Investor Presentaiton
THE ESM IN THE MULTILATERAL CONTEXT: THE GLOBAL
FINANCIAL SAFETY NET (GFSN)
GFSN provides insurance against crises, financing to mitigate their impact, and incentives for sound macro-
economic policies to ensure long-term prosperity
Global
Regional
Bilateral
National
At the global level, the IMF provides a
financial backstop;
At the regional level, protection comes
from the Regional Financial
Arrangements (RFAs);
At the bilateral level, there are swap
lines concluded bilaterally among
countries;
At the national level, countries can self-
insure against external shocks using
foreign reserves or fiscal space.
4.0
20
3.5
3.0
2.5
2.0
1.5
19
1.0
0.5
GFSN layers and their functions
8
0
International reserves (right axis)
IMF Regional financial arrangements
Bilateral swap arrangements
12.0
14.0
20
10.0
8.0
6.0
4.0
2.0
Source: IMF
1995
1996
1997
1998
1999
2000
2001
GFSN firepower expansion (trillions of USD)
25m
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019 020
0
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