The government of the Socialist People's Libyan Arab Jamahiriya has notified the International Monetary Fund (IMF) that it has accepted the obligations of Article VIII, Sections 2, 3, and 4 of the IMF Articles of Agreement.
Libya joined the Fund in 1958. Its quota is about $1.564 billion. Libya has no outstanding use of IMF financing. By accepting the obligations of Article VIII, Libya gives confidence to the international community that it will pursue economic policies that will make restrictions on the making of payments and transfers for current international transactions unnecessary, and will contribute to a multilateral payments system free of restrictions.
When members join the IMF, they undertake to refrain from imposing new restrictions on the making of payments and transfers for current international transactions, and from engaging in discriminatory currency arrangements or multiple currency practices, without IMF approval. However, restrictions on making payments and transfers for current international transactions that exist before a member joins the IMF can be maintained under transitional provisions in Article XIV of the IMF Articles of Agreement.
When a member accepts the obligations of Article VIII it effectively signals an intention to no longer avail itself of the transitional provisions of Article XIV. A total of 156 countries have now assumed Article VIII status. — (menareport.com)
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