IMF agrees on terms for using $430b

The International Monetary Fund has agreed that it would only draw on the $430 billion in extra resources committed by member countries to fight the global economic crisis once it has tapped existing funds. Some 12 countries plus the euro area pledged over $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.