While the coronavirus epidemic was ravaging the globe, the IMF quietly doubled the amount of its funding. The crisis has created wonderful lending opportunities that IMF plans to realize in the next few years. Europe is said to borrow at least $100 billion due to the economic devastation of COVID 19.<\/p>\n
On march 31st, The IMF Executive Board approved yesterday a framework for a new round of bilateral borrowing by the IMF from January 1, 2021, to succeed the current bilateral borrowing agreements (BBAs)\u00a0currently in place through end-December 2020\u00a0. The framework is broadly the same as that agreed in 2016 for the current BBAs. The new BBAs will have an initial term of three years through end-2023, which is extendable by one more year through end-2024. These new agreements will help maintain the IMF\u2019s lending capacity of US$1 trillion for the next few years, ensuring its ability to respond to members\u2019 needs.<\/p>\n
The BBAs are the IMF\u2019s third line of defense after quotas and the New Arrangements to Borrow (NAB). Today\u2019s Executive Board decision is part of a broader package on IMF resources and governance reform\u00a0endorsed by the IMF membership\u00a0during the 2019 Annual Meetings, and builds on\u00a0the Board\u2019s January 2020 approval\u00a0of a doubling of the NAB and guidance on quota reforms.<\/p>\n
The new BBAs and the doubling of the NAB are expected to take effect on January 1, 2021, subject to timely approvals by creditor member countries and their institutions. These are critical steps to ensure that the IMF can support its membership through the global pandemic now unfolding and beyond.<\/p>\n
Back On January 16th, IMF doubled the borrowing arrangements.\u00a0On January 16, 2020, the IMF Executive Board approved a doubling of the New Arrangements to Borrow (NAB) and proposed to the Board of Governors a resolution concluding the 15th<\/sup>\u00a0General Review of Quotas (15\u00a0th<\/sup>\u00a0Review) and providing guidance on the 16th<\/sup>\u00a0General Review of Quotas (16th<\/sup>\u00a0Review). These are important decisions toward implementing the package on IMF resources and governance reform\u00a0endorsed by the IMF membership\u00a0during the 2019 Annual Meetings. On October 18, 2019, the IMFC reaffirmed its commitment to a strong, quota-based, and adequately resourced IMF to preserve its role at the center of the global financial safety net and looked forward to consideration of a doubling of the New Arrangements to Borrow (NAB) and a further temporary round of bilateral borrowing beyond 2020. It also called on the Executive Board to complete its work on the 15\u00a0th<\/sup>\u00a0Review and committed to continuing the process of IMF governance reform under the 16th<\/sup>\u00a0Review.<\/p>\n \u201cThese decisions by the IMF\u2019s Executive Board represent a milestone in implementing the package of actions on resources and governance reform that were endorsed by the membership at the Annual Meetings. They will help secure the Fund\u2019s US$1 trillion in lending resources and its crucial role at the center of the global financial safety net,\u201d IMF Managing Director Kristalina Georgieva said after the Executive Board\u2019s decisions.<\/p>\n \u201cThis is another strong signal of the membership\u2019s commitment to ensure that the IMF will continue to have sufficient resources to provide full confidence that it can adequately support its membership, and that governance reform will continue under the 16th General Review of Quotas,\u201d she said.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" While the coronavirus epidemic was ravaging the globe, the IMF quietly doubled the amount of its funding. The crisis has created wonderful lending opportunities that IMF plans to realize in the next few years. Europe is said to borrow at least $100 billion due to the economic devastation of COVID 19. On march 31st, The […]<\/p>\n","protected":false},"author":1,"featured_media":28,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/flamestorm.com\/main\/wp-json\/wp\/v2\/posts\/26"}],"collection":[{"href":"http:\/\/flamestorm.com\/main\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/flamestorm.com\/main\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/flamestorm.com\/main\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/flamestorm.com\/main\/wp-json\/wp\/v2\/comments?post=26"}],"version-history":[{"count":1,"href":"http:\/\/flamestorm.com\/main\/wp-json\/wp\/v2\/posts\/26\/revisions"}],"predecessor-version":[{"id":27,"href":"http:\/\/flamestorm.com\/main\/wp-json\/wp\/v2\/posts\/26\/revisions\/27"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/flamestorm.com\/main\/wp-json\/wp\/v2\/media\/28"}],"wp:attachment":[{"href":"http:\/\/flamestorm.com\/main\/wp-json\/wp\/v2\/media?parent=26"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/flamestorm.com\/main\/wp-json\/wp\/v2\/categories?post=26"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/flamestorm.com\/main\/wp-json\/wp\/v2\/tags?post=26"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}