BUSINESS
06/15/2012 04:54 pm ET Updated Aug 15, 2012

IMF Says It Will Use $430 Billion Fund To Fight Global Crisis Only After It Has Tapped Existing Funds

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.

(Reporting By Stella Dawson; Editing by Chizu Nomiyama)