International Monetary Agreements Amendment Act (No. 1) 2001

Administered by Department of the Treasury

Legislation au C2004A00768 In force Act

Legislation content

 

 

 

 

International Monetary Agreements Amendment Act (No. 1) 2001

 

No. 1, 2001

 

 

 

 

International Monetary Agreements Amendment Act (No. 1) 2001

 

No. 1, 2001

 

 

 

 

An Act to amend the International Monetary Agreements Act 1947, and for related purposes

 

 

Contents

1 Short title...................................

2 Commencement...............................

3 Schedule(s)..................................

Schedule 1—Amendment of the International Monetary Agreements Act 1947

 

International Monetary Agreements Amendment Act (No. 1) 2001

No. 1, 2001

 

 

 

An Act to amend the International Monetary Agreements Act 1947, and for related purposes

[Assented to 2 March 2001]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the International Monetary Agreements Amendment Act (No. 1) 2001.

2  Commencement

 (1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.

 (2) Schedule 1 commences on a day to be fixed by Proclamation.

 (3) If Schedule 1 does not commence within the period of 6 months beginning on the day on which the Fourth Amendment of the Articles of Agreement of the Fund enters into force, that Schedule commences on the first day after the end of that period.

Note: The Fourth Amendment of the Articles of Agreement comprises the amendments referred to in Schedule 1 and enters into force when the Fund certifies that three‑fifths of the members having 85% of the total voting power have accepted it.

3  Schedule(s)

  Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


Schedule 1—Amendment of the International Monetary Agreements Act 1947

 

1  Schedule 1 (section 1 of Article XV of the Articles of Agreement of the International Monetary Fund)

Repeal the section, substitute:

 

Section 1. Authority to allocate special drawing rights

 

(a) To meet the need, as and when it arises, for a supplement to existing reserve assets, the Fund is authorized to allocate special drawing rights in accordance with the provisions of Article XVIII to members that are participants in the Special Drawing Rights Department.

 

(b) In addition, the Fund shall allocate special drawing rights to members that are participants in the Special Drawing Rights Department in accordance with the provisions of Schedule M.

2  Schedule 1 (at the end of the Articles of Agreement of the International Monetary Fund)

Add:

 

SCHEDULE M

Special One‑Time Allocation of Special Drawing Rights

 

1. Subject to 4 below, each member that, as of September 19, 1997, is a participant in the Special Drawing Rights Department shall, on the 30th day following the effective date of the fourth amendment of this Agreement, receive an allocation of special drawing rights in an amount that will result in its net cumulative allocation of special drawing rights being equal to 29.315788813 percent of its quota as of September 19, 1997, provided that, for participants whose quotas have not been adjusted as proposed in Resolution No. 45‑2 of the Board of Governors, calculations shall be made on the basis of the quotas proposed in that resolution.

 

2. (a)  Subject to 4 below, each country that becomes a participant in the Special Drawing Rights Department after September 19, 1997 but within three months of the date of its membership in the Fund shall receive an allocation of special drawing rights in an amount calculated in accordance with (b) and (c) below on the 30th day following the later of: (i) the date on which the new member becomes a participant in the Special Drawing Rights Department, or (ii) the effective date of the fourth amendment of this Agreement.

 

 (b)  For the purposes of (a) above, each participant shall receive an amount of special drawing rights that will result in such participant’s net cumulative allocation being equal to 29.315788813 percent of its quota as of the date on which the member becomes a participant in the Special Drawing Rights Department, as adjusted:

 

  (i)  first, by multiplying 29.315788813 percent by the ratio of the total of quotas, as calculated under 1 above, of the participants described in (c) below to the total of quotas of such participants as of the date on which the member became a participant in the Special Drawing Rights Department, and

 

  (ii)  second, by multiplying the product of (i) above by the ratio of the total of the sum of the net cumulative allocations of special drawing rights received under Article XVIII of the participants described in (c) below as of the date on which the member became a participant in the Special Drawing Rights Department and the allocations received by such participants under 1 above to the total of the sum of the net cumulative allocations of special drawing rights received under Article XVIII of such participants as of September 19, 1997 and the allocations received by such participants under 1 above.

 

 (c)  For the purposes of the adjustments to be made under (b) above, the participants in the Special Drawing Rights Department shall be members that are participants as of September 19, 1997 and (i) continue to be participants in the Special Drawing Rights Department as of the date on which the member became a participant in the Special Drawing Rights Department, and (ii) have received all allocations made by the Fund after September 19, 1997.

 

3. (a)  Subject to 4 below, if the Federal Republic of Yugoslavia (Serbia/Montenegro) succeeds to the membership in the Fund and the participation in the Special Drawing Rights Department of the former Socialist Federal Republic of Yugoslavia in accordance with the terms and conditions of Executive Board Decision No. 10237‑(92/150), adopted December 14, 1992, it shall receive an allocation of special drawing rights in an amount calculated in accordance with (b) below in the 30th day following the later of: (i) the date on which the Federal Republic of Yugoslavia (Serbia/Montenegro) succeeds to membership in the Fund and participation in the Special Drawing Rights Department in accordance with the terms and conditions of Executive Board Decision No. 10237‑(92/150), or (ii) the effective date of the fourth amendment of this Agreement.

 

 (b)  For the purposes of (a) above, the Federal Republic of Yugoslavia (Serbia/Montenegro) shall receive an amount of special drawing rights that will result in its net cumulative allocation being equal to 29.315788813 percent of the quota proposed to it under paragraph 3(c) of Executive Board Decision No. 10237‑(92/150), as adjusted in accordance with 2(b)(ii) and (c) above as of the date on which the Federal Republic of Yugoslavia (Serbia/Montenegro) qualifies for an allocation under (a) above.

 

4. The Fund shall not allocate special drawing rights under this Schedule to those participants that have notified the Fund in writing prior to the date of the allocation of their desire not to receive the allocation.

 

5. (a)  If, at the time an allocation is made to a participant under 1, 2, or 3 above, the participant has overdue obligations to the Fund, the special drawing rights so allocated shall be deposited and held in an escrow account within the Special Drawing Rights Department and shall be released to the participant upon discharge of all its overdue obligations to the Fund.

 

 (b)  Special drawing rights being held in an escrow account shall not be available for any use and shall not be included in any calculations of allocations or holdings of special drawing rights for the purposes of the Articles, except for calculations under this Schedule. If special drawing rights allocated to a participant are held in an escrow account when the participant terminates its participation in the Special Drawing Rights Department or when it is decided to liquidate the Special Drawing Rights Department, such special drawing rights shall be canceled.

 

 (c)  For purposes of this paragraph, overdue obligations to the Fund consist of overdue repurchases and charges in the General Resources Account, overdue principal and interest on loans in the Special Disbursement Account, overdue charges and assessments in the Special Drawing Rights Department, and overdue liabilities to the Fund as trustee.

 

 (d)  Except for the provisions of this paragraph, the principle of separation between the General Department and the Special Drawing Rights Department and the unconditional character of special drawing rights as reserve assets shall be maintained.

 

[Minister’s second reading speech made in—

House of Representatives on 12 October 2000

Senate on 30 November 2000]

 

 

 

 

 

(168/00)


 

 

 

Overview

The International Monetary Agreements Amendment Act (No. 1) 2001 was enacted by the Parliament of Australia to update the International Monetary Agreements Act 1947, addressing the need for modernising Australia’s legislative framework in alignment with international monetary policies and agreements. This Act specifically aims to incorporate amendments to the Articles of Agreement of the International Monetary Fund, particularly concerning the allocation of special drawing rights to participating members. The policy objective is to ensure that Australia's participation in international monetary systems remains robust and compliant with global financial standards. The amendments were designed to reflect recent international agreements and practices, facilitating smoother integration and cooperation in global financial activities. The Act includes a schedule that details the specific changes to be made to the International Monetary Agreements Act 1947, such as the repeal and substitution of certain sections and the addition of new provisions regarding special drawing rights allocations. This legislative update is crucial for maintaining Australia's active role in the international financial community and ensuring that its financial policies are in sync with global standards. The International Monetary Agreements Amendment Act (No. 1) 2001 thus plays a pivotal role in enhancing Australia's capacity to engage effectively in international monetary matters.

Scope and Application

The International Monetary Agreements Amendment Act (No. 1) 2001 is an Act of the Parliament of Australia that amends the International Monetary Agreements Act 1947 to align it with changes in the Articles of Agreement of the International Monetary Fund (IMF). This Act applies to all members of the IMF who are participants in the Special Drawing Rights Department, ensuring that Australia's legislation reflects the latest international financial standards and agreements. The Act's geographic reach extends to all Australian entities participating in the IMF and involved in international monetary transactions. The Act outlines specific provisions for the allocation of special drawing rights to IMF member countries, including a special one-time allocation for existing and new participants, and adjustments for countries with quota changes or overdue obligations. Any exclusions or conditions are explicitly stated within the Act, ensuring clarity and legal certainty for all parties involved. The Act may be further extended or restricted through subordinate instruments, which are to be detailed in the Schedules attached to the Act.

Key Provisions

The International Monetary Agreements Amendment Act (No. 1) 2001 (Cth) amends the International Monetary Agreements Act 1947 (Cth) to update the allocation provisions for special drawing rights (SDRs) under the Articles of Agreement of the International Monetary Fund (IMF). Section 1 of the Schedule repeals the existing provisions on SDR allocation and replaces them with new provisions. The Act now authorises the IMF to allocate SDRs to meet the need for a supplement to existing reserve assets, as per Article XVIII, and in accordance with Schedule M (Schedule 1 item 1). Schedule M provides detailed rules for the one-time allocation of SDRs to existing and new participants in the Special Drawing Rights Department, including adjustments to ensure consistency and fairness (Schedule 1 item 2). The Act imposes obligations on the IMF to implement the new allocation provisions in Schedule M, including calculating and distributing SDRs to existing participants, new participants, and the Federal Republic of Yugoslavia (Serbia/Montenegro) under certain conditions (Schedule 1 items 1-3). The IMF must also hold SDRs in escrow for participants with overdue obligations to the Fund and release them only upon discharge of those obligations (Schedule 1 item 4). Additionally, the Act requires the IMF to maintain the separation between the General Department and the Special Drawing Rights Department and to uphold the unconditional character of SDRs as reserve assets (Schedule 1 item 4(d)). Breach of the obligations imposed by the Act could potentially lead to legal consequences. However, the Act itself does not explicitly outline specific offences, penalties, or consequences for non-compliance. The potential legal repercussions would likely stem from any resulting actions taken by the IMF under the Articles of Agreement or other international monetary laws. The IMF could pursue remedies against non-compliant parties through international forums or mechanisms, such as the International Court of Justice or arbitration processes, depending on the nature and extent of the breach. While the Act does not impose direct penalties, failure to comply with its provisions could impact a party's standing and relationships within the international monetary system.

Legal classification tags

Area of Law
International Law
Instrument
Act
Concepts
Commencement Provisions
Repeal & Amendment
Special Drawing Rights Allocation

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.