Press Release: IMF Signs US$10 Billion Note Purchase Agreement with Brazil
IMF News, January 22, 2010
Source details
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- Press Release: IMF Signs US$10 Billion Note Purchase Agreement with Brazil
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Bibliographic details
- Published: January 22, 2010
Agreement summary
- Press Release No. 10/14
- Date: January 22, 2010
- The International Monetary Fund (IMF) and Brazil 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).
Purpose and impact
- Provides Brazil with a safe investment instrument.
- Boosts the Fund’s capacity to help its members to weather the global financial crisis.
- The Fund can add these resources to those already available through agreements signed with other members.
- These increases in Fund resources were requested in April 2009 by G-20 leaders and the International Monetary and Financial Committee (IMFC).
Key figures and dates
- US$10 billion — maximum amount Brazil would purchase.
- Up to two years — duration of the purchase period.
- July 1, 2009 — Executive Board endorsement of the framework for issuing notes to the official sector.
- April 2009 — timing of the request by G-20 leaders and the IMFC for an increase in Fund resources.
Source: Press Release No. 10/14, International Monetary Fund, January 22, 2010.