IMF Prepares For Action: Signs Agreements With Three Countries Increasing Borrowing Capacity By $7.2 Billion, Expands Total Access To Over $500 Billion
Source: Zero Hedge
Late today, the IMF released details of three borrowing agreements signed between the organization and the National Banks of Belgium, Slovakia and Malta. The total amount between the three agreements provides the IMF with additional borrowing power of €5.3 billion. While the incremental capacity is not in itself material, it bears to keep in mind the full recourse the IMF has access to. As the press release notes: “The agreement is part of a commitment made by the European Union in March 2009 to contribute up to €75 billion (then equal to about US$100 billion) to support the IMF’s lending capacity (See Press Release No. 09/82). The European Union has since committed an additional €50 billion to the Fund’s expanded New Arrangements to Borrow (see Press Release No. 09/298).” In summary, with today’s expansions, the IMF now has access to just over $500 billion in firm commitments as part of the IMF’s April 2 agreement to triple its lending capacity to $750 billion.
As the IMF’s bail out role will soon achieve much greater prominence, we present the full listing of countries pledging support to the IMF. The US comprises roughly 20% of total backstop capital. In other words for every dollar the IMF provides to Greece, Portugal, Spain, Italy, Hungary, Bulgaria, Latvia, Ukraine, etc., American taxpayers will be on the hook for 20 cents.
Japan – $100 Billion
- IMF Signs US$100 Billion Borrowing Agreement with Japan (February 13, 2009)
- Borrowing Agreement with the Government of Japan
- IMF Lending: IMF Signs $100 Billion Borrowing Agreement With Japan
- IMF head Dominique Strauss-Kahn thanks Japan for $100 billion loan
European Union – $178 Billion
- IMF Signs €120 Million Borrowing Agreement with the Central Bank of Malta (February 12, 2010)
- IMF Signs Agreement to Borrow up to €4.74 Billion from the National Bank of Belgium (February 12, 2010)
- IMF Signs Agreement to Borrow up to €440 Million from the Slovak Republic (February 12, 2010)
- IMF Signs €1.06 Billion Borrowing Agreement with Banco de Portugal (November 30, 2009)
- IMF Signs €1.95 Billion Borrowing Agreement with the Danish Central Bank (November 4, 2009)
- IMF Signs €5.31 Billion Borrowing Agreement with De Nederlandsche Bank (October 5, 2009)
- IMF Signs €4 Billion Borrowing Agreement with Spain (October 5, 2009)
- IMF Signs €15 Billion Borrowing Agreement with Deutsche Bundesbank (September 22, 2009)
- IMF Signs €11 Billion Borrowing Agreement with France (September 4, 2009)
- Statement by IMF Managing Director Dominique Strauss-Kahn on the European Union’s Announcement of Additional Financial Support (September 4, 2009)
- IMF Signs US$15 Billion Borrowing Agreement with the United Kingdom (September 1, 2009)
- Statement by IMF Managing Director Dominique Strauss-Kahn on the European Union’s Announcement of Financial Support for the IMF (March 20, 2009)
Norway – $4.5 Billion
- IMF Signs US$4.5 Billion Borrowing Agreement with Norway’s Central Bank
(July 6, 2009) - Statement by IMF Managing Director Dominique Strauss-Kahn on Norway’s Announcement of Possible Financial Support for the IMF of up to about
US$4.5 billion (March 28, 2009)
Canada – $10 Billion
- IMF Signs US$10 Billion Borrowing Agreement with Government of Canada (July 8, 2009)
- Statement by IMF Managing Director Dominique Strauss-Kahn on Canada’s Announcement of Financial Support for the IMF of about US$10 billion (April 3, 2009)
Switzerland – $10 Billion
- Statement by IMF Managing Director Dominique Strauss-Kahn on Switzerland’s Announcement of US$10 Billion in Financial Support for the IMF (April 8, 2009)
United States – $100 Billion
- IMF Managing Director Dominique Strauss-Kahn Welcomes U.S. Congressional Approval of IMF-Related Legislation, Including U.S. Financial Commitment of Up to US$100 Billion (June 18, 2009)
- Letters from the President of the United States to U.S. Congressional Bipartisan Leadership on NAB Fund (April 20, 2009)
Korea – At least $10 Billion
- Korea Finances IMF’s Lending Resources (May 4, 2009)
Australia – $5.7 Billion
Russia – Up to $10 Billion
China – Up to $50 Billion
- IMF Signs US$50 Billion Note Purchase Agreement with China (September 2, 2009)
- IMF Managing Director Dominique Strauss-Kahn Welcomes China’s Intention to Invest Up to US$50 billion in Notes Issued by the IMF (June 9, 2009)
Brazil – Up to $10 Billion
- IMF Signs US$10 Billion Note Purchase Agreement with Brazil (January 22, 2010)
- IMF Managing Director Dominique Strauss-Kahn Welcomes Brazil’s Intention to Invest Up To US$10 Billion in Notes Issued by the IMF (June 10, 2009)
India – Up to $10 Billion
- IMF Managing Director Dominique Strauss-Kahn Welcomes India’s Commitment to Buy up to US$10 Billion of IMF Notes (September 5, 2009)
Singapore – $1.5 Billion
- IMF Managing Director Dominique Strauss-Kahn Welcomes Singapore’s Commitment of Additional Financial Support for the IMF (September 8, 2009)
Chile – $1.6 Billion
- IMF Managing Director Dominique Strauss-Kahn Welcomes Chile’s Commitment of Additional Financial Support for the IMF (September 24, 2009)
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