About IMF’s Stand-By Arrangement:
- The Stand-by Arrangement (SBA) provides short-term financial assistance to countries facing balance of payments problems.
- Historically, it has been the IMF lending instrument most used by advanced and emerging market countries.
- Eligibility: All member countries facing actual or potential external financing needs. Most often used by advanced and emerging market countries, but low-income countries sometimes use the SBA together with the Standby Credit Facility (SCF).
- Conditionality
- Countries’ economic policies must address the problems that led the country to seek funding.
- Disbursements conditional on the observance of quantitative performance criteria.
- Progress in implementing structural measures that are critical to achieving the objectives of the program is assessed in a holistic way, including via benchmarks.
- Duration of the assistance: Flexible. Typically covers a period of 12–24 months, but not more than 36 months.
Key facts about IMF
- It fosters economic growth and employment by providing temporary financial assistance to countries to help ease the balance of payments adjustment and technical assistance.
- Foundation: Formed in 1944 at the Bretton Woods Conference with the goal of reconstructing the international monetary system.
- Important Reports: World Economic Outlook and Global Financial Stability Report
- Headquarters: Washington, DC, USA
Q1: What is a Stand-by Credit Facility?
The Stand-by Credit Facility (SCF) provides financial assistance to low-income countries (LICs) with short-term balance of payments needs. The SCF is one of the facilities under the Poverty Reduction and Growth Trust (PRGT).
Source: IMF approves immediate disbursal of USD 1.1 billion loan tranche to Pakistan
Last updated on July, 2025
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