The Group of Ten (G-10 or G10) refers to the group of countries that agreed to participate in the General Arrangements to Borrow (GAB), an agreement to provide the International Monetary Fund (IMF) with additional funds to increase its lending ability.[1]
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_Map.png) Group of Ten (IMF) Map by MapChart | ||
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History
editThe GAB was established in 1962, when the governments of eight International Monetary Fund (IMF) members—Belgium, Canada, France, Italy, Japan, the Netherlands, the United Kingdom, and the United States—and the central banks of two others, Germany and Sweden, agreed to make resources available to the IMF with an additional $6 billion of their resources.[1] The additional money was intended to allow the IMF to have increased lending resources.[1]
In 1964, the funds were used by the IMF to rescue the pound sterling.[1] The G-10 grew in 1964 by the association of the eleventh member, Switzerland, then not a member of the IMF, but the name of the group remained the same.[2]
Activities
editThe GAB enables the IMF to borrow specified amounts of currencies from these eleven industrial countries (or their central banks), under certain circumstances. Specifically, a proposal for calls under the GAB may only be made when a proposal for the establishment of an activation period under the New Arrangements to Borrow (NAB) is not accepted by NAB participants, who number 38 countries, amongst which are the BRICS nations and Middle Eastern powers.[citation needed]
The potential amount of credit available to the IMF under the GAB totals SDR 17bn (about $26bn), with an additional SDR 1.5bn available under an associated arrangement[clarify] with Saudi Arabia. The GAB was established in 1962 and expanded in 1983 to SDR 17bn, from about SDR 6bn. It has been activated ten times, the last time in 1998. The GAB and the associated credit arrangement with Saudi Arabia have been renewed, without modifications, for a period of five years from December 26, 2013.[3]
The Bank for International Settlements (BIS) hosts a publications e-library page for the G-10.[4]
Observers
editThe following international organizations are official observers of the activities of the G10: the BIS, European Commission, International Monetary Fund, and Organisation for Economic Co-operation and Development. Luxembourg is an associate member.[5]
See also
editReferences
edit- ^ a b c d Chand, S. N. (2006-01-01). Dictionary of Economics. Atlantic Publishers & Dist. ISBN 9788126905355.
- ^ "A Guide To Committees, Groups, And Clubs". IMF. Retrieved 2022-03-06.
- ^ imf.org: Factsheet - IMF Standing Borrowing Arrangements, 30 Apr 2014
- ^ "G10 - BIS". BIS. Archived from the original on 2016-03-04. Retrieved 2016-02-02.
- ^ "Group of Ten". Oxford Reference. Oxford University Press. Retrieved August 7, 2024.