International Financial Facilities

Credit Tranches and Extended Fund Facility:

Stand by Arrangements (1952): Designed to address balance of payments difficulties that are short term or cyclical; length of Stand by Arrangements is typically 12-18 months with a legal maximum of 3 years.

Access limits: Annual: 100% of quota; cumulative: 300% of quota.

Maturities: early repayment / obligatory repayment > 2 ¼ to 4 years / 3 ¼ to 5 years.

Charges: GRA rate of charge 1+ level based surcharges: 100 basis points on amounts above 200% of quota, and 200 basis points above 300% of quota.

Conditions: Member adopts policies that provide confidence that its balance of payments difficulties will be resolved within a reasonable period.

Phasing and monitoring: Quarterly purchases contingent on observance of performance criteria and other conditions.

Extended Fund facility Arrangement (1974):
Provides longer term assistance to support structural reforms that address longer term balance of payments difficulties. Extended Fund Facility Arrangements have upper credit tranche conditionality for access above 25% of quota.

Access limits: Annual: 100% of quota; cumulative: 300% of quota.

Maturities (early repayment) / (obligatory repayment): 41/2 to 7 years / 41/2 to 10 years.

Charges: GRA rate of charge + level-based surcharges: 100 basis points on amounts above 200% of quota, and 200 basis points above 300% of quota.

Conditions: Member adopts 3-year program, with structural agenda, and provides annual detailed statement of policies for the next 12 months.

Phasing and monitoring: Quarterly or semi-annual purchases contingent on observance of performance criteria and other conditions.

Special facilities:

Supplemental Reserve Facility (1997): Provides short term assistance to members with balance of payments difficulties related to a sudden and disruptive loss of market confidence.

Access limits: None; this facility is available only when access under associated regular arrangement would otherwise exceed either annual or cumulative limit.

Maturities (early repayment) / (obligatory repayment): 1 – 1 ½ years / 2 – 2 ½ years.

Charges: GRA rate of charge + 300 basis points rising to 500 after 2 ½ years.

Conditions: Available only in context of a regular arrangement with associated program and with strengthened policies to address a loss of market confidence.

Phasing and monitoring: Facility available for one year, front loaded access with two or more purchases; subsequent purchases subject to conditionality.

Contingent Credit Line (1999): Serves as a precautionary line of defense for members with strong track records of good policies in normal times to help them resist external financial contagion.

Access limits: None, but expected to be 300-500% of quota in practice. Maturities (early repayment) / (obligatory repayment): 1-1½ years / 2 – 2 ½ years. Charges: GRA rate of charge + 150 basis points rising to 350 basis points after 2½ years.

Conditions: Eligibility criteria: (i) no balance of payments need from the outset;(ii) positive assessment of policies by the IMF; (iii) constructive relations with private creditors and satisfactory progress in limiting external vulnerability; (iv) satisfactory economic program.

Phasing and monitoring: Resources approved for up to one year. For small purchases 5 to 25% of quota will be available on approval. One-third of committed resources will be released on activation with the disbursement of the remainder determined by a post-activation review.

Compensatory Financing Facility (1963): Covers a shortfall in a member’s export earnings and services receipts as well as an excess in cereal import costs that are temporary and arise from events beyond the members’ control. This facility was streamlined in 2000, with the elimination of the contingency component of the former.

Access limits: Maximum 45% of quota for each element – export shortfall and excess cereal import costs – a combined limit of 55% of quota for both components.

Maturities (early repayment) / (obligatory repayment): 2 ¼ — 4 years / 3 ¼ –5 years.

Charges: GRA rate of charge; not subject to surcharges.

Conditions: Available only when a member has an arrangement with upper credit tranche conditionality or when its balance of payments position, apart from its export shortfall, is otherwise satisfactory.

Phasing and monitoring: Typically disbursed over a minimum of six months in accordance with the phasing provisions of the arrangement.