IMF Approves Withdrawing US$430 Bln From External Resources

The International Monetary Fund agreed on Friday that it would only draw on the US$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 US$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, according to Reuters.

“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.