Decisions
	Decision 1 Decision 2 Decision 3 Decision 4 Decision 5 Decision 6 Decision 7 Decision 8

Amendments to the SRF/CCL Decision

Decision No. 11627-(97/123) SRF, adopted December 17, 1997 shall be amended as follows:

1. Paragraph 13 shall be amended to read as follows:

   "13. Through November 30, 2003, the Fund will be prepared to commit and provide financial assistance to a member under the terms and conditions specified in this section."

2. Paragraph 17 shall be amended to read as follows:

   "17. The Fund may commit resources under this section at any time under an arrangement, but will only make such resources available after the completion of an activation review under the arrangement when it finds that the member meets the conditions specified in paragraph 15. The arrangement will specify the total amount of resources committed under this section and the amount of such resources that will be made available upon the completion of the activation review. The availability of the rest of the committed resources under this section shall be subject to such phasing and conditionality as the Fund shall consider appropriate, normally at the time of a post-activation review. In addition, the arrangement will normally provide for the continued commitment of resources under this section beyond a specified date to be subject to the completion of a program review by the Fund. The Fund may commit resources under this section for a period of up to one year and, after it makes such resources available, may extend such period for up to one year from the date such resources are made available."

3. Paragraph 19 shall be amended to read as follows:

   "19. Paragraphs 6, 7, 10 and 11 of this decision shall apply to purchases made under this section."

4. Paragraph 20 shall be amended to read as follows:

   "20. During the first year from the date of the first purchase financed under this section, the rate of charge under Article V, Section 8(b) on holdings acquired as a result of purchases under this section shall be 150 basis points per annum above the rate of charge referred to in Rule I-6(4) as adjusted for purposes of burden sharing. Such rate shall be increased by 50 basis points at the end of that period and every six months thereafter, until the surcharge reaches 350 basis points, subject to the provisions of paragraph 21."

5. The following new paragraph 21 shall be added:

   "21. The provisions of Decision No. 8165-(85/189) G/TR, December 30, 1985, except section IV, shall apply to overdue obligations arising under this section, subject to the following provision:

   The rate of charge on overdue repurchases shall be determined by the Fund but shall not be less than the maximum rate of charge specified in paragraph 20."

6. The following new Paragraph 22 shall be added:

   "22. This section and its operation will be reviewed no later than November 30, 2002."

Conversion of Emergency Assistance into a Special Policy

1. The Fund will be prepared to provide financial assistance to members who are afflicted by natural disasters or are in post-conflict situations. This assistance will be provided in accordance with the provisions of this decision and the guidelines on emergency assistance for natural disasters and post-conflict situations set out in: (i) pages 17 and 18 of EBM/82/16 (2/10/82); (ii) Summing Up by the Chairman - Fund Involvement in Post Conflict Countries - Executive Board Meeting 95/82- September 6, 1995 (BUFF/95/98 (9/19/95)); and (iii) Summing Up by the Acting Chairman - Fund Assistance to Post-Conflict Countries - Executive Board Meeting 99/38 - April 5, 1999 (BUFF/99/48 (4/9/99)).

2. Purchases under this decision and holdings resulting from such purchases shall be excluded for the purposes of the definition of reserve tranche purchase pursuant to Article XXX(c).

3. Except for the purpose of determining the level of condition-ality applied to purchases in the credit tranches, the Fund's holdings of a member's currency resulting from purchases under this decision shall be considered separate from the Fund's holdings of the same currency resulting from purchases under any other policy on the use of the Fund's general resources.

4. In order to carry out the purposes of this decision, the Fund will be prepared to grant a waiver of the limitation of 200 percent of quota in Article V, Section 3(b)(iii), whenever necessary to permit purchases under this decision or to permit other purchases that would raise the Fund's holdings of the purchasing member's currency above that limitation because of purchases outstanding under this decision.

Repurchases under Emergency Assistance; Purchases in the Credit Tranches and Compensatory Financing Facility - Repurchase Expectations

1. Decision No. 5703-(78/39), adopted March 22, 1978, shall be amended as follows:

   (i) paragraph 1(a) shall be amended by adding: "or the decision on Emergency Assistance (Decision No.    )," before "shall be completed";

   (ii) the current paragraph 1(b) shall be deleted in its entirety and replaced by the following:

   "(b) A member will be expected to repurchase the Fund's holdings of its currency resulting from purchases in the credit tranches or under the Compensatory Financing Facility made after November 28, 2000 in equal quarterly installments during the period beginning two years and ending four years after the date of the purchase, provided that the Fund may, upon request by the member, amend the schedule of repurchase expectations, if in the judgment of the Fund the member's external position is not sufficiently strong for repurchases to be made in accordance with the expectation schedule set out in this paragraph. In determining whether to amend the schedule, the Fund may consider all relevant information, including the size of the member's foreign reserves, the member's medium-term balance of payments outlook, and the degree of the member's access to international capital markets.";

   and

   (iii) the following new paragraph 1(c) shall be added:

   "(c) The Fund shall not approve, and the Managing Director shall not recommend for approval, any request for the use of the Fund's general resources by a member that is failing to meet a repurchase expectation under paragraph 1(b) above. Provision shall be made in each stand-by and extended arrangement for the suspension of further purchases under the arrangement whenever a member fails to meet a repurchase expectation under paragraph 1(b) above."

2. The Fund shall review the time-based repurchase expectation scheme set out in paragraph 1(b) of Decision No. 5703-(78/39), adopted March 22, 1978, no later than November 30, 2005.

1. Decision No. 4377-(74/114), adopted September 13, 1974, shall be amended by adding the following new paragraph:

   "10. (a) In addition to making repurchases in accordance with paragraph 5, a member will be expected to repurchase an amount of the Fund's holdings of its currency resulting from purchases under this decision made after November 28, 2000 equal to, and at the time of, the six-monthly installments of repurchases falling due during the period beginning four years and ending seven years after the date of the purchase, provided that the Fund may, upon request by the member, amend the schedule of repurchase expectations, if in the judgment of the Fund the member's external position is not sufficiently strong for repurchases to be made pursuant to the expectation schedule set out in this paragraph. In determining whether to amend the schedule, the Fund may consider all relevant information, including the size of the member's foreign reserves, the member's medium-term balance of payments outlook, and the degree of the member's access to international capital markets.

   (b) The Fund shall not approve, and the Managing Director shall not recommend for approval, any request for the use of the Fund's general resources by a member that is failing to meet a repurchase expectation under paragraph 10(a) above. Provision shall be made in each stand-by and extended arrangement for the suspension of further purchases under the arrangement whenever a member fails to meet a repurchase expectation under paragraph 10(a) above."

2. The Fund shall review the time-based repurchase expectation scheme set out in paragraph 10(a) of Decision No. 4377-(74/114), adopted September 13, 1974, no later than November 30, 2005.

Non-approval of New PRGF Arrangements and Suspension of Loan Disbursements under Existing PRGF Arrangements Whenever a Member is not Meeting a Repurchase Expectation

The Instrument to Establish the Poverty Reduction and Growth Facility annexed to Decision No. 8759-(87/176) ESAF shall be amended by adding the following at the end of paragraph 1(e) of Section II:

", or is failing to meet a repurchase expectation pursuant to paragraph 1(b) of Decision No 5703-(78/39) or paragraph 10(a) of Decision No. 4377-(74/114)."

Attribution of Repurchases made to meet Time-Based Repurchase Expectations

Decision No. 6831-(81/65), adopted April 22, 1981, shall be amended as follows:

1. Paragraph 1(a) shall be amended to read as follows:

   "(a) Subject to paragraphs (b), (c), (d) and (e) below a member shall be free to attribute a reduction in the Fund's holdings of its currency (i) to any obligation to repurchase, and (ii) to enlarge its reserve tranche."

2. The following new paragraphs 1(d) and 1(e) shall be added:

   "(d) A reduction resulting from a repurchase made pursuant to a repurchase expectation under paragraph 1(b) of Decision No. 5703-(78/39) shall be attributed to the member's repurchase obligation arising from the same purchase one year after the original date on which that repurchase expectation was to be met.

   (e) A reduction resulting from a repurchase made pursuant to a repurchase expectation under paragraph 10(a) of Decision No. 4377-(74/114) shall be attributed to the member's repurchase obligation arising from the same purchase three years after the original date on which that repurchase expectation was to be met."

Decision 7

Surcharge on Purchases in the Credit Tranches and under the Extended Fund Facility

1. 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 the date of this decision 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.

2. This decision shall be reviewed after November 30, 2004.

Decision 8

Changes to the Commitment Charge for Stand-By and Extended Arrangements

Rules I-8(a) and I-8(b) of the Rules and Regulations shall be amended to read as follows:

"(a) A charge shall be payable at the beginning of each twelve-month period ("the relevant period") of an arrangement as follows:

(i) ¼ of 1 percent per annum on amounts of up to 100 percent of the member's quota that could be purchased during the relevant period; and

(ii) 1/10 of 1 percent per annum on amounts in excess of 100 percent of the member's quota that could be purchased during the relevant period.

(b) When a purchase is made under an arrangement, the amount of the charge paid shall be reduced, and a refund equal to the reduction shall be made, as follows:

(i) to the extent that purchases during the relevant period do not exceed 100 percent of the member's quota, the portion of the charge calculated in accordance with subparagraph (a)(i) above shall be reduced by the proportion that the amount of the purchase bears to the amount of the arrangement not exceeding 100 percent of the member's quota that could be purchased during the relevant period; and

(ii) to the extent that purchases during the relevant period exceed 100 percent of the member's quota, the portion of the charge calculated in accordance with subparagraph (a)(ii) above shall be reduced by the proportion that the amount of the purchase bears to the amount of the arrangement exceeding 100 percent of the member's quota that could be purchased during the relevant period."