Kelly O'Dwyer (Higgins, Liberal Party, Minister for Revenue and Financial Services) Share this | Link to this | Hansard source

I move:

That this bill be now read a second time.

Today, I introduce a bill to amend the International Monetary Agreements Act 1947 to renew the International Monetary Fund's New Arrangements to Borrow (NAB).

These amendments will ensure that the standing appropriation and authority to borrow that allows the government to make payments to the IMF under the current NAB will continue for the renewed arrangement.

The NAB is a multilateral borrowing agreement that under its renewal and will provide a line of credit to the IMF of around A$329 billion from 37 participant countries or institutions, including Australia.

Australia joined the NAB as a founding member in 1997. On 4 November 2016, the IMF executive board agreed to renew the NAB for a period of five years, from its current expiry date of 16 November 2017 to 16 November 2022.

Australia's funding commitments of around A$4.05 billion will remain unchanged under the renewed NAB. The broader terms and conditions of the NAB will also remain largely unchanged.

The NAB has already been used numerous times to help manage crises, including assistance to developing, transitioning and advanced member countries.

The renewal of the NAB forms part of a broader global effort to maintain the current level of IMF resourcing, to ensure that it has sufficient financial resources available to effectively fulfil its global role in economic crisis prevention and resolution.

Ensuring that the IMF has sufficient financial resources in place provides confidence to markets and other economic actors that the IMF has the resources it needs to continue to play its role effectively. This is an important factor that underpins ongoing confidence to trade and invest.

As a successful open-trading economy, Australia's prosperity relies on strong and stable growth in the world economy.

Full details of the measure are contained in the explanatory memorandum.

Debate adjourned.