Selected Decisions and Selected Documents of the IMF, Thirty- Eighth Issue -- Guidelines for Borrowing by the Fund

Prepared by the Legal Department of the IMF
As updated as of February 29, 2016

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Quota subscriptions are and should remain the basic source of the Fund’s financing. However, on a temporary basis, borrowing by the Fund can provide an important supplement to its resources. The confidence of present and potential creditors in the Fund will depend not only on the prudence and soundness of its financial ­policies but also on the effective performance of its various responsibilities, including, in particular, its success in promoting crisis prevention, adjustment, sustainable growth, and financial stability. Against this background, the following guidelines shall apply for borrowing by the Fund.

  • 1. Fund borrowing shall remain subject to a process of continuous monitoring by the Executive Board in the light of the above considerations. For this purpose, the Executive Board will regularly review the Fund’s liquidity and financial position, taking into account all relevant factors of a quantitative and qualitative nature.

  • 2. The Executive Board may establish at any time, in the context of circumstances prevailing at that time, limits expressed in terms of the total of Fund quotas above which the total of outstanding borrowing plus unused credit lines would not be permitted to rise.

  • 3. Any limits that may be adopted pursuant to paragraph 2 above are not to be understood, at any time, as targets for borrowing by the Fund.

  • 4.

    • (a) Bilateral borrowing agreements entered into by the Fund after June 15, 2012 in the context of the 2012 exercise to ensure adequacy of the Fund’s resources (the “2012 Borrowing Agreements”) shall be activated for use by the Fund under the terms of such agreements only after the Managing Director has notified the Executive Board that the Forward Commitment Capacity of the Fund as defined in Decision No. 14906-(11/38), adopted April 20, 2011, taking into account all available uncommitted resources under the New Arrangements to Borrow (the “modified FCC”), is at or below SDR 100 billion (the “activation threshold”); provided however that the Managing Director shall not provide such notification to the Executive Board unless the New Arrangements to Borrow (“NAB”) is activated as of the time of the notification, or there are no available uncommitted resources under the NAB as of that time.

    • (b) If the 2012 Borrowing Agreements are activated pursuant to paragraph 4(a) above, they shall automatically be deactivated during any period in which the NAB is not activated, unless there were to be no available uncommitted resources under the NAB during that period. If the 2012 Borrowing Agreements are deactivated pursuant to the preceding sentence, they shall automatically be activated once again if either the NAB is activated, or if there ceases to be available uncommitted resources under the NAB. Separately, the Executive Board may decide that the 2012 Borrowing Agreements shall be deactivated based on a determination that the modified FCC (excluding amounts available under the 2012 Borrowing Agreements) has risen above the activation threshold and is likely to remain above that threshold for a sustained period. If, subsequent to a determination by the Executive Board pursuant to the preceding sentence, the modified FCC were to fall below the activation threshold, the provisions of paragraph 4(a) will apply.

  • 5. The Fund is expected to use any quota increases under the 15th General Review of Quotas to reduce and, depending on the size of the quota increases and the Fund’s liquidity, eliminate its reliance on bilateral borrowing agreements.

  • 6. In the context of approval of the Financial Transactions Plan, the Executive Board shall determine (a) the appropriate mix between borrowed resources and quota resources, and (b) the appropriate amounts to be drawn across different sources of borrowed resources. In making these determinations, the Fund shall take into account the Fund’s liquidity needs and the expected availability of borrowed and quota resources, among other relevant considerations.

  • 7. The Fund shall aim to maintain equitable burden sharing among lenders in accordance with the burden sharing rules that are applicable to each source of borrowed resources under the relevant agreements and decisions applicable to that source.

  • 8. The Executive Board shall review these guidelines before October 12, 2016.

Decision No. 9862-(91/156),

November 15, 1991,

as amended by Decision Nos. 14367-(09/65), June 29, 2009,

15176-(12/58), June 15, 2012, and


July 13, 2015

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