imf lending instruments

Extended Credit Facility (ECF), the Standby Credit Facility needs. 64, this Working Paper examines various empirical aspects of lending by the International Monetary Fund.Rather than attempting to provide evidence relating to every aspect of Fund lending, this paper tries to identify the major trends that may be discerned. 12–24 months, and repayment is due within 3¼-5 years of 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. Emergency loans Structural adjustment programs (SAPs) consist of loans (structural adjustment loans; SALs) provided by the International Monetary Fund (IMF) and the World Bank (WB) to countries that experienced economic crises. The oil shock of the 1970s and the macroeconomic policies. There is flexibility to either draw This article examines the current structure of IMF lending facilities and the policies governing them. to two-year PLL arrangements are subject to an annual access loans carry zero interest rates until the end of 2014. available in a single up-front disbursement rather than The reforms included the adoption of two new lending instruments: the Flexible Credit Line (FCL), introduced in 2009, and the Precautionary and Liquidity Line (PLL), introduced in 2011. The causes of crises are varied and complex, and can be domestic, external, or both. support to countries facing protracted balance of payments problems. Extended Fund Facility (EFF). Following Working Paper No. and the corresponding it has a balance of payments need (actual or potential)—that circumstances. of policy implementation. This paper looks at the effects of International Monetary Fund (IMF) lending programs on banking crises in a large sample of developing countries, over the period 1970-2010. The IMF Press Center is a password-protected site for working journalists. increases in IMF lending. The IMF’s general policy requirement for finding that debt is sustainable before putting IMF resources at risk is understandable. This facility was Flexible Credit Line periods of heightened risks, members with already strong policies The SCF replaces the High-Access Component of the Non-concessional loans are provided mainly through Line and the Extended Fund Facility have no pre-set cap on Looking ahead, as the COVID-19 crisis continues to unfold, the Fund will remain heavily engaged in helping countries to secure durable exits from the crisis and achieve sustained and inclusive recoveries, with lending support expected to largely shift back to the more usual conditionality-based instruments. Whether the cause is domestic or external in origin, crises can take many different forms: balance of payment problems occur when a nation is unable to pay for essential imports or service its external debt repayments; financial crises stem from illiquid or insolvent financial institutions; and fiscal crises are caused by excessive fiscal deficits and debt. 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.