IMF financing operations
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IMF lending instruments
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 IMF may grant emergency assistance to member countries facing urgent balance of payments needs using the Rapid Financing Instrument. The IMF interest rate applies to all non-concessional financing mechanisms – i.e. the “rate of charge”1 which is market-based. Loans in larger amounts (above a certain threshold) carry a surcharge.
- Concessional lending: Low-income countries can borrow at concessional lending rates via the Extended Credit Facility, the Stand-By Credit Facility and the Rapid Credit Facility2. The interest rate for concessional lending is zero percent until the end of 2016.
GRA account lending
In March 2016, 15 loan agreements were in effect3 in the General Resources Account (GRA), including in particular the precautionary credit lines, for a total of 87 billion SDR, including 12 billion outstanding. The 36 billion in outstandings for expired agreements are added to this figure, for a total amount outstanding of 48 billion.
[1] The rate of charge is based on the SDR interest rate, which is recalculated every week to take into account short-term interest rate fluctuations in the major international monetary markets. The maximum amount a country may borrow from the IMF – the “access limit” – varies based on the type of loan granted, but is typically a multiple of the quota. These limits may be exceeded in exceptional cases. There is no predefined cap on access to the Stand-By Arrangements, Flexible Credit Line and Extended Fund Facility.
[2] See IMF factsheet IMF Support for Low-Income Countries
[3] See Key IMF Financial Statistics, in particular p.3
Updated on: 06/12/2018 10:34