The international Monetary Fund is borrowing the equivalent of $750 million in marks from the West German central bank and $250 million in yen from Japan to finance part of the United States' dollar-emergency drawing from the international lending agency, the IMF announced yesterday.
This is part of the $3 billion in marks and yen that the Carter administration announced on Nov. 1 that it would borrow from the IMF under its automatic rights.
But because its own resources of these currencies is low, the IMF had to activate its borrowing arrangement with Germany, Japan and eight other nations (including the U.S.).
Under this General Arrangements to Borrow, these nations have standby agreements to lend the IMF up to the equivalent of 6.6 billion special drawing rights (about $8.5 billion) when the IMF needs supplementary resources. SDRs - a special IMF credit - were equal yesterday to about $1,286 each.
The U.S. borrowing is the first significant tap it has made on its resources in the IMF, a measure of the Carter administration's new, serious view of the dollar crisis.
Unlike borrowings made by some other nations - including less-developed countries - to which the IMF is able to attach conditions for economic behavior, the U.S. borrowing, within its reserve "tranche, "hasn't any conditions.
The IMF has had to tap the GAB on prior occasions to help finance drawings by the United Kingdom, France and Italy.
Both Germany and Japan have additional bilateral swap arrangements with the United States as part of the overall dollar support program, the Germans boosting their commitment to $6 billion and the Japanese enlarging their to $5 billion.
To replenish its own resources, the Interim Committee voted at its meeting last September to increase the quotas (deposits) of its members by 50 percent from SDR billion ($50.2 billion) to SDR 58.6 billion ($75.4 billion), along with three allocations of SDR 4 billion ($5.2 billion) each in 1979, 1980 and 1981.
The IMF announced Monday the proposed individual increases for each country, and said IMF governors had been asked to give their formal approval to the quota and SDR allocation steps by Dec. 11.