{"id":22928,"date":"2024-04-30T03:31:32","date_gmt":"2024-04-29T22:01:32","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=22928"},"modified":"2025-04-06T23:01:57","modified_gmt":"2025-04-06T17:31:57","slug":"imfs-stand-by-arrangement","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/imfs-stand-by-arrangement\/","title":{"rendered":"IMF&#8217;s Stand-By Arrangement"},"content":{"rendered":"<h2>About IMF&#8217;s Stand-By Arrangement:\u00a0<\/h2>\n<ul>\n<li>The Stand-by Arrangement (SBA) provides <strong>short-term financial assistance<\/strong> to countries facing <strong>balance of payments problems<\/strong>.<\/li>\n<li>Historically, it has been the IMF lending instrument most used by advanced and emerging market countries.<\/li>\n<li><strong>Eligibility:<\/strong> All member countries facing actual or potential external financing needs. Most often used by <strong>advanced and emerging market countries<\/strong>, but <strong>low-income countries<\/strong> sometimes use the SBA together with the <strong>Standby Credit Facility<\/strong> (SCF).<\/li>\n<li><strong>Conditionality<\/strong>\n<ul>\n<li>Countries\u2019 economic policies <strong>must address<\/strong> the problems that led the country to seek funding.\u00a0<\/li>\n<li>Disbursements conditional on the observance of <strong>quantitative performance criteria.<\/strong><\/li>\n<li>Progress in implementing <strong>structural measures<\/strong> that are critical to achieving the objectives of the program is assessed in a holistic way, including via benchmarks.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Duration of the assistance:<\/strong> Flexible. Typically covers a period of 12\u201324 months, but not more than 36 months.<\/li>\n<\/ul>\n<p><strong>Key facts about IMF<\/strong><\/p>\n<ul>\n<li>It <strong>fosters economic growth<\/strong> and employment by providing temporary financial assistance to countries to help ease the <strong>balance of payments<\/strong> adjustment and technical assistance.<\/li>\n<li><strong>Foundation:<\/strong> Formed in 1944 at the <strong>Bretton Woods Conference<\/strong> with the goal of reconstructing the international monetary system.<\/li>\n<li><strong>Important Reports:<\/strong> World Economic Outlook and Global Financial Stability Report<\/li>\n<li><strong>Headquarters:<\/strong> Washington, DC, USA<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1: What is a Stand-by Credit Facility?<\/h3>\n<p>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).<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/international\/imf-approves-immediate-disbursal-of-usd-11-billion-loan-tranche-to-pakistan\/article68122780.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>IMF approves immediate disbursal of USD 1.1 billion loan tranche to Pakistan<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>IMF&#8217;s Stand-By Arrangement provides short-term financial assistance to countries facing balance of payments problems.<\/p>\n","protected":false},"author":5,"featured_media":22929,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-22928","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/22928","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=22928"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/22928\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/22929"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=22928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=22928"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=22928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}