Imf Agreement Article Viii

ROLE:

The money the Fund receives from a resilient participant is used by the Fund to exchange special drawing rights held by participants in proportion to the amount of each participant`s participation in special drawing rights at the time the Fund receives the coin for its cumulative net allocation. Special drawing rights thus collected and special drawing rights received by a participant terminate, in accordance with the provisions of this agreement, in order to satisfy any waterproofing agreement or scheduleD rates due and charged at this rate are void. Notwithstanding the provisions of other articles of this agreement, a member who informed the Fund that he was considering the use of transitional provisions under this provision may maintain restrictions on payments and transfers of ongoing international transactions as of the date of entry into the agreement and adapt to changing circumstances. However, in their exchange rate policy, members are constantly attentive to the Fund`s objectives and, as soon as conditions permit, they take all possible steps to develop trade and financial agreements with other members facilitating international payments and promoting a stable exchange rate system. In particular, members remove the restrictions in this section as soon as they are satisfied that, in the absence of such restrictions, they will be able to pay their balance of payments in a manner that does not place undue pressure on their access to the Fund`s general resources. The Fund reports annually on the restrictions applicable to Section 2 of this article. Each member with restrictions inconsistent with Article VIII, Sections 2, 3 or 4 consults the Fund each year on the continuation of its conservation. The Fund may, if it considers such measures necessary in exceptional circumstances, to argue to a member that the conditions for revocation of a particular restriction or the general removal of restrictions inconsistent with the provisions of other articles of this agreement are favourable. The member has a reasonable period of time to respond to these statements. If the Fund finds that the member maintains restrictions inconsistent with the Fund`s purposes, it is subject to Article XXVI, Section 2, Point a).

1. If the remaining commitment to be pending after the imposition pursuant to Article XXIV, point b), is notified to the terminating participant and if the agreement on liquidation between the Fund and the terminating member is not reached within six months of the termination date, the Fund terminates this balance of special drawing rights in equal semi-annual tranches within a maximum of five years from the closing date. The Fund maintains this balance, as it determines: (a) by paying the terminated member the sums made available by other fund participants in accordance with Article XXIV, Section 5, or (b) by allowing the terminating subscriber to use his special drawing rights to obtain his own currency or currency freely usable from a participant designated by the Fund. , the general resource account or another owner.