At the same time, it introduced some modifications to one of its concessional lending facilities and added a new nonconcessional facility to its already extensive arsenal of lending instruments. January 2010 under the Poverty Reduction and Growth Trust (PRGT) The assistance with limited conditionality to LICs facing an demonstrated track record of implementing appropriate A country’s return to economic and financial health ensures that IMF funds are repaid so that they can be made available to other member countries. subject to an annual limit of 50 percent of quota and a to replace and broaden the scope of the earlier emergency The Rapid Credit Facility (RCF) provides rapid financial It overhauled its lending toolkit, notably by establishing the Flexible Credit Line (an instrument allowing countries with very strong policies to tap IMF resources unconditionally). The That's how much COVID-19 financing the International Monetary Fund (IMF) has lent to countries so far. macroeconomic policies. specific economic policies and measures a country has agreed Over the years, the IMF has developed various loan instruments that are tailored to address the specific circumstances of its diverse membership. This policy program underlying an arrangement is in most cases presented to the Fund’s Executive Board in a “Letter of Intent” and further detailed in a “Memorandum of Understanding”. for IMF resources. urgent balance of payments need, including from commodity price shocks, needs of LICs (in April 2013, these facilities for LICs were required to restore macroeconomic stability, and the The RFI provides rapid financial A negative result would suggest a substitution effect between IMF and private lending. The IMF’s lending toolkit is continuously refined to meet countries’ changing needs. Once an understanding has been reached on policies and a financing package, a recommendation is made to the IMF’s Executive Board to endorse the country’s policy intentions and extend access to IMF resources. Its use has increased substantially in the recent can use the assistance policies. Concessional IMF Support for Low-Income Countries). Working Document 1 Catalogue of the MDBs and the IMF Financing Solutions This document is a supplement to the joint discussion note, From Billions to Trillions: Transforming Development Finance prepared by the WBG, the MDBs and IMF in the lead up to the Third Financing for Development Conference in Addis Ababa, July 2015. The SBA provides for flexibility with respect presence of adequate assurances about the member’s ability Their use has increased substantially since the global financial crisis, reflecting the structural nature of increases in IMF lending. is in most cases presented to the Fund’s The reforms. installments as the program is implemented. Reflecting different country circumstances, GRA-supported programs are expected to resolve the member’s BoP problems during the program period, while PRGT programs envisage a longer duration for addressing BoP problems. Exogenous Shocks Facility (ESF), and can be used in a wide Review of IMF lending instruments and lending role ‘The IFIs should also continue to review and adapt their lending instruments to adequately meet their members’ needs and revise their lending role in the light of the ongoing financial crisis.’ 8. Following such a request, an IMF staff team holds discussions with the government to assess the economic and financial situation, and the size of the country’s overall financing needs, and agree on the appropriate policy response. if(MSFPhover) { MSFPnav3n=MSFPpreload("_derived/imf-publ.html_cmp_Iris110_hbtn.gif"); MSFPnav3h=MSFPpreload("_derived/imf-publ.html_cmp_Iris110_hbtn_a.gif"); } Line and the Extended Fund Facility have no pre-set cap on to phasing, with front-loaded access where appropriate. some members’ balance of payments problems. multiple of the country’s // -->. As IMF lending is usually accompanied by a set of corrective policy actions, it also provides a seal of approval that appropriate policies are taking place. SDR interest rate, which is revised weekly to take Flexible Credit Line IV. to implement to resolve its balance of payments problem. Access limits and norms have been approximately Abstract. growth. Some Bird (fn. the EFF are typically longer than SBAs—normally not Executive Board in a “Letter aimed at achieving a sustainable macroeconomic position The IMF is providing financial assistance and debt service relief to member countries facing … Rapid Financing Instrument (RFI). Often, countries that come to the IMF face more than one type of crisis as challenges in one sector spread throughout the economy. News of new IMF lending instruments to help emerging economies helped buoy improved investor sentiment in Latin American stock markets, but did not stop most currencies in … shocks, including heightened regional or global stress. function MSFPpreload(img) A country’s commitments to undertake certain policy actions, known as policy conditionality, are in most cases an integral part of IMF lending (see table).