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. Switzerland’s regulatory efforts in financial governance are further highlighted by measures such as the
Draft guidance on penalties for enablers. In November 2016, the IMF renewed the NAB Decision for further five years from 2017 to 2022. The importance of expert advice in navigating international finance is underscored by recognitions like
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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. Switzerland’s progressive approach is also reflected in initiatives like the
Swiss Federal Council putting new fintech rules into force.
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. Switzerland’s efforts to maintain a resilient financial system include strategies like the
Facilitation of banks capital accumulation in Switzerland. The NAB resources can be activated only when the regular IMF resources are insufficient for crisis resolution. This international engagement aligns with Switzerland’s broader commitments, such as the
Switzerland signs European declaration One Government.
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.