Temporary Modifications To Access Limits Under The Large Natural Disaster Window Of The Rapid Credit Facility And Of The Rapid Financing Instrument
Policy Papers, June 21, 2021
Source details
- Canonical URL
- Temporary Modifications To Access Limits Under The Large Natural Disaster Window Of The Rapid Credit Facility And Of The Rapid Financing Instrument
Other formats
Bibliographic details
- Published: June 21, 2021
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9781513587400.007
Context and problem statement
- The Fund temporarily increased certain access limits to its emergency financing (EF) instruments, i.e., Rapid Credit Facility (RCF) and Rapid Financing Instrument (RFI), to help members faced with the COVID-19 pandemic.
- That temporary increase was not applied to the Large Natural Disasters (LND) windows within the EF toolkit, reducing the flexibility to respond to such LNDs.
Proposal and key modification
- Proposal: temporarily increase by 50 percent of quota the annual access limit (AAL) and cumulative access limit (CAL) under the LND windows of the RCF and RFI.
- Effective period: the changes to the “LND windows” would be in effect through end-December 2021, in line with the other temporary changes of access limits under EF instruments.
- Follow-up: the case for further extensions to all the temporarily increased EF AALs and CALs will be examined after the 2021 Annual Meetings.
Intended effect and rationale
- Restore parity between LND windows and other EF instrument windows that received temporary increases during the COVID-19 pandemic.
- Increase the Fund’s flexibility to respond to Large Natural Disasters occurring while members are still managing pandemic-related shocks.
Related thematic tags (as listed)
- Balance of payments, Balance of payments need, COVID-19, Credit, Emergency assistance, Environment, Foreign aid, Health, Monetary policy, Money, Natural disasters, Political economy
- Keywords: Africa, Balance of payments need, COVID-19, Credit, draft press release, Emergency assistance, Global, Natural disasters, RCF annual, RCF financing, RFI RCF, RFI window, transparency policy
Source: Temporary Modifications To Access Limits Under The Large Natural Disaster Window Of The Rapid Credit Facility And Of The Rapid Financing Instrument (Policy Paper No. 2021/044).
Content in this bundle
- Policy Paper