Economic Commentary: The Riksbank’s lending to the International Monetary Fund – how and why?

Date 20/02/2012

This Economic Commentary describes how the Riksbank's lending to the International Monetary Fund (IMF) works and why it is important for the Riksbank to lend money to the IMF. The Commentary also includes an historical review of the action taken by the Riksbank within the framework of the IMF's lending operations. The decision by the Executive Board of the Riksbank to promote a parliamentary decision that will entitle the Riksbank to temporarily increase the lending capacity of the IMF by up to SEK 100 billion is presented against this background. The decision is justified by the fact that the IMF needs to strengthen its lending capacity since the need for loans has increased in many countries as a result of the ongoing debt crisis in the euro area. By taking such action, the Riksbank can also help to stabilise the situation in Europe in the longer term, as the IMF's lending is linked to requirements for necessary reforms in the borrower countries.

 

Read the commentary via the link.