Imf Bilateral Agreements
 This press release was updated on 13 September 2018 to reflect the entry into force of the Agreement with the Czech Republic (Czech National Bank) on 12 September 2018. Thus, 40 agreements are now in force. In place of these agreements, the Executive Board adopted in March 2020 a framework for a new cycle of bilateral borrowing. The new framework broadly aligns with the one agreed in 2016 for the current BBAs. The new BBAs will enter into force from 1 January 2021 and will have an initial duration of three years until the end of 2023, which, with the agreement of the creditors, can be extended for a further year until the end of 2024. WASHINGTON, 31. March (Reuters) — The International Monetary Fund said on Tuesday that its board of directors approved a new three-year framework of bilateral credit agreements guaranteeing the maintenance of its $1 trillion full credit capacity, as member countries battle pressures from the outbreak of the coronavirus. Total commitments under the 2016 bond framework amount to about SDS 316 billion ($450 billion) from 40 members, including all 35 members who pledged bilateral funds to the IMF under the 2012 bond framework and 5 new creditors. In line with these commitments, the IMF Executive Board approved loan agreements with the 40 creditors, 39 of which are now in force .
The resources available under effective agreements amount to approximately DDS 314 billion. The financial framework for 2016 has a maximum duration until the end of 2020. Bilateral resources are a third line of defence, after a considerable depletion of quota and NAB resources. In this context, at the end of August 2016, the Executive Board agreed to maintain access to new bilateral credit under a new framework (the 2016 Growth Agreements) which is closely based on the terms of the 2012 credit line and provides that creditors represent 85% of the total amount of the loan promised under the new agreements, for activation. Over the past decade, the IMF has concluded several rounds of bilateral credit agreements to supplement its quota and NAB resources and to meet the potential financing needs of its members. Given the continuing uncertainty in the global economy, membership committed in 2016 to maintaining access to bilateral credit as a third line of defence (after emerging market and NAB resources) and within a revised governance framework with an initial duration until the end of 2019, which can be extended for a further year by the Board of Directors and with the agreement of creditors. The overall commitments of 40 members under the 2016 financing framework amount to about SDRs 318 billion ($433 billion) at exchange rates at the end of September 2019. With the 2016 Arrangements to Borrow, we aim to maintain to a large extent access to bilateral loans made available under the 2012 Arrangements, while gaining new participants in order to create confidence that the Fund has the resources available to meet the needs of members. G20 Heads of State and Government support this objective of maintaining the IMF‘s current lending capacity, and the new line of credit approved by the Executive Board in August 2016 has been instrumental in achieving this objective. “We assume that if new agreements are reached in the coming months, we will be able to use a wider range of lenders.
The Fund highly appreciates the spirit of cooperation shown by Japan, Canada and Norway in ensuring that the Fund has sufficient resources to provide effective balance of payments assistance during the current global economic and financial crisis, and looks forward to the early adoption of supplementary credit agreements.…