Policy Papers

The Executive Board of the International Monetary Fund (IMF) considered a series of papers to reform the Fund's nonconcessional lending framework. This culminated in the approval of a major overhaul of the IMF’s lending framework, including the creation of a new Flexible Credit Line (FCL). The changes to the IMF’s lending framework which are described in <a href="/external/np/pp/eng/2009/031309A.pdf">GRA Lending Toolkit and Conditionality&#8212;Reform Proposals</a>and <a href="/external/np/pp/eng/2009/031909.pdf">GRA Lending Toolkit and Conditionality&#8212;Reform Proposals&#8212;Revised Proposed Decisions</a> include: <br /> &#8226; modernizing IMF conditionality for all borrowers,<br /> &#8226; introducing a new Flexible Credit Line,<br /> &#8226; enhancing the flexibility of the Fund’s traditional stand-by arrangement,<br /> &#8226; doubling normal access limits for nonconessional resources,<br /> &#8226; simplifying cost and maturity structures, and<br /> &#8226; eliminating certain seldom-used facilities.<br /> The series of papers are: <a href="/external/np/pp/eng/2009/020609A.pdf">Review of Fund Facilities&#8212Analytical Basis for Fund Lending and Reform Options</a>, <a href="/external/np/pp/eng/2009/012909.pdf">Conditionality in fund-Supported Programs&#8212;Purposes, Modalities and Options for Reform</a>, <a href="/external/np/pp/eng/2008/121208A.pdf">Charges and Maturities and Proposals for Reform</a>, <a href="/external/np/pp/eng/2008/121208B.pdf">Supplement 1</a> and <a href="/external/np/pp/eng/2008/121208C.pdf">Supplement 2</a>, <a href="/external/np/pp/eng/2009/020609A.pdf"> Review of Fund Facilities—Analytical Basis for Fund Lending and Reform Options</a>, and <a href="/external/np/pp/eng/2008/090208E.pdf">Review of Limits on Access to Financing in the Credit Tranches and Under the Extended Fund Facility, and Overall Access Limits Under the General Resources Account</a> provide the background on the earlier discussion of reforms in each of these areas.