Selected Decisions and Selected Documents of the IMF, Thirty- Eighth Issue -- Implementation of Burden Sharing in FY 2001

Prepared by the Legal Department of the IMF
As updated as of February 29, 2016

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ARTICLE V, SECTIONS 8 AND 9
Burden Sharing

IMPLEMENTATION OF BURDEN SHARING IN FY 2001

Section I. Principles of Burden Sharing

  • 1. The financial consequences for the Fund, which stem from the existence of overdue financial obligations shall be shared between debtor and creditor member countries.

  • 2. The sharing shall be applied in a simultaneous and symmetrical fashion.

Section II. Determination of the Rate of Charge

The rate of charge referred to in Rule I-6(4) shall be adjusted in accordance with the provisions of Sections III and IV.

Section IV. Adjustment for Deferred Charges

  • 1.

    • (a) If income from charges becomes deferred during an adjustment period as defined in (c), notwithstanding Rule I-6(4)(a) and (b) and Rule I-10, the rate of charge referred to in Rule I-6(4), and, subject to the limitation in (b), the rate of remuneration prescribed in Rule I-10, shall be adjusted in accordance with the provisions of this paragraph, so as to generate, in equal amounts, an additional amount of income equal to the amount of deferred charges. For the purposes of this provision, special charges on overdue financial obligations under Decision No. 8165-(85/189)G/TR, adopted December 30, 1985, shall not be taken into account.

    • (b) No adjustment in the rate of remuneration under this paragraph shall be carried to the point where the average remuneration coefficient would be reduced below 85 percent for an adjustment period.

    • (c) The adjustments under this paragraph shall be made as of the first day after each financial quarter beginning May 1, August 1, November 1 and February 1:

    • shortly after July 31 for the period May 1 to July 31;

    • shortly after October 31 for the period August 1 to October 31;

    • shortly after January 31 for the period from November 1 to January 31;

    • shortly after April 30 for the period from February 1 to April 30.

  • 2.

    • (a) An amount equal to the proceeds of any adjustment for deferred charges shall be distributed, in accordance with the provisions of this paragraph, to members that have paid additional charges or have received reduced remuneration, when, and to the extent that, charges, the deferral of which had given rise to the same adjustment, are paid to the Fund. Distribution under this provision shall be made quarterly.

    • (b) Distribution under (a) shall be made in proportion to the amounts that have been paid or have not been received by each member as a result of the respective adjustments.

    • (c) If a member that is entitled to a payment under this paragraph has any overdue obligation to the Fund in the General Department at the time of payment, the member’s claim under this paragraph shall be set off against the Fund’s claim in accordance with Decision No. 8271-(86/74), adopted April 30, 1986, or any subsequent decision of the Fund.

    • (d) Notwithstanding Paragraph 1 (a) above, the rate of charge and the rate of remuneration determined under this section shall be rounded to three decimal places, provided that an adjustment of at least 0.1 basis point shall be made to both the rate of charge and the rate of remuneration, subject to subparagraph (e) below.

    • (e) If the amounts generated as a result of paragraph (2)(d) above exceed or fall short of the amounts to be generated from adjustments to the rate of charge or the rate of remuneration under paragraph 1(a) above for the relevant quarterly period, then any excess or shortfall from adjustments to the rate of charge 11 or the rate of remuneration shall be applied, respectively, to the amount to be generated from the adjustment to the same rate for the following quarterly period. No adjustment shall be made if any excess amount generated from the previous quarterly period is equal to or exceeds the amount needed in the following quarterly period. (EBS/09/202, 12/8/09) (EBS/09/202, 12/08/09)

Section V. Review

The operation of this decision shall be reviewed when the adjustment in the rate of remuneration reduces the remuneration coefficient to the limit set forth in paragraphs 2(b) of Section III and 1(b) of Section IV.

Decision No. 12189-(00/45),

April 28, 2000,

effective May 2, 2000,

as amended by Decision Nos. 13911-(07/35), April 25, 2007,

14496-(09/125), December 15, 2009, and

15676-(14/94),

October 24, 2014

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