Schedule-2

Resolution on Membership of Nepal

Whereas, the Government of Nepal, Nepal on 13 April 1960, applied for membership in the International Monetary Fund in accordance with section 2 of
Article II of the Articles of Agreement of the Fund; and Whereas, pursuant to section 21 of the By-laws of the Fund, the Executive Directors have consulted with the representative of that Government and have agreed upon the terms and conditions which, in the opinion of the Executive Directors, the Board of Governors may wish to prescribe for admitting Nepal to membership in the Fund; Now, therefore, the Board of Governors, having considered the recommendations of the Executive Directors, hereby resolves that the terms and conditions upon which Nepal shall be admitted to membership in the Fund shall be as follows:
1. Definitions : As used in this Resolution;
(a) the term “Fund” means the International Monetary Fund;
(b) the term “Articles” means the Articles of Agreement of the International Monetary Fund;
(c) the term “dollars” means United States dollars of the weight and fineness in effect on 1 July 1944.
2. Quota : The quota of Nepal shall be 7,500,000 (Seven Million Five Hundred Thousand dollars.

3. Subscription : The subscription of Nepal shall be equal to its quota. Nepal shall pay in gold, as a minimum, Three and half percent of its quota. The balance of the subscription shall be paid in the currency of Nepal.

4. Payment of Subscription : The portion of the subscription to be paid in gold shall be paid not later than the day the Articles are signed on behalf of Nepal. In case Nepal does not acquire membership in the Fund, the gold so paid shall be returned to it by the Fund. The remaining part of the subscription which has not been paid in gold shall be paid before the Thirtieth day after the initial par value of the currency of Nepal has been agreed in accordance with Paragraph 5 below.

5. Determination of Par Value : Within 30 days after the Fund so requests, Nepal shall communicate to the Fund a proposed par value for its currency, and within 60 days following the Fund’s receipt of the proposed par value, Nepal and the Fund shall agree on an initial par value for the currency: provided that the Fund may extend the period of 60 days and that Nepal shall be deemed to have withdrawn from the Fund if agreement on a par value has not been reached when the extended period expires. In the period between accepting membership and the establishment of an initial par value pursuant to this paragraph, Nepal shall not change its exchange rates prevailing at the time of accepting membership without agreement with the Fund after prior consultation.

6. Exchange Transactions with the Fund : Nepal may not engage in exchange transactions with the Fund until:
(a) the Thirtieth day of the par value of its currency having been agreed in accordance with paragraph 5 above; and
(b) its subscription has been paid in full.

7. Representation and Information : Before accepting membership in the Fund, Nepal shall represent to the Fund that it has taken all action necessary
to sign and deposit the Instrument of Acceptance and sign the Articles, as contemplated by paragraph 8 (a) and (b) of this Resolution, and Nepal shall furnish to the Fund such information in respect of such action as the Fund may request.

8. Acceptance of Membership : After the Fund shall have informed the Government of the United States of America that Nepal has complied with the conditions set out in paragraph 7 of this Resolution, Nepal shall become a member of the Fund as of the date when Nepal shall have complied with the following requirements:
(a) Nepal shall deposit with the Government of the United States of America an instrument stating that it has accepted in accordance with its law the Articles and all the terms and conditions prescribed in this Resolution, and that it has taken all steps necessary to enable it to carry out all its obligations under the Articles and this
Resolution; and
(b) Nepal shall sign the original copy of the Articles held in the Archives of the Government of the United States of America.

9. Limitation on Period of Acceptance of Membership : Nepal may accept membership in the Fund pursuant to this Resolution within 6 months of the effective date of this Resolution, which date shall be the date of its adoption by the Board of Governors; provided, however, that, if extraordinary circumstances are deemed by the Executive Directors to warrant an extension of the period during which the applicant may accept membership pursuant to this Resolution, the Executive Directors may extend such period until such later date as they may determine