Total pledges by IMF members under 2016 bilateral borrowing agreements reach $400bn

 

 

SINCE the Annual Meetings in October 2016, further progress has been made in securing commitments to provide bilateral borrowed resources under the IMF’s 2016 borrowing framework.
The IMF has received additional commitments of about SDR 40 billion from nine members, bringing total commitments to about SDR 300 billion (US$400 billion) from 35 members. Under these commitments, 20 borrowing agreements for a total of about SDR 211 billion are now effective with maximum terms through end-2020.
In welcoming these commitments, Ms. Christine Lagarde, IMF Managing Director, said: “I am encouraged by the commitments received from the membership to provide bilateral resources under the new borrowing framework. Bilateral borrowing constitutes the Fund’s important third line of defense after quotas and the New Arrangements to Borrow (NAB). These commitments will preserve the overall lending capacity of the IMF and provide confidence that the Fund will continue to be able to address the needs of our membership.”
Twenty-five members of IMF had earlier committed a total of $340 billion in bilateral borrowed resources.
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 when, in response to the global financial crisis, the membership decided to supplement IMF resources through bilateral borrowing agreements.