T he SBA is one of several lending facilities under the Fund’s General Resources Account (GRA). Within these guidelines, the SBA provides flexibility in terms of the amounts to lend and timing of disbursement. The length of an SBA is flexible, and typically covers a period of 12–24 months, but no more than 36 months.Īccess to IMF financial resources under SBAs is guided by a member country’s need for financing, capacity to repay, and track record with use of IMF (and, more recently, advanced) member countries, since low-income countries have a range of concessional instruments tailored to their needs. However, SBAs are more often used by middle income The SBA framework allows the Fund to respond flexibly to countries’ external financing needs-and to support their adjustment policies with short-term financing.Īll member countries facing actual or potential external financing needs are eligible for SBAs subject to IMF policies. Lending tailored to member countries’ needs The reform also enables broader high-access on a precautionary basis. Conditions were streamlined and simplified, and more funds were made available up front. The SBA was upgraded in 2009 along with the Fund’s broader toolkit to be more flexible and responsive to member countries’ needs.
Since its creation in June 1952, the IMF’s Stand-By Arrangement (SBA) has been the workhorse lending instrument for emerging and advanced market countries. In an economic crisis, countries often need financing to help them overcome their balance of payments problems.
0 kommentar(er)
