International Monetary Fund: Bilateral Loan

Monday 10th October 2016 Written Statements

[The Chief Secretary to the Treasury (Mr David Gauke)]

Today, the UK completed the signing of a new bilateral loan commitment to the International Monetary Fund (IMF), valued at 9,178.2 million SDRs, equivalent to £10.278 million using exchange rates on 7 October 2016. This bilateral loan replaces one of the same value, which came into effect in February 2016 (HCWS542). UK lending to the IMF remains within the limit set by the International Monetary Fund (Limit on Lending) Order 2010, which came into force on 22 July 2010.

The new loan is part of a global initiative to ensure that the IMF is well-resourced. It is vital at this time that we have an IMF equipped to strengthen the resilience of the global economy against risks and uncertainty. The UK is one of the first countries to sign a new bilateral loan with the IMF, maintaining its leading role within international institutions and in the world economy.

The SDR is the unit of account used by the IMF. Its value is calculated daily as a weighted average of the US dollar, euro, renminbi, yen, and pound sterling.

[HCWS173]