IMF signs Euro 5.31 bn borrowing pact with Netherland's bank

International Monetary Fund and Netherland's De Nederlandsche Bank have signed a borrowing agreement to provide the fund with up to Euro 5.31 billion, the IMF said on Tuesday.

The agreement is part of a commitment made by European Union in March 2009 to contribute up to Euro 75 billion (then equal to about USD 100 billion) to support the IMF's lending capacity, a statement from IMF said.

The European Union has since committed an additional Euro 50 million to the Fund's expanded new arrangements to borrow. The signing of the agreement with De Nederlandsche Bank means the Fund can now add these resources to those already available through borrowing agreements signed with other members, the IMF said.

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, it said.