## Framework Administered Account for Selected Fund Activities: IMF-Middle East Center for Economics and Finance Subaccount for Selected Fund Activities

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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 paper requests Executive Board approval to establish the IMF-Middle East Center for Economics and Finance Subaccount for Selected Fund Activities (the “Subaccount”) under the terms of the SFA Instrument.
- Management and staff engaged with member countries in the Middle East region and donors on regional needs for training in macroeconomic management and related activities.
- Kuwait has agreed to host a training center directed at strengthening capacity for analyzing macroeconomic conditions and formulating and implementing macroeconomic and financial policies.

### Activities to be Financed
- The resources of the Subaccount will be used to finance an integrated curriculum of training courses and seminars that address the key skill sets needed to support and strengthen economic management in the countries of the Arab League.

### Essential Terms and Conditions (as established by the Managing Director)
- Resources:
  - The resources of the Subaccount shall consist of amounts contributed to the Subaccount by donors (“Contributors”) and earnings that accrue as a result of the investment of these amounts (net of any costs associated with such investments).
- Contributor consent and instruments:
  - Each Contributor will consent to the essential terms and conditions of the Subaccount before the Managing Director may accept a Contributor’s resources into the Subaccount.
  - Resources will be placed in the Subaccount by each Contributor on the basis of Letters of Understandings signed between the Contributor and the Fund relating to specific activities to be undertaken.
  - Contributors may transfer resources from any bilateral subaccount under the SFA into the Subaccount.
- Entry and exit:
  - Additional Contributors may join the Subaccount at any time. A Contributor’s consent to the essential terms and conditions of the Subaccount shall constitute 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 cost recovery:
  - 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 Approval 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 Subaccount.

*Prepared by the Legal and Finance Departments, the IMF Institute, and the Office of Technical Assistance Management; Approved by Sean Hagan, Andrew Tweedie, Leslie Lipschitz, and J.R. Rosales; October 22, 2010.*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2010/_102210.pdf_