Key Benefits:
Translation 1
(State 23 December 1988)
| The President of the Swiss Confederation |
Bern, 15 April 1988 Mr. Michel Camdessus Director General International Monetary Fund Washington D.C. /United States |
Mr. Director General,
I have the honour to acknowledge receipt of your letter of today relative to the Enhanced Structural Adjustment Facility, which reads as follows:
Since this proposal is acceptable to the Swiss Confederation, your letter and the affirmative answer I bring to it constitute an agreement between the Confederation and the trustee. The agreement will enter into force on the date on which the trustee acknowledges receipt of the note from the Confederation informing him that the constitutional procedure is closed.
I would ask you to approve, Mr Director-General, the assurance of my highest consideration.
Otto Stich
| The President of the Swiss Confederation |
Bern, 15 April 1988 Mr. Michel Camdessus Director General International Monetary Fund Washington D.C. /United States |
Mr. Director General,
At the time of signing, subject to ratification, the agreement by which the Swiss Confederation is committed to contribute to the Enhanced Structural Adjustment Facility of the International Monetary Fund, I believe it is useful to clarify the spirit and framework in Which Switzerland, as a non-member country, intends to make this contribution.
In our view, the enhanced structural adjustment facility is essentially monetary in nature, in that it seeks to preserve the creditworthiness of the poorest countries that apply sound growth policy and maintain these countries In the system of the International Labour Division. Although essentially monetary, the Enhanced Structural Adjustment Facility helps to create the conditions that facilitate and support multilateral and bilateral development assistance efforts for these countries.
As we have already done with Switzerland's accession to the General Arrangements to Borrow, we wish to specify that any action taken by the Swiss Confederation on developing countries must respect the principles on which the Swiss Confederation is based. Founded Swiss legislation on international development cooperation. According to these principles, development cooperation is intended to support the efforts of developing countries to improve the living conditions of their populations, in particular those of the most disadvantaged population groups; to contribute To put these countries in a position to ensure their development by their own forces; to strive for a better balance in the international community in the long term. If the Swiss Confederation associates itself with the financing of the Enhanced Structural Adjustment Facility, it does so in the expectation that the adjustment programmes requested of the beneficiaries of this facility are favourable to the Achievement of the above goals. This means, in particular, that these programmes allow the maintenance and development of the production apparatus in the long term and that the most disadvantaged sections of the population do not have to bear an excessive share of the burden of adjustment.
The Swiss Confederation, which is not represented on the Board of Directors of the International Monetary Fund, which is the trustee of the Enhanced Structural Adjustment Facility, should be informed and consulted before Decision amending the Facility's lending instrument or policy. It should also be in a position to monitor the development of the Facility's operations and to express its views on it. To this end, I propose that high-level representatives of the Confederation and the International Monetary Fund, as the Trustee of the Facility, meet at least twice a year, at their mutual convenience, for an exchange of views And information in the period during which the loans will be granted and disbursed. Thereafter and until the liquidation of the Facility, such meetings would be organized as necessary. The International Monetary Fund, in its capacity as the Trustee of the Facility, should ensure that the Swiss authorities are provided with the necessary documentation to keep abreast of the Facility's affairs.
The Embassy of Switzerland in the United States will serve as an intermediary for all communications related to the Facility.
I would be very grateful if you would confirm that you accept the views and proposals set out in this letter.
Please accept, Mr. Director-General, the expression of my highest consideration.
Otto Stich
| International Monetary Fund, Washington, D.C. /United States The Director General |
Washington D.C., April 15, 1988 Mr. Otto Stich President of the Swiss Confederation 3003 Berne |
Mr President,
I have the honour to acknowledge receipt of your letter of 15 April 1988, by which you inform me that the Swiss Confederation accepts, subject to ratification, to grant a loan to the Trust Account of the Enhanced Structural Adjustment Facility; I welcome this agreement and thank you for it. I can confirm to you that I agree with the sentiments expressed in your letter and that I accept the proposals put forward therein. The generous support provided by the Swiss Confederation to the Enhanced Structural Adjustment Facility bears witness to your country's long-standing commitment to international monetary cooperation and the improvement of international monetary policy. Economic situation of the most disadvantaged members of the international community.
I fully understand that, as a funder of the enhanced FAS trust account, the Swiss Confederation wishes to be kept fully informed and consulted in the circumstances described in your letter. I therefore readily accept, on behalf of the Fund, the proposals for consultation and information procedures, as set out in the aforementioned letter.
On my own behalf and on behalf of the countries of the Fund, I would like to thank you for the valuable contribution made by the Swiss Confederation to this important initiative.
I would ask you to accept, Mr President, the assurances of my highest consideration.
Michel Camdessus
