Executive Board Assessment of Adapting Precautionary Arrangements to Crisis Prevention on June 30, 2003,
July 9, 2003

Related to the CCL review:

Public Information Notice: IMF Concludes Discussion on the Review of Contingent Credit Lines,
December 19, 2003

Statement by the Staff: Completion of the Review of the Contingent Credit Lines and Consideration of Some Possible Alternatives,
November 18, 2003

Completion of the Review of the Contingent Credit Lines and Consideration of Some Possible Alternatives,
November 12, 2003

Executive Board Assessment of the Review of Contingent Credit Lines on March 14, 2003,
March 20, 2003

Review of Contingent Credit Lines,
February 11, 2003

The IMF's Contingent Credit Lines -- A Factsheet

Adapting Precautionary Arrangements to Crisis Prevention

Prepared by the Policy Development and Review Department
In consultation with the Finance, Legal, and other Departments
Approved by Timothy Geithner

June 11, 2003

Use the free Adobe Acrobat Reader to view this pdf file (342 kb).

The views expressed in this paper are those of the staff and do not necessarily reflect the views of the Executive Board of the IMF. The Executive Board's assessment is summarized in the Public Information Notice. Some country-specific or market-sensitive information may have been deleted from this paper, as allowed by the IMF's publication policy.

Contents
  1. Introduction
  2. Background
  3. Design Issues and Possible Modifications
  4. Precautionary Arrangements in Context
  5. Implementation Issues
  6. Issues for Discussion
Boxes
1. Brazil's 2001 Stand-By Arrangement
2. Waivers of Applicability and the "Sawtooth" Pattern
3. Balancing Automaticity and Safeguards—Pros and Cons

Figures
1. The Staircase Pattern
2. The Sawtooth Pattern

Table
1. Comparison of CCL and Precautionary Arrangements

Appendix I
The Experience with Precautionary Arrangements
   Box
      1.  An Example: Estonia's Experience with Precautionary Stand-By Arrangements
   Figures
      1.  Precautionary Arrangements Approved
   2.  Members with Precautionary Arrangements Approved, 1987–April 2003
   3.  Average Annual Access in Precautionary Arrangements
   Table
       1. Precautionary Arrangements with High Access, 1987–April 2003

Appendix II
Example of Stand-By Arrangement