International Monetary Agreements

No. 37 of 1966

An Act to amend the International Monetary Agreements Act 1947–1963 in consequence of an amendment of the Articles of Agreement of the International Bank for Reconstruction and Development.

[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 Monetary Agreements Act 1966.

(2.) The International Monetary Agreements Act 1947–1963 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 Monetary Agreements Act 1947–1966.

Commencement.

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

Definitions.

3. Section 3 of the Principal Act is amended by omitting the definition of “the Bank Agreement”, and inserting in its stead the following definition:—

“‘the Bank Agreement’ means the Articles of Agreement of the International Bank for Reconstruction and Development set out in the Second Schedule to this Act, as amended in accordance with the resolution of the Board of Governors of that Bank set out in the Third Schedule to this Act, and having effect from the seventeenth day of December, One thousand nine hundred and sixty-five, being an amendment that has been accepted in accordance with Article VIII of those Articles.”.

4. Section 4 of the Principal Act is repealed and the following section inserted in its stead:—

Membership of Australia of the Fund and of the Bank.

“4. The membership of Australia of the Fund and of the Bank is approved.”.

Third Schedule.

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

THIRD SCHEDULE Section 3.

RESOLUTION OF THE BOARD OF GOVERNORS OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

Resolution No. 221

Loans to International Finance Corporation

WHEREAS the Executive Directors have communicated to the Chairman of the Board of Governors a proposal to introduce modifications in the Articles of Agreement; and

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

NOW THEREFORE the Board of Governors resolves as follows:

In accordance with the recommendations of the Executive Directors, the Board of Governors hereby approves the amendment of the Articles of Agreement by the addition to Article III of a new Section 6, entitled Loans to the International Finance Corporation and reading as follows:

“(a) The Bank may make, participate in, or guarantee loans to the International Finance Corporation, an affiliate of the Bank, for use in its lending operations. The total amount outstanding of such loans, participations and guarantees 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 said Corporation from any source and then outstanding shall exceed an amount equal to four times its unimpaired subscribed capital and surplus.

(b) The provisions of Article III, Sections 4 and 5(c) and of Article IV, Section 3 shall not apply to loans, participations and guarantees authorized by this Section.”