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Inability to Pay under International Law and under the Fund Agreement
Published online by Cambridge University Press: 21 May 2009
Extract
The Third Amendment to the Articles of Agreement of the International Monetary Fund (‘the Fund’) became effective on 11 November 1992. The amendment concerns a modification of Article XXVI of the Articles of Agreement of the Fund (‘the Articles of Agreement’ or ‘the Fund Agreement’) so as to confer the Fund with the power to suspend the voting rights of a member failing to fulfil ‘any of its obligations’ under the Fund Agreement. It is a known fact that this move was motivated by the problem of persistent overdue financial obligations to the Fund. Indeed, the first application of this new power involved the suspension of Sudan's voting rights on account of this country's failure to meet its financial obligations to the Fund (August 1993). Sudan had been in arrears as regards its financial obligations to the Fund since July 1984.
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References
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