"This action is part of a broader package on IMF resources and governance reform that will help maintain the IMF's lending capacity of $1 trillion," the fund said in a statement.
The executive board of the Washington-based development lender on Monday approved the bilateral borrowing arrangements to take effect January 1, 2021, just after the current round expires, which will be in place for 3 years but can be extended through the end of 2024.
The arrangements currently in place provide $450 billion from 40 countries, and add to the IMF's other resources including usual quotas provided by each member, as well as financing under the New Arrangements to Borrow which will be doubled to just over $500 billion.
Emerging markets, which have suffered an exodus of capital of more than $83 billion in recent weeks, face financing needs of $2.5 trillion, which will require some outside assistance, she said. – Rappler.com