IMF
Major differences between EFF, SBA and RFI facilities of IMF
| Feature |
Extended Fund Facility (EFF) |
Stand-By Arrangement (SBA) |
Rapid Financing Instrument (RFI) |
|---|---|---|---|
| Main Purpose | Medium- to long-term assistance for countries with structural issues and persistent balance of payments (BoP) problems. | Short-term help to resolve temporary BoP gaps, including shocks like commodity price swings. | Immediate financial support for countries facing urgent BoP needs (e.g. disasters, pandemics). |
| Launched | 1974 | 1952 (modern format since 2009) | 2011 (evolved from emergency aid tools) |
| Loan Duration | 3 to 4 years (can extend to 5 years) | Typically 12 to 24 months (up to 36 months) | Disbursed in a single tranche with no formal program |
| Repayment Period | Starts after 4.5 years, repayable over 10 years | Starts after 3.25 years, repayable over 5 years | Repayable in 3¼ to 5 years |
| Disbursement | In tranches based on performance reviews and compliance | Also tranche-based, linked to conditionality | Single upfront disbursement (no installments) |
| Conditionality Level | High – requires comprehensive structural reforms, regular reviews | Moderate – focused on macroeconomic stabilization | Minimal – only basic policy commitments needed |
| Focus Areas | Structural reforms: fiscal, tax, energy, public enterprises, governance | Macroeconomic stabilization: fiscal targets, inflation control, reserves | Emergency needs: natural disasters, pandemics, commodity shocks |
| Use Cases | Deep-rooted economic challenges needing reform-based transformation | Short-term liquidity crisis, exchange rate pressure | Urgent support when time or capacity doesn't allow full IMF program |
| Examples | Pakistan (2023), Sri Lanka (2023), Ethiopia (2019) | Argentina (2018),
About author
Zinkpot — We Inform, You Perform.Ask Anything, Know Better अपना प्रश्न पूछें Error: SQLSTATE[HY000] [1203] User uniquebr_zinkpot already has more than 'max_user_connections' active connections |
Comments
Write Comment