INTERNATIONAL DEVELOPMENT ASSOCIATION BOARD OF GOVERNORS Resolution No. 77 Additions to Resources: Third Replenishment A. Introduction 1. WHEREAS (a) The Executive Directors of the International Development Association have considered its prospective financial requirements and have concluded that additional resources should be made available to the Association for new commitments for the period up to June 30, 1974 in the amounts and on the basis described in the Report of the Executive Directors dated July 21, 1970 submitted to the Board of Governors; (b) The governments of the Part I members of the Association have expressed their intention, subject to any necessary legislative authorization, to make available additional resources to the Association equivalent to U.S. $2,398,080,000 in the respective amounts and on the basis set forth in the said Report and below; (c) The governments of certain Part II members of the Association have expressed their intention, subject to any necessary legislative authorization, to make available additional resources to the Association equivalent to U.S. $10,540,000 in the respective amounts and on the basis set forth in the said Report and below; and the Swiss Confederation has agreed to lend to the Association the equivalent of approximately U.S. $30,000,000 on terms whereby the proceeds thereof would be made available in three equal instalments in 1971, 1972 and 1973 and be repayable over a 50-year period without interest. 2. NOW THEREFORE the Board of Governors resolves that the said Report of the Executive Directors is accepted by the Board of Governors and its conclusions adopted. B. Additional Resources Provided by Part I Members 3. WHEREAS (a) A portion of the resources to be made available by Part I members will be made available in the form of contributions not carrying voting rights; (b) The respective portions of the total amount authorized to be made available by each such member by way of subscriptions have been calculated in such a way as to result in the adjustment of each member's relative share in the aggregate voting power of the Part I members (not counting votes given in respect of membership) so as to correspond to the relative share in the total amount of resources which has been and is being made available by such member to the Association on the basis set forth in the said Report of the Executive Directors; IDA Resolution No. 77 Page 2 of 7 (c) Each Part I member of the Association has agreed to the foregoing arrangements to the extent that such arrangements require its agreement under Article III, Section l(c) of the Articles of Agreement of the Association; 4. NOW THEREFORE the Board of Governors resolves that: (a) The Association is authorized to accept additional resources from the Part I members of the Association in the amounts set forth for each such member, respectively, in Table I, column 7 1, such amounts being divided into amounts for subscriptions carrying voting rights and contributions not carrying voting rights as specified in Table I in columns 9 and 11; (b) Each member shall, in respect of such subscriptions, have the voting rights specified for it in Table I, columns 14 and 15, calculated on the basis of 1250 votes plus one additional vote per $80 of such subscription; (c) Payment of such subscriptions and of such contributions shall be made in freely convertible currencies in three equal instalments on or before November 8, 1971, November 8, 1972 and November 8, 1973, provided, however, that if the replenishment authorized by this Resolution shall not have become effective in accordance with Section E below by October 8, 1971, payment of the instalment due on November 8, 1971 shall be postponed and shall be made not later than 30 days after the date when the replenishment shall have become effective; (d) The rights and obligations of the Association and the members in regard to the subscriptions and contributions shall be the same (except as otherwise provided in this Resolution) as those which govern the ninety percent portion of the initial subscriptions of original members payable under Article II, Section 2(d) of the Articles of Agreement by members listed in Part I of Schedule A of the Articles; (e) Notwithstanding the foregoing, any member which agrees to make payment of its subscriptions and contributions without exercising its right to substitute notes or similar obligations therefor may make such payment in amounts and on dates other than those specified pursuant to subparagraph (c) above provided that in the judgment of the Executive Directors the terms of such payment would be no less favorable to the Association than if notes or similar obligations had been deposited instead; (f) If any member shall deposit the notification referred to in paragraph 9(a) below after the date when the first instalment shall be payable, including any postponement thereof (as provided in subparagraph (c) above), payment of such instalment by such member shall be made within 30 days after the date of such deposit; (g) If any member advises the Association not less than 30 days before any payment is due as specified above that because of governmental procedures or administrative problems it is not in a position to make such payment and wishes to postpone it, such payment shall be postponed for a period of not more than three months. 1 Tables I and II which were attached to the Report of the Executive Directors are append to this resolution. IDA Resolution No. 77 Page 3 of 7 C. Additional Resources Provided by Certain Part II Members 5. WHEREAS Part II members Ireland, Spain and Yugoslavia have expressed their intention, subject to any necessary legislative action, to make available additional resources to the Association in usable form in the form of contributions not carrying voting rights on the basis set forth in paragraph 15 of the said Report of the Executive Directors; 6. NOW THEREFORE the Board of Governors resolves that: (a) The Association is authorized to accept additional resources from the members listed in paragraph 5 above in the amounts set forth for each such member, respectively, in Table II, column 7, in the form of contributions not carrying voting rights; (b) Payment of each such contribution shall be made in usable form but otherwise shall be made on the same basis, and the rights and obligations of the Association and the subscribing member with respect to such contribution, shall be on the same terms and conditions, as provided in paragraph 4(c), (d), (e), (f) and (g) of this Resolution for the subscriptions and contributions of the Part I members. D. Part II Subscriptions; Article III, Section 1(c) 7. WHEREAS additional subscriptions are being authorized for the Part I members under Section B of this Resolution and therefore, under the provisions of Article III, Section l(c) of the Articles of Agreement of the Association, each Part II member shall be given an opportunity to subscribe, under such conditions as shall be reasonably determined by the Association, an amount which will enable it to maintain its relative voting power; 8. NOW THEREFORE the Board of Governors resolves that: (a) The Association is authorized to accept additional subscriptions from the Part II members of the Association in the amounts and carrying the voting rights as set forth for each such member, respectively, in Table II, columns 8, 10 and 11, respectively, calculated on the basis of 1250 votes plus one additional vote per $80 of such subscriptions. (b) Payment of each such subscription shall be made in the currency of the subscribing member but otherwise on the same terms and conditions as those provided in paragraphs 4(c), (f) and (g) of this Resolution for the subscriptions of the Part I members; (c) The rights and obligations of the Association and the members in regard to such subscriptions shall be the same (except as otherwise provided in this Resolution) as those which govern the ninety percent portion of the initial subscriptions of original members payable under Article II, Section 2(d) of the Articles of Agreement by members listed in Part II of Schedule A of the Articles. IDA Resolution No. 77 Page 4 of 7 E. Effectiveness 9. The Board of Governors hereby resolves that: (a) None of the subscriptions and contributions authorized by this Resolution shall become payable unless the following condition has been satisfied: Members, including at least 12 Part I members, whose subscriptions and contributions aggregate not less than $1,900,000,000 shall have given the Association, on or before June 30, 1971, or such later date as the Executive Directors may determine, formal notification that they will make both the subscription and the contribution authorized hereunder for each such member in accordance with the terms of this Resolution. (b) The replenishment authorized by this Resolution shall become effective on the date when the condition specified in subparagraph (a) above shall have been satisfied; provided, however, that no member shall be obligated to make the subscription and contribution authorized hereunder for such member unless it shall have notified the Association that it will do so. On the date when that condition shall have been satisfied, each member who shall have given the Association such notification shall be entitled to the voting rights accorded to its subscription as specified in this resolution. Each member who on any date thereafter shall give the Association such notification shall be entitled, as of that date, to the voting rights accorded to its subscription as specified in this resolution. (Adopted on February 17, 1971) IDA Resolution No. 77 Page 5 of 7 IDA Resolution No. 77 Page 6 of 7 IDA Resolution No. 77 Page 7 of 7