JOHN CARLOS I

KING OF SPAIN

To all who present it and understand it.

Sabed: That the General Courts have approved and I come to sanction the following Law.

EXPLANATORY STATEMENT

On June 26, 1996, the Board of Governors of the International Development Association approved the 11th increase in resources and the creation of a provisional trust fund, by means of Resolutions 183 and 184, respectively.

Initially, the 11th increase in resources was intended to finance the appropriations committed in the period 1997-1999. However, the United States ' decision not to provide funds to the Association in the 1997 budget year has prevented it from carrying out the usual burden-sharing exercise among donors for the entire period. For this reason, the other donor countries have decided to set up an interim trust fund, administered by the International Development Association, to finance the operations of the 1997 financial year and to avoid a disruption in this way. temporary in the financing of the Association.

The volume of the provisional trust fund amounts to 3 billion special drawing rights, which will be allocated to the granting of financing under very concessional conditions, as well as to the provision of Macroeconomic and sectoral policies and technical assistance to countries that are eligible under the terms of the International Development Association's Resolution 184.

The Kingdom of Spain, which has been a member of the International Development Association since 1960, has participated since its accession to the Association in eight increases in resources and in two special contributions. The general policy of maintaining the presence of the Kingdom of Spain in this type of multilateral financial institutions, as well as its growing commitment to the least developed countries, advise the participation of the Kingdom of Spain in this initiative.

The purpose of this Law is the authorisation of the participation of the Kingdom of Spain in the provisional trust fund of the International Development Association in accordance with the above.

Article 1. Participation.

The Government is authorised to take the necessary measures to ensure that the Kingdom of Spain participates in the provisional trust fund of the International Development Association, with a contribution of 30 million special rights to the in the terms of the Resolution number 184 approved by the Board of Governors of the International Development Association dated 26 June 1996, the text of which is incorporated as an appendix to this Law.

Article 2. Payment of the contribution.

The disbursements necessary for the payment of the said contribution will be made from the budgetary allocations which have been agreed to this effect in the corresponding General Budget Laws of the State, agreement with the payment schedule set out in Resolution 184.

Final disposition first. Faculty of normative development.

The Minister of Foreign Affairs and the Minister of Economy and Finance are hereby authorized to adopt, within the framework of their respective powers, how many measures are necessary for the implementation of this Law.

Final disposition second. Entry into force.

This Law shall enter into force on the day following that of its publication in the "Official Gazette of the State".

Therefore,

I command all Spaniards, individuals and authorities, to keep and keep this Law.

Madrid, 16 December 1997.

JOHN CARLOS R.

The President of the Government,

JOSÉ MARÍA AZNAR LÓPEZ

INTERNATIONAL PROMOTION ASSOCIATION

BOARD OF GOVERNORS

Resolution number 184

ESTABLISHING A PROVISIONAL TRUST FUND

Considering:

A) That it is anticipated that the United States will not be able to contribute to the 11th replenishment in the 1997 financial year, in view of which the other member countries of the Association have agreed to make a joint effort to maintain the multilateral assistance to the poorest developing countries by providing financing under concessionary conditions, carrying out analyses and providing advice on macroeconomic and sectoral policies; and providing them with technical assistance and training during the 1997 financial year as part of the Eleventh replenishment of the Association's resources;

B) That, for this common purpose, member countries wish to make contributions to an interim trust fund (the "Interim Fund") under the implicit powers of the Association and in accordance with Section 5 (vi) Article V of the Convention establishing the Association (the "Convention"), which shall be administered by the Association, in order to supplement the resources available for the Association's appropriations during the financial year 1997;

C) That the Association is prepared to establish and administer such Interim Fund under the terms and conditions set forth herein;

D) That the member countries intend to request their legislatures, where appropriate, to authorize and approve the allocation of additional resources to the Association in their capacity as Administrator of the Interim Fund, in the amounts and conditions set out in this Resolution, and

E) It is appropriate to authorise the allocation of voting rights corresponding to the contributions made in accordance with this Resolution when the Interim Fund is settled by decision of the Executive Directors and their assets are transferred to the Association;

Therefore, the following is hereby resolved:

1. Establishment. -This is hereby established the Interim Fund, as the trust fund of the Association, constituted by the resources that from when they are contributed in accordance with the provisions of this Resolution, and by any other Provisional Fund assets and revenues

2. Authorization and administration. The administration of the Interim Fund shall be governed by the following provisions:

(a) The Association is authorised to accept contributions to the Interim Fund.

b) The Association, as the administrator (the "Administrator"), shall maintain and manage such funds, assets and income in trust, for the benefit of the member countries of the Association, to provide assistance A multilateral concession to the poorest developing countries. The administrator shall administer and use such funds, assets and revenues solely for the purposes of the applicable provisions of the Convention, the provisions and policies listed in the Resolution of the Board of Governors of the Association which attached (the "11th replenishment") and the provisions of this Resolution and in accordance with them, and shall keep them separate and apart from all other accounts and assets of the Association. The Administrator shall perform the duties conferred upon him by this Resolution with the same diligence as he or she has in his own affairs and shall have no additional responsibility for his administration of the Interim Fund. The privileges and immunities agreed to the Administrator shall apply to the assets, assets, files, income, operations and transactions of the Interim Fund.

(c) The Administrator shall be empowered to perform the duties and to conclude contracts which are necessary for the fulfilment of the purposes of the Convention and the Interim Fund.

d) As long as the appropriations of the Interim Fund ("Interim Fund Appropriations") are not disbursed, the Administrator may invest the resources held by that Fund. The proceeds from these investments will be part of the resources of the Interim Fund.

e) The Administrator shall report on the operation of the Interim Fund in the Annual Report of the Executive Directors to the Board of Governors of the Association and shall include in that report the financial statements and the opinion of the auditors in this respect.

3. Payment of contributions.-Contributions to the Interim Fund shall be made as follows:

(a) Any Member State wishing to make a contribution to the Interim Fund shall deposit it as specified in the attached table. Countries which are not eligible borrowers of the International Bank for Reconstruction and Development (the "IBRD") or the Association and which do not appear in the table may make contributions to the amounts specified in the attached Annex. Payments may be made until 15 April 1997 or at the later date that the Administrator determines. Countries may at any time make additional contributions to those set out in the table and in the Annex.

(b) The payments to be made under this Resolution shall be made, at the option of the Member State: (i) in cash, under the conditions agreed between the Member State and the Administrator, or (ii) by the deposit of similar obligations issued by the government of the Member State or the depositary designated by that Member State, which shall be non-negotiable, non-interest and payable at face value, in view of the Association in its capacity as a Administrator of the Interim Fund.

(c) The Administrator shall convert the payable members ' or similar obligations of the contributing members into cash on an approximately prorated basis between the donors at reasonable intervals over a period of approximately seven years to meet its operational commitments, stipulating that, at the request of a contributing member, the Administrator may agree to amend the total cash conversion period in the case of that Member State.

(d) Members shall call in special drawing rights (SDRs), in their own currency or, with the approval of the Administrator, in the currency of free convertibility of another Member State, the resources to be provided under of this Resolution, with the proviso that if the economy of a contributing member had experienced in the period 1993 to 1995 an inflation rate of more than 10% a year on average, as determined by the Administrator in the the date of adoption of this Resolution, its subscription and contribution shall be referred to as SDR.

e) The contributing members shall make payments to be made under this Resolution in DEG, in a currency used for the valuation of the SDR or, with the approval of the Administrator, in another free currency convertibility, and the Administrator may freely exchange the amounts received as required by their operations.

(f) Each Member State shall maintain, as regards the currency of its payments under this Resolution and the currency of that Member State as a result of that currency in the form of principal, interest or other charges, the same convertibility that exists on the date of entry into force of this Resolution.

4. Entry into force. -The Interim Fund shall enter into force and begin operations when the Administrator has received contributions totalling at least SDR 400 million and which come from at least seven countries.

5. Commitment of resources.-The resources of the Interim Fund shall be used by the Administrator to grant loans from the Interim Fund to eligible member countries of the Association, in accordance with the following principles and procedures:

(a) Each credit from the Interim Fund shall be granted to finance a specific project or development programme. The policies, practices and procedures governing the allocation of the resources of the Interim Fund, the initial selection and evaluation of projects or programmes to be financed with those resources and the approval and administration of the Fund. the appropriations of the Interim Fund, including the terms and conditions of the Fund, shall be the same as those applying to the development appropriations to be granted under the 11th replenishment, unless otherwise provided for in this Resolution thing.

(b) Each credit of the Interim Fund shall be entered in a separate agreement between the borrower and the Administrator, indicating in particular that the resources provided under that credit are derived from the Fund. provisional.

(c) Each credit of the Interim Fund shall be approved by the President of the Association, after consultation with a committee of Executive Directors representing the taxpayers of the Interim Fund and eligible borrowers of the Fund. the Association or the BIRF.

(d) The appropriations of the Interim Fund shall be denominated in SDRs and shall be reimbursable in terms of SDRs.

e) To the extent that it is administratively possible, the resources of the appropriations of the Interim Fund may be used to finance acquisitions of goods produced in any of the following countries, or services provided by these: (i) any eligible borrowing country of the Association or the IBRD, or (ii) any member country of the Association which has notified in writing to the Administrator that it intends to make the Interim Fund a the amount of the mini-sum to be added to the table attached to the attached Annex. If a Member State which has communicated in that way to the Administrator its intention to make a contribution does not deposit it by 15 April 1997 at the latest, its citizens shall not be eligible to participate in the acquisitions related to any future credit of the Interim Fund until the contribution has been paid in full. If the Administrator has received from a Member State a written declaration that: (A) an official application or a draft law has been submitted to the legislature of the Member State within a reasonable period of time before 15 April 1997, and that: Member country concerned has no reason to assume that the law will not be sanctioned, the President of the Association may, after consultation with the committee referred to in paragraph (c) above, decide to grant that member country, by a period specified, eligibility for acquisitions.

f) Charges payable by the lenders in connection with the loans from the Interim Fund shall be paid directly to the Association, in any currency acceptable to the Association, and shall be collected by the Association as compensation for his services as Administrator.

(g) Refunds of principal of credits from the Interim Fund shall be part of the resources of the Interim Fund until such Fund is cleared in accordance with Section 7 of this Resolution.

6. Amendment. -The provisions governing the Interim Fund established herein may be amended by a resolution of the Executive Directors of the Association, provided that before any proposed amendments are submitted A majority of the taxpayers of the Interim Fund representing a majority of the total contributions to that Fund shall be in agreement with that amendment.

7. Settlement.-The functions of the Association as Fund Administrator shall end when the Executive Directors of the Association take the decision to liquidate the Fund, in accordance with the provisions of Section 6 of this Resolution. When such decision is taken by the Executive Directors, the Administrator shall take all necessary measures to end his activities as a Administrator. Any surplus or deficit of resources shall be transferred to or covered by the Association. Unless otherwise provided for in that decision, the Interim Fund shall cease to exist and its assets, including the appropriations of the Interim Fund, shall be considered as part of the ordinary credit portfolio of the Association so that it is continue to receive the charges payable for such claims and the repayments of the principal of the same and the Association shall subsulobe the Administrator for the purposes of the rights and claims arising in respect of the Interim Fund and the appropriations for that Fund.

8. Voting rights. -It is authorized that, in the absence of the Interim Fund in accordance with the provisions of Section 7, voting rights are assigned to the contributing members by way of their contributions. The votes, including subscription votes allocated in accordance with Section 1 (c) of Article III of the Convention, shall be calculated on the basis of the voting rights system that exists at that time.

(Adopted June 26, 1996.)

Table: Contributions to the interim trust fund

Basic Contributions/Taxpayer Members/Percentage/Mill. DEG/Contributions

supplementary

-

Mill. DEG/Contributions

totals

-

Mill. DEG/Amount in Currency

national

-

Millions (a)

Germany/11.00/330.00/330.00/712,19

Saudi Arabia/0.55/16.46/16.46/93.62

Argentina (b)/0.10/3.0/3.00

Australia (c)

Austria/0.90/27.00/3.00/30.00/455.44

Belgium/1.55/46.50/46.50/2.063.11

Bostwana (b)/0.01/0.33/0.33/(d)

Brazil (e)/0.16/4.80/4.80/(d)

Canada/3.50/105.00/105.00/216.37

Korea/0.23/6.90/2.10/9.00/10.463.95

Denmark/1.30/39.00/39.00/326.95

Spain (e)/1.00/30.00/30.00/5,577.86

Russian Federation (b)/0.20/6.00/2.00/8.00/(d)

Finland/0.50/15.00/15.00/97.69

France/7.02/210.60/8.40/219.00/1.640.68/(f)

Greece/0.05/1.50/1.50/525.96

Hungary/0.07/2.00/2.00/(d)

Ireland (e)/0.13/3.90/0.67/4.57/4.30

Iceland/0.03/0.90/0.90/87.98

Italy/4.02/120.60/120.60/295.231.24

Japan/18.70/561.00/39.00/600,00/85,857.11

Kuwait (g)/0.14/4.20/4.20/1.91

Luxembourg (e)/0.10/3.00/3.00/133.10

Mexico/0.10/3.00/3.00/(d)

Norway/1.42/42.60/10.00/52.60/500,94

New Zealand/0.12/3.60/0.97/4.57/10.49

Netherlands/3.30/99.00/60.00/159.00/384.28

Poland/0.03/0.90/0.90/(d)

Portugal (e)/0.20/6.00/6.00/1.356.42

UK/6.15/184.50/184.50/177.69

Czech Republic/0.05/1.50/1.50/(d)

Slovak Republic/0.03/1.00/1.00/(d)

South Africa (g)/0.08/2.40/2.40/13.30

Sweden/2.62/78.60/78.60/840.24

Switzerland/1.74/52.20/52.20/92.32

Turkey/0.07/2.00/0.23/2.23/(d)

Subtotal/68.63/2.058.80/126.38/2.185.17

Contributions supplement. /4.21/126.38

Changes in cash conversions (h). /1.09/32.64/32.64

Unassigned (i)/26.07/782,19/782,19

Total/100.00/3.000.00/3.000.00

(a) Monto based on average exchange rates for period 1 June-30 November 1995.

(b) Argentina, Bostwana and the Russian Federation are provisional donors of trust fund, but they had not participated in the 10th replenishment of the IDA's resources.

(c) In Australia just assumed a new government. It is expected that this will soon announce the amount it promises to contribute to the provisional trust fund and the 11th replenishment of the IDA's resources.

(d) The contributions of countries that recorded annual inflation rates of more than 10 per 100 over the period 1993-1995 are denominated in SDRs.

(e) Brazil, Spain, Ireland, Luxembourg and Portugal increased their basic contributions to the 10th replenishment.

(f) The objective of France is to maintain a global contribution to the IDA in national currency of at least 7.3 per 100.

(g) These countries are not in a position to promise a definitive contribution to the provisional trust fund. Therefore, the levels set out in this table are only indicative.

(h) Bostwana, Brazil, Korea, Denmark, France, Hungary, Ireland, Japan, Norway, the Netherlands, Poland and Sweden agreed to make further efforts by accelerating the cash conversion of their contributions.

(i) The unassigned amount is due to the fact that the United States (which promised to contribute 20.86 per 100 to the 10th replenishment) will not participate in the provisional trust fund and the basic contributions to the 10th replenishment did not total the 100 per 100, but they had a "structural" difference of 8.72 per 100.

ANNEX

Possible contributors to the Interim Fund

Indicative input

million DEG (a)

Bahamas/0.210

Bahrain/0.180

Barbados/0.060

Brunei Darussalam/0,330

Cyprus/0,450

United Arab Emirates/4,650

Israel/6,330

Oman/0,330

Qatar/0.630

Singapore/8.640

Total/21,810

(a) On the basis of the proportion of the adjusted GNP of 1994 and in the assumption that the burden of contributions to the Fund is fully distributed.