Belgium, Slovakia, Malta to lend to IMF

15th February 2010, Comments 0 comments

The International Monetary Fund has announced that it has signed agreements to borrow a total of 7.2 billion dollars from three eurozone members -- Belgium, Slovakia and Malta.

WASHINGTON - The agreements are part of the European Union's pledge in March 2009, as the global economic crisis raged, to boost IMF lending capacity, the Washington-based institution said in a statement.

The EU initially had promised to lend up to 75 billion euros, at the time equal to about 100 billion dollars, then later expanded it by 50 billion euros, the IMF said.

The Group of 20 developed and developing countries had vowed at a London summit last April to triple the IMF's resources so that it could help its 186 member nations cope with the worst global recession since World War II.

As part of these commitments, the IMF said it had signed agreements to be able to borrow 6.4 billion dollars (4.7 billion euros) from Belgium, 600 million dollars (440 million euros) from Slovakia and 165 million dollars (120 million euros) from Malta.

The combined amount totals about 7.2 billion dollars (5.3 billion euros).

To date, the new loan arrangements bring the full amount of EU loans available to the IMF to 65.4 billion dollars (48 billion euros).

Fifteen IMF member states, including 10 EU states, have signed agreements to either lend directly to the IMF or buy its bonds.

Another 26 countries have said they would contribute to the fund's resources.


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