## _052909 - Section 1 and Section 2

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---

### Introduction
- Draft borrowing agreement between Norges Bank and the Fund submitted for Executive Board approval (the “Agreement”).
- Norway announced exploration of a possible contribution of up to 30 billion Norwegian kroner (about US$4.5 billion or SDR 3 billion) to the IMF to support balance of payments assistance.
- Staff and Norges Bank reached agreement on a draft borrowing agreement (text in the Attachment).
- The Agreement would add to resources available to the Fund, complementing the borrowing agreement with Japan approved by the Board in February 2009.
- The Agreement is being submitted to Norway’s Parliament for discussion and approval; entry into force upon signature by the Governor of Norges Bank and the Managing Director (expected completion around mid-June).
- The Agreement closely follows the Japan borrowing agreement; Board approval on a lapse of time basis is proposed.
- Main differences from the Japan agreement:
  - Option for Norges Bank to unilaterally terminate the term of the agreement under certain circumstances once an expanded and amended NAB with Norway or Norges Bank participation becomes effective.
  - Revolving character of the loan (repayments restore drawing capacity), paralleling the NAB.

### Specific Features of the Proposed Agreement
- Amount:
  - Ceiling for drawings under the Agreement expressed in SDR: “the equivalent of SDR 3 billion.”
- Folding into an Expanded and More Flexible NAB:
  - Norges Bank may terminate the term of the Agreement with respect to any undrawn balances if Norway or Norges Bank participates in an enlarged and amended NAB that becomes effective and has an effective credit arrangement at least equal to the remaining undrawn balance under the Agreement at the time of termination (Paragraph 2(c)).
  - Terms for folding outstanding drawings into the NAB will be addressed separately as part of NAB discussions.
- Limits on Drawings:
  - Limit on drawings during any calendar week of SDR 400 million.
  - No additional monthly limit.
  - Drawings in excess of the weekly limit permitted with agreement of Norges Bank (Paragraph 3(b)).
- Maturity:
  - Each drawing has a maturity of three months, extendable by additional periods of three months for up to a total of five years from the date of drawing.
  - Maturity dates of all outstanding drawings automatically deemed extended unless the Fund notifies Norges Bank at least five business days before a maturity date that it does not elect to extend (Paragraph 5(a)).
  - Agreement provides a revolving line of credit: repayments restore proportionately the amount that can be drawn (Paragraph 5(d)).
- Central Bank as Counterpart:
  - Technical provisions on media and modalities of payment reflect that the counterpart is the central bank of a member (paragraph 7).
  - SDR payments can be made on behalf of Norges Bank to Norway’s account in the Special Drawing Rights Department (parallel to NAB paragraph 11(g) of the NAB Decision).
  - Agreement becomes effective only when Norway has consented, in accordance with Article VII, Section 1(i), to the Fund’s borrowing of Norwegian kroner from Norges Bank (Paragraph 15).

### Guidelines for Borrowing by the Fund—Temporary Suspension of Certain Provisions
- Staff finalizing paper on operational modalities for use of borrowed resources and implications for existing borrowing guidelines; to be brought to the Executive Board shortly.
- Pending that discussion, requirement in paragraph 2 of the existing Guidelines on Borrowing by the Fund regarding establishment of an overall limit prior to any new borrowing remains applicable.
- Staff proposes to temporarily suspend the application of paragraph 2 of the Guidelines on Borrowing by the Fund to enable approval of the Agreement with Norges Bank, following the approach used for the Japan agreement.
- Pending adoption of new borrowing guidelines, drawings under the Agreement would only be made on the basis of a Board decision on the use of borrowed resources, similar to the decision taken for the Japan agreement.

### Proposed Decision
- 1. The Fund temporarily suspends the application of Paragraph 2 of the Guidelines for Borrowing by the Fund, Decision No. 9862-(91/156), adopted November 15, 1991, in order to enable approval of the proposed borrowing agreement with Norges Bank that is set out in the Attachment (the “Agreement”).
- 2. The Fund deems it appropriate, in accordance with Article VII, Section 1(i) of the Articles of Agreement, to replenish its holdings of currencies in the General Resources Account by borrowing from Norges Bank on the terms and conditions set forth in the Agreement.
- 3. The Executive Board approves the Agreement and authorizes the Managing Director to take such actions as are necessary to execute the Agreement on behalf of the Fund.
- 4. The Managing Director is authorized, following the execution of the Agreement, to make such determinations and take such actions as are necessary to implement the Agreement, including but not limited to the making of drawings, the extension of the term of the Agreement and the maturity of drawings thereunder, and the determination of the media for drawings and payments in light of the Fund’s operational needs. Such determinations and actions shall be consistent with the policies and guidelines on borrowing and the use of borrowed resources that are adopted by the Executive Board.
- 5. The Executive Board shall be informed of developments related to the implementation of the Agreement in reports to be furnished by the Managing Director on a quarterly basis throughout the term of the Agreement, with reports to be furnished more frequently in the event of significant developments related to the Agreement. Such reports shall cover all aspects of the implementation of the Agreement, including, as applicable, drawings made, disposition of amounts borrowed, and repayment of drawings.

### Attachment—Draft Borrowing Agreement (Key Provisions)
- Purposes and Amounts:
  - Norges Bank agrees to lend to the Fund up to the equivalent of SDR 3 billion to support timely and effective balance of payments assistance to members.
- Term of the Agreement (Paragraph 2):
  - Fund may make drawings for a period of one year commencing on date of first drawing or August 1, 2009, whichever is earlier.
  - Fund to give Norges Bank at least five business days’ (Oslo) notice of intention to draw; provide payment instructions at least two business days (Oslo) prior to value date by SWIFT.
  - Fund may extend term for successive one-year periods for a total drawing period of up to 5 years with at least 1 month prior notice to Norges Bank.
  - Norges Bank may terminate term if Norway or Norges Bank participates in an enlarged and amended NAB effective after the date of this agreement and has an effective credit arrangement under such NAB at least equal to the remaining undrawn balance.
- Uses, Estimates and Limits on Drawings (Paragraph 3):
  - Fund may make drawings in connection with (i) any use of Fund resources in the General Resources Account, or (ii) payment of the Fund’s outstanding indebtedness under other official sector borrowing effected pursuant to Article VII, Section 1(i), where terms permit.
  - Fund shall not draw more than the equivalent of SDR 0.4 billion during any calendar week unless otherwise agreed.
  - Prior to each quarter, Fund shall provide Norges Bank best estimates of expected drawings for the forthcoming quarter and revised estimates as warranted.
- Evidence of Indebtedness (Paragraph 4):
  - At Norges Bank’s request, Fund shall issue non-negotiable instruments evidencing indebtedness; cancellation and substitution procedures specified.
- Maturity (Paragraph 5):
  - Each drawing maturation: three months from drawing date; Fund may extend by three-month periods up to fifth anniversary of drawing.
  - Fund automatically deemed to elect extension for all outstanding drawings unless it notifies Norges Bank at least five business days (Oslo) before a maturity date.
  - Fund shall repay principal on maturity date; may make early repayments after consultation.
  - Repayments restore pro tanto the amount that can be drawn; extension of maturity does not reduce drawing capacity.
- Rate of Interest (Paragraph 6):
  - Each drawing bears interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3; if Fund pays a higher interest rate on comparable borrowing effected pursuant to Article VII, Section 1(i), interest rate on this agreement shall be equivalent to that higher rate for as long as it remains in effect.
  - Interest calculated on outstanding amount, accrues daily, paid promptly after each July 31, October 31, January 31 and April 30.
- Denomination, Media and Modalities (Paragraph 7):
  - Drawings and repayments denominated in SDRs.
  - Each drawing paid by Norges Bank by transfer of the SDR equivalent amount of Norwegian kroner to the Fund’s account at Norges Bank, Oslo, on the value date.
  - Repayments of principal by the Fund in Norwegian kroner; after consultation, Fund may repay in SDRs or freely usable currencies.
  - Interest payments normally in SDRs; may be made in Norwegian kroner or any freely usable currency by agreement.
  - Payments in Norwegian kroner credited to account specified by Norges Bank, Oslo; payments in SDRs credited to Norway’s account in the Special Drawing Rights Department; other currencies to account specified by Norges Bank.
- Termination of Drawings at Request of Norges Bank (Paragraph 8):
  - Norges Bank’s commitment to meet drawings terminated at Norges Bank’s request if it represents Norway’s balance of payments and reserve position does not justify further drawings and the Fund, after giving the representation the overwhelming benefit of any doubt, determines no further drawing should be made.
- Early Repayment at Request of Norges Bank (Paragraph 9):
  - Norges Bank may request early repayment at face value of all or a portion of outstanding drawings if it represents Norway’s balance of payments and reserve position justifies such repayment and the Fund, after giving representation the overwhelming benefit of any doubt, determines there is a need for early repayment.
  - Upon Fund’s determination, maturity date of drawings for which early repayment requested shall be changed to the date 12 months after the Fund’s determination.
  - Fund shall begin to repay such drawings as soon as practicable after the Fund’s determination and shall make full repayment within the 12-month maturity period.

### Transferability (Paragraph 10)
- Except as provided in subparagraphs (b) through (h), Norges Bank may not transfer its obligations under this agreement, or any of its claims on the Fund resulting from outstanding drawings under this agreement, except with the prior consent of the Fund and on such terms or conditions as the Fund may approve.
- Norges Bank shall have the right to transfer at any time all or part of any claim on the Fund to:
  - any member of the Fund,
  - to the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1 of the Fund’s Articles of Agreement (“other fiscal agency”),
  - 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.
- Conditions applying to a transferee of a claim transferred pursuant to subparagraph (b):
  - The transferee shall, as a condition of the transfer, assume the liability of Norges Bank pursuant to paragraph 5(a) regarding the extension of the maturity of drawings related to the transferred claim.
  - Any claim transferred pursuant to subparagraph (b) shall be held by the transferee on the same terms and conditions as the claim was held by Norges Bank, except that:
    - (i) the transferee shall acquire the right to request early repayment under paragraph 9 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 is considered sufficiently strong in the opinion of the Fund that its currency is used in transfers under the Financial Transactions Plan,
    - (ii) if the transferee is a member or the central bank or other fiscal agency of a member, the reference to Norwegian kroner in paragraph 7 shall be deemed to refer to the transferee’s currency, and in other cases it shall be deemed to refer to a freely usable currency determined by the Fund,
    - (iii) payments related to the transferred claim shall be made to an account specified by the transferee,
    - (iv) references to business days (Oslo) shall be deemed to refer to business days in the place where the transferee is situated.
- The price of a claim transferred pursuant to subparagraph (b) shall be as agreed between Norges Bank and the transferee.
- Norges Bank shall notify the Fund promptly of:
  - the claim that is being transferred pursuant to subparagraph (b),
  - the name of the transferee,
  - the amount of the claim that is being transferred,
  - the agreed price for transfer of the claim,
  - and the value date of the transfer.
- A transfer notified to the Fund under subparagraph (e) shall be reflected in the Fund’s records if it is in accordance with the terms and conditions of this paragraph 10; the transfer shall be effective as of the value date agreed between Norges Bank and the transferee.
- If all or part of a claim is transferred during a quarterly period as described in paragraph 6(b), the Fund shall pay interest to the transferee on the amount of the claim transferred for the whole of that period.
- If requested, the Fund shall assist in seeking to arrange transfers.

### Effective Exchange Rate (Paragraph 11)
- Unless otherwise is agreed between Norges Bank and the Fund, all drawings, exchanges, and payments of principal and interest under this agreement shall be made at the exchange rates for the relevant currencies in terms of the SDR established pursuant to Article XIX, Section 7(a) and the rules and regulations of the Fund thereunder for the second business day of the Fund before the value date of the transfer, exchange or payment.
- If this exchange rate determination date is not a business day in Oslo, such date shall be the last preceding business day of the Fund that is also a business day in Oslo.

### Changes in Method of Valuation of SDR (Paragraph 12)
- If the Fund changes the method of valuing the SDR, all transfers, exchanges and payments of principal and interest made two or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

### Non-Subordination of Claims (Paragraph 13)
- The Fund agrees that it will not take any action that would have the effect of making Norges Bank’s claims on the Fund resulting from outstanding drawings under this agreement subordinate in any way to claims on the Fund resulting from any other borrowing effected pursuant to Article VII, Section 1(i) of the Fund’s Articles of Agreement.

### Settlement of Questions (Paragraph 14)
- Any question arising under this agreement shall be settled by mutual agreement between Norges Bank and the Fund.

### Concurrence under Article VII, Section 1(i) and Execution (Paragraph 15)
- This Agreement shall become effective only after Norway has provided the concurrence that is required under Article VII, Section 1(i) of the Fund’s Articles of Agreement for Fund borrowing of Norwegian kroner from a party other than Norway.
- This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original and both of which together shall constitute but one and the same instrument.
- IN WITNESS WHEREOF, Norges Bank and the Fund have executed this Agreement as of the date first written above.

*Source: _052909 - Section 2*

### Section 1

### _052909 - Section 1

### Introduction
- Draft borrowing agreement between Norges Bank and the Fund submitted for Executive Board approval (the “Agreement”).
- Norway announced exploration of a possible contribution of up to 30 billion Norwegian kroner (about US$4.5 billion or SDR 3 billion) to the IMF to support balance of payments assistance.
- Staff and Norges Bank reached agreement on a draft borrowing agreement (text in the Attachment).
- The Agreement would add to resources available to the Fund, complementing the borrowing agreement with Japan approved by the Board in February 2009.
- The Agreement is being submitted to Norway’s Parliament for discussion and approval; entry into force upon signature by the Governor of Norges Bank and the Managing Director (expected completion around mid-June).
- The Agreement closely follows the Japan borrowing agreement; Board approval on a lapse of time basis is proposed.
- Main differences from the Japan agreement:
  - Option for Norges Bank to unilaterally terminate the term of the agreement under certain circumstances once an expanded and amended NAB with Norway or Norges Bank participation becomes effective.
  - Revolving character of the loan (repayments restore drawing capacity), paralleling the NAB.

### Specific Features of the Proposed Agreement
- Amount:
  - Ceiling for drawings under the Agreement expressed in SDR: “the equivalent of SDR 3 billion.”
- Folding into an Expanded and More Flexible NAB:
  - Norges Bank may terminate the term of the Agreement with respect to any undrawn balances if Norway or Norges Bank participates in an enlarged and amended NAB that becomes effective and has an effective credit arrangement at least equal to the remaining undrawn balance under the Agreement at the time of termination (Paragraph 2(c)).
  - Terms for folding outstanding drawings into the NAB will be addressed separately as part of NAB discussions.
- Limits on Drawings:
  - Limit on drawings during any calendar week of SDR 400 million.
  - No additional monthly limit.
  - Drawings in excess of the weekly limit permitted with agreement of Norges Bank (Paragraph 3(b)).
- Maturity:
  - Each drawing has a maturity of three months, extendable by additional periods of three months for up to a total of five years from the date of drawing.
  - Maturity dates of all outstanding drawings automatically deemed extended unless the Fund notifies Norges Bank at least five business days before a maturity date that it does not elect to extend (Paragraph 5(a)).
  - Agreement provides a revolving line of credit: repayments restore proportionately the amount that can be drawn (Paragraph 5(d)).
- Central Bank as Counterpart:
  - Technical provisions on media and modalities of payment reflect that the counterpart is the central bank of a member (paragraph 7).
  - SDR payments can be made on behalf of Norges Bank to Norway’s account in the Special Drawing Rights Department (parallel to NAB paragraph 11(g) of the NAB Decision).
  - Agreement becomes effective only when Norway has consented, in accordance with Article VII, Section 1(i), to the Fund’s borrowing of Norwegian kroner from Norges Bank (Paragraph 15).

### Guidelines for Borrowing by the Fund—Temporary Suspension of Certain Provisions
- Staff finalizing paper on operational modalities for use of borrowed resources and implications for existing borrowing guidelines; to be brought to the Executive Board shortly.
- Pending that discussion, requirement in paragraph 2 of the existing Guidelines on Borrowing by the Fund regarding establishment of an overall limit prior to any new borrowing remains applicable.
- Staff proposes to temporarily suspend the application of paragraph 2 of the Guidelines on Borrowing by the Fund to enable approval of the Agreement with Norges Bank, following the approach used for the Japan agreement.
- Pending adoption of new borrowing guidelines, drawings under the Agreement would only be made on the basis of a Board decision on the use of borrowed resources, similar to the decision taken for the Japan agreement.

### Proposed Decision (as presented)
- 1. The Fund temporarily suspends the application of Paragraph 2 of the Guidelines for Borrowing by the Fund, Decision No. 9862-(91/156), adopted November 15, 1991, in order to enable approval of the proposed borrowing agreement with Norges Bank that is set out in the Attachment (the “Agreement”).
- 2. The Fund deems it appropriate, in accordance with Article VII, Section 1(i) of the Articles of Agreement, to replenish its holdings of currencies in the General Resources Account by borrowing from Norges Bank on the terms and conditions set forth in the Agreement.
- 3. The Executive Board approves the Agreement and authorizes the Managing Director to take such actions as are necessary to execute the Agreement on behalf of the Fund.
- 4. The Managing Director is authorized, following the execution of the Agreement, to make such determinations and take such actions as are necessary to implement the Agreement, including but not limited to the making of drawings, the extension of the term of the Agreement and the maturity of drawings thereunder, and the determination of the media for drawings and payments in light of the Fund’s operational needs. Such determinations and actions shall be consistent with the policies and guidelines on borrowing and the use of borrowed resources that are adopted by the Executive Board.
- 5. The Executive Board shall be informed of developments related to the implementation of the Agreement in reports to be furnished by the Managing Director on a quarterly basis throughout the term of the Agreement, with reports to be furnished more frequently in the event of significant developments related to the Agreement. Such reports shall cover all aspects of the implementation of the Agreement, including, as applicable, drawings made, disposition of amounts borrowed, and repayment of drawings.

### Attachment—Draft Borrowing Agreement (Key Provisions)
- Purposes and Amounts:
  - Norges Bank agrees to lend to the Fund up to the equivalent of SDR 3 billion to support timely and effective balance of payments assistance to members.
- Term of the Agreement (Paragraph 2):
  - Fund may make drawings for a period of one year commencing on date of first drawing or August 1, 2009, whichever is earlier.
  - Fund to give Norges Bank at least five business days’ (Oslo) notice of intention to draw; provide payment instructions at least two business days (Oslo) prior to value date by SWIFT.
  - Fund may extend term for successive one-year periods for a total drawing period of up to 5 years with at least 1 month prior notice to Norges Bank.
  - Norges Bank may terminate term if Norway or Norges Bank participates in an enlarged and amended NAB effective after the date of this agreement and has an effective credit arrangement under such NAB at least equal to the remaining undrawn balance.
- Uses, Estimates and Limits on Drawings (Paragraph 3):
  - Fund may make drawings in connection with (i) any use of Fund resources in the General Resources Account, or (ii) payment of the Fund’s outstanding indebtedness under other official sector borrowing effected pursuant to Article VII, Section 1(i), where terms permit.
  - Fund shall not draw more than the equivalent of SDR 0.4 billion during any calendar week unless otherwise agreed.
  - Prior to each quarter, Fund shall provide Norges Bank best estimates of expected drawings for the forthcoming quarter and revised estimates as warranted.
- Evidence of Indebtedness (Paragraph 4):
  - At Norges Bank’s request, Fund shall issue non-negotiable instruments evidencing indebtedness; cancellation and substitution procedures specified.
- Maturity (Paragraph 5):
  - Each drawing maturation: three months from drawing date; Fund may extend by three-month periods up to fifth anniversary of drawing.
  - Fund automatically deemed to elect extension for all outstanding drawings unless it notifies Norges Bank at least five business days (Oslo) before a maturity date.
  - Fund shall repay principal on maturity date; may make early repayments after consultation.
  - Repayments restore pro tanto the amount that can be drawn; extension of maturity does not reduce drawing capacity.
- Rate of Interest (Paragraph 6):
  - Each drawing bears interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3; if Fund pays a higher interest rate on comparable borrowing effected pursuant to Article VII, Section 1(i), interest rate on this agreement shall be equivalent to that higher rate for as long as it remains in effect.
  - Interest calculated on outstanding amount, accrues daily, paid promptly after each July 31, October 31, January 31 and April 30.
- Denomination, Media and Modalities (Paragraph 7):
  - Drawings and repayments denominated in SDRs.
  - Each drawing paid by Norges Bank by transfer of the SDR equivalent amount of Norwegian kroner to the Fund’s account at Norges Bank, Oslo, on the value date.
  - Repayments of principal by the Fund in Norwegian kroner; after consultation, Fund may repay in SDRs or freely usable currencies.
  - Interest payments normally in SDRs; may be made in Norwegian kroner or any freely usable currency by agreement.
  - Payments in Norwegian kroner credited to account specified by Norges Bank, Oslo; payments in SDRs credited to Norway’s account in the Special Drawing Rights Department; other currencies to account specified by Norges Bank.
- Termination of Drawings at Request of Norges Bank (Paragraph 8):
  - Norges Bank’s commitment to meet drawings terminated at Norges Bank’s request if it represents Norway’s balance of payments and reserve position does not justify further drawings and the Fund, after giving the representation the overwhelming benefit of any doubt, determines no further drawing should be made.
- Early Repayment at Request of Norges Bank (Paragraph 9):
  - Norges Bank may request early repayment at face value of all or a portion of outstanding drawings if it represents Norway’s balance of payments and reserve position justifies such repayment and the Fund, after giving representation the overwhelming benefit of any doubt, determines there is a need for early repayment.
  - Upon Fund’s determination, maturity date of drawings for which early repayment requested shall be changed to the date 12 months after the Fund’s determination.
  - Fund shall begin to repay such drawings as soon as practicable after the Fund’s determination and shall make full repayment within the 12-month maturity period.

*Source: Draft borrowing agreement and Executive Board paper, “Borrowing Agreement with Norges Bank,” May 29, 2009.*

### Section 2

### _052909 - Section 2

### Transferability (Paragraph 10)
- Except as provided in subparagraphs (b) through (h), Norges Bank may not transfer its obligations under this agreement, or any of its claims on the Fund resulting from outstanding drawings under this agreement, except with the prior consent of the Fund and on such terms or conditions as the Fund may approve.
- Norges Bank shall have the right to transfer at any time all or part of any claim on the Fund to:
  - any member of the Fund,
  - to the central bank or other fiscal agency designated by any member for purposes of Article V, Section 1 of the Fund’s Articles of Agreement (“other fiscal agency”),
  - 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.
- Conditions applying to a transferee of a claim transferred pursuant to subparagraph (b):
  - The transferee shall, as a condition of the transfer, assume the liability of Norges Bank pursuant to paragraph 5(a) regarding the extension of the maturity of drawings related to the transferred claim.
  - Any claim transferred pursuant to subparagraph (b) shall be held by the transferee on the same terms and conditions as the claim was held by Norges Bank, except that:
    - (i) the transferee shall acquire the right to request early repayment under paragraph 9 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 is considered sufficiently strong in the opinion of the Fund that its currency is used in transfers under the Financial Transactions Plan,
    - (ii) if the transferee is a member or the central bank or other fiscal agency of a member, the reference to Norwegian kroner in paragraph 7 shall be deemed to refer to the transferee’s currency, and in other cases it shall be deemed to refer to a freely usable currency determined by the Fund,
    - (iii) payments related to the transferred claim shall be made to an account specified by the transferee,
    - (iv) references to business days (Oslo) shall be deemed to refer to business days in the place where the transferee is situated.
- The price of a claim transferred pursuant to subparagraph (b) shall be as agreed between Norges Bank and the transferee.
- Norges Bank shall notify the Fund promptly of:
  - the claim that is being transferred pursuant to subparagraph (b),
  - the name of the transferee,
  - the amount of the claim that is being transferred,
  - the agreed price for transfer of the claim,
  - and the value date of the transfer.
- A transfer notified to the Fund under subparagraph (e) shall be reflected in the Fund’s records if it is in accordance with the terms and conditions of this paragraph 10; the transfer shall be effective as of the value date agreed between Norges Bank and the transferee.
- If all or part of a claim is transferred during a quarterly period as described in paragraph 6(b), the Fund shall pay interest to the transferee on the amount of the claim transferred for the whole of that period.
- If requested, the Fund shall assist in seeking to arrange transfers.

### Effective Exchange Rate (Paragraph 11)
- Unless otherwise is agreed between Norges Bank and the Fund, all drawings, exchanges, and payments of principal and interest under this agreement shall be made at the exchange rates for the relevant currencies in terms of the SDR established pursuant to Article XIX, Section 7(a) and the rules and regulations of the Fund thereunder for the second business day of the Fund before the value date of the transfer, exchange or payment.
- If this exchange rate determination date is not a business day in Oslo, such date shall be the last preceding business day of the Fund that is also a business day in Oslo.

### Changes in Method of Valuation of SDR (Paragraph 12)
- If the Fund changes the method of valuing the SDR, all transfers, exchanges and payments of principal and interest made two or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

### Non-Subordination of Claims (Paragraph 13)
- The Fund agrees that it will not take any action that would have the effect of making Norges Bank’s claims on the Fund resulting from outstanding drawings under this agreement subordinate in any way to claims on the Fund resulting from any other borrowing effected pursuant to Article VII, Section 1(i) of the Fund’s Articles of Agreement.

### Settlement of Questions (Paragraph 14)
- Any question arising under this agreement shall be settled by mutual agreement between Norges Bank and the Fund.

### Concurrence under Article VII, Section 1(i) and Execution (Paragraph 15)
- This Agreement shall become effective only after Norway has provided the concurrence that is required under Article VII, Section 1(i) of the Fund’s Articles of Agreement for Fund borrowing of Norwegian kroner from a party other than Norway.
- This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original and both of which together shall constitute but one and the same instrument.
- IN WITNESS WHEREOF, Norges Bank and the Fund have executed this Agreement as of the date first written above.

*Source: _052909 - Section 2*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2009/_052909.pdf_