## The Stand-by Arrangement (SBA)

## Source details

**Canonical URL:** [The Stand-by Arrangement (SBA)](https://www.imf.org/-/media/files/factsheets/english/2025/the-standby-arrangement-sba2025final.pdf)

## Other formats

- [Markdown version](/-/media/files/factsheets/english/2025/the-standby-arrangement-sba2025final.pdf.md)
- [Structured JSON version](/-/media/files/factsheets/english/2025/the-standby-arrangement-sba2025final.pdf.json)

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### Purpose
- The IMF provides the Stand-by Arrangement (SBA) to respond flexibly to countries’ external financing needs by supporting their adjustment policies with short-term financing.
- The SBA can serve as a precautionary arrangement.

### Eligibility
- Available to all IMF member countries facing actual or potential external financing needs.
- Most often used by advanced and emerging market countries.
- Low-income countries sometimes use the SBA together with the Standby Credit Facility (SCF).

### Conditionality
- Countries’ economic policies must address the problems that led the country to seek funding.
- Disbursements are conditional on the observance of quantitative performance criteria.
- Progress in implementing structural measures critical to achieving program objectives is assessed holistically, including via benchmarks.

### Review modalities
- Access to IMF resources under the SBA occurs in tranches (phasing) with periodic reviews of policies and program implementation.
- The IMF’s Executive Board regularly assesses program performance and can adjust the program to adapt to economic developments.

### Duration and repayment terms
- Duration: Flexible; typically covers a period of 12–24 months, but not more than 36 months.
- Repayment: Due within 3¼-5 years of disbursement.
- Repayment schedule: Each disbursement is repaid in eight equal quarterly installments beginning 3¼ years after the date of each disbursement.

### Interest rate, surcharges, and fees
- Lending rate components:
  - The market-determined Special Drawing Rights (SDR) interest rate, which has a minimum floor of 5 basis points, and a margin (currently 60 basis points), together known as the basic rate of charge.
  - Surcharges:
    - A surcharge of 200 basis points is paid on the amount of credit outstanding above 300 percent of quota.
    - If credit remains above 300 percent of quota for more than 36 months, an additional time-based surcharge of 75 basis points applies.
    - Surcharges are designed to discourage large and prolonged use of IMF resources.
- Commitment fees (levied at the beginning of each 12-month period on amounts that could be drawn in the period):
  - 15 basis points for committed amounts up to 200 percent of quota.
  - 30 basis points on committed amounts above 200 percent and up to 600 percent of quota.
  - 60 basis points on amounts exceeding 600 percent of quota.
  - Fees are refunded pro rata if amounts are drawn during the course of the relevant period; if a country borrows the entire amount, the fee is fully refunded. No refund is made when countries do not draw.
- Service charge: 50 basis points applied on each amount drawn.

### Access modalities and flexibility
- Flexible on amounts to lend and timing of disbursement:
  - Normal access:
    - Annual access limit is set at 200 percent of quota for any 12-month period.
    - Cumulative access limit over the life of the arrangement net of repayments is set at 600 percent of quota.
  - Exceptional access: Decided on a case-by-case basis under the Exceptional Access Policy.
  - Front-loaded access: Available when warranted by the strength of the country’s policies and the nature of its adjustment and financing needs.
  - Rapid access: Approval accelerated under the Emergency Financing Mechanism.
  - Precautionary access: Used when countries do not intend to draw on approved amounts but retain the option to do so.

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_Source: https://www.imf.org/-/media/files/factsheets/english/2025/the-standby-arrangement-sba2025final.pdf_