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IMF Executive Board Approves Framework for New Bilateral Borrowing Agreements

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Via IMF (Den Internationale Valutafond)

IMF Executive Board Approves Framework for New Bilateral Borrowing Agreements




 




March 31, 2020











  • The IMF’s Executive Board has approved a framework for a new round of bilateral borrowing, to succeed agreements currently in place through end-2020
  • This action is part of a broader package on IMF resources and governance reform that will help maintain the IMF’s lending capacity of $1 trillion
  • These are critical steps to ensure that the IMF can support its membership through the global pandemic now unfolding and beyond.

Washington, DC – The IMF Executive Board approved yesterday a framework for a new round of
bilateral borrowing by the IMF from January 1, 2021, to succeed the current
bilateral borrowing agreements (BBAs)

currently in place through end-December 2020

. The framework is broadly the same as that agreed in 2016 for the current
BBAs. The new BBAs will have an initial term of three years through
end-2023, which is extendable by one more year through end-2024. These new
agreements will help maintain the IMF’s lending capacity of US$1 trillion
for the next few years, ensuring its ability to respond to members’ needs.

The BBAs are the IMF’s third line of defense after quotas and the New
Arrangements to Borrow (NAB). Today’s Executive Board decision is part of a
broader package on IMF resources and governance reform

endorsed by the IMF membership

during the 2019 Annual Meetings, and builds on

the Board’s January 2020 approval

of a doubling of the NAB and guidance on quota reforms.

The new BBAs and the doubling of the NAB are expected to take effect on
January 1, 2021, subject to timely approvals by creditor member countries
and their institutions. These are critical steps to ensure that the IMF can
support its membership through the global pandemic now unfolding and
beyond.


IMF Communications Department
MEDIA RELATIONS

PRESS OFFICER: Wafa Amr WAmr@imf.org

Phone: +1 202 623-7100Email: MEDIA@IMF.org

@IMFSpokesperson








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