IMF Lending Lifeline: Addressing Urgent Financing Needs Brought on by the Pandemic

IMF Blog, November 16, 2020

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Canonical URL: IMF Lending Lifeline: Addressing Urgent Financing Needs Brought on by the Pandemic

Publication date: November 16, 2020
The COVID-19 pandemic triggered unprecedented demand for financing and global economic disruption.
More than 1/3 of the IMF’s membership have received relief from the Fund.
The Fund responded rapidly and decisively to meet urgent and exceptional demand for financial assistance from its membership.

Since March 2020, 70 members, including many low-income countries, have received financial support under the two instruments created to address urgent financing needs that may arise from natural disasters (including pandemics, earthquakes, hurricanes): the Rapid Credit Facility and the Rapid Financing Instrument.
That support totaled over $29 billion.

More countries benefited from IMF support through other channels, including augmentations under existing programs, to the tune of over $70 billion.
In April, the IMF also approved a broad package of reforms that built on previous changes to strengthen the reach and flexibility of financial assistance under these facilities.

Even compared to previous crises such as the Ebola epidemic, the needs triggered by this current pandemic are unprecedented.
The Fund’s rapid response helped many countries to contain and mitigate the impact of this external shock.
This financial assistance does not have traditional IMF conditionality and phasing of disbursements over time, although:
- countries still undertake policy commitments to address their difficulties, and
- governance commitments about how those resources are to be spent.

Source: IMF blog — "IMF Lending Lifeline: Addressing Urgent Financing Needs Brought on by the Pandemic", The Editors, November 16, 2020.