## Framework Administered Account for Selected Fund Activities: Kingdom of the Netherlands—Netherlands Subaccount for Selected Fund Activities

## Source details

**Canonical URL:** [Framework Administered Account for Selected Fund Activities: Kingdom of the Netherlands—Netherlands Subaccount for Selected Fund Activities](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2009/_112009.pdf)

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### Overview
- In March 2009, the Fund established a new Framework Administered Account to administer external financial resources for selected Fund Activities (the “SFA Instrument”).
- The Kingdom of the Netherlands—Netherlands Subaccount will be the tenth subaccount to be established under the SFA.
- Paper requests Executive Board approval to establish the Kingdom of the Netherlands—Netherlands Subaccount for Selected Fund Activities (the “Subaccount”) under the terms of the SFA instrument.
- Prepared by the Legal and Finance Departments, and the Office of Technical Assistance Management. Approved by Sean Hagan, Andrew Tweedie, and Alfred Kammer. November 20, 2009.

### Purpose and Scope of Activities to be Financed
- The Subaccount will finance projects that seek to enhance the capacity of Fund members to formulate and implement policies in the macroeconomic, fiscal, monetary, financial and related statistical fields.
- Activities include training programs and projects that strengthen the legal and administrative framework in these core areas.
- The Subaccount implements financing of activities under the SFA Instrument through establishment and operation of a subaccount within the SFA.

### Understandings and Operational Arrangements
- The Fund, represented by the Managing Director, reached understandings with the Kingdom of the Netherlands—Netherlands acting through the Ministry of Foreign Affairs to finance capacity building, training and related activities.
- The Managing Director established the essential terms and conditions of the Subaccount, with which the Kingdom of the Netherlands—Netherlands concurs, covering the nature, design, implementation of activities, and the method of financing costs from the Subaccount.
- The Kingdom of the Netherlands—Netherlands and the Fund shall reach understandings upon operational features related to the activities to be financed from the Subaccount, consistent with the understandings reached between the Kingdom of the Netherlands—Netherlands and the Fund and the Instrument governing the SFA.

### Key Terms and Conditions
- Resources of the Subaccount:
  - Consist of amounts contributed to the Subaccount by the Kingdom of the Netherlands—Netherlands and earnings that accrue as a result of investment of these amounts (net of any costs associated with such investments).
  - Will be used to finance the capacity-building, training, and related projects described above.
- Placement and transfers:
  - Resources will be placed in the Subaccount by the Kingdom of the Netherlands—Netherlands on the basis of Letters of Understandings signed between the Kingdom of the Netherlands—Netherlands and the Fund relating to specific activities to be undertaken.
  - The Subaccount will permit the Kingdom of the Netherlands—Netherlands to transfer resources from the Kingdom of the Netherlands—Netherlands Subaccount to any subaccount under the SFA.
- Fund management reimbursement:
  - To help defray the expenses incurred by the Fund in the management of the Subaccount that it will finance, reimbursement equal to 7 percent of the expenses financed by the Subaccount will be paid to the Fund from the Subaccount.

### Consistency and Recommendation
- The essential terms and conditions of the Subaccount are consistent with the terms and conditions 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 Kingdom of the Netherlands—Netherlands Subaccount for Selected Fund Activities.

*Source: Framework Administered Account for Selected Fund Activities: Kingdom of the Netherlands—Netherlands Subaccount for Selected Fund Activities (Prepared by the Legal and Finance Departments, and the Office of Technical Assistance Management; Approved November 20, 2009).*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2009/_112009.pdf_