PacLII Home | Databases | WorldLII | Search | Feedback

Tonga Consolidated Legislation
You are here:  PacLII >> Databases >> Tonga Consolidated Legislation >> Bretton Woods Agreements Act

Database Search | Name Search | Noteup | Download | Help

Bretton Woods Agreements Act

LAWS OF TONGA


[1988 Revised Edition]


CHAPTER 104


BRETTON WOODS AGREEMENTS ACT


Arrangement of Sections


Section
1 Short title.


PART I - PRELIMINARY


2 Interpretation.


PART II - MEMBERSHIP IN THE ORGANIZATIONS


3 Membership.
4 Organization's Immunities.
5 Participation in Special Drawing Rights.
6 Obligations of Membership and Participation.


PART III - FINANCIAL ASSISTANCE


7 Operations and Transactions.
8 Corporate Bodies.
9 Implementation of Obligations.
10 Repeal.


SCHEDULE I
INTERNATIONAL MONETARY FUND
GENERAL OBLIGATIONS OF MEMBERS
STATUS, IMMUNITIES AND PRIVILEGES
ADMINISTRATION OF THE GENERAL DEPARTMENT AND THE SPECIAL DRAWING RIGHTS DEPARTMENT


SCHEDULE II
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
STATUS, IMMUNITIES AND PRIVILEGES


SCHEDULE III
INTERNATIONAL FINANCE CORPORATION
STATUS, IMMUNITIES AND PRIVILEGES


SCHEDULE IV
INTERNATIONAL DEVELOPMENT ASSOCIATION
STATUS, IMMUNITIES AND PRIVILEGES


SCHEDULE V
INTERNATIONAL MONETARY FUND
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
INTERNATIONAL DEVELOPMENT ASSOCIATION


SCHEDULE VI
INTERNATIONAL MONETARY FUND
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
INTERNATIONAL FINANCE CORPORATION
INTERNATIONAL DEVELOPMENT ASSOCIATION


------------------------------------------


BRETTON WOODS AGREEMENTS ACT


Acts 10 of 1985 and 46 of 1988


AN ACT TO CONFIRM MEMBERSHIP OF THE KINGDOM IN THE INTERNATIONAL MONETARY FUND, THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT, THE INTERNATIONAL FINANCE CORPORATION AND THE INTERNATIONAL DEVELOPMENT ASSOCIATION, AND TO PROVIDE FOR THE RAISING OF FINANCIAL ASSISTANCE THROUGH THESE ORGANIZATIONS AND FOR MATTERS CONNECTED THEREWITH


Commencement [1st August 1985]


1 Short title.


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


PART I - PRELIMINARY


2 Interpretation.


In this Act, unless the context otherwise requires –


"Association" means the International Development Association;


"Association Agreement" means the Articles of Agreement for the establishment and operation of the Association;


"Bank" means the International Bank for Reconstruction and Development;


"Bank Agreement" means the Articles of Agreement for the establishment and operation of the Bank, as amended from time to time; (Amended by Act 46 of 1988.)


"Corporation" means the International Finance Corporation;


"Corporation Agreement" means the Article of Agreement for the establishment and operation of the Corporation, as amended from time to time; (Amended by Act 46 of 1988.)


"Fund" means the International Monetary Fund;


"Fund Agreement" means the Articles of Agreement for establishment and operation of the Fund, as amended from time to time; (Amended by Act 46 of 1988.)


"Membership Resolution" means the Resolution adopted by the Board of Governors of the Fund or of the Bank or of the Corporation or of the Association, as the case may be, specifying the terms and conditions upon which Tonga shall be admitted to membership in the organizations in question;


"Minister" means the Minister of Finance;


"Organizations" means the Fund, the Bank, the Corporation and the Association.


PART II - MEMBERSHIP IN THE ORGANIZATIONS


3 Membership.


The execution by the Minister on behalf of the Kingdom pursuant to the Membership Resolutions of instruments stating that the Kingdom has accepted in accordance with its law the Fund Agreement, the Bank Agreement, the Corporation Agreement, and the Association Agreement, and all the terms and conditions of the respective Membership Resolutions, as well as the signature of the original Articles of Agreement of each of the Organizations by the Minister or the person he appoints to perform that function, is hereby authorized, confirmed, and ratified.


4 Organization's Immunities.


The provisions of:

as set out in Schedules I, II, III, and IV, respectively to this Act shall as amended from time to time pursuant to the terms of those agreements have the force of law in Tonga, and shall confer on the Organizations in relation to the Kingdom the status, immunities, exemptions and privileges specified in those provisions. (Amended by Act 46 of 1988.)


5 Participation in Special Drawing Rights.


So that Tonga may become a participant in the Special Drawing Rights Department of the Fund, the Minister may execute and deposit with the Fund on behalf of the Kingdom, in connection with Tonga's acceptance of membership in the Fund, an instrument stating that Tonga undertakes all the obligations of a participant in the Special Drawing Rights Department of the Fund in accordance with the law of Tonga, and representing that Tonga has taken all steps necessary to enable it to carry out all of the said obligations.


6 Obligations of Membership and Participation.


(1) There shall be paid out of the General Revenues of the Kingdom such sums as are payable or may, from time to time, become payable by the Kingdom under the Fund Agreement, the Bank Agreement, the Corporation Agreement or the Association Agreement, or under any of the Membership Resolutions.

(2) The Minister may take such steps and make such arrangements as he may consider reasonably necessary for fulfilling any obligations of Tonga as a member of the Organizations and as a participant in the Special Drawing Rights Department of the Fund. For such purposes the Minister may make such order or orders as he considers desirable, and any such order shall come into effect upon publication in the Gazette.

(3) The Minister may, if he thinks fit, create and issue to the Fund, the Bank, or the Association, non-interest bearing and non-negotiable notes or similar obligations as are provided for by Section 4 of Article III of the Fund Agreement, by Section 12 of Article V of the Bank Agreement, and by subsection 2(e) of Article II of the Association Agreement as set out in Schedule V, and the sums payable under such notes or obligations so created or issued shall be a charge on the General Revenues of the Kingdom.

(4) The Ministry of Finance shall serve as the fiscal agency of Tonga as required under Article V, Section 1 of the Fund Agreement and Article III, Section 2 of the Articles of Agreement of the Bank as set out in Schedule VI, and is accordingly authorized to carry out, on behalf of Tonga, all operations and transactions authorized under the various provisions of the Articles of Agreement of the Fund and the Bank. The Ministry of Finance is designated as the channel of communication referred to in Article IV Section 10 of the Corporation Agreement and Article VI Section 10 of the Association Agreement as set out in Schedule VI. The Minister shall designate the depository in Tonga for all the Fund's holdings of its currency.


PART III - FINANCIAL ASSISTANCE


7 Operations and Transactions.


(1) Subject to the provisions of this Act, but notwithstanding anything contained in any other Act, the Government may, in such manner and on such terms and subject to such conditions as may be consistent with the Agreements of the Organizations and agreed between the Government and the Organization in question, conduct exchange transactions with the Fund, conduct operations and transactions involving special drawing rights with authorized holders, or borrow from the Bank, or the Association, such sums as may be required by the Government.

(2) Any sums borrowed pursuant to subsection (1) shall be applied and are hereby appropriated to the purposes specified in any agreement concluded with the lender in respect of the sums so borrowed: provided that where any part of such sums cannot be applied to the purposes so specified such part may be applied to such other purposes as may be approved by the Minister, with the consent of His Majesty in Council, and the lender.

(3) Any borrowing agreement, request for purchase, bond, promissory note, or other instrument, or other instruction for an operation or transaction under this section or incidental thereto, or any letter of intent relating thereto, shall be made in the name of the Kingdom and may be signed on behalf of the Government by the Minister or by any person authorized by the Minister with the approval of His Majesty in Council.

(4) As soon as possible after the conclusion thereof, any loan or guarantee agreement with the Bank, the Association, or the Corporation, or any request for purchase or letter of intent to the Fund, authorized under this section, shall be laid by the Minister before the Legislative Assembly. All borrowings from the Bank, the Association, or the Corporation shall be subject to the provisions of section 25 of the General Loan and Stock Act, as amended. (Cap. 109)

(5) Nothing in the provisions of this section shall affect or derogate from any other power of the Government to borrow money or to conduct financial operations and transactions.

8 Corporate Bodies.


(1) Subject to the provisions of this Act, the Government may permit a corporate body to borrow directly from the Bank, the Corporation, or the Association on similar terms and conditions, and with similar procedures, all else being equal, as apply to borrowings of the Government under section 7 above, provided that the Minister's approval shall be required for any use of borrowed funds other than those specified in the borrowing agreement, and provided further that the corporate body may charge any of its property (movable or immovable), undertaking or revenue to secure any sum owing under a borrowing agreement so authorized.

(2) The Government may use its borrowing authority under section 7, to guarantee in writing the discharge of obligations, or to undertake other similar obligations to any of the Organizations, with regard to any borrowing by any corporate body authorized under subsection (1) above, or any demand deposit of the Fund.

(3) In guaranteeing any borrowing by any corporate body under subsection (2) above, the Government may specify the terms and conditions of such guarantee, including a condition whereby, if it appears to the Privy Council that there is reasonable cause to believe that a default of any obligation previously authorized under subsection (1) above is likely to arise or that the Government is or may become liable to fulfill a guarantee or other undertaking previously authorized under subsection (2) above, the Privy Council may by order give, or authorize any person to give, such directions to the corporate body as are considered necessary or desirable to ensure that the obligations to the Organization in question are met at minimum cost to the Government. Any direction hereunder shall be legally binding on the corporate body, notwithstanding any provision contained in any Act by or under which it is established. Nothing in the provisions of this subsection shall derogate from any other power of the Privy Council or any Minister or public officer with respect to the corporate body.

(4) Any expenditure of the Government consequent upon the exercise of its powers under subsection (2) or subsection (3) above shall become immediately a debt of the corporate body which it concerns, with interest and other charges payable thereon to the Government at the same rates as they would have been payable if the obligation of the corporate body under subsection (1) above had not been discharged. The Minister shall determine the time and manner of the corporate body's payment of this debt to the General Revenues of the Kingdom. A statement of each and any liability outstanding under this subsection shall be reported to the Legislative Assembly as soon as possible after the end of each financial year.


9 Implementation of Obligations.


(1) Any written undertaking to the Fund, the Bank, the Corporation or the Association under section 5, section 7(3) or section 8(1) or (2) of this Act shall be valid and enforceable and have full force and effect in the Kingdom in accordance with its terms.

(2) Any payment pursuant to such an undertaking shall be free from any tax or lien, or restriction, including taxes deducted at source in effect in the Kingdom.

(3) Any payment of interest or principal on a financial obligation of any of the organisations to any person in Tonga shall be taxable to the recipient on the same basis as payments from any other source.

10 Repeal.


The Bretton Woods Agreements Act, the International Finance Corporation Act and the International Development Association Act are all repealed.


SCHEDULE I

(Section 4(a))


INTERNATIONAL MONETARY FUND


ARTICLE VIII


GENERAL OBLIGATIONS OF MEMBERS


SECTION 2—Avoidance of Restrictions on Current Payments


(b) Exchange contracts which involve the currency of any member and which are contrary to the exchange control regulations of that member maintained or imposed consistently with this Agreement shall be unenforceable in the territories of any member.


ARTICLE IX


STATUS, IMMUNITIES AND PRIVILEGES


SECTION 2—Status of the Fund


The Fund shall possess full juridical personality, and in particular, the capacity:


(i) to contract;

(ii) to acquire and dispose of immovable and movable property; and

(iii) to institute legal proceedings.


SECTION 3—Immunity from judicial process


The Fund, its property and its assets, wherever located and by whomsoever held, shall enjoy immunity from every form of judicial process except to the extent that it expressly waives its immunity for the purpose of any proceedings or by the terms of any contract.


SECTION 4—Immunity from .other action


Property and assets of the Fund, wherever located and by whosoever held, shall be immune from search, requisition, confiscation, expropriation, or any other form of seizure by executive or legislative action.


SECTION 5—Immunity of archives


The archives of the Fund shall be inviolable.


SECTION 6—Freedom of assets from restrictions


To the extent necessary to carry out the activities provided for in this Agreement, all property and assets of the Fund shall be free from restrictions, regulations, control and moratoria of any nature.


SECTION 7—Privilege for communications


The official communications of the Fund shall be accorded by members the same treatment as the official communications of other members.


SECTION 8—Immunities and privileges of Officers and Employees


All Governors, Executive Directors, Alternates, members of committees, representatives appointed under Article XII, section 3(1), advisors of any of the foregoing persons, officers, and employees of the Fund:


(i) shall be immune from legal process with respect to acts performed by them in their official capacity except when the Fund waives this immunity;

(ii) not being local nationals, shall be granted the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials, and employees of comparable rank of other members; and

(iii) shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, officials, and employees of comparable rank of other members.


SECTION 9—Immunities from Taxation


(a) The Fund, its assets, property, income and its operations and transactions authorised by this Agreement shall be immune from all taxation and from all customs duties. The Fund shall also be immune from liability for the collection or payment of any tax or duty.


(b) No tax shall be levied on or in respect of salaries and emoluments paid by the Fund to Executive Directors, Alternates, officers, or employees of the Fund who are not local citizens, local subjects, or other local nationals.

(c) No taxation of any kind shall be levied on any obligation or security issued by the Fund; including any dividend or interest thereon, by whomsoever held:

ARTICLE XXI


ADMINISTRATION OF THE GENERAL DEPARTMENT AND THE SPECIAL DRAWING RIGHTS DEPARTMENT


(b) In addition to the privileges and immunities that are accorded under Article IX of this Agreement, no tax of any kind shall be levied on special drawing rights or on operations or transactions in special drawing rights.


SCHEDULE II

(Section 4(b))


INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT


ARTICLE VII


STATUS, IMMUNITIES AND PRIVILEGES


SECTION 2—Status of the Bank


The Bank shall possess full juridical personality, and, in particular, the capacity:


(i) to contract;


(ii) to acquire and dispose of immovable and movable property;


(iii) to institute legal proceedings.


SECTION 3—Position of Bank with regard to judicial process


Actions may be brought against "the Bank only in a court of competent jurisdiction in the territories of a member in which the Bank has an office, has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities. No actions shall, however, be brought by members or persons acting for or deriving claims from members. The property and assets of the Bank shall, wheresoever located and by whomsoever held, be immune from all forms of seizure, attachment or execution before the delivery of final judgment against the Bank.


SECTION 4—Immunity of assets from seizure


Property and assets of the Bank, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of seizure by executive or legislative action.


SECTION 5—Immunity of archives


The archives of the Bank shall be inviolable.


SECTION 6—Freedom of assets from restrictions


To the extent necessary to carry out the operations provided for in this Agreement and subject to the provisions of this Agreement, all property and assets of the Bank shall be free from restrictions, regulations, controls and moratoria of any nature.


SECTION 7—Privilege for communications


The official communications of the Bank shall be accorded by each member the same treatment that it accords to the official communications of other members.


SECTION 8—Immunities and privileges of Officers and Employees


All Governors, Executive Directors, Alternates, Officers, and Employees of the Bank:


(i) shall be immune from legal process with respect to acts performed by them in their official capacity except when the Bank waives this immunity;

(ii) not being local nationals, shall be accorded the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials, and employees' of comparable rank of other members;

(iii) shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, officials, and employees of comparable rank of other members.


SECTION 9—Immunities from Taxation

SCHEDULE III

(Section 4(c))


INTERNATIONAL FINANCE CORPORATION


ARTICLE VI


STATUS, IMMUNITIES AND PRIVILEGES


SECTION 2—Status of the Corporation


The Corporation shall possess full juridical personality, and, in particular, the capacity:

(iii) to institute legal proceedings.


SECTION 3—Position of the Corporation with regard to Judicial Process


Actions may be brought against the Corporation only in a court of competent jurisdiction in the territories of a member in which the Corporation has an office,, has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities. No action shall, however, be brought by members or persons acting for or deriving claims from members. The property and assets of the Corporation shall, wheresoever located and by whomsoever held, be immune from all forms of seizure, attachment or execution before the delivery of final judgment against the Corporation.


SECTION 4—Immunity of assets from seizure


Property and assets of the Corporation, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of seizure by executive or legislative action.


SECTION 5—Immunity of archives


The archives of the Corporation shall be inviolable.


SECTION 6—Freedom of assets from restrictions


To the extent necessary to carry out operations provided for in this Agreement and subject to the provisions of Article III, Section 5, and the other provisions of this Agreement, all property and assets of the Corporation shall be free from restrictions, regulations, controls and moratoria of any nature.


SECTION 7—Privilege for communications


The official communications of the Corporation shall be accorded by each member the same treatment that it accords to the official communications of other members.


SECTION 8—Immunities and privileges of Officers and Employees


All Governors, Executive Directors, Alternates, Officers, and Employees of the Corporation:


(i) shall be immune from legal process with respect to acts performed by them in their official capacity;

(ii) not being local nationals, shall be accorded the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials and employees of comparable rank of other members; and

(iii) shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, officials, and employees of comparable rank of other members.


SECTION 9—Immunities from Taxation

SCHEDULE IV

Section 4(d))


INTERNATIONAL DEVELOPMENT ASSOCIATION


ARTICLE VIII


STATUS, IMMUNITIES AND PRIVILEGES


SECTION 2—Status of the Association


The Association shall possess full juridical personality and, in particular the capacity:

(iii) to institute legal proceedings.


SECTION 3—Position of Association with regard to Judicial process


Actions may be brought against the Association only in a court of competent jurisdiction in the territories of a member in which the Association has an office, has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities. No actions shall, however, be brought by members or persons acting for or deriving claims from members. The property and assets of the Association shall, wheresoever located and by whomsoever held be immune from all forms of seizure, attachment or execution before the delivery of final judgement against the Association.


SECTION 4—Immunity of assets from seizure


Property and assets of the Association, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of seizure by executive or legislative action.


SECTION 5—Immunity of archives


The archives of the Association shall be inviolable.


SECTION 6—Freedom of assets from restrictions


To the extent necessary to carry out the operations provided for in this Agreement and subject to the provisions of this agreement, all property and assets of the Association shall be free from restrictions, regulations, controls and moratoria of any nature.


SECTION 7—Privilege for communications


The official communications of the Corporation shall be accorded by each member the same treatment that it accords to the official communications of other members.


SECTION 8—Immunities and privileges of Officers and Employees


All Governors, Executive Directors, Alternates, Officers, and Employees of the Association:


(i) shall be immune from legal process with respect to acts performed by them in their official capacity except when the Association waives this immunity;

(ii) not being local nationals, shall be accorded the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange restrictions as are accorded by members to the representatives, officials and employees of comparable rank of other members;

(iii) shall be granted the same treatment in respect of travelling facilities as is accorded by members to representatives, Officials, and employees of comparable rank of other members.


SECTION 9—Immunities from Taxation


(a) The Association, its assets, property, income and its operations and transactions authorised by this Agreement, shall be immune from all taxation and from all customs duties. The Corporation shall also be immune from liability for the collection or payment of any tax or duty.


(b) No tax shall be levied on or in respect of salaries and emoluments paid by the Association to Executive Directors, Alternates, officials or employees of the Association who are not local citizens, local subjects, or other local nationals.


(c) No taxation of any kind shall be levied on any obligation or security issued by the Association (including any dividend or interest thereon) by whomsoever held:


(i) which discriminates against such obligation or security solely because it is issued by the Association; or


(ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Association.


(d) No taxation of any kind shall be levied on any obligation or security guaranteed by the Association (including any dividend or interest thereon) by whomsoever held:


(i) which discriminates against such obligations or security solely because it is guaranteed by the Association; or


(ii) if the sole jurisdictional basis for such taxation is the location of any office or place of business maintained by the Association.


SCHEDULE V

(Section 6(3))


INTERNATIONAL MONETARY FUND


ARTICLE III


SECTION 4—Substitution of Securities for Currency


The Fund shall accept from any member, in place of any part of the member's currency in the General Resources Account which in the judgment of the Fund is not needed for its operations and transactions, notes or similar obligations issued by the member or the depository designated by the member under Article XIII, Section 2, which shall be non-negotiable, non-interest bearing and payable at their face value on demand by crediting the account of the Fund in the designated depository. This Section shall apply not only to currency subscribed by members but also to any currency otherwise due to, or acquired by, the Fund and to be placed in the General Resources Account.


INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT


ARTICLE V


SECTION 12—Form of holdings of currency


The Bank shall accept from any member, in place of any part of the member's currency, paid in to the Bank under Article II, Section 7(I), or to meet amortization payments on loans made with such currency, and not needed by the Bank in its operations, notes or similar obligations issued by the Government of the member or the depository designated by such member, which shall be nonnegotiable, non-interest-bearing and payable at their par value on demand by credit to the amount of the Bank in the designated depository.


INTERNATIONAL DEVELOPMENT ASSOCIATION


ARTICLE II


SECTION 2(e)—Initial Subscriptions


The Association shall accept from any member, in place of any part of the member's currency paid in or payable by the member under the preceding subsection (d) or under Section 2 of Article IV and not needed by the Association in its operations, notes or similar obligations issued by the Government of the member or the depository designated by such member, which shall be non-negotiable, non-interest bearing and payable at their par value on demand to the account of the Association in the designated depository.


SCHEDULE VI

(Section 6(4))


INTERNATIONAL MONETARY FUND


ARTICLE V


SECTION 1—Agencies Dealing with the Fund


Each member shall deal with the Fund only through its Treasury, central bank, stabilization fund, or other similar fiscal agency, and the Fund shall deal only with or through the same agencies.


INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT


ARTICLE III


SECTION 2—Dealings between members and the Bank


Each member shall deal with the Bank only through its Treasury, central bank, stabilization fund or other similar fiscal agency, and the Bank shall deal with members only by or through the same agencies.


INTERNATIONAL FINANCE CORPORATION


ARTICLE IV


SECTION 10—Channel of Communication


Each member shall designate an appropriate authority with which the Corporation may communicate in connection with any matter arising under this Agreement.


INTERNATIONAL DEVELOPMENT ASSOCIATION


ARTICLE VI


SECTION 10—Channel of Communication


Each member shall designate-an appropriate authority with which the Association may communicate in connection with any matter arising under this Agreement. In the absence of any different designation, the channel of communication designated for the Bank shall be the channel for the Association.


-----------------------------------------------

PacLII: Copyright Policy | Disclaimers | Privacy Policy | Feedback
URL: http://www.paclii.org/to/legis/consol_act/bwaa276