International Finance Corporation

No. 36 of 1966

An Act to amend the International Finance Corporation Act 1955–1963 in consequence of an amendment of the Articles of Agreement of the International Finance Corporation.

[Assented to 12 September, 1966]

BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—

Short title and citation.

1.—(1.) This Act may be cited as the International Finance Corporation Act 1966.

(2.) The International Finance Corporation Act 1955–1963 is in this Act referred to as the Principal Act.

(3.) The Principal Act, as amended by this Act, may be cited as the International Finance Corporation Act 1955–1966.

Commencement.

2. This Act shall come into operation on the day on which it receives the Royal Assent.

3. Sections 3 and 4 of the Principal Act are repealed and the following sections inserted in their stead:—

Definition.

“3. In this Act, ‘the Agreement’ means the Articles of Agreement of the International Finance Corporation set out in the First Schedule to this Act, as amended in accordance with the resolutions set out in the Second and Third Schedules to this Act, being resolutions that have been accepted in accordance with Article VII of those Articles.

Membership of Australia of International Finance Corporation.

“4. The membership of Australia of the International Finance Corporation established under the Agreement is approved.”.

4. The Principal Act is amended by adding at the end thereof the following Schedule:—

THIRD SCHEDULE Section 3.

Resolution No. 56

Borrowing from International Bank for Reconstruction and Development

WHEREAS the Board of Directors has communicated to the Chairman of the Board of Governors a proposal to amend the Articles of Agreement; and

WHEREAS the Chairman has brought the proposal before the Board of Governors:

NOW THEREFORE the Board of Governors resolves that, in accordance with the proposal of the Board of Directors, the Articles of Agreement are hereby amended as follows:

1. By deleting from Article IV, Section 6 the second sentence reading as follows: “The Corporation shall not lend to or borrow from the Bank.”

2. By adding to Article III, Section 6 (i) a sentence reading as follows: “if and so long as the Corporation shall be indebted on loans from or guaranteed by the Bank, the total amount outstanding of borrowings incurred or guarantees given by the Corporation shall not be increased if, at the time or as a result thereof, the aggregate amount of debt (including the guarantee of any debt) incurred by the Corporation from any source and then outstanding shall exceed an amount equal to four times its unimpaired subscribed capital and surplus;”