IMF to draw on loan agreement with Norway central bank

Dominique Strauss-Kahn is the 10th managing director of the IMF.

Dominique Strauss-Kahn is the 10th managing director of the IMF.

OSLO, July 29 (Reuters) – The International Monetary Fund will begin drawing on bilateral loan agreements with Norway, Japan and Canada, Norges Bank said in a statement on Wednesday.

The announcement came in the wake of IMF approval for a $3.3 billion loan tranche to Ukraine — one of the many countries requiring IMF funds to cope with the global economic crisis.

Norges Bank said the IMF would draw 59.4 million SDR (special drawing rights) from Norway, or about 600 million crowns ($96.43 million) on July 30.

The IMF will also draw on Japan in the amount of 1.287 billion SDR and tap Canada for 128.7 million SDR.

The global lender has increased its lending capacity by $250 billion through bilateral borrowing agreements with states.

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