## IMF Executive Board Approves Temporary Extensions and Modification of Access Limits in the Fund’s Lending Facilities _IMF News, March 25, 2021_ ## Source details **Canonical URL:** [IMF Executive Board Approves Temporary Extensions and Modification of Access Limits in the Fund’s Lending Facilities](https://www.imf.org/en/news/articles/2021/03/25/pr2184-imf-execboard-approves-temp-exts-and-modification-of-access-limits-lending-facilities) ## Other formats - [Markdown version](/en/news/articles/2021/03/25/pr2184-imf-execboard-approves-temp-exts-and-modification-of-access-limits-lending-facilities/index.md) - [Structured JSON version](/en/news/articles/2021/03/25/pr2184-imf-execboard-approves-temp-exts-and-modification-of-access-limits-lending-facilities/index.json) - [Bundle manifest](/en/news/articles/2021/03/25/pr2184-imf-execboard-approves-temp-exts-and-modification-of-access-limits-lending-facilities/bundle-manifest.json) ## Bibliographic details - Published: March 25, 2021 --- ### Key decisions and timing - The Executive Board approved on March 22, 2021 further extensions of temporary adjustments to the Fund’s lending frameworks introduced in the early months of the pandemic. - Press release date: March 25, 2021. - Extensions aim to ensure continued access to IMF financing through emergency instruments, the General Resources Account (GRA), and the Poverty Reduction and Growth Trust (PRGT). ### Emergency financing instruments (RFI and RCF) - Extension through end-2021 of the increases in annual and cumulative access limits for the IMF’s emergency financing instruments (introduced April 2020 and extended October 2020). - Pandemic emergency financing use to date: 74 member countries, of which 49 low-income countries, received emergency financing through these instruments. - Specific access limits extended through end-December 2021: - Regular window of the Rapid Financing Instrument (RFI): annual access limit 100 percent of quota. - Exogenous shocks window of the Rapid Credit Facility (RCF): cumulative access limit 150 percent of quota. - Extension through end-December 2021 of the suspension of the two-disbursement limit on disbursements under the RCF within a 12-month period. - Approval of proposals for the automatic lapsing of approved RCF disbursements and RFI purchases. - Directors noted that emergency financing remains available when a member has an urgent balance of payments need and a Fund arrangement is either not feasible or not necessary, but underscored an expectation that countries increasingly seek Fund arrangements meeting upper credit tranche quality standards. ### General Resources Account (GRA) - Extension through end-2021 of the increase in the annual access limit to the IMF’s GRA (increase originally introduced July 2020). - Directors broadly supported the extension to provide flexibility in response to still-elevated uncertainties related to the pandemic. - A view was expressed that the annual access limit under GRA resources should revert to the pre-temporary-increase level so that countries seeking high access would be subject to the safeguards of the exceptional access policy. - Directors called on staff to use Board Briefings on Country Matters to keep the Board informed where elevated annual access is under consideration ahead of formal discussions with country authorities. ### PRGT (concessional lending for low-income countries) - Extension of increases in both annual and cumulative access limits on concessional lending through the PRGT through end-June 2021, as an interim measure pending a broader Review of Concessional Financing and Policies. - Directors supported temporary increases recognizing many LICs have been hit particularly hard by the pandemic and have already borrowed significantly from the IMF. - Specific PRGT access limits approved through end-June 2021: - Normal Annual Access Limit: 245 percent of quota. - Normal Cumulative Access Limit: 435 percent of quota. - Exceptional Annual Access Limit under all PRGT facilities: 278.33 percent of quota. - Exceptional Cumulative Access Limit under all PRGT facilities: 535 percent of quota. - Directors reiterated the need to keep the Board informed where elevated annual access is under consideration ahead of formal discussions with country authorities. - Directors looked forward to a broader discussion of the Fund’s lending facilities for LICs and a medium-term solution to access limits under the PRGT as part of the forthcoming Review of Concessional Financing and Policies. ### Risk management, safeguards, and procedural notes - Directors underscored that access limits are safeguards in the Fund’s risk management framework, preserving Fund resources’ revolving nature and catalytic role, and should not be seen as targets. - In light of elevated debt vulnerabilities in many LICs, Directors supported additional safeguards related to: - Analysis of debt vulnerabilities and Fund credit exposure. - Debt-related discussions in program documents. - Setting clear program objectives to reduce vulnerabilities. - Directors agreed that procedures applicable to high-access financing under the PRGT remain important safeguards and endorsed temporarily modifying threshold levels at which they apply. - Directors welcomed a proposal to review access limits under emergency financing instruments after the 2021 Annual Meetings. *Press Release No. 21/84, IMF Communications Department, March 25, 2021.* --- ## References - [https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg) - [The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx) - [Press Releases](https://www.imf.org/en/news/searchnews) - [PRESS CENTER](http://presscenter.imf.org/) - [April 2020](https://www.imf.org/en/News/Articles/2020/04/09/pr20143-imf-executive-board-approves-proposals-enhance-emergency-financing-toolkit-us-billion) - [October 2020](https://www.imf.org/en/News/Articles/2020/10/05/pr20305-imf-executive-board-approves-extension-increased-access-limits-under-rcf-and-rfi) - [July 2020](https://www.imf.org/en/News/Articles/2020/07/21/pr20267-imf-executive-board-approves-temporary-increase-annual-access-limits-financial-support) - [http://www.IMF.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm) - [https://www.imf.org/en/home](https://www.imf.org/en/home) _Source: https://www.imf.org/en/news/articles/2021/03/25/pr2184-imf-execboard-approves-temp-exts-and-modification-of-access-limits-lending-facilities_