NAB stands for the IMF's New Arrangements to Borrow and will contain total funding of some $600 billion. The NAB facility is meant to boost the IMF's lending resources during times of global financial stress.
'This money will be available to the IMF and it will be doled out as needed, rather than all at once,' Mantega said at a news conference. 'It's like an expense account.'
The NAB facility was originally planned to hold $500 billion, mainly from industrialized countries. But Brazil, along with a number of other emerging countries, has agreed to participate.
Mantega said, 'Brazil, Russia, China and India, the BRIC countries, will control 15% of the NAB fund. That equals virtually a veto power because decisions on how to use the fund need to be approved by holders of at least 85% of the stakes.'
-By Tom Murphy, Dow Jones Newswires; 55-11-2847-4519; brazil@dowjones.com"
