Decreto legge 29.12.2010, n. 225

(previsto dall'articolo 2, comma 13, lettera a))

INTERNATIONAL MONETARY FUND

Borrowing Agreement with Banca d'Italia

Prepared by the Finance Department and the Legal Department

Approved by Andrew Tweedie and Sean Hagan

October 21, 2009

I. Introduction

1. This paper presents for the approval of the Executive Board a draft borrowing agreement between Banca d'Italia and the Fund. On March 20, the European Union announced the support of its member states to boost the IMF's lending capacity by up to EUR 75 billion (about US$110 billion).

Staff and representatives of Banca d'Italia have now reached agreement on a draft borrowing agreement, the text of which is set forth in the Attachment (the «Agreement»). The Agreement would make an important contribution to the multilateral effort to ensure the adequacy of the Fund's financial resources, adding to the resources available to the Fund from the bilateral loan and note purchase agreements already in effect (Japan, Norges Bank, Canada, the UK, the People's Bank of China, Deutsche Bundesbank, and De Nederlandsche Bank NV), or expected to become effective shortly (France, the Swiss National Bank, and Spain). It is expected that borrowing agreements with other EU members containing broadly similar terms will be proposed for Board approval in the near future.

2. The Agreement closely follows the terms of the previous borrowing agreements; hence Board approval on a lapse of time basis is proposed.

II. Specific features of the proposed agreement

3. This section highlights the key terms and provisions that are unique to the Agreement compared to the Japan borrowing agreement, reflecting the preferences of Banca d'Italia and other EU members, as well as developments since the Japan loan was agreed, including the possible enla