Press Release No. 07/270

Press Release No. 07/270

The Executive Board of the International Monetary Fund (IMF) has approved the renewal of the New Arrangements to Borrow (NAB) and the General Arrangements to Borrow (GAB) on a lapse of time basis, effective November 15, 2007.

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$54 billion) 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.

The NAB entered into effect on November 17, 1998 (see Press Release No. 98/57), and was first renewed in 2002 for a period of five years from November 17, 2003 (see Press Release No. 02/50). This second renewal of the NAB is for a further period of five years from November 17, 2008.

The GAB was established in 1962, and has been renewed every four or five years, most recently in 2002 for a period of five years from December 26, 2003 (see Press Release No. 02/50). This tenth renewal of the GAB is for a further period of five years from December 26, 2008.

For additional background see: "IMF Borrowing Arrangements: GAB and NAB" at http://www.imf.org/external/np/exr/facts/gabnab.htm