{"id":79234,"date":"2025-12-23T12:03:26","date_gmt":"2025-12-23T06:33:26","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=79234"},"modified":"2025-12-23T14:34:37","modified_gmt":"2025-12-23T09:04:37","slug":"rapid-financing-instrument","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/rapid-financing-instrument\/","title":{"rendered":"Rapid Financing Instrument"},"content":{"rendered":"<h2><b>Rapid Financing Instrument Latest News<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Recently, the International Monetary Fund has approved emergency funding of USD 206 million under its rapid finance instrument to help Sri Lanka address urgent needs arising from the catastrophic Cyclone Ditwah.<\/span><\/p>\n<h2><b>About Rapid Financing Instrument<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It provides <\/span><b>prompt financial assistance<\/b><span style=\"font-weight: 400;\"> to any <\/span><strong><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/international-monetary-fund-imf\/\" target=\"_blank\">International Monetary Fund<\/a><\/strong><span style=\"font-weight: 400;\"><strong><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/international-monetary-fund-imf\/\" target=\"_blank\"> (IMF)<\/a><\/strong> member country facing an urgent <\/span><b>balance of payments need.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is one of the facilities under the <\/span><b>General Resources Account<\/b><span style=\"font-weight: 400;\"> (GRA) that provide financial support to countries<\/span><b>, including in times of crisis.<\/b><\/li>\n<\/ul>\n<h2><b>Types of Rapid Financing Instrument<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Regular Window:<\/b><span style=\"font-weight: 400;\"> It is for <\/span><b>urgent balance of payments needs <\/b><span style=\"font-weight: 400;\">caused by sources including domestic <\/span><b>instability, exogenous shocks and fragility.<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under this, access up to <\/span><b>50 percent of quota per year<\/b><span style=\"font-weight: 400;\"> and <\/span><b>100 percent of quota<\/b><span style=\"font-weight: 400;\"> on a <\/span><b>cumulative basis<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Large natural disaster Window:<\/b><span style=\"font-weight: 400;\"> It is for urgent balance of payments needs arising from <\/span><b>natural disasters<\/b><span style=\"font-weight: 400;\"> where damage is assessed to be equivalent to or exceed 20 percent of the member\u2019s GDP.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It provides access to up to <\/span><b>80 percent of quota per year<\/b><span style=\"font-weight: 400;\"> and 133.33 percent of quota on a cumulative basis.<\/span><\/li>\n<\/ul>\n<h2><b>Conditionality of Rapid Financing Instrument<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Support <\/span><b>provided without<\/b> <b>ex-post program-based conditionality<\/b><span style=\"font-weight: 400;\"> or reviews (prior actions sometimes apply).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Economic policies should aim at <\/span><b>addressing<\/b><span style=\"font-weight: 400;\"> the underlying <\/span><b>balance of payments difficulties.<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b>Source: <\/b><strong><a href=\"https:\/\/www.newsonair.gov.in\/imf-approves-206-million-emergency-aid-for-sri-lanka-after-cyclone-ditwah\/\" target=\"_blank\" rel=\"nofollow noopener\">News On Air<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rapid Financing Instrument provides prompt financial assistance to any International Monetary Fund (IMF) member country facing an urgent balance of payments need. Read more about Rapid Financing Instrument, Meaning, Types, Conditionality, Latest News.<\/p>\n","protected":false},"author":24,"featured_media":79244,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[21,4364,22,23],"class_list":{"0":"post-79234","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"tag-prelims-pointers","9":"tag-rapid-financing-instrument","10":"tag-upsc-current-affairs","11":"tag-upsc-prelims-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/79234","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\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=79234"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/79234\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/79244"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=79234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=79234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=79234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}