Special Withdrawal Rights Regulations
The Special Withdrawal Rights (SWR) mechanism enables countries or financial institutions to access emergency reserves from the Great Crypto Reserve Hub. This regulation ensures fairness, transparency, and efficiency in the use of funds while supporting countries in overcoming economic challenges. Below are the detailed regulations regarding the Special Withdrawal Rights
1. Withdrawal Conditions
Emergency Situations
SWR is granted only in cases where a country or financial institution faces emergencies, such as financial crises, balance of payment deficits, or severe economic shocks.
Purpose of Use
Withdrawn funds must be used for approved purposes, including financial market stabilization, liquidity support, or fiscal policies aimed at mitigating economic downturns.
2. Application Process
Application Submission
Countries or financial institutions must submit an official request detailing the reasons, amount of capital needed, and intended use. This application is submitted to the national branch of the Great Crypto Reserve Hub.
(Application form attached)
Application Review
The national branch evaluates the application based on factors such as the economic situation, urgency level, and effective use potential of the funds. The application is then forwarded to the Global Management Authority for approval.
3. Approval and Decision-Making
Approval by the Global Management Authority
The authority reviews the proposal and makes a decision based on the emergency's impact, actual need, and the country’s repayment capacity.
Notification of Outcome
Once a decision is made, the results are communicated to the national branch, along with any attached conditions (if applicable).
4. Withdrawal and Utilization
Withdrawal of Funds
Upon approval, the country or financial institution may proceed with withdrawing the allocated amount of Great Crypto from the Reserve Hub.
Fund Utilization
Funds must be used strictly for the purposes outlined in the request and comply with the stipulated conditions. Full and periodic usage reports must be submitted to ensure transparency.
5. Reporting and Oversight
Periodic Reporting
The recipient country or organization must submit periodic reports detailing the usage of funds, including supported projects and programs.
Oversight
The Global Management Authority will monitor fund usage to ensure that funds are used as intended and achieve the desired outcomes. If any misuse is detected, the authority has the right to demand fund repayment or impose other corrective measures.
6. Repayment Capability
Repayment Capability Assessment
Countries are required to assess their capability to repay withdrawn funds. Countries with higher repayment capabilities are typically granted a higher SWR rate.
Repayment Plan
The country or organization must present a repayment plan, including the timeline and expected financial sources.
7. SWR Rate Calculation Formula
The Special Withdrawal Rights rate will be determined based on economic and financial factors, with the following composite formula:
8. Repayment and Adjustment
Fund Repayment
Once the economic situation stabilizes or there is no longer a need for the funds, the country or financial institution must repay the withdrawn funds back to the Reserve Hub according to the agreed-upon schedule.
SWR Adjustment
In cases of changes in the financial situation, the country or institution may request an adjustment of the SWR following a similar initial process.
This regulation ensures that Special Withdrawal Rights are exercised according to clear, transparent, and fair criteria, helping maintain financial stability and assisting countries in overcoming economic challenges during emergencies.