The International Monetary Fund (IMF) aims to preserve its lending capacity by an extension of its bilateral borrowing agreements, the multilateral lender said on Wednesday.

“The terms of the 2016 borrowing agreements between the IMF and 40 members are now effective through end-2020, following approval by the IMF Executive Board and consent from all 40 creditors to a one-year extension of the terms of their respective agreements,” the IMF said.

“The extension of terms preserves the IMF’s overall lending capacity of about $1 trillion for an additional year and is a prudent step to provide confidence to members and markets that the Fund continues to have adequate resources to meet the potential needs of the membership,” it added.

According to the multilateral lender, such was considered to preserve its resource portfolio and double its borrowing arrangements.

“This step is part of a broader package of actions on IMF resources and governance reform–including support for maintaining the IMF’s current resource envelope and considering a doubling of the new arrangements to borrow and a further temporary round of bilateral borrowing beyond 2020,” it explained.

The Philippines became a net creditor of the IMF in 2011 following the full payment of all its IMF obligations in December 2006.

In 2013, the Bangko Sentral ng Pilipinas extended a $1 billion loan to the IMF to help other countries going through financial difficulty.

The IMF said its borrowing agreements from 40 members reaching $433 billion as of end-September 2019 exchange rates will serve as another layer of protection against the sustained “uncertainty in the global economy.”