The Rapid Credit Facility (RCF)
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- The Rapid Credit Facility (RCF)
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Bibliographic details
- Published: March 10, 2023
Overview
- The Rapid Credit Facility (RCF) provides fast concessional financial assistance to low-income countries (LICs) facing an urgent balance of payments need.
- The RCF is one of the facilities under the Poverty Reduction and Growth Trust (PRGT) that provide flexible financial support tailored to the diverse needs of LICs, including in times of crisis.
- Last update: April 2025
Purpose
- Respond to situations where a full-fledged economic program is not necessary because the need is transitory and limited in nature, or not feasible, including when facing capacity constraints of policy implementation.
- Provide policy support that may help catalyze foreign aid.
Eligibility and Windows
- Exogenous shock: Urgent balance of payments needs caused by a sudden, exogenous shock.
- Large natural disaster: Urgent balance of payments needs from natural disasters where damage is assessed to be equivalent to or exceed 20 percent of the member’s GDP.
- The Food Shock Window expired at end-March 2024.
Conditionality
- Economic policies should aim at addressing the underlying balance of payments difficulties and support the country's poverty reduction and growth objectives.
Access, Use, and Disbursement Rules
- Repeat use within any three-year period is possible if the balance of payments need is caused primarily by a sudden and exogenous shock or the need arises in a country which has established a 6-month track record of adequate macroeconomic policies, including through a Staff Monitored Program, prior to the request.
- No more than two disbursements may be made in any 12-month period.
Terms (headings noted; specific details not provided in the source)
- Repayment
- Interest rate
- Access
Content in this bundle
- The Rapid Credit Facility
References