Encashment schedule

The Twelfth Meeting of the Executive Committee agreed to adopt the following encashment schedule as an initial encashment schedule which could be modified later on the basis of experience gained:

This schedule would be subject to acceleration in the light of needs. As also decided by the Committee, the schedule begins in 1995; if, however, notes deposited before 1994 were encashed in totality in 1994, the draw-down from 1994 notes could begin in 1994.

(UNEP/OzL.Pro/ExCom/12/37, para. 31, and Annex II).

(Supporting document: UNEP/OzL.Pro/ExCom/12/4).

The Executive Committee urged the Treasurer, in collaboration with the World Bank, to put in place modalities for transferring promissory notes from the Treasurer to the Bank, in consultation with the Parties concerned and as and when those Parties informed the Treasurer of their intention to pay their contributions in the form of promissory notes.

(UNEP/OzL.Pro/ExCom/13/47, para. 31).

The Twenty-first Meeting of the Executive Committee decided to express the hope that any outstanding issues related to the full use of promissory notes would be resolved by the time of the Twenty-second Meeting of the Executive Committee.

(UNEP/OzL.Pro/ExCom/21/36, Decision 21/1 d, para. 7).

The Twenty-fifth Meeting of the Executive Committee decided that, in view of the significant shift in the composition of cash and promissory notes in the resources of the Multilateral Fund and operational needs, the Treasurer should have the flexibility to implement the Executive Committee decision on accelerated encashment on need, provided that any accelerated encashment was done on a pro-rata basis across all the promissory notes received by the Treasurer, to provide fairness, and with a reasonable period of time of advance notice.

(UNEP/OzL.Pro/ExCom/25/68, Decision 25/2, para. 23(b)).

The Forty-first Meeting of the Executive Committee decided:

(a)  to request the Treasurer to provide a report to the 42nd Meeting of the Executive Committee on the historical use of promissory notes. For each promissory note submitted to date, the report should include: country of origin, denomination, date of submission, place of custody, deposit bank of account, date of final Treasurer encashment, any exchange rate loss or gain that resulted to the Fund from the use of the note, schedule of encashment or other stipulation (if any) included by the country concerned with the submission of the note, but should not be drafted with a view to limiting countries’ right to use promissory notes;

(b)  also to request the Treasurer to report on rules and/or systems for the transparent and equitable encashment of promissory notes used in other forums, with a view to enabling the Executive Committee to determine the advisability of establishing more standardized rules for the use of promissory notes, and in an effort to ensure that the notes, as well as the contributions in cash, of all donors were treated equitably and exchange rate loss was minimized.

(UNEP/OzL.Pro/ExCom/41/87, Decision 41/4, para. 34).

The Forty-second Meeting of the Executive Committee decided:

(a)  to take note of the additional information provided by the Treasurer; and

(b)  to request UNEP to complete the study on the encashment of promissory notes and submit a report thereon to the Executive Committee at its 43rd Meeting.

(UNEP/OzL.Pro/ExCom/42/54, Decision 42/44, para. 143).