Press Release No. 09/352

Press Release: IMF Signs €4 Billion Borrowing Agreement with Spain

October 5, 2009

The International Monetary Fund (IMF) and Spain have signed an agreement to provide the Fund with up to €4.14 billion (about US$6 billion). The agreement, which is valid for up to four years, is part of a commitment made by the European Union in March 2009 to contribute up to €75 billion (then equal to about US$100 billion) to support the IMF’s lending capacity (See Press Release No. 09/82). The European Union has since committed an additional €50 billion (about US$73 billion) to the Fund’s expanded New Arrangements to Borrow (see Press Release No. 09/298).

The signing of the agreement with Spain means the Fund can now add these resources to those already available through borrowing agreements signed with other members. These agreements contribute toward an increase in Fund resources that was requested in April 2009 by G-20 leaders and the International Monetary and Financial Committee in order to provide timely and effective balance of payments assistance to its members in the current crisis.

Useful links:

Agreements bolstering lending capacity:
http://www.imf.org/external/np/exr/faq/contribution.htm

Press Release 09/82 on European Union financial support for the IMF:
http://www.imf.org/external/np/sec/pr/2009/pr0982.htm

IMFC Communiqué, April 25, 2009:
http://www.imf.org/external/np/sec/pr/2009/pr09139.htm

April 2009 G-20 London Summit final Communiqué:
http://www.londonsummit.gov.uk/resources/en/news/15766232/communique-020409