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Use of Fund Resources | ||||
Access Policy | ||||
Access Policy and Limits in the Credit Tranches and Under the Extended Fund Facility and on Overall Access to the Fund’s General Resources, and Exceptional Access Policy—Review and Modification
Decision No. 14064-(08/18), February 22, 2008, as amended by Decision Nos. 14184-(08/93), October 29, 2008, 14284-(09/29), March 24, 2009, BUFF/10/56, May 9, 2010, 14716-(10/83), August 30, 2010, 15017-11/112), November 21, 2011, 15931-(16/4), January 20, 2016,15941-(16/14), February 17, 2016, Decision B of 16747-(20/43), April 14, 2020, and 16845-(20/75), July 13, 2020 EBS/83/233 II. Considerations Governing Amount of Access … The considerations that need to be taken into account in determining the amount of access in individual arrangements and current practice on access have been discussed in recent staff papers, in particular in EBS/83/132 (6/27/83), and may be briefly recapitulated here. The first important consideration is the member’s actual or potential need for resources from the Fund, taking into account other sources of financing and the desirability of maintaining a reasonable level of reserves; in no circumstances can access be greater than this need. The second important consideration stems from the need to preserve the revolving character of the resources that the Fund provides, i.e., the ability of the member to service its indebtedness to the Fund. In determining the case for Fund support and the amount involved, the timing and extent of the expected improvement in the member’s balance of payments are relevant factors. It follows that adjustment policies in support of which the Fund’s resources are to be used must be designed and implemented in such a manner as to lead to a strengthening of the balance of payments by the time the repurchases begin to fall due and of a sufficient extent to allow the member to make the repurchases without strain. Finally, the amount of the member’s outstanding use of Fund credit and its record in using Fund resources in the past must enter into the judgment on the appropriate scale of further use of the Fund. …. 1 Ed. Note: Decision No. 16845-(20/75), July 13, 2020, states: “The access limits set out in paragraph 2(B) of Decision No. 14064-(08/18), adopted February 22, 2008, as amended, shall be reviewed no later than December 31, 2020.” (SM/20/100, 06/30/20) |
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Prepared by the Legal Department of the IMF
Note
- Page number references in the text are to the Forty-Second issue hard copy volume.