IMF Prepares For Global Cataclysm, Expands Backup Rescue Facility By Half A Trillion For "Contribution To Global Financial Stability"
Submitted by Tyler Durden on 04/12/2010 22:14 -0500
And all the pundits thought that the IMF would be on the hook for just €10 billion... The IMF has just announced that it is expanding its New Arrangement to Borrow (NAB) multilateral facility from its existing $50 billion by a whopping $500 billion (SDR333.5 billion), to $550 billion. The current lending participant group of 26 entities will be increased by 13 new members all of whom will contribute token amount of capital to the NAB. The one country most on the hook in the new and revised NAB - the United States of America, will provide over $105 billion in total commitments, or 20% of the total facility. The US is currently on the hook for just $10 billion, meaning its participation in global bail outs just increased by $95 billion. And the bulk of these bailouts will certainly be located across the Atlantic. What is most troublesome is the massive expansion of the NAR. If the IMF believes that over half a trillion in short-term funding is needed imminently, is all hell about to break loose.
和所有的博學者都認為，國際貨幣基金組織將在吊人胃口的只不過一百億歐羅...國際貨幣基金組織剛剛宣布，它正在擴大其新借款安排（NAB）的多邊設施，從現有的500億美元壙大異常巨大的 5,000億美元（SDR333.5億美元）至 5,500億美元。目前的貸款參與者小組的 26個實體將增加13個新成員，所有成員將會貢獻零碎金額的資本給借貸安排。那一個國家在新和修訂的借款安排中 最弔人胃口的- 美利堅合眾國，將會提供超過 1,050億美元的總承諾，或20％的總設施。美國目前在鉤上僅 100億美元，意味著它的全球緊急援助參與剛剛增加了950億美元。而大部分這些救市措施肯定會設置穿越大西洋。最令人擔憂的東西是NAR的大規模擴張，如果國際貨幣基金組織認為，超過 半兆億美元的短期資金是立刻需要，是所有關於要掙脫。
Never one to present a realistic picture Dominique (or is that Mrs. Pisani?) Strauss-Khan said: "The expansion and enlargement of the NAB borrowing arrangements provides a very strong multilateral foundation for the Fund’s efforts in crisis prevention and resolution, as an essential back-stop to the Fund’s quota resources. This will help ensure that the Fund has access to adequate resources to help members that are vulnerable to financial crises."
從來沒有人提出一個現實的多米尼克畫面（或者是皮薩尼太太？）施特勞斯汗說：“擴張和放大借款安排提供一個非常強有力的多邊基金會，為基金在預防和解決危機的努力，作為一個必要的後勤站對基金的配額資源。這將有助確保基金有途徑獲得足夠資源，去幫助成員它們容易受到金融危機傷害的。“
If memory serves us right, the Fund's current resources give it acces to about a third of a trillion, so as of today the IMF has recourse funding to just under a trillion. Something big must be coming.
Some more details on the NAB from the just released PR:
The NAB is a standing set of credit arrangements under which participants commit
resources to IMF lending when these are needed to supplement quota resources.
The expanded NAB will become operational when it receives formal acceptances
from the required proportion of current and potential participants, which will
require legislative backing in some cases.1
“The expansion of the NAB
will make an important contribution to global financial stability, but it is not
a substitute for a general increase in the Fund’s quota resources. The Fund is,
and shall remain, a quota-based institution. It is important now that member
countries rapidly take the necessary steps to make the increased resources
available,” Mr. Strauss-Kahn underscored.
Background
The NAB is a credit arrangement between
the IMF and a group of members and institutions to provide supplementary
resources to the IMF when these are needed to forestall or cope with an
impairment of the international monetary system. The NAB is supplementary to
quota resources, which are made up of the quota subscriptions each country pays
upon joining the Fund, broadly based on its relative size in the world economy.
IMF members’ quotas currently total SDR 217.4 billion (about US$330 billion).
Like quota allocations, the NAB is reviewed on a regular basis.
The
recent unprecedented shock confronting the global economy has led to a sharp
increase in the demand for IMF financing. To ensure that the IMF continues to
have sufficient resources to meet demand, leaders of the G-20 agreed in April
2009 that immediate financing from members of US$250 billion would subsequently
be folded into an expanded and more flexible NAB, increased by up to $500
billion. This call was endorsed by the IMFC. The G-20 leaders reaffirmed their
commitment on September 25, 2009 to a tripling of the resources available to the
IMF, from a pre-crisis level of about US$250 billion. At its meeting in October
2009, the IMFC welcomed the expected agreement to expand and enhance the NAB.
Pending the entering into force of the expanded NAB, member countries have
pledged more than $300 billion in immediate bilateral financing should the Fund
require additional resources for lending.
We have a few questions:
1) Just where will central banks suddenly find access to over three hundred billion in SDRs (which is what this facility is based on)? Also, we are curious just how this SDR expansion will impact dollar levels. As the dollar is the primary component in the SDR basket (17%), banks will have to sell more dollars than other currencies on a pro rata basis to increase their SDR holdings. What will happen to the DXY when $85 billion new dollars flood the market via assorted CBs but mostly the FRBNY?
2) Who came up with the expansion factor? Why is Japan's allocation increasing by 18.7x, that of the US by 10.4x, while that of the Bundesbank only by 7.2x? We thought the IMF is more of a eurocentric bailout facility? Why does it fall upon the US taxpayers to disproprtionately bailout Greece?
3) What is the joke with having Greece join the group of new participants? The IMF sure has a sick sense of humor.
4) Curious how this comes the day before Greece is supposed to auction off some ultra-short term debt. If this facility is enacted, watch for socereign credit curves to hit 60 degrees, with near-term risk disappearing, once again courtesy of Joe Sixpack. We hope you pay your taxes by the April 15 deadline.
5) Funny money will galore. At this point nobody will allow anyone or anything to fail.
Here is the full table of old and existing contributors. Congrats US - you are once again leading the charge in the world bailout.
http://www.zerohedge.com/article/imf-prepares-global-cataclysm-expands-backup-rescue-facility-half-trillion-contribution-glob
G20: 銀行被告知積穀高達千三億英鎊以防危機
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