Commonwealth Numbered Acts

INTERNATIONAL MONETARY AGREEMENTS AMENDMENT ACT 1997 No. 127 of 1997 - SCHEDULE 1

Schedule 1ÐAmendment of the International Monetary 
Agreements Act 1947 
Part 1ÐAmendments relating to the New Arrangements to Borrow 1 Subsection 3(1)
Insert: New Arrangements to Borrow means Decision No. 11428-(97/6), dated 27
January 1997, of the Executive Board of the Fund, a copy of which is set out
in Schedule 4. 2 Subsection 6(1) Omit "by reason of its membership of the Fund
and of the Bank.", substitute: by reason of:

   (a)  its membership of the Fund and of the Bank; or

   (b)  its obligations under the New Arrangements to Borrow, after that
        decision becomes effective. 3 After section 8A Insert: 8B
        Appropriation for the purposes of the New Arrangements to Borrow

(1) If, after the New Arrangements to Borrow have become effective, the
Treasurer is satisfied that an amount should be paid out of the Consolidated
Revenue Fund to enable Australia to carry out its obligations under that
decision, he or she may direct that that amount be paid out of the
Consolidated Revenue Fund.

(2) The Consolidated Revenue Fund is appropriated accordingly. 4 At the end of
the Act Add:
Schedule 4ÐDecision No. 11428-(97/6), dated 27 January
1997, of the Executive Board of the Fund A. New Arrangements to Borrow
Preamble
In order to enable the International Monetary Fund to fulfill more effectively
its role in the international monetary system, a number of countries with the
financial capacity to support the international monetary system have agreed to
make available to the Fund resources in the form of loans up to specified
amounts when supplementary resources are needed to forestall or cope with an
impairment of the international monetary system or to deal with an exceptional
situation that poses a threat to the stability of that system. In order to
give effect to these intentions, the following terms and conditions are
adopted under Article VII, Section 1 of the Articles of Agreement. Paragraph
1. Definitions

   (a)  As used in this decision the term:

        (i)    "amount of a credit arrangement" means the maximum amount
               expressed in special drawing rights that a participant
               undertakes to lend to the Fund under a credit arrangement;

        (ii)   "Articles" means the Articles of Agreement of the International
               Monetary Fund;

        (iii)  "available commitment" means a participant's credit arrangement
               less any committed or drawn balances;

        (iv)   "borrowed currency" or "currency borrowed" means currency
               transferred to the Fund's account under a credit arrangement;

        (v)    "call" means a notice by the Fund to a participant to make a
               transfer under its credit arrangement to the Fund's account;

        (vi)   "credit arrangement" means an undertaking to lend to the Fund
               on the terms and conditions of this decision;

        (vii)  "currency actually convertible" means currency included in the
               Fund's quarterly operational budget for transfers;

        (viii) "drawer" means a member that purchases borrowed currency from
               the Fund in an exchange transaction, including an exchange
               transaction under a stand-by or extended arrangement;

        (ix)   "indebtedness" of the Fund means the amount it is committed to
               repay under a credit arrangement;

        (x)    "member" means a member of the Fund;

        (xi)   "participant" means a participating member or a participating
               institution;

        (xii)  "participating institution" means an official institution of a
               member that has entered into a credit arrangement with the Fund
               with the consent of the member, or an official institution of a
               nonmember that has entered into a credit arrangement with the
               Fund;

        (xiii) "participating member" means a member that has entered into a
               credit arrangement with the Fund.

   (b)  For the purposes of this decision, the Hong Kong Monetary Authority
        (HKMA) shall be regarded as an official institution of the member
        whose territories include Hong Kong, provided that:

        (i)    loans by the HKMA and payments by the Fund to the HKMA under
               this decision shall be made in principle in the currency of the
               United States of America, unless the currency of another member
               is agreed between the Fund and the HKMA;

        (ii)   the participation of the HKMA shall not give rise to the
               application of paragraph 6 A to the member whose territories
               include Hong Kong; and

        (iii)  the references to the balance of payments and reserve position
               in paragraphs 7 A(c), 7 B(b) and 11(e) shall be understood to
               refer to the balance of payments and reserve position of Hong
               Kong. Paragraph 2. Credit Arrangements

   (a)  A member or institution that adheres to this decision undertakes to
        make loans to the Fund on the terms and conditions of this decision up
        to the amount in special drawing rights set forth in the Annex to this
        decision or established in accordance with paragraph 3(b).

   (b)  Unless otherwise agreed with the Fund, loans under this decision shall
        be made in the currency of the participant. If the participant is an
        institution of a nonmember, the Fund and the participant shall agree
        on which member's currency or members' currencies shall be used for
        the loans. Agreements under this paragraph shall be subject to the
        concurrence of any member whose currency shall be used in the loans.
        Paragraph 3. Adherence

   (a)  Any member or institution specified in the Annex may adhere to this
        decision in accordance with paragraph 3(c).

   (b)  Any member or institution not specified in the Annex, including an
        institution of a nonmember, may apply to become a participant at the
        time of renewal of this decision in accordance with paragraph 19. Any
        such member or institution that wishes to become a participant shall,
        after consultation with the Fund, give notice of its willingness to
        adhere to this decision, and, if the Fund and participants
        representing 80 percent of total credit arrangements under the renewed
        decision shall so agree, the member or institution may adhere in
        accordance with paragraph 3(c). When giving notice of its willingness
        to adhere under this paragraph 3(b), a member or institution shall
        specify the amount, expressed in special drawing rights, of the credit
        arrangement which it is willing to enter into, provided that the
        amount shall not be less than the credit arrangement of the
        participant with the smallest credit arrangement. The admission of a
        new participant shall lead to a proportional reduction in the credit
        arrangements of all existing participants whose credit arrangements
        are above that of the participant with the smallest credit
        arrangement: such proportional reduction in the credit arrangements of
        participants shall be in an aggregate amount equal to the amount of
        the new participant's credit arrangement less any increase in total
        credit arrangements decided in accordance with paragraph 5(a),
        provided that no participant's credit arrangement shall be reduced
        below the minimum amount set out in the Annex.

   (c)  A member or institution shall adhere to this decision by depositing
        with the Fund an instrument setting forth that it has adhered in
        accordance with its law and has taken all steps necessary to enable it
        to carry out the terms and conditions of this decision. On the deposit
        of the instrument the member or institution shall be a participant as
        of the date of the deposit or of the effective date of this decision,
        whichever is later. Paragraph 4. Entry into force
This decision shall become effective when it has been adhered to by members or
institutions included in the Annex with credit arrangements amounting to not
less than SDR 28.9 billion, including the five members or institutions with
the largest credit arrangements specified in the Annex. Paragraph 5. Changes
in Amounts of Credit Arrangements

   (a)  When a member or institution is authorized under paragraph 3(b) to
        adhere to this decision, the total amount of credit arrangements may
        be increased by the Fund with the agreement of participants
        representing 85 percent of total credit arrangements; the increase
        shall not exceed the amount of the new participant's credit
        arrangement.

   (b)  The amounts of participants' individual credit arrangements may be
        reviewed from time to time in the light of developing circumstances
        and changed with the agreement of the Fund and of participants
        representing 85 percent of total credit arrangements, including each
        participant whose credit arrangement is changed. This provision may be
        amended only with the consent of all participants. Paragraph 6.
        Initiation of Procedure A. Participants
When a participating member or a member whose institution is a participant
approaches the Fund on an exchange transaction or a stand- by or extended
arrangement and the Managing Director, after consultation, considers that the
exchange transaction or stand-by or extended arrangement is necessary in order
to forestall or cope with an impairment of the international monetary system,
and that the Fund's resources need to be supplemented for this purpose, the
Managing Director may initiate the procedure set out in paragraph 7A. B.
Nonparticipants
The Managing Director may initiate the procedure set out in paragraph 7A for
exchange transactions requested by members that are not participants if (a),
the exchange transactions are (i) transactions in the upper credit tranches,
(ii) transactions under stand-by arrangements extending beyond the first
credit tranche, (iii) transactions under extended arrangements, or (iv)
transactions in the first credit tranche in conjunction with a stand-by or an
extended arrangement, and (b), after consultation, the Managing Director
considers that the Fund's resources need to be supplemented to meet actual and
expected requests for financing that reflect the existence of an exceptional
situation associated with balance of payments problems of members of a
character or aggregate size that could threaten the stability of the
international monetary system. In making proposals for calls pursuant to
paragraph 6B, the Managing Director shall pay due regard to potential calls
pursuant to paragraph 6A. Paragraph 7. Proposals and Calls A. Proposals

   (a)  The Managing Director shall make a proposal for calls under this
        decision only after consultation with Executive Directors and
        participants.

   (b)  In making a proposal for resources to be lent to the Fund, the
        Managing Director shall identify the prospective drawer, the amount,
        and the period during which the resources requested in the proposal
        may be called.

   (c)  If a participant determines that it will not be able to meet calls
        under a proposal because of its present and prospective balance of
        payments and reserve position, which would normally be reflected in
        the member's exclusion from the list of countries that are included in
        the Fund's quarterly operational budget for transfers of their
        currencies, it shall so notify the Fund and the other participants. If
        the participant is an institution of a nonmember, the participant
        shall consult with the Fund on that nonmember's balance of payments
        and reserve position before making a determination under this
        provision. A participant shall exercise restraint and shall take into
        account the views of the Fund and other participants in making such a
        determination.

   (d)  Unless otherwise specified under paragraph 7A(e), a proposal shall be
        for calls proportional to the amount of each participant's credit
        arrangement.

   (e)  The Managing Director may make a proposal for calls that are not
        proportional to the amount of each participant's credit arrangement
        under the following circumstances:

        (i)    If proportional calls sufficient to provide the total amount
               sought from participants to finance the proposed exchange
               transactions cannot be made because at least one participant's
               available commitment is insufficient to meet such a
               proportional call, the Managing Director may ask every
               participant whose available commitment would have been
               sufficient to meet fully such a proportional call to provide
               the amount under such a proportional call; provided that, if
               the Managing Director asks every such participant to provide
               such amount, the Managing Director shall also ask every
               participant whose available commitment would have been
               insufficient to meet such a proportional call to provide an
               amount to the extent of its available commitment. If necessary,
               the Managing Director may also ask for an amount in addition to
               that provided under the prior sentence from a participant whose
               available commitment exceeds the amount it would provide under
               such a proportional call.

        (ii)   If proportional calls sufficient to provide the total amount
               sought from participants to finance the proposed exchange
               transactions cannot be made because at least one participant
               lacks sufficient amounts of the type of currency or currencies
               needed for the proposed exchange transactions, the Managing
               Director may ask every participant that is in a position to
               provide the currency or currencies needed to provide the amount
               under such a proportional call, up to the amount of its
               available commitment or the amount that it is in a position to
               provide, whichever is less. If necessary, the Managing Director
               may also ask a participant whose available commitment exceeds
               the resources it would provide under such a proportional call
               and that remains in a position to provide the type of currency
               or currencies needed to provide an amount of the currency or
               currencies needed in addition to that provided under the prior
               sentence.

   (f)  The concurrence of every participant that would undertake to provide
        proportionately more resources than at least one other participant
        shall be required before the proposal can be accepted under Paragraph
        7A(g).

   (g)  If there is not unanimity among the participants, the question whether
        the participants are prepared to facilitate, by making loans to the
        Fund, the exchange transactions or stand-by or extended arrangement
        specified in the proposal will be decided by a poll of the
        participants. A favorable decision shall require an 80 percent
        majority of total credit arrangements of participants eligible to
        vote. The decision shall be notified to the Fund.

   (h)  Neither the prospective drawer nor its participating institution nor
        participants that have notified that they will not meet calls under a
        proposal shall be eligible to vote on the proposal.

   (i)  A proposal shall become effective only if it is accepted by
        participants pursuant to paragraph 7A(g) and is then approved by the
        Executive Board.

   (j)  After a proposal has been accepted, commitments and drawings shall not
        be affected by a subsequent change in the amounts of the credit
        arrangements. B. Calls

   (a)  Unless otherwise provided in a proposal for future calls approved
        under paragraph 7A, each call shall be made in proportion to the
        amounts in the proposal.

   (b)  Except with the participant's consent, calls may not be made on a
        participant, on which calls could otherwise be made pursuant to this
        paragraph, when, based on its present and prospective balance of
        payments and reserve position, the member is not included and is not
        being proposed by the Managing Director to be included in the list of
        countries in the quarterly operational budget for transfers of its
        currency. If the participant is an institution of a nonmember, its
        ability to meet calls under this decision shall be determined by the
        Fund, after consultation with the participant, on the basis of that
        nonmember's present and prospective balance of payments and reserve
        position. In the event that a call is not made on a participant, the
        Managing Director may propose to the other participants that
        substitute amounts be made available under their credit arrangements,
        and this proposal shall be subject to the procedure of paragraph 7A.

   (c)  When the Fund makes a call pursuant to this paragraph, the participant
        shall promptly make the transfer in accordance with the call.
        Paragraph 8. Evidence of Indebtedness

   (a)  The Fund shall issue to a participant, on its request, nonnegotiable
        instruments evidencing the Fund's indebtedness to the participant. The
        form of the instruments shall be agreed between the Fund and the
        participant.

   (b)  Upon repayment of the amount of any instrument issued under paragraph
        8(a) and all accrued interest, the instrument shall be returned to the
        Fund for cancellation. If less than the amount of any such instrument
        is repaid, the instrument shall be returned to the Fund and a new
        instrument for the remainder of the amount shall be substituted with
        the same maturity date as in the old instrument. Paragraph 9. Interest

   (a)  The Fund shall pay interest on its indebtedness under this decision at
        a rate equal to the combined market interest rate computed by the Fund
        from time to time for the purpose of determining the rate at which it
        pays interest on holdings of special drawing rights or any such higher
        rate as may be agreed between the Fund and participants representing
        80 percent of the total credit arrangements.

   (b)  A change in the method of calculating the combined market interest
        rate shall apply to the Fund's indebtedness under this decision only
        if the Fund and participants representing 80 percent of the total
        credit arrangements so agree; provided that, if a participant so
        requests at the time this agreement is reached, the change shall not
        apply to the Fund's indebtedness to that participant outstanding at
        the date the change becomes effective.

   (c)  Interest shall accrue daily and shall be paid as soon as possible
        after each July 31, October 31, January 31, and April 30.

   (d)  Interest due to a participant shall be paid, as determined by the Fund
        in consultation with the participant, in special drawing rights, in
        the participant's currency, in the currency borrowed, or in other
        currencies that are actually convertible. Paragraph 10. Use of
        Borrowed Currency
The Fund's policies and practices under Article V, Sections 3 and 7 on the use
of its general resources and stand-by and extended arrangements, including
those relating to the period of use, shall apply to purchases of currency
borrowed by the Fund. Nothing in this decision shall affect the authority of
the Fund with respect to requests for the use of its resources by individual
members, and access to these resources by members shall be determined by the
Fund's policies and practices, and shall not depend on whether the Fund can
borrow under this decision. Paragraph 11. Repayment by the Fund

   (a)  Subject to the other provisions of this paragraph 11, the Fund, five
        years after a transfer by a participant, shall repay the participant
        an amount equivalent to the transfer calculated in accordance with
        paragraph 12. If the drawer for whose purchase participants make
        transfers is committed to repurchase at a fixed date earlier than five
        years after its purchase, the Fund shall repay the participants at
        that date. Repayment under this paragraph 11(a) or under paragraph
        11(c) shall be, as determined by the Fund, in the currency borrowed
        whenever feasible, in the currency of the participant, in special
        drawing rights in an amount that does not increase the participant's
        holdings of special drawing rights above the limit under Article XIX,
        Section 4, of the Articles of Agreement unless the participant agrees
        to accept special drawing rights above that limit in such repayment,
        or, after consultation with the participant, in other currencies that
        are actually convertible. Repayments to a participant under paragraph
        11(b) and 11(e) shall be credited against transfers by the participant
        for a drawer's purchases in the order in which repayment must be made
        under this paragraph 11(a).

   (b)  Before the date prescribed in paragraph 11(a), the Fund, after
        consultation with the participants, may make repayment in part or in
        full to one or several participants. The Fund shall have the option to
        make repayment under this paragraph 11(b) in the participant's
        currency, in the currency borrowed, in special drawing rights in an
        amount that does not increase the participant's holdings of special
        drawing rights above the limit under Article XIX, Section 4, of the
        Articles of Agreement unless the participant agrees to accept special
        drawing rights above that limit in such repayment, or, with the
        agreement of the participant, in other currencies that are actually
        convertible.

   (c)  Whenever a reduction in the Fund's holdings of a drawer's currency is
        attributed to a purchase of currency borrowed under this decision, the
        Fund shall promptly repay an equivalent amount. If the Fund is
        indebted to a participant as a result of transfers to finance a
        reserve tranche purchase by a drawer and the Fund's holdings of the
        drawer's currency that are not subject to repurchase are reduced as a
        result of net sales of that currency during a quarterly period covered
        by an operational budget, the Fund shall repay at the beginning of the
        next quarterly period an amount equivalent to that reduction, up to
        the amount of the indebtedness to the participant.

   (d)  Repayment under paragraph 11(c) shall be made in proportion to the
        Fund's indebtedness to the participants that made transfers in respect
        of which repayment is being made.

   (e)  Before the date prescribed in paragraph 11(a), a participant may give
        notice representing that there is a balance of payments need for
        repayment of part or all of the Fund's indebtedness and requesting
        such repayment. If a reversal of its loan may lead to further loans to
        the Fund by other participants, the participant seeking such reversal
        shall consult with the Managing Director and with the other
        participants before giving notice. The Fund shall give the
        overwhelming benefit of any doubt to the participant's representation.
        Repayment shall be made after consultation with the participant in the
        currencies of other members that are actually convertible, or in
        special drawing rights, as determined by the Fund. If the Fund's
        holdings of currencies in which repayment should be made are not
        wholly adequate, individual participants may be requested to provide
        the necessary balance under their credit arrangements subject to the
        limit of their available commitments. For all of the purposes of this
        paragraph 11, transfers under this paragraph 11(e) shall be deemed to
        have been made at the same time and for the same purchases as the
        transfers by the participant obtaining repayment under this paragraph
        11(e).

   (f)  When a repayment is made to a participant, the amount that can be
        called for under its credit arrangement in accordance with this
        decision shall be restored pro tanto.

   (g)  The Fund shall be deemed to have discharged its obligations to a
        participating institution to make repayment in accordance with the
        provisions of this paragraph or to pay interest in accordance with the
        provisions of paragraph 9 if the Fund transfers an equivalent amount
        in special drawing rights to the member in which the institution is
        established. Paragraph 12. Rates of Exchange

   (a)  The value of any transfer shall be calculated as of the date of the
        dispatch of the instructions for the transfer. The calculation shall
        be made in terms of the special drawing right in accordance with
        Article XIX, Section 7(a) of the Articles, and the Fund shall be
        obliged to repay an equivalent value.

   (b)  For all of the purposes of this decision, the value of a currency in
        terms of the special drawing right shall be calculated by the Fund in
        accordance with Rule 0-2 of the Fund's Rules and Regulations.
        Paragraph 13. Transferability
A participant may not transfer all or part of its claim to repayment under a
credit arrangement except with the prior consent of the Fund and on such terms
and conditions as the Fund may approve. Paragraph 14. Notices
Notice to or by a participating member under this decision shall be in writing
or by rapid means of communication and shall be given to or by the fiscal
agency of the participating member designated in accordance with Article V,
Section 1 of the Articles and Rule G-1 of the Rules and Regulations of the
Fund. Notice to or by a participating institution shall be in writing or by
rapid means of communication and shall be given to or by the participating
institution. Paragraph 15. Amendment

   (a)  Except as provided in paragraphs 5(b), 15(b) and 16, this decision may
        be amended during the period prescribed in paragraph 19(a) and any
        subsequent renewal periods that may be decided pursuant to paragraph
        19(b) only by a decision of the Fund and with the concurrence of
        participants representing 85 percent of total credit arrangements.
        Such concurrence shall not be necessary for the modification of the
        decision on its renewal pursuant to paragraph 19(b).

   (b)  If in its view an amendment materially affects the interest of a
        participant that voted against the amendment, the participant shall
        have the right to withdraw its adherence to this decision by giving
        notice to the Fund and the other participants within 90 days from the
        date the amendment was adopted. This provision may be amended only
        with the consent of all participants. Paragraph 16. Withdrawal of
        Adherence
Without prejudice to paragraph 15(b), a participant may withdraw its adherence
to this decision in accordance with paragraph 19(b) but may not withdraw
within the period prescribed in paragraph 19(a) except with the agreement of
the Fund and all participants. This provision may be amended only with the
consent of all participants. Paragraph 17. Withdrawal from Membership
If a participating member or a member whose institution is a participant
withdraws from membership in the Fund, the participant's credit arrangement
shall cease at the same time as the withdrawal takes effect. The Fund's
indebtedness under the credit arrangement shall be treated as an amount due
from the Fund for the purpose of Article XXVI, Section 3, and Schedule J of
the Articles. Paragraph 18. Suspension of Exchange Transactions and
Liquidation

   (a)  The right of the Fund to make calls under paragraph 7 and the
        obligation to make repayments under paragraph 11 shall be suspended
        during any suspension of exchange transactions under Article XXVII of
        the Articles.

   (b)  In the event of liquidation of the Fund, credit arrangements shall
        cease and the Fund's indebtedness shall constitute liabilities under
        Schedule K of the Articles. For the purpose of paragraph 1(a) of
        Schedule K, the currency in which the liability of the Fund shall be
        payable shall be first the currency borrowed, then the participant's
        currency and finally the currency of the drawer for whose purchases
        transfers were made by the participants. Paragraph 19. Period and
        Renewal

   (a)  This decision shall continue in existence for five years from its
        effective date. When considering a renewal of this decision for the
        period following the five-year period referred to in this paragraph
        19(a), the Fund and the participants shall review the functioning of
        this decision and shall consult on any possible modifications.

   (b)  This decision may be renewed for such period or periods and with such
        modifications, subject to paragraphs 5(b), 15(b) and 16, as the Fund
        may decide. The Fund shall adopt a decision on renewal and
        modification, if any, not later than twelve months before the end of
        the period prescribed in paragraph 19(a). Any participant may advise
        the Fund not less than six months before the end of the period
        prescribed in paragraph 19(a) that it will withdraw its adherence to
        the decision as renewed. In the absence of such notice, a participant
        shall be deemed to continue to adhere to the decision as renewed.
        Withdrawal of adherence in accordance with this paragraph 19(b) by a
        participant, whether or not included in the Annex, shall not preclude
        its subsequent adherence in accordance with paragraph 3(b).

   (c)  If this decision is terminated or not renewed, paragraphs 8 through
        14, 17 and 18(b) shall nevertheless continue to apply in connection
        with any indebtedness of the Fund under credit arrangements in
        existence at the date of the termination or expiration of the decision
        until repayment is completed. If a participant withdraws its adherence
        to this decision in accordance with paragraph 15(b), paragraph 16, or
        paragraph 19(b), it shall cease to be a participant under the
        decision, but paragraphs 8 through 14, 17 and 18(b) of the decision as
        of the date of the withdrawal shall nevertheless continue to apply to
        any indebtedness of the Fund under the former credit arrangement until
        repayment has been completed. Paragraph 20. Interpretation
Any question of interpretation raised in connection with this decision which
does not fall within the purview of Article XXIX of the Articles shall be
settled to the mutual satisfaction of the Fund, the participant raising the
question, and all other participants. For the purpose of this paragraph 20
participants shall be deemed to include those former participants to which
paragraphs 8 through 14, 17 and 18(b) continue to apply pursuant to paragraph
19(c) to the extent that any such former participant is affected by a question
of interpretation that is raised. Paragraph 21. Relationship with the General
Arrangements to Borrow and Associated Borrowing Arrangements

   (a)  When considering whether to activate the New Arrangements to Borrow or
        the General Arrangements to Borrow, the Fund shall be guided by the
        following principles: The New Arrangements to Borrow shall be the
        facility of first and principal recourse except that:

        (i)    in the event of a request for a drawing on the Fund by a
               participating member, or a member whose institution is a
               participant, in both the General Arrangements to Borrow and the
               New Arrangements to Borrow, a proposal for calls may be made
               under either of the arrangements; and

        (ii)   in the event that a proposal for calls under the New
               Arrangements to Borrow is not accepted under paragraph 7A, a
               proposal for calls may be made under the General Arrangements
               to Borrow.

   (b)  Outstanding drawings and commitments under the New Arrangements to
        Borrow and the General Arrangements to Borrow shall not exceed SDR 34
        billion, or such other amount of total credit arrangements as may be
        in effect in accordance with this decision. The available commitment
        of a participant under the New Arrangements to Borrow shall be reduced
        pro tanto by any outstanding drawings on, and commitments of, the
        participant under the General Arrangements to Borrow. The available
        commitment of a participant under the General Arrangements to Borrow
        shall be reduced pro tanto by the extent to which its credit
        arrangement under the General Arrangements to Borrow exceeds its
        available commitment under the New Arrangements to Borrow.

   (c)  References to drawings and commitments under the General Arrangements
        to Borrow shall include drawings and commitments under the Associated
        Borrowing Arrangements referred to in paragraph 23 of the General
        Arrangements to Borrow. Paragraph 22. Other Borrowing Arrangements
Nothing in this decision shall preclude the Fund from entering into any other
types of borrowing arrangements.
Decision No. 11428-(97/6), adopted
January 27, 1997
Annex Participants and Amount of Credit Arrangements
The size of each participant's credit arrangement listed below has initially
been based in principle on its relative economic strength as reflected in its
quota in the Fund. Credit arrangements are subject to a minimum of SDR 340
million. Amounts have been adjusted between some participants subject to the
condition that the total for the participants involved in an adjustment does
not change and the minimum is observed. The amounts, in terms of SDRs of the
individual credit arrangements and their total will remain in effect unless
and until changed in accordance with this decision.
The size of the Hong Kong Monetary Authority's (HKMA) credit arrangement has
not been calculated on the basis of the quota of the member whose territories
include Hong Kong. The same principle explains the special provision on
activation of the NAB to meet requests from such member.
Participant
Amount in Millions of Special Drawing Rights
Australia
810
Austria
412
Belgium
967
Canada
1396
Denmark
371
Deutsche Bundesbank
3557
Finland
340
France
2577
Hong Kong Monetary Authority
340
Italy
1772
Japan
3557
Korea
340
Kuwait
345
Luxembourg
340
Malaysia
340
Netherlands
1316
Norway
383
Saudi Arabia
1780
Singapore
340
Spain
672
Sveriges Riksbank
859
Swiss National Bank
1557
Thailand
340
United Kingdom of Great Britain and Northern Ireland
2577
United States of America
6712
Part 2ÐAmendments relating to simplified financial transactions 5
Subsections 3(2) and (3) Repeal the subsections. 6 Subsections 5A(1), (2), (3)
and (4) Repeal the subsections, substitute:

(1) The Treasurer may give the Reserve Bank a written direction:

   (a)  to buy special drawing rights from the Commonwealth for an amount
        equal to the value of the rights; or

   (b)  to sell special drawing rights to the Commonwealth for an amount equal
        to the value of the rights; or

   (c)  to buy special drawing rights from the governments of other countries,
        the Fund or other institutions, authorities or persons for an amount
        equal to:

        (i)    the value of the rights; or

        (ii)   an amount that is the equivalent of that value in the currency
               of a country other than Australia; or

   (d)  to sell special drawing rights to the governments of other countries,
        the Fund or other institutions, authorities or persons for an amount
        equal to:

        (i)    the value of the rights; or

        (ii)   an amount that is the equivalent of that value in the currency
               of a country other than Australia. 7 Subsection 5A(6) Omit "in
               exchange for special drawing rights transferred", substitute
               "for special drawing rights sold". 8 Sections 5B and 5C Repeal
               the sections.

(Minister's second reading speech made in -
House of Representatives on 29 May 1997
Senate on 19 June 1997)