Selected Decisions and Selected Documents of the IMF, Thirty- Eighth Issue -- Catastrophe Containment and Relief Trust Fund—Establishment and Related Matters

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

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ARTICLE V, SECTION 2(b)
Technical and Financial Services
Financial Services

CATASTROPHE CONTAINMENT AND RELIEF TRUST FUND—ESTABLISHMENT AND RELATED MATTERS

  • 1. Pursuant to Article V, Section 2(b), the Fund adopts the Instrument to Establish the Catastrophe Containment and Relief Trust (“CCR Trust” or “Trust”) that is annexed as Attachment I to this decision. It is expected that the Fund shall review the financing and operations of the CCR Trust at least every five years.

  • 2. …

  • 3. In accordance with Article V, Section 12(i), the General Resources Account of the Fund shall be reimbursed annually by the CCR Trust, from resources transferred to the CCR Trust from the SDA, in respect of the expenses of administering SDA resources in the CCR Trust, other than expenses already attributed to other accounts or trusts administered by the Fund, or to the General Resources Account.

  • 4. In accordance with Article XVII, section 3, the Fund prescribes that:

    • (a) an SDR Department participant or prescribed holder, by agreement with an SDR Department participant or prescribed holder and at the instruction of the Fund, may transfer SDRs to that participant or prescribed holder in effecting a transfer to or from (i) the CCR Trust, or (ii) the Account and subaccounts established pursuant to Section III, paragraph 4(b) of the CCR Trust Instrument; or in effecting a payment due to or by the Fund in connection with financial operations under the CCR Trust or the referred accounts; and

    • (b) Operations pursuant to these prescriptions shall be recorded in accordance with Rule P-9. (SM/10/97, Sup. 1, 6/23/10) (SM/10/97, Sup. 1, 06/23/10)

Decision No. 14649-(10/64),

June 25, 2010,

as amended by Decision No. 15708-(15/12),

February 4, 2015

Attachment A

Instrument to Establish the Catastrophe Containment and Relief Trust

To help fulfill its purposes, the International Monetary Fund (the “Fund”), pursuant to Article V, Section 2(b) of the Fund’s Articles of Agreement, has adopted this Instrument to Establish the Catastrophe Containment and Relief Trust (the “CCR Trust” or “Trust”), which shall be administered by the Fund as Trustee (the “Trustee”). The Trust shall be governed by, and administered in accordance with, the following provisions:

Section I. General Provisions

Paragraph 1. Purposes

The Trust shall assist in fulfilling the purposes of the Fund by providing balance of payments assistance in the form of grants (“Trust grants”) to eligible low-income members that qualify for assistance as set forth in Section III of this Instrument. Such members may request balance of payments assistance in accordance with the terms of this Instrument under either:

  • (a) the Post-Catastrophe Relief Window (PCR window), in the form of grants that shall be used to deliver temporary relief of debt service payments (interest and principal) on such members’ eligible debt (“debt flow relief”) and, in appropriate cases, permanent debt relief on such debt (“debt stock relief”), where the member experienced a Qualifying Catastrophic Disaster, subject to the terms of this Instrument; or

  • (b) the Catastrophe Containment Window (CC window), in the form of grants that shall be used to provide immediate debt relief on eligible debt (“immediate debt relief”), where the member experienced a Qualifying Public Health Disaster subject to the terms of this Instrument.

Paragraph 2. Trust Accounts and Resources

  • (a) For its operations and transactions the Trust shall have a General Account, a PCR Window Account and a CC Window Account, collectively referred to as “the Accounts.” Within each Account, the Trustee may establish such sub-accounts as it deems necessary for the administration of the resources of the Trust.

  • (b) The resources held in the General Account shall consist of:

    • (i) transfers from the Special Disbursement Account in accordance with Section V, paragraph 2 of the Multilateral Debt Relief Initiative-I Trust established pursuant to Decision No. 13588-(05/99) MDRI, as amended by Decision No. 14649-(10/64);

    • (ii) transfers from the Special Disbursement Account in accordance with paragraph 8 of Decision No. 15708-(15/12);

    • (iii) grant contributions made to the Trust for the General Account;

    • (iv) the proceeds of loans, deposits and other types of investments made by contributors with the Trust to generate income for the General Account; and

    • (v) net earnings from investment of resources held in the General Account.

  • (c) The resources held in the PCR Window Account shall consist of:

    • (i) grant contributions made to the Trust for the purposes of the PCR Window Account;

    • (ii) the proceeds of loans, deposits and other types of investments made by contributors with the Trust to generate income for the PCR Window Account; and

    • (iii) net earnings from investment of resources held in that Account.

  • (d) The resources held in the CC Window Account shall consist of:

    • (i) grant contributions made to the Trust for the CC Window Account;

    • (ii) the proceeds of loans, deposits and other types of investments made by contributors with the Trust to generate income for the CC Window Account; and

    • (iii) net earnings from investment of resources held in that Account.

  • (e) For the purpose of grant disbursements as set forth in Section III, paragraph 4 of this Instrument, the Trustee may draw upon resources in the General Account for purposes of providing relief under the PCR window and the CC window, provided that it shall draw first (i) under the PCR Window Account for purposes of PCR window grant assistance, and (ii) under the CC Window Account for purposes of CC window grant assistance.

Paragraph 3. Unit of Account

The SDR shall be the unit of account for commitments and all other operations and transactions of the Trust, provided that commitments for contributions may also be made in currency.

Paragraph 4. Media of Payment of Contributions and Exchange of Resources

  • (a) Resources provided to the Accounts shall be in any currency.

  • (b) Payments by the Trust shall be made in U.S. dollars or such other media as may be agreed between the Trustee and the payee.

  • (c) Contributions to the Trust may also be made in or exchanged for SDRs in accordance with such arrangements as may be made by the Trust for the holding and use of SDRs.

  • (d) The Trustee may exchange any of the resources of the Trust for other resources.

Section II. Contributions to the Trust

The Trustee may accept contributions of resources for the Accounts of the Trust on such terms and conditions as may be agreed between the Trustee and the respective contributors, subject to the provisions of this Instrument. For this purpose, the Managing Director of the Trustee is authorized to accept grants and enter into loan, deposit, or other types of investment agreements with the contributors to the Trust.

Section III. Trust Grants

Paragraph 1. Eligibility for Assistance

In order to be eligible for relief under the PCR window or the CC window of the Trust, a member shall meet the following requirements:

  • (a) the member is PRGT-eligible (i.e., is included in the list of members annexed to Decision No. 8240-(86/56) SAF, as amended); and

  • (b) the member has an annual per capita gross national income, as assessed by the Trustee in accordance with paragraph 1(E) of Decision No. 14521-(10/3), that is below the International Development Association operational cut-off or, for a member qualifying as a “small country” under the definition set forth in paragraph 1(D) of that decision, is less than twice the International Development Association operational cut-off.

Paragraph 2. Post-Catastrophe Relief Window (PCR Window)

  • (a) Qualification for Assistance

    The Trustee shall determine whether an eligible member requesting assistance under the PCR Window qualifies under this Instrument for debt flow relief and, in appropriate cases, for debt stock relief, in accordance with the respective criteria set forth below:

    • (i) Debt Flow Relief

      An eligible member shall qualify for debt flow relief under this window when the Trustee determines that the member is experiencing a balance of payments need that arises from a Qualifying Catastrophic Disaster. For purposes of this Instrument, a Qualifying Catastrophic Disaster shall mean an exceptional natural disaster occurring any time after January 1, 2010 that the Trustee determines, based on available information, including preliminary estimates, has had the following effects on the member: (I) a large portion of the member’s population has been directly affected (i.e., deceased, injured, and/or displaced), such portion normally being at least one third of the population; and (II) a large portion of the member’s economy has been directly affected, as evidenced by either (a) the destruction of more than a quarter of the member’s productive capacity measured by destroyed structures, impact on key economic sectors and public institutions, and other relevant early indicators, or (b) damage in an amount exceeding 100 percent of the member’s GDP prior to the Qualifying Catastrophic Disaster.

    • (ii) Debt Stock Relief

      An eligible member that qualifies for debt flow relief under this window shall also qualify for debt stock relief when the Trustee determines, based on available information, that: (I) the member has substantial balance of payments needs that have been created or exacerbated by the Qualifying Catastrophic Disaster and the subsequent economic recovery efforts and are expected to persist beyond the period covered by debt flow relief; and (II) the resources that would be freed up by the debt stock relief would be critical for meeting these needs. For purposes of (II), resources would normally be considered critical for meeting the member’s needs only if, based on an updated debt sustainability analysis conducted after the Qualifying Catastrophic Disaster, the member has a high level of debt in relation to GDP or exports prior to the delivery of any debt relief after the Qualifying Catastrophic Disaster, typically resulting in an assessment that the member is in debt distress or has a high risk of debt distress. Decisions on a member’s qualification for debt stock relief will normally be adopted by the Trustee in the period beginning six months after the occurrence of the Qualifying Catastrophic Disaster and ending in all cases no later than twenty-four months after such disaster.

  • (b) Amount and Delivery of Assistance

    The Trustee shall deliver assistance to eligible members that it has determined qualify for debt flow or debt stock relief in accordance with the following terms:

    • (i) Debt Flow Relief

      Upon a determination that a member qualifies for debt flow relief pursuant to paragraph 2(a)(i) of this Section, the Trustee shall disburse to the subaccount established for the benefit of the member pursuant to paragraph 4(b) below, a Trust grant in an amount equivalent to all payments on the member’s eligible debt falling due within the period beginning on the date of the debt flow relief decision and ending two years after the occurrence of the Qualifying Catastrophic Disaster. For the purposes of this paragraph, eligible debt shall be defined as all of the member’s debt to the Fund (including to the Fund as Trustee) that was outstanding as of the date of the Qualifying Catastrophic Disaster and in respect of which the member had made regular scheduled debt service payments (interest and principal) before the Qualifying Catastrophic Disaster, plus any disbursements by the Fund (including by the Fund as Trustee) to the member made normally within four months following such disaster, but shall exclude any debt to the Fund that is scheduled to be repaid with assistance under other debt relief trusts administered by the Fund or under paragraph 3 of this Section.

    • (ii) Debt Stock Relief

      • I. Upon a determination that a member qualifies for debt stock relief pursuant to paragraph 2(a)(ii) of this Section, the Trustee shall commit an amount up to which the Trust will disburse a Trust grant for debt stock relief to the member pursuant to subparagraph 2(b)(ii)(II) below. The amount committed shall be the amount needed to effect the early repayment of the member’s eligible debt that is outstanding as of the second anniversary of the occurrence of the Qualifying Catastrophic Disaster. The amount actually disbursed pursuant to subparagraph 2(b)(ii)(II) below shall be the amount needed to effect the early repayment of the member’s eligible debt that is outstanding as of the second anniversary of the occurrence of the Qualifying Catastrophic Disaster or on the date of the Trustee’s decision to disburse debt stock relief, whichever is later.

      • II. The Trustee shall disburse debt stock relief in the amount specified in subparagraph 2(b)(ii)(I) above to the subaccount established for the benefit of the member pursuant to paragraph 4(b) below as of the date the Trustee determines that: (a) a concerted effort exists within the international community to provide similar debt relief to the member, which shall be evidenced by satisfactory assurances regarding the debt relief to be provided by the member’s other official sector creditors whose debts together account for at least eighty percent of the member’s total sovereign external debt outstanding to official creditors (less amounts due to the Fund) at the time of the Qualifying Catastrophic Disaster, (b) the member has provided assurances that it will cooperate with the Trustee in an effort to find solutions to its balance of payments problems and will refrain from any inappropriate policies that could compound these problems, and (c) taking into account the member’s implementation capacity after the Qualifying Catastrophic Disaster, the member has established a track record of adequate macroeconomic policies, normally for a period of at least six months immediately preceding the Trustee’s decision to disburse debt stock relief.

Paragraph 3. Catastrophe Containment Window (CC Window)

  • (a) Qualification for Assistance

    • (i) An eligible member shall qualify for immediate debt relief under the CC window when the Trustee determines, that (I) the member is experiencing a balance of payments need arising from a Qualifying Public Health Disaster that has occurred in the member’s territory; and (II) the macroeconomic policy framework put in place by the member to address the balance of payments need created by the public health disaster and the ensuing policy response is appropriate.

    • (ii) For purposes of this Instrument, a Qualifying Public Health Disaster arises where:

      • (I) a life-threatening epidemic has a sustained presence and has spread across several areas of the member’s territory, causing significant economic disruption and creating a balance of payments need. Based on available information (which may take the form of preliminary estimates) and for the purposes of this subparagraph (I), the magnitude of economic disruption that has occurred and is projected to occur in the future would normally be characterized by at least: (a) a cumulative loss of real GDP of 10 percent; or (b) a cumulative loss of revenue and increase of expenditures equivalent to at least 10 percent of GDP. Such economic disruption will be measured relative to staff estimates made prior to the onset of the public health disaster and would reflect, inter alia, sharp curtailments, for disease containment purposes, on the movement of people and products within the country and related declines in production, exports, tax revenues, and international visitors, and also surges in government outlays on relief and containment efforts; and

      • (II) the epidemic has the capacity to spread, or is already spreading, rapidly both within and across countries, producing or threatening, significant economic disruption and loss of life.

    • (iii) In making a determination of the occurrence of a Qualifying Public Health Disaster, the Fund may be guided by assessments of the health situation and outlook made by national authorities, the World Health Organization, the World Bank, and other relevant agencies.

  • (b) Request for CC Window Assistance

    A member requesting assistance under the CC window shall describe in a letter the nature of the public health disaster and the balance of payments needs arising from it, the measures being taken to contain the disaster, including budgetary reallocations, and the macroeconomic policies it is pursuing or plans to pursue to address its balance of payment difficulties.

  • (c) Amount and Delivery of Assistance

    • (i) Subject to subparagraph 3(c)(ii) below, upon a determination that a member qualifies for assistance pursuant to paragraph 3(a) of this Section, the Trustee shall disburse to a subaccount established for the benefit of the member pursuant to paragraph 4(b) below, a Trust grant in the amount, up to a limit of 20 percent of the member’s quota in the Fund, that is necessary to repay the member’s eligible debt to the Fund. For the purposes of this paragraph, eligible debt shall be defined as all of the member’s debt to the Fund (including to the Fund as Trustee) that was outstanding as of the date of the determination by the Fund that the member is qualified to receive grant assistance under this window, and in respect of which the member had made regular scheduled debt service payments (principal and interest) before such determination, but shall exclude any debt to the Fund that is scheduled to be repaid with assistance under other debt relief trusts administered by the Fund or under paragraph 2 of this Section.

    • (ii) The Trustee will approve grant assistance beyond the limit set in subparagraph (i) of paragraph 3(c) above upon the Trustee’s determination of any of the following circumstances:

      • I. That debt service obligations on the member’s eligible debt to the Fund constitute an exceptional burden on the near-term external payments position of the requesting member. In this case, the Trustee will approve grant assistance in an amount necessary to eliminate the exceptional burden. In making the determination of the exceptional burden, the Trustee shall take into account, inter alia, the member’s overall external position, the projected drain of Fund debt service payments on the level of the member’s reserves, the share of Fund debt service (net of grant support) in the member’s total official debt service payments, and the scope and merits of addressing the exceptional burden through additional concessional lending. The amount of grant assistance provided under this sub-paragraph shall not exceed the total amount of eligible debt falling due to the Fund during the relevant two-year period.

      • II. That there is a broad-based international effort to provide debt service flow relief to the member to ease near-term balance of payments pressures, and a strong expectation that additional assistance from the Fund would help catalyze support to the member from a significant majority of official bilateral creditors on similar terms. In such circumstances, the Trustee will approve grants in an amount that is necessary to repay the full amount of the member’s eligible debt falling due to the Fund within the period during which bilateral official creditors are expected to provide debt relief, up to a maximum of two years from the date of the decision approving grant assistance; or

      • III. That, in the circumstance of a member rated at high risk of debt distress, or in debt distress, under the joint Bank-Fund Debt Sustainability Framework for Low-Income Countries, additional grant assistance is warranted to prevent a significant deterioration of debt indicators (relative to pre-epidemic projections) resulting from the country taking on new debt to respond to the epidemic. In these circumstances, such additional grant support will be provided in the amount that is needed to ensure that eligible debt to the Fund that has been incurred in response to the Qualifying Public Health Disaster has a grant element of 80 percent. For the purposes of this subparagraph, eligible debt that has been incurred in response to the Qualifying Public Health Disaster shall consist of amounts disbursed under the Poverty Reduction and Growth Trust or from the General Resources Account after the onset of the epidemic in the requesting member country, which were made available to address the balance of payments needs created by the Qualifying Public Health Disaster, and before the Fund’s determination under paragraph 3(a) of this Section.

For the purposes of this subparagraph, in cases where the Managing Director sees merit in providing such additional support, the Managing Director will consult with the Executive Board meeting in an informal session before making a proposal for consideration by the Executive Board.

Paragraph 4. Disbursements

  • (a) All disbursements of Trust grants shall be subject to the availability of resources to the Trust.

  • (b) The proceeds of Trust grants approved under the CCR Trust shall be paid into a subaccount for the benefit of the relevant member that is maintained within a separate account (the “Umbrella Account”) established and administered by the Trustee pursuant to this subparagraph, as follows:

    • (i) The Trustee shall use the proceeds disbursed as debt flow relief under the PCR window (including any income from investments of such proceeds) to make payments on the member’s eligible debt as they fall due within the period specified in paragraph 2(b)(i) above. The Trustee shall use the proceeds disbursed as debt stock relief under the PCR window as set forth in paragraph 2(b)(ii) promptly after such disbursement to effect the early repayment of the member’s eligible debt as of the date specified in the last sentence of paragraph 2(b)(ii)(I) above. If the amounts disbursed by the Trustee to the subaccount exceed the amounts needed to effect payments falling due on, and early repayment of, the member’s eligible debt pursuant to the terms of this Instrument, then the Trustee shall be authorized to retransfer to the Trust an amount equivalent to such excess. Such retransfers will be made to the specific CCR Trust account from which the resources were drawn.

    • (ii) The Trustee shall use the proceeds disbursed for CC Window grant assistance under paragraph 3(c) promptly after such disbursement to effect the early repayment of an equivalent amount of the member’s eligible debt, with the repayments being attributed to the obligations in the order in which they fall due. If the amounts disbursed by the Trustee to the subaccount exceed the amounts needed to effect early repayment of the member’s eligible debt pursuant to the terms of the CC Window, then the Trustee shall be authorized to retransfer to the Trust an amount equivalent to such excess. Such retransfers will be made to the specific CCR Trust account from which the resources were drawn.

    • (iii) The terms and conditions for the operation of the Umbrella Account shall be determined by the Trustee.

Paragraph 5. Modifications

Any modification of the provisions of this Section will affect only Trust grants made after the effective date of the modification.

Section IV. Administration of the Trust

Paragraph 1. Trustee

  • (a) The Trust shall be administered by the Fund as Trustee. Decisions and other actions taken by the Fund as Trustee shall be identified as taken in that capacity.

  • (b) Subject to the provisions of this Instrument, the Fund in administering the Trust shall apply the same rules as apply to the operation of the General Resources Account of the Fund.

  • (c) The Trustee, acting through its Managing Director, is authorized:

    • (i) to make all arrangements, including establishment of accounts in the name of the International Monetary Fund, which shall be accounts of the Fund as Trustee, with such depositories of the Fund as the Trustee deems necessary; and

    • (ii) to take all other administrative measures that the Trustee deems necessary to implement the provisions of this Instrument.

Paragraph 2. Separation of Assets and Accounts, Audits and Reports

  • (a) The resources of the Trust shall be kept separate from the property and assets of all other accounts of the Fund, including other administered accounts, and shall be used only for the purposes of the Trust in accordance with this Instrument.

  • (b) The property and assets held in the other accounts of the Fund shall not be used to discharge liabilities or to meet losses arising out of the administration of the Trust. The resources of the Trust shall not be used to discharge liabilities or to meet losses arising out of the administration of the other accounts of the Fund.

  • (c) The Fund shall maintain separate financial records and prepare separate financial statements for the Trust in accordance with International Financial Reporting Standards.

  • (d) The external audit firm selected under Section 20 of the Fund’s By-Laws shall audit the financial transactions and records of the Trust. The audit shall relate to the financial year of the Fund.

  • (e) The Fund shall report on the resources and operations of the Trust in the Annual Report of the Executive Board to the Board of Governors and shall include in the Annual Report the report of the external audit firm on the Trust.

Paragraph 3. Investment of Resources

  • (a) Any balance held by the Trust and not immediately needed in operations shall be invested.

  • (b) Investments may be made in any of the following: (i) marketable obligations issued by international financial organizations and denominated in SDRs or in the currency of a member of the Fund; (ii) marketable obligations issued by a member or by a national official financial institution of a member and denominated in SDRs or in the currency of that member; and (iii) deposits with a commercial bank, a national official financial institution of a member, or an international financial institution that are denominated in SDRs or in the currency of a member.

Section V. 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

If the Trustee decides to wind up the operations of the Trust, the resources in the Accounts shall be used first to discharge all the liabilities of the Trust. Any amount remaining in the Accounts after the discharge of all the liabilities of the Trust shall be transferred to the General Subsidy Account of the Poverty Reduction and Growth Trust established pursuant to Decision No. 8759-(87/176) ESAF, as amended (“PRGT”), for use in accordance with the provisions of the PRGT Instrument; provided that, at the request of a contributor that has provided resources to the Trust, its pro rata share of any such remaining resources in the Trust, or any portion of such share, shall be distributed to the contributor.

Section VI. Amendment of the Instrument

The Fund may amend the provisions of the Instrument, except that any amendment of Section I, paragraph 1, Section IV, Section V, and this Section shall require the consent of all contributors to the Trust.

Attachment B

Catastrophe Containment and Relief Trust—Terms and Conditions for Administration of Umbrella Account

Pursuant to Section III, paragraph 4 (b) of the Instrument to Establish the Catastrophe Containment and Relief Trust (CCR Trust), the Fund, as Trustee of the CCR Trust, establishes the following terms and conditions for the administration of the Umbrella Account provided for under that provision:

  • 1. The resources of the Umbrella Account shall consist of (i) the proceeds of grants paid into the Umbrella Account for the benefit of a member by the CCR Trust, (ii) contributions by other donors to finance debt relief on a member’s eligible debt to the Fund, and (iii) net earnings from the investment of resources held in the Umbrella Account.

  • 2. Within the Umbrella Account, the Trustee shall establish a separate subaccount for the administration of the resources paid into the Umbrella Account for the benefit of each member for which the resources have been paid. The Trustee shall establish a subaccount within the Umbrella Account, at the latest, whenever the Fund as Trustee of the CCR Trust grants final approval of the disbursement of a Trust grant under the CCR Trust.

  • 3. Following the establishment of a subaccount, the Fund, as Trustee, shall be authorized to use the resources of the subaccount (including any net income from the investment of such resources) to make payments for the benefit of the member as specified in Section III, paragraph 4(b) of the Instrument to Establish the CCR Trust.

  • 4.

    • (a) Resources held in a subaccount of the Umbrella Account and not immediately needed for operations shall be invested.

    • (b) Investments may be made in any of the following: (i) marketable obligations issued by international financial organizations and denominated in SDRs or in the currency of a member of the Fund; (ii) marketable obligations issued by a member or by a national official financial institution of a member and denominated in SDRs or in the currency of that member; and (iii) deposits with a commercial bank, a national official financial institution of a member, or an international financial institution that are denominated in SDRs or in the currency of a member. Earnings, net of any transactions costs, shall accrue to the subaccount and shall be available for the purposes of the subaccount.

    • (c) The Managing Director of the Trustee is authorized (i) to make all arrangements, including the establishment of accounts in the name of the Trustee, with such depositories as may be necessary to carry out the operations of the Umbrella Account, and (ii) to take all measures necessary to implement the provisions of this decision.

  • 5. The SDR shall be the unit of account.

    • (a) Resources received into a subaccount may be in U.S. dollars or such other media as may be determined by the Trustee.

    • (b) Resources held in a subaccount may be currencies or currencies exchanged for SDRs in accordance with such arrangements as may be made by the Trustee for the holding and use of SDRs.

    • (c) The Trustee may exchange any of the resources held in a subaccount for other resources.

    • (d) Payments made from a subaccount shall be made in U.S. dollars or such other media as may be determined by the Trustee.

  • 6. Assets held in the Umbrella Account shall be kept separate from the assets and property of all other accounts of, or administered by, the Trustee. The assets of the Umbrella Account shall not be used to discharge or meet any liabilities, obligations, or losses incurred by the Trustee in the administration of such other accounts. Except as expressly authorized in the CCR Trust Instrument and this decision, the assets and property held in a subaccount of the Umbrella Account shall not be used to discharge or meet any liabilities, obligations, or losses of the Trustee in the administration of any other subaccount of the Umbrella Account.

  • 7. Subject to the provisions of this decision, the Trustee, in administering the Umbrella Account, shall apply, mutatis mutandis, the same rules and procedures as apply to the operations of the General Resources Account of the Fund.

  • 8. No charge shall be levied for the services rendered by the Trustee in the administration, operation, and termination of the Umbrella Account.

    • (a) The Trustee shall maintain separate financial records and prepare separate financial statements for the Umbrella Account in accordance with International Financial Reporting Standards. The financial statements for the Umbrella Account shall be expressed in SDRs.

    • (b) The external audit firm selected under Section 20 of the Trustee’s By-Laws shall audit the operations and transactions conducted through the Umbrella Account. The audit shall relate to the financial year of the Trustee.

    • (c) The Trustee shall report on the resources and operations of the Umbrella Account in the Annual Report of the Executive Board to the Board of Governors and shall include in that Annual Report the report of the external audit firm on the Umbrella Account.

  • 9.

    • (a) The Umbrella Account shall remain in effect for as long as is necessary, in the judgment of the Trustee, to conduct and to wind up the business of the Umbrella Account. A subaccount for a particular member would be wound up when the resources of that subaccount have been exhausted in providing debt relief to the member according to the terms of the CCR Trust Instrument.

    • (b) Any balance remaining in a subaccount upon termination and after the discharge of all obligations of that subaccount shall be transferred promptly to the specific CCR Trust account from which the resources were drawn; provided that, at the request of a donor that has contributed directly to a subaccount pursuant to paragraph 1(ii) above, its pro rata share of any such resources remaining in the subaccount, shall be distributed to the donor.

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