IMF lending declines as recovery takes hold

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Member country use of IMF resources decreased in 1999, to SDR 10.8 billion (about $14.7 billion) from SDR 21.5 billion ($29.3 billion) in 1998, as member country economies recovered from the severe crises that had affected many regions in 1998. While lending under all facilities decreased in 1999, several member countries received large disbursements during the year. Brazil received the largest disbursement of any member, under the Supplemental Reserve Facility, for SDR 3.6 billion ($4.9 billion) and also SDR 814.1 million ($1.1 billion) under a Stand-By Arrangement. Mexico received the largest disbursement under a Stand-By Arrangement, SDR 1.04 billion ($1.4 billion). Disbursements under the Extended Fund Facility (EFF) were dominated by drawings totaling SDR 1.0 billion ($1.4 billion) by Indonesia. Nicaragua received the largest disbursement under the Poverty Reduction and Growth Facility (PRGF), for SDR 78.3 million ($106.7 million).

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In April, the IMF established Contingent Credit Lines (CCL) for a two-year period to provide short-term financing to help membersPage 39 overcome the exceptional balance of payments financing needs that can arise from a sudden and disruptive loss of market confidence caused by international financial contagion. As of the end of 1999, no countries had made use of the CCL.

On September 24, the IMF established a temporary Y2K facility to enable it to extend short-term financing to countries that encountered balance of payments difficulties arising from a loss of confidence or other problems associated with potential or actual Y2K- related failures of computer systems. However, no member had to use resources under this facility...