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IMF POLICY PAPER
REVIEW OF ENHANCED ACCESS LIMITS UNDER THE RAPID CREDIT FACILITY AND RAPID FINANCING INSTRUMENT
October 5, 2020
IMF staff regularly produces papers proposing new IMF policies, exploring options for reform, or reviewing existing IMF policies and operations. The following documents have been released and are included in this package:
A Press Release summarizing the views of the Executive Board as expressed during its September 28, 2020 consideration of the staff report.
The Staff Report, prepared by IMF staff and completed on September 18, 2020 for the Executive Board’s consideration on September 28. 2020.
A Staff Supplement
The IMF’s transparency policy allows for the deletion of market-sensitive information and premature disclosure of the authorities’ policy intentions in published staff reports and other documents.
Electronic copies of IMF Policy Papers are available to the public from
http://www.imf.org/external/pp/ppindex.aspx
International Monetary Fund
Washington, D.C.
© 2020 International Monetary Fund
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REVIEW OF ENHANCED ACCESS LIMITS UNDER THE RAPID CREDIT FACILITY AND RAPID FINANCING INSTRUMENT
September 18, 2020
Executive Summary
The temporary increase in access limits under IMF emergency financing instruments will expire on October 5, 2020, unless extended. Access limits under emergency instruments (the Rapid Credit Facility (RCF) and Rapid Financing Instrument (RFI)) were increased in April 2020 for a period of six months, from 50 to 100 percent of quota annually and from 100 to 150 percent of quota cumulatively. The increased limits are subject to review and can be extended before their expiration.
It is proposed to extend the period of higher access limits for emergency financing for a period of six months, through April 6, 2021. Against a background of continued pandemic-related disruption, staff expects there could be significant demand for emergency lending in the October 2020–April 2021 period, including from countries with pending requests and from countries that received emergency support at levels less than the maximum amounts available. A six-month extension would give more time for countries to benefit from higher access limits under emergency financing.
Approved By
Seán Nolan, Yan Liu, and Christian Mumssen
Prepared by a staff team from the Strategy, Policy, and Review Department (SPR), the Finance Department (FIN), and the Legal Department (LEG). The SPR team was led by Rima Turk and comprised Kyungsuk Lee and Kiichi Tokuoka. The FIN team was comprised of Maria Albino, Joel Okwuokei, and Nelson Sobrinho. The LEG team was led by Kyung Kwak and comprised Ioana Luca. The work was performed under the supervision of Bikas Joshi and Wes McGrew (SPR), Gilda Fernandez and Olaf Unteroberdoerster (FIN), and Gabriela Rosenberg (LEG). Overall guidance was provided by Sean Nolan (SPR), Christian Mumssen (FIN), and Bernhard Steinki (LEG). The paper benefited from excellent research assistance provided by Yudong Rao. Administrative assistance was provided by Merceditas San Pedro-Pribram and Phyo Zin (SPR).
Contents
INTRODUCTION
USE OF THE EMERGENCY FINANCING INSTRUMENTS SINCE THE ONSET OF THE PANDEMIC
PROPOSALS TO EXTEND THE HIGHER ACCESS LIMITS IN THE EMERGENCY FINANCING INSTRUMENTS
ISSUES FOR DISCUSSION
BOXES
1. Summary of Key Aspects of Qualification for Emergency Financing
2. Staff Guidance on Addressing Governance Safeguards for Emergency Financing
FIGURE
1. Borrowing Space for 27 Members That Have Already Received Some Emergency Financing
ANNEX
I. Members’ Use of Fund Financing Since the Onset of the Pandemic
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The Review of Enhanced Access Limits under the Rapid Credit Facility and Rapid Financing Instrument—Extending Suspension of High Access Procedures for Financing Requests under the Rapid Credit Facility to April 6, 2021—Supplementary Information
September 22, 2020
Approved By
Seán Nolan
Prepared by Strategy, Policy, and Review Department (SPR) comprising Wes McGrew and Atticus Weller.
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