IMF(International Monetary Fund) provides assistance to countries experiencing serious payment imbalances because of structural impediments or slow growth and an inherently weak balance-of-payments position.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
IMF’s Extended Fund Facility:
1) It provides support for comprehensive programs including the policies needed to correct structural imbalances over an extended period
2) As structural reforms to correct deep-rooted weaknesses often take time to implement and bear fruit, EFF engagement and repayment cover longer periods than most Fund arrangements.
3) The funds are provided for up to 3 to 4 years. And amounts drawn under an EFF are to be repaid over 5–10 years.
4) The size of borrowing under EFF is guided by a country’s financing needs, capacity to repay, and track record with past use of IMF resources
5) When a country borrows from the IMF, it commits to undertake policies to overcome economic and structural problems. Under an EFF, these commitments, including specific conditions (like elimination of price controls, ceiling on govt. borrowing minimum level of forex etc), are expected to have a strong focus on structural reforms to address institutional or economic weaknesses, in addition to policies to maintain macroeconomic stability.
IMF-Pak Recent Agreement:
The International Monetary Fund said, it has reached a staff-level agreement with the Pakistani government for the revival of a bailout program, providing a welcome reprieve to the country as it struggles with a cratering economy, depreciating currency, high inflation and political instability.
The various financing facilities of IMF are :
(a) Extended Fund Facility
(b) Stand-by Arrangements
(c) Precautionary and Liquidity Line
(d) Flexible Credit Line.
From the sprawling plains of the Midwest to the sun-kissed shores of the Pacific, the…
The Indian political landscape has lost a seasoned leader with the passing of V. Srinivas…
The Badminton World Federation (BWF) has announced that India will host the prestigious 2025 BWF…
In the mosaic of American cities, certain urban centers stand out as bastions of liberal…
In a remarkable achievement, ICICI Bank has etched its name among India's top five companies…
The Government of India has introduced a Floating Rate Bond (FRB) maturing in 2034, with…