The Fund’s Mandate—Future Financing Role
Policy Papers, March 26, 2010
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Bibliographic details
- Published: March 26, 2010
- Series: Policy Papers
Motivation and approach
- Last year’s major reforms of the Fund’s lending instruments, together with the commitment to treble its resources, made a significant contribution to global stabilization as Fund lending created room for policy accommodation and helped countries weather the worst of the crisis.
- The paper asks whether there is scope to build on this experience, drawing on lessons of the crisis as perceived by policymakers, market participants, and academic observers, with whom Fund staff has consulted extensively.
- The paper aims to explore the pros and cons of various reform options neutrally.
Reform options and scope
- Some options are more evolutionary, for example those building on last year’s headline introduction of the Flexible Credit Line or FCL.
- Other options are more radical, for example Fund provision of pure insurance payouts or collateralized lending.
- This paper focuses on the former (evolutionary options) and covers the latter set of ideas in a supplement.
Process and next steps
- Once the Executive Board has had a chance to comment on all options, a more defined and specific set of proposals could be developed by staff for further consideration.
- The analysis reflects extensive consultation with policymakers, market participants, and academic observers.
Key subjects addressed
- Concessional aid
- Crisis prevention
- Financial crisis
- Financial safety nets
- Flexible Credit Line
- Forward commitment capacity
- Fund facilities
- Fund role
- General Resources Account
- Global Financial Crisis 2008-2009
- International financial system
- Stand-by arrangements
The Fund’s Mandate—Future Financing Role, March 26, 2010.
Content in this bundle
- The Fund’s Mandate—Future Financing Role; IMF Policy Paper; March 25, 2010