Chile and the IMF
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IMF Renews Standing Borrowing Arrangements and Approves Chile's Participation in the New Arrangements to Borrow
The Executive Board of the International Monetary Fund (IMF) approved on November 12 the renewal of the New Arrangements to Borrow (NAB) and of the General Arrangements to Borrow (GAB), as well as Chile's participation in the NAB.
The NAB entered into effect on November 17, 1998 (see Press Release No. 98/57). This first renewal of the NAB is for a period of five years from November 17, 2003. In the context of the NAB renewal, the Executive Board also agreed to the admission of Chile as the first new participant in the NAB since its establishment. In assessing Chile's capacity to provide supplementary resources to the IMF, the Executive Board took into consideration, among other criteria, the level of Chile's international reserves and its uninterrupted participation in the IMF's Financial Transactions Plan as a creditor since the mid-1990s and concluded that Chile is well positioned to become a new participant in the NAB. Chile will be the first Latin American country to participate in the NAB and will be represented by the Banco Central de Chile.1
The GAB was established in 1962, and has been renewed every four or five years, most recently on December 26, 1998 (see Press Release No. 97/53). This ninth renewal of the GAB is for a further period of five years from December 26, 2003.The NAB and GAB are credit arrangements between the IMF and a group of members and institutions to provide supplementary resources of up to SDR 34 billion (about US$45 billion) to the IMF to forestall or cope with an impairment of international monetary system or to deal with an exception situation that poses a threat to the stability of that system (see Factsheet Borrowing Arrangements). The total amount of resources available under the NAB will remain unchanged following Chile's participation, with a credit arrangement of SDR 340 million (about US$450 million), as other participants will adjust the amount of their credit arrangements.
1 The NAB participants are: Australia, Austria, Belgium, Canada, Denmark, Deutsche Bundesbank, Finland, France, Hong Kong Monetary Authority, Italy, Japan, Korea, Kuwait, Luxembourg, Malaysia, Netherlands, Norway, Saudi Arabia, Singapore, Spain, Sveriges Riksbank, Swiss National Bank, Thailand, United Kingdom, United States of America.
IMF EXTERNAL RELATIONS DEPARTMENT