Imf Bilateral Agreements

[1] 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 [1].

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.…