_Map.svg) Members of the G10 | |
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TheGroup of Ten (G-10 orG10) refers to the group of countries that agreed to participate in the General Arrangements to Borrow (GAB), an agreement to provide theInternational Monetary Fund (IMF) with additional funds to increase its lending ability.[1]
The GAB was established in 1962, when the governments of eightInternational Monetary Fund (IMF) members—Belgium,Canada,France,Italy,Japan, theNetherlands, theUnited Kingdom, and theUnited States—and the central banks of two others,West Germany andSweden, 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 thepound 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]
The 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 theNew Arrangements to Borrow (NAB) is not accepted by NAB participants, who number 38 countries, amongst which are theBRICS nations and Middle Eastern powers.[citation needed]
The potential amount of credit available to the IMF under the GAB totalsSDR 17bn (about $26bn), with an additional SDR 1.5bn available under anassociated arrangement[clarify] withSaudi 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]
TheBank for International Settlements (BIS) hosts a publications e-library page for the G-10.[4]
The following international organizations are official observers of the activities of the G10: the BIS,European Commission,International Monetary Fund, andOrganisation for Economic Co-operation and Development.Luxembourg is an associate member.[5]
