The NAB is a set of credit arrangements between the IMF and 38 member countries¹ and institutions, including a number of emerging market countries. The NAB is used in circumstances in which the IMF needs to supplement its quota resources for lending purposes. Once activated, it can provide supplementary resources of up to SDR 370.0 billion (about $554 billion) to the IMF.

The General Arrangements to Borrow (GAB) can also be used in limited cases.

NAB Participants and Credit Amounts¹

	Amount (SDR million)
Current Participants
Australia	4,370.41
Austria	3,579.24
Banco Central de Chile	1,360.00
Banco de Portugal	1,542.13
Bank of Israel	500.00
Belgium	7,861.85
Brazil	8,740.82
Canada	7,624.43
China	31,217.22
Cyprus	340.00
Danmarks Nationalbank	3,207.78
Deutsche Bundesbank	25,370.81
Finland	2,231.76
France	18,657.38
Greece*	1,654.51
Hong Kong Monetary Authority	340
India	8,740.82
Ireland*	1,885.52
Italy	13,578.03
Japan	65,953.20
Korea	6,583.44
Kuwait	341.29
Luxembourg	970.59
Malaysia	340.00
Mexico	4,994.76
Netherlands	9,043.72
New Zealand	624.34
Norway	3,870.94
Bangko Sentral ng Pilipinas	340.00
National Bank of Poland	2,530.00
Russian Federation	8,740.82
Saudi Arabia	11,126.03
Singapore	1,276.52
South Africa	340.00
Spain	6,702.18
Sveriges Riksbank	4,439.74
Swiss National Bank	10,905.42
Thailand	340.00
United Kingdom	18,657.38
United States	69,074.27
Total2	369,997.36
1 Credit arrangements are subject to a minimum of SDR 340 million. 2 Total may not equal sum of components due to rounding. * Have yet to adhere to expanded NAB.

Decision to triple the IMF’s lending resources by expanding the NAB

As part of efforts to overcome the global financial crisis, in April 2009, the Group of Twenty industrialized and emerging market economies (G 20) agreed to increase the resources available to the IMF by up to $500 billion (which would triple the total pre-crisis lending resources of about $250 billion) to support growth in emerging market and developing countries.

This broad goal was endorsed by the International Monetary and Financial Committee (IMFC) in its April 25, 2009 communiqué. The increase was made in two steps:

• First, through bilateral financing from IMF member countries;
• Second, by incorporating this financing into an expanded and more flexible NAB. On September 25, 2009 the G-20 announced it had delivered on its promise to contribute over $500 billion to a renewed and expanded NAB.

Currently, the Fund has sixteen active bilateral loan agreements worth about $200 billion and two active bilateral note purchase agreements for about $60 billion. For NAB participants with bilateral credit lines, these credit lines do not add to the total resources available to the Fund under their NAB credit arrangements.

Where it originated

The original NAB was proposed at the 1995 G-7 Halifax Summit following the Mexican financial crisis. Growing concern that substantially more resources might be needed to respond to future financial crises prompted participants in the Summit to call on the G-10 and other financially strong countries to develop financing arrangements that would double the amount available to the IMF under the GAB. In January 1997, the IMF’s Executive Board adopted a decision establishing the NAB, which became effective in November 1998.

New participants can be admitted at any time with the agreement of participants representing 85 percent of total credit arrangements. On November 15, 2011, the National Bank of Poland joined the NAB, bringing its total size to SDR 370.0 billion (about $554 billion).

How it works

The amended NAB became effective on March 11, 2011, increasing the maximum amount of resources available to the IMF under the NAB to SDR 367.5 billion (about $560 billion), from the SDR 34 billion under the original NAB. To make the expanded NAB a more effective tool of crisis prevention and management, the loan-by-loan activation under the original NAB was replaced by the establishment of general activation periods of up to six months. The activation periods are subject to a specified maximum level of commitments.

New participants can be admitted at any time with the agreement of participants representing 85 percent of total credit arrangements. On November 15, 2011, the National Bank of Poland joined the NAB, bringing its total size to SDR 370.0 billion (about $567 billion).

How the NAB is used

Under the NAB, a proposal by the IMF’s Managing Director for the establishment of an activation period can become effective only if it is accepted by participants representing 85 percent of total credit arrangements of participants eligible to vote and is then approved by the IMF’s Executive Board.

The NAB has been activated four times:

• First, to finance a Stand-by Arrangement for Brazil in December 1998, when the IMF called on funding of SDR 9.1 billion, of which SDR 2.9 billion was used;
• Second, in April 2011 the NAB was activated for the maximum period of six months in the amount of SDR 211 billion (about $319 billion).
• Most recently, the NAB has been activated three times for the maximum period of six months commencing on October 1, 2011, April 1, 2012, and October 1, 2012, respectively.

GAB

The GAB enables the IMF to borrow specified amounts of currencies from 11 industrial countries (or their central banks), under certain circumstances. Specifically, a proposal for calls under the GAB may only be made when a proposal for the establishment of an activation period under the NAB is not accepted by NAB participants.

The potential amount of credit available to the IMF under the GAB totals SDR 17 billion (about $26 billion), with an additional SDR 1.5 billion available under an associated arrangement with Saudi Arabia.

The GAB was established in 1962 and expanded in 1983 to SDR 17 billion, from about SDR 6 billion. It has been activated ten times, the last time in 1998.

The GAB and the associated credit arrangement with Saudi Arabia have been renewed, without modifications, for a period of five years from December 26, 2013.

GAB Participants and Credit Amounts

	Original GAB (1962-1983)	Enlarged GAB (1983–2008)
Participant	Amount (SDR million1)	Amount (SDR million)
Belgium	143	595
Canada	165	893
Deutsche Bundesbank	1,476	2,380
France	395	1,700
Italy	235	1,105
Japan2	1,161	2,125
Netherlands	244	850
Sveriges Riksbank	79	383
Swiss National Bank		1,020
United Kingdom	565	1,700
United States	1,883	4,250
Total	6,344	17,000
Saudi Arabia (associated credit arrangement)		1,500
1 SDR equivalent as at October 30, 1982 2 250,000 million yen entered into effect on November 23, 1976 Note: Total may not equal sum of components due to rounding.

¹ Neither Ireland or Greece have adhered.