Press Release No. 14/417

Press Release: IMF Executive Board Approves One-year Extension of the 2012 Borrowing Agreements

September 10, 2014

On September 8, the Executive Board of the International Monetary Fund (IMF) approved a one-year extension of the 2012 Borrowing Agreements. These agreements have played a key role in ensuring that the IMF has adequate resources to meet members’ potential needs in the event that tail risks were to materialize.

In 2012, a number of member countries committed to increase IMF resources through bilateral borrowing agreements. Following Executive Board approval of the modalities for the 2012 Borrowing Agreements, 35 agreements for a total of about US$441 billion (SDR 288 billion) have been approved by the Executive Board, of which 32 agreements are now effective for a total of US$425 billion (SDR 277 billion). The 2012 Borrowing Agreements are designed as a second line of defense after quota and New Arrangements to Borrow (NAB) resources and have so far not been activated for use in financing operations. Each agreement has an initial two-year term, and a maximum term of four years.

After this decision, which followed consultations with lenders, the initial two-year term of the agreements will be extended by one year.

For background information see:

Press Release: IMF Managing Director Christine Lagarde Welcomes Additional Pledges to Increase IMF Resources, Bringing Total Commitments to US$456 Billion

Press Release: IMF Managing Director Christine Lagarde Welcomes Pledges from Algeria and Brunei Darussalam to Boost Fund Resources

Press Release: IMF Executive Board Approves Modalities for Bilateral Borrowing to Boost IMF Resources