India to give Rs 11,295 crore to IMF

NEW DELHI: Continuing its effort to mark its arrival on the global stage, India will provide Rs 11,294.6 crore to the International Monetary Fund’s New Arrangements to Borrow (NAB) facility. Government on Friday sought Parliamentary approval towards this end.

Last year also India provided over $2 billion to the IMF’s fund to help bailouts in Europe and other parts of the world. As part of efforts to overcome the global financial crisis , in April 2009, the Group of Twenty ( G-20 ) industrialized and emerging market economies agreed to increase the resources available to the IMF by up to $500 billion (which would triple the total pre-crisis lending resources of about $250 billion) to support growth in emerging market and developing countries, according to IMF.

IMF said this broad goal was endorsed by the International Monetary and Financial Committee (IMFC) in its April 25, 2009 communiqué . The increase was made in two steps: First, through bilateral financing from IMF member countries ; Second, by incorporating this financing into an expanded and more flexible NAB. On September 25, 2009 the G-20 announced it had delivered on its promise to contribute over $500 billion to a renewed and expanded NAB, according to the IMF website.

Currently, the fund has sixteen active bilateral loan agreements worth about $200 billion and two active bilateral note purchase agreements for about $60 billion. For NAB participants with bilateral credit lines, these credit lines do not add to the total resources available to the Fund under their NAB credit arrangements , it said.