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The terms of the 2016 Borrowing Agreements between the International Monetary Fund (IMF) and 40 members have now been extended through end-2020, following approval by the IMF Executive Board and consents from all 40 creditors to a one-year extension.
The extension of terms preserves the IMF’s overall lending capacity of about US$1 trillion for an additional year and is a prudent step to provide confidence to members and markets that the Fund continues to have adequate resources to meet their potential needs. This was part of a broader package of actions on IMF resources and governance reform—including support for maintaining the its current resource envelope and considering a doubling of the New Arrangements to Borrow (NAB) and a further temporary round of bilateral borrowing beyond 2020— endorsed by the IMF membership at its recently concluded 2019 Annual Meetings in Washington DC.
The IMF has entered into several rounds of bilateral borrowing agreements over the past decade to supplement its quota and NAB resources and meet the potential financing needs of its members. In 2016, and in view of continued uncertainty in the global economy, the membership committed to maintain access to bilateral borrowing, as a third line of defense (after quota and NAB resources) and under a revised governance framework, with an initial term through the end of 2019, extendable for a further year by the Executive Board and with creditors’ consents.
