IMF's Stand-By Arrangement

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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