Agreement Articles

Agreement Articles

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 ICSID Convention came into force through a multilateral agreement and came into force on 14 October 1966. 4. If a member has not reached an agreement with the Fund within the three-month period covered in paragraph 3 above, the Fund uses the currencies of other members assigned to that member in accordance with paragraph 2 (d) to repay the member`s currency which is allocated to other members. Any currency awarded to a member who has not reached an agreement is used, as far as possible, to exchange currency allocated to members who have entered into agreements with the Fund under 3. 2. If the commitment that remains at the Fund`s expense after the imposition under Article XXIV, Section 2, Point b), and no agreement is reached within six months of the closing date, the terminating member commits to it within three years of the end or within the longer period set by the Fund. The terminating participant fulfils this obligation, for example: (a) by paying a currency freely usable to the Fund, or b) by obtaining special drawing rights in accordance with Article XXIV, Section 6, of the General Resource Account, or in agreement with a participant designated by the Fund or another holder, and by compensating for these special drawing rights. In general, the articles of the agreement detail the proposed provisions on the facts that result and specify a time frame for the execution of the facts. Below is a sample of articles from the agreement: 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). In the recitals, the agreement is relegated to the background with factual details on the basis of the contract. Seven recitals describe what is needed and what has happened. 4. Where the Fund`s holdings in the currency of an outgoing member are greater than the amount owed to it and no agreement is reached on the accounting method within six months of the date of withdrawal, the former member is required to repay the excess currency in a freely usable currency.