## The Rapid Financing Instrument (RFI)

## Source details

**Canonical URL:** [The Rapid Financing Instrument (RFI)](https://www.imf.org/-/media/files/factsheets/english/2023-rapid-financing-instrument.pdf)

## Other formats

- [Markdown version](/-/media/files/factsheets/english/2023-rapid-financing-instrument.pdf.md)
- [Structured JSON version](/-/media/files/factsheets/english/2023-rapid-financing-instrument.pdf.json)

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### Purpose
- Provide rapid, low-access financial assistance to countries facing urgent balance of payments needs that, if not addressed, would result in an immediate and severe economic disruption.
- Respond to situations where a full-fledged economic program is not necessary because the need is transitory and limited in nature, or not feasible because of policy design, capacity and other implementation constraints.

### Eligibility
- All member countries.
- For those eligible for the Poverty Reduction and Growth Trust (PRGT) there is the concessional Rapid Credit Facility (RCF).

### Windows
- Three windows:
  - Regular: urgent balance of payments needs caused by sources including domestic instability, exogenous shocks and fragility.
    - Access up to 50 percent of quota per year and 150 percent of quota on a cumulative basis.
    - A higher cumulative access limit (175 percent of quota) would be applied if the time-bound food shock window is used.
  - Large natural disaster: urgent balance of payments needs arising from natural disasters where damage is assessed to be equivalent to or exceed 20 percent of the member’s GDP.
    - Access of up to 80 percent of quota per year and 183.33 percent of quota on a cumulative basis.
  - Food shock: urgent balance of payments needs due to acute food insecurity, a sharp increase in the food or fertilizer import bill, or a shock to cereal exports.
    - Access of up to 50 percent of quota during the 12-month period from September 30, 2022 to September 29, 2023.
    - Access under the food shock window will be additional to the annual access limits of other windows.

### Conditionality and Review Modalities
- Support provided without ex-post program-based conditionality or reviews, although prior actions sometimes apply.
- Economic policies should aim at addressing the underlying balance of payments difficulties and support the country's economic objectives.
- No reviews.

### Terms
- Duration: Single Disbursement.
- Repayment: Within 3¼ to 5 years.
- Interest rate: Financial assistance provided under the RFI is subject to the same financing terms as the Flexible Credit Line (FCL), the Precautionary and Liquidity Line (PLL) and Stand-By Arrangements (SBA).

### Access and Use
- Current cumulative access limits of the regular shock window and large natural disaster window will be reviewed by end-June 2023.
- A review of the food shock window is also expected to be conducted by end-June 2023.
- One-off use, in general.
- Scope for repeated use within any three-year period if:
  - (i) the need is caused primarily by an exogenous shock, or
  - (ii) the country has urgent balance of payments needs and has established a track record of adequate macroeconomic policies, including through an SMP (or PMB, where applicable), prior to the request.

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