Disbursements Total $23 Billion:IMF Lending in 1997 Soars to Near-Record Level As Asian Countries Make Large Drawings

• Pages: 33-34

Page 33

Member country use of IMF resources in 1997 almost tripled from its level in 1996, to more than SDR 16.8 billion (about $23.0 billion). This total is close to the record level of SDR 18.4 billion ($25.0 billion) in 1995. The sharp increase in lending during 1997 was the result primarily of drawings (disbursements) by members affected by the Asian crisis. Korea drew SDR 8.2 billion ($11.0 billion); Indonesia, SDR 2.2 billion ($3.0 billion); and Thailand, SDR 1.8 billion ($2.4 billion). These funds were all disbursed under Stand-By Arrangements and accounted for almost all of the IMF's lending under Stand-By Arrangements during the year.

In July, the Emergency Financing Mechanism was activated for the first time in support of a request by the Philippines for an extension and augmentation of its three-year Extended Arrangement. Page 34

A total of SDR 508.8 million ($688.0 million) was disbursed under the augmented arrangement (IMF Survey, August 5, 1997, page 250). The mechanism was used again in August for Thailand, (IMFSurvey, September 17,1997, page 283).

In December 1997, the IMF approved the Supplemental Reserve Facility (SRF) (IMF Survey, January 12. 1998, page 7). Korea was the first member country to receive assistance under the facility, amounting to SDR 4.1 billion ($5.5 billion) of the total amount of SDR 15.5 billion ($21 billion) approved under the Stand-By Arrangement (IMF Survey, December 15,1997, page 385, and January 12,1998, page 1).

[GRAPHICS ARE NOT INCLUDED]

Asian crisis countries were not the sole recipients of IMF lending under Stand-By Arrangements. Other countries receiving large disbursements included Argentina (SDR 321.0 million, $434.0 million), Bulgaria (SDR 247.6 million, $335.0 million), Ukraine (SDR 207.3 million...