## INTRODUCTION

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---

### Background and Renewal Timeline
- The Fund’s decision on the New Arrangements to Borrow (the “NAB Decision”) is subject to renewals not later than 12 months before the end of each NAB period.
- The NAB Decision was last renewed and modified in January 2020.
- The current NAB period became effective on January 1, 2021 and is set to expire on December 31, 2025.
- Pursuant to paragraph 19(b) of the NAB Decision, the Executive Board is to take a decision on the renewal no later than twelve months before the end of the current NAB period, i.e., by December 31, 2024.
- Once a decision on renewal is taken, the new NAB period would become effective on January 1, 2026.
- Any participant may advise the Fund not less than six months before the end of the current NAB period, i.e., by June 30, 2025, that it will withdraw its adherence to the NAB Decision pursuant to Paragraph 19(b). In the absence of such a notice, a participant shall be deemed to continue to adhere to the decision as renewed.

### Review of NAB Functioning and Impact of the Sixteenth Review
- Activation history and liquidity:
  - The NAB has not been activated during the current NAB period.
  - The most recent activation of the NAB was terminated on February 25, 2016.
  - There are no outstanding commitments financed by NAB resources.
  - Outstanding NAB claims and interest from earlier activations were fully repaid by early May 2024.
  - Since the start of the current NAB period in 2021, the Fund’s Forward Commitment Capacity (FCC) has remained below pre-pandemic levels but well above SDR 100 billion.
  - As a practical matter, the Managing Director will not generally propose an activation of the NAB unless the FCC excluding borrowed resources is expected to drop below SDR 100 billion.
- Participant changes and NAB size:
  - Greece adhered to the NAB Decision on September 20, 2022.
  - Ireland adhered to the NAB Decision on March 21, 2023.
  - These accessions raised the number of NAB participants to 40 and brought the total size of the NAB to SDR 364.4 billion.
  - Staff has not received an official indication of interest from any potential new participant and does not propose additions to the current list of NAB participants.
- Sixteenth Review and resource mix:
  - On December 15, 2023, the Board of Governors concluded the Sixteenth Review and approved an increase of quotas by 50 percent.
  - BoG Resolution No. 79-1 envisages maintaining the Fund’s current lending capacity through a combination of the approved increase in quota resources and reduced reliance on borrowed resources.
  - When the Sixteenth Review quota increases become effective, the Fund will reduce its reliance on borrowed resources through a reduction or “rollback” in the size of the NAB as well as the expiration of bilateral borrowing.
  - A proposed rollback of NAB credit arrangements was approved by the Executive Board on January 30, 2024 and is currently under consideration by NAB participants; consents are needed by November 15, 2024.
  - The terms of the Fund’s 42 bilateral borrowing agreements (BBAs) are set to expire at end-2024; the Executive Board approved a proposal on March 25, 2024 to amend the BBAs to extend their terms, subject to BBA creditor consents, as transitional arrangements.
  - The proposed NAB rollback, together with quota increases and expiration/amendment of BBAs, would maintain the Fund’s lending capacity; general effectiveness of quota increases and NAB rollback would be synchronized overall and for each member.
- Activation procedures:
  - Given no activations since 2021 and the 2016 finding that activation procedures functioned well, staff does not propose modifications to the NAB activation procedures or other aspects of NAB functioning.

### Proposed Renewal and Modifications
- Renewal proposal:
  - Staff proposes renewal of the NAB Decision for five years until end-2030 (i.e., new NAB period effective January 1, 2026 and expiring December 31, 2030).
  - Rationale: NAB’s role as a standing backstop for quota resources, high uncertainty and elevated systemic risks, diminished policy buffers and lower medium-term growth prospects, and consistency with the Board of Governors’ Resolution on the Sixteenth Review to maintain lending capacity.
- Proposed limited modifications:
  - Simplified replacement procedure for participants:
    - Add a new paragraph 3(d) allowing a member that has adhered to the decision to request replacement by an official institution of that member, or allowing a participating official institution to request replacement by the member itself or another official institution of the same member.
    - No change in a participant’s credit arrangement may be effected pursuant to paragraph 3(d) except in accordance with paragraph 4(b).
    - If approved by the Fund, following consultations with participants, the replacement institution shall deposit an instrument confirming it has taken all necessary legal steps to step into the credit arrangement and on deposit shall replace and assume all rights and obligations of the prior participant as of the date of deposit; Annex I shall be updated accordingly.
    - The requested replacement may not affect the overall size, the relative shares/voting power, or the liquidity of the NAB.
    - The replacement institution would step fully into the financial position of the incumbent, keeping its NAB credit arrangement amount unchanged, and if the NAB had been activated, drawings could be made on the replacement institution.
    - Any replacement under this procedure would need to be approved by the Executive Board after consultation with NAB participants.
    - Example: Mexico has expressed interest in having Banco de México replace Mexico as participant in the NAB; if the proposal is approved by the Board, the new procedure would enter into effect on January 1, 2026, and Mexico could request to be replaced by Banco de México following the described procedures.
  - Update to renewal review language:
    - Replace the reference in Paragraph 19(a)(ii) to “the impact of the Sixteenth Review on the overall size of quotas” with “the impact of any changes in the overall size of quotas” to avoid future clause changes during NAB renewals.
  - Update to NAB–BBA relationship paragraph:
    - Update Paragraph 21 to refer to 2026–2030 instead of 2021–2025.
  - Deletion of obsolete transitional provision:
    - Delete Paragraph 23, which discusses transitional arrangements related to the 2020 NAB reform.

### Conclusion and Staff Recommendation
- Staff recommends that the Executive Board approve the proposed renewal of, and modifications to, the NAB Decision.
- If approved, the renewal and modifications will take effect on January 1, 2026.
- Procedural next steps and participant options:
  - Pursuant to paragraph 19(b) of the NAB Decision, any participant may advise the Fund no less than six months before the end of the period (i.e., June 30, 2025) that it will withdraw its adherence to the NAB Decision as renewed.
  - In the absence of such notice, a participant shall be deemed to continue to adhere to the NAB Decision as renewed.

### Appendix I. Redlines over the NAB Decision — Key Provisions and Annex I
- Preamble:
  - Purpose: enable the International Monetary Fund (the “Fund”) to fulfill more effectively its role in the international monetary system by having a number of countries with financial capacity provide resources to the Fund up to specified amounts in accordance with the terms and conditions of this decision.
  - Scope: credit arrangements under this decision are quota-supplementing and are to be drawn upon only "when quota resources need to be supplemented in order to forestall or cope with an impairment of the international monetary system."
  - Legal basis: terms and conditions adopted under Article VII, Section 1(i) of the Fund’s Articles of Agreement.
- Selected operational and legal provisions preserved in redlines (exact terminology retained):
  - Definitions and special provisions for HKMA (Paragraph 1).
  - Credit arrangements coverage and currency rules (Paragraph 2).
  - Adherence, new participant admission, and replacement mechanics (Paragraph 3).
  - Changes in amounts of credit arrangements, unanimity/85 percent thresholds (Paragraph 4).
  - Activation period proposal, thresholds, 6-month duration limit, and 85 percent voting rule (Paragraph 5).
  - Resource mobilization plans, allocation norms to achieve equal proportion relative to credit arrangements, and exclusion criteria based on financial transactions plan (Paragraph 6).
  - Special calls procedures outside paragraphs 5 and 6 (Paragraph 7).
  - Nature of participant claims, Notes issuance, and GTC amendment thresholds (Paragraph 8).
  - Interest rate determination tied to combined market interest rate for SDR holdings and quarterly interest payment schedule (Paragraph 9).
  - Use of borrowed currency consistent with Fund policies under Article V, Sections 3 and 7 (Paragraph 10).
  - Repayment mechanics, ten-year standard repayment, early repurchase and early repayment provisions, and currency/instrument options (Paragraph 11).
  - Rates of exchange valuation rule referencing Rule O-2 (Paragraph 12).
  - Transferability of claims, permitted transferees, and transfer mechanics including prohibitions on derivatives and participation interests (Paragraph 13).
  - Notices, amendment and withdrawal procedures, suspension and liquidation rules, interpretation clauses (Paragraphs 14–20).
  - Relationship with bilateral and other borrowing arrangements, activation threshold linked to modified FCC below SDR 100 billion, and exceptions (Paragraphs 21–22).
  - Transitional arrangements for pre-amendment bilateral borrowing claims (Paragraph 23) — proposed deletion as obsolete.
- Annex I — Participants and amounts of credit arrangements (in Millions of SDRs):
  - Australia 4,440.90
  - Austria 3,636.98
  - Banco Central de Chile 1,381.94
  - Banco de Portugal 1,567.00
  - Bangko Sentral ng Pilipinas 680.00
  - Bank of Israel 680.00
  - Belgium 7,988.66
  - Brazil 8,881.82
  - Canada 7,747.42
  - China 31,720.76
  - Cyprus 680.00
  - Danmarks Nationalbank 3,259.52
  - Deutsche Bundesbank 25,780.04
  - Finland 2,267.76
  - France 18,958.32
  - Greece 1,681.20
  - Hong Kong Monetary Authority 680.00
  - India 8,881.82
  - Ireland 1,915.94
  - Italy 13,797.04
  - Japan 67,017.00
  - Korea 6,689.64
  - Kuwait 341.29
  - Luxembourg 986.24
  - Malaysia 680.00
  - Mexico 5,075.32
  - National Bank of Poland 2,570.80
  - Netherlands 9,189.60
  - New Zealand 680.00
  - Norway 3,933.38
  - Russian Federation 8,881.82
  - Saudi Arabia 11,305.48
  - Singapore 1,297.10
  - South Africa 680.00
  - Spain 6,810.28
  - Sveriges Riksbank 4,511.36
  - Swiss National Bank 11,081.32
  - Thailand 680.00
  - United Kingdom 18,958.32
  - United States 56,404.94
  - Total 364,401.01
- Annex I footnotes:
  - Current credit arrangements are subject to a minimum of SDR 341.29 million.
  - Changes in credit arrangement amounts were approved by the Executive Board pursuant to Decision No. 17665-(24/11), adopted January 30, 2024; however, credit arrangement amounts will not change unless the conditions for effectiveness set forth in Decision No. 17665-(24/11), are met.

### Annex II — General Terms and Conditions for Notes (high-level summary of substantive terms)
- Issuance and denomination:
  - Notes issued at participant request pursuant to paragraph 8(a) and to transferees pursuant to paragraph 13(k); denominated in the special drawing right.
- Form and custody:
  - Notes issued in book entry form; registered Notes may be issued on request; Fund maintains book entry account recording key fields.
- Interest:
  - Rate equal to the combined market interest rate for SDR holdings or any higher rate agreed between the Fund and participants representing 85 percent of total credit arrangements.
  - Interest accrues daily and is paid as soon as possible after each July 31, October 31, January 31, and April 30.
  - Interest payable in SDRs, holder’s currency if a member, the currency borrowed, freely usable currencies, or other actually convertible currencies with holder agreement.
- Maturity and repayment:
  - Standard maturity of Notes is ten years; exceptions for Notes exchanged for loan claims which carry the loan’s maturity.
  - Repayment by the Fund follows paragraph 11 of the NAB Decision; cancellation rules for Notes upon payment, transfer, or exchange.
- Transferability and prohibitions:
  - Transfers limited to permitted transferees; derivative transactions and transfers of participation interests in Notes are prohibited.
  - Transfer mechanics, registration, price by agreement, reporting obligations, and Fund assistance to arrange transfers are specified.
- Appendix — Form of Registered NAB Note:
  - Form header "REGISTERED NAB NOTE"; fields include Number, SDR amount, Issue Date, Maturity Date; contains promise to pay and transfer/derivative prohibition legend; interest provisions mirror the GTC.

*Source: ppea2024042 - INTRODUCTION (ppea2024042 - INTRODUCTION).*

### INTRODUCTION

### INTRODUCTION

### Background and Renewal Timeline
- The Fund’s decision on the New Arrangements to Borrow (the “NAB Decision”) is subject to renewals not later than 12 months before the end of each NAB period.
- The NAB Decision was last renewed and modified in January 2020.
- The current NAB period became effective on January 1, 2021 and is set to expire on December 31, 2025.
- Pursuant to paragraph 19(b) of the NAB Decision, the Executive Board is to take a decision on the renewal no later than twelve months before the end of the current NAB period, i.e., by December 31, 2024.
- Once a decision on renewal is taken, the new NAB period would become effective on January 1, 2026.
- Any participant may advise the Fund not less than six months before the end of the current NAB period, i.e., by June 30, 2025, that it will withdraw its adherence to the NAB Decision pursuant to Paragraph 19(b). In the absence of such a notice, a participant shall be deemed to continue to adhere to the decision as renewed.

### Review of NAB Functioning and Impact of the Sixteenth Review
- Activation history and liquidity:
  - The NAB has not been activated during the current NAB period.
  - The most recent activation of the NAB was terminated on February 25, 2016.
  - There are no outstanding commitments financed by NAB resources.
  - Outstanding NAB claims and interest from earlier activations were fully repaid by early May 2024.
  - Since the start of the current NAB period in 2021, the Fund’s Forward Commitment Capacity (FCC) has remained below pre-pandemic levels but well above SDR 100 billion.
  - As a practical matter, the Managing Director will not generally propose an activation of the NAB unless the FCC excluding borrowed resources is expected to drop below SDR 100 billion.
- Participant changes and NAB size:
  - Greece adhered to the NAB Decision on September 20, 2022.
  - Ireland adhered to the NAB Decision on March 21, 2023.
  - These accessions raised the number of NAB participants to 40 and brought the total size of the NAB to SDR 364.4 billion.
  - Staff has not received an official indication of interest from any potential new participant and does not propose additions to the current list of NAB participants.
- Sixteenth Review and resource mix:
  - On December 15, 2023, the Board of Governors concluded the Sixteenth Review and approved an increase of quotas by 50 percent.
  - BoG Resolution No. 79-1 envisages maintaining the Fund’s current lending capacity through a combination of the approved increase in quota resources and reduced reliance on borrowed resources.
  - When the Sixteenth Review quota increases become effective, the Fund will reduce its reliance on borrowed resources through a reduction or “rollback” in the size of the NAB as well as the expiration of bilateral borrowing.
  - A proposed rollback of NAB credit arrangements was approved by the Executive Board on January 30, 2024 and is currently under consideration by NAB participants; consents are needed by November 15, 2024.
  - The terms of the Fund’s 42 bilateral borrowing agreements (BBAs) are set to expire at end-2024; the Executive Board approved a proposal on March 25, 2024 to amend the BBAs to extend their terms, subject to BBA creditor consents, as transitional arrangements.
  - The proposed NAB rollback, together with quota increases and expiration/amendment of BBAs, would maintain the Fund’s lending capacity; general effectiveness of quota increases and NAB rollback would be synchronized overall and for each member.
- Activation procedures:
  - Given no activations since 2021 and the 2016 finding that activation procedures functioned well, staff does not propose modifications to the NAB activation procedures or other aspects of NAB functioning.

### Proposed Renewal and Modifications
- Renewal proposal:
  - Staff proposes renewal of the NAB Decision for five years until end-2030 (i.e., new NAB period effective January 1, 2026 and expiring December 31, 2030).
  - Rationale: NAB’s role as a standing backstop for quota resources, high uncertainty and elevated systemic risks, diminished policy buffers and lower medium-term growth prospects, and consistency with the Board of Governors’ Resolution on the Sixteenth Review to maintain lending capacity.
- Proposed limited modifications:
  - Simplified replacement procedure for participants:
    - Proposal to add a new paragraph 3(d) allowing a member that has adhered to the decision to request replacement by an official institution of that member, or allowing a participating official institution to request replacement by the member itself or another official institution of the same member.
    - No change in a participant’s credit arrangement may be effected pursuant to paragraph 3(d) except in accordance with paragraph 4(b).
    - If approved by the Fund, following consultations with participants, the replacement institution shall deposit an instrument confirming it has taken all necessary legal steps to step into the credit arrangement and on deposit shall replace and assume all rights and obligations of the prior participant as of the date of deposit; Annex I shall be updated accordingly.
    - The requested replacement may not affect the overall size, the relative shares/voting power, or the liquidity of the NAB.
    - The replacement institution would step fully into the financial position of the incumbent, keeping its NAB credit arrangement amount unchanged, and if the NAB had been activated, drawings could be made on the replacement institution.
    - Any replacement under this procedure would need to be approved by the Executive Board after consultation with NAB participants.
    - Example: Mexico has expressed interest in having Banco de México replace Mexico as participant in the NAB; if the proposal is approved by the Board, the new procedure would enter into effect on January 1, 2026, and Mexico could request to be replaced by Banco de México following the described procedures.
  - Update to renewal review language:
    - Replace the reference in Paragraph 19(a)(ii) to “the impact of the Sixteenth Review on the overall size of quotas” with “the impact of any changes in the overall size of quotas” to avoid future clause changes during NAB renewals.
  - Update to NAB–BBA relationship paragraph:
    - Update Paragraph 21 to refer to 2026–2030 instead of 2021–2025.
  - Deletion of obsolete transitional provision:
    - Delete Paragraph 23, which discusses transitional arrangements related to the 2020 NAB reform.

### Conclusion and Staff Recommendation
- Staff recommends that the Executive Board approve the proposed renewal of, and modifications to, the NAB Decision.
- If approved, the renewal and modifications will take effect on January 1, 2026.
- Procedural next steps and participant options:
  - Pursuant to paragraph 19(b) of the NAB Decision, any participant may advise the Fund no less than six months before the end of the period (i.e., June 30, 2025) that it will withdraw its adherence to the NAB Decision as renewed.
  - In the absence of such notice, a participant shall be deemed to continue to adhere to the NAB Decision as renewed.

*Source: ppea2024042 - INTRODUCTION (ppea2024042 - INTRODUCTION)*

### Appendix I. Redlines over the NAB Decision

### Appendix I. Redlines over the NAB Decision

### Preamble
- Purpose: enable the International Monetary Fund (the “Fund”) to fulfill more effectively its role in the international monetary system by having a number of countries with financial capacity provide resources to the Fund up to specified amounts in accordance with the terms and conditions of this decision.
- Scope: credit arrangements under this decision are quota-supplementing and are to be drawn upon only "when quota resources need to be supplemented in order to forestall or cope with an impairment of the international monetary system."
- Legal basis: terms and conditions adopted under Article VII, Section 1(i) of the Fund’s Articles of Agreement.

### Paragraph 1 — Definitions and Special Provisions for HKMA
- Key defined terms (exact wording preserved):
  - “amount of a credit arrangement” — the maximum amount expressed in special drawing rights that a participant undertakes to make available to the Fund under a credit arrangement.
  - “available commitment” — a participant’s credit arrangement less any drawn and outstanding balances.
  - “borrowed currency” or “currency borrowed” — currency transferred to the Fund’s account under a credit arrangement.
  - “call” — a notice by the Fund to a participant to make a transfer under its credit arrangement to the Fund’s account.
  - “credit arrangement” — an undertaking to provide resources to the Fund on the terms and conditions of this decision.
  - “currency actually convertible” — currency included in the Fund’s financial transactions plan for transfers.
  - “drawer” — a member that purchases borrowed currency from the General Resources Account of the Fund.
  - “indebtedness of the Fund” — the amount the Fund is committed to repay under a credit arrangement.
  - “member” — a member of the Fund.
  - “participant” — a participating member or a participating institution.
  - “participating institution” — an official institution of a member that has entered into a credit arrangement with the Fund with the consent of the member.
  - “participating member” — a member that has entered into a credit arrangement with the Fund.
- Special treatment of the Monetary Authority of Hong Kong (the “HKMA”):
  - HKMA regarded as an official institution of the member whose territories include Hong Kong, provided that:
    - (i) loans by the HKMA and payments by the Fund to the HKMA shall be made in the currency of the United States of America, unless another currency is agreed.
    - (ii) references to balance of payments and reserve position in paragraphs 5(c), 6(b), 6(c), 7(a), and 11(e) refer to Hong Kong; HKMA is not eligible to vote on activation proposals under paragraph 5(c), included in resource mobilization plan under paragraph 6(b), or subject to calls under paragraph 7(a), and shall be excluded from calls under paragraph 6(c), if HKMA notifies the Fund that Hong Kong’s present and prospective balance of payments and reserve position does not allow it to meet calls.
    - (iii) HKMA has the right to request early repayment under paragraph 13(c) with respect to claims transferred to the HKMA if, at the time of transfer, Hong Kong’s balance of payments position is, in the opinion of the Fund, sufficiently strong to justify such a right.

### Paragraph 2 — Credit Arrangements (coverage and currency)
- A member or institution adhering undertakes to provide resources up to the amount in special drawing rights set forth in Annex I; Annex I may be amended to reflect paragraphs 3(b), 4, 15(b), 16, 17, and 19(b).
- Resources shall be made in the currency of the participant except as set forth in paragraph 1(b)(i) or otherwise agreed; use of another member’s currency requires concurrence of that member.

### Paragraph 3 — Adherence (new participants and replacement)
- New participant admission:
  - Members/institutions listed in Annex I as new participants may adhere per paragraph 3(c).
  - Members/institutions not listed may apply at any time; adherence requires Fund and participants representing 85 percent of total credit arrangements to agree.
  - When applying under paragraph 3(b), the applicant must specify the amount in special drawing rights, not less than the smallest participant’s credit arrangement.
  - Admission of a new participant triggers a proportional reduction in credit arrangements of existing participants whose credit arrangements are above the smallest, equal in aggregate to the new participant’s credit arrangement less any increase in total credit arrangements under paragraph 4(a), subject to minimum amounts in Annex I.
- Adherence mechanics:
  - Adherence accomplished by depositing an instrument with the Fund; participant status effective on deposit date.
  - A participant may request replacement by an official institution of the same member (or vice versa); such change requires approval and compliance with paragraph 4(b) and deposit of instrument by the replacement participant, upon which Annex I is updated.

### Paragraph 4 — Changes in Amounts of Credit Arrangements
- Total credit arrangements increase:
  - When a new participant authorized under paragraph 3(b) adheres, total credit arrangements may be increased by the Fund with agreement of participants representing 85 percent of total credit arrangements; the increase shall not exceed the new participant’s credit arrangement.
- Individual credit arrangement changes:
  - Amounts may be reviewed and changed with agreement of the Fund and participants representing 85 percent of total credit arrangements, including each participant affected.
  - This provision may be amended only with consent of all participants.

### Paragraph 5 — Activation Period (proposal, thresholds, duration, and approval)
- Trigger and proposal:
  - Managing Director may propose establishment of an activation period when resources from the General Resources Account need supplementation "to forestall or cope with an impairment of the international monetary system," after consultations with Executive Directors and participants.
- Activation period powers:
  - During an activation period the Fund may (i) make commitments under Fund arrangements for which it may call participants, and (ii) fund outright purchases by making calls.
- Duration and limits:
  - An activation period shall not exceed 6 months.
  - The amount covered by calls for commitments and purchases shall not exceed the maximum amount specified in the proposal.
- Required proposal information (to be included and updated quarterly during activation period):
  - (i) overall size of possible Fund arrangements on which discussions are advanced;
  - (ii) balance between arrangements expected to be drawn upon and those expected to be precautionary;
  - (iii) additional financing needs that may arise during the proposed activation period, in the Managing Director’s opinion;
  - (iv) mix of quota and NAB resources for purchases from the General Resources Account in the period following approval.
- Decision mechanics:
  - If participants are not unanimous, decision on Managing Director’s proposal decided by poll; favorable decision requires an 85 percent majority of total credit arrangements of participants eligible to vote.
  - A participant is not eligible to vote if, based on present and prospective balance of payments and reserve position, the member is not included in the financial transactions plan for transfers of its currency at the time of the decision.
  - An activation period becomes effective only if accepted by participants per paragraph 5(b) and approved by the Executive Board.

### Paragraph 6 — Resource Mobilization Plans and Calls (allocation and exclusions)
- Purpose and frequency:
  - Resource mobilization plans fund outright purchases during activation periods and commitments approved during activation periods; plans are approved by the Executive Board in conjunction with the financial transactions plan for the General Resources Account.
  - Normally prepared quarterly for periods where NAB is activated and for periods up to six months where NAB is not activated.
- Plan content:
  - Specify for each participant the maximum amount for which calls may be made during the applicable period.
  - Executive Board may amend plans at any time to change maximum amounts and period for calls.
  - Allocation norm: plan shall normally establish allocation that would result in available commitments of participants being of equal proportion relative to their credit arrangements.
- Exclusion criteria:
  - A participant shall not be included in the resource mobilization plan when, based on its present and prospective balance of payments and reserve position, the member is not included and is not being proposed by the Managing Director to be included in the list of countries in the financial transactions plan for transfers of its currency.
  - No call shall be made on a participant included in the resource mobilization plan if, at the time of such call, the member’s currency is not being used in transfers under the financial transactions plan because of the member’s balance of payments and reserve position.
- Call execution:
  - Calls during the period of a resource mobilization plan made by Managing Director with due regard to achieving available commitments of equal proportion relative to credit arrangements.
  - When the Fund makes a call, the participant shall promptly make the transfer in accordance with the call.

### Paragraph 7 — Procedures for Special Calls
- Calls under paragraph 11(e):
  - May be made at any time with due regard to achieving available commitments of equal proportion relative to credit arrangements; no such call shall be made on a participant who is not included or proposed to be included in the financial transactions plan, or whose currency is not being used in transfers under the plan because of balance of payments and reserve position.
  - Calls under paragraph 7(a) are not subject to procedures in paragraph 5 or paragraph 6.
- Calls under paragraph 23:
  - May be made at any time and are not subject to procedures in paragraph 5 or paragraph 6.
- When the Fund makes such a call, the participant shall promptly make the transfer.

### Paragraph 8 — Nature and Evidence of Indebtedness
- Form of claim:
  - A participant’s claim arising from calls is a loan to the Fund.
  - At participant’s request, the Fund shall issue and the participant may purchase one or more promissory notes (“Note” or “Notes”) up to the amount of any call; Notes have the same substantive terms as loans and are subject to the General Terms and Conditions for NAB Notes (the “GTC”) in Annex II.
- Amendment of GTC:
  - GTC may be amended by decision of the Fund with agreement of participants representing 85 percent of total credit arrangements; any amended GTC shall be consistent with this decision and apply upon effectiveness to all outstanding Notes.
- Evidence instruments:
  - When claim is in loan form, Fund shall issue instruments evidencing indebtedness at participant’s request; form agreed between Fund and participant; upon repayment instrument returned for cancellation or substituted if partially repaid.
  - Notes shall be issued in book entry form; upon participant request, Fund shall issue a registered Note substantially in the form set out in Appendix to the GTC; full repayment returns Note for cancellation; partial repayment returns Note and substitutes a new Note for remainder with same maturity date.

### Paragraph 9 — Interest
- Interest rate:
  - Fund shall pay interest at a rate equal to the combined market interest rate computed by the Fund from time to time for determining the rate it pays on holdings of special drawing rights, or any such higher rate agreed between the Fund and participants representing 85 percent of total credit arrangements.
- Accrual and payment schedule:
  - Interest accrues daily and shall be paid as soon as possible after each July 31, October 31, January 31, and April 30.
- Payment modalities:
  - Interest due to a participant shall be paid, as determined by the Fund in consultation with the participant, in special drawing rights, in the participant’s currency, in the currency borrowed, in freely usable currencies, or, with participant agreement, in other currencies that are actually convertible.

### Paragraph 10 — Use of Borrowed Currency
- Application of Fund policies:
  - Fund’s policies and practices under Article V, Sections 3 and 7 on use of its general resources, including period of use, apply to purchases of currency borrowed under this decision.
- No effect on access:
  - Nothing in this decision affects authority of the Fund with respect to requests for use of its resources by individual members; access determined by Fund policies and practices and does not depend on whether Fund can borrow under this decision.

### Paragraph 11 — Repayment by the Fund
- Standard repayment term:
  - Subject to other provisions of paragraph 11, the Fund, ten years after a transfer by a participant in response to a call, shall repay the participant an amount equivalent to the transfer calculated in accordance with paragraph 12.
- Early repurchase by drawer:
  - If a drawer repurchases earlier than ten years after its purchase, the Fund shall repay participants an equivalent amount during the quarterly period in which the repurchase is made in accordance with paragraph 11(d).
- Currency and instrument options on repayment:
  - Repayment under paragraph 11(a) or 11(c) shall be, as determined by the Fund, in the currency borrowed whenever feasible, in the currency of the participant, in special drawing rights in an amount that does not increase the participant’s holdings of special drawing rights above the limit under Article XIX, Section 4 of the Articles unless the participant agrees to accept special drawing rights above that limit, in freely usable currencies, or, with the agreement of the participant, in other currencies that are actually convertible.
- Early repayment by Fund:
  - Before the ten-year date, the Fund, after consultation with participants, may make repayment in part or in full to one or several participants in accordance with paragraph 11(d).
  - The Fund shall have the option to make repayment under paragraph 11(b) in the participant’s currency, in the currency borrowed, in special drawing rights in an amount that does not increase the participant’s holdings of special drawing rights above the limit under Article XIX, Section 4...

*Appendix I. Redlines over the NAB Decision*

### Section 4 of the Articles unless the participant agrees to accept special drawing rights above that

### Section 4 of the Articles unless the participant agrees to accept special drawing rights above that

### Repayments, allocation, and early repayment (Paragraph 11)
- Repayments related to purchases of currency borrowed under this decision:
  - The Fund shall promptly repay an equivalent amount to participants whenever a reduction in the Fund’s holdings of a drawer’s currency is attributed to a purchase of currency borrowed under this decision (paragraph 11(c)).
  - If Fund resources were used to finance a reserve tranche purchase by a drawer and the Fund’s holdings of the drawer’s currency not subject to repurchase are reduced due to net sales during a quarterly period, the Fund shall repay at the beginning of the next quarterly period an amount equivalent to that reduction to participants, up to the amount of the reserve tranche purchase (paragraph 11(c)).
- Allocation of repayments:
  - Repayments under paragraphs 11(a) (second sentence), 11(b), and 11(c) shall be allocated among participants with due regard to the objective in paragraph 6(a) of achieving available commitments of participants that are of equal proportion relative to their credit arrangements (paragraph 11(d)).
  - For each participant, repayments shall be applied first to the longest outstanding claim under its credit arrangement (paragraph 11(d)).
  - If repayment is to be made on a transferred claim, repayment shall be made to the transferee (paragraph 11(d)).
- Early repayment on balance of payments grounds:
  - Before the date prescribed in paragraph 11(a), a participant may give notice representing a balance of payments need for repayment of part or all of the Fund’s indebtedness and request such repayment (paragraph 11(e)).
  - The participant seeking repayment shall consult with the Managing Director and other participants; the Fund shall give the overwhelming benefit of any doubt to the participant’s representation (paragraph 11(e)).
  - Repayment shall be made promptly after consultation in freely usable currencies or in special drawing rights, as determined by the Fund, or, with the participant’s agreement, in currencies of other members that are actually convertible (paragraph 11(e)).
  - If holdings of the necessary currencies are not wholly adequate, the Managing Director shall make calls on individual participants to provide necessary balances under their credit arrangements subject to the limit of their available commitments (paragraph 11(e)).
  - At the time of such call, and if requested by the participant seeking early repayment:
    - (i) a participant providing balances that are not balances of a freely usable currency shall ensure such balances can be exchanged for a freely usable currency of its choice; and
    - (ii) a participant providing balances that are balances of a freely usable currency shall collaborate with the Fund and other members to enable such balances to be exchanged for another freely usable currency (paragraph 11(e)).
- Restoration of callable amounts:
  - When a repayment is made on a claim arising from a call under this decision, the amount that can be called for under the credit arrangement of the participant under which the claim arose as a result of a call under this decision shall be restored pro tanto (paragraph 11(f)).
- Discharge by transfer of SDRs:
  - Unless otherwise agreed between the Fund and a participating institution, the Fund shall be deemed to have discharged its obligations to make repayment under paragraph 11 or to pay interest under paragraph 9 if the Fund transfers an equivalent amount in special drawing rights to the member in which the participating institution is established (paragraph 11(g)).

### Rates of exchange (Paragraph 12)
- Value calculation:
  - The value of any transfer shall be calculated as of the date of the dispatch of the instructions for the transfer (paragraph 12(a)).
  - The calculation shall be made in terms of the special drawing right in accordance with Article XIX, Section 7(a) of the Articles, and the Fund shall be obliged to repay an equivalent value (paragraph 12(a)).
- Valuation method:
  - For all purposes of this decision, the value of a currency in terms of the special drawing right shall be calculated by the Fund in accordance with Rule O-2 of the Fund’s Rules and Regulations (paragraph 12(b)).

### Transferability of claims (Paragraph 13)
- General restriction:
  - No participant or non-participant holder may transfer all or any part of its claim to repayment under a credit arrangement except (i) in accordance with paragraph 13 or (ii) with the prior consent of the Fund and on such terms and conditions as the Fund may approve (paragraph 13(a)).
- Permitted transferees:
  - Claims may be transferred at any time to a participant or to a non-participant that is either:
    - (i) a member of the Fund,
    - (ii) the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1 of the Articles (“other fiscal agency”), or
    - (iii) an official entity prescribed as a holder of special drawing rights pursuant to Article XVII, Section 3 of the Articles (paragraph 13(b)).
- Terms on transfer:
  - As from the value date of the transfer, the transferred claim shall be held by the transferee on the same terms and conditions as claims originating under its credit arrangement (for transferees that are participants) or as the claim was held by the transferor (for transferees that are non-participants), except:
    - (i) The transferee may request early repayment on balance of payments grounds under paragraph 11(e) only if the transferee is a member, or institution of a member, whose balance of payments and reserve position at the time of transfer is considered sufficiently strong for its currency to be usable in transfers under the Fund’s financial transactions plan;
    - (ii) If the transferee is a non-participant, references to the participant’s currency shall be deemed to refer:
      - (A) if the transferee is a member, to the transferee’s currency;
      - (B) if the transferee is an institution of a member, to the currency of that member; and
      - (C) in other cases, to a freely usable currency as determined by the Fund;
    - (iii) Claims transferred shall be considered drawn balances of the first transferor participant for purposes of determining the available commitment under its credit arrangement, and claims obtained by a participant under a transfer shall not be considered drawn balances of the transferee for purposes of determining the available commitment under its credit arrangement (paragraph 13(c)).
- Price and notification:
  - The price for the claim transferred shall be as agreed between the transferee and the transferor (paragraph 13(d)).
  - The transferor shall inform the Fund promptly of the claim being transferred, the name of the transferee, the amount, the agreed price, and the value date of the transfer (paragraph 13(e)).
- Registration and effectiveness:
  - The Fund shall register the transfer and the transferee shall become the holder of the claim if the transfer is in accordance with the terms and conditions of this decision; the transfer shall be effective as of the value date agreed between the parties (paragraph 13(f)).
- Notices for non-participant transferees:
  - Notice to or by a transferee that is a non-participant shall be in writing or by rapid means and given to or by the fiscal agency designated by the transferee if the transferee is a member, or to or by the transferee directly if not a member (paragraph 13(g)).
- Interest on transferred claims:
  - If transfer occurs during a quarterly period as described in paragraph 9(b), the Fund shall pay interest to the transferee on the amount of the claim transferred for the whole of that period (paragraph 13(h)).
- Discharge by SDR transfer for certain transferees:
  - Unless otherwise agreed, the Fund shall be deemed to have discharged obligations to make repayment in SDRs in accordance with paragraph 11 or to pay interest in SDRs under paragraph 9 if the Fund transfers an equivalent amount in SDRs to the account of the member in which the institution is established (paragraph 13(i)).
- Assistance and exchanges:
  - If requested, the Fund shall assist in seeking to arrange transfers (paragraph 13(j)).
  - The transferee may request at time of transfer that a loan claim be exchanged by the Fund for a Note on the same substantive terms subject to the GTC, or that a Note be exchanged for a loan claim on the same substantive terms (paragraph 13(k)).
- Prohibitions:
  - Derivative transactions in respect of any claim under this decision, and transfer of participation interests in any claim, are prohibited (paragraph 13(l)).

### Notices (Paragraph 14)
- Form and addressees:
  - Notice to or by a participating member shall be in writing or by rapid means and given to or by the fiscal agency of the participating member designated in accordance with Article V, Section 1 and Rule G-1 of the Fund’s Rules and Regulations (paragraph 14).
  - Notice to or by a participating institution shall be in writing or by rapid means and given to or by the participating institution (paragraph 14).

### Amendment and withdrawal of adherence (Paragraphs 15–16)
- Amendment procedure:
  - Except as provided in paragraphs 4(b), 15(b), and 16, this decision may be amended during the period prescribed in paragraph 19(a) and any subsequent renewal periods only by a decision of the Fund with the concurrence of participants representing 85 percent of total credit arrangements (paragraph 15(a)).
  - Such concurrence shall not be necessary for modification of the decision on its renewal pursuant to paragraph 19(b) (paragraph 15(a)).
- Right to withdraw after adverse amendment:
  - If an amendment materially affects the interest of a participant that voted against it, that participant may withdraw adherence by giving notice within 90 days from the date the amendment was adopted (paragraph 15(b)).
  - This provision may be amended only with the consent of all participants (paragraph 15(b)).
- Withdrawal of adherence:
  - A participant may withdraw adherence in accordance with paragraph 19(b) but may not withdraw within the period prescribed in paragraph 19(a) except with the agreement of the Fund and all participants (paragraph 16).
  - This provision may be amended only with the consent of all participants (paragraph 16).

### Withdrawal from membership (Paragraph 17)
- Effect on credit arrangement:
  - If a participating member or a member whose institution is a participant withdraws from membership in the Fund, the participant’s credit arrangement shall cease at the same time as the withdrawal takes effect (paragraph 17).
  - The Fund’s indebtedness under the relevant credit arrangement shall be treated as an amount due from the Fund for the purpose of Article XXVI, Section 3 and Schedule J of the Articles (paragraph 17).

### Suspension of exchange transactions and liquidation (Paragraph 18)
- Suspension:
  - The right of the Fund to make calls under paragraphs 6, 11(e), and 23 and the obligation to make repayments under paragraph 11 shall be suspended during any suspension of exchange transactions under Article XXVII of the Articles (paragraph 18(a)).
- Liquidation:
  - In the event of liquidation of the Fund, credit arrangements shall cease and the Fund’s indebtedness shall constitute liabilities under Schedule K of the Articles (paragraph 18(b)).
  - For paragraph 1(a) of Schedule K, the currency in which the liability of the Fund shall be payable shall be first the currency borrowed, then the participant’s currency and finally the currency of the drawer for whose purchases transfers were made by the participants in connection with calls under paragraph 6 (paragraph 18(b)).

### Period and renewal (Paragraph 19)
- Duration:
  - This decision shall continue in existence until December 31, 2025 2030 (paragraph 19(a)).
- Review before renewal:
  - When considering renewal for any period following paragraph 19(a), the Fund and participants shall review the functioning of this decision, in particular:
    - (i) the experience with the procedures for activation; and
    - (ii) the impact of the Sixteenth General Review of Quotas on any change in the overall size of quotas, and shall consult on any possible modifications (paragraph 19(a)).
- Renewal mechanics:
  - The decision may be renewed for such periods and with such modifications, subject to paragraphs 4(b), 15(b), and 16, as the Fund may decide (paragraph 19(b)).
  - The Fund shall adopt a decision on renewal and modification, if any, not later than twelve months before the end of the period prescribed in paragraph 19(a) (paragraph 19(b)).
  - Any participant may advise the Fund not less than six months before the end of the period prescribed in paragraph 19(a) that it will withdraw its adherence to the decision as renewed; in absence of such notice, a participant shall be deemed to continue to adhere (paragraph 19(b)).
  - Withdrawal of adherence in accordance with paragraph 19(b) shall not preclude subsequent adherence under paragraph 3(b) (paragraph 19(b)).
- Continuation of certain provisions after termination or withdrawal:
  - If terminated or not renewed, paragraphs 8 through 14, 17 and 18(b) shall continue to apply in connection with any indebtedness of the Fund under credit arrangements in existence at the date of termination or expiration until repayment is completed (paragraph 19(c)).
  - If a participant withdraws adherence under paragraph 15(b), 16, or 19(b), it shall cease to be a participant, but paragraphs 8 through 14, 17, and 18(b) as of the date of withdrawal shall continue to apply to any indebtedness under such former credit arrangement until repayment is completed (paragraph 19(c)).

### Interpretation (Paragraph 20)
- Settlement of questions:
  - Any question of interpretation raised in connection with this decision (including the GTC) which does not fall within Article XXIX shall be settled to the mutual satisfaction of the Fund, the participant or transferee raising the question, and all other participants (paragraph 20).
  - For this purpose, participants shall be deemed to include former participants to which paragraphs 8 through 14, 17, and 18(b) continue to apply pursuant to paragraph 19(c) to the extent they are affected (paragraph 20).

### Relationship with bilateral and other borrowing arrangements (Paragraphs 21–22)
- Activation threshold for bilateral borrowing agreements:
  - Bilateral borrowing agreements in effect from January 1, 2021  2026 through December 31, 2025 2030 may be activated only after the Managing Director has notified the Executive Board that the Forward Commitment Capacity of the Fund as defined in Decision No. 14906-(11/38), adopted April 20, 2011, taking into account all available uncommitted resources under the New Arrangements to Borrow (the “modified FCC”), is below SDR 100 billion (the “activation threshold”); provided, however, that the Managing Director shall not provide such notification unless the New Arrangements to Borrow are activated as of the time of the notification, or there are no available uncommitted resources under the New Arrangements to Borrow as of that time (paragraph 21(a)).
- Exceptions and pre-approach:
  - Paragraph 21(a) does not preclude the Managing Director from approaching creditors before the modified FCC is below the activation threshold if extraordinary circumstances warrant it to forestall or cope with an impairment of the international monetary system (paragraph 21(b)).
  - Activation of bilateral borrowing agreements in effect from January 1, 2021 2026 through December 31, 2025 2030 may occur if, in a poll of the participants, participants representing 85 percent of total credit arrangements agree that bilateral borrowing can be activated without the paragraph 21(a) requirements being met (paragraph 21(b)).
- Other borrowing:
  - Nothing in this decision shall preclude the Fund from entering into any other types of borrowing arrangements (paragraph 22).

### Transitional arrangements for pre-amendment bilateral borrowing claims (Paragraph 23)
- At request of a participant holding claims under bilateral borrowing agreements entered into prior to the effectiveness of amendments set forth in Decision No. 16645-(20/5), adopted January 16, 2020, and related to an activation prior to that date:
  - The Managing Director shall make calls under the credit arrangement of such a participant to fund repayment of such claims (paragraph 23).
  - At the participant’s request, calls shall be made on a participating institution for repayment of such claims held by the member of which it is an official institution or by the central bank or other fiscal agency designated by the member, or on a participant that is a member for repayment of such claims held by the central bank or other fiscal agency designated by the member (paragraph 23).
  - Notwithstanding paragraph 11(a), the maturity date of claims under credit arrangements arising from such calls shall be the maturity date of the bilateral borrowing agreement claim for whose repayment the call was made (paragraph 23).

### Annex I — Participants and amounts of credit arrangements (in Millions of SDRs)
- Current Participants Amounts:
  - Australia 4,440.90
  - Austria 3,636.98
  - Banco Central de Chile 1,381.94
  - Banco de Portugal 1,567.00
  - Bangko Sentral ng Pilipinas 680.00
  - Bank of Israel 680.00
  - Belgium 7,988.66
  - Brazil 8,881.82
  - Canada 7,747.42
  - China 31,720.76
  - Cyprus 680.00
  - Danmarks Nationalbank 3,259.52
  - Deutsche Bundesbank 25,780.04
  - Finland 2,267.76
  - France 18,958.32
  - Greece 1,681.20
  - Hong Kong Monetary Authority 680.00
  - India 8,881.82
  - Ireland 1,915.94
  - Italy 13,797.04
  - Japan 67,017.00
  - Korea 6,689.64
  - Kuwait 341.29
  - Luxembourg 986.24
  - Malaysia 680.00
  - Mexico 5,075.32
  - National Bank of Poland 2,570.80
  - Netherlands 9,189.60
  - New Zealand 680.00
  - Norway 3,933.38
  - Russian Federation 8,881.82
  - Saudi Arabia 11,305.48
  - Singapore 1,297.10
  - South Africa 680.00
  - Spain 6,810.28
  - Sveriges Riksbank 4,511.36
  - Swiss National Bank 11,081.32
  - Thailand 680.00
  - United Kingdom 18,958.32
  - United States 56,404.94
- Total 364,401.01
- Footnotes:
  - Current credit arrangements are subject to a minimum of SDR 341.29 million.
  - Changes in credit arrangement amounts were approved by the Executive Board pursuant to Decision No. 17665-(24/11), adopted January 30, 2024; however, credit arrangement amounts will not change unless the conditions for effectiveness set forth in Decision No. 17665-(24/11), are met.

*International Monetary Fund — Renewal of the NAB (Section content as provided).*

### Annex II. General Terms and Conditions for Notes Issued by the

### Annex II. General Terms and Conditions for Notes Issued by the International Monetary Fund under the New Arrangements to Borrow (the “NAB”)

### Issuance of Notes to Participants and Other Holders
- Notes issued by the Fund at the request of a participant pursuant to paragraph 8(a) of the NAB Decision; participant shall purchase Notes in the amount requested, up to the amount of the Fund’s call on the participant under its credit arrangement.
- Notes issued to the transferee of a loan claim at the transferee’s request pursuant to paragraph 13(k) of the NAB Decision.
- Notes shall be denominated in the special drawing right.

### Form, Delivery and Custody of Notes
- Notes issued in book entry form; Fund maintains a book entry account recording number, issue date, principal amount, and maturity date.
- As of the value date of each purchase, exchange, or transfer under paragraph 13 of the NAB Decision, the Fund will make an entry in its records; that entry constitutes delivery and identifies the holder for all purposes.
- Upon request, the Fund will issue a registered Note substantially in the form set out in the Appendix, including the legend regarding restrictions on transfer.
- Issue date of a registered Note will be the value date of the purchase or of the loan claim for which it was exchanged pursuant to paragraph 13(k) of the NAB Decision; registered Notes issued in the name of the relevant holder.
- Unless otherwise agreed, the Fund will keep registered Notes in custody for the holder; acceptance of custody constitutes delivery.

### Interest
- Interest rate: equal to the combined market interest rate computed by the Fund from time to time for determining the rate at which it pays interest on holdings of special drawing rights or any such higher rate as may be agreed between the Fund and participants representing 85 percent of the total credit arrangements under the NAB Decision.
- Interest shall accrue daily.
- Interest payment schedule: paid as soon as possible after each July 31, October 31, January 31, and April 30.
- Currency of interest: as determined by the Fund in consultation with the holder, interest due may be paid in special drawing rights, in the holder’s currency if the holder is a member, in the currency borrowed, in freely usable currencies, or, with the agreement of the holder, in other currencies that are actually convertible.

### Maturity; Repayment by the Fund
- Standard maturity: Notes shall have a maturity of ten years.
- Exception: A Note issued pursuant to paragraph 13(k) of the NAB Decision shall have the maturity of the loan claim for which it was exchanged.
- Repayment of Note principal made in accordance with paragraph 11 of the NAB Decision.
- Fund deemed to have discharged obligations to holders that are participating institutions or designated central banks/fiscal agencies if the Fund transfers an equivalent amount in special drawing rights to the account of the member in which the institution is established.
- Cancellation of a Note by the Fund:
  - (i) upon payment of the principal amount and all accrued interest;
  - (ii) if transferred in accordance with paragraph 6 of these General Terms and Conditions;
  - (iii) if exchanged for a loan claim in accordance with paragraph 13(k) of the NAB Decision.
- If early payment made of less than the principal amount, the Fund will cancel the Note and issue a new Note for the remainder.
- Any registered Note to be cancelled that is not in the Fund’s custody shall be surrendered by the holder for cancellation.

### Rates of Exchange
- For purposes of these General Terms and Conditions, the value of a currency in terms of the special drawing right shall be calculated by the Fund in accordance with Rule O-2 of the Fund’s Rules and Regulations.

### Transferability of Notes
- Transfer restrictions: holder may not transfer Notes except (i) in accordance with paragraph 6 or (ii) with the prior consent of the Fund on such terms as the Fund may approve; any other purported transfer is of no force or effect.
- Permitted transferees: participants or non-participants that are (i) a member of the Fund, (ii) the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1 of the Articles, or (iii) an official entity prescribed as a holder of special drawing rights pursuant to Article XVII, Section 3 of the Articles.
- As from the value date of transfer, transferee holds the Note:
  - on same terms as Notes originating under its credit arrangement (for transferees that are participants), or
  - as the Note was held by the transferor (for transferees that are non-participants),
  - except that:
    - (i) transferee may request early repayment on balance of payments grounds pursuant to paragraph 11(e) of the NAB Decision only if the transferee is a member or institution of a member whose balance of payment and reserve position at time of transfer is considered sufficiently strong for its currency to be usable in transfers under the Fund's financial transactions plan, or, in the case of the HKMA, the balance of payments position of Hong Kong at the time of the transfer is, in the opinion of the Fund, sufficiently strong to justify such a right;
    - (ii) if transferee is a non-participant, references in paragraph 11 of the NAB Decision to the participant’s currency shall be deemed to refer (A) if the transferee is a member, to the transferee’s currency, (B) if the transferee is an institution of a member, to the currency of that member, and (C) in other cases, to a freely usable currency as determined by the Fund;
    - (iii) Notes transferred shall be considered drawn balances of the first transferor participant for determining the available commitment under its credit arrangement, and Notes obtained by a transferee participant shall not be considered drawn balances of such participant for determining the available commitment under its credit arrangement.
- Price for transferred Note: as agreed between transferee and transferor.
- Transferor reporting obligations: inform the Fund promptly of the Note being transferred, name of transferee, amount transferred, agreed price, and value date of transfer.
- Registration: Fund registers transfer and transferee becomes holder only if transfer is in accordance with NAB Decision and these General Terms and Conditions; registration effective as of agreed value date.
- Transferee may request exchange of transferred Note for a loan claim pursuant to paragraph 13(k) of the NAB Decision.
- Notice to or by a transferee that is a non-participant: in writing or by rapid means and given to or by the fiscal agency designated by the transferee in accordance with Article V, Section 1 and Rule G-1 if the transferee is a member, or to or by the transferee itself if not a member.
- Interest on transfers during a quarterly period: Fund shall pay interest to the transferee on the relevant interest payment date on the amount transferred for the whole of that period.
- Fund assistance: if requested, the Fund shall assist in seeking to arrange transfers.
- Mechanics on transfer: Fund will cancel the Note transferred in whole or in part and, for registered Notes not in Fund custody, transferor must surrender for cancellation; Fund will issue new Note(s) in the name of transferee and, where appropriate, transferor for retained principal. New Notes carry the issue date and same maturity date (including any extensions) as the cancelled Note; form and delivery governed by paragraph 2.
- Prohibitions: Derivative transactions in respect of any Note, and transfers of participation interests in any Note, are prohibited.

### Notices
- Notice to or by a holder who is a participating member: in writing or by rapid means and given to or by the fiscal agency designated in accordance with Article V, Section 1 and Rule G-1.
- Notice to or by a holder who is a participating institution: in writing or by rapid means and given to or by the participating institution.

### Interpretation
- Any question of interpretation not within Article XXIX of the Articles shall be settled to the mutual satisfaction of the Fund, the holder raising the question, and all participants in the NAB.
- For this purpose, “holder” includes former participants to which paragraphs 8 through 14, 17 and 18(b) of the NAB Decision continue to apply pursuant to paragraph 19(c) of the NAB Decision, to the extent affected by the question of interpretation raised.

### NAB Decision and Changes in the GTC
- Notes and any claims thereunder are subject to the terms and conditions of the NAB Decision as in effect from time to time.
- Any amendments to these General Terms and Conditions adopted in accordance with paragraph 8(a) of the NAB Decision shall apply to all outstanding Notes issued under the NAB Decision.

### Appendix — Form of Registered NAB Note (key elements)
- Form header: "REGISTERED NAB NOTE"
- Fields: Number, SDR amount, Issue Date, Maturity Date.
- Promise: Fund promises to pay registered holder an amount equivalent to specified Special Drawing Rights on the maturity date and to pay interest as set forth.
- Holder deemed to have agreed to General Terms and Conditions and relevant terms of the NAB, including maturity date, interest rate, early payment terms, and transfer terms.
- Transfer and derivative prohibitions (exact wording included in form):
  - NO SALE/TRANSFER 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, (III) AN OFFICIAL ENTITY PRESCRIBED AS A HOLDER OF SPECIAL DRAWING RIGHTS PURSUANT TO ARTICLE XVII, SECTION 3, OR (IV) AN ENTITY IN RESPECT OF WHICH THE FUND HAS CONSENTED IN WRITING TO THE TRANSFER PURSUANT TO PARAGRAPH 6(A).
  - ANY DERIVATIVE TRANSACTIONS IN RESPECT OF THIS NOTE, AND TRANSFERS OF PARTICIPATION INTERESTS IN THIS NOTE, ARE PROHIBITED.
- Interest provisions in form mirror General Terms and Conditions:
  - Rate equal to combined market interest rate computed by the Fund or any higher rate agreed between the Fund and participants representing 85 percent of the total credit arrangements under the NAB.
  - Interest accrues daily; paid as soon as possible after each July 31, October 31, January 31, and April 30.
  - Interest payable in special drawing rights, holder’s currency if a member, in the currency borrowed, or in other currencies that are actually convertible, as determined by the Fund in consultation with the holder.

*Annex II. General Terms and Conditions for Notes Issued by the International Monetary Fund under the New Arrangements to Borrow (the “NAB”).*

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_Source: https://www.imf.org/-/media/files/publications/pp/2024/english/ppea2024042.pdf_