## The Post Financing Assessment (PFA)

## Source details

**Canonical URL:** [The Post Financing Assessment (PFA)](https://www.imf.org/-/media/files/factsheets/english/2023-post-financing-assessment.pdf)

## Other formats

- [Markdown version](/-/media/files/factsheets/english/2023-post-financing-assessment.pdf.md)
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### Purpose
- Ensure that a country that has completed an IMF lending program maintains economic and financial health.
- Ensure that IMF funds can be repaid to be made available to other member countries.
- When necessary, IMF staff can advise on policy actions to correct macroeconomic imbalances.

### Criteria
- Generally expected for all member countries that have substantial IMF credit outstanding following the expiration of their lending programs.
- The IMF’s Managing Director recommends a PFA to the Executive Board when the outstanding credit of a country to the IMF exceeds any of these thresholds:
  - 200 percent of quota from the General Resources Account (GRA), or from Poverty Reduction and Growth Trust (PRGT), or a combination of them.
  - SDR 1.5 billion for credit from the GRA
  - SDR 0.38 billion from the PRGT, and it no longer has program involvement of any kind with the IMF.
- Exceptions where a PFA might not be needed even if criteria are met:
  - When a successor borrowing arrangement, PCI, PSI or an SMP is expected to be approved within six months.
  - When the policies and external position of the member country are determined to be sufficiently strong that a PFA would be unwarranted.
- Cases where a PFA may be required even if outstanding credit is below thresholds:
  - If economic developments call into question the country’s progress toward external viability.

### Timing
- The IMF Executive Board decides on a PFA at the time of the last lending program review if the country’s outstanding credit is expected to exceed any of the specified thresholds and no follow-up program engagement is envisaged.
- The Board can decide on a PFA for a country at any time during the lending program or after the program expires, typically presented to the Board for lapse of time approval.

### Duration
- In effect until the country’s outstanding credit to the IMF falls below the applicable thresholds.
- The IMF’s Executive Board can agree to discontinue a PFA―even before outstanding credit falls below the thresholds―if strong policies are in place and the external position is sound.

### Process
- Countries undertake more frequent formal consultations with the IMF than is the case under the IMF’s policy advice cycle, with a particular focus on macroeconomic and structural policies, and risks that have implications for the country’s external viability and capacity to repay the IMF.
- There is normally one standalone PFA staff report issued to the Executive Board in a 12-month period.

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_Source: https://www.imf.org/-/media/files/factsheets/english/2023-post-financing-assessment.pdf_