Policy Papers

Charges and Maturities-Proposals for Reform

Publication Date:

December 12, 2008

Electronic Access:

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Summary:

This paper focuses on two key features of the financial terms and maturities of high access to the Fund’s General Resources Account (GRA): surcharges and time-based repurchase expectations. Surcharges, which together with the adjusted rate of charge determine the cost of high access to Fund credit, currently vary across facilities and are linked to either the level of access or the duration of lending. The policy on repurchase expectations is an administrative mechanism that encourages accelerated repayment terms, effectively shortening loan maturities. Both policies on surcharges and repurchase expectations were introduced to mitigate credit risks and safeguard the revolving nature of Fund resources.

Charges and Maturities and Proposals for Reform, Supplement 1

Charges and Maturities and Proposals for Reform, Supplement 2

Series:

Policy Papers

Subject:

Access limits Charges Fund facilities General Resources Account Rate of charge Repurchases Safeguards Use of Fund resources