WASHINGTON: With the support by creditors for a doubling of the IMF’s New Arrangements to Borrow (NAB) and a new round of new bilateral borrowing agreements (BBAs), the International Monetary Fund (IMF) has maintained its lending capacity at around US$1 trillion for the coming years. This is of particular importance in the context of increased demand for IMF resources due to the COVID-19 pandemic and ongoing heightened risks.
Since the membership’s endorsement in 2019 of a package on IMF resources and governance reform, the IMF has worked closely with its creditor members.
The IMF’s New Arrangements to Borrow (NAB), the second line of defense after quota resources, have been strengthened. In January 2020, the Executive Board approved a NAB reform that included a doubling of the size of the NAB and setting a new NAB period through 2025. Creditors have since provided the necessary consents and this reform took effect as targeted on January 1, 2021. Following the effectiveness of the reform, 38 NAB participants contribute an aggregate amount of SDR 361 billion (USD 521 billion) to the Fund’s resource envelope (Table 1).
In addition, work proceeded to maintain access to bilateral borrowing agreements (BBAs) as the third line of defense. On March 30, 2020, the Executive Board approved a framework for a new round of bilateral borrowing, to succeed agreements in place through end-2020. Within this framework, a new set of agreements beyond 2020 (2020 BBAs) have been introduced to replace the 2016 BBAs, which expired at end-2020. New bilateral borrowing agreements with 37 creditors for a total of SDR 128 billion (USD 185 billion) have become effective (Table 2). Agreements with a few other prospective 2020 BBA creditors are on track to become effective in the period ahead. The 2020 BBAs have an initial term of three years through end-2023 and may be extended for one further year.
Information on NAB credit amounts and bilateral borrowing agreements are available at respective country pages and through the IMF Financial Data Query Tool at the IMF website. The latest amounts will be reflected in the next reporting period.
1/ Where individual creditors consent to publication of their signed 2020 BBA, the text of the agreement is also being made available.
2/ Agreements pending completion of procedures needed for their effectiveness. Agreements with two additional creditors are not included in the table pending completion of domestic approvals.
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