Press Release: Participation of Banco Central de Chile in the New Arrangements to Borrow
March 13, 2003
In the context of the NAB renewal, the IMF Executive Board had agreed to the request of Banco Central de Chile, an official institution of Chile, with its consent to become a new participant in the NAB.1 This decision was approved unanimously by NAB participants in December 2002. In February 2003, following deposit of the Instrument of Adherence, Banco Central de Chile became a participant with a credit arrangement of SDR 340 million. The adherence of the Banco Central de Chile in the NAB left unchanged the total amount of the NAB credit arrangements at SDR 34 billion and there was a proportional reduction in the credit arrangements of all existing participants whose arrangements were above the SDR 340 million minimum.
The NAB is a set of credit arrangements between the IMF and a group of members and institutions to provide supplementary resources to the IMF to forestall or cope with an impairment of the international monetary system or to deal with an exceptional situation that poses a threat to the stability of that system (see Factsheet Borrowing Arrangements). The combined available borrowing under the NAB amounts to SDR 34 billion (about US$47 billion).
1 The Executive Board of the International Monetary Fund (IMF) approved the first renewal of the New Arrangements to Borrow (NAB) for a further period of five years from November 17, 2003 (see Press Release No. 02/50, 11/13/02).