Bretton Woods and Related Agreements Act

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Sections66

• 1Short title

  This Act may be cited as the Bretton Woods and Related Agreements Act.

• 2Agreements approved

  The Agreements for an International Monetary Fund, an International Bank for Reconstruction and Development, an International Development Association and an International Finance Corporation and the Convention establishing the Multilateral Investment Guarantee Agency, in this Act referred to as “the Agreements”, set out in Schedules I to V, respectively, are hereby approved.

• 3Acceptance authorized

  The Governor in Council may authorize the acceptance on behalf of Canada of the Agreements and may make such appointments, do and authorize such acts and things and make such orders and regulations as are necessary for that purpose and for carrying out the obligations and exercising any rights of Canada under the Agreements.

• 4Establishment of par value

  Without restricting the generality of section 3 and notwithstanding any other statute or law, the Governor in Council may take such measures as he deems necessary to establish, for the purposes and in accordance with the terms of the Agreement for an International Monetary Fund, the par value of the Canadian dollar.

• 5Non-enforceability of certain exchange contracts

  The first sentence of paragraph 2(b) of Article VIII of the Agreement set out in Schedule I has the force of law in Canada.

• 6Bank of Canada designated as depository

  The Bank of Canada has capacity and power to act as the depository in Canada for the holdings of Canadian currency and other assets of the International Monetary Fund, the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation and the Multilateral Investment Guarantee Agency and shall act as such depository.

• 6.1Payment of subscription out of C.R.F.

  The Minister of Finance may pay out of the Consolidated Revenue Fund to the Multilateral Investment Guarantee Agency, in the manner and at the times provided for in the Convention set out in Schedule V, a sum or sums of money not exceeding in the whole six million, four hundred and sixteen thousand, two hundred and sixty American dollars in respect of the initial subscription required to be made by Canada under the Convention.

• 7Payment to International Monetary Fund

  The Minister of Finance may provide for payment out of the Consolidated Revenue Fund to the International Monetary Fund in the manner and at the times provided for by the Agreement set out in Schedule I of a sum or sums of money, not exceeding in the whole an amount equivalent to the subscriptions required from or permitted to be made by Canada, namely, sixteen billion, five hundred thirty-five million, nine hundred thousand Special Drawing Rights.

• 8Financial assistance
• 8(1)

  The Minister of Finance may provide financial assistance to the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation and the Multilateral Investment Guarantee Agency, directly or through any trust or body established by those institutions, by way of

• 8(1)(a)

  direct payments, grants and loans;

• 8(1)(b)

  the issuance of non-interest bearing, non-negotiable demand notes;

• 8(1)(c)

  the purchase of shares on behalf of Her Majesty in right of Canada;

• 8(1)(d)

  the issuance of guarantees; and

• 8(1)(e)

  any other manner that the Minister considers appropriate.

• 8(1.1)Payment out of C.R.F.

  The Minister of Finance may make payments out of the Consolidated Revenue Fund for the purpose mentioned in subsection (1).

• 8(2)Limit

  The amount of financial assistance provided pursuant to subsection (1) in any period shall not exceed the amount specified for the purpose in respect of that period in an appropriation by Parliament.

• 8.1Loans — trust or body
• 8.1(1)

  The Minister of Finance may lend to the International Monetary Fund, at any rate of interest and on any other terms and conditions that the Governor in Council may approve, any sum or sums of money that may be required for funding any trust or body established by the Fund to assist in fulfilling the purposes of the Fund, at no time exceeding one billion Special Drawing Rights, or any other amount that may be fixed by the Governor in Council.

• 8.1(1.1)Loans — purpose of Fund

  The Minister of Finance may lend to the International Monetary Fund, at any rate of interest and on any other terms and conditions that the Governor in Council may approve, any sum or sums of money that may be required to assist the Fund in fulfilling the purpose of safeguarding global economic and financial stability, at no time exceeding 13 billion Special Drawing Rights, or any other amount that may be fixed by the Governor in Council.

• 8.1(2)Grants

  The Minister of Finance may grant to the International Monetary Fund, on such terms and conditions as the Governor in Council may approve, such sum or sums of money as may be required for funding any trust or body established by the Fund to assist in fulfilling the purposes of the Fund, not exceeding in the whole two hundred and fifty million dollars, or such greater amount as may be fixed by the Governor in Council.

• 8.1(3)Payment out of C.R.F.

  The Minister of Finance may make payments out of the Consolidated Revenue Fund for the purposes mentioned in subsections (1), (1.1) and (2).

• 8.1(4)Reassignment of resources

  The Minister of Finance may direct the reassignment of funds subscribed or contributed by Canada to the International Monetary Fund, or owed to Canada by the Fund, for a similar purpose within the Fund, subject to any terms and conditions that the Minister considers appropriate.

• 8.11Special Drawing Rights — financial transactions

  For greater certainty, the Minister of Finance may carry out financial transactions in respect of Special Drawing Rights under section 17.2 of the Currency Act, in accordance with the policy established under subsection 17.1(1) of that Act.

• 8.2Interim financing agreements
• 8.2(1)

  Where the Bank for International Settlements has agreed to provide a credit facility to a country seeking financial assistance from the International Monetary Fund or the International Bank for Reconstruction and Development, and the Minister of Finance is of the opinion that the credit facility is necessary to facilitate the provision of such financial assistance to the country, the Minister may enter into an agreement or arrangement with the Bank for International Settlements to guarantee the repayment of the principal and any interest owing under the credit facility.

• 8.2(2)Terms of agreement

  An agreement or arrangement entered into under this section

• 8.2(2)(a)

  must not be for a term longer than one year; and

• 8.2(2)(b)

  must not be for the repayment of an amount exceeding five hundred million American dollars, or ten per cent of the credit facility, whichever is greater.

• 8.2(3)Bank of Canada may act as agent

  The Bank of Canada, on the request of the Minister of Finance, may act as agent of the Minister for the purposes of subsection (1).

• 8.2(4)Payment out of C.R.F.

  Any sum or sums required for the purposes of this section shall be paid out of the Consolidated Revenue Fund.

• 8.3Declaration authorizing financial assistance
• 8.3(1)

  The Governor in Council may, by order, authorize the Minister of Finance to provide a foreign state with financial assistance under this section if the Governor in Council is of the opinion that it is in the national interest to do so.

• 8.3(2)Contents of order

  The order shall specify the foreign state to which the financial assistance is to be provided and the period of time during which it may be given.

• 8.3(3)Forms of financial assistance

  The Minister of Finance may provide financial assistance to a foreign state mentioned in an order by

• 8.3(3)(a)

  entering into any arrangement with the foreign state that has the effect of extending credit to the foreign state;

• 8.3(3)(b)

  guaranteeing the payment by the foreign state of all amounts payable under loans and other financial arrangements entered into by the foreign state with any person; or

• 8.3(3)(c)

  indemnifying any person from any losses, damages or expenses suffered or incurred as a result or arising out of loans or other financial arrangements entered into by the foreign state with the person.

• 8.3(4)Restriction

  The Minister of Finance may provide financial assistance to a foreign state only if the Minister of Finance is satisfied that

• 8.3(4)(a)

  the foreign state has an International Monetary Fund arrangement; and

• 8.3(4)(b)

  other countries will be participating with Canada in the provision of financial assistance in an amount that the Minister of Finance determines is satisfactory.

• 8.3(5)Limitation

  The maximum financial assistance that may be provided under this section shall at no time exceed

• 8.3(5)(a)

  fifteen billion dollars in respect of any particular foreign state; and

• 8.3(5)(b)

  twenty-two billion dollars in respect of all foreign states.

• 8.3(6)Calculation of maximum

  For the purpose of subsection (5), the maximum financial assistance is the total of

• 8.3(6)(a)

  the outstanding principal amount of obligations owing to Her Majesty in respect of arrangements that have the effect of extending credit,

• 8.3(6)(b)

  the obligation of Her Majesty to advance funds in respect of any outstanding arrangement that has the effect of extending credit or to pay money to any person in respect of any outstanding arrangement, and

• 8.3(6)(c)

  the contingent liability of Her Majesty in respect of the principal amount owing under all outstanding arrangements giving rise to contingent liabilities.

• 8.3(7)Export Development Canada

  Export Development Canada may, on the request of the Minister of Finance, act as agent of the Minister of Finance for the purpose of providing financial assistance to any foreign state under this section.

• 8.3(8)Payment out of C.R.F.

  The Minister of Finance may pay out of the Consolidated Revenue Fund any amount that is required

• 8.3(8)(a)

  for the purpose of providing financial assistance under this section; or

• 8.3(8)(b)

  to compensate Export Development Canada for its services as agent of the Minister of Finance under subsection (7) in accordance with any agreement between Export Development Canada and the Minister of Finance.

• 8.3(9)Definitions

  The definitions in this subsection apply in this section.

• 8.3(9)[p53]

  foreign state means a country other than Canada, and includes

• 8.3(9)[p53](a)

  any political subdivision of a foreign state;

• 8.3(9)[p53](b)

  the government, and any department, of a foreign state or of a political subdivision of a foreign state; and

• 8.3(9)[p53](c)

  any agency of a foreign state or of a political subdivision of a foreign state. (État étranger)

• 8.3(9)[p57]

  International Monetary Fund arrangement means an arrangement between the International Monetary Fund and a foreign state under which the International Monetary Fund agrees to provide financial assistance to the foreign state. (Accord relatif au Fonds monétaire international)

• 9Repealed

  [Repealed, 1999, c. 31, s. 27]

• 10Loans chargeable to C.R.F.

  The principal raised by way of loan under this Act, and the interest thereon, shall be a charge on and payable out of the Consolidated Revenue Fund.

• 11Adjustment of valuation

  In each year on a day determined by the Minister of Finance, the value of Canada’s assets and liabilities with respect to the International Monetary Fund, as shown in the Public Accounts of Canada, shall be adjusted to reflect the then current rate of exchange for Canadian dollars, and the resultant valuation adjustment shall,

• 11(a)

  if it is a positive amount, be credited to the Consolidated Revenue Fund; and

• 11(b)

  if it is a negative amount, be charged to the Consolidated Revenue Fund.

• 12Definition of valuation adjustment

  In section 11, valuation adjustment at a particular day means the amount obtained when the net value of Canada’s assets and liabilities with respect to the International Monetary Fund, as then recorded in the Public Accounts of Canada, is subtracted from the net value of those assets and liabilities at the then current rate of exchange for Canadian dollars.

• 13Annual report

  The Minister of Finance shall cause to be laid before each House of Parliament within one year after the end of each fiscal year or, if either House is not sitting, on any of the first five days on which that House of Parliament is sitting, a report containing a general summary of operations under this Act and details of all those operations that directly affect Canada, including the resources and lending of the World Bank Group, the funds subscribed or contributed by Canada, borrowings in Canada and procurement of Canadian goods and services.

• 14Tabling of communiqués

  The Minister of Finance shall cause to be laid before each House of Parliament the communiqués issued by the International Monetary and Financial Committee of the International Monetary Fund and the Development Committee of the International Bank for Reconstruction and Development and the International Monetary Fund.