Press Release No. 98/57

Press Release: IMF’s New Arrangements to Borrow Enter into Force

November 19, 1998

With the adherence of the United States and Germany, the New Arrangements to Borrow (NAB), approved by the Executive Board of the International Monetary Fund (IMF) on January 27, 1997 (see Press Release No. 97/5), became effective on November 17, 1998. The NAB are a set of credit arrangements between the IMF and 25 members and institutions to provide supplementary resources to the IMF to forestall or cope with an impairment of the international monetary system or to deal with an exceptional situation that poses a threat to the stability of that system.

The NAB do not replace the existing General Arrangements to Borrow (GAB), which remain in force. The total amount of resources available to the IMF under the NAB and GAB combined will be up to SDR 34 billion (about US$ 48 billion), double the amount available under the GAB alone. By strengthening the IMF's ability to support the adjustment efforts of its members and to address their balance of payments difficulties, the NAB are an important element of the IMF's capacity to respond to potential systemic problems.

The NAB decision will be in effect for five years from November 17, 1998, and may be renewed.

The list of NAB participants and their credit arrangements is listed below.