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The UK government is set to provide the International Monetary Fund with an amount equivalent to US$15.5 billion, based on an agreement signed with the lender on Tuesday, which would add to the Fund's total lending capacity. This is in line with the commitment made by the European Union in March to contribute up to US$100 billion to the Fund, to support lending capacity.
Similar agreements have also been signed by the lender with Japan, Canada and Norway's central bank.
The agreements with these respective countries contribute to an increase in the IMF's resources, which was requested in April by the G-20 nations and the International Monetary and Financial Committee, to provide timely and effective loans to member countries in times of crisis.
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