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Measures to Safeguard the Balance of Payments

By:Agreement on Investment Article 11th   Update:2016-05-27
In the event of serious balance of payments and external financial difficulties or  threat thereof, a Party may adopt or maintain restrictions on investments, including  payments or transfers related to such investments.It is recognised that particular  pressures on the balance of payments of a Party in the process of economic  development may necessitate the use of restrictions to ensure, inter alia, the  maintenance of a level of financial reserves adequate for the implementation of its  programme of economic development.  
        The restrictions referred to in Paragraph 1 shall:
        (a) be consistent with the Articles of Agreement of the IMF;
        (b) not discriminate among the Parties;  
        (c) avoid unnecessary damage to the commercial,economic and financial interests of  any other Party;
        (d) not exceed those necessary to deal with the circumstances described in Paragraph1;
        (e) be temporary and be phased out progressively as the situation specified in  Paragraph 1 improves; and
         (f) be applied such that any other Party is treated no less favourably than any third country.
Any restrictions adopted or maintained by a Party under Paragraph 1 or any  changes therein, shall be promptly notified to the other Parties.


Dian ICP Bei NO. 11000472-9