Brasília – For the first time ever, due to a bilateral agreement, Brazil will be allowed to loan money to the International Monetary Fund (IMF). Last week, in a IMF meeting in Washington DC, the president of the Brazilian Central Bank (BC), Ilan Goldfajn, signed an agreement and the country could loan up to USD 10 billion if necessary.
The total amount from this new round of bilateral agreements, which have been signed by 26 countries, is USD 360 billion, said the BC. Brazil hadn’t yet taken part in this type of agreement.
However, it’s not the first time that Brazil contributes with loan resources to the IMF. Brazil is a creditor of the IMF since 2009. Currently, the country is taking part in a multilateral agreement called New Arrangements to Borrow (NAB) that has 40 members and is in effect since 2011.
The bilateral agreement ends in December 2019, with the option of being extended until 2020. The last resources used by the IMF, if the need arises, come from bilateral agreements. According to the BC, the IMF hasn’t used any resources from bilateral agreements ever. The IMF’s main source of funds is the quotas. Next in line are the NAB resources.
*Translated by Sérgio Kakitani
