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ARTICLE V, SECTION 2(b) |
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Technical and Financial Services | ||||
Financial Services | ||||
Poverty Reduction and Growth Trust | ||||
Poverty Reduction and Growth Trust Poverty Reduction and Growth Trust
ANNEX Instrument to Establish the Poverty Reduction and Growth Trust Introductory Section To help fulfill its purposes, the International Monetary Fund (hereinafter called the “Fund”) has adopted this Instrument establishing the Poverty Reduction and Growth Trust (hereinafter called the “Trust”), which shall be administered by the Fund as Trustee (hereinafter called the “Trustee”). The Trust shall be governed by and administered in accordance with the provisions of this Instrument. Section I. General Provisions Paragraph 1. Purposes The Trust shall assist in fulfilling the purposes of the Fund by providing:
Paragraph 2. Accounts of the Trust The operations and transactions of the Trust shall be conducted through a General Loan Account, an ECF Loan Account, a SCF Loan Account, and a RCF Loan Account (the latter four accounts collectively referred to herein as the “Loan Accounts”), a Reserve Account, a General Subsidy Account, an ECF Subsidy Account, a SCF Subsidy Account, a RCF Subsidy Account, an ESF Subsidy Account, and a Subsidy Reserve Account (the latter six accounts collectively referred to herein as the “Subsidy Accounts”), and a Deposit and Investment Account. The resources of the Trust shall be held separately in these Accounts. Paragraph 3. Unit of Account The SDR shall be the unit of account for commitments, loans, and all other operations and transactions of the Trust, provided that commitments of resources to the Subsidy Accounts may be made in currency. Paragraph 4. Media of Payment of Contributions and Exchange of Resources
Section II. Trust Loans Paragraph 1. Eligibility and Conditions for Assistance
A member that is included in the list of members annexed to
(c) Assistance under the SCF
(d) Assistance under the RCF
(e) General Provisions
Paragraph 2. Amount of Assistance
(c) [Ed. Note: The sub-limit on precautionary use of the SCF was repealed by Decision No. 16516-(19/42), May 24, 2019.] Paragraph 3. Disbursements
Paragraph 4. Terms of Loans
Paragraph 5. Availability Fee A charge in the amount of 0.15 percent per annum shall be payable on the full amount of disbursements available during each six-month period under an SCF arrangement, or any shorter period that is remaining under an SCF arrangement, to the extent that such available disbursements were not drawn by the member. The charge shall be paid to the SCF Subsidy Account five days after the end of each relevant period. Payment of the availability fee shall normally be made in SDRs but can also be made in a freely usable currency as decided by the Trustee. The Managing Director shall make the necessary arrangements for the use of SDRs for payment of the availability fee. Paragraph 6. Modifications Any modification of these provisions will affect only loans made after the effective date of the modification, provided that modification of the interest rate shall apply to interest accruing after the effective date of the modification. Section III. Borrowing for the Loan Account Paragraph 1. Resources
Paragraph 2. Borrowing Authority The Trustee may borrow resources for the Loan Accounts on such terms and conditions as may be agreed between the Trustee and the respective creditors, subject to the provisions of this Instrument. For this purpose, the Managing Director of the Trustee is authorized to enter into borrowing agreements and agree to their terms and conditions with creditors to the Loan Accounts of the Trust. Paragraph 3. Commitments Commitments for drawings under borrowing agreements to the Loan Accounts of the Trust that were entered into before November 30, 1993, shall extend through December 31, 1997, and under borrowing agreements that are entered into after November 30, 1993, shall extend through December 31, 1999. The drawdown period under borrowing agreements to the Loan Accounts of the Trust entered into or amended after September 19, 2001, shall normally extend through December 31, 2018. The drawdown period under borrowing agreements to the Loan Accounts of the Trust entered into or amended after May 31, 2014, shall normally extend through December 31, 2029. The drawdown period may be extended by mutual agreement between the Trustee and the creditor. The Managing Director is authorized to conclude such agreements on behalf of the Trustee. Paragraph 4. Drawings under Borrowing Agreements
Paragraph 5. Payments of Principal and Interest
Section IV.A. Subsidy Accounts Paragraph 1. Resources
(b) The resources held in the ECF Subsidy Account shall consist of: (f) The resources held in the Subsidy Reserve Account shall consist of: Paragraph 2. Donations The Trustee may accept donations of resources for any of the Subsidy Accounts on such terms and conditions as may be agreed between the Trustee and the respective donors, subject to the provisions of this Instrument. To the extent possible, annual contributions should be made before April 30 of each year. For this purpose, the Managing Director of the Trustee is authorized to accept donations of resources and agree to their terms and conditions with donors to the Subsidy Accounts of the Trust. Paragraph 3. Borrowing The Trustee may, in exceptional circumstances, borrow resources for any of the Subsidy Accounts from official lenders on such terms and conditions as may be agreed between the Trustee and the lenders, in order:
Paragraph 4. Authorized Use of Subsidy Accounts
Paragraph 5. Calculation of Subsidy
Paragraph 6. Termination arrangements
Section IV.B. Deposit and Investment Account Paragraph 1. Purpose and Resources The purpose of the Deposit and Investment Account is to provide a separate vehicle under which the Trust can borrow resources to generate net investment earnings for the benefit of the Subsidy Reserve Account or, at the request of a contributor, the General Subsidy Account. The resources held in the Deposit and Investment Account shall consist of the proceeds from deposit and other investment agreements with contributors and the net earnings on the investment proceeds. Paragraph 2. Borrowing for the Deposit and Investment Account
Paragraph 3. Use of Resources
Paragraph 4. Termination Arrangements Upon completion of the subsidy operations authorized by this Instrument, the Trustee shall wind down the affairs of the Deposit and Investment Account. Contributors shall be repaid the principal of their deposits or investments and any remaining investment earnings or losses attributed to it. Paragraph 5. Repayment of the principal amount and payment of interest to a contributor Repayment of the principal amount and any payment of interest to a contributor on any borrowing for the Deposit and Investment Account, including repayment upon maturity, early repayment in accordance with Section IV.B, paragraph 2(b), or repayment in accordance Section IV.B, paragraph 4, shall be made exclusively from resources attributed to the deposit or other investment of this principal amount and the net investment earnings thereon, net of the cumulative interest previously paid to the contributor. Section V. Reserve Account Paragraph 1. Resources The resources held in the Reserve Account shall consist of:
Paragraph 2. Use of resources
Paragraph 3. Payments to the Reserve Account Any repayment of principal under Trust loans, to the extent that repayment to a creditor has been made from the Reserve Account due to differences in timing between scheduled principal repayments to the creditor and principal repayments under Trust loans, any payments of overdue principal or interest or interest thereon under Trust loans, and any payments of interest under Trust loans to the extent that payment has been made to a creditor from the Reserve Account, shall be made to the Reserve Account. Paragraph 4. Review of resources If resources in the Reserve Account are, or are determined by the Trustee likely to become, insufficient to meet the obligations of the Trust that may be discharged from the Reserve Account as they become due and payable, the Trustee shall review the situation in a timely manner. Paragraph 5. Reduction of resources and liquidation
Section VI. Transfer of Claims Paragraph 1. Transfers by creditors
Paragraph 2. Transfers among electing creditors
Section VII. Administration of the Trust Paragraph 1. Trustee
Paragraph 2. Separation of assets and accounts, audit and reports
Paragraph 3. Investment of resources
Section VIII. Period of Operation and Liquidation Paragraph 1. Period of operation The Trust established by this Instrument shall remain in effect for as long as is necessary, in the judgment of the Fund, to conduct and to wind up the business of the Trust. Paragraph 2. Liquidation of the Trust
Section IX. Amendment of the Instrument The Fund may amend the provisions of the Instrument, except this Section and Section I, paragraphs 1 and 2; Section III, paragraphs 4 and 5; Section IV.A, paragraphs 4 and 6; Section IV.B; Section V; Section VI; Section VII, paragraph 2(a) and (b); and Section VIII, paragraph 2(b). APPENDIX I Misreporting and Noncomplying Disbursements Under Poverty Reduction and Growth Facility and Poverty Reduction and Growth Trust Facilities—Provisions on Corrective Action
APPENDIX II Procedures for Addressing Overdue Financial Obligations to the Poverty Reduction and Growth Trust The following procedures aim at preventing the emergence or accumulation of overdue financial obligations to the Poverty Reduction and Growth Trust (the “Trust”) and at eliminating existing overdue obligations. These procedures will be implemented whenever a member has failed to make a repayment of principal or payment of interest to the Trust (“financial obligation”).
Removal from the list of PRGT-eligible countries Declaration of noncooperation with the Trust
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Prepared by the Legal Department of the IMF
Note
- Page number references in the text are to the Forty-Second issue hard copy volume.