## Framework Administered Account for Selected Fund Activities: Liberia Macro-Fiscal Subaccount (_120610)

## Source details

**Canonical URL:** [Framework Administered Account for Selected Fund Activities: Liberia Macro-Fiscal Subaccount (_120610)](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2010/_120610.pdf)

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### Purpose and request for approval
- Request for Executive Board approval to establish the Liberia Macro-Fiscal Subaccount (the “Subaccount”) under the SFA Instrument.
- Objective: finance technical assistance to support reforms in public financial management (PFM) and fiscal decentralization in Liberia.
- Management and staff have discussed with donors a program of reforms in PFM and fiscal decentralization; partnership will take the form of a multi-donor subaccount.
- Technical assistance financed from the Subaccount will assist Liberia in developing the tools and capacities to deliver a PFM framework consistent with international standards, and the development of a sustainable framework for fiscal decentralization.
- The Managing Director has established essential terms and conditions of the Subaccount with respect to the nature, design, and implementation of the activities to be financed and the method by which the costs will be financed from the Subaccount.

### Legal and operational design (essential terms and conditions)
- The Subaccount is established under the Framework Administered Account for Selected Fund Activities (the “SFA Instrument” established in March 2009).
- 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).
  - The resources will be used to finance capacity building, training, and related activities, consistent with the purposes of the Subaccount.
- Contributor consent and participation:
  - Each Contributor will consent to 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.
  - The Subaccount will permit Contributors to transfer resources from any bilateral subaccount under the SFA into the Liberia Macro-Fiscal Subaccount.
  - Contributors may join the Subaccount at any time.
  - A Contributor’s consent to the essential terms and conditions of the Subaccount will 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 reimbursement for management expenses:
  - To help defray the expenses incurred by the Fund in the management of the Subaccount that it will finance, reimbursement equal to seven percent of the expenses financed from 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 of the SFA Instrument.
- The activities to be financed from the Subaccount are consistent with the purposes of the Fund.
- Accordingly, it is proposed that the Executive Board approve the establishment of the Subaccount.

_Prepared by the Legal and Finance Departments, and the Office of Technical Assistance Management; Approved by Sean Hagan, Andrew Tweedie, and J.R. Rosales; December 6, 2010._

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2010/_120610.pdf_