Review of The Cumulative Access Limits Under The Rapid Financing Instrument and The Rapid Credit Facility

Policy Papers, June 30, 2023

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Canonical URL: Review of The Cumulative Access Limits Under The Rapid Financing Instrument and The Rapid Credit Facility

The IMF extended the temporarily higher Cumulative Access Limits under the Fund’s Emergency Financing instruments:
- the Rapid Financing Instrument (RFI) under the General Resources Account, and
- the Rapid Credit Facility (RCF) under the Poverty Reduction and Growth Trust.
Purpose: to ensure the Fund can continue to support member countries that accessed the Fund’s emergency financing during the COVID-19 pandemic in case of renewed emergency situations.
Publication date: June 30, 2023.

RFI cumulative access limits:
- The temporarily higher cumulative access limits under the RFI will be maintained until end-June 2024.
- Rationale: most RFI recipients will have repaid a significant part of their past emergency financing by that date.
RCF cumulative access limits:
- The temporarily higher cumulative access limits under the RCF will be maintained until the completion of the 2024/25 comprehensive review of the Fund’s concessional facilities and financing.
- Rationale: the RCF has a longer repayment schedule for RCF financing, motivating a longer extension.

Continued availability of elevated cumulative access limits for emergency financing instruments preserves the Fund’s ability to respond to renewed emergencies following the COVID-19 pandemic.
Different time horizons for RFI and RCF extensions reflect differences in repayment schedules and expected debt-service progress by recipients.

Subject: Balance of payments, Foreign aid, Health, Monetary policy, Money, Political economy
Keywords: Balance of payments need, COVID-19, Credit, Cumulative Access Limits, Emergency assistance, FSW experience, FSW financing, FSW relative, Global, LND window, Rapid Credit Facility, Rapid Financing Instrument, RCF ES window, RFI recipient, UCT-quality program