International Monetary Agreements Act 1947

Contents

1Short title#

This Act may be cited as the International Monetary Agreements Act 1947.

2Commencement#

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

3Interpretation#

In this Act, unless the contrary intention appears:

Bank means the International Bank for Reconstruction and Development.

Bank Agreement means the Articles of Agreement of the International Bank for Reconstruction and Development, done at Washington on 27 December 1945, as in force for Australia from time to time.

Note: The Articles of Agreement of the International Bank for Reconstruction and Development are in Australian Treaty Series 1947 No. 15 ([1947] ATS 15) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

Fund means the International Monetary Fund.

Fund Agreement means the Articles of Agreement of the International Monetary Fund, done at Washington on 27 December 1945, as in force for Australia from time to time.

Note: The Articles of Agreement of the International Monetary Fund are in Australian Treaty Series 1947 No. 11 ([1947] ATS 11) and could in 2024 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

Investment Disputes Convention means the Convention on the Settlement of Investment Disputes between States and Nationals of Other States signed by Australia on 24 March 1975, the English text of which is set out in Schedule 3 to the International Arbitration Act 1974.

New Arrangements to Borrow means Decision No. 11428-(97/6), dated 27 January 1997, of the Executive Board of the Fund, as amended and renewed by the following decisions of the Executive Board of the Fund:

(a)Decision No. 14577-(10/35), dated 12 April 2010;

(b)Decision No. 15014-(11/110), dated 16 November 2011;

(c)Decision No. 15073-(12/1), dated 21 December 2011;

(d)Decision No. 16079-(16/99), dated 4 November 2016;

(e)Decision No. 16645-(20/5), dated 16 January 2020;

(f)any other decision of the Executive Board of the Fund that is notified under subsection 8B(3).

Note: The decision referred to in paragraph (d) is in Australian Treaty Series 2017 No. 42 ([2017] ATS 42) and could in 2019 be viewed in the Australian Treaties Library on the AustLII website (http://www.austlii.edu.au).

relevant financial obligation, in relation to the Bank, has the meaning given by section 3A.

Reserve Bank means the Reserve Bank of Australia.

special drawing rights means special drawing rights allocated by the Fund under Article XV of the Fund Agreement.

Special Drawing Rights Department means the Special Drawing Rights Department maintained by the Fund under the Fund Agreement.

value, in relation to special drawing rights, means the amount that is the equivalent in the currency of Australia of the value of the rights as fixed under the Fund Agreement.

World Bank organisation means any of the following:

(a)the International Bank for Reconstruction and Development;

(b)the International Development Association (referred to in the International Development Association Act 1960);

(c)the International Finance Corporation (referred to in the International Finance Corporation Act 1955);

(d)the Multilateral Investment Guarantee Agency (referred to in the Multilateral Investment Guarantee Agency Act 1997);

(e)the International Centre for Settlement of Investment Disputes established by the Investment Disputes Convention.

3AMeaning of relevant financial obligationin relation to the Bank#

(1)For the purposes of this Act, a relevant financial obligation in relation to the Bank is an obligation of Australia (contingent or otherwise) for which the following requirements are satisfied:

(a)the obligation requires (or could require) Australia to make one or more payments;

(b)the obligation is undertaken or imposed under:

(i)the Bank Agreement; or

(ii)an agreement or arrangement between Australia and the Bank (other than an agreement mentioned in section 8CA); or

(iii)a resolution adopted by the Board of Governors of the Bank;

(c)for an obligation undertaken or imposed under an agreement, arrangement or resolution mentioned in subparagraph (b)(ii) or (iii)—the agreement, arrangement or resolution relates to Australia:

(i)purchasing or subscribing to shares of the capital stock of the Bank; or

(ii)purchasing a bond, debenture, convertible note or similar financial instrument issued by the Bank; or

(iii)granting a guarantee in support of the purposes of the Bank; or

(iv)providing any other form of financial accommodation in support of the purposes of the Bank;

(d)the obligation is not excluded by a determination under subsection (5).

(2)However, for the purposes of this Act:

(a)an obligation that is undertaken or imposed after the commencement of this section is a relevant financial obligation in relation to the Bank only if notice of the obligation has been given under subsection (5); and

(b)an increase in an amount of a relevant financial obligation in relation to the Bank because of the variation of, or making of a new, agreement, arrangement or resolution after the commencement of this section is to be taken into account only if notice of the increase has been given under subsection (5).

(3)To avoid doubt, for the purposes of subsection (2), the timing of when a contingency happens or may happen does not affect the timing of when a contingent obligation itself is undertaken or imposed.

Note: For example, an obligation to make one or more payments in response to a call on callable shares is undertaken or imposed when the callable shares are purchased or subscribed to (rather than when the call is made).

Treasurer may exclude obligations

(4)The Treasurer may, by legislative instrument, determine that an obligation is excluded for the purposes of paragraph (1)(d).

Notification of new financial obligations

(5)The Treasurer may, by legislative instrument, give notice of:

(a)the undertaking or imposition of an obligation for the purposes of paragraph (2)(a); or

(b)an increase in an amount for the purposes of paragraph (2)(b).

(6)A legislative instrument under subsection (5) commences at the later of the following days or times:

(a)the earliest day or time applicable under subsection 12(1) of the Legislation Act 2003;

(b)the start of the day immediately after the last day on which a resolution referred to in subsection 42(1) of the Legislation Act 2003 disallowing the instrument could be passed.

4Membership of Australia of the Fund and of the Bank#

The membership of Australia of the Fund and of the Bank is approved.

4AParticipation in Special Drawing Rights Department of Fund#

Participation by Australia in the Special Drawing Rights Department is approved.

5Reserve Bank to be depository#

The Reserve Bank, being the central bank of the Commonwealth of Australia, is hereby designated as the depository in Australia for all the holdings of Australian currency, and for other assets, of the Fund and of the Bank.

5ATransfers to and from Reserve Bank of special drawing rights#

(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.

(5)An instrument giving directions under subsection (1) may contain such incidental or supplementary directions as the Treasurer thinks necessary.

(6)Amounts from time to time payable by the Commonwealth for special drawing rights sold to it by the Reserve Bank under this section are payable out of the Consolidated Revenue Fund, which is appropriated accordingly.

5EExemption of special drawing rights from taxation#

Special drawing rights, and operations and transactions in relation to special drawing rights, are not liable to taxation under any law of the Commonwealth, of a State or of a Territory.

6Authority to borrow#

(1)The Treasurer may, from time to time, borrow, under the provisions of the Commonwealth Inscribed Stock Act 1911 or under the provisions of any Act authorizing the issue of Treasury Bills, such amounts as are required to be paid by Australia (not being amounts referred to in section 8 of this Act) by reason of:

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

(b)its obligations under the New Arrangements to Borrow; or

(d)its obligations under an agreement entered into under section 8CAB.

(2)Moneys so borrowed may be issued and applied for the purposes of making the payments specified in subsection (1), and of making payments in redemption of securities issued under section 7.

7Issue of securities#

(1)To the extent that the Fund is prepared to accept from Australia promissory notes or other securities issued by Australia in place of any of the following, the Treasurer may make and issue those securities:

(a)any payment that Australia is required to make to the Fund;

(b)any Australian currency held by the Fund.

(1A)To the extent that the Bank or another body is prepared to accept from Australia promissory notes or other securities issued by Australia in place of any of the following, the Treasurer may make and issue those securities:

(a)any payment to the Bank or other body that Australia is required to make in accordance with a relevant financial obligation in relation to the Bank;

(b)any Australian currency held by the Bank.

(2)A security issued under subsection (1) or (1A) is to be:

(a)non-negotiable; and

(b)non-interest bearing; and

(c)payable to the Fund, Bank or other body, as the case may be, at its par value on demand.

(3)Sums payable under any security issued under this section shall be a charge on the Consolidated Revenue Fund.

(4)Where, upon the redemption of any such security, the moneys necessary to redeem the security are not paid out of the proceeds of any loan raised under this Act, the moneys shall be paid out of the Consolidated Revenue Fund, which is, to the necessary extent, hereby appropriated accordingly.

8Payments under the Fund Agreement#

There shall be payable out of the Consolidated Revenue Fund, which is, to the necessary extent, hereby appropriated accordingly, such amounts as Australia is, from time to time, required to pay to the Fund in pursuance of the following provisions of the Fund Agreement:

(a)Section 3 of Article III (which deals with payments when quotas are changed);

(b)Section 8 of Article V (which deals with charges).

8AAppropriation for purposes of Special Drawing Rights Department#

(1)The Consolidated Revenue Fund is appropriated for the purposes of making any payments required to be made by Australia to the Fund due to its obligations as a participant in the Special Drawing Rights Department.

(2)Subsection (1) does not apply to a payment to be made by Australia for the purposes of buying special drawing rights (see section 5A).

8BAppropriation for the purposes of the New Arrangements to Borrow#

(1)The Consolidated Revenue Fund is appropriated for the purposes of making any payments required to be made by Australia under the New Arrangements to Borrow.

Amendment or renewal of the New Arrangements to Borrow

(3)The Treasurer may, by legislative instrument, give notice of an amendment or renewal of the New Arrangements to Borrow by a decision of the Executive Board of the Fund.

Note: References to the New Arrangements to Borrow in this Act only incorporate references to amendments that are set out in the definition of New Arrangements to Borrow in section 3 or notified under this subsection (see paragraph (f) of that definition).

(4)A legislative instrument under subsection (3) commences at the later of the following days or times:

(a)the earliest day or time applicable under subsection 12(1) of the Legislation Act 2003;

(b)the start of the day immediately after the last day on which a resolution referred to in subsection 42(1) of the Legislation Act 2003 disallowing the instrument could be passed.

8CFinancial assistance by Australia in support of Fund programs#

(1)If:

(a)the Treasurer is satisfied that a Fund program operates, or is to operate, for the benefit of a country other than Australia (the recipient country); and

(b)the Treasurer is satisfied that at least one other government or organisation has provided, or intends to provide, financial assistance to the recipient country in support of the Fund program;

then the Treasurer, on behalf of Australia, may enter into an agreement that provides for Australia to lend money to the recipient country or to enter into a currency swap with the recipient country.

(2)An agreement under subsection (1) must provide for Australia to be able to require early repayment in the event that the Fund program fails to commence, is suspended, or terminates prematurely.

(3)The Consolidated Revenue Fund is appropriated for the purposes of payments by Australia under, or in connection with:

(a)an agreement made under subsection (1); or

(b)a pre-commencement agreement referred to in subsection (4).

(4)For the purposes of subsection (3), pre-commencement agreement means an agreement that satisfies the following conditions:

(a)the agreement was entered into on behalf of Australia before the commencement of this section, in response to a request by the Fund for Australia to provide assistance to the Republic of Indonesia or the Republic of Korea (the recipient country) in support of a Fund program for the benefit of the recipient country;

(b)the agreement provides for Australia to lend money to the recipient country or to enter into a currency swap with the recipient country;

(c)the Treasurer is satisfied that at least one other government or organisation has provided, or intends to provide, financial assistance to the recipient country in response to a similar request from the Fund;

(d)the agreement provides for Australia to be able to require early repayment in the event of the suspension, or premature termination, of the Fund program.

(5)Payments referred to in subsection (3), and transactions in relation to those payments, are not liable to taxation under any law of the Commonwealth or of a State or Territory.

8CABFurther agreements to provide loans to the Fund#

(1)The Minister may, on behalf of Australia, enter into one or more agreements with the Fund that:

(a)provide for Australia to provide loans to the Fund; and

(b)contain terms and conditions determined by the Minister.

(2)The Consolidated Revenue Fund is appropriated for the purposes of payments by Australia under an agreement referred to in subsection (1).

8CAFinancial assistance by Australia in support of World Bank or Asian Development Bank programs#

(1)If, for a program of a World Bank organisation or of the Asian Development Bank:

(a)that organisation or Bank requests Australia to provide assistance to another country (the recipient country) in support of the program for the benefit of the recipient country; and

(b)the Minister is satisfied that at least one other government or organisation has provided, or intends to provide, financial assistance to the recipient country in response to the same or a similar program of that organisation or Bank;

then the Minister, on behalf of Australia, may enter into an agreement that provides for Australia to lend money to the recipient country or to enter into a currency swap with the recipient country.

Note: The condition in paragraph (1)(b) would be satisfied if, for example, the Minister is satisfied that the Asian Development Bank intends to provide financial assistance to the recipient country in response to a program of a World Bank organisation.

(2)For the purposes of paragraph (1)(b), disregard financial assistance provided, or to be provided, by a World Bank organisation in response to a program of another World Bank organisation.

(3)An agreement under subsection (1) must provide for Australia to be able to require early repayment in the event of the suspension, or premature termination, of the program referred to in paragraph (1)(a).

(4)The Consolidated Revenue Fund is appropriated for the purposes of payments by Australia under, or in connection with, an agreement made under subsection (1).

(5)Payments referred to in subsection (4), and transactions in relation to those payments, are not liable to taxation under any law of the Commonwealth or of a State or Territory.

8DPublic release and tabling of national interest statement#

(1)The Treasurer is to publicly release and table in each House of the Parliament a national interest statement relating to an agreement entered into by Australia under section 8C or 8CA as soon as practicable after Australia has entered into the agreement.

(2)If a House of the Parliament is not sitting when the Treasurer publicly releases a national interest statement, he or she is to table the statement in that House of the Parliament as soon as practicable after it next sits.

8EContents of national interest statement#

A national interest statement under section 8D is to include:

(a)a description, in as much detail as practicable, of the nature and terms of the agreement; and

(b)the reasons why the agreement is in Australia’s national interest, having regard, in particular, to foreign policy, trade and economic interests.

8FInquiry and report by Joint Standing Committee on Foreign Affairs, Defence and Trade#

A national interest statement tabled in the Parliament under section 8D shall stand referred for inquiry and report within two months of the reference to the Joint Standing Committee on Foreign Affairs, Defence and Trade constituted under resolutions of the Senate and the House of Representatives.

9Appropriation for relevant financial obligations in relation to the Bank#

The Consolidated Revenue Fund is appropriated for the purposes of making any payments necessary to meet relevant financial obligations in relation to the Bank.

10Annual report#

(1)As soon as practicable after the end of each financial year the Treasurer shall prepare and cause to be laid before each House of the Parliament a report on the operations of this Act and of the operations, in so far as they relate to Australia, of the Fund Agreement and of the Bank Agreement, during that financial year.

(2)Without limiting the generality of subsection (1), the report must include:

(a)a statement of the relevant financial obligations in relation to the Bank notified in that financial year under subsection 3A(5); and

(b)a statement describing the nature and extent of Australia’s participation as a member of each of the following during that year:

(i)the Bank;

(ii)the International Development Association (referred to in the International Development Association Act 1960);

(iii)the International Finance Corporation (referred to in the International Finance Corporation Act 1955); and

(c)an assessment of the managerial efficiency, and financial and economic effectiveness, of the Bank in carrying out its purposes as provided for in the Bank Agreement; and

(d)an assessment of the managerial efficiency, and financial and economic effectiveness, of the International Development Association (referred to in the International Development Association Act 1960) in carrying out its purposes as provided for in the Agreement (as defined in that Act); and

(e)an assessment of the managerial efficiency, and financial and economic effectiveness, of the International Finance Corporation (referred to in the International Finance Corporation Act 1955) in carrying out its purpose as provided for in the Agreement (as defined in that Act).

10ADelegation by the Treasurer#

(1)The Treasurer may, in writing, delegate to the Secretary of the Department, or an SES employee or acting SES employee in the Department, all or any of the Treasurer’s functions or powers under the following provisions:

(a)section 5A (transfers to and from the Reserve Bank of special drawing rights);

(b)subsection 7(1A) (issuing securities to the Bank or another body).

Note: Sections 34AA to 34A of the Acts Interpretation Act 1901 contain provisions relating to delegations.

(2)A person performing a function or exercising powers under a delegation under subsection (1) must comply with any written directions of the Treasurer under subsection (3).

(3)The Treasurer may, in writing, give directions for the purposes of subsection (2).

11Regulations#

The Governor-General may make regulations not inconsistent with this Act prescribing all matters which are necessary or convenient to be prescribed for carrying out or giving effect to this Act, the Fund Agreement (other than Article IX) and the Bank Agreement (other than Article VII).

Sourced from the Federal Register of Legislation at legislation.gov.au, © Commonwealth of Australia, licensed under CC BY 4.0. Compilations may have been reformatted.