Imf Borrowing Agreements

Bilateral borrowing agreements in 2012 accounted for almost one-third of the Fund`s total lending capacity. These agreements, totalling SDR 282 billion, or $393 billion at exchange rates effective September 30, 2016, had a maximum duration of four years and expired in October 2016. With the expiry of the duration of some agreements, the funds available under the bilateral loan would be lost. Washington, D.C. – The IMF Executive Committee yesterday approved a framework for a new round of bilateral imf borrowing from January 1, 2021, to implement the bilateral credit contracts (BBAs) currently in effect until the end of December 2020. The framework is, on the whole, the same as that agreed in 2016 for the current BBA. The new BbAs have an initial duration of three years until the end of 2023, which can be extended by one year until the end of 2024. These new agreements will help maintain the IMF`s $1 trillion credit capacity over the next few years and ensure its ability to meet the needs of members. In March 2020, the Board of Directors approved a new round of bilateral borrowing to implement these agreements. The new framework is broadly in line with what was agreed in 2016 for the current BBA. The new BBA will come into force on 1 January 2021 and will have an initial term of three years until the end of 2023, renewable for an additional year until the end of 2024, with the agreement of the creditors. Information on credit contracts with different countries can be found in the table below, as well as the IMF financial data monitoring tool and the various IMF pages.

At the request of a member holding loans or bonds on the Fund under bilateral credit agreements concluded by the Fund prior to March 11, 2011, the Executive Director, acting under the loan agreement of such a participant, calls to finance the repayment of these receivables. Similarly, at the request of the subscriber concerned, telephone calls to a participant who is a participating institution are asked to repay the debts of the member, the official institution or the tax agency designated by the central bank or another tax agency designated by the member, or a member member member, to repay these claims of the central bank or another tax agency designated by the member. Notwithstanding paragraph 11, point a), the maturity date for receivables resulting from credit agreements resulting from these appeals is the expiry date of the right to the bilateral loan contract for which the invitation was made. In the event of an economic crisis, countries often need financial resources to help them overcome their balance-of-payments problems.