IMF begins drawing on the borrowing agreement with Norges Bank

International Monetary Fund Headquarters in Washington, D.C.

International Monetary Fund Headquarters in Washington, D.C.

On 30 July, the IMF was to make its first drawing on the borrowing agreement with Norges Bank. In addition, the IMF will draw on the agreements with Japan and Canada. The drawing on Norges Bank amounts to SDR 59.4 million (NOK 600 million).

The International Monetary Fund (IMF) issued the following statement today regarding its use of bilateral borrowing agreements: “The IMF for the first time today used resources made available by members under bilateral borrowing agreements to supplement its quota resources that the Fund has entered into as part of its program to increase its lending capacity by US$250 billion in the short term. At this point we are drawing on agreements as follows: the Government of Japan (SDR 1.287 billion), Government of Canada (SDR 128.7 million), and Norges Bank (SDR 59.4 million).

“We expect to have a broader pool of lenders to draw upon as new agreements are finalized over the next few months. The Fund greatly appreciates the cooperative spirit that Japan, Canada and Norway have shown in ensuring that the Fund has adequate resources to be able to provide effective balance of payments assistance during the current global economic and financial crisis and look forward to additional borrowing arrangements being in place shortly. The Fund’s capacity to make new loan commitments remains strong by historical standards at about SDR 92 billion and additional borrowing will further strengthen the Fund’s lending capacity.”

Source: imf.org

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