INTERNATIONAL DEVELOPMENT ASSOCIATION AGREEMENT ACT

ARRANGEMENT OF SECTIONS

   1   Short title

   2   Interpretation

   3   Approval of acceptance of Association Agreement

   4   Financial Provisions

   5   Status, immunities and privileges of the Association

      SCHEDULE

 

INTERNATIONAL DEVELOPMENT ASSOCIATION AGREEMENT ACT

[Date of Commencement: 5th March, 1964]

Act 4 of 1964.

1   Short title

   This Act may be cited as the International Development Association Agreement Act.

2   Interpretation

   In this Act-

   "the Association" means the International Development Association established under the Association Agreement;

   "the Association Agreement" means the Agreement, as amended, for the establishment and operation of an international body to be called the International Development Association, and of which the text of the Articles is set out in the Schedule:

   "the Membership Resolution" means the Resolution adopted by the Board of Governors of the Association, specifying the terms and conditions upon which Jamaica shall be admitted to membership in the Association.

3   Approval of acceptance of Association Agreement

   Acceptance by the Government of the Association Agreement is hereby approved.

4   Financial Provisions

   (1) The Minister responsible for finance is authorised to pay for the account of Jamaica the amounts payable from time to time to the Association under the Membership Resolution and the Association Agreement:

   Provided that the Bank of Jamaica may from time to time, subject to the terms of any agreement made by that Bank with the Government and except where payments are required to be made pursuant to subsection (2), pay from its own funds such of the amounts aforesaid as may be specified in the Agreement.

   (2) The Minister responsible for finance may create and issue to the Association any such non-interest bearing and non-negotiable notes or other obligations as are provided for by section 2 of Article II of the Association Agreement, and any payments in respect of any such notes or obligations so created and issued shall be charged on the Consolidated Fund.

   (3) The Minister responsible for finance may borrow from any person, any sum or sums required for payments under this section and, for the purpose of such borrowing, he may create and issue any securities bearing such rate of interest and subject to such conditions as to repayment, redemption or otherwise as he thinks fit.

   (4) The principal and interest of any securities issued under subsection (3) and the expenses incurred in connection with their issue shall be charged on the Consolidated Fund.

   (5) Subject to the terms of any agreement to the contrary made by the Bank of Jamaica with the Government pursuant to the proviso to subsection (1), any moneys received by the Government from the Association or raised by securities under subsection (3) shall be paid into the Consolidated Fund Account and shall form part of the Consolidated Fund and be available in any manner in which that Fund is available.

   (6) The Bank of Jamaica shall act as a depository for the holdings of currency of Jamaica and other assets of the Association.

5    Status, immunities and privileges of the Association

   The provisions of sections 2, 3, 4, 5, 6, 7, 8 and 9 of Article VIII of the Association Agreement shall have the force of law in Jamaica, subject to the proviso that nothing in section 9 of Article VIII of the Association Agreement shall be construed-

         (i)   as entitling the Association to import goods free of customs duty without any restriction on their subsequent sale in the country to which they were imported;

         (ii)   as conferring on the Association any exemption from duties or taxes which form part of the price of goods sold; or

         (iii)   as conferring on the Association any exemption from taxes or duties which are in fact no more than charges for services rendered.

SCHEDULE

(Section 2)

ARTICLES OF AGREEMENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION

   The Governments on whose behalf this Agreement is signed,

Considering:

   That mutual cooperation for constructive economic purposes, healthy development of the world economy and balanced growth of international trade foster international relationships conducive to the maintenance of peace and world prosperity;

   That an acceleration of economic development which will promote higher standards of living and economic and social progress in the less developed countries is desirable not only in the interests of those countries but also in the interests of the international community as a whole;

   That achievement of these objectives would be facilitated by an increase in the international flow of capital, public and private, to assist in the development of the resources of the less developed countries, do hereby agree as follows:

INTRODUCTORY ARTICLE

   The International Development Association (hereinafter called "the Association") is established and shall operate in accordance with the following provisions:

ARTICLE I
Purposes

   The purposes of the Association are to promote economic development, increase productivity and thus raise standards of living in the less developed areas of the world included within the Association's membership, in particular by providing finance to meet their important developmental requirements on terms which are more flexible and bear less heavily on the balance of payments than those of conventional loans, thereby furthering the developmental objectives of the International Bank for Reconstruction and Development (hereinafter called "the Bank") and supplementing its activities.

   The Association shall be guided in all its decisions by the provisions of this Article.

ARTICLE II
Membership; Initial Subscriptions

SECTION 1. Membership

   (a)   The original members of the Association shall be those members of the Bank listed in Schedule A hereto which, on or before the date specified in Article XI, section 2 (c), accept membership in the Association.

   (b)   Membership shall be open to other members of the Bank at such times and in accordance with such terms as the Association may determine.

SECTION 2. Initial Subscription

   (a)   Upon accepting membership, each member shall subscribe funds in the amount assigned to it. Such subscriptions are herein referred to as initial subscriptions.

   (b)   The initial subscriptions assigned to each original member shall be in the amount set forth opposite its name in Schedule A, expressed in terms of United States dollars of the weight and fineness in effect on January 1, 1960.

   (c)   Ten per cent of the initial subscription of each original member shall be payable in gold or freely convertible currency as follows: fifty per cent within thirty days after the date on which the Association shall begin operations pursuant to Article XI, section 4, or on the date on which the original member becomes a member, whichever shall be later; twelve and one-half per cent one year after the beginning of operations of the Association; and twelve and one-half per cent each year thereafter at annual intervals until the ten per cent portion of the initial subscription shall have been paid in full.

   (d)   The remaining ninety per cent of the initial subscription of each original member shall be payable in gold or freely convertible currency in the case of members listed in Part I of Schedule A, and in the currency of the subscribing member in the case of members listed in Part II of Schedule A. This ninety per cent portion of initial subscriptions of original members shall be payable in five equal annual instalments as follows: the first such instalment within thirty days after the date on which the Association shall begin operations pursuant to Article XI, section 4, or on the date on which the original member becomes a member, whichever shall be later; the second instalment one year after the beginning of operations of the Association, and succeeding instalments each year thereafter at annual intervals until the ninety per cent portion of the initial subscription shall have been paid in full.

   (e)   The Association shall accept from any member, in place of any part of the member's currency paid in or payable by the member under the preceding subsection (d)or under section 2 of Article IV and not needed by the Association in its operations, notes or similar obligations issued by the government of the member or the depository designated by such member, which shall be non-negotiable, non-interest-bearing and payable at their par value on demand to the account of the Association in the designated depository.

   (f)   For the purposes of this Agreement the Association shall regard as "freely convertible currency":

         (i)   currency of a member which the Association determines after consultation with the International Monetary Fund, is adequately convertible into the currencies of other members for the purposes of the Association's operations; or

         (ii)   currency of a member which such member agrees, on terms satisfactory to the Association, to exchange for the currencies of other members for the purposes of the Association's operations.

   (g)   Except as the Association may otherwise agree, each member listed in Part I of Schedule A shall maintain, in respect of its currency paid in by it as freely convertible currency pursuant to subsection (d) of this section, the same convertibility as existed at the time of payment.

   (h)   The conditions on which the initial subscriptions of members other than original members may be made, and the amounts and the terms of payment thereof, shall be determined by the Association pursuant to section 1(b) of this Article.

SECTION 3. Limitation on Liability

   No member shall be liable, by reason of its membership, for obligations of the Association.

ARTICLE III
Additions to Resources

SECTION 1. Additional Subscriptions

   (a)   The Association shall at such time as it deems appropriate in the light of the schedule for completion of payments on initial subscriptions of original members, and at intervals of approximately five years thereafter, review the adequacy of its resources and, if it deems desirable, shall authorise a general increase in subscriptions. Notwithstanding the foregoing, general or individual increases in subscriptions may be authorised at any time, provided that an individual increase shall be considered only at the request of the member involved. Subscriptions pursuant to this section are herein referred to as additional subscriptions.

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