Auroran Monetary Fund: Difference between revisions

{{Infobox organization

| name = Auroran Monetary Fund

| abbreviation = AMF

| formation = 1 March 2021

| type = International organization

| status = Non-profit organization

}}

 

 

 

==Purpose and function==

 

==Structure and organization==

The Auroran Monetary Fund is comprised of the following two sub-funds:

* The Auroran Financial Stability Fund which lends money to governments whose countries cannot afford to pay for imports or to pay their debts. The purpose of this sub-fund is to ensure that the affected country is financial stable i.e. it provides the nation with the liquidity required to meet its debts and bridge its balance of payments gap.

* Processing of loan applications,

* Development of policies for indebted nations,

* Distribution of dividends to shareholders and maturities to bondholders,

* Putting up bonds on bond markets.

 

===President===

The President of the AMF has the following functions:

* Convene and preside over meetings of the Board of Directors,

* Voting shares which give holders thereof the right to vote in the General Assembly. Only governments can own such shares. Governments may only transfer these shares to another government. They may not transfer these shares to non-member states. Governments may only transfer their voting share to another nation with the approval of the General Assembly. Voting rights are distributed according to the proportion of held voting shares. The General Assembly may vote to create more shares which would alter the voting rights of the members. Each fund has its own shares meaning that having shares in one sub-fund does not give one voting rights in matters concerning the other sub-fund. Members with voting shares only receive dividends once the preferential shares and bondholders have been paid. Governments may purchase as many shares as they can afford and as many shares as are available. Shares are sold and bought by auction. Meaning, for each round of shares made available, a government must present the quantity of shares and total price that it is willing to pay for the shares. The shares are then distributed according to the auction. The value of the share is calculated by distributed the net asset value of the sub-fund by number of shares.

* Preferential shares do not grant any voting rights. They grant shareholders the right to receive a fixed dividend per share. Preferential shareholders are paid after bondholders but before voting shareholders. Anyone including governments, private citizens and companies may buy these shares. These shares can be sold and bought on any market where shares are legally traded.

 

==Dispute resolution==

 

===External dispute resolution===

The only court of law with the power to make legally binding decisions over the AMF, AIF and AFSF is the Auroran Court of Justice. The decisions made by the ACJ are binding on the litigants who participate.

* The pre-trial bench of the ACJ determines whether a case should be brought to the trial bench for consideration. It looks at whether the case falls within the scope of the ACJ, whether the matter is material and whether the litigants have attempted other channels to resolve the case. This bench issues a summons for the opposing party to stand trial, creating a legal obligation for the respondent to appear before the court and defend itself.

* Bonds give the bondholder a fixed repayment in the form of maturities according to the conditions of the bond-certificate. Usually bonds are payable regardless of the financial performance or position of the AMF, unless bondholders are willing to accept revised bond-certificate conditions through accepting a different (which they are not forced to).

The AMF may not invest money in equities unless the GA agrees to convert a loan repayment to an equity swap. The AMF is not an investment management firm, instead it is a last-resort source of finance to help nations navigate financial distress or access economic opportunities.