IMF Members Commit US$340 billion in Bilateral Borrowing to Maintain the IMF’s Lending Capacity

IMF News, October 7, 2016

Source details

Canonical URL: IMF Members Commit US$340 billion in Bilateral Borrowing to Maintain the IMF’s Lending Capacity

Twenty-five members of the International Monetary Fund (IMF) have committed a total of SDR 243 billion (US$340 billion) in bilateral borrowed resources with maximum terms through end-2020.
These bilateral borrowed resources are intended to preserve the overall lending capacity of the IMF and to continue serving as a third line of defense after quotas and the New Arrangements to Borrow (NAB).
Ms. Christine Lagarde, IMF Managing Director, said: “These commitments will preserve the overall lending capacity of the IMF and provide confidence that the Fund will continue to address the needs of our membership. I am heartened that so many countries have already made a commitment, and I would encourage others to join this important international cooperative effort.”
Press Release No. 16/447; publication date: October 7, 2016.

There are currently 35 agreements with creditors under the 2012 Borrowing Agreements for a total of SDR 282 billion or US$393 billion.
The 2012 agreements, set to expire starting October 12, have not been drawn but have provided assurance that the IMF has adequate resources to meet potential needs.
Access to the bilateral borrowing will be governed by a new framework approved by the IMF’s Executive Board in August 2016 that will replace the framework agreed in 2012.

The new framework retains key modalities of the existing borrowing framework.
It includes a new multilateral voting structure that gives creditors a formal say in any future activation of the bilateral borrowing agreements.
The new agreements will have a common maximum term of end-2020, with an initial term to end-2019 extendable for a further year with creditors’ consents.
Agreements under the new framework will be submitted to the Executive Board for approval once they are concluded.

Media relations: IMF Communications Department, Press Officer: Andrew Kanyegirire, Phone: +1 202 623-7100, Email: MEDIA@IMF.org

IMF Members Commit US$340 billion in Bilateral Borrowing to Maintain the IMF’s Lending Capacity (Press Release No. 16/447, October 7, 2016).