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mittee»). Donors shall pay each subsequent installment before or on the corresponding anniversary of the first installment.

b) Notwithstanding the provisions of paragraph a) of this section regarding unqualified contributions, as an exceptional case, each donor may deposit an instrument of contribution in which it agrees that payment of all installments except the first is subject to subsequent budgetary appropriations, and in which it undertakes to seek to obtain the necessary appropriations to pay the full amount of each installment by the payment dates set but in paragraph a) (such contribution hereinafter referred to as a «qualified contribution»). Payment of an installment due after any such date shall be made within 30 days after the requisite appropriations have been obtained.

c) If any donor which has made a qualified contribution has not obtained the appropriations to make payment in full of any installment by the dates indicated in paragraph a), then any donor which has paid the corresponding installment on time and in full, may, after consultation with the Donors Committee, direct the Bank in writing to restrict commitments against that installment. That restriction shall not exceed the percentage which the unpaid portion of the installment, to be paid by the donor which has made the qualified contribution, bears to the entire amount of the installment to be paid by that donor, and shall be in effect only for the time that unpaid portion remains unpaid.

d) Any member of the Bank which does not appear on schedule A, and which becomes a donor in accordance with article 6, section 1, shall make a contribution to the Fund by depositing an instrument of contribution in which it agrees to pay an amount and on dates and on conditions approved by the Donors Committee under that article.

e) The Fund shall not be increased beyond the total of the amounts set out in schedule A plus the amounts set out in instruments of contribution deposited pursuant to paragraph d).

Section 2 Payments

a) Payments due under this article shall be made in any freely convertible currency determined by the Donors Committee, or in non-negotiable non-interest-bearing promissory notes (or similar securities) denominated in such currency and payable on demand in accordance with criteria and procedures to be established by the Donors Committee to meet the operational commitments of the Fund. Payments to the Fund in a freely convertible currency, which are transferred from a trust fund of a donor, shall be deemed to be paid towards the amount due from that donor when transferred.

b) Such payments shall be made to an account or accounts established specially for that purpose by the Bank, and such notes shall be deposited in that account or with the Bank, as the Bank shall determine.

c) To determine amounts due for each donor paying in a convertible currency other than the United States dollar, the US dollar amount opposite its name in schedule A shall be converted into the currency of payment at the IMF representative exchange rate for that currency calculated by averaging those rates on a daily basis during the six-month petvod ending on November 30, 1991.

ARTICLE 3 Operations of the Fund

Section 1 General

The operations of the Fund shall be managed through three Facilities, namely, the Technical Cooperation Facility, the Human Resources Facility and the Small Enterprise Development Facility. It is the responsibility of the Donors Committee to ensure that all Fund operations shall be consistent' with the Bank Group's general programs and policies applicable to its own operation, and the Bank Group's strategy and program for the respective country resulting from the continued policy dialogue and the development priorities of the country concerned through the formal mechanisms set out in the Administration Agreement.

Section 2

The Technical Cooperation Facility

Under the Technical Cooperation Facility, grants shall be provided for technical cooperation, as appropriate to governments, government agencies, privatization agencies, stock exchanges or others, to achieve the purposes of the Fund, and, in particular, to finance:

a) Country diagnostic studies to identify investment constraints, including legislative, financial and regulatory impediments to investment;

b) The development of national country plans for comprehensive reform of the policy and legal environment for investment, in conjunction with, and complementary to, Bank country programs;

c) Advisory services to implement plans mentioned in paragraph b), which may involve advice on reforming investment laws, laws on intellectual property rights, commercial laws, tax systems, labor laws, laws to protect the environment and legal procedures, as well as advice on implementing those laws, and regulatory agencies;

d) Advice on the design and implementation of privatization programs, including advice on the valuation and techniques for privatizing particular enterprises; and

e) Assistance on developing and strengthening financial systems: 0 to remove impediments (such as interest rate distortions) and support healthy competition; if) to develop sound prudential safeguards, including accounting and disclosure standards, and institutions to administer them; Hi) to expand the capabilities of the banking sector and capital markets by more direct, transparent and technically-current information networks, and iv) to take other measures to strengthen the financial sector, such as advice on the creation and development of capital or commodity markets.

Section 3

The Human Resources Facility

Under the Human Resources Facility, grants shall be provided, as appropriate to governments, government