International Monetary Agreements Act 1959
No. 33, 1959
An Act relating to a proposed adjustment of the Quotas of members of the International Monetary Fund and to a proposed increase of the Capital Stock of the International Bank for Reconstruction and Development
Contents
1 Short title
2 Commencement
3 Consent to increases in quota and capital stock
4 Appropriation
5 Issue of securities
International Monetary Agreements Act 1959
No. 33 of 1959
An Act relating to a proposed adjustment of the Quotas of members of the International Monetary Fund and to a proposed increase of the Capital Stock of the International Bank for Reconstruction and Development
[Assented to 13 May 1959]
The Parliament of Australia enacts:
WHEREAS the International Monetary Fund has proposed an adjustment of the quotas of members of the Fund and, in particular, has proposed an increase by one‑half of the quota of Australia:
AND WHEREAS the International Bank for Reconstruction and Development proposes to increase the capital stock of the Bank by Ten thousand million United States dollars:
BE it therefore enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:
1 Short title
This Act may be cited as the International Monetary Agreements Act 1959.
2 Commencement
This Act shall come into operation on the day on which it receives the Royal Assent.
3 Consent to increases in quota and capital stock
The approval of the Parliament is hereby given:
(a) to Australia consenting to an increase by one‑half of the quota of Australia in the International Monetary Fund; and
(b) to Australia subscribing the shares of the capital stock of the International Bank for Reconstruction and Development that Australia will become entitled to subscribe if the proposal to increase the authorized capital stock of the International Bank for Reconstruction and Development by Ten thousand million United States dollars becomes effective.
4 Appropriation
Any payment required to be made by Australia to the International Monetary Fund by reason of the increase of the quota of Australia in that Fund referred to in paragraph (a) of the last preceding section shall be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.
5 Issue of securities
Section seven of the International Monetary Agreements Act 1947 applies to any payment referred to in the last preceding section as it applies to payments under that Act.
Overview
The International Monetary Agreements Act 1959 was enacted by the Parliament of Australia to address the need for Australia to consent to adjustments in its financial commitments to international monetary institutions. Specifically, the Act provides the legislative framework for Australia's consent to a significant increase in its quota within the International Monetary Fund (IMF) and its subscription to additional shares in the capital stock of the International Bank for Reconstruction and Development (IBRD), now known as the World Bank. By authorising these financial commitments, the Act facilitates Australia's participation in global economic governance and supports its financial obligations under the IMF and IBRD agreements. The policy objective behind this legislation is to ensure that Australia's increased financial contribution aligns with its role and responsibilities within these international financial institutions, thereby supporting global economic stability and development.
Scope and Application
The International Monetary Agreements Act 1959 applies to the Commonwealth of Australia, providing the legal framework for Australia to consent to specific changes proposed by the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD). This Act allows the Australian government to agree to an increase by one-half of Australia's quota within the IMF and to subscribe to the additional shares in the capital stock of the IBRD if the proposed increase of Ten thousand million United States dollars in the IBRD's capital stock becomes effective. Any financial obligations arising from the quota increase in the IMF must be met from the Consolidated Revenue Fund, as stipulated in the Act. The Act also extends the application of certain provisions from the International Monetary Agreements Act 1947 to the payments required under this Act. The Act's geographic reach is limited to the Commonwealth of Australia, and it does not specify any exclusions, exemptions, or thresholds beyond those outlined in its provisions. The scope of the Act may be further defined or extended through subordinate instruments.
Key Provisions
The International Monetary Agreements Act 1959 (the 'Act') provides the legislative framework for Australia's consent to two significant international financial initiatives. Firstly, section 3(a) grants the Australian Parliament's consent for Australia to increase its quota in the International Monetary Fund by one-half. This adjustment reflects Australia's commitment to the Fund's operations and its willingness to contribute more substantially to the global financial system. Secondly, section 3(b) authorises Australia to subscribe to the additional shares of the International Bank for Reconstruction and Development's capital stock, contingent on the Bank's proposal to increase its authorised capital stock by ten thousand million United States dollars. This subscription signifies Australia's support for the Bank's efforts to mobilise additional resources for development projects.
The Act imposes several obligations on the Australian government in relation to these international agreements. Under section 4, any payment required to be made by Australia to the International Monetary Fund due to the quota increase must be paid from the Consolidated Revenue Fund. This ensures that the financial burden of the quota adjustment is managed within the framework of Australia's existing fiscal resources. Additionally, section 5 applies the provisions of section seven of the International Monetary Agreements Act 1947 to any payment made under this Act, thereby incorporating relevant rules and procedures established in the earlier legislation.
Breach of the obligations and requirements outlined in the Act may result in civil or criminal consequences. Although the Act itself does not explicitly detail penalties for non-compliance, the nature of the agreements and the international obligations involved may attract consequences under other applicable laws. Failure to make payments as required could potentially impact Australia's standing in international financial institutions and may have broader diplomatic and economic repercussions. Moreover, any action taken by the Australian government in relation to these international agreements must align with the terms set out in the Act, and any deviation could be subject to scrutiny and potential legal challenges.