General Agreements To Borrow

Summary of General Agreements To Borrow

An arrangement among the GROUP OF TEN (read this and related legal terms for further details) nations to provide supplemental financing to the International Monetary Fund (read this and related legal terms for further details) “to forestall or cope with an impairment of the international monetary system.”

The participating nations (United States, Great Britain, West Germany, Japan, Sweden, Netherlands, Canada, France, Italy, and Belgium) commenced the GAB in 1962 by pledging to lend up to six billion U.S. dollars in national currencies over a four-year period. The agreement has been extended several times, most in the 1980s for five years in 1980.

(Main Author: William J. Miller)