Rollback of Credit Arrangements in the New Arrangements to Borrow

On December 15, 2023, the Board of Governors (BoG) approved Resolution No. 79-1, which provides for an increase of 50 percent in Fund quotas under the Sixteenth General Review of Quotas, conditional on a reduction ("rollback") in credit arrangements under the New Arrangements to Borrow (NAB).The quota increase, together with the pending expiration of the bilateral borrowing arrangements (BBAs) and the rollback of the NAB, would strengthen the quota-based nature of the Fund by reducing reliance on borrowing and thus ensuring the primary role of quotas in Fund resources, while maintaining the Fund's lending capacity. This paper presents a proposal for the implementation of the rollback through a reduction in NAB credit arrangements as follows:• A reduction of the aggregate size of the NAB by SDR 61.3 billion, which represents a reduction of 16.8 percent, is proposed that would maintain the Fund's lending capacity around its November 7, 2023 level of SDR 696 billion.