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| Article V, Sections 8 and 9 | ||||
| Charges and Remuneration | ||||
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Charge on Purchases in Credit Tranches and Under Extended Fund Facility and SLL—Amendment to PRGT Instrument 1.Subject to paragraph 2, the rate of charge under Article V, Section 8(b) on the Fund’s combined holdings of a member’s currency in excess of 300 percent of the member’s quota in the Fund resulting from purchases in the credit tranches, under the Short-Term Liquidity Line and under the Extended Fund Facility shall be 200 basis points per annum above the rate of charge referred to in Rule I-6(4) as adjusted for purposes of burden sharing; and for the Fund’s combined holdings resulting from purchases in the credit tranches and under the Extended Fund Facility, it shall also include an additional 75 basis points per annum on such holdings in any case where they are outstanding for more than 36 months in the case of purchases in the credit tranches, or 51 months in the case of purchases under the Extended Fund Facility. 2.The relevant threshold in paragraph 1 shall change to 200 percent instead of 300 percent for any member from the first occurring of (i) its quota increase under the Sixteenth General Review of Quotas becoming effective or (ii) 35 days after the Executive Board has determined that the general effectiveness conditions for the Sixteenth General Review of Quota have been met. (SM/24/256, 09/27/24) 3. A member with credit outstanding in the credit tranches or under the Extended Fund Facility, or with an arrangement in effect on February 17, 2016, may notify the Fund by February 25, 2016 that it elects to have the rate of charge on such existing holdings of the member’s currency, and on holdings of the member’s currency arising from future purchases under such an effective arrangement, to be based on the threshold of 300 percent member’s quota in effect prior to its quota increase under the 14th General Review of Quotas, instead of the threshold of 187.5 percent under paragraph 1 above. Absent such notification, the rate of charge shall be computed pursuant to paragraphs 1 and 2 above. If a member has made an election under this paragraph 2, such election shall cease to apply as of the date of the Fund’s approval of any new access to the Fund’s general resources for that member, including an augmentation of an arrangement in effect on February 17, 2016, and the rate of charge under this Decision shall be computed for all holdings of the member’s currency in the credit tranches or under the Extended Fund Facility pursuant to paragraph 1 above. 4. This Decision shall be reviewed on an as needed basis in accordance with Decision No. 13814-(06/98), adopted November 15, 2006, and Decision No. 15764-(15/39), adopted April 23, 2015, on implementing streamlining of policy reviews. (SM/16/10, Sup. 3, 02/16/16) Decision Nos. 12346-(00/117), November 28, 2000, as amended by Decision Nos. 14285-(09/29), March 24, 2009, 15943-(16/14), February 17, 2016, Decision F in 16747-(20/43), April 14, 2020, and 17824-(24/97), October 11, 2024 ANNEX For purposes of paragraph 2(a)(ii) of Decision No. 14285, the framework for surcharges on purchases in the credit tranches and under the Extended Fund Facility that was in effect from November 28, 2000 until the date of Decision No. 14285 is as follows: “The rate of charge under Article V, Section 8(b) on the Fund’s combined holdings of a member’s currency in excess of 200 percent of the member’s quota in the Fund resulting from purchases in the credit tranches and under the Extended Fund Facility made after November 28, 2000 shall be 100 basis points per annum above the rate of charge referred to in Rule I-6(4) as adjusted for purposes of burden sharing, provided that the rate on such holdings in excess of 300 percent of the member’s quota shall be 200 basis points per annum above the rate of charge referred to in Rule I-6(4) as adjusted for purposes of burden sharing.” (SM/09/69, Sup. 2, 03/24/09) | ||||
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