Bulletin – December Quarter 2012 Australia's Financial Relationship with the International Monetary Fund Abstract

The global financial crisis led to a significant increase in demand for actual and precautionary funding from the International Monetary Fund (IMF). As a result, the IMF expanded its available resources. Alongside many other countries, Australia has increased the amount it is willing to lend to the IMF to help the IMF fund its current and future commitments, although so far the IMF has only drawn on a small portion of the funding Australia has agreed to provide. These loans from Australia to the IMF are seen as having low risk, given the ‘safeguards’ the IMF has in place, and are treated accordingly as part of Australia's official reserve assets.

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