How the GGMF Debt Forgiveness Process will be implemented.

HOW THE GGMF DEBT FORGIVENESS PROCESS WILL BE IMPLEMENTED BETWEEN GGMF AND THE COUNTRY MEMBER (GOVERNMENT)

A. Introduction:

GGMF uses the power of its God-given gold resources to implement a global debt write-off and forgiveness process (after a netting and set-off of assets and liabilities) which is designed to eliminate the
debts of Country Members over a one to two-year agreed Transition Period – a form of golden jubilee.

B. Pre-Legal Tender Phase:

The Country Member and GGMF agree that during the Transition Period, one gold unit issued by the Country’s Trust of the Fund shall be equal to one unit of the Country Member’s fiat currency (e.g. 1 USD = 1 USG) and both the local fiat currency and the Country Member’s gold units will have equal legal tender status and a one-to-one (1:1) exchange value.

1. The Country Member’s total indebtedness (including debts incurred in foreign currencies and local currencies) is calculated and converted into local currency at the then current rate of exchange (e.g. PHP 56.91 = USD 1.00) on the day the agreement is executed.
2. The Country Member agrees to grant legal tender status to GGMF’s gold-backed monetary units proposed for the Country Member.
3. GGMF utilizes the Country Trust (“Trust”), already created for the sole benefit of the people of the country, and transfers (as “Bailor”) a gold certificate to the Country Trust (as “Bailee”) for a substantial amount of physical gold under terms and conditions of a fifty (50) year bailment agreement, which effectively transfers the use and custody of the gold certificate to the Bailee (not the ownership of the gold which belongs to God) so that the Trust can collateralize the issuance of its gold units for the Country Member and its people.

C. Foreign Debt Conversion Phase:

GGMF converts a Country Member’s indebtedness payable in a foreign currency into a local currency.  This is done through an agreement in which the Country Member agrees to sell, transfer and assign to GGMF its entire loan book portfolio payable in each and every foreign currency (e.g. USD) and GGMF agrees to purchase such debt from the Country Member based on the following terms and conditions:

1. The Country Member provides GGMF with a complete list of all its indebtedness, including details of all its creditors and the terms and conditions of each debt instrument.
2. The Country Member converts its total indebtedness indicated in foreign currencies into local currency (principal and accrued interest up to the date of the agreement).
3. The Country Member’s Treasury Department, through the office of the Minister of Finance, issues a two-year irrevocable, unconditional, divisible, transferable and assignable Note denominated in local currency in favor of GGMF, which GGMF acquires and pays for with local gold units (refer to B. above) based on the one-to-one (1:1) exchange rate on the day prior to the execution of the agreement between GGMF and the Country Member.
4. GGMF temporarily uses the Note of the Country Member to secure the local financing (in fiat currency) it solely needs to secure and support the nationwide switch-over conversion, including any settlement, from fiat to gold units.

D. Local Debt Conversion Phase:

As soon as GGMF’s gold units have received official legal tender status in the country, the Country Member agrees to sell, transfer and assign to GGMF its entire portfolio of debt instruments payable in its local currency and GGMF agrees to purchase such debt from the Country Member based on the following terms and conditions:

1. The Country Member provides GGMF with a complete list of all its indebtedness, including details of all its creditors and the terms and conditions of each debt instrument (principal and accrued interest up to the date of the agreement).
2. The Country Member’s Treasury Department, through the office of the Minister of Finance, issues a two-year irrevocable, unconditional, divisible, transferable and assignable Note denominated in local currency in favor of GGMF which GGMF acquires and pays for it with local gold units (refer to B above) based on a one-to-one (1:1) exchange rate.
3. GGMF temporarily uses the Note of the Country Member to secure the local financing (in fiat currency) it solely needs to secure and support the nationwide switch-over conversion, including any settlement, from fiat to gold units.

E. Post Legal Tender Approval Phase:

1. As soon as GGMF’s gold units are officially deemed to have legal tender status in the Country, the Country Member will be required to obtain the approval of each of its foreign creditors to convert its indebtedness from a fiat currency (e.g., USD) to gold units of the Country, which must include the right for GGMF to apply set-off of assets and liabilities.
2. Upon acceptance by one or more foreign creditors, GGMF will authorize the Country Member to use GGMF’s allocation of gold units (which are held in escrow by GGMF pending approval from each foreign creditor) to the Country Member, to pay-off and definitively settle 100% of its indebtedness (interest and principal) to such creditor(s).
3. If the creditor is the International Monetary Fund, the World Bank, or any other multilateral financial institution, the Country Member will nominate a designated representative of GGMF to its board to represent the Country Member henceforth. 

F: Forgiveness of Debt Phase:

GGMF will gradually forgive the Country Member’s debts during the Transition Period (two years or less), subject to all the foreign creditors having consented to switch-over and settle their loans from fiat to gold units.

G: IN CONCLUSION:

Details of the summarized or detailed analysis of the Country Member Benefits is available for review by clicking on the above hyperlinks.

NOTE: The issue of FIAT Currency and Gold Units under the Debt Forgiveness Process is NOT included in the calculation of fifteen percent (15%) Special Adopter allocation payable by the Fund to the Treasury Department of the Country Member.