Press Release: General Arrangements to Borrow Renewed
November 24, 1997
The International Monetary Fund has renewed the General Arrangements to Borrow (GAB) for a further period of five years from December 26, 1998 to December 25, 2003. The GAB is a long-standing set of bilateral credit arrangements between the IMF and 11 industrial countries, which currently amounts to SDR 17 billion (about US$23.3 billion). By strengthening the IMF’s ability to support the adjustment efforts of its members and to address their payments difficulties, the GAB is an important element of the Fund’s capacity to respond to potential systemic problems.
The GAB have been activated nine times since their establishment in 1962. The most recent activations were in 1977, when the Fund borrowed for lending to the United Kingdom and Italy under stand-by credits, and in 1978 to finance a reserve tranch purchase by the United States. A proposal for calls on the GAB by the IMF’s Managing Director can become effective only if it is accepted by the GAB participants, and the proposal is then approved by the Board.
The participants in the GAB and the amounts of their credit arrangements are: