Since the onset of the global financial crisis, the IMF has concluded several rounds of bilateral credit agreements (BBA) to ensure that it can meet the financing needs of its members. The BBAs that were agreed in 2016 from 2016 have been extended by an additional year in 2019 and will continue until the end of 2020. The terms of the 2016 credit contracts between the IMF and 40 members are now in effect until the end of 2020, after the IMF`s board of directors agrees and the 40 creditors agree to extend the terms of their respective agreements by one year. NAB currently has about $250 billion, but IMF member countries agreed last year to double that amount to $500 billion. Bilateral credit contracts would represent the remainder of the IMF`s $100 trillion of borrowing capacity. Over the past decade, the IMF has signed several bilateral credit contracts to supplement its quota resources and to cover the potential financing needs of its members. Given the continuing uncertainty in the global economy, members committed in 2016 to maintaining access to bilateral credit as a third line of defence (in terms of quotas and NAB funds) and as part of a revised governance framework from a first deadline to the end of 2019, renewable for an additional year by the Executive Board and with the agreement of creditors. At the end of September 2019, the total commitments of 40 members under the 2016 loan amounted to approximately SDR 318 billion ($433 billion). Bilateral resources are a third line of defence after the substantial depletion of NAB`s quotas and resources. In this context, at the end of August 2016, the Board of Directors approved continued access to new bilateral loans under a new framework (the 2016 credit contracts) that draws closely on the terms of the 2012 line of credit and provides that creditors who issue 85% of the total amount of the loan under the new agreements vote in favour of activation. With the 2016 credit contracts, we are striving to maintain access to bilateral bond funds from the 2012 agreements, while gaining new participants, in order to build confidence that the Fund has the resources available to meet the needs of members.
G20 leaders support this goal of maintaining the IMF`s current lending capacity, and the new line of credit approved by the Executive Board in August 2016 was decisive in achieving this goal. WASHINGTON (Reuters) – The International Monetary Fund said on Tuesday that its board of directors had approved a new three-year framework for bilateral credit contracts to ensure it maintains its full $1 trillion borrowing capacity as member countries fight the coronavirus pandemic. All individual agreements are in line with the substantive essential provisions adopted by the Board of Directors in August 2016.