Explanation:

Recently a deal was signed among the IMF members to allow an extension of non-permanent, supplementary sources of funds – such as the New Arrangement to Borrow (NAB), a renewable funding mechanism that has existed since 1998, and bilateral borrowings from countries - the IMF had entered into these after the 2008 financial crisis to increase its lending ability.The agreement extended the bilateral borrowing facility by a year - to the end of 2020 and a potential doubling of the NAB.

The New Arrangement to Borrow is the fund mobilization arrangement of the IMF to mobilise additional funds through borrowing from member countries. Under NAB, member countries and institutions can stand ready to lend to the Fund. The NAB is structured as a set of credit arrangements between the IMF and 38-member countries (can be changed) and institutions. The NAB was proposed for the first time at the 1995 G-7 Halifax Summit following the Mexican financial crisis. In January 1997, the IMF‘s Executive Board adopted a decision establishing the NAB,which became effective in November 1998.The NAB was revived in the context of the global financial crisis in 2009; to meet the lending requirements of the Eurozone crisis