GF/B07/DP12
Approved by the Board on: 19 March 2004
Additional MEFA Items (Report of the Monitoring, Evaluation, Finance and Audit Committee (MEFA))
Protecting Grants from the Impact of Exchange Rate Fluctuations
Decision Point 1
That in cases where a funding shortfall caused by an adverse currency fluctuation is jeopardizing the viability of the grant supported program, the CCM may apply for Phase 2 funding on an accelerated basis in order to permit the program to continue uninterrupted without curtailing program activity.
Decision Point 2
That the Secretariat evaluate the implications of the Global Fund offering top-up grants and multi-currency denominated grants as further means of protecting grants from the impact of exchange rate fluctuations and to present its analysis and recommendations to the Board in June 2004.
Decision Point 3
To mandate the Secretariat and the MEFA Committee to study possible stabilization mechanisms, including topping-up grants and multi-currency grants, aimed at protecting grants from the impact of exchange rate fluctuations. The MEFA Committee will present its analysis and recommendations to the Board at the Eighth Board Meeting.
Criteria for Considering Promissory Notes as Assets
Decision Point 4
That the Global Fund shall consider as assets for the purposes of entering into grant agreements, promissory notes or similar obligations issued by the government of a sovereign state (or its designated depository) which shall be non-negotiable, non-interest bearing and payable at par value to the account of the Fund in the designated depository on demand or in accordance with an encashment schedule agreed between the contributor and the Secretariat.