Account RA Amount: SDR 13.1 (Japan entry in table). - Signature dates recorded: For the GOVERNMENT OF JAPAN: October 4, 2022 — Shunichi Suzuki /s Date Minister of Finance; For the IMF as Trustee: October 6, 2022 — Kristalina Georgieva /s Date Managing Director. - Spain (selected provisions): - LA Amount: Euros 1,525,000,000 equivalent; Deposit Amount: Euro 305,000,000 equivalent to the Deposit Account; Reserve Contribution: Euro 30,500,005 equivalent. - Signatures recorded: For the Banco de España: September 5, 2022 — Pablo Hernandez de Cos /s Date Governor; For IMF as Trustee: September 8, 2022 — Kristalina Georgieva /s Date Managing Director. ### Notes on modalities, payments, transfers, exchange rules, and SDR basket changes - Media and modality of payments: - Unless otherwise agreed, payments of principal and interest and distributions are made in SDRs by crediting the Contributor’s holdings account in the Special Drawing Rights Department. - Payments in currencies made to mutually agreed accounts; if due date is not a business day of relevant systems, payment made on the following business day for the Fund and relevant systems/markets. - Exchange rate rule: - Unless otherwise mutually decided, all transfers, exchanges, payments of interest, or repayments in currencies will be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund pursuant to Article XIX, Section 7(a) for the second (Fund) business day before the value date. - SDR basket changes: - If the Fund changes the currency composition or weights of the SDR basket, transfers, exchanges, payments, and distributions made two or more (Fund) business days after the effective date of the change will be made on the basis of the new SDR basket. - Transferability: - Contributors may transfer all or part of claims or shares to eligible transferees (members, a central bank or fiscal agency designated by a member, or prescribed SDR holders); transferees acquire the rights of the Contributor subject to conditions on early repayment rights. ### Notes on Notes and account instruments (Annexes and Japan Deposit Note form) - Notes issued under Deposit Account Note Agreements: - Form: book entry; registered Notes available on request in form (Annex 2/Annex 4). - Interest: accrues at the SDR interest rate; calculated on an actual day basis; paid quarterly promptly after July 31, October 31, January 31, and April 30. - Notional Value: Principal adjusted for attributed investment earnings or losses, interest payments, and certain transfers. - Encashment rights for Permitted Holders limited to Contributors or transferees meeting BoP/reserve strength conditions; Encashed Amount may not exceed Notional Value. - Transfers: limited to Permitted Holders; derivative transactions and transfers of participation interests prohibited. - Maturity and repayment: standard maturity dates specified (e.g., November 30, 2050 for Deposit Account Notes); repayment is the lower of Principal Amount and Notional Value. - Trustee redemption and cancellation procedures, and provisions for early repayment upon Trustee receipt of early repayment of corresponding RSF disbursements, are specified with notice periods (typically at least five (5) Fund business days). ### Conclusion and operational outlook - The six finalized agreements deliver critical resources for the operationalization of the RST and represent an important step towards adequate funding. - Additional contributions are needed to ensure the RST is adequately resourced to meet demand from eligible members in the medium term. - Uniformity of key substantive terms is expected to streamline finalization of further contribution agreements and enhance operational efficiency. - Discussions with other contributors are ongoing; staff will keep the Executive Board updated and will periodically circulate additional finalized contribution agreements. *Source: INTRODUCTION (ppea2023003) — International Monetary Fund* ### INTRODUCTION ### INTRODUCTION ### Overview - Managing Director solicited contributions from 35 potential contributors with strong external positions seeking a total amount of at least SDR 33 billion. - To date, the Fund has received pledges amounting to SDR 30.4 billion from 17 members. - SDR 25.3 billion are pledges to all three RST accounts (the Loan Account (LA), Deposit Account (DA) and the Reserve Account (RA)) that count toward the SDR 33 billion target, corresponding to 77 percent of the targeted contributions. - By the date of RST operationalization on October 12, 2022, agreements had been finalized with six contributors. ### Status of Pledges and Contributions - Total pledges received: SDR 30.4 billion (from 17 members). - Pledges counting toward target (pledges to all three accounts): SDR 25.3 billion = 77 percent of SDR 33 billion target. - Six finalized contribution agreements provide total contributions across RST accounts of about SDR 15.3 billion. - Loan Account (LA) total across agreements: approximately SDR 8,613 million. - Deposit Account (DA) total across agreements: approximately SDR 6,079 million. - Reserve Account (RA) total across agreements: approximately SDR 631 million. ### Finalized Contribution Agreements (six agreements) - Australia: contribution agreement totaling SDR 927.2 million to all three RST accounts, effective October 11, 2022. - Canada: contribution agreement totaling SDR 1,387.6 million to all three RST accounts, effective September 27, 2022. - People’s Bank of China: contribution agreement totaling SDR 6,000 million to all three RST accounts, effective September 27, 2022. - Germany: agreement for contributions of the SDR equivalent of Euro 5,700 million to the DA and Euro 600 million to the RA (standalone contribution), effective October 12, 2022; DA and RA contributions expected to be received by end-February 2023. - Japan: contribution agreement totaling SDR 798.0 million to all three RST accounts, effective October 6, 2022; LA and DA in the form of a Note Purchase Agreement (NPA). - Spain: contributions to the LA and DA by the Bank of Spain and a contribution to the RA by the Ministry for the Economy and Digitalization, all effective September 8, 2022, totaling SDR 1,417.1 million. ### Key Financial Terms and Uniform Substantive Features - All contribution agreements are subject to uniform key substantive terms as provided for in the RST Instrument. - Denomination: All transactions denominated in Special Drawing Rights (SDR). - Minimum thresholds (for contributions linked to LA commitments): Deposit Account at least 20 percent and Reserve Account at least 2 percent of a contributor’s commitment to the LA (not applicable to standalone DA/RA contributions). - Encashment rights: contributors have the right to seek encashment of outstanding loan account and deposit contributions in case of a contributor’s balance of payments needs or due to developments in a contributor’s reserves (except RA has no encashment right). - Remuneration: outstanding loan and deposit account claims remunerated at an interest rate that cannot exceed the SDRi; RA contributions are not remunerated. - Investment: DA and RA resources invested under a uniform investment strategy in liquid, high-quality instruments. ### Deviations from Templates and Operational Notes - Deviations from the standardized template are described as very minor and reflect legal and operational requirements of contributors with no implications for uniformity of key substantive terms. - Examples of minor deviations: - Contributions may be signed by one counterparty or broken up into separate agreements signed by different institutions. - Some agreements calculate RA and DA contributions in reference to an underlying commitment expressed in currency and disburse in that currency (Canada, Germany, Japan, Spain), whereas others express commitments and disburse in SDRs (Australia, China). - Notification period for intention to draw on loan commitments varies between five and seven days across agreements. - Agreements with Australia and Canada include language regarding treatment under domestic law. - China waived its encashment right under paragraph 6 of the borrowing agreement to early repayment of any outstanding claims on the RST's Loan Account until the total amount of committed RST loan resources reaches SDR 11.8 billion (waiver date: November 7, 2022). ### Table of Key Financial Terms by Contributing Country (selected figures from finalized agreements) - Effectiveness dates (as reported): Australia 10/11/2022; Canada 9/27/2022; China 9/27/2022; Germany 10/12/2022; Japan 10/6/2022; Spain 9/8/2022. - Amounts (In SDR million) by account: - Australia: Loan Account 760.0; Deposit Account 152.0; Reserve Account 15.2. - Canada: Loan Account 1,137.4; Deposit Account 227.5; Reserve Account 22.8. - China: Loan Account 4,900.0; Deposit Account 1,000.0; Reserve Account 100.0. - Germany: Loan Account n/a; Deposit Account 4,336.1; Reserve Account 456.4. - Japan: Loan Account 654.1; Deposit Account 130.8; Reserve Account 13.1. - Spain: Loan Account 1,161.6; Deposit Account 232.3; Reserve Account 23.2. - Media for disbursement: SDR or freely usable currencies (varies by agreement and account as specified in agreements). - Remuneration: - Loan Account: SDRi (or lower if agreed). - Deposit Account: SDRi (or lower if agreed). - Reserve Account: Not remunerated. - Encashment right for LA and DA: Yes (subject to terms); RA: No. ### Annex I — Selected Key Terms (summary) - Loan Account (LA) - Denomination: All transactions denominated in SDR. - Drawdown period for loan account: November 30, 2030 (can be shorter on an exceptional basis). Drawing after November 30, 2030 permitted to cover encashment calls for drawings that finance RST lending prior to November 30, 2030. - Maturity: Maximum maturity for each drawing is 20 years from the date the claim was originated. - Principal repayments: 20 equal semi-annual instalments beginning 10.5 years from the date of drawing. - Interest payments: Calculated and accrued daily at the applicable SDR interest rate (SDRi), or lower if agreed; paid promptly after each financial quarter. - Encashment: Loan claims encashable upon a contributor’s representation of a balance of payments or reserves need; undrawn commitments become unavailable during representation; encashment funded by calls on other contributors’ LA commitments. - Transfer of claims: Transferable to other RST contributors, other IMF members, and prescribed holders of SDRs. - Deposit Account (DA) - Denomination: All transactions denominated in SDR. - Due date: Deposit made promptly on or after effectiveness of Contribution Agreement. - Maturity: November 30, 2050 (excluding stand-alone DA contributions); for stand-alone contributions maturity date is agreed, with 10 years preferable. - Principal repayments: Principal returned at maturity net of any attributed losses; remaining net investment amount attributed to this contributor transferred to their RA claim. - Interest payments: Calculated and accrued daily at SDRi (or lower if agreed) and paid quarterly promptly after April 30, July 31, October 31, and January 31. - Investment strategy: Invested in liquid, high-quality instruments under an Executive Board–approved strategy. - Encashment: Contributors can encash DA claims before maturity in case of BoP and reserve needs; encashments funded from liquidation proceeds of pooled DA assets; contributor commits to reconstitute deposit when BoP/reserve need is resolved. - Transfer of claims and early repayment: Transferable; Trustee may repay part or all of DA contributions prior to maturity as agreed. - Reserve Account (RA) - Denomination: All transactions denominated in SDR. - Due date: Reserve contribution made promptly on or after effectiveness of Contribution Agreement. - Maturity: No fixed maturity date; for stand-alone contributions a 10-year maturity may be preferable. - Principal repayments: On liquidation of the Trust, Trustee distributes contributors’ shares in RA resources; Trustee can decide on early distribution. - Interest payments: None. - Investment strategy: Invested in liquid, high-quality instruments under an Executive Board–approved strategy. - Encashment: No right to seek encashment. - Transfer of claims and early repayment: Transferable; Trustee may repay part of the RA following Trustee decision to distribute balances. ### Conclusion - The six finalized agreements deliver critical resources for the operationalization of the RST and represent an important step towards adequate funding. - Additional contributions are needed to ensure the RST is adequately resourced to meet demand from eligible members in the medium term. - Uniformity of key substantive terms is expected to streamline finalization of further contribution agreements and enhance operational efficiency. - Discussions with other contributors are ongoing; staff will keep the Executive Board updated and will periodically circulate additional finalized contribution agreements. *Source: INTRODUCTION (ppea2023003) — International Monetary Fund* ### 1. Amount. The Contributor decides to lend an amount up to the equivalent of SDR 760 ### ppea2023003 - 1. Amount. The Contributor decides to lend an amount up to the equivalent of SDR 760 ### Borrowing Agreement — Amount and Drawings - The Contributor decides to lend an amount up to the equivalent of SDR 760 million to the Loan Account of the Trust. - Drawdown period for Trustee drawings: from the effective date of this Borrowing Agreement through November 30, 2030 (the “drawdown period”) to finance loan disbursements under the RSF. - Trustee may also make drawings to finance early repayment of outstanding Trust borrowing under other borrowing agreements with the Loan Account pursuant to Section IV, Paragraph 3(b) of the RST Instrument for as long as claims under such borrowing agreements remain outstanding. - Drawings will be suspended: - following the Contributor’s request for early repayment under paragraph 6 of this Borrowing Agreement; - when Australia is no longer included for transfers in the Fund’s Financial Transactions Plan, in accordance with Section IV, paragraph 4 of the RST Instrument; - if Australia does not provide its consent to a proposed amendment to the RST Instrument pursuant to Section X, paragraph 2(a) of the RST Instrument, then further drawings to finance any new commitment of loans under the RSF made after the effectiveness of the proposed amendment will be suspended. - If any installment of principal or interest is not paid to the Contributor within a period of ten Fund business days after its due date, the Trustee will not make further drawings pending consultations; drawings may resume once all arrears are discharged. - Notice and payment instructions: - Trustee will give the Contributor at least five (Canberra and Sydney) business days’ notice of its intention to draw, unless otherwise mutually decided. - Trustee will provide payment instructions at least two (Fund) business days prior to the value date of the transaction by SWIFT, unless otherwise mutually decided. ### Borrowing Agreement — Denomination, Claim Certificate, Interest, Repayment - Denomination and payment: - Each drawing will be denominated in SDRs. - Amount will be paid by the Contributor on the value date specified in the Trustee’s notice by transfer of SDRs to an account specified by the Trustee. - Claim certificate: Upon request, the Trustee will issue a non-negotiable certificate evidencing its claim on the Trust resulting from a drawing outstanding under this Borrowing Agreement. - Interest: - Each drawing will bear interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement. - Interest is calculated on an actual day basis and will be paid on all outstanding drawings on a quarterly basis promptly after January 31, April 30, July 31, and October 31 of each year. - Maturity and repayment: - Each drawing will be repaid in accordance with the repayment schedule for the loan disbursement under the RSF for which it was drawn. - At the time of each drawing, the Trustee will provide information to the Contributor on the specific repayment schedule for the amount drawn. ### Borrowing Agreement — Encashment, Early Repayment, Modality, Transfers, Exchange Rates, SDR Basket - Encashment (Contributor-initiated early repayment): - Contributor may seek early repayment of all or part of the principal amount of its outstanding claims on the Loan Account pursuant to Section IV, paragraph 3(b) of the RST Instrument if Contributor represents that Australia’s balance of payments and reserve position justifies the early repayment and the Trustee concurs after giving the representation the overwhelming benefit of any doubt. - Early repayment is subject to the availability of resources under borrowing agreements to the Loan Account of the Trust. - Trustee early repayment: Trustee may repay any drawing or part thereof in advance upon receipt of early repayment of the corresponding loan disbursement under the RSF, provided the Trustee gives notice to the Contributor at least five (5) (Fund) business days prior to such advance repayment. - Modality of principal repayment and interest payments: - Unless otherwise mutually decided, payments of principal and interest by the Trustee will be made in SDRs. - Payments in SDRs will be made by crediting Australia’s holdings account in the Special Drawing Rights Department; if due date is not a business day of the Fund, payment will be made on the following business day of the Fund. - Payments in currencies will be made to an account mutually decided; if due date is not a business day of the Fund or the Target system or the domestic markets of the non-euro currencies included in the SDR basket, payment will be made on the following business day for the Fund, the Target system and those domestic markets. - Transfer of claims: - Contributor may transfer all or part of any claim at any time to any member of the Fund, to the central bank or other fiscal agency designated by such a member for purposes of Article V, Section 1 of the Fund’s Articles of Agreement, or to any official entity prescribed as a holder of SDRs pursuant to Article XVII, Section 3. - Transferee acquires all benefits of the Contributor under this Borrowing Agreement with respect to repayment of principal and interest on the transferred claim, except the transferee may request early repayment under paragraph 6 only if it is a member or the central bank or fiscal agency of a member and, at the time of transfer, the member’s balance of payments and reserve position was considered sufficiently strong in the opinion of the Fund for its currency to be usable in transfers under the Fund’s Financial Transactions Plan. - Exchange rates: Unless otherwise mutually decided, all transfers, exchanges, and payments of principal and interest in currencies will be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund pursuant to Article XIX, Section 7(a) of the Fund’s Articles of Agreement for the second (Fund) business day before the value date. - SDR basket: If the Fund changes currency composition or weights of the SDR basket, all transfers, exchanges, and payments of principal and interest made two or more (Fund) business days after the effective date of the change will be made on the basis of the new SDR basket. ### Deposit Agreement — Amount, Denomination, Maturity, Investment, Notional Value - Amount of the Deposit: Contributor will make a deposit equivalent to SDR 152 million with the Deposit Account of the Trust (the “Original Amount of the Deposit”). - Denomination and media: - Deposit will be denominated in SDRs. - Deposit will be made in either SDRs or a freely usable currency, as determined by the Contributor. - Deposit will be made promptly on or after the effectiveness of the Contribution Agreement. - Maturity: The Deposit will mature on November 30, 2050 (the “Maturity Date”). - Investment strategy and risk disclosure: - Resources from the Deposit will be invested by the Trustee in accordance with guidelines adopted by the Trustee pursuant to Section VI, paragraph 4(a) of the RST Instrument. - Assets of the Deposit Account are exposed to market and credit risk which could result in potential losses to the Original Amount of the Deposit. - Notional Value: - For purposes of paragraphs 6, 7, 8, and 9 of the Deposit Agreement, the Trustee will calculate the Notional Value based on the Original Amount of the Deposit and subsequently any attributed investment earnings or losses, interest payments made to the Contributor pursuant to paragraph 6, if any, and transfers pursuant to paragraphs 8, 9, 10 or 11 or pursuant to Section VI, paragraphs 1(c) and 4(b)(2) of the RST Instrument. ### Deposit Agreement — Interest, Repayment, Encashment, Early Repayment, Liquidation, Transfers, Modality, Exchange, SDR Basket - Interest: - Trustee will pay the Contributor interest on the Original Amount of the Deposit less any amounts repaid or transferred as specified, at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement. - Interest will accrue daily and will be paid promptly on a quarterly basis [after January 31, April 30, July 31 and October 31 of each year]. - Any payment of interest will be limited to the Notional Value of the Deposit. - Following any full repayment of the Deposit in accordance with paragraphs 7 and 9, all remaining interest will be paid to the Contributor at the end of the Fund financial quarter in which repayment was made. - Repayment upon maturity: - As soon as practicable following the Maturity Date, Trustee will repay the Deposit to the Contributor. - Repayment amount will be the lower of: - (a) the Original Amount of the Deposit less any amount(s) repaid to the Contributor under paragraphs 8 or 9 or transferred by the Contributor under paragraph 11, and - (b) the Notional Value of the Deposit. - To the extent any transfers are received in the Deposit Account pursuant to Section VI, paragraph 1(c) after the Maturity Date, the Trustee will promptly repay to the Contributor any amounts received that are attributable to the Deposit. - Encashment (Contributor-initiated early repayment): - Contributor may seek early repayment of all or part of the Deposit (the “Encashed Deposit”) pursuant to Section IV, paragraph 5(e) of the RST Instrument if Contributor represents that Australia’s balance of payments and reserve position justifies early repayment and the Trustee concurs after giving the representation the overwhelming benefit of any doubt. - The Encashed Deposit amount will not exceed the Original Amount of the Deposit less any amounts repaid or transferred as specified, or the Notional Value of the Deposit, whichever is lower. - Contributor will restore an amount equivalent to the Encashed Deposit to the Deposit Account as soon as practicable in light of favorable developments in Australia’s balance of payments and reserve position, as evidenced by inclusion of the Australian currency in the Fund’s Financial Transactions Plan. - Early repayment by Trustee: - Trustee may repay all or part of the Deposit at any time in advance of the Maturity Date; repayment amount will not exceed the Original Amount less any amounts repaid or transferred as specified, or the Notional Value, whichever is lower. - Trustee will give notice to the Contributor at least five (5) Fund business days prior to any advance repayment. - If Australia does not provide its consent to a proposed amendment to the RST Instrument as required under Section X, paragraph 2(a), the Contributor may request the return of a portion of the Original Amount of the Deposit less any amounts repaid or transferred or the Notional Value, whichever is lower, with that portion based on the ratio of remaining uncommitted loan resources to total loan commitments under the Contributor’s Borrowing Agreement in accordance with Section X, paragraph 2(b). - Liquidation: - If Trustee decides to wind up Trust operations, the Trust will repay the Deposit to the Contributor at the Original Amount less any amounts repaid or transferred or the Notional Value, whichever is lower, in accordance with liquidation procedures under the RST Instrument. - Trustee will notify the Contributor in advance of the repayment. Payment will be made to an account specified by the Contributor, which can include an account or trust administered by the Fund. - Transfer of claims: - Contributor may transfer all or part of any claim on the Deposit Account to any member of the Fund, to the central bank or other fiscal agency designated by such a member for purposes of Article V, Section 1, or to any official entity prescribed as a holder of SDRs pursuant to Article XVII, Section 3. - Transferee acquires all benefits of the Contributor under this Deposit Agreement with respect to repayment and interest on the transferred claim, except transferee may request early repayment under paragraph 8 only if it is a member or the central bank or fiscal agency of a member and, at the time of transfer, the member’s balance of payments and reserve position was considered sufficiently strong in the opinion of the Fund for its currency to be usable in transfers under the Fund’s Financial Transactions Plan. - Modality of interest payment and repayment: - Unless otherwise mutually decided, payment of interest and repayments of the Deposit will be made in SDRs. - Payments in SDRs will be made by crediting Australia’s holdings account in the Special Drawing Rights Department; if due date is not a business day of the Fund, payment will be made on the following business day for the Fund. - Repayments in currencies will be made to an account mutually decided; if due date is not a business day of the Fund or the Target system or the domestic markets of the non-euro currencies included in the SDR basket, payment will be made on the following business day for the Fund, the Target system and those domestic markets. - Exchange rate: Unless otherwise mutually decided, all transfers, exchanges, payments of interest, or repayments of the Deposit in currencies will be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund pursuant to Article XIX, Section 7(a) for the second (Fund) business day before the value date of the transfer, exchange [, payment of interest,] or repayment. - SDR basket: If the Fund changes the currency composition or weights of the SDR basket, all transfers, exchanges, payments of interest, and repayments of the Deposit two or more (Fund) business days after the effective date of the change will be made on the basis of the new SDR basket. ### Reserve Contribution Agreement — Amount, Denomination, Investment, Remuneration, Share, Transfer, Distribution - Amount: Contributor will provide a contribution equivalent to SDR 15.2 million to the Reserve Account of the Trust (the “Contribution”). - Denomination and media: - Contribution will be denominated in SDRs. - Contribution will be made in either SDRs or a freely usable currency, as determined by the Contributor. - Contributor will transfer the Contribution to an account specified by the Trustee on or promptly after the effectiveness of the Contribution Agreement. - Investment strategy and risk disclosure: - Resources in the Reserve Account will be invested by the Trustee in accordance with guidelines adopted by the Trustee pursuant to Section V, paragraph 3(a) of the RST Instrument. - Assets of the Reserve Account are exposed to market and credit risk which could result in potential losses to the Contributor’s share in the resources of the Reserve Account. - Remuneration: No remuneration will be paid to the Contributor in respect of the Contribution. - Contributor’s share: Contributor will have a proportional share in the Reserve Account, based on its Contribution, any resources transferred from the Deposit Account and attributed to the Contributor’s contribution to the Deposit Account pursuant to Section VI, Paragraph 5(d) of the RST Instrument, and attributed investment earnings or losses in the Reserve Account. - Transfer of the Contributor’s share: - Contributor may transfer all or part of its share in the Reserve Account at any time to any member of the Fund, to any member’s central bank or other fiscal agency designated by such a member for purposes of Article V, Section 1, or to any official entity prescribed as a holder of SDRs pursuant to Article XVII, Section 3. - Transferee acquires all benefits of the Contributor under this Reserve Contribution Agreement with respect to the transferred amount. - Distribution of resources in the Reserve Account: - Contribution will have no fixed maturity. - Upon liquidation of the Trust, the Trustee will distribute to the Contributor its share in the resources of the Reserve Account in accordance with Section V, paragraph 4(c) of the RST Instrument. - Prior to liquidation and following the Trustee’s decision to distribute a portion of the balances in the Reserve Account in accordance with Section V, paragraph 4(d) of the RST Instrument, the Contributor will receive part of this distribution in proportion to its share. - If Australia does not provide consent to a proposed amendment to the RST Instrument as required under Section X, paragraph 2(a), the Contributor may request the return of a portion of its share in the Reserve Account based on the ratio of remaining uncommitted loan resources to total loan commitments under the Contributor’s Borrowing Agreement in accordance with Section X, paragraph 2(b) of the RST Instrument. *Source: ppea2023003 - 1. Amount. The Contributor decides to lend an amount up to the equivalent of SDR 760* ### 8. Modality of Distribution. ### 8. Modality of Distribution. ### Modality of distribution (Reserve Contribution Agreement) - Unless otherwise mutually decided between the Trustee and the Contributor, any distribution to the Contributor under this Reserve Contribution Agreement will be made in SDRs. - Distribution in SDRs will be made by crediting Australia’s holdings account in the Special Drawing Rights Department on a business day of the Fund. - Distribution in currencies will be made to an account as mutually decided between the Trustee and the Contributor and on the business day of the Fund, the Target system and the domestic markets of the non-euro currencies included in the SDR basket. ### Exchange rates (Reserve Contribution Agreement) - Unless otherwise mutually decided between the Trustee and the Contributor, all transfers, exchanges, and distribution in currencies will be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund 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 (Fund) business day before the value date of the transfer, exchange or payment. ### SDR basket (Reserve Contribution Agreement) - If the Fund changes the currency composition or currency weights of the SDR basket, all transfers, exchanges, and distribution made two or more (Fund) business days after the effective date of the change will be made on the basis of the new SDR basket. ### Final provisions (selected) - Dispute Resolution: This agreement is of an operational and financial nature. Any question arising under this Contribution Agreement will be settled mutually between the Contributor and the Trustee. - Variation: This Contribution Agreement may be amended by mutual agreement in writing between the Contributor and the Trustee. - Signature: This Contribution Agreement may be signed in one or more duplicate counterparts, each of which will be deemed an original, and which together will constitute one and the same instrument. - Effectiveness: This Contribution Agreement will become effective on the last date written below; provided, however, that, Section I. (Borrowing Agreement) will become effective on the last date written below or the date the Managing Director of the Fund has notified the Executive Board of the Fund that the RST has become operational, whichever is later. *For the Government of Australia and For the INTERNATIONAL MONETARY FUND as Trustee: signature dates recorded as October 7, 2022 and October 11, 2022 respectively.* --- ### I. BORROWING AGREEMENT (Canada — selected provisions) ### Amount and denomination - The Contributor agrees to lend an SDR-denominated amount up to the equivalent of C$2,000,000,000 to the Loan Account of the Trust. - This SDR-denominated amount will be determined at the exchange rate for the Canadian dollar in terms of the SDR established by the Fund pursuant to Article XIX, Section 7(a) of the Fund’s Articles of Agreement and the rules and regulations of the Fund thereunder as of the second (Fund) business day before the value date of the transfer by the Contributor of its contribution to the Reserve Account under the Reserve Contribution Agreement. - Each drawing will be denominated in SDRs and paid by the Contributor on the value date specified in the Trustee’s notice by transfer of SDRs to an account specified by the Trustee. ### Drawings (drawdown period and conditions) - The Trustee may make drawings under this Borrowing Agreement at any time during the period from the effective date of this Borrowing Agreement through November 30, 2030 (the “drawdown period”) to finance loan disbursements under the RSF. - The Trustee may make drawings to finance early repayment of outstanding Trust borrowing under other borrowing agreements with the Loan Account pursuant to Section IV, Paragraph 3(b) of the RST Instrument for as long as claims under such borrowing agreements remain outstanding. - The Trustee’s drawings will be suspended following the Contributor’s request for early repayment under paragraph 6 or when Canada is no longer included for transfers in the Fund’s Financial Transactions Plan, in accordance with Section IV, paragraph 4 of the RST Instrument. - If Canada does not provide its consent to a proposed amendment to the RST Instrument pursuant to Section X, paragraph 2(a) of the RST Instrument, further drawings to finance any new commitment of loans under the RSF made after the effectiveness of the proposed amendment will be suspended. - If any installment of principal or interest is not paid to the Contributor within a period of ten Fund business days after its due date, the Trustee will not make further drawings pending consultations; the Trustee may resume drawings once all arrears to the Contributor have been discharged. - Unless otherwise agreed, the Trustee will give the Contributor at least five (Ottawa) business days’ notice of its intention to draw and will provide payment instructions at least two (Fund) business days prior to the value date of the transaction by SWIFT. ### Interest, maturity, repayment, encashment, and early repayment - Interest: Each drawing will bear interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement. - Interest calculation and payments: Interest will be calculated on an actual day basis and will be paid on all outstanding drawings on a quarterly basis promptly after January 31, April 30, July 31, and October 31 of each year. - Maturity and Repayment: Except as otherwise provided, each drawing will be repaid in accordance with the repayment schedule for the loan disbursement under the RSF for which it was drawn; at the time of each drawing, the Trustee will provide information on the specific repayment schedule. - Encashment: The Contributor will have the right to seek early repayment of all or part of the principal amount of its outstanding claims on the Loan Account pursuant to Section IV, paragraph 3(b) of the RST Instrument if the Contributor represents that the balance of payments and reserve position of Canada justifies the early repayment, and the Trustee, having given this representation the overwhelming benefit of any doubt, agrees. Early repayment is subject to the availability of resources under borrowing agreements to the Loan Account of the Trust. - Early Repayment by Trustee: The Trustee may repay any drawing or part thereof at any time in advance of maturity upon its receipt of early repayment of the corresponding loan disbursement under the RSF, provided that the Trustee will give notice to the Contributor at least five (5) (Fund) business days prior to such advance repayment. ### Modality of principal repayment and interest payments - Unless otherwise agreed between the Trustee and the Contributor, payments of principal and interest by the Trustee will be made in SDRs. - Payments in SDRs by the Trustee will be made by crediting Canada’s holdings account in the Special Drawing Rights Department. If the due date is not a business day of the Fund, the payment will be made on the following business day of the Fund. - Payments by the Trustee in currencies will be made to an account as agreed between the Trustee and the Contributor. If the due date is not a business day of the Fund or the Target system or the domestic markets of the non-euro currencies included in the SDR basket, the payment will be made on the following business day for the Fund, the Target system and the domestic markets of the non-euro currencies included in the SDR basket. ### Transfer of claims - The Contributor may transfer at any time all or part of any claim to any member of the Fund, to the central bank or other fiscal agency designated by such a member for purposes of Article V, Section 1 of the Fund’s Articles of Agreement or to any official entity prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement. - The transferee will acquire all the rights of the Contributor with respect to repayment of principal and interest on the transferred claim, except that the transferee will acquire the right to request early repayment under paragraph 6 only if it is a member or the central bank or other fiscal agency of a member and, at the time of transfer, the member’s balance of payments and reserve position was considered sufficiently strong in the opinion of the Fund for its currency to be usable in transfers under the Fund’s Financial Transactions Plan. ### Exchange rates and SDR basket (Borrowing Agreement) - Unless otherwise agreed, all transfers, exchanges, and payments of principal and interest in currencies will be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund 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 (Fund) business day before the value date of the transfer, exchange or payment. - If the Fund changes the currency composition or currency weights of the SDR basket, all transfers, exchanges, and payments of principal and interest made two or more (Fund) business days after the effective date of the change will be made on the basis of the new SDR basket. --- ### II. DEPOSIT AGREEMENT (Canada — selected provisions) ### Amount, denomination, and maturity - Amount of the Deposit: The Contributor will make a deposit (the “Deposit”) of an SDR denominated amount equivalent to C$400,000,000 with the Deposit Account of the Trust (the “Original Amount of the Deposit”). - This SDR-denominated amount will be determined at the exchange rate for the Canadian dollar in terms of the SDR established by the Fund pursuant to Article XIX, Section 7(a) of the Fund’s Articles of Agreement and the rules and regulations of the Fund thereunder as of the second (Fund) business day before the value date of the transfer by the Contributor of its contribution to the Reserve Account under the Reserve Contribution Agreement. - Denomination and Media: - The Deposit will be denominated in SDRs. - The Deposit will be made in either SDRs or a freely usable currency, as determined by the Contributor. - The Deposit will be made promptly on or after the effectiveness of the Contribution Agreement. - Maturity: The Deposit will mature on November 30, 2050 (the “Maturity Date”). ### Investment strategy, notional value, and risk disclosure - Investment Strategy and Risk Disclosure: - The resources from the Deposit will be invested by the Trustee in accordance with the guidelines adopted by the Trustee pursuant to Section VI, paragraph 4(a) of the RST Instrument. - The assets of the Deposit Account are exposed to market and credit risk which could result in potential losses to the Original Amount of the Deposit. - Notional Value: - For purposes set out in paragraphs 6, 7, 8, and 9 of this Deposit Agreement, the Trustee will calculate the notional value of the Deposit based on the Original Amount of the Deposit and subsequently any attributed investment earnings or losses, interest payments made to the Contributor pursuant to paragraph 6, if any, and transfers pursuant to paragraphs 8, 9, 10 or 11 of this Deposit Agreement or pursuant to Section VI, paragraphs 1(c) and 4(b)(2) of the RST Instrument (“Notional Value”). ### Interest, repayment upon maturity, and payments timing - Interest: - The Trustee will pay the Contributor interest on the Original Amount of the Deposit less any amounts repaid to the Contributor under paragraphs 8 or 9 or transferred by the Contributor under paragraph 11 of this Deposit Agreement, at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement. - Interest will accrue daily and will be paid promptly by the Trustee on a quarterly basis after January 31, April 30, July 31 and October 31 of each year. - Any payment of interest will be limited to the Notional Value of the Deposit. - Following any full repayment of the Deposit in accordance with paragraphs 7 and 9, all remaining interest under paragraph 6(a) will be paid to the Contributor at the end of the Fund financial quarter in which repayment was made. - Repayment upon Maturity: - As soon as practicable following the Maturity Date, the Trustee will repay the Deposit to the Contributor. - The repayment amount will be the lower of: - (a) the Original Amount of the Deposit less any amount(s) repaid to the Contributor under paragraphs 8 or 9 or transferred by the Contributor under paragraph 11 of this Deposit Agreement, and - (b) the Notional Value of the Deposit. - To the extent any transfers are received in the Deposit Account pursuant to Section VI, paragraph 1(c) of the RST Instrument after the Maturity Date, the Trustee will promptly repay to the Contributor any amounts received that are attributable to the Deposit. ### Encashment, early repayment, liquidation, and transfer of claims - Encashment: - The Contributor will have the right to seek early repayment of all or part of the Deposit (the “Encashed Deposit”), pursuant to Section VI, paragraph 5(e) of the RST Instrument, if the Contributor represents that the balance of payments and reserve position of Canada justifies the early repayment in advance of the Maturity Date and the Trustee, having given the representation the overwhelming benefit of any doubt, agrees. - The Encashed Deposit amount may not exceed the Original Amount of the Deposit less any amount(s) repaid to the Contributor under this paragraph or paragraph 9 or transferred by the Contributor under paragraph 11 of this Deposit Agreement, or the Notional Value of the Deposit, whichever is lower. - The Contributor agrees to restore an amount equivalent to the Encashed Deposit to the Deposit Account as soon as practicable in light of favorable developments in Canada’s balance of payments and reserve position, as evidenced by the inclusion of the Canada’s currency in the Fund’s Financial Transactions Plan. - Early Repayment by Trustee: - The Trustee may repay all or part of the Deposit at any time in advance of the Maturity Date; provided that the repayment amount may not exceed the Original Amount of the Deposit less any amount(s) repaid under this paragraph or paragraph 8 or transferred under paragraph 11, or the Notional Value of the Deposit, whichever is lower; and provided further that the Trustee will give notice to the Contributor at least five (5) Fund business days prior to any advance repayment. - If Canada does not provide its consent to a proposed amendment to the RST Instrument as required under Section X, paragraph 2(a) of the RST Instrument, the Contributor may request the return of a portion of the Original Amount of the Deposit less any amounts repaid under this paragraph and paragraph 8 or transferred under paragraph 11, or the Notional Value of the Deposit, whichever is lower, with that portion based on the ratio of remaining uncommitted loan resources to total loan commitments under the Contributor’s Borrowing Agreement in accordance with Section X, paragraph 2(b) of the RST Instrument. - Liquidation: - If the Trustee decides to wind up the operations of the Trust, the Trust will repay the Deposit to the Contributor at the Original Amount of the Deposit less any amounts repaid under paragraphs 8 or 9 or transferred under paragraph 11, or the Notional Value of the Deposit, whichever is lower, and in accordance with liquidation procedures under the RST Instrument, provided that the Trustee will notify the Contributor in advance of the repayment. - Payment will be made to an account specified by the Contributor, which can include an account or trust administered by the Fund. - Transfer of Claims: - The Contributor will have the right to transfer at any time all or part of any claim on the Deposit Account to any member of the Fund, to the central bank or other fiscal agency designated by such a member for purposes of Article V, Section 1 of the Fund’s Articles of Agreement, or to any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement. - The transferee will acquire all the rights of the Contributor with respect to repayment of, and interest on, the transferred claim, except that the transferee will acquire the right to request early repayment under paragraph 8 only if it is a member or the central bank or other fiscal agency of a member and, at the time of transfer, the member’s balance of payments and reserve position was considered sufficiently strong in the opinion of the Fund for its currency to be usable in transfers under the Fund’s Financial Transactions Plan. *Source: ppea2023003 - 8. Modality of Distribution.* ### 12. Modality of Interest Payment and Repayment of the Deposit. ### 12. Modality of Interest Payment and Repayment of the Deposit. ### Modality of Payments (Deposit Account) - Unless otherwise agreed between the Contributor and the Trustee, payment of interest and repayments of the Deposit will be made in SDRs. - Payment of interest and repayment of the Deposit in SDRs will be made by crediting the amount due to Canada’s holdings account in the Special Drawing Rights Department. - If the due date is not a business day of the Fund, the payment will be made on the following business day for the Fund. - Payment of interest and repayment of the Deposit by the Trustee in currencies will be made to an account as agreed between the Trustee and the Contributor. - If the due date is not a business day of the Fund or the Target system or the domestic markets of the non-euro currencies included in the SDR basket, the payment will be made on the following business day for the Fund, the Target system and the domestic markets of the non-euro currencies included in the SDR basket. ### Exchange Rate Rule (Deposit Account) - Unless otherwise agreed between the Contributor and the Trustee, all transfers, exchanges, payments of interest, or repayments of the Deposit under this Deposit Agreement in currencies will be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund 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 (Fund) business day before the value date of the transfer, exchange, payment of interest, or repayment. ### SDR Basket (Deposit Account) - If the Fund changes the currency composition or currency weights of the SDR basket, all transfers, exchanges, payments of interest, and repayments of the Deposit two or more (Fund) business days after the effective date of the change will be made on the basis of the new SDR basket. ### III. Reserve Contribution Agreement (Canada contribution C$40,000,000) ### Amount and Denomination - The Contributor will provide a contribution of an SDR-denominated amount equivalent to C$40,000,000 (the “Contribution”), with the SDR-denominated amount to be determined pursuant to paragraph 9 of this Reserve Contribution Agreement as of the second (Fund) business day before the value date of the transfer of the Contribution to the Reserve Account of the Trust. - The Contribution will be denominated in SDRs. - The Contribution will be made in either SDRs or a freely usable currency, as determined by the Contributor. - The Contributor will transfer the Contribution to an account specified by the Trustee on or promptly after the effectiveness of the Contribution Agreement. ### Investment Strategy and Risk - The resources in the Reserve Account will be invested by the Trustee in accordance with the guidelines adopted by the Trustee pursuant to Section V, paragraph 3(a) of the RST Instrument. - The assets of the Reserve Account are exposed to the market and credit risk which could result in potential losses to the Contributor’s share in the resources of the Reserve Account. ### Remuneration and Share - No remuneration will be paid to the Contributor in respect of the Contribution. - The Contributor will have a proportional share in the Reserve Account, based on its Contribution, any resources that are transferred from the Deposit Account and attributed to the Contributor’s contribution to the Deposit Account pursuant to Section VI, Paragraph 5(d) of the RST Instrument, and attributed investment earnings or losses in the Reserve Account. ### Transferability and Distribution Rights - The Contributor will have the right to transfer at any time all or part of its share in the Reserve Account to any member of the Fund, to any member’s central bank or other fiscal agency designated by such a member for purposes of Article V, Section 1 of the Fund’s Articles of Agreement, or to any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement. The transferee will acquire all the rights of the Contributor under this Reserve Contribution Agreement with respect to the transferred amount. - The Contribution will have no fixed maturity. - Upon the liquidation of the Trust, the Trustee will distribute to the Contributor its share in the resources of the Reserve Account of the Trust in accordance with Section V, paragraph 4(c) of the RST Instrument. - Prior to the liquidation of the Trust and following the Trustee’s decision to distribute a portion of the balances in the Reserve Account of the RST in accordance with Section V, paragraph 4(d) of the RST Instrument, the Contributor will receive part of this distribution in proportion to its share in the Reserve Account. - If Canada does not provide its consent to a proposed amendment to the RST Instrument as required under Section X, paragraph 2(a) of the RST Instrument, the Contributor may request the return of a portion of its share in the Reserve Account based on the ratio of remaining uncommitted loan resources to total loan commitments under the Contributor’s Borrowing Agreement in accordance with Section X, paragraph 2(b) of the RST Instrument. ### Modality of Distribution, Exchange Rates, and SDR Basket (Reserve Account) - Unless otherwise agreed between the Trustee and the Contributor, any distribution to the Contributor under this Reserve Contribution Agreement will be made in SDRs. - Distribution in SDRs will be made by crediting Canada’s holdings account in the Special Drawing Rights Department on a business day of the Fund. - Distribution in currencies will be made to an account as agreed between the Trustee and the Contributor and on a business day of the Fund, the Target system and the domestic markets of the non-euro currencies included in the SDR basket. - Unless otherwise agreed between the Trustee and the Contributor, all transfers, exchanges, and distribution in currencies will be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund 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 (Fund) business day before the value date of the transfer, exchange or payment. - If the Fund changes the currency composition or currency weights of the SDR basket, all transfers, exchanges, and distribution made two or more (Fund) business days after the effective date of the change will be made on the basis of the new SDR basket. ### IV. Final Provisions (Selected clauses) - Dispute Resolution: This Agreement is of an operational and financial nature. Any question arising under this Contribution Agreement will be settled by mutual agreement between the Contributor and the Trustee. - Execution: This Contribution Agreement may be executed in one or more duplicate counterparts, each of which will be deemed an original, and which together will constitute one and the same instrument. - Effectiveness: This Contribution Agreement will become effective on the last date written below; provided, however, that, Section I. (Borrowing Agreement) will become effective on the last date written below or the date the Managing Director of the Fund has notified the Executive Board of the Fund that the RST has become operational, whichever is later. *Source: ppea2023003 - 12. Modality of Interest Payment and Repayment of the Deposit.* ### 7. Repayment upon Maturity. As soon as practicable following the Maturity Date, the Trustee ### ppea2023003 - 7. Repayment upon Maturity. As soon as practicable following the Maturity Date, the Trustee ### Repayment upon Maturity - Repayment timing: - As soon as practicable following the Maturity Date. - In another instance (Germany deposit), repayment: "As soon as practicable but not later than 60 days following the Maturity Date." - Repayment amount: - The lower of: - (a) the Original Amount of the Deposit less any amount(s) repaid to the Contributor under paragraphs 8 or 9 or transferred by the Contributor under paragraph 11 of this Deposit Agreement, and - (b) the Notional Value of the Deposit. - Post-maturity transfers: - To the extent any transfers are received in the Deposit Account pursuant to Section VI, paragraph 1(c) of the RST Instrument after the Maturity Date, the Trustee shall promptly repay to the Contributor any amounts received that are attributable to the Deposit. ### Encashment (early repayment requested by Contributor) - Contributor right: - Right to seek early repayment of all or part of the Deposit (the "Encashed Deposit") pursuant to Section VI, paragraph 5(e) of the RST Instrument, if the Contributor represents that the balance of payments and reserve position of the Contributor's country justifies early repayment and the Trustee, having given the representation the overwhelming benefit of any doubt, agrees. - Amount limits: - Encashed Deposit may not exceed the Original Amount of the Deposit less any amount(s) repaid under this paragraph or paragraph 9 or transferred under paragraph 11, or the Notional Value of the Deposit, whichever is lower. - Restoration obligation: - The Contributor agrees to restore an amount equivalent to the Encashed Deposit to the Deposit Account as soon as practicable in light of favorable developments in the Contributor’s balance of payments and reserve position, as evidenced by inclusion of the Contributor’s currency in the Fund’s Financial Transactions Plan. - Example country reference: - Text includes example for China and Germany respectively in different Contribution Agreements. ### Early Repayment (Trustee-initiated and consent-related return) - Trustee-initiated early repayment: - The Trustee may repay all or part of the Deposit at any time in advance of the Maturity Date. - Repayment amount may not exceed the Original Amount of the Deposit less any amount(s) repaid under this paragraph or paragraph 8 or transferred under paragraph 11, or the Notional Value of the Deposit, whichever is lower. - Trustee must give notice to the Contributor at least five (5) Fund business days prior to any advance repayment. - Contributor-requested return if consent withheld: - If the Contributor (e.g., China or Germany in examples) does not provide its consent to a proposed amendment to the RST Instrument as required under Section X, paragraph 2(a) of the RST Instrument, the Contributor may request the return of a portion or the Original Amount of the Deposit (as specified in the applicable clause), with amounts determined by the ratio of remaining uncommitted loan resources to total loan commitments under the Contributor’s Borrowing Agreement in accordance with Section X provisions (references vary between contributor examples). ### Liquidation - Wind-up procedure: - If the Trustee decides to wind up the operations of the Trust, the Trust shall repay the Deposit to the Contributor at the Original Amount of the Deposit less any amount(s) repaid under paragraphs 8 or 9 or transferred under paragraph 11, or the Notional Value of the Deposit, whichever is lower. - Repayment is in accordance with liquidation procedures under the RST Instrument. - Trustee shall notify the Contributor in advance of the repayment. - Payment will be made to an account specified by the Contributor, which can include an account or trust administered by the Fund. ### Transfer of Claims - Contributor transfer rights: - Right to transfer at any time all or part of any claim on the Deposit Account to: - any member of the Fund, - the central bank or other fiscal agency designated by such a member for purposes of Article V, Section 1 of the Fund’s Articles of Agreement, or - any official entity prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement. - Transferee rights: - Transferee acquires all rights of the Contributor under the Deposit Agreement with respect to repayment of and interest on the transferred claim. - Right to request early repayment under paragraph 8 is limited: transferee acquires that right only if it is a member or the central bank or other fiscal agency of a member and, at the time of transfer, the member’s balance of payments and reserve position was considered sufficiently strong in the opinion of the Fund for its currency to be usable in transfers under the Fund’s Financial Transactions Plan. ### Modality of Interest Payment and Repayment of the Deposit - Currency and form: - Unless otherwise agreed, payment of interest shall be made in SDRs and repayment of the Deposit shall be made in SDRs. - SDR payments: - Payment of interest and repayment in SDRs shall be made by crediting the amount due to China’s holdings account in the Special Drawing Rights Department (example language used). - If the due date is not a business day of the Fund, payment shall be made on the following business day for the Fund. - Currency payments: - Payment in currencies shall be made to an account as agreed between the Trustee and the Contributor. - If the due date is not a business day of the Fund or the Target system or the domestic markets of the non-euro currencies included in the SDR basket, payment shall be made on the following business day for the Fund, the Target system and the domestic markets of the non-euro currencies included in the SDR basket. ### Interest provisions (Deposit Agreement) - Interest calculation and payment: - Trustee shall pay interest on the Original Amount of the Deposit less any amounts repaid under paragraphs 8 or 9 or transferred under paragraph 11, at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement. - Interest shall accrue daily. - Interest shall be paid promptly by the Trustee on a quarterly basis after January 31, April 30, July 31 and October 31 of each year. - Any payment of interest shall be limited to the Notional Value of the Deposit. - Following any full repayment of the Deposit in accordance with paragraphs 7 and 9, all remaining interest under paragraph 6(a) shall be paid to the Contributor at the end of the Fund financial quarter in which repayment was made. ### Exchange Rate and SDR Basket provisions - Exchange rates for currency transactions: - Unless otherwise agreed, all transfers, exchanges, payments of interest, or repayments in currencies shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund 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 (Fund) business day before the value date of the transfer, exchange, payment of interest, or repayment. - SDR basket changes: - If the Fund changes the currency composition or currency weights of the SDR basket, all transfers, exchanges, payments of interest, and repayments of the Deposit two or more (Fund) business days after the effective date of the change shall be made on the basis of the new SDR basket. ### Reserve Contribution Agreement — key terms (example: China) - Contribution amount: - The Contributor shall provide a contribution equivalent to SDR 100 million to the Reserve Account of the Trust (the "Contribution"). - Denomination and media: - (a) The Contribution shall be denominated in SDRs. - (b) The Contribution shall be made in either SDRs or a freely usable currency, as determined by the Contributor. - (c) The Contributor shall transfer the Contribution to an account specified by the Trustee on or promptly after the effectiveness of the Contribution Agreement. - Investment strategy and risk disclosure: - Resources in the Reserve Account shall be invested by the Trustee in accordance with guidelines adopted by the Trustee pursuant to Section V, paragraph 3(a) of the RST Instrument. - Assets of the Reserve Account are exposed to market and credit risk which could result in potential losses to the Contributor’s share in the resources of the Reserve Account. - Remuneration: - No remuneration shall be paid to the Contributor in respect of the Contribution. - Contributor’s share and transfers: - Contributor shall have a proportional share in the Reserve Account based on its Contribution, any resources transferred from the Deposit Account and attributed to the Contributor’s contribution, and attributed investment earnings or losses. - Contributor may transfer at any time all or part of its share to eligible transferees (members, central banks/fiscal agencies of members, or official SDR holders). The transferee acquires all rights of the Contributor with respect to the transferred amount. - Distribution and modality: - The Contribution shall have no fixed maturity. - Upon liquidation of the Trust, Trustee shall distribute the Contributor’s share in the Reserve Account in accordance with Section V, paragraph 4(c) of the RST Instrument. - Prior to liquidation and following Trustee decision to distribute balances, Contributor shall receive part of distribution in proportion to its share. - If Contributor does not consent to a proposed amendment as required under Section X, paragraph 2(a), Contributor may request return of a portion of its share based on the ratio of remaining uncommitted loan resources to total loan commitments under the Contributor’s Borrowing Agreement. - Unless otherwise agreed, distributions shall be made in SDRs by crediting the Contributor’s holdings account in the Special Drawing Rights Department on a business day of the Fund; distributions in currencies shall be made to an agreed account on a business day of the Fund, the Target system and the domestic markets of the non-euro currencies included in the SDR basket. - Exchange rates and SDR basket for Reserve Account: - Unless otherwise agreed, all transfers, exchanges, and distribution in currencies shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund pursuant to Article XIX, Section 7(a) for the second (Fund) business day before the value date. - If the Fund changes the SDR basket composition or weights, transfers, exchanges, and distribution made two or more (Fund) business days after the effective date shall use the new SDR basket. ### Additional execution and effectiveness provisions (final provisions) - Dispute resolution: - Any question arising under this Contribution Agreement shall be settled by mutual agreement between the Contributor and the Trustee. - Execution: - The Contribution Agreement may be executed in one or more duplicate counterparts, each deemed an original and together constituting one instrument. - Effectiveness: - The Contribution Agreement shall become effective on the last date written below; provided, however, that Section I. (Borrowing Agreement) shall become effective on the last date written below or the date the Managing Director of the Fund has notified the Executive Board of the Fund that the RST has become operational, whichever is later. - Signature dates (example entries in text): - For the PEOPLE’S BANK of CHINA: - September 26, 2022 — Yi Gang /s — Governor - For the INTERNATIONAL MONETARY FUND as Trustee: - September 27, 2022 — Kristalina Georgieva /s — Managing Director - Example Germany deposit terms (excerpt): - Original Amount of the Deposit: 5.7 billion euro. - Denomination and media: - (a) The Deposit shall be denominated in SDRs. - (b) The Deposit shall be made in euros. - (c) The Deposit shall be made by February 28, 2023. - Maturity: The Deposit shall mature on the tenth anniversary of the date on which the Deposit is received (the "Maturity Date"). - Interest, early repayment, liquidation and other clauses follow the same structures and limitations described above. *International Monetary Fund — Contribution Agreement (excerpt).* ### 11. Transfer of Claims. ### 11. Transfer of Claims. ### Transfer rights under the Deposit Agreement - (a) The Contributor shall have the right to transfer at any time all or part of any claim on the Deposit Account to: - any member of the Fund, - the central bank or other fiscal agency designated by such a member for purposes of Article V, Section 1 of the Fund’s Articles of Agreement, or - any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement. - (b) The transferee shall acquire all the rights of the Contributor under this Deposit Agreement with respect to repayment of, and interest on, the transferred claim, except that: - the transferee shall acquire the right to request early repayment under paragraph 8 of this Deposit Agreement only if it is a member or the central bank or other fiscal agency of a member and, at the time of transfer, the member’s balance of payments and reserve position was considered sufficiently strong in the opinion of the Fund for its currency to be usable in transfers under the Fund’s Financial Transactions Plan. ### Modality of interest payment and repayment of the Deposit - (a) Payment of interest and repayments of the Deposit shall be made in euros. - Payment of interest and repayment of the Deposit by the Trustee shall be made to an account as agreed between the Trustee and the Contributor. - If the due date is not a business day of the Fund or the Target system or the domestic markets of the non-euro currencies included in the SDR basket, the payment shall be made on the following business day for the Fund, the Target system and the domestic markets of the non-euro currencies included in the SDR basket. ### Exchange rate for transfers, exchanges, payments and repayments - Unless otherwise agreed between the Contributor and the Trustee, all transfers, exchanges, payments of interest, or repayments of the Deposit under this Deposit Agreement in currencies shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund 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 (Fund) business day before the value date of the transfer, exchange, payment of interest, or repayment. ### SDR basket changes - If the Fund changes the currency composition or currency weights of the SDR basket, all transfers, exchanges, payments of interest, and repayments of the Deposit two or more (Fund) business days after the effective date of the change shall be made on the basis of the new SDR basket. ### Reserve Contribution Agreement — key terms and modalities - Amount: - The Contributor shall provide a contribution equivalent to 600 million euro to the Reserve Account of the Trust (the “Contribution”). - Denomination and Media: - (a) The Contribution shall be denominated in SDRs. - (b) The Contribution shall be made in euros. - (c) The Contributor shall transfer the Contribution to an account specified by the Trustee by February 28, 2023. - Investment strategy and risk disclosure: - (a) The resources in the Reserve Account shall be invested by the Trustee in accordance with the guidelines adopted by the Trustee pursuant to Section V, paragraph 3(a) of the RST Instrument. - (b) The assets of the Reserve Account are exposed to the market and credit risk which could result in potential losses to the Contributor’s share in the resources of the Reserve Account. - Remuneration: - No remuneration shall be paid to the Contributor in respect of the Contribution. - Contributor’s share: - The Contributor shall have a proportional share in the Reserve Account, based on its Contribution, any resources transferred from the Deposit Account and attributed to the Contributor’s contribution to the Deposit Account pursuant to Section VI, Paragraph 5(d) of the RST Instrument, and attributed investment earnings or losses in the Reserve Account. - Transfer of the Contributor’s share: - The Contributor shall have the right to transfer at any time all or part of its share in the Reserve Account to: - any member of the Fund, - any member’s central bank or other fiscal agency designated by such a member for purposes of Article V, Section 1 of the Fund’s Articles of Agreement, or - any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement. - The transferee shall acquire all the rights of the Contributor under this Reserve Contribution Agreement with respect to the transferred amount. - Distribution of resources in the Reserve Account: - (a) The Contribution shall have a maturity of 10 years from the date on which it is received. - (b) Upon the liquidation of the Trust prior to maturity, the Trustee shall distribute to the Contributor its share in the resources of the Reserve Account of the Trust in accordance with Section V, paragraph 4(c) of the RST Instrument. - (c) Prior to maturity and the liquidation of the Trust, and following the Trustee’s decision to distribute a portion of the balances in the Reserve Account of the RST in accordance with Section V, paragraph 4(d) of the RST Instrument, the Contributor shall receive part of this distribution in proportion to its share in the Reserve Account. - (d) If Germany does not provide its consent to a proposed amendment to the RST Instrument as required under Section X, paragraph 2(a) of the RST Instrument, the Contributor may request the return of its share in the Reserve Account in accordance with Section X, paragraph 2(c) of the RST Instrument. - Modality of distribution: - (a) Unless otherwise agreed between the Trustee and the Contributor, any distribution to the Contributor under this Reserve Contribution Agreement shall be made in euros. - (b) Distributions shall be made to an account as agreed between the Trustee and the Contributor and on a business day of the Fund, the Target system and the domestic markets of the non-euro currencies included in the SDR basket. - Exchange rates for transfers, exchanges and distributions: - Unless otherwise agreed between the Trustee and the Contributor, all transfers, exchanges, and distribution in currencies shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund 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 (Fund) business day before the value date of the transfer, exchange or payment. - SDR basket changes for the Reserve Account: - If the Fund changes the currency composition or currency weights of the SDR basket, all transfers, exchanges, and distribution made two or more (Fund) business days after the effective date of the change shall be made on the basis of the new SDR basket. *Source: ppea2023003 - 11. Transfer of Claims.* ### 4. Remuneration. No remuneration shall be paid to the Contributor in respect of the ### 4. Remuneration. No remuneration shall be paid to the Contributor in respect of the Contribution. ### Contributor’s share and transfer rights - The Contributor shall have a proportional share in the Reserve Account, based on: - its Contribution, - any resources transferred from the Deposit Account and attributed to the Contributor’s contribution to the Deposit Account pursuant to Section VI, Paragraph 5(d) of the RST Instrument, - attributed investment earnings or losses in the Reserve Account. - The Contributor may transfer at anytime all or part of its share in the Reserve Account to: - any member of the Fund, - any member’s central bank or other fiscal agency designated by such a member for purposes of Article V, Section 1 of the Fund’s Articles of Agreement, - any official entity that has been prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement. - The transferee shall acquire all the rights of the Contributor under this Reserve Contribution Agreement with respect to the transferred amount. ### Distribution of Reserve Account resources - (a) The Contribution shall have no fixed maturity. - (b) Upon liquidation of the Trust, the Trustee shall distribute to the Contributor its share in the resources of the Reserve Account of the Trust in accordance with Section V, paragraph 4(c) of the RST Instrument. - (c) Prior to liquidation and following the Trustee’s decision to distribute a portion of Reserve Account balances in accordance with Section V, paragraph 4(d) of the RST Instrument, the Contributor shall receive part of this distribution in proportion to its share in the Reserve Account. - (d) If Japan does not provide its consent to a proposed amendment to the RST Instrument as required under Section X, paragraph 2(a) of the RST Instrument, the Contributor may request the return of a portion of its share in the Reserve Account based on the ratio of remaining uncommitted loan resources to total loan commitments to the Trust under the Loan Account Note Purchase Agreement in accordance with Section X, paragraph 2(b) of the RST Instrument. ### Modality and currency of distributions - (a) Unless otherwise agreed between the Trustee and the Contributor, any distribution to the Contributor under this Reserve Contribution Agreement shall be made in SDRs. - (b) Distribution in SDRs shall be made by crediting Japan’s holdings account in the Special Drawing Rights Department on a business day of the Fund. - (c) Distribution in currencies shall be made to an account as agreed between the Trustee and the Contributor and on the business day of the Fund, the Target system and the domestic markets of the non-euro currencies included in the SDR basket. ### Exchange rates and SDR basket adjustments - Unless otherwise agreed between the Trustee and the Contributor, all transfers, exchanges, and distribution in currencies shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund 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 (Fund) business day before the value date of the transfer, exchange, or payment. - If the Fund changes the currency composition or currency weights of the SDR basket, all transfers, exchanges, and distribution made two or more (Fund) business days after the effective date of the change shall be made on the basis of the new SDR basket. ### IV. Final Provisions — key clauses - Dispute Resolution: Any question arising under this Contribution Agreement shall be settled by mutual agreement between the Contributor and the Trustee. - Execution: This Contribution Agreement may be executed in one or more duplicate counterparts, each of which shall be deemed an original, and which together shall constitute one and the same instrument. - Effectiveness: This Contribution Agreement shall become effective on the last date written below; provided, however, that Section I (Loan Account Note Purchase Agreement) shall become effective on the last date written below or the date the Managing Director of the Fund has notified the Executive Board of the Fund that the RST has become operational, whichever is later. - Signature dates recorded in the text: - For the GOVERNMENT OF JAPAN: October 4, 2022 — Shunichi Suzuki /s Date Minister of Finance. - For the INTERNATIONAL MONETARY FUND, as TRUSTEE OF THE RESILIENCE AND SUSTAINABILITY TRUST: October 6, 2022 — Kristalina Georgieva /s Date Managing Director. ### Annex 1 — General Terms and Conditions for Notes - Scope: - Issued pursuant to the Instrument to Establish the Resilience and Sustainability Trust adopted by Executive Board Decision No. 17231(22/37), adopted April 13, 2022, and the Loan Account Note Purchase Agreement between the Fund (as Trustee) and the Government of Japan. - Key definitions: - “Permitted Holder” means: (i) the Contributor, (ii) a member of the Fund, (iii) the central bank or other fiscal agency designated by a member for purposes of Article V, Section 1 of the Fund’s Articles of Agreement (“fiscal agency of a member”), and (iv) an official entity prescribed as a holder of SDRs pursuant to Article XVII, Section 3 (“Prescribed SDR holder”). Permitted Holders shall be the only authorized holders of Notes. - “Notes” mean the promissory notes that are subject to these General Terms and Conditions. - “Relevant Member” means, for a Permitted Holder that is a central bank, fiscal agency or other official institution, that member of the Fund. ### Annex 1 — Form, issuance, and custody of Notes - Notes will only be issued in book entry form; Trustee will maintain a book entry account for each Permitted Holder recording number, issue date, principal amount, and maturity date. - Upon request, Trust will issue a registered Note substantially in the form set out in Annex 2, bearing as its issue date the value date of the purchase. - Trustee will keep registered Notes in custody for the Permitted Holder unless otherwise agreed. ### Annex 1 — Maturity, repayment, and cancellation mechanics - (a) Standard maturity: each Note shall have a maturity date that is six months from its issue date, except as provided. - Trustee may elect to extend maturity by additional periods of up to six months after initial maturity. - Trustee is deemed to have elected extensions for all Notes unless, at least five (Fund) business days before a maturity date, the Trustee notifies a Permitted Holder in writing that it does not elect to extend. - No Note maturity may be extended later than the maturity dates for the loan disbursement under the Resilience and Sustainability Facility of the Trust for which it was issued. - Notes issued in connection with early repayment of other Trust borrowing shall have the maximum maturity dates associated with such other borrowing. - At issuance, Trustee shall provide the specific repayment schedule for the Note issued. - (b) Trustee shall pay principal on the applicable maturity date. - (c) Trustee may make early repayment in part or full of principal upon its receipt of early repayment of the corresponding loan disbursement under the RSF, provided Trustee notifies Permitted Holder at least five (Fund) business days before early repayment. - (d) Trustee will cancel a Note upon repayment of principal and all accrued interest; if partial early repayment or partial extension occurs, Trustee will cancel and reissue new Notes reflecting remaining amounts and applicable maturity dates. - (e) Any Note to be cancelled not in Trustee custody must be surrendered for cancellation. ### Annex 1 — Interest, payments, and timing - Interest: - Interest on each Note computed at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement. - Interest payable calculated on an actual day basis and paid quarterly promptly after July 31, October 31, January 31, and April 30 of each year. - Media of payment: - Unless otherwise agreed, payments of principal and interest by the Trustee shall be made in SDRs. - Payments in SDRs shall be made by crediting the holdings account in the Special Drawing Rights Department of the Permitted Holder or of the Relevant Member. - Payments in currencies shall be made to an account agreed between Trustee and Permitted Holder; if due date not a business day of relevant systems/markets, payment made on the following business day. ### Annex 1 — Transferability and restrictions - (a) Permitted Holders may transfer at any time all or part of any Note to: - any member of the Fund, - the central bank or other fiscal agency of such a member, - a Prescribed SDR holder. - (b) Transferee assumes all obligations of the transferor with respect to maturity extensions and holds the Note on same terms, except for rights to early payment under paragraph 6. - (c) Transfer price as agreed between transferor and transferee. - (d) Transferor must inform Trustee promptly of transfers (amount, transferee name, agreed price, value date); transfer is recorded by Trustee and becomes effective as of the agreed value date if in accordance with paragraph 5. - (e) Trustee will cancel transferred Notes and issue new Notes to transferee and, if applicable, to transferor for retained amounts; new Notes retain the issue date of cancelled Note and same maturity date (including extensions). - (f) If all or part of a Note is transferred, Trustee will pay the full interest payment for that period to the transferee. - (g) Derivative transactions in respect of any Note, and transfers of participation interests in any Note, are prohibited. ### Annex 1 — Early payment at request of certain Permitted Holders - (a) Rights in subparagraph (b) apply only to a Permitted Holder that is: - (A) the Contributor, or - (B) a member of the Fund or the central bank or other fiscal agency of a member that acquired the Notes by transfer if, 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 for its currency to be usable in transfers under the Financial Transactions Plan. - (b) If such a Permitted Holder represents that its balance of payments and reserve position justifies early payment of all or part of principal and the Trustee, giving that representation the overwhelming benefit of any doubt, agrees, then the Trust shall pursuant to Section IV, paragraph 3(b) of the RST Instrument pay the principal amount of the Permitted Holder’s Notes then outstanding up to the amount requested, subject to the availability of resources under borrowing agreements and note purchase agreements to finance the Loan Account of the Trust. ### Annex 1 — Exchange rate and valuation rules - Effective exchange rate for currency payments: unless otherwise agreed, currency payments of principal and interest will be made at the exchange rates for relevant currencies in terms of the SDR established pursuant to Article XIX, Section 7(a) of the Fund’s Articles of Agreement and the Fund’s rules for the second (Fund) business day before the value date of the payment. - If this 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. - If the Fund changes the currency composition or weights of the SDR basket, all transfers, exchanges, and payments of principal and interest on the Notes made two or more (Fund) business days after the effective date of the change will be made on the basis of the new SDR basket. ### Annex 1 — Settlement of questions - Any question arising under any Note shall be settled by mutual agreement between the relevant Permitted Holder and the Trustee. ### Annex 2 — Form of Registered Loan Account Note (high-level elements) - The registered Note form specifies: - fields for Number, SDR amount, Issue Date, Maturity Date (including automatic extension description), - promise to pay an amount equivalent to specified Special Drawing Rights (SDR) on maturity and to pay interest as set forth, - that the Note is issued in accordance with the General Terms and Conditions and the Loan Account Note Purchase Agreement, - legend restricting transfer to Permitted Holders and prohibiting derivative transactions and transfers of participation interests, - interest accrual at the SDR interest rate established by the Fund pursuant to Article XX, Section 3, calculated on an actual day basis and payable quarterly promptly after July 31, October 31, January 31, and April 30 of each year, - payments in SDRs or agreed currency; SDR payments by crediting SDR Department account of registered holder or the member for which the registered holder serves as central bank/fiscal agency. *Source: Contribution Agreement and Annexes (excerpt) — Resilience and Sustainability Trust borrowing and note terms.* ### Annex 3 ### Annex 3 — Terms and Conditions for the Note issued pursuant to the Deposit Account Note Agreement between the International Monetary Fund, as Trustee of the Resilience and Sustainability Trust and the Government of Japan ### Definitions - “Holder”: the Contributor or the most recent transferee; the Holder must be a Permitted Holder. - “Maturity Date”: November 30, 2050. - “Note”: any promissory note that is subject to these Terms and Conditions. - “Notional Value”: the Principal Amount of a Note as adjusted for any attributed investment earnings or losses, interest payments made under paragraph 3, and any attributed transfers pursuant to Section VI, paragraph 1(c) and paragraph 4(b)(2) of the Instrument to Establish the Resilience and Sustainability Trust (the "Trust Instrument"). - “Permitted Holder”: (i) the Contributor, (ii) a member of the Fund, (iii) the central bank or other fiscal agency designated by a member of the Fund for purposes of Article V, Section 1 of the Fund’s Articles of Agreement, and (iv) an official entity prescribed as a holder of special drawing rights (“SDRs”) pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement. Permitted Holders shall be the only authorized holders of Note. - “Principal Amount”: (i) for the Note issued to the Contributor under the Deposit Account Note Agreement, the original principal amount of contribution made by the Contributor to the Deposit Account of the Trust, reduced upon any repayment by the Trustee pursuant to subparagraph 4(b) and paragraph 5 or transfers by the Contributor under paragraph 7, and increased by amounts restored to the Deposit Account pursuant to subparagraph 4(c); (ii) for a Note issued to any Holder as a result of transfer under paragraph 7, the transferred amount recorded as all or part of the Principal Amount of the Note held by the transferor prior to the transfer, similarly reduced or increased upon repayments, transfers, or restorations as specified. - “Relevant Member”: for a Holder that is the central bank, fiscal agency or other official institution of a member, that member of the Fund. ### Form, Delivery and Custody of Notes - Notes issued only in book entry form; Trustee will maintain a book entry account recording Note number, issue date and Principal Amount. - Entry in Trustee records as of the value date of purchase or any transfer constitutes delivery to the Contributor or transferee. - Upon request of a Permitted Holder, the Trustee will issue a registered Note substantially in the form set out in Annex 4 to the Contribution Agreement, bearing as issue date the value date of purchase and issued in the name of the relevant Holder. - Unless otherwise agreed, the Trustee will keep registered Notes in custody for the Holder; acceptance of custody by the Trustee constitutes delivery. ### Interest - Interest accrues on the Principal Amount of the Note at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement (subject to subparagraph (c) of paragraph 3). - Interest amount calculated on an actual day basis and paid on a quarterly basis promptly after July 31, October 31, January 31, and April 30 of each year. - Any payment of interest shall be limited to the Notional Value of the Note. ### Encashment (early payment by Holder) - Applicability: rights in subparagraph (b) apply only to a Holder that is (i) the Contributor or (ii) a member of the Fund or the central bank or other fiscal agency of a member that acquired the Notes by transfer if, at the time of transfer, the balance of payments and reserve position was considered sufficiently strong in the opinion of the Fund for its currency to be usable in transfers under the Financial Transactions Plan. - A covered Holder may seek early repayment of all or part of the Principal Amount (the “Encashed Amount”) pursuant to Section VI, paragraph 5(e) of the RST Instrument if the Holder represents its balance of payments and reserve position justifies early payment and the Trustee, giving the representation the overwhelming benefit of any doubt, agrees. The Encashed Amount may not exceed the Notional Value of the Note. - By exercising this right, the Holder agrees to restore an amount equivalent to the Encashed Amount to the Deposit Account of the Trust as soon as practicable in light of favorable developments in its balance of payments and reserve position, as evidenced by inclusion of its currency in the Fund’s Financial Transactions Plan. Restored amounts increase the Principal Amount of the Note accordingly. - Principal Amount and Notional Value shall be adjusted for amounts repaid or restored. - For early repayments, the Trustee will cancel the Note repaid in whole or in part; if registered, the Holder must surrender for cancellation any such registered Note not already in Trustee custody. Upon cancellation, the Trustee will issue a new Note for any part of the Principal Amount not repaid. If an Encashed Amount is restored, similar cancellation and reissuance procedures apply; the issue date of the new Note will be the issue date of the cancelled Note. ### Early Repayment by Trustee; Contributor Option if Amendment Not Consented - The Trustee may redeem any Note, in whole or in part, at any time in advance of the Maturity Date; repayment amount may not exceed the Notional Value of the Note; Trustee will give notice to the Contributor at least five (5) Fund business days prior to any redemption. - If Japan does not provide its consent to a proposed amendment to the RST Instrument as required under Section X, paragraph 2(a) of the RST Instrument and the Contributor is the Holder, a portion of such Note will be repayable at the option of the Contributor; repayment amount may not exceed the Notional Value of the Note; the repayable portion will be based on the ratio of remaining unissued notes to total note purchase commitments under the Contributor’s Loan Account Note Purchase Agreement in accordance with Section X, paragraph 2(b) of the RST Instrument. - Upon early repayment, Principal Amount and Notional Value shall be adjusted for the amount repaid. - For such early repayments, Trustee cancellation and reissuance procedures mirror those in paragraph 4(e); issue date of the new Note will be the issue date of the cancelled Note. ### Liquidation - If the Trustee decides to wind up the operations of the Trust, the Trustee shall redeem 100 percent of the Principal Amount of any Note in accordance with the liquidation procedures under the RST Instrument; repayment amount may not exceed the Notional Value of any Note; Trustee shall notify the Holder in advance of the redemption. - Payment will be made to an account specified by the Holder, which can include an account or trust administered by the Fund. Following redemption under this paragraph, the Notes will be cancelled by the Trustee. ### Transferability of Notes - A Holder may transfer at any time all or part of any Note to any other Permitted Holder. The Trustee shall inform the Holder about the most recent Notional Value of the Note. - Transferor shall promptly inform the Trustee of the portion transferred, transferee name, agreed price, and value date; Trustee records the transfer. Upon recording, transfer effective as of the agreed value date. - For transfers, Trustee will cancel the transferred Note in whole or in part; if registered, transferor must surrender for cancellation any such registered Note not already in Trustee custody. Upon cancellation, Trustee will issue a new Note in the name of the transferee for any part of the Principal Amount transferred and, where appropriate, a new Note in the name of the transferor for any part retained. Issue date of each new Note will be the issue date of the cancelled Note. - If less than the full Principal Amount is transferred, the Principal Amount of the new Note held by the transferor shall be reduced by the transferred amount, and the Notional Value of that new Note shall be proportionally reduced from the Notional Value of the original Note. The Principal Amount and the Notional Amount of the new Note to be held by the transferee shall be the transferred amount and the amount equal to the difference between the Notional Value of the original Note held by the transferor and the Notional Value of the new Note to be held by the transferor, respectively. - If all or part of a Note is transferred, the Trustee will pay interest for the full period on the amount transferred to the transferee. - Derivative transactions in respect of any Note, and transfers of participation interests in any Note, are prohibited. ### Payment upon Maturity - As soon as practicable following the Maturity Date, the Trustee shall repay the Holder the Principal Amount or the Notional Value of that Note, whichever is lower. ### Media and Modalities of Payments; Cancellation; Payment after Cancellation - Unless otherwise agreed, Trustee shall pay interest and make repayment of the Note in SDRs. - Payment of interest and repayment in SDRs shall be made by crediting the amount due to the Holder’s or Relevant Member’s account in the Special Drawing Rights Department. If the due date is not a business day of the Fund, payment shall be made on the following business day for the Fund. - Payment in currencies shall be made to an account agreed between the Trustee and the Holder. If due date is not a business day of the Fund or the Target system or the domestic markets of the non-euro currencies included in the SDR basket, payment shall be made on the following business day for the Fund, the Target system and the domestic markets of the non-euro currencies included in the SDR basket. - Upon full repayment of the Principal Amount or the Notional Value, whichever is lower, the relevant Note shall be cancelled, and any remaining interest accrued from the last interest payment date to, but excluding, that repayment date shall be paid to the Holder at the end of the Fund financial quarter in which the repayment was made. - To the extent any transfers are received in the Deposit Account of the Trust pursuant to Section VI, paragraph 1(c) of the RST Instrument after cancellation of a Note under the preceding subparagraph, the Trustee shall promptly pay to the last Holder of that Note any amounts received that are attributable to that Note. ### Exchange Rates - Unless otherwise agreed, all payments of interest and repayments in currency 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 the rules and regulations of the Fund thereunder for the second (Fund) business day before the value date of the payment. - If this exchange rate determination date is not a business day in the Holder’s principal location, then such date will be the last preceding business day of the Fund that is also a business day in the Holder’s principal location. ### SDR Basket - If the Fund changes the currency composition or currency weights of the SDR basket, all payments of interest on the Notes and repayments of the Notes two or more (Fund) business days after the effective date of the change shall be made on the basis of the new SDR basket. ### Dispute Resolution - Any question arising under any Note shall be settled by mutual agreement between the Holder and the Trustee. ### Annex 4 — Japan Deposit Account Note (form summary) - Note Number: 1. - Amount: SDR ___________. - Issue Date: _____________. - Maturity Date: November 30, 2050. - The Note is issued in accordance with the Terms and Conditions; each holder deemed to have agreed to those Terms and Conditions including maturity date, interest rate, early repayment and transfer terms. - Payment on Maturity: lower of (i) the Principal Amount of the Note or (ii) the Notional Value of the Note. - Restriction: THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES LAWS OF ANY JURISDICTION. IN NO EVENT SHALL ANY HOLDER OF THIS NOTE SELL, ASSIGN, DISPOSE OF OR OTHERWISE TRANSFER THIS NOTE, DIRECTLY OR INDIRECTLY, TO ANY ENTITY THAT IS NOT (I) A MEMBER OF THE FUND, (II) THE CENTRAL BANK OR OTHER FISCAL AGENCY DESIGNATED BY A MEMBER OF THE FUND FOR PURPOSES OF ARTICLE V, SECTION 1 OF THE FUND’S ARTICLES OF AGREEMENT, OR (III) AN OFFICIAL ENTITY THAT HAS BEEN PRESCRIBED AS A HOLDER OF SPECIAL DRAWING RIGHTS PURSUANT TO ARTICLE XVII, SECTION 3 OF THE FUND’S ARTICLES OF AGREEMENT. - Prohibition: ANY DERIVATIVE TRANSACTIONS IN RESPECT OF THIS NOTE, AND TRANSFERS OF PARTICIPATION INTERESTS IN THIS NOTE, ARE PROHIBITED. - Interest: accrues daily on the Principal Amount at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement; calculated on an actual day basis and paid promptly after July 31, October 31, January 31, and April 30 of each year. Payments of interest limited to the Notional Value and made in SDRs or such currency as agreed between registered holder and Trustee. Payments in SDRs made by crediting the SDR Department account of the registered holder or of the member for which the registered holder serves as central bank or other fiscal agency. *International Monetary Fund — Annex 3* ### 1. Amount. The Contributor agrees to lend an SDR-denominated amount up to the equivalent ### ppea2023003 - 1. Amount. The Contributor agrees to lend an SDR-denominated amount up to the equivalent ### Amount - The Contributor agrees to lend an SDR-denominated amount up to the equivalent of Euros 1,525,000,000 to the Loan Account of the Trust. - This SDR-denominated amount will be determined at the exchange rate for the euro in terms of the SDR established by the Fund pursuant to Article XIX, Section 7(a) of the Fund’s Articles of Agreement and the rules and regulations of the Fund thereunder as of the second ( Fund) business day before the value date of the transfer by the Contributor of its contribution to the Reserve Account under the Reserve Contribution Agreement. ### Drawings (use of borrowed amount and conditions) - Drawing period: - The Trustee may make drawings under this Borrowing Agreement at any time during the period from the effective date of this Borrowing Agreement through November 30, 2030 (the “drawdown period”). - Permitted uses: - To finance loan disbursements under the RSF. - To finance early repayment of outstanding Trust borrowing under other borrowing agreements with the Loan Account pursuant to Section IV, Paragraph 3(b) of the RST Instrument for as long as claims under such borrowing agreements remain outstanding. - Suspension and restrictions: - Drawings shall be suspended following the Contributor’s request for early repayment under paragraph 6 or when Spain is no longer included for transfers in the Fund’s Financial Transactions Plan, in accordance with Section IV, paragraph 4 of the RST Instrument. - If Spain does not provide its consent to a proposed amendment to the RST Instrument pursuant to Section X, paragraph 2(a) of the RST Instrument, further drawings to finance any new commitment of loans under the RSF made after the effectiveness of the proposed amendment shall be suspended. - If any installment of principal or interest is not paid to the Contributor within a period of ten Fund business days after its due date, the Trustee shall not make further drawings pending consultations with the Contributor; drawings may resume once all arrears to the Contributor have been discharged. - Notice requirements: - Unless otherwise agreed, the Trustee shall give the Contributor at least five (Madrid) business days’ notice of its intention to draw and shall provide payment instructions at least two (Fund) business days prior to the value date of the transaction by SWIFT. ### Denomination, Media, and Claim Certificate - Each drawing: - Shall be denominated in SDRs. - Shall be paid by the Contributor on the value date specified in the Trustee’s notice by transfer of SDRs to an account specified by the Trustee. - Upon request, the Trustee shall issue to the Contributor a non-negotiable certificate evidencing its claim on the Trust resulting from a drawing outstanding under this Borrowing Agreement. ### Interest - Each drawing shall bear interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement. - Interest calculation and payment: - The amount of interest payable in respect of each drawing shall be calculated on an actual day basis. - Interest shall be paid on all outstanding drawings under this Borrowing Agreement on a quarterly basis promptly after January 31, April 30, July 31, and October 31 of each year. ### Maturity and Repayment - Except as otherwise provided in this Borrowing Agreement, each drawing shall be repaid in accordance with the repayment schedule for the loan disbursement under the RSF for which it was drawn. - At the time of each drawing, the Trustee shall provide information to the Contributor on the specific repayment schedule for the amount drawn. ### Encashment and Early Repayment (Contributor rights and Trustee actions) - Encashment right: - The Contributor shall have the right to seek early repayment of all or part of the principal amount of its outstanding claims on the Loan Account of the Trust pursuant to Section IV, paragraph 3(b) of the RST Instrument if the Contributor represents that the balance of payments and reserve position of Spain justifies the early repayment and the Trustee, having given this representation the overwhelming benefit of any doubt, agrees. - Early repayment is subject to the availability of resources under borrowing agreements to the Loan Account of the Trust. - Trustee early repayment: - The Trustee may repay any drawing or part thereof at any time in advance of maturity upon its receipt of early repayment of the corresponding loan disbursement under the RSF, provided that the Trustee will give notice to the Contributor at least five (5) (Fund) business days prior to such advance repayment. ### Modality of Principal Repayment and Interest Payments - Unless otherwise agreed, payments of principal and interest by the Trustee shall be made in SDRs. - Payments in SDRs by the Trustee shall be made by crediting Spain’s holdings account in the Special Drawing Rights Department; if the due date is not a business day of the Fund, payment shall be made on the following business day of the Fund. - Payments by the Trustee in currencies shall be made to an account as agreed between the Trustee and the Contributor; if the due date is not a business day of the Fund or the Target system or the domestic markets of the non-euro currencies included in the SDR basket, payment shall be made on the following business day for the Fund, the Target system and the domestic markets of the non-euro currencies included in the SDR basket. ### Transfer of Claims - The Contributor may transfer at any time all or part of any claim to: - Any member of the Fund that is a participant in the Fund’s SDR Department, - The central bank or other fiscal agency designated by such a member for purposes of Article V, Section 1 of the Fund’s Articles of Agreement, or - Any official entity prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement. - Rights of transferee: - The transferee shall acquire all the rights of the Contributor under this Borrowing Agreement with respect to repayment of principal and interest on the transferred claim. - The transferee shall acquire the right to request early repayment under paragraph 6 only if it is a member or the central bank or other fiscal agency of a member and, at the time of transfer, the member’s balance of payments and reserve position was considered sufficiently strong in the opinion of the Fund for its currency to be usable in transfers under the Fund’s Financial Transactions Plan. ### Exchange Rates and SDR Basket - Unless otherwise agreed, all transfers, exchanges, and payments of principal and interest in currencies shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund pursuant to Article XIX, Section 7(a) for the second (Fund) business day before the value date of the transfer, exchange or payment. - If the Fund changes the currency composition or currency weights of the SDR basket, all transfers, exchanges, and payments of principal and interest made two or more (Fund) business days after the effective date of the change shall be made on the basis of the new SDR basket. ### Dispute Resolution and Effectiveness - Any question arising under this Borrowing Agreement shall be settled by mutual agreement between the Contributor and the Trustee. - Execution and effectiveness: - The Borrowing Agreement may be executed in one or more duplicate counterparts, each deemed an original. - The Borrowing Agreement shall become effective on the later of: (i) the last date written below, or (ii) the date the Managing Director of the Fund has notified the Executive Board of the Fund that the RST has become operational. - Signatures and dates recorded: - For the Banco de España: September 5, 2022 — Pablo Hernandez de Cos /s Date Governor. - For the INTERNATIONAL MONETARY FUND as Trustee: September 8, 2022 — Kristalina Georgieva /s Date Managing Director. --- ### Attachment VII — Deposit Agreement (Banco De España and IMF as Trustee) — Key terms - Purpose and context: - The Fund has established the Resilience and Sustainability Trust (the “Trust”) to provide loans under the Resilience and Sustainability Facility of the Trust (the “RSF”). - The Kingdom of Spain (“Spain”) committed to contribute to the Loan Account, the Deposit Account and the Reserve Account of the Trust in accordance with the RST Instrument. - Amount of the Deposit: - The Contributor shall make a deposit of an SDR denominated amount equivalent to Euro 305,000,000 with the Deposit Account of the Trust (the “Original Amount of the Deposit”). - This SDR-denominated amount will be determined at the exchange rate for the euro in terms of the SDR established by the Fund pursuant to Article XIX, Section 7(a) as of the second (Fund) business day before the value date of the transfer by the Contributor of its contribution to the Reserve Account under the Reserve Contribution Agreement. - Denomination and timing: - The Deposit shall be denominated in SDRs. - The Deposit shall be made in SDRs. - The Deposit shall be made promptly on or after the effectiveness of this Deposit Agreement. - Maturity: - The Deposit shall mature on November 30, 2050 (the “Maturity Date”). - Investment strategy and risk disclosure: - Resources from the Deposit shall be invested by the Trustee in accordance with guidelines adopted by the Trustee pursuant to Section VI, paragraph 4(a) of the RST Instrument. - The assets of the Deposit Account are exposed to market and credit risk which could result in potential losses to the Original Amount of the Deposit. - Notional Value: - The Trustee shall calculate the Notional Value of the Deposit based on the Original Amount of the Deposit and subsequently any attributed investment earnings or losses, interest payments made to the Contributor pursuant to paragraph 6, and transfers pursuant to paragraphs 8, 9, 10 or 11 or pursuant to Section VI, paragraphs 1(c) and 4(b)(2) of the RST Instrument. - Interest on the Deposit: - The Trustee shall pay the Contributor interest on the Original Amount of the Deposit less any amounts repaid or transferred under specified paragraphs, at the SDR interest rate established by the Fund pursuant to Article XX, Section 3. - Interest shall accrue daily and shall be paid promptly on a quarterly basis after January 31, April 30, July 31 and October 31 of each year. - Any payment of interest shall be limited to the Notional Value of the Deposit. - Following any full repayment of the Deposit in accordance with paragraphs 7 and 9, all remaining interest shall be paid to the Contributor at the end of the Fund financial quarter in which repayment was made. - Repayment upon Maturity: - As soon as practicable following the Maturity Date, the Trustee shall repay the Deposit. - Repayment amount shall be the lower of: (a) the Original Amount of the Deposit less any amount(s) repaid or transferred as specified, and (b) the Notional Value of the Deposit. - To the extent any transfers are received in the Deposit Account pursuant to Section VI, paragraph 1(c) after the Maturity Date, the Trustee shall promptly repay to the Contributor any amounts received that are attributable to the Deposit. - Encashment (Contributor early repayment right): - The Contributor may seek early repayment of all or part of the Deposit (the “Encashed Deposit”) pursuant to Section VI, paragraph 5(e) of the RST Instrument if the Contributor represents that Spain’s balance of payments and reserve position justifies early repayment and the Trustee, having given the representation the overwhelming benefit of any doubt, agrees. - The Encashed Deposit amount may not exceed the Original Amount of the Deposit less any amounts repaid or transferred as specified, or the Notional Value of the Deposit, whichever is lower. - The Contributor agrees to restore an amount equivalent to the Encashed Deposit to the Deposit Account as soon as practicable in light of favorable developments in Spain’s balance of payments and reserve position, evidenced by the inclusion of Spain’s currency in the Fund’s Financial Transactions Plan. - Early Repayment by Trustee: - The Trustee may repay all or part of the Deposit at any time in advance of the Maturity Date; repayment amount may not exceed the Original Amount of the Deposit less any amounts repaid or transferred as specified, or the Notional Value of the Deposit, whichever is lower. - The Trustee will give notice to the Contributor at least five (5) Fund business days prior to any advance repayment. - If Spain does not provide its consent to a proposed amendment to the RST Instrument as required, the Contributor may request return of a portion of the Original Amount of the Deposit based on the ratio of remaining uncommitted loan resources to total loan commitments to the Trust under the Borrowing Agreement, subject to the same limits. - Liquidation: - If the Trustee decides to wind up the operations of the Trust, the Trust shall repay the Deposit to the Contributor at the Original Amount of the Deposit less any amounts repaid or transferred as specified, or the Notional Value of the Deposit, whichever is lower, in accordance with liquidation procedures under the RST Instrument. - Transfer of Claims (Deposit Account): - The Contributor may transfer at any time all or part of any claim on the Deposit Account to eligible members, central banks/fiscal agencies, or official SDR holders as specified. - The transferee acquires all rights of the Contributor with respect to repayment and interest, with early repayment rights under paragraph 8 limited to transferees that meet specified conditions regarding membership and balance of payments/reserve position. - Modality of Interest Payment and Repayment of the Deposit: - Unless otherwise agreed, payment of interest and repayments of the Deposit shall be made in SDRs. - Payment in SDRs shall be made by crediting Spain’s holdings account in the Special Drawing Rights Department; if the due date is not a business day of the Fund, payment shall be made on the following business day for the Fund. - Payment in currencies shall be made to an account as agreed between the Trustee and the Contributor; if the due date is not a business day of the Fund or the Target system or the domestic markets of the non-euro currencies included in the SDR basket, payment shall be made on the following business day for the Fund, the Target system and the domestic markets of the non-euro currencies included in the SDR basket. *International Monetary Fund — Borrowing Agreement and Deposit Agreement provisions between Banco de España and the IMF (Resilience and Sustainability Trust).* ### 13. Exchange Rate. Unless otherwise agreed between the Contributor and the Trustee, all ### 13. Exchange Rate ### Exchange rate rule for Deposit Agreement - All transfers, exchanges, payments of interest, or repayments of the Deposit under this Deposit Agreement in currencies shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund 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 (Fund) business day before the value date of the transfer, exchange, payment of interest, or repayment. ### SDR basket change and timing - If the Fund changes the currency composition or currency weights of the SDR basket, all transfers, exchanges, payments of interest, and repayments of the Deposit two or more (Fund) business days after the effective date of the change shall be made on the basis of the new SDR basket. ### Dispute resolution - Any question arising under this Deposit Agreement shall be settled by mutual agreement between the Contributor and the Trustee. ### Execution and effectiveness - The Deposit Agreement may be executed in one or more duplicate counterparts, each of which shall be deemed an original, and which together shall constitute one and the same instrument. - The Deposit Agreement shall become effective on the last date written below. --- ### Attachment VIII — Reserve Contribution Agreement (Ministry for the Economy and Digitalization of Spain and the IMF as Trustee of the RST) ### Purpose and parties - The Reserve Contribution Agreement implements Spain’s commitment to contribute financial resources to the Reserve Account of the Resilience and Sustainability Trust (the “Trust”) established by the Fund to provide loans under the Resilience and Sustainability Facility (the “RSF”). ### Key terms and amounts - Amount: The Contributor shall provide a contribution of an SDR-denominated amount equivalent to Euro 30,500,005 (the “Contribution”), with the SDR-denominated amount to be determined pursuant to paragraph 9 as of the second (Fund) business day before the value date of the transfer of the Contribution to the Reserve Account of the Trust. - Denomination and media: - (a) The Contribution shall be denominated in SDRs. - (b) The Contribution shall be made in euros. - (c) The Contributor shall transfer the Contribution to an account specified by the Trustee on or promptly after the effectiveness of this Reserve Contribution Agreement. ### Investment strategy and risks - The resources in the Reserve Account shall be invested by the Trustee in accordance with the guidelines adopted by the Trustee pursuant to Section V, paragraph 3(a) of the RST Instrument. - The assets of the Reserve Account are exposed to the market and credit risk which could result in potential losses to the Contributor’s share in the resources of the Reserve Account. ### Remuneration and share - No remuneration shall be paid to the Contributor in respect of the Contribution. - The Contributor shall have a proportional share in the Reserve Account, based on its Contribution, any resources transferred from the Deposit Account and attributed to Banco de España’s contribution to the Deposit Account pursuant to Section VI, Paragraph 5(d) of the RST Instrument, and attributed investment earnings or losses in the Reserve Account. ### Transferability - The Contributor may transfer at any time all or part of its share in the Reserve Account to: - any member of the Fund that is a participant in the Fund’s SDR Department, - any member’s central bank or other fiscal agency designated by such a member for purposes of Article V, Section 1 of the Fund’s Articles of Agreement, - any official entity prescribed as a holder of SDRs pursuant to Article XVII, Section 3 of the Fund’s Articles of Agreement. - The transferee shall acquire all the rights of the Contributor under this Reserve Contribution Agreement with respect to the transferred amount. ### Distribution and liquidation - (a) The Contribution shall have no fixed maturity. - (b) Upon the liquidation of the Trust, the Trustee shall distribute to the Contributor its share in the resources of the Reserve Account of the Trust in accordance with Section V, paragraph 4(c) of the RST Instrument. - (c) Prior to liquidation and following the Trustee’s decision to distribute a portion of the balances in the Reserve Account in accordance with Section V, paragraph 4(d) of the RST Instrument, the Contributor shall receive part of this distribution in proportion to its share in the Reserve Account. - (d) If Spain does not provide its consent to a proposed amendment to the RST Instrument as required under Section X, paragraph 2(a) of the RST Instrument, the Contributor may request the return of a portion of its share in the Reserve Account based on the ratio of remaining uncommitted loan resources to total loan commitments to the Trust under the Borrowing Agreement in accordance with Section X, paragraph 2(b) of the RST Instrument. ### Modality of distribution - (a) Unless otherwise agreed between the Trustee and the Contributor, any distribution to the Contributor under this Reserve Contribution Agreement shall be made in SDRs. - (b) Distribution in SDRs shall be made by crediting Spain’s holdings account in the Special Drawing Rights Department on a business day of the Fund. - (c) Distribution in currencies shall be made to an account as agreed between the Trustee and the Contributor and on the business day of the Fund, the Target system and the domestic markets of the non-euro currencies included in the SDR basket. ### Exchange rates - Unless otherwise agreed between the Trustee and the Contributor, all transfers, exchanges, and distribution in currencies shall be made at the exchange rates for the relevant currencies in terms of the SDR established by the Fund 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 (Fund) business day before the value date of the transfer, exchange, or payment. ### SDR basket change and timing (Reserve Contribution Agreement) - If the Fund changes the currency composition or currency weights of the SDR basket, all transfers, exchanges, and distribution made two or more (Fund) business days after the effective date of the change shall be made on the basis of the new SDR basket. ### Dispute resolution and effectiveness - Any question arising under this Reserve Contribution Agreement shall be settled by mutual agreement between the Contributor and the Trustee. - The Reserve Contribution Agreement may be executed in one or more duplicate counterparts, each of which shall be deemed an original, and which together shall constitute one and the same instrument. - The Reserve Contribution Agreement shall become effective on the last date written below. *International Monetary Fund — ppea2023003 (excerpts provided in the content unit)* --- _Source: https://www.imf.org/-/media/files/publications/pp/2023/english/ppea2023003.pdf_