Press Release No. 10/14

Press Release No. 10/14
January 22, 2010

The International Monetary Fund (IMF) and Brazil have signed an agreement under which Brazil would purchase up to US$10 billion in IMF notes over a period of up to two years. The note purchase agreement follows the endorsement by the Executive Board on July 1, 2009 of the framework for issuing notes to the official sector (see Press Release No. 09/248). The Brazilian authorities had already expressed their intention to invest in IMF notes (see Press Releases No. 09/248 and No. 09/207).

The agreement offers Brazil a safe investment instrument at the same time as boosting the Fund’s capacity to help its members to weather the global financial crisis. The Fund can now add these resources to those already available through agreements signed with other members, which contribute toward an increase in Fund resources that was requested in April 2009 by G-20 leaders and the International Monetary and Financial Committee.

Useful links:

Text of the Note Purchase Agreement with Brazil:

http://www.imf.org/external/np/pp/eng/2010/010810.pdf

Press Release 09/207 welcoming Brazil’s proposal to purchase IMF notes:

http://www.imf.org/external/np/sec/pr/2009/pr09207.htm

Factsheet on Note Issuance:

http://www.imf.org/external/np/exr/facts/imfnotes.htm

IMFC Communiqué, April 25, 2009:

http://www.imf.org/external/np/sec/pr/2009/pr09139.htm

Agreements bolstering the IMF’s lending capacity:

http://www.imf.org/external/np/exr/faq/contribution.htm