Further participationin IMF's NAB approved bySwiss Federal Council

February 17, 2017 | Legal Alert

Further participation in IMF's NAB approved by Swiss Federal Council

On 15 February 2017, the Swiss Federal Council approved Switzerland's continued participation in the IMF's New Arrangements to Borrow (NAB).

Being part of the IMF's financial safety net, the NAB can be activated in serious crisis situations. Thus, 38 contracting countries or their central banks stand ready to provide the IMF with additional funds of up to CHF 250 billion. In November 2016, the IMF renewed the NAB Decision for further five years from 2017 to 2022.

On its part, the Federal Council has resolved to continue Switzerland's participation in the NAB for the mentioned period. The Swiss National Bank (SNB) will continue to participate in the NAB with a maximum credit line of CHF 7.7 billion.

In addition to the regular IMF resources consisting of the member countries' quotas, the NAB resources form the IMF's financial safety net for crises that pose a threat to the international monetary and financial system. The NAB resources can be activated only when the regular IMF resources are insufficient for crisis resolution.

Legal disclaimer. This article does not constitute legal advice and does not establish an attorney-client relationship. The article should be used for informational purposes only.
Show more