Press Release No. 09/438

Press Release: IMF Signs €1.06 Billion Borrowing Agreement with Banco de Portugal

December 1, 2009

The International Monetary Fund (IMF) and Banco de Portugal, the central bank of Portugal, have signed a borrowing agreement to provide the Fund with up to €1.06 billion (about US$1.6 billion). The agreement is part of a commitment made by the European Union in March 2009 to contribute up to €75 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).

The signing of the agreement with the Banco de Portugal means the Fund can now add these resources to those already available through borrowing agreements signed with other members. These agreements contribute toward an increase in Fund resources that was requested in April 2009 by G-20 leaders and the International Monetary and Financial Committee in order to provide timely and effective balance of payments assistance to its members in the current crisis.

Useful links:

Text of the borrowing agreement with the Banco de Portugal

http://0-www-imf-org.library.svsu.edu/external/np/pp/eng/2009/113009.pdf

Agreements bolstering lending capacity:

http://0-www-imf-org.library.svsu.edu/external/np/exr/faq/contribution.htm

Press Release No. 09/82 on European Union financial support for the IMF:

http://0-www-imf-org.library.svsu.edu/external/np/sec/pr/2009/pr0982.htm

IMFC Communiqué, April 25, 2009:

http://0-www-imf-org.library.svsu.edu/external/np/sec/pr/2009/pr09139.htm

April 2009 G-20 London Summit final Communiqué:

http://www.londonsummit.gov.uk/resources/en/news/15766232/communique-020409