Adequacy of Fund Resources – Preliminary Considerations

March 5, 2021

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Adequacy of Fund Resources – Preliminary Considerations, (USA: International Monetary Fund, 2021) accessed October 6, 2024

Summary

This paper provides background for initial considerations on the appropriate size of the Fund’s overall lending capacity over the medium term. The paper reviews developments in the demand for Fund resources during the global crisis. The paper also argues that the global economy is changing in fundamental ways, with implications for the size of the Fund. Against this background, the analysis suggests that the current overall lending capacity of the Fund should be seen as a minimum. Additional resources would be needed if the Fund were to introduce changes to its lending framework. While the financing structure of the Fund should be largely quota-based, staff sees a strong case for continuing to backstop quota resources with a standing borrowing facility. Maintaining the Fund’s current overall lending capacity would require swift action by the membership.

Subject: Credit, Emerging and frontier financial markets, Financial crises, Financial markets, Global financial crisis of 2008-2009, Money, Systemic crises

Keywords: Borrowed resource, Credit, Emerging and frontier financial markets, Financing needs, Fund financing, Fund resource, Global, Global financial crisis of 2008-2009, IMF financing increase, Lending capacity, PP, Quota resource, Systemic crises

Publication Details

Pages:

46
Volume:

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DOI:

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Issue:

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Series:

Policy Paper No. 2021/006
Stock No:

PPEA2021006
ISBN:

9781513571171
ISSN:

2663-3493

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