June 15, 2012
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The Executive Board of the International Monetary Fund (IMF) today approved the modalities for bilateral borrowing, which will allow the Fund to significantly boost its available resources to address the global economic crisis.
During the IMF’s Spring Meetings in April 2012, member countries pledged to increase the IMF’s resources by over US$430 billion (see Press Release No. 12/147). Today’s decision by the Executive Board establishes the modalities for member countries to make these resources available through bilateral loan or note purchase agreements between each creditor country, or its central bank, and the IMF. The modalities are similar to those used for bilateral borrowing by the Fund in 2009/10 and for the expanded New Arrangements to Borrow (NAB). They envisage that the IMF would only draw on the new agreements after it has committed most of its existing quota and NAB resources. Members’ claims on the IMF under the agreements can be counted as part of their international reserves, and the IMF will repay any amounts drawn with interest.
For background information see:
