Riksbank extends loan agreement with IMF

Date 26/08/2015

The Riksbank is extending a loan agreement with the International Monetary Fund (IMF). This agreement gives the IMF the right to borrow up to the equivalent of around SEK 80 billion from the Riksbank. The agreement applies until February 2017.

In February 2013, the Riksbank signed a loan agreement with the IMF, after approval from the Riksdag, the Swedish parliament. The agreement with the Riksbank was part of a larger initiative in which 35 of the IMF's member countries signed short-term bilateral loan agreements to temporarily boost the IMF's lending capacity in light of the prevailing uncertainty, particularly in the euro area.

These short-term bilateral loan agreements can only be used if the IMF's regular capital falls below a certain level. This has not happened yet, and the IMF has therefore not made use of the loan facility in the agreement with the Riksbank. The IMF has asked for the Riksbank's consent to extend the loan agreement for a further year. The Executive Board of the Riksbank decided on 20 August to consent to extend the agreement, which means that it will now apply until February 2017.

The Economic Commentary "The Riksbank's lending to the International Monetary Fund – how and why?" from 2012 explains the background to the agreement and how the Riksbank's lending to the IMF functions. Today the Riksbank publishes the Economic Commentary "The IMF's lending – how does it work?" about how these funds could be used if the IMF chooses to call in the agreement.