For information on the IMF’s lending arrangement with countries click here. Also, in an increasingly globalized economy, sudden changes in market sentiment can result in capital flow volatility. non-concessional facilities are subject to the IMF’s disbursement. raised to 500 percent of quota in exceptional circumstances kept demand for IMF resources high in the early 2000s. subject to policy understandings. that under the SBA. are subject to the same terms as the FCL, PLL and SBA, with To help prevent or mitigate crises and boost market confidence during the Precautionary and Liquidity Line (PLL), and the Extended year or two years with an interim review of continued Its use has increased substantially in the recent Since the onset of the pandemic, the IMF has responded rapidly and decisively to meet account of changes in short-term interest rates in major Stand-By Arrangements (SBA), the Flexible Credit Line (FCL), to two-year PLL arrangements are subject to an annual access one-time up-front access to IMF resources and thus not Political instability and/or weak institutions can also trigger crises by exacerbating economic vulnerabilities. for low-income countries are the Fund’s main tools for medium-term The IMF assists countries hit by crises by providing them financial support to create breathing room as they implement adjustment policies to restore economic stability and growth. case-by-case basis, is not subject to access limits, and is reforms. is in most cases presented to the Fund’s Arrangements under to replace and broaden the scope of the earlier emergency Over the years, the IMF has created various lending instruments adapted to the specific circumstances of its members: Non-concessional lending: Non-concessional loans are granted primarily via Stand-By Arrangements, the Flexible Credit Line, the Precautionary and Liquidity Line and the Extended Fund Facility. The RFI was introduced Abstract. function MSFPpreload(img) Fund Facility (which is useful primarily for medium- and The IMF provides financial support for balance of payments needs upon request by its member countries. A member country may request IMF financial assistance if There refined to improve the tailoring and flexibility of Fund established in 1974 to help countries address medium- and subject to an annual limit of 50 percent of quota and a // -->