## Framework Administered Account for Selected Fund Activities— Central America, Panama, and the Dominican Republic Technical Assistance Center (CAPTAC-DR) Subaccount

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**Canonical URL:** [Framework Administered Account for Selected Fund Activities— Central America, Panama, and the Dominican Republic Technical Assistance Center (CAPTAC-DR) Subaccount](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2009/_032709a.pdf)

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### Background and purpose
- In March 2009, the Fund established a new Framework Administered Account to administer external financial resources for selected Fund activities (the “SFA Instrument”).
- The CAPTAC-DR subaccount (the “Subaccount”) would be the first subaccount established under the SFA Instrument.
- This paper requests Executive Board approval to establish the CAPTAC-DR Subaccount.
- Document prepared by the Legal and Finance Departments, and the Office of Technical Assistance Management; approved by Sean Hagan, Andrew Tweedie, and Alfred Kammer; dated March 27, 2009.

### Objectives and planned activities
- Purpose: finance capacity building, training and related activities consistent with the purposes of the Fund for identified beneficiaries of CAPTAC-DR.
- Initial focus areas (five key areas addressing common policy challenges, including those related to increased regional integration):
  - financial sector supervision
  - tax and customs policy and administration
  - medium-term expenditure frameworks and PFM-related issues
  - money and public debt markets
  - macroeconomic statistics
- Rationale: Fund Regional Technical Assistance Centers have a proven track record to cost-effectively provide focused, flexible, and responsive technical assistance (TA); CAPTAC-DR expected to enhance the IMF’s ability to provide more technical assistance and training in the region.

### Beneficiaries
- Beneficiary member countries of CAPTAC-DR (as listed): Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and Panama.
- Additional beneficiary members may be added with the consent of the Managing Director and the concurrence of Contributors.

### Subaccount design and essential terms and conditions
- Resources of the Subaccount:
  - Will consist of amounts contributed to the Subaccount by donors and beneficiary countries of CAPTAC-DR (“Contributors”), and earnings that accrue as a result of the investment of these amounts (net of any costs associated with such investments).
  - Will be used to finance capacity building, training and related activities for identified beneficiaries of CAPTAC-DR.
- Contributor participation and consent:
  - Each Contributor will consent to the essential terms and conditions of the Subaccount before the Managing Director may accept the Contributor’s resources into the Subaccount.
  - Resources will be placed in the Subaccount by each Contributor after signature of a Letter of Understanding between the Contributor and the Fund.
  - Contributors may transfer resources from any bilateral subaccount under the SFA into the CAPTAC-DR subaccount.
  - Contributors may join the Subaccount at any time.
  - A Contributor’s consent to the essential terms and conditions constitutes the Contributor’s ex ante concurrence to any additional Contributor joining the Subaccount on the latter’s consent to the same essential terms and conditions.
  - A Contributor may withdraw from the Subaccount, and receive a retransfer of its net contributions, without precipitating the termination of the Subaccount.
- Fund reimbursement for management:
  - Reimbursement equal to 7 percent of the expenses financed from the Subaccount will be paid to the Fund from the Subaccount to help defray the expenses incurred by the Fund in the management of the Subaccount.

### Consistency and approval proposal
- The essential terms and conditions of the Subaccount are consistent with the terms of the SFA Instrument.
- The activities to be financed from the Subaccount are consistent with the purposes of the Fund.
- Proposal: Executive Board approval to establish the CAPTAC-DR Subaccount.

*Source: _032709a*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2009/_032709a.pdf_