WASHINGTON, June 15 (Reuters) - The International Monetary Fund agreed on Friday that it would only draw on the $430 billion in extra resources committed by member countries to fight the global economic crisis once it has tapped existing funds.
Twelve countries plus the euro area pledged over $430 billion in April to almost double the lending capacity of the IMF to secure global financial stability and recovery.
The Executive Board said the monies would be made available to the IMF in the form of bilateral loans or note purchase agreements. The loans can be counted as part of the lenders' international reserves and will be repaid with interest.
"They envisage that the IMF would only draw on the new agreements after it has committed most of its existing quota and NAB (New Agreement to Borrow) resources," the IMF said in a news release.
20 Years OfFreeJournalism
Your Support Fuels Our Mission
Your Support Fuels Our Mission
For two decades, HuffPost has been fearless, unflinching, and relentless in pursuit of the truth. Support our mission to keep us around for the next 20 — we can't do this without you.
We remain committed to providing you with the unflinching, fact-based journalism everyone deserves.
Thank you again for your support along the way. We’re truly grateful for readers like you! Your initial support helped get us here and bolstered our newsroom, which kept us strong during uncertain times. Now as we continue, we need your help more than ever. We hope you will join us once again.
We remain committed to providing you with the unflinching, fact-based journalism everyone deserves.
Thank you again for your support along the way. We’re truly grateful for readers like you! Your initial support helped get us here and bolstered our newsroom, which kept us strong during uncertain times. Now as we continue, we need your help more than ever. We hope you will join us once again.
Already contributed? Log in to hide these messages.
(Reporting By Stella Dawson; Editing by Chizu Nomiyama)
