## The Resilience and Sustainability Trust—Targeted Modification Regarding the Flexible Credit Line Arrangement as Concurrent Upper Credit Tranche-Quality Instrument

_Policy Papers, April 21, 2025_

## Source details

**Canonical URL:** [The Resilience and Sustainability Trust—Targeted Modification Regarding the Flexible Credit Line Arrangement as Concurrent Upper Credit Tranche-Quality Instrument](https://www.imf.org/en/publications/policy-papers/issues/2025/04/21/the-resilience-and-sustainability-trust-targeted-modification-regarding-the-flexible-credit-566376)

## Other formats

- [Markdown version](/en/publications/policy-papers/issues/2025/04/21/the-resilience-and-sustainability-trust-targeted-modification-regarding-the-flexible-credit-566376/index.md)
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## Bibliographic details
- Published: April 21, 2025
- Series: Policy Papers
- DOI: https://doi.org/10.5089/9798229008440.007

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### Executive summary
- Proposes a narrow and targeted change to the Resilience and Sustainability Trust Instrument relevant for cases where an arrangement under the Resilience and Sustainability Facility (RSF) is allowed to continue when the member switches from a Flexible Credit Line (FCL) arrangement to another qualifying UCT-quality instrument.
- In such cases, the proposal identifies specific safeguards that would be sufficient to anchor the RSF arrangement.

### Policy recommendation — safeguards for continuation of RSF arrangement
- Sufficient safeguards to anchor the RSF arrangement would be that, within the previous 12 months, one of the following occurred:
  - The Executive Board approved the FCL arrangement; or
  - The Executive Board completed the mid-term review of the member’s qualification under the FCL arrangement.

### Key implications
- The change is characterized as narrow and targeted, applying specifically to scenarios where an FCL arrangement transitions to another qualifying upper-credit-tranche (UCT)-quality instrument while an RSF arrangement remains in effect.
- Emphasizes preservation of program conditionality and policy anchors through recent Executive Board approval or mid-term review activity.

### Keywords
- fcl arrangement
- FCL arrangement
- Flexible Credit Line
- Long-term challenges
- Prospective risks to Balance of Payment stability
- Resilience and Sustainability Trust
- RSF arrangement
- transparency policy
- UCT-quality instrument

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## Content in this bundle

- **Policy Paper**
  - [Policy Paper (Markdown version)](/-/media/files/publications/pp/2025/english/ppea2025009.pdf.md){rel="alternate" type="text/markdown"}
  - [Policy Paper (PDF)](/-/media/files/publications/pp/2025/english/ppea2025009.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/policy-papers/issues/2025/04/21/the-resilience-and-sustainability-trust-targeted-modification-regarding-the-flexible-credit-566376_