YOU’RE READING THE SIMON ATEBA NEWS
-
THE BEST NIGERIAN NEWSPAPER
-
YOU’RE READING THE SIMON ATEBA NEWS
-
WE’RE EXCEPTIONAL!
-
WE’RE ENTERTAINING!
-
WE’RE TRUTHFUL, OBJECTIVE,HONEST, RELIABLE
-
OUR PUBLISHER IS KIND, FAIR BUT FEARLESS
-
WE’RE THE SIMON ATEBA NEWS
Twenty-five members of the International Monetary Fund (IMF) have committed a $340 billion in bilateral borrowed resources with maximum terms through end-2020, IMF Managing Director, Ms. Christine Lagarde announced on Friday.
“These commitments will preserve the overall lending capacity of the IMF and provide confidence that the Fund will continue to address the needs of our membership. I am heartened that so many countries have already made a commitment, and I would encourage others to join this important international cooperative effort,” Ms. Lagarde said in Washington DC while addressing the board of governors at the 2016 IMF/World Bank meetings.
The meetings bring together experts, bankers, policymakers, lenders, as well as journalists from all over the world to proffer solutions to the world’s greatest challenges.
Access to the bilateral borrowing will be governed by a new framework approved by the IMF’s Executive Board in August 2016 that will replace the framework agreed in 2012 when, in response to the global financial crisis, the membership decided to supplement IMF resources through bilateral borrowing agreements.
There are currently 35 agreements with creditors under the 2012 Borrowing Agreements for a total of $393 billion. These agreements, set to expire starting October 12, have not been drawn but have played a critical role as a third line of defense, after quotas and the New Arrangements to Borrow (NAB), in providing assurance to members and markets that the IMF has adequate resources to meet potential needs.
The new framework retains key modalities of the existing borrowing framework and includes a new multilateral voting structure that gives creditors a formal say in any future activation of the bilateral borrowing agreements. The new agreements will have a common maximum term of end-2020, with an initial term to end-2019 extendable for a further year with creditors’ consents. The agreements under the new framework will continue to serve as a third line of defense after quotas and the NAB.
Agreements under the new framework will be submitted to the Executive Board for approval once they are concluded.