East Timor Applies for IMF Membership

The Second Transitional Government of East Timor has filed an application for membership in the International Monetary Fund (IMF) to take effect after the country's independence on May 20, 2002. Under the IMF's prescribed procedures for membership applications, the application must first be considered by the IMF's Executive Board. After its consideration, the Executive Board submits a report to the Board of Governors of the IMF with recommendations in the form of a Membership Resolution. These recommendations cover the amount of quota in the IMF, the form of payment of the subscription, and other customary terms and conditions of membership. After the Board of Governors has adopted the Membership Resolution, the applicant country may become a member once it has taken the legal steps required under its law to enable it to sign the IMF's Articles of Agreement and to fulfill the obligations of IMF membership.