Adequacy of Fund Resources – Preliminary Considerations
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Summary:
This paper provides background for initial considerations on the appropriate size of the Fund’s overall lending capacity over the medium term. The paper reviews developments in the demand for Fund resources during the global crisis. The paper also argues that the global economy is changing in fundamental ways, with implications for the size of the Fund. Against this background, the analysis suggests that the current overall lending capacity of the Fund should be seen as a minimum. Additional resources would be needed if the Fund were to introduce changes to its lending framework. While the financing structure of the Fund should be largely quota-based, staff sees a strong case for continuing to backstop quota resources with a standing borrowing facility. Maintaining the Fund’s current overall lending capacity would require swift action by the membership.
Series:
Policy Paper No. 2021/006
Subject:
Credit Emerging and frontier financial markets Financial crises Financial markets Global financial crisis of 2008-2009 Money Systemic crises
Frequency:
occasional
English
Publication Date:
March 5, 2021
ISBN/ISSN:
9781513571171/2663-3493
Stock No:
PPEA2021006
Pages:
46
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