## Framework Administered Account for Selected Fund Activities: Africa Training Institute Subaccount for Selected Fund Activities (_042213)

## Source details

**Canonical URL:** [Framework Administered Account for Selected Fund Activities: Africa Training Institute Subaccount for Selected Fund Activities (_042213)](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2013/_042213.pdf)

## Other formats

- [Markdown version](/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2013/_042213.pdf.md)
- [Structured JSON version](/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2013/_042213.pdf.json)

---

### Background
- In March 2009, the Fund established a new Framework Administered Account to administer external financial resources for selected Fund activities (the “SFA Instrument”).
- Decision No. 14294-(09/31), adopted March 27, 2009, relates to the establishment of the SFA Instrument.
- This paper requests Executive Board approval to establish the Africa Training Institute Subaccount for Selected Fund Activities (the “Subaccount”) under the terms of the SFA Instrument.
- Mauritius has agreed to host a training center directed at strengthening capacity in macroeconomic management for sub-Saharan Africa.

### Purpose and 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 macroeconomic management in sub-Saharan Africa.
- Activities respond to member countries’ needs to strengthen capacity to analyze macroeconomic conditions and to formulate and implement effective macroeconomic and financial policies to support strong and sustained growth and deeper integration into the global economy.

### Essential terms and conditions (established by the Managing Director)
- a. The resources of the Subaccount shall consist of amounts contributed to the Subaccount by donors and earnings that accrue as a result of the investment of these amounts (net of any costs associated with such investments). 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 macroeconomic management in sub-Saharan Africa.
- b. 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.
- c. 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.
- d. 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.
- e. A Contributor may withdraw from the Subaccount, and receive a retransfer of its net contributions, without precipitating the termination of the Subaccount.
- f. To help defray the expenses incurred by the Fund in the management of the Subaccount, reimbursement equal to 7 percent of the expenses financed by the Subaccount will be paid to the Fund from the Subaccount.

### Donor participation and operations
- Contributors place resources into the Subaccount via Letters of Understandings with the Fund.
- Contributors may transfer resources from any bilateral subaccount under the SFA into the Subaccount.
- Contributors may join the Subaccount at any time and their consent constitutes concurrence to subsequent contributors joining under the same terms.
- Contributors may withdraw and receive a retransfer of net contributions without causing termination of the Subaccount.

### Financial management and fund administration fees
- Subaccount resources include donor contributions plus investment earnings (net of investment-associated costs).
- The Fund will receive reimbursement equal to 7 percent of the expenses financed by the Subaccount to defray management expenses.

### Recommendation
- 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 Institute for Capacity Development; Approved by Sean Hagan, Andrew Tweedie, and Sharmini Coorey; April 23, 2013.*

---


_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2013/_042213.pdf_