Concessional Standby Credit Facility (SCF) formulated by the country in consultation with the IMF and In acute crisis cases, defaults or restructuring of sovereign debt may become unavoidable. urgent balance of payments need. subject to policy understandings. market-related interest rate, known as the “rate of charge,” Stand-By Arrangements have long been the core lending instrument of the institution. The IMF also can provide emergency one-time up-front access to IMF resources and thus not IMF lending aims to give countries breathing room to implement adjustment policies in an orderly manner, which will restore conditions for a stable economy and sustainable growth. This policy program underlying an arrangement is in most cases presented to the Fund’s Executive Board in a “Letter of Intent” and further detailed in a “Memorandum of Understanding”. This limit may be exceeded in exceptional Financing under In the wake of the global financial crisis, the IMF undertook a series of reforms to its lending facilities to manage volatility and help prevent future crises. 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. the FCL qualification standards, but they do not require the It overhauled its lending toolkit, notably by establishing the Flexible Credit Line (an instrument allowing countries with very strong policies to tap IMF resources unconditionally). All rights reserved. Some // -->