Decision ID: 000822

In October 1997 the 1992 Fund Assembly considered the question of how to convert 135 million SDR, the maximum amount payable under the 1992 Fund Convention, into national currency. The Assembly noted that, under Article 4.4(c) of the 1992 Fund Convention, the conversion should be made on the basis of the value of that currency by reference to the SDR on the date of the decision of the Assembly as to the first date of payment of compensation. The Assembly recalled that in the case of the Nakhodka it had authorised the Director to make payments on behalf of the 1992 Fund, but that it had not – and could not have at the time – taken any decision as to the date of the first payment. The Assembly decided that the conversion of 135 million SDR into national currency should be made on the basis of the value of that currency vis-a-vis the SDR on the date of the Assembly’s (or the Executive Committee’s) adoption of the Records of Decisions of the session at which the relevant body took the decision making payments of claims possible. As regards the Nakhodka incident, this date was 17 April 1997, and using the rate of exchnage on that date, 135 million SDR eqalled ¥23,164,515,000 (114 million). The Assembly further decided that if the Record of Decisions was not adopted during the session, the date for conversion should be that of the last day of the session.