IMF board renews $250 billion crisis fund for another five years


WASHINGTON: The International Monetary Fund said on Friday its executive board approved the renewal of its $250 billion crisis lending fund, the New Arrangements to Borrow, for another five-year period starting Nov. 17.

The IMF said the crisis fund, which includes contributions from 38 wealthier member countries, has been renewed continuously since 1998. The NAB fund aims to provide supplementary resources “to forestall or cope with an impairment of the international monetary system or to deal with an exceptional situation that poses a threat to the stability of that system.”

The NAB was tripled in size to cope with the aftermath of the 2008-09 financial crisis and subsequently rolled back to its present level after the IMF increased its normal lending capacity through increased quota contributions.