Terms and Conditions of IMF Lending
|Repurchase (Repayment) Terms2|
|Credit Facility||Conditions||Phasing and Monitoring||Access Limits||Charges1||Obligation Schedule (years)||Expectation Schedule (years)||Installments|
|The Credit Tranches (1952)||Adopt policies that provide confidence that the member’s balance of payments difficulties will be resolved within a reasonable period||Quarterly purchases (disbursements) contingent onobservance of performance criteria and other conditions||Annual: 100% of quota; cumulative: 300% ofquota||Basic rate plus surcharge (100 basis points on amounts above 200% of quota; 200 basis points onamounts above 300%)3||3 ¼-5||2 ¼-4||Quarterly|
|Extended Fund Facility (1974)||Adopt 3-year program, with structural agenda, with annual detailed statement of policies for the next 12 months||Quarterly or semiannual purchases (disbursements) contingent on observance of performance criteria and other conditions||Annual: 100% of quota; cumulative: 300% of quota||Basic rate plus surcharge (100 basis points on amounts above 200% of quota; 200 basis points on amounts above 300%)3||4 ½-10||4 ½-7||Semiannual|
|Supplemental Reserve Facility (1997)||Available for capital account crisis only in context of Stand-By or Extended Arrangements with associated program and with strengthened policies to address loss of market confidence||Facility available for one year, with two or more purchases (disbursements)||No access limits; access under the facility only when access under associated regular arrangement would otherwise exceed either annual or cumulative limit||Basic rate plus surcharge (300 basis points rising by 50 basis points a year after first disbursement and every 6 months thereafter to a maximum of 500 basis points)||2 ½-3||2-2 ½||Semiannual|
|Compensatory Financing Facility (1988)||Available only when the shortfall/excess is largely beyond the control of the authorities and a member has an arrangement with upper credit tranche conditionality, or when its balance of payments position excluding the shortfall/excess is satisfactory||Stand-alone disbursements or, if there is an arrangement, disbursements are in two phases||45% of quota each for export and cereal components. Combined limit of 55% of quota for both components||Basic rate||3 ¼-5||2 ¼- 4||Quarterly|
|Emergency Assistance (1) Natural disasters (1962) (2) Post-Conflict (1995)||(1) Reasonable efforts to overcome balance of payments difficulties (2) Focus on institutional and administrative capacity building to pave the way toward an upper credit tranche arrangement or PRGF||None, although post conflict assistance can be segmented into two or more purchases||Generally limited to 25% of quota, though larger amounts can be made available in exceptional cases||Basic rate. Subject to resource availability, PRGF-eligible members would—upon request—receive a subsidy to bring the rate of charge on the financial assistance to 0.5% per annum from resources contributed to an administered account.||3 ¼-5||Not applicable||Quarterly|
|Poverty Reduction and Growth Facility (1999)||Adopt 3-year PRGF-supported program. PRGF-supported programs are based on a Poverty Reduction Strategy Paper (PRSP) prepared by the country in a participatory process, and integrating macroeconomic, structural, and poverty reduction policies||Semiannual disbursements (or quarterly where closer monitoring is needed) contingent on observance of performance criteria and reviews||140% of quota; 185% of quota in exceptional circumstances||0.50%||5 ½-10||Not applicable||Semiannual|
|Exogenous Shocks Facility (2005)||Have a balance of payments need whose primary source is a sudden and exogenous shock. Available in support of a macroeconomic and structural adjustment program, but only if structural reforms needed to adjust to the shock are not of the type that would normally be supported by a PRGF arrangement.||Semiannual or quarterly disbursements, contingent on observance of performance criteria and reviews.||50% of quota, though larger amounts can be made available in exceptional circumstances.||0.50%||5 ½-10||Not applicable||Semiannual|
The basic rate of charge on funds disbursed from the General Resources Account (GRA) is set as a margin in basis points above the weekly interest rate on SDRs and is applied to the daily balance of all outstanding GRA drawings during each IMF financial quarter. In addition to the basic rate plus surcharge, an up-front commitment fee (25 basis points on committed amounts up to 100% of quota, 10 basis points thereafter) is charged on the amount that may be drawn during each (annual) period under a Stand By or Extended Arrangement. The fee is, however, refunded on a proportionate basis as subsequent drawings are made under the arrangement. A one-time service charge of 0.5 percent is levied on each drawing of IMF resources in the General Resources Account, other than reserve tranche drawings, at the time of the transaction.
For purchases made after November 28, 2000, members are expected to make repurchases (repayments) in accordance with the schedule of expectations; the IMF may upon request by a member amend the schedule of repurchase expectations if the Executive Board agrees that the member’s external position has not improved sufficiently for repurchases to be made.
Surcharges are applied to the combined amount of outstanding credit resulting from purchases made after November 2000 in the credit tranches and under the EFF.