IMF Standing Borrowing Arrangements

While quota subscriptions of member countries are the IMFs main source of financing, the Fund can supplement its quota resources through borrowing if it believes that they might fall short of members needs. Through the New Arrangements to Borrow (NAB), the IMFs main backstop for quota resources, a number of member countries and institutions stand ready to lend additional resources to the IMF. The NAB is a set of credit arrangements between the IMF and a group of member countries and institutions, including a number of emerging market countries. The NAB is the facility of first and principal recourse in circumstances in which the IMF needs to supplement its quota resources. Once activated, it can provide supplementary resources of up to SDR 370.0 billion (about $579 billion) to the IMF. The expanded NAB came into effect on March 11, 2011, and was activated shortly after for a period of six months, in the amount of SDR 211 billion (about $330 billion). The NAB was most recently activated for the maximum period of six months commencing on October 1, 2011. The General Arrangements to Borrow (GAB) remains in force and can be used in limited cases.
NAB Participants and Credit Amounts1 Amount (SDR million) Current Participants Australia 4,370.41 Austria 3,579.24 Banco Central de Chile 1,360.00 Banco de Portugal 1,542.13 Bank of Israel 500.00 Belgium 7,861.85 Brazil 8,740.82 Canada 7,624.43 China 31,217.22 Cyprus 340.00 Danmarks Nationalbank 3,207.78 Deutsche Bundesbank 25,370.81 Finland 2,231.76 France 18,657.38 Greece 1,654.51 Hong Kong Monetary Authority 340.00 India 8,740.82 Ireland* 1,885.52 Italy 13,578.03 Japan 65,953.20 Korea 6,583.44 Kuwait 341.29 Luxembourg 970.59 Malaysia 340.00 Mexico 4,994.76 Netherlands 9,043.72 New Zealand 624.34 Norway 3,870.94 Philippines* 340.00 National Bank of Poland 2528.59 Russian Federation 8,740.82 Saudi Arabia 11,126.03 Singapore 1,276.52 South Africa 340.00 Spain 6,702.18 Sveriges Riksbank 4,439.74 Swiss National Bank 10,905.42 Thailand 340.00 United Kingdom 18,657.38 United States 69,074.27 ______________________________________ Total2 369,995.96
1 Credit arrangements are subject to a minimum of SDR 340 million. 2 Total may not equal sum of components due to rounding.

Decision to triple the IMFs lending resources by expanding the NAB

As a key part of efforts to overcome the global financial crisis, on April 2, 2009, the Group of Twenty industrialized and emerging market economies (G-20) agreed to increase the resources available to the IMF by up to $500 billion (which would triple the total pre-crisis lending resources of about $250 billion) to support growth in emerging market and developing countries. This broad goal was endorsed by the International Monetary and Financial Committee (IMFC) in its April 25, 2009 communiqu. This resource increase was made in two steps: first, through bilateral financing from IMF member countries; second, by incorporating this financing into

* Have yet to adhere to expanded NAB.

External Relations Department Washington, D.C. 20431 Telephone 202-623-7300 Fax 202-623-6278 URL: http://www.imf.org/external/np/exr/facts/gabnab.htm

-2an expanded and more flexible NAB. On September 25, 2009 the G-20 announced it had delivered on its promise to contribute over $500 billion to a renewed and expanded NAB. Currently, the Fund has sixteen active bilateral loan agreements worth about $204 billion and two active bilateral note purchase agreements for about $60 billion. For NAB participants with bilateral credit lines, these credit lines do not add to the total resources available to the Fund under their NAB credit arrangements.

How it works
The NAB is a set of credit arrangements between the IMF and 40 member countries and institutions (once all new participants under the expanded NAB have adhered to it). It is the facility of first and principal recourse in circumstances in which the IMF needs to supplement its resources. The original NAB was proposed at the 1995 G-7 Halifax Summit following the Mexican financial crisis. Growing concern that substantially more resources might be needed to respond to future financial crises prompted participants in the Summit to call on the G-10 and other financially strong countries to develop financing arrangements that would double the amount available to the IMF under the GAB. In January 1997, the IMFs Executive Board adopted a decision establishing the NAB, which became effective in November 1998. Following the 2008 global financial crisis, the IMFC endorsed in April 2009 the G-20 call to increase the resources available to the IMF, including through an expanded and more flexible NAB. The amended NAB became effective on March 11, 2011, increasing the maximum amount of resources available to the IMF under the NAB to SDR 367.5 billion (about $576 billion), from the SDR 34 billion under the original NAB. To make the expanded NAB a more effective tool of crisis prevention and management, the loan-by-loan activation under the original NAB was replaced by the establishment of general activation periods of up to six months, subject to maximum level of commitments specified in each proposal for the establishment of an activation period, to fund any GRA financing needs under arrangements or outright purchases approved during the activation period. In addition, new participants can be admitted at any time with the agreement of participants representing 85 percent of total credit arrangements. On November 15, 2011, the National Bank of Poland joined the NAB, bringing its total size to SDR 370.0 billion (about $579 billion).

How the NAB is used

Under the NAB, a proposal by the IMFs Managing Director for the establishment of an activation period can become effective only if it is accepted by participants representing 85 percent of total credit arrangements of participants eligible to vote and is then approved by the IMFs Executive Board. The NAB has been activated three times. First, to finance a Stand-by Arrangement for Brazil in December 1998, when the IMF called on funding of SDR 9.1 billion, of which SDR 2.9 billion was used. Second, on April 1, 2011 the Executive Board formally completed the process of activation, following the effectiveness of the expanded NAB on March 11, 2011 and a vote by NAB participants after going through their necessary internal procedures. The NAB was activated for six months in the amount of SDR 211 billion (about $339 billion) to increase the financing available to the Fund. The NAB was most recently activated for the maximum period of six months commencing on October 1, 2011.

-3The NAB has been renewed twice, most recently in November 2007. The next review of the NAB is to take place by November 2011, and will take into account the proposed increases in quotas under the Fourteenth General Review.

GAB
The GAB enables the IMF to borrow specified amounts of currencies from 11 industrial countries (or their central banks), under certain circumstances. Specifically, a proposal for calls under the GAB may only be made in case a proposal for the establishment of an activation period under the NAB is not accepted by NAB participants. The potential amount of credit available to the IMF under the GAB totals SDR 17 billion (about $27 billion), with an GAB Participants and Credit Amounts additional SDR 1.5 billion available Original GAB Enlarged GAB under an associated arrangement (1962 -1983) (1983 2008) with Saudi Arabia. In addition, the resources available to the Fund Amount Amount 1 under the NAB and the GAB Participant (SDR million ) (SDR million) together amount to Belgium 143 595 SDR 367.5 billion. Canada 165 893 The GAB was established in 1962 and has been expanded in 1983 to SDR 17 billion, from about SDR 6 billion. It has been activated ten times, the last time 1998. The GAB has been renewed ten times, most recently in November 2007 for a five year period from December 2008.
Deutsche Bundesbank France Italy 2 Japan Netherlands Sveriges Riksbank Swiss National Bank United Kingdom United States Total
1 2

1,476 395 235 1,161 244 79 565 1,883 6,344

2,380 1,700 1,105 2,125 850 383 1,020 1,700 4,250 17,000 1,500

Saudi Arabia (associated credit arrangement)

SDR equivalent as at October 30, 1982 250,000 million yen entered into effect on November 23, 1976

Note: Total may not equal sum of components due to rounding.

THIS INFORMATION IS CURRENT AS OF NOVEMBER 2011