## Framework Administered Account for Selected Fund Activities: World Bank 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”).
- This paper (prepared by the Legal and Finance Departments, and the Office of Technical Assistance Management; approved March 21, 2011) requests Executive Board approval to establish the World Bank Subaccount for Selected Fund Activities (the “Subaccount”) under the SFA Instrument.
- The Managing Director has reached understandings with the International Bank for Reconstruction and Development and the International Development Association (collectively, the “World Bank”) to finance capacity building, training and related activities.

### Scope of Activities to be Financed
- Projects to be financed will seek to enhance the capacity of Fund members to formulate and implement policies in the macroeconomic, fiscal, monetary, financial and related statistical fields.
- Financing will include training programs and projects that strengthen the legal and administrative framework in these core areas.

### Essential Terms and Conditions
- Resources of the Subaccount shall consist of amounts contributed to the Subaccount by the World Bank and earnings that accrue as a result of investment of these amounts (net of any costs associated with such investments).
- The World Bank and the Fund shall reach understandings upon operational features related to the activities to be financed from the Subaccount, consistent with the understandings that have been reached between the World Bank and the Fund and the Instrument governing the SFA.
- Resources will be placed in the Subaccount by the World Bank on the basis of Letters of Understandings signed between the World Bank and the Fund relating to specific activities to be undertaken.
- The Subaccount will permit the World Bank to transfer resources from the World Bank Subaccount to any multidonor subaccount under the SFA.

### Cost Recovery and Fund Management
- 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.

### Conclusion and Request
- The essential terms and conditions of the Subaccount are consistent with the terms and conditions of the SFA Instrument, and the activities to be financed from the Subaccount are consistent with the purposes of the Fund.
- 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 March 21, 2011.*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2011/_032111.pdf_