1 DE JUNHO DE 1988

1491

b) Original members shall be the States which are listed in schedule A hereto and become panics to this Convention on or before October 30, 1987.

Article 5

Capital

a) The authorized capital stock of the Agency shall be one billion special drawing rights (SDR 1,000,000,000). The capital stock shall be divided into 100,000 shares having a par value of SDR 10,000 each, which shall be available for subscription by members. All payment obligations of members with respect to capital stock shall be settled on the basis of the average value of the SDR in terms of United Slates dollars for the period January 1, 1981, to June 30, 1985, such value being 1082 United States dollars per SDR.

b) The capital stock shall increase on the admission of a new member to the extent that the then authorized shares arc insufficient to provide the shares to be subscribed by such member pursuant to article 6.

c) The Council, by special majority, may at any time increase the capital stock of the Agency.

Article 6

Subscription of shares

Each original member of the Agency shall subscribe at par to the number of shares of capital stock set forth opposite its name in schedule A hereto. Each other member shall subscribe to such number of shares of capital slock on such terms and conditions as may be determined by the Council, but in no event at an issue price of less than par. No member shall subscribe to less than fifty shares. The Council may prescribe rules by which members may subscribe to additional shares of the authorized capita) slock.

Article 7

Division and calls of subscribed capital

The initial subscription of each member shall be paid as follows:

0 Within ninety days from the date on which this Convention enters into force with respect to such member, ten percent of the price of each share shall be paid in cash as stipulated in section a) of article 8 and an additional ten percent in the form of non-negotiable, non-intcresl-bcaring promissory notes or similar obligations to be encashed pursuant to a decision of the Board in order to meet the Agency's obligations;

it) The remainder shall be subject to call by the Agency when required to meet its obligations.

Article 8 Payment of subscription of shares

a) Payments of subscriptions shall be made in freely usable currencies except that payments by developing member countries may be made in their own currencies up to twenty-five percent of the paid-in cash portion of their subscriptions payable under article 7, i).

b) Calls on any portion of unpaid subscriptions shall be uniform on all shares.

c) If the amount received by the Agency on a call shall be insufficient to meet the obligations which have nccessited the call, the Agency may make further successive calls on unpaid subscriptions until the aggregate amount received by it shall be sufficient to meet such obligations.

d) Liability on shares shall be limited to the unpaid portion of the issue price.

Arucle 9

Valuation of currencies

Whenever it shall be necessary for the purposes of this Convention to determine the value of one currency in terms of another, such value shall be as reasonably determined by the Agency, after consultation with the International Monetary Fund.

Arucle 10

Refunds

a) The Agency shall, as soon as practicable, return to members amounts paid on calls on subscribed capital if and to the extent thai:

0 The call shall have been made to pay a claim resulting from a guarantee or reinsurance contract and thereafter the Agency shall have recovered its payment, in whole or in part, in a freely usable currency; or

it) The call shall have been made because of a default in payment by a member and thereafter such member shall have made good such default in whole or in part; or «0 The Council, by special majority, determines that the financial position of the Agency permits all or part of such amounts to be returned out of the Agency's revenues.

6) Any refund effected under this article to a member shall be made in freely usable currency in the proportion of the payments made by that member to the total amount paid pursuant to calls made prior to such refund.

c) The equivalent of amounts refunded under this arucle to a member shall become pan of the callable capital obligations of the member under article 7, it).

CHAPTER III Operations Arucle 11

Covered risks

a) Subject to the provisions of sections b) and c) below, the Agency may guarantee eligible investments against a loss resulting from one or more of the following types of risk:

t) Currency transfer — any introduction attributable to ihc host government of restrictions on the transfer outside the host country of its currency into a freely usable currency or another currency acceptable to the holder of the guarantee, including a failure of the host government to act within a reasonable period of time on an application by such holder for such transfer;