IMF financing is meant to help member countries tackle balance of payments problems, stabilize their economies, and restore sustainable economic growth. Unlike development banks, the IMF does not lend for specific projects. IMF financing can also be provided in response to natural disasters or pandemics. Finally, the IMF also provides precautionary financing to countries with sound policies that may have some remaining vulnerabilities, to help prevent and insure against future crises, and it continues to enhance the tools available for crisis prevention.
In broad terms, the IMF has two types of lending: loans provided at nonconcessional interest rates and loans provided to low-income countries on concessional terms. Concessional loans currently bear no interest.
From the outset of the COVID-19 pandemic, the IMF has responded with unprecedented speed and magnitude, making use of its current lending capacity of about $1 trillion.1
This response has entailed provision of financial assistance to countries with urgent or potential balance of payments needs, with the aim of helping protect the lives and livelihoods of people, especially the most vulnerable. The Executive Board also temporarily streamlined internal processes early in the crisis to allow the IMF to respond more quickly to members’ requests for emergency assistance-and in many cases made emergency financing available within weeks of receiving a request. 2 In addition, the Executive Board temporarily suspended the application of existing high-access procedures for Rapid Credit Facility requests.3
Policy safeguards were introduced in August 2020 to help mitigate financial risks from a member having combined high access to both PRGT and General Resources Account (GRA) lending facilities. Safeguards now apply to any IMF member with combined access to GRA and PRGT resources that exceeds quota-based thresholds set at the same level that triggers the exceptional access framework of the GRA.
In addition, to accommodate high demand for IMF lending resulting from the crisis, the Executive Board temporarily increased (1) the annual access limit for the IMF’s GRA that triggers application of the exceptional access framework and (2) both the annual and cumulative access limits on concessional lending through the PRGT (see Tables 2.2 and 2.3).
Debt Service Relief from the Catastrophe Containment and Relief Trust
The CCRT, which was enhanced in March 2020, has been used to provide further debt relief on a grant basis to the IMF’s poorest members affected by the COVID-19 pandemic. In total, 29 eligible countries have received debt service relief of close to SDR 520 million in three tranches, which were approved by the Executive Board on April 13, 2020; October 2, 2020; and April 1, 2021, to cover debt service falling due from April 14, 2021, through October 15, 2021.
CATASTROPHE CONTAINMENT AND RELIEF TRUST DEBT SERVICE RELIEF PROVIDED TO 29 ELIGIBLE MEMBER COUNTRIES
(millions of SDRs; as of April 30, 2021)
Chad did not have eligible debt service falling due during the period covered by the 1st tranche of debt relief.
Tanzania did not have eligible debt service falling due during the period covered by the 3rd tranche of debt relief.
Debt Service Relief from the Catastrophe Containment and Relief Trust
The CCRT, which was enhanced in March 2020, has been used to provide further debt relief on a grant basis to the IMF’s poorest members affected by the COVID-19 pandemic. In total, 29 eligible countries have received debt service relief of close to SDR 520 million in three tranches, which were approved by the Executive Board on April 13, 2020; October 2, 2020; and April 1, 2021, to cover debt service falling due from April 14, 2021, through October 15, 2021.
CATASTROPHE CONTAINMENT AND RELIEF TRUST DEBT SERVICE RELIEF PROVIDED TO 29 ELIGIBLE MEMBER COUNTRIES
(millions of SDRs; as of April 30, 2021)
| Country | 1st Tranche Approved April 13, 2020 | 2nd Tranche Approved October 2, 2020 | 3rd Tranche Approved April 1, 2021 | |
|---|---|---|---|---|
| 1. | Afghanistan | 2.40 | 2.40 | 2.40 |
| 2. | Benin | 7.43 | 6.37 | 5.31 |
| 3. | Burkina Faso | 8.74 | 10.30 | 9.65 |
| 4. | Burundi | 5.48 | 4.82 | 4.16 |
| 5. | Central African Republic | 2.96 | 2.92 | 2.92 |
| 6. | Chad | 0¹ | 2.00 | 4.06 |
| 7. | Comoros | 0.97 | 0.81 | 0.65 |
| 8. | Democratic Republic of the Congo | 14.85 | 9.90 | 4.95 |
| 9. | Djibouti | 1.69 | 1.69 | 1.40 |
| 10. | Ethiopia | 8.56 | 4.50 | 0.47 |
| 11. | The Gambia | 2.10 | 2.10 | 1.87 |
| 12. | Guinea | 16.37 | 16.37 | 18.21 |
| 13. | Guinea-Bissau | 1.08 | 1.36 | 1.12 |
| 14. | Haiti | 4.10 | 3.98 | 3.98 |
| 15. | Liberia | 11.63 | 11.19 | 11.48 |
| 16. | Madagascar | 3.06 | 3.06 | 6.11 |
| 17. | Malawi | 7.20 | 7.20 | 7.81 |
| 18. | Mali | 7.30 | 7.50 | 7.70 |
| 19. | Mozambique | 10.89 | 9.47 | 9.47 |
| 20. | Nepal | 2.85 | 3.57 | 3.57 |
| 21. | Niger | 5.64 | 5.64 | 9.54 |
| 22. | Rwanda | 8.01 | 12.02 | 14.02 |
| 23. | São Tomé and Príncipe | 0.11 | 0.17 | 0.17 |
| 24. | Sierra Leone | 13.36 | 12.22 | 15.11 |
| 25. | Solomon Islands | 0.06 | 0.07 | 0.10 |
| 26. | Tajikistan | 7.83 | 5.22 | 3.91 |
| 27. | Tanzania | 10.28 | 8.29 | 02 |
| 28. | Togo | 3.74 | 2.31 | 0.88 |
| 29. | Yemen | 14.44 | 10.96 | 17.05 |
Chad did not have eligible debt service falling due during the period covered by the 1st tranche of debt relief.
Tanzania did not have eligible debt service falling due during the period covered by the 3rd tranche of debt relief.
Debt Service Relief from the Catastrophe Containment and Relief Trust
The CCRT, which was enhanced in March 2020, has been used to provide further debt relief on a grant basis to the IMF’s poorest members affected by the COVID-19 pandemic. In total, 29 eligible countries have received debt service relief of close to SDR 520 million in three tranches, which were approved by the Executive Board on April 13, 2020; October 2, 2020; and April 1, 2021, to cover debt service falling due from April 14, 2021, through October 15, 2021.
CATASTROPHE CONTAINMENT AND RELIEF TRUST DEBT SERVICE RELIEF PROVIDED TO 29 ELIGIBLE MEMBER COUNTRIES
(millions of SDRs; as of April 30, 2021)
| Country | 1st Tranche Approved April 13, 2020 | 2nd Tranche Approved October 2, 2020 | 3rd Tranche Approved April 1, 2021 | |
|---|---|---|---|---|
| 1. | Afghanistan | 2.40 | 2.40 | 2.40 |
| 2. | Benin | 7.43 | 6.37 | 5.31 |
| 3. | Burkina Faso | 8.74 | 10.30 | 9.65 |
| 4. | Burundi | 5.48 | 4.82 | 4.16 |
| 5. | Central African Republic | 2.96 | 2.92 | 2.92 |
| 6. | Chad | 0¹ | 2.00 | 4.06 |
| 7. | Comoros | 0.97 | 0.81 | 0.65 |
| 8. | Democratic Republic of the Congo | 14.85 | 9.90 | 4.95 |
| 9. | Djibouti | 1.69 | 1.69 | 1.40 |
| 10. | Ethiopia | 8.56 | 4.50 | 0.47 |
| 11. | The Gambia | 2.10 | 2.10 | 1.87 |
| 12. | Guinea | 16.37 | 16.37 | 18.21 |
| 13. | Guinea-Bissau | 1.08 | 1.36 | 1.12 |
| 14. | Haiti | 4.10 | 3.98 | 3.98 |
| 15. | Liberia | 11.63 | 11.19 | 11.48 |
| 16. | Madagascar | 3.06 | 3.06 | 6.11 |
| 17. | Malawi | 7.20 | 7.20 | 7.81 |
| 18. | Mali | 7.30 | 7.50 | 7.70 |
| 19. | Mozambique | 10.89 | 9.47 | 9.47 |
| 20. | Nepal | 2.85 | 3.57 | 3.57 |
| 21. | Niger | 5.64 | 5.64 | 9.54 |
| 22. | Rwanda | 8.01 | 12.02 | 14.02 |
| 23. | São Tomé and Príncipe | 0.11 | 0.17 | 0.17 |
| 24. | Sierra Leone | 13.36 | 12.22 | 15.11 |
| 25. | Solomon Islands | 0.06 | 0.07 | 0.10 |
| 26. | Tajikistan | 7.83 | 5.22 | 3.91 |
| 27. | Tanzania | 10.28 | 8.29 | 02 |
| 28. | Togo | 3.74 | 2.31 | 0.88 |
| 29. | Yemen | 14.44 | 10.96 | 17.05 |
Chad did not have eligible debt service falling due during the period covered by the 1st tranche of debt relief.
Tanzania did not have eligible debt service falling due during the period covered by the 3rd tranche of debt relief.
Financial Terms under IMF General Resources Account Credit
This table shows the IMF’s major nonconcessional lending facilities. Stand-By Arrangements (SBAs) have long been the institution’s core lending instrument. In the wake of the 2007–09 global financial crisis, the IMF strengthened its lending toolkit. A major aim was to enhance crisis prevention instruments through the creation of the Flexible Credit Line (FCL) and the Precautionary and Liquidity Line (PLL). In addition, the Rapid Financing Instrument (RFI), which can be used in a wide range of circumstances, was created to replace the IMF’s existing emergency assistance policy. More recently, as part of its COVID-19 response, the IMF temporarily increased the annual and cumulative access limits under the emergency financing instrument (RFI) and the annual access limit to the IMF’s General Resources Account, which triggers application of the exceptional access framework. The IMF also established the Short-Term Liquidity Line (SLL) to provide a backstop to members with very strong policies and fundamentals.
The IMF’s lending through the General Resources Account (GRA) is financed primarily from the capital subscribed by member countries; each country is assigned a quota that represents its financial commitment. A member provides a portion of its quota in special drawing rights (SDRs) or the currency of another member acceptable to the IMF and the remainder in its own currency. An IMF loan is disbursed or drawn by the borrower’s purchase of foreign currency assets from the IMF with its own currency. Repayment of the loan is achieved by the borrower’s repurchase of its currency from the IMF with foreign currency.
The rate of charge on funds disbursed from the GRA is set at a margin (currently 100 basis points) over the weekly SDR interest rate. The rate of charge is applied to the daily balance of all outstanding GRA drawings during each IMF financial quarter. In addition, a one-time service charge of 0.5 percent is levied on each drawing of IMF resources in the GRA, other than reserve-tranche drawings. An up-front commitment fee (15 basis points on committed amounts of up to 115 percent of quota, 30 basis points for amounts in excess of 115 percent and up to 575 percent of quota, and 60 basis points for amounts in excess of 575 percent of quota) applies to the amount available for purchase under arrangements (SBAs, EFFs, PLLs, and FCLs) that may be drawn during each (annual) period; this fee is refunded on a proportionate basis as subsequent drawings are made under the arrangement. For SLL arrangements, the service charge is 21 basis points, and a nonrefundable commitment fee of 8 basis points is payable upon approval of an SLL arrangement.
In June 2021 (after this report was finalized) the annual and cumulative access limits for large natural disasters were temporarily increased (through the end of 2021) to 130 percent of quota and 183.33 percent of quota, respectively.
Surcharges were introduced in November 2000. A new system of surcharges took effect August 1, 2009, and was updated February 17, 2016, with some limited grandfathering for existing arrangements.
Financial Terms under IMF General Resources Account Credit
This table shows the IMF’s major nonconcessional lending facilities. Stand-By Arrangements (SBAs) have long been the institution’s core lending instrument. In the wake of the 2007–09 global financial crisis, the IMF strengthened its lending toolkit. A major aim was to enhance crisis prevention instruments through the creation of the Flexible Credit Line (FCL) and the Precautionary and Liquidity Line (PLL). In addition, the Rapid Financing Instrument (RFI), which can be used in a wide range of circumstances, was created to replace the IMF’s existing emergency assistance policy. More recently, as part of its COVID-19 response, the IMF temporarily increased the annual and cumulative access limits under the emergency financing instrument (RFI) and the annual access limit to the IMF’s General Resources Account, which triggers application of the exceptional access framework. The IMF also established the Short-Term Liquidity Line (SLL) to provide a backstop to members with very strong policies and fundamentals.
| Credit Facility (year adopted)1 | Purpose | Conditions | Phasing and Monitoring |
|---|---|---|---|
| Stand-By Arrangements (SBA) (1952) | Short- to medium-term assistance for countries with short-term balance of payments difficulties | Adopt policies that provide confidence that the member’s balance of payments difficulties will be resolved within a reasonable period | Generally quarterly purchases (disbursements) contingent on observance of performance criteria and other conditions |
| Extended Fund Facility (EFF) (1974) (Extended Arrangements) | Longer-term assistance to support members’ structural reforms to address long-term balance of payments difficulties | At approval, adopt up to a four-year program, with a structural agenda and an annual detailed statement of policies for the subsequent 12 months | Quarterly or semiannual purchases (disbursements) contingent on observance of performance criteria and other conditions |
| Flexible Credit Line (FCL) (2009) | Flexible instrument in the credit tranches to address all balance of payments needs, potential or actual | Very strong ex ante macroeconomic fundamentals, economic policy framework, and policy track record | Approved access available up front throughout the arrangement period; two-year FCL arrangements are subject to a midterm review after one year |
| Precautionary and Liquidity Line (PLL) (2011) | Instrument for countries with sound economic fundamentals and policies | Sound policy frameworks, external position, and market access, including financial sector soundness | Large front-loaded access, subject to semiannual reviews (for one- to two-year PLL) |
| Short-Term Liquidity Line (SLL) (2020) | Liquidity backstop in case of potential external shocks that generate moderate balance of payments needs | Very strong ex ante macroeconomic fundamentals, economic policy framework, and policy track record | Approved access available up front throughout the period of the arrangement and can be reconstituted through repurchase; number of successor SLLs unrestricted as long as member continues to meet qualification criteria |
| Rapid Financing Instrument (RFI) (2011) | Rapid financial assistance to all member countries facing an urgent balance of payments need | Efforts to solve balance of payments difficulties (may include prior actions) | Outright purchases without the need for full-fledged program or reviews |
| Access Limits1 | Charges2 | Repayment Schedule (years) | Installments |
| Annual: 145 percent of quota; because of the COVID-19 shock, this limit has been temporarily increased to 245 percent of quota through the end of 2021 Cumulative: 435 percent of quota | Rate of charge plus surcharge (200 basis points on amounts above 187.5 percent of quota; additional 100 basis points when outstanding credit remains above 187.5 percent of quota for more than 36 months)³ | 3¼–5 | Quarterly |
| Annual: 145 percent of quota; because of the COVID-19 shock, this limit has been temporarily increased to 245 percent of quota through the end of 2021 Cumulative: 435 percent of quota | Rate of charge plus surcharge (200 basis points on amounts above 187.5 percent of quota; additional 100 basis points when outstanding credit remains above 187.5 percent of quota for more than 51 months)³ | 4½–10 | Semiannual |
| No preset limit | Rate of charge plus surcharge (200 basis points on amounts above 187.5 percent of quota; additional 100 basis points when outstanding credit remains above 187.5 percent of quota for more than 36 months)³ | 3¼–5 | Quarterly |
| 125 percent of quota for six months; 250 percent of quota available on approval of one- to two-year arrangements; total of 500 percent of quota after 12 months of satisfactory progress | Rate of charge plus surcharge (200 basis points on amounts above 187.5 percent of quota; additional 100 basis points when outstanding credit remains above 187.5 percent of quota for more than 36 months)³ | 3¼–5 | Quarterly |
| Up to 145 percent of quota; revolving access for a period of 12 months | Rate of charge plus surcharge (200 basis points on credit outstanding above 187.5 percent of quota); SLL credit does not count toward time-based surcharges | Repurchase(s) due no later than 12 months after the purchase; repurchases reconstitute access up to the level approved | |
| Annual: 50 percent of quota (80 percent for large natural disasters); temporarily increased to 100 percent through the end of 2021 Cumulative: 100 percent of quota (133.33 percent for large natural disasters); temporarily increased to 150 percent through the end of 20213 | Rate of charge plus surcharge (200 basis points on amounts above 187.5 percent of quota; additional 100 basis points when outstanding credit remains above 187.5 percent of quota for more than 36 months)4 | 3¼–5 | Quarterly |
The IMF’s lending through the General Resources Account (GRA) is financed primarily from the capital subscribed by member countries; each country is assigned a quota that represents its financial commitment. A member provides a portion of its quota in special drawing rights (SDRs) or the currency of another member acceptable to the IMF and the remainder in its own currency. An IMF loan is disbursed or drawn by the borrower’s purchase of foreign currency assets from the IMF with its own currency. Repayment of the loan is achieved by the borrower’s repurchase of its currency from the IMF with foreign currency.
The rate of charge on funds disbursed from the GRA is set at a margin (currently 100 basis points) over the weekly SDR interest rate. The rate of charge is applied to the daily balance of all outstanding GRA drawings during each IMF financial quarter. In addition, a one-time service charge of 0.5 percent is levied on each drawing of IMF resources in the GRA, other than reserve-tranche drawings. An up-front commitment fee (15 basis points on committed amounts of up to 115 percent of quota, 30 basis points for amounts in excess of 115 percent and up to 575 percent of quota, and 60 basis points for amounts in excess of 575 percent of quota) applies to the amount available for purchase under arrangements (SBAs, EFFs, PLLs, and FCLs) that may be drawn during each (annual) period; this fee is refunded on a proportionate basis as subsequent drawings are made under the arrangement. For SLL arrangements, the service charge is 21 basis points, and a nonrefundable commitment fee of 8 basis points is payable upon approval of an SLL arrangement.
In June 2021 (after this report was finalized) the annual and cumulative access limits for large natural disasters were temporarily increased (through the end of 2021) to 130 percent of quota and 183.33 percent of quota, respectively.
Surcharges were introduced in November 2000. A new system of surcharges took effect August 1, 2009, and was updated February 17, 2016, with some limited grandfathering for existing arrangements.
Financial Terms under IMF General Resources Account Credit
This table shows the IMF’s major nonconcessional lending facilities. Stand-By Arrangements (SBAs) have long been the institution’s core lending instrument. In the wake of the 2007–09 global financial crisis, the IMF strengthened its lending toolkit. A major aim was to enhance crisis prevention instruments through the creation of the Flexible Credit Line (FCL) and the Precautionary and Liquidity Line (PLL). In addition, the Rapid Financing Instrument (RFI), which can be used in a wide range of circumstances, was created to replace the IMF’s existing emergency assistance policy. More recently, as part of its COVID-19 response, the IMF temporarily increased the annual and cumulative access limits under the emergency financing instrument (RFI) and the annual access limit to the IMF’s General Resources Account, which triggers application of the exceptional access framework. The IMF also established the Short-Term Liquidity Line (SLL) to provide a backstop to members with very strong policies and fundamentals.
| Credit Facility (year adopted)1 | Purpose | Conditions | Phasing and Monitoring |
|---|---|---|---|
| Stand-By Arrangements (SBA) (1952) | Short- to medium-term assistance for countries with short-term balance of payments difficulties | Adopt policies that provide confidence that the member’s balance of payments difficulties will be resolved within a reasonable period | Generally quarterly purchases (disbursements) contingent on observance of performance criteria and other conditions |
| Extended Fund Facility (EFF) (1974) (Extended Arrangements) | Longer-term assistance to support members’ structural reforms to address long-term balance of payments difficulties | At approval, adopt up to a four-year program, with a structural agenda and an annual detailed statement of policies for the subsequent 12 months | Quarterly or semiannual purchases (disbursements) contingent on observance of performance criteria and other conditions |
| Flexible Credit Line (FCL) (2009) | Flexible instrument in the credit tranches to address all balance of payments needs, potential or actual | Very strong ex ante macroeconomic fundamentals, economic policy framework, and policy track record | Approved access available up front throughout the arrangement period; two-year FCL arrangements are subject to a midterm review after one year |
| Precautionary and Liquidity Line (PLL) (2011) | Instrument for countries with sound economic fundamentals and policies | Sound policy frameworks, external position, and market access, including financial sector soundness | Large front-loaded access, subject to semiannual reviews (for one- to two-year PLL) |
| Short-Term Liquidity Line (SLL) (2020) | Liquidity backstop in case of potential external shocks that generate moderate balance of payments needs | Very strong ex ante macroeconomic fundamentals, economic policy framework, and policy track record | Approved access available up front throughout the period of the arrangement and can be reconstituted through repurchase; number of successor SLLs unrestricted as long as member continues to meet qualification criteria |
| Rapid Financing Instrument (RFI) (2011) | Rapid financial assistance to all member countries facing an urgent balance of payments need | Efforts to solve balance of payments difficulties (may include prior actions) | Outright purchases without the need for full-fledged program or reviews |
| Access Limits1 | Charges2 | Repayment Schedule (years) | Installments |
| Annual: 145 percent of quota; because of the COVID-19 shock, this limit has been temporarily increased to 245 percent of quota through the end of 2021 Cumulative: 435 percent of quota | Rate of charge plus surcharge (200 basis points on amounts above 187.5 percent of quota; additional 100 basis points when outstanding credit remains above 187.5 percent of quota for more than 36 months)³ | 3¼–5 | Quarterly |
| Annual: 145 percent of quota; because of the COVID-19 shock, this limit has been temporarily increased to 245 percent of quota through the end of 2021 Cumulative: 435 percent of quota | Rate of charge plus surcharge (200 basis points on amounts above 187.5 percent of quota; additional 100 basis points when outstanding credit remains above 187.5 percent of quota for more than 51 months)³ | 4½–10 | Semiannual |
| No preset limit | Rate of charge plus surcharge (200 basis points on amounts above 187.5 percent of quota; additional 100 basis points when outstanding credit remains above 187.5 percent of quota for more than 36 months)³ | 3¼–5 | Quarterly |
| 125 percent of quota for six months; 250 percent of quota available on approval of one- to two-year arrangements; total of 500 percent of quota after 12 months of satisfactory progress | Rate of charge plus surcharge (200 basis points on amounts above 187.5 percent of quota; additional 100 basis points when outstanding credit remains above 187.5 percent of quota for more than 36 months)³ | 3¼–5 | Quarterly |
| Up to 145 percent of quota; revolving access for a period of 12 months | Rate of charge plus surcharge (200 basis points on credit outstanding above 187.5 percent of quota); SLL credit does not count toward time-based surcharges | Repurchase(s) due no later than 12 months after the purchase; repurchases reconstitute access up to the level approved | |
| Annual: 50 percent of quota (80 percent for large natural disasters); temporarily increased to 100 percent through the end of 2021 Cumulative: 100 percent of quota (133.33 percent for large natural disasters); temporarily increased to 150 percent through the end of 20213 | Rate of charge plus surcharge (200 basis points on amounts above 187.5 percent of quota; additional 100 basis points when outstanding credit remains above 187.5 percent of quota for more than 36 months)4 | 3¼–5 | Quarterly |
The IMF’s lending through the General Resources Account (GRA) is financed primarily from the capital subscribed by member countries; each country is assigned a quota that represents its financial commitment. A member provides a portion of its quota in special drawing rights (SDRs) or the currency of another member acceptable to the IMF and the remainder in its own currency. An IMF loan is disbursed or drawn by the borrower’s purchase of foreign currency assets from the IMF with its own currency. Repayment of the loan is achieved by the borrower’s repurchase of its currency from the IMF with foreign currency.
The rate of charge on funds disbursed from the GRA is set at a margin (currently 100 basis points) over the weekly SDR interest rate. The rate of charge is applied to the daily balance of all outstanding GRA drawings during each IMF financial quarter. In addition, a one-time service charge of 0.5 percent is levied on each drawing of IMF resources in the GRA, other than reserve-tranche drawings. An up-front commitment fee (15 basis points on committed amounts of up to 115 percent of quota, 30 basis points for amounts in excess of 115 percent and up to 575 percent of quota, and 60 basis points for amounts in excess of 575 percent of quota) applies to the amount available for purchase under arrangements (SBAs, EFFs, PLLs, and FCLs) that may be drawn during each (annual) period; this fee is refunded on a proportionate basis as subsequent drawings are made under the arrangement. For SLL arrangements, the service charge is 21 basis points, and a nonrefundable commitment fee of 8 basis points is payable upon approval of an SLL arrangement.
In June 2021 (after this report was finalized) the annual and cumulative access limits for large natural disasters were temporarily increased (through the end of 2021) to 130 percent of quota and 183.33 percent of quota, respectively.
Surcharges were introduced in November 2000. A new system of surcharges took effect August 1, 2009, and was updated February 17, 2016, with some limited grandfathering for existing arrangements.
Concessional Lending Facilities
Three concessional lending facilities for low-income developing countries are available.
UCT-quality conditionality is the set of program-related conditions intended to ensure that IMF resources support the program’s objectives, with adequate safeguards of IMF resources.
The IMF reviews interest rates for all concessional facilities every two years. At the latest review, on May 24, 2019, the IMF Executive Board approved a modified interest-rate-setting mechanism that effectively sets interest rates to zero on the ECF and SCF through June 2021 and possibly longer. The Board also extended the 0 percent interest rate on outstanding balances of PRGT loans under a former financing facility, the Exogenous Shocks Facility, through the end of June 2021. In July 2015, the Board permanently set the interest rate on the RCF to zero.
The high (low) access norms, 120 (75) percent of quota, apply if PRGT credit outstanding is less (more) than 100 percent of quota. Norms are not applicable if PRGT credit outstanding exceeds 200 percent of quota. In such cases, access is guided by the factors mentioned in note 2. For the RCF, which has no norm, the cap on access to concessional resources is the annual limit (100 percent of quota until the end of December 2021), while for the SCF when treated as precautionary, this cap applies to the average annual access limit.
SCF arrangements treated as precautionary do not count toward the time limits.
Access norms do not apply when outstanding concessional credit is above 200 percent of quota. In those cases, access is guided by consideration of the cumulative access limit of 435 percent of quota (or exceptional access limit of 535 percent of quota) for a temporary period until the end of June 2021, expectation of future need for IMF support, and the repayment schedule.
Concessional Lending Facilities
Three concessional lending facilities for low-income developing countries are available.
| Extended Credit Facility (ECF) | Standby Credit Facility (SCF) | Rapid Credit Facility (RCF) | |
| Objective | Help low-income countries achieve and maintain a stable and sustainable macroeconomic position consistent with strong and durable poverty reduction and growth | ||
| Purpose | Address protracted balance of payments problems | Resolve short-term balance of payments needs | Provide financing to meet urgent balance of payments needs |
| Eligibility | Countries eligible for assistance under the Poverty Reduction and Growth Trust (PRGT) | ||
| Qualification | Protracted balance of payments problem; actual financing need over the course of the arrangement, though not necessarily when lending is approved or disbursed | Potential (precautionary use) or actual short-term balance of payments need at the time of approval; actual need required for each disbursement | Urgent balance of payments need when upper-credit-tranche (UCT) program is either not feasible or not needed1 |
| Poverty Reduction and Growth Strategy | IMF-supported program should be aligned with country-owned poverty reduction and growth objectives and should aim to support policies that safeguard social and other priority spending | ||
| Submission of Poverty Reduction Strategy (PRS) document | Submission of PRS document not required if original duration of SCF arrangement exceeds two years | Submission of PRS document not required | |
| Conditionality | UCT quality; flexibility on adjustment path and timing | UCT quality; aim to resolve balance of payments need in the short term | No ex post conditionality; track record used to qualify for repeat use (except under the exogenous shock window and the large natural disasters window) |
| Financing Terms2 | Interest rate: Currently zero Repayment terms: 5½–10 years | Interest rate: Currently zero Repayment terms: 4–8 years Availability fee: 0.15 percent on available but undrawn amounts under precautionary arrangement | Interest rate: Zero Repayment terms: 5½–10 years |
| Blending Requirements with General Resources Account (GRA) Financing | Based on income per capita and market access; linked to debt vulnerability. For members presumed to blend, blending of PRGT and GRA resources takes place in the ratio 1:2, with concessional access capped at the applicable norm (all GRA thereafter).3 | ||
| Precautionary Use | No | Ye s | No |
| Length and Repeated Use | From three to up to five years, with an overall maximum duration of five years; can be used repeatedly | 12 to 36 months; use is limited to three out of any six years4 | Outright disbursements; repeated use possible subject to access limits and other requirements. The limit on repeated use of twice in any 12-month period was temporarily lifted through April 6, 2021. |
| Concurrent Use | General Resources Account (Extended Fund Facility/Stand-By Arrangement) | General Resources Account (Extended Fund Facility/Stand-By Arrangement) and Policy Support Instrument | General Resources Account (Rapid Financing Instrument); credit under the RFI counts toward the RCF access limits |
| Access Policies | In response to members’ large and urgent COVID-19-related financing needs, in July 2020 the annual access limit for the PRGT was temporarily increased from 100 percent to 150 percent of quota and that for exceptional access to PRGT resources from 133 percent to 183 percent of quota through April 6, 2021. On March 22, 2021, for a temporary period until the end of June 2021, the annual access limit was increased to 245 percent of quota, and the exceptional annual access was increased to 278 percent of quota. The cumulative limit (net of scheduled repayments) remained at 300 percent of quota for normal access and 400 percent of quota for exceptional access until March 22, 2021, when the cumulative access limit was increased to 435 percent of quota and cumulative exceptional access was increased to 535 percent of quota until the end of June 2021. Limits are based on all outstanding PRGT credit. | ||
| Norms and sublimits5 | |||
| The access norm is 120 percent of quota per three-year ECF arrangement for countries with total outstanding concessional IMF credit under all facilities of less than 100 percent of quota and is 75 percent of quota per three-year arrangement for countries with outstanding concessional credit between 100 percent and 200 percent of quota. | The access norm is 120 percent of quota per 18-month SCF arrangement for countries with total outstanding concessional IMF credit under all facilities of less than 100 percent of quota and is 75 percent of quota per 18-month arrangement for countries with outstanding concessional credit of between 100 percent and 200 percent of quota. | There is no norm for RCF access under the exogenous shock and large natural disaster windows. | |
| Access limits under the exogenous shock window of the RCF were temporarily increased from 50 percent to 100 percent of quota per year and from 100 percent to 150 percent of quota on a cumulative basis, net of scheduled repurchases, starting April 6, 2020, and in effect through the end of December 2021. | |||
| Access under the regular window of the RCF is set at 50 percent of quota per year and 100 percent of quota on a cumulative basis, with an annual access norm and a per disbursement limit of 25 percent of quota. There is a current suspension of the limit on the number of disbursements during a 12-month period through the end of December 2021. Under the large natural disaster window of the RCF, access is set at 80 percent of quota annually and 133.33 percent of quota cumulatively, subject to an assessment that the disaster has caused damage equivalent to at least 20 percent of the member’s GDP. Purchases under the Rapid Financing Instrument (RFI) made after July 1, 2015, count toward the applicable annual and cumulative RCF limits. | |||
UCT-quality conditionality is the set of program-related conditions intended to ensure that IMF resources support the program’s objectives, with adequate safeguards of IMF resources.
The IMF reviews interest rates for all concessional facilities every two years. At the latest review, on May 24, 2019, the IMF Executive Board approved a modified interest-rate-setting mechanism that effectively sets interest rates to zero on the ECF and SCF through June 2021 and possibly longer. The Board also extended the 0 percent interest rate on outstanding balances of PRGT loans under a former financing facility, the Exogenous Shocks Facility, through the end of June 2021. In July 2015, the Board permanently set the interest rate on the RCF to zero.
The high (low) access norms, 120 (75) percent of quota, apply if PRGT credit outstanding is less (more) than 100 percent of quota. Norms are not applicable if PRGT credit outstanding exceeds 200 percent of quota. In such cases, access is guided by the factors mentioned in note 2. For the RCF, which has no norm, the cap on access to concessional resources is the annual limit (100 percent of quota until the end of December 2021), while for the SCF when treated as precautionary, this cap applies to the average annual access limit.
SCF arrangements treated as precautionary do not count toward the time limits.
Access norms do not apply when outstanding concessional credit is above 200 percent of quota. In those cases, access is guided by consideration of the cumulative access limit of 435 percent of quota (or exceptional access limit of 535 percent of quota) for a temporary period until the end of June 2021, expectation of future need for IMF support, and the repayment schedule.
Concessional Lending Facilities
Three concessional lending facilities for low-income developing countries are available.
| Extended Credit Facility (ECF) | Standby Credit Facility (SCF) | Rapid Credit Facility (RCF) | |
| Objective | Help low-income countries achieve and maintain a stable and sustainable macroeconomic position consistent with strong and durable poverty reduction and growth | ||
| Purpose | Address protracted balance of payments problems | Resolve short-term balance of payments needs | Provide financing to meet urgent balance of payments needs |
| Eligibility | Countries eligible for assistance under the Poverty Reduction and Growth Trust (PRGT) | ||
| Qualification | Protracted balance of payments problem; actual financing need over the course of the arrangement, though not necessarily when lending is approved or disbursed | Potential (precautionary use) or actual short-term balance of payments need at the time of approval; actual need required for each disbursement | Urgent balance of payments need when upper-credit-tranche (UCT) program is either not feasible or not needed1 |
| Poverty Reduction and Growth Strategy | IMF-supported program should be aligned with country-owned poverty reduction and growth objectives and should aim to support policies that safeguard social and other priority spending | ||
| Submission of Poverty Reduction Strategy (PRS) document | Submission of PRS document not required if original duration of SCF arrangement exceeds two years | Submission of PRS document not required | |
| Conditionality | UCT quality; flexibility on adjustment path and timing | UCT quality; aim to resolve balance of payments need in the short term | No ex post conditionality; track record used to qualify for repeat use (except under the exogenous shock window and the large natural disasters window) |
| Financing Terms2 | Interest rate: Currently zero Repayment terms: 5½–10 years | Interest rate: Currently zero Repayment terms: 4–8 years Availability fee: 0.15 percent on available but undrawn amounts under precautionary arrangement | Interest rate: Zero Repayment terms: 5½–10 years |
| Blending Requirements with General Resources Account (GRA) Financing | Based on income per capita and market access; linked to debt vulnerability. For members presumed to blend, blending of PRGT and GRA resources takes place in the ratio 1:2, with concessional access capped at the applicable norm (all GRA thereafter).3 | ||
| Precautionary Use | No | Ye s | No |
| Length and Repeated Use | From three to up to five years, with an overall maximum duration of five years; can be used repeatedly | 12 to 36 months; use is limited to three out of any six years4 | Outright disbursements; repeated use possible subject to access limits and other requirements. The limit on repeated use of twice in any 12-month period was temporarily lifted through April 6, 2021. |
| Concurrent Use | General Resources Account (Extended Fund Facility/Stand-By Arrangement) | General Resources Account (Extended Fund Facility/Stand-By Arrangement) and Policy Support Instrument | General Resources Account (Rapid Financing Instrument); credit under the RFI counts toward the RCF access limits |
| Access Policies | In response to members’ large and urgent COVID-19-related financing needs, in July 2020 the annual access limit for the PRGT was temporarily increased from 100 percent to 150 percent of quota and that for exceptional access to PRGT resources from 133 percent to 183 percent of quota through April 6, 2021. On March 22, 2021, for a temporary period until the end of June 2021, the annual access limit was increased to 245 percent of quota, and the exceptional annual access was increased to 278 percent of quota. The cumulative limit (net of scheduled repayments) remained at 300 percent of quota for normal access and 400 percent of quota for exceptional access until March 22, 2021, when the cumulative access limit was increased to 435 percent of quota and cumulative exceptional access was increased to 535 percent of quota until the end of June 2021. Limits are based on all outstanding PRGT credit. | ||
| Norms and sublimits5 | |||
| The access norm is 120 percent of quota per three-year ECF arrangement for countries with total outstanding concessional IMF credit under all facilities of less than 100 percent of quota and is 75 percent of quota per three-year arrangement for countries with outstanding concessional credit between 100 percent and 200 percent of quota. | The access norm is 120 percent of quota per 18-month SCF arrangement for countries with total outstanding concessional IMF credit under all facilities of less than 100 percent of quota and is 75 percent of quota per 18-month arrangement for countries with outstanding concessional credit of between 100 percent and 200 percent of quota. | There is no norm for RCF access under the exogenous shock and large natural disaster windows. | |
| Access limits under the exogenous shock window of the RCF were temporarily increased from 50 percent to 100 percent of quota per year and from 100 percent to 150 percent of quota on a cumulative basis, net of scheduled repurchases, starting April 6, 2020, and in effect through the end of December 2021. | |||
| Access under the regular window of the RCF is set at 50 percent of quota per year and 100 percent of quota on a cumulative basis, with an annual access norm and a per disbursement limit of 25 percent of quota. There is a current suspension of the limit on the number of disbursements during a 12-month period through the end of December 2021. Under the large natural disaster window of the RCF, access is set at 80 percent of quota annually and 133.33 percent of quota cumulatively, subject to an assessment that the disaster has caused damage equivalent to at least 20 percent of the member’s GDP. Purchases under the Rapid Financing Instrument (RFI) made after July 1, 2015, count toward the applicable annual and cumulative RCF limits. | |||
UCT-quality conditionality is the set of program-related conditions intended to ensure that IMF resources support the program’s objectives, with adequate safeguards of IMF resources.
The IMF reviews interest rates for all concessional facilities every two years. At the latest review, on May 24, 2019, the IMF Executive Board approved a modified interest-rate-setting mechanism that effectively sets interest rates to zero on the ECF and SCF through June 2021 and possibly longer. The Board also extended the 0 percent interest rate on outstanding balances of PRGT loans under a former financing facility, the Exogenous Shocks Facility, through the end of June 2021. In July 2015, the Board permanently set the interest rate on the RCF to zero.
The high (low) access norms, 120 (75) percent of quota, apply if PRGT credit outstanding is less (more) than 100 percent of quota. Norms are not applicable if PRGT credit outstanding exceeds 200 percent of quota. In such cases, access is guided by the factors mentioned in note 2. For the RCF, which has no norm, the cap on access to concessional resources is the annual limit (100 percent of quota until the end of December 2021), while for the SCF when treated as precautionary, this cap applies to the average annual access limit.
SCF arrangements treated as precautionary do not count toward the time limits.
Access norms do not apply when outstanding concessional credit is above 200 percent of quota. In those cases, access is guided by consideration of the cumulative access limit of 435 percent of quota (or exceptional access limit of 535 percent of quota) for a temporary period until the end of June 2021, expectation of future need for IMF support, and the repayment schedule.
Demand for IMF emergency financing tapered off beginning in the third quarter of 2020, and some borrowers have moved toward multiyear upper-credit-tranche-quality arrangements. In addition, the IMF provided grants for debt service relief to its poorest and most vulnerable members affected by the COVID-19 pandemic.
Between May 1, 2020, and April 30, 2021, the IMF’s financial assistance focused on the following areas:
1. Emergency financing under the RFI and RCF: The IMF received a record number of requests for emergency financing—from 39 countries (about $17 billion, of which $6 billion was disbursed to 26 low-income countries). The Executive Board temporarily doubled the access limits to the emergency financing facilities: the Rapid Credit Facility (RCF) and Rapid Financing Instrument (RFI) (see Tables 2.2 and 2.3).
2. Building on existing lending arrangements: The IMF also augmented existing arrangements to accommodate urgent new needs arising from the pandemic within the context of the ongoing policy dialogue. Between May 1, 2020, and April 30, 2021, the Executive Board approved augmentation of arrangements with nine members.
3. New lending arrangements, including precautionary arrangements: Between May 1, 2020 and April 30, 2021, the Executive Board approved eight new nonprecautionary IMF-supported arrangements with seven countries. In addition, four precautionary arrangements—three Flexible Credit Lines and one Precautionary and Liquidity Line—were made available to members.
4. Debt service relief: The Catastrophe Containment and Relief Trust (CCRT) allows the IMF to provide grants for debt relief to the poorest and most vulnerable member countries hit by catastrophic natural or public health disasters. It was enhanced in March 2020 and was subsequently used to provide debt service relief on a grant basis to the IMF’s poorest members affected by the COVID-19 pandemic. In total, 29 eligible countries have received debt service relief of close to SDR 520 million in three tranches, which were approved by the Executive Board on April 13, 2020; October 2, 2020; and April 1, 2021 (see Table 2.1).
5. Debt relief under the HIPC Initiative: On March 25, 2020, following Somalia’s clearance of its arrears to the IMF, the Executive Board determined that Somalia was qualified for debt relief under the enhanced Heavily Indebted Poor Countries (HIPC) Initiative and that Somalia had reached its HIPC decision point. By the end of April 2021, the Executive Board had approved two interim assistance payments to Somalia in the total amount of SDR 1.791 million to cover its financial obligations falling due during the periods March 25, 2020-March 24, 2021, and March 25, 2021-March 24, 2022. On March 26, 2021, the Executive Board agreed that Sudan* was eligible for debt relief assistance under the enhanced HIPC Initiative based on the preliminary assessment.
Financial Assistance Approved in FY 2021
LENDING MAP
As of April 30, 2021 (in millions of special drawing rights, M SDR)
Financial Assistance Approved in FY 2021
LENDING MAP
As of April 30, 2021 (in millions of special drawing rights, M SDR)
Financial Assistance Approved in FY 2021
LENDING MAP
As of April 30, 2021 (in millions of special drawing rights, M SDR)
Financial Assistance Approved in FY 2021
LENDING MAP
As of April 30, 2021 (in millions of special drawing rights, M SDR)
Financial Assistance Approved in FY 2021
LENDING MAP
As of April 30, 2021 (in millions of special drawing rights, M SDR)
Including prepandemic commitments, as of April 30, 2021, total undisbursed lending commitments and credit outstanding under the IMF’s Genera Resources Account were about SDR 184 billion; the corresponding total under the PRGT, which provides concessional lending to low-income countries, was about SDR 14.8 billion.
These emergency pandemic procedures lapsed in October 2020.
High-access procedures require an informal Executive Board session based on a short staff note that includes discussion of program strength, capacity to repay, and debt vulnerabilities. The high-access procedures are triggered when (1) a request for IMF financing brings total access to more than 180 percent of a country’s quota over a 36-month period or (2) total outstanding credit from the PRGT exceeds or is projected to exceed 225 percent of a country’s quota. In March 2021, these high-access thresholds were temporarily increased to 240 percent of quota for the “flow trigger” through the end of 2023 and 300 percent for the “stock trigger” for the period through the end of June 2021.
The Executive Boards of the IMF and World Bank approved Sudan’s eligibility for debt relief under the enhanced Heavily Indebted Poor Countries Initiative on June 29, 2021 (after this report was finalized). For more information, visit www.imf.org/sudan.
