ASIAN DEVELOPMENT BANK
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ASIAN DEVELOPMENT BANK
Treasurer's Department
E.S.
s./A.D. o.r. Ph fila 3/2
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Dių-civice wifi AUSTRIA. DEMM...NÝ
UNITED LIMH
Dr Heinz Bühler
Executive Director
Thru
:
Dang Fook Lee
From
Re
Ree
TD/165.042/DP
5 February 1992
Secretary
Ian Hay
Assistant Treasurer, TDFP
HONG KONG'S CONTRIBUTIONS TO ADF
1.
I refer to your memorandum of 29 January 1992 on the above subject.
2.
Hong Kong contributed US$1 million to each of ADF IV and ADF V. As of 31 December 1991, US$656,000 of the ADF IV contribution had been drawn down. Based on our latest ADF drawdown forecasts, the contribution is expected to be fully drawn down in 1993. Drawings on ADF V contributions are expected to be made during the years 1993-1997. It is estimated that about US$171,000 of Hong Kong's ADF V contribution will be drawn down in 1997. We would not have any difficulty, however, if Hong Kong were
Kong were to voluntarily encash the undrawn balance of the ADF V contribution at any time before 1997.
3.
With regard to Hong Kong's ADF VI contribution, there would be no problem
no problem if the contribution were paid in cash rather than promissory notes. Payment in cash would be permissible in accordance with paragraph 7 of the (draft) Resolution on ADF VI. In the case of past ADF replenishments, contributions have been paid in cash by a number of member countries. Pursuant to paragraph 6 of the (draft) Resolution, the last instalment for ADF VI should be paid not later than 31 December 1995.
4.
Another possible liability to the Bank is Hong Kong's maintenance of value (MOV) obligation arising from the Bank's holdings of Hong Kong dollars. As of 31 December 1991, this obligation is notionally computed to be about HK$59.5 million. The obligation results from changes in the exchange rate of the Hong Kong dollar since 1978 when the provisional arrangements relating to valuation of the Bank's capital and
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