{
"title": "A New Facility for Market Access Countries--The Short-Term Liquidity Facility",
"publication": "Policy Papers, October 24, 2008",
"sourceUrl": "https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/a-new-facility-for-market-access-countries-the-short-term-liquidity-facility-pp4299",
"canonical": "https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/a-new-facility-for-market-access-countries-the-short-term-liquidity-facility-pp4299",
"overlayPath": "/en/publications/policy-papers/issues/2016/12/31/a-new-facility-for-market-access-countries-the-short-term-liquidity-facility-pp4299/index.md",
"summary": "Please note that the Shorth-Term Liquidity Facility was discontinued March 29, 2009. The above information is no longer current. Read the press release.",
"sections": [
{
"heading": "Context and Rationale",
"content": "- The ongoing financial market turmoil is described as remarkable for its severity and the speed with which shocks spread across markets and economies.\n- Disruptions noted:\n - short-term funding in mature markets,\n - deleveraging and contraction of bank balance sheets,\n - contagion from a systemic loss of confidence.\n- Consequence: sharply reduced financial flows to economies far from the origins of the crisis, producing short-term external liquidity needs even in emerging market countries with strong underlying domestic policies.\n- Implication: The Fund’s traditional facilities may not always be the optimal means of addressing short-term balance of payments pressures."
},
{
"heading": "Proposed facility and its role",
"content": "- The paper proposes a special facility to complement existing instruments by filling a gap in the Fund’s toolkit.\n- Rationale for complementing existing instruments:\n - Stand-By Arrangements (SBAs) had been used flexibly to support members’ economic programs where both policy adjustment and financing were needed.\n - A targeted facility would address short-term external liquidity needs that arise from rapid market turbulence and reduced financial flows, facilitating a member’s early return to market financing and buttressing market confidence."
},
{
"heading": "Key findings and emphasis",
"content": "- Market turbulence in advanced economies can create short-term external liquidity needs in other economies, including emerging market countries with otherwise strong policies.\n- Stand-By Arrangements (SBAs) have served roles in:\n - addressing underlying vulnerabilities,\n - buttressing market confidence,\n - facilitating an early return to market financing.\n- The proposed Short-Term Liquidity Facility is intended to fill a specific gap not optimally covered by traditional facilities."
},
{
"heading": "Subject coverage (as listed)",
"content": "- Access limits\n- Access to Fund general resources\n- Balance of payments\n- Capital account\n- Financial assistance\n- Multilateral surveillance\n- Reserves\n- Short-Term Liquidity Facility\n\nSource: IMF policy paper landing page — \"A New Facility for Market Access Countries--The Short-Term Liquidity Facility\".\n\n---\n\n Content in this bundle\n\n- A New Facility for Market Access Countries—The Short-Term Liquidity Facility; October 24, 2008\n - A New Facility for Market Access Countries—The Short-Term Liquidity Facility; October 24, 2008 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n - A New Facility for Market Access Countries—The Short-Term Liquidity Facility; October 24, 2008 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/a-new-facility-for-market-access-countries-the-short-term-liquidity-facility-pp4299"
}
],
"bullets": [
"[Markdown version](/en/publications/policy-papers/issues/2016/12/31/a-new-facility-for-market-access-countries-the-short-term-liquidity-facility-pp4299/index.md)",
"[Structured JSON version](/en/publications/policy-papers/issues/2016/12/31/a-new-facility-for-market-access-countries-the-short-term-liquidity-facility-pp4299/index.json)",
"[Bundle manifest](/en/publications/policy-papers/issues/2016/12/31/a-new-facility-for-market-access-countries-the-short-term-liquidity-facility-pp4299/bundle-manifest.json)",
"Published: October 24, 2008",
"Series: Policy Papers",
"The ongoing financial market turmoil is described as remarkable for its severity and the speed with which shocks spread across markets and economies.",
"Disruptions noted:",
"Consequence: sharply reduced financial flows to economies far from the origins of the crisis, producing short-term external liquidity needs even in emerging market countries with strong underlying domestic policies.",
"Implication: The Fund’s traditional facilities may not always be the optimal means of addressing short-term balance of payments pressures.",
"The paper proposes a special facility to complement existing instruments by filling a gap in the Fund’s toolkit.",
"Rationale for complementing existing instruments:",
"Market turbulence in advanced economies can create short-term external liquidity needs in other economies, including emerging market countries with otherwise strong policies.",
"Stand-By Arrangements (SBAs) have served roles in:",
"The proposed Short-Term Liquidity Facility is intended to fill a specific gap not optimally covered by traditional facilities.",
"Access limits",
"Access to Fund general resources",
"Balance of payments",
"Capital account",
"Financial assistance",
"Multilateral surveillance",
"Reserves",
"Short-Term Liquidity Facility",
"**A New Facility for Market Access Countries—The Short-Term Liquidity Facility; October 24, 2008**"
],
"related": [
{
"title": "A New Facility for Market Access Countries—The Short-Term Liquidity Facility; October 24, 2008",
"role": "document",
"sourceUrl": "https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2008/_102408.pdf",
"summary": {
"path": "/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2008/_102408.pdf.md",
"mime": "text/markdown"
},
"binary": {
"path": "/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2008/_102408.pdf",
"mime": "application/pdf"
}
}
],
"alternates": {
"markdown": "/en/publications/policy-papers/issues/2016/12/31/a-new-facility-for-market-access-countries-the-short-term-liquidity-facility-pp4299/index.md",
"json": "/en/publications/policy-papers/issues/2016/12/31/a-new-facility-for-market-access-countries-the-short-term-liquidity-facility-pp4299/index.json",
"bundleManifest": "/en/publications/policy-papers/issues/2016/12/31/a-new-facility-for-market-access-countries-the-short-term-liquidity-facility-pp4299/bundle-manifest.json"
},
"generatedAtUtc": "2026-09-18T20:38:25.485Z"
}