Charges and Maturities-Proposals for Reform

Policy Papers, December 12, 2008

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Charges and Maturities-Proposals for Reform

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Bibliographic details

• Published: December 12, 2008
• Series: Policy Papers

Overview

• Publication date: December 12, 2008
• Focus: two key features of the financial terms and maturities of high access to the Fund’s General Resources Account (GRA): surcharges and time-based repurchase expectations.
• Core description: Surcharges, together with the adjusted rate of charge, determine the cost of high access to Fund credit and currently vary across facilities and are linked to either the level of access or the duration of lending. The policy on repurchase expectations is an administrative mechanism that encourages accelerated repayment terms, effectively shortening loan maturities.
• Purpose: Both policies on surcharges and repurchase expectations were introduced to mitigate credit risks and safeguard the revolving nature of Fund resources.

Key findings and mechanisms

• Surcharges
  • Determine part of the cost of high access to Fund credit in conjunction with the adjusted rate of charge.
  • Currently vary across facilities.
  • Are linked to either the level of access or the duration of lending.
• Time-based repurchase expectations
  • Administrative mechanism that encourages accelerated repayment terms.
  • Effectively shortens loan maturities.
• Rationale
  • Both surcharges and repurchase expectations were introduced to mitigate credit risks and safeguard the revolving nature of Fund resources.

Supplements

• Charges and Maturities and Proposals for Reform, Supplement 1
• Charges and Maturities and Proposals for Reform, Supplement 2

Subjects (as listed)

• Access limits
• Charges
• Fund facilities
• General Resources Account
• Rate of charge
• Repurchases
• Safeguards
• Use of Fund resources

Source: https://www.imf.org/en/publications/policy-papers/issues/2016/12/31/charges-and-maturities-proposals-for-reform-pp4324

Content in this bundle

• Charges and Maturities—Proposals for Reform; December 12, 2008
  • Charges and Maturities—Proposals for Reform; December 12, 2008 (Markdown version)
  • Charges and Maturities—Proposals for Reform; December 12, 2008 (PDF)