Press Release: IMF’s New Arrangements to Borrow Enter into Force
IMF News, November 19, 1998
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Bibliographic details
- Published: November 19, 1998
Overview
- Press Release No. 98/57 dated November 19, 1998.
- With the adherence of the United States and Germany, the New Arrangements to Borrow (NAB), approved by the Executive Board on January 27, 1997 (see Press Release No. 97/5), became effective on November 17, 1998.
- The NAB are a set of credit arrangements between the IMF and 25 members and institutions to provide supplementary resources to the IMF.
Purpose and scope of the NAB
- Designed 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.
- Intended to strengthen the IMF's ability to support the adjustment efforts of its members and to address their balance of payments difficulties.
- The NAB are an important element of the IMF's capacity to respond to potential systemic problems.
Relationship with the General Arrangements to Borrow (GAB)
- The NAB do not replace the existing General Arrangements to Borrow (GAB), which remain in force.
- The total amount of resources available to the IMF under the NAB and GAB combined will be up to SDR 34 billion (about US$ 48 billion), double the amount available under the GAB alone.
Duration and renewal
- The NAB decision will be in effect for five years from November 17, 1998, and may be renewed.
Participants and Amount of Credit Arrangements under the NAB
- The list of NAB participants and their credit arrangements (amounts in SDR millions) is reported as follows:
- Australia: 810
- Austria: 412
- Belgium*: 967
- Canada*: 1,396
- Denmark: 371
- Deutsche Bundesbank*: 3,557
- Finland: 340
- France*: 2,577
- Hong Kong Monetary Authority
- Italy*: 1,772
- Japan*
- Korea
- Kuwait: 345
- Luxembourg
- Malaysia
- Netherlands*: 1,316
- Norway: 383
- Saudi Arabia*: 1,780
- Singapore
- Spain: 672
- Sveriges Riksbank*: 859
- Swiss National Bank*: 1,557
- Thailand
- United Kingdom*
- United States of America*: 6,712
- Total: 34,0001
- Participants marked with an asterisk (*) are "Also a participant in, or associated with, the GAB."
Exchange rate / footnote
- On November 17, 1998 SDR 1 equaled US$1.39731.
Source: Press Release No. 98/57, "IMF’s New Arrangements to Borrow Enter into Force" (November 19, 1998).