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International Monetary Fund

1. This supplement proposes to extend the suspension of high-access (HA) procedures for requests for financing under the Rapid Credit Facility (RCF), which is scheduled to lapse on October 5, through April 6, 2021 . The HA procedures for RCF financing requests have been suspended since April 6, 2020 in the context of a broader discussion on enhancing the Fund’s emergency financing toolkit in light of the COVID-19 Pandemic. 1 2. The HA procedures, requiring early consultation with the Board, provide enhanced oversight of requests for high levels of access to

International Monetary Fund
The COVID-19 pandemic is taking a human toll and has unleashed a series of shocks on the Fund’s entire membership, creating severe disruption in the global economic and financial system. As a result, many emerging market and developing country (EMDC) members face urgent and unprecedented financing needs, creating significant immediate demand for Fund resources. In order to respond to members’ large and urgent financing needs, the paper proposes to enhance the Fund’s emergency financing toolkit, through a temporary increase in access limits for both the Rapid Financing Instrument (RFI), available to all members, and the Rapid Credit Facility (RCF), available to Poverty Reduction Growth Trust-eligible members only. It is proposed to increase these access limits for a proposed period of six months, which may be extended by the Executive Board. A companion Board paper sets out proposals to accelerate Board consideration of member requests for financing under the RCF and RFI, completion of reviews and requests for changes in access in existing arrangements, and requests for grant assistance under the Catastrophe Containment and Relief Trust.
International Monetary Fund
The temporary increase in access limits under IMF emergency financing instruments will expire on October 5, 2020, unless extended. Access limits under emergency instruments (the Rapid Credit Facility (RCF) and Rapid Financing Instrument (RFI)) were increased in April 2020 for a period of six months, from 50 to 100 percent of quota annually and from 100 to 150 percent of quota cumulatively. The increased limits are subject to review and can be extended before their expiration. It is proposed to extend the period of higher access limits for emergency financing for a period of six months, through April 6, 2021. Against a background of continued pandemic-related disruption, staff expects there could be significant demand for emergency lending in the October 2020–April 2021 period, including from countries with pending requests and from countries that received emergency support at levels less than the maximum amounts available. A six-month extension would give more time for countries to benefit from higher access limits under emergency financing.
International Monetary Fund

1. The Covid-19 pandemic is taking a human toll and has unleashed a series of shocks on the Fund’s entire membership, creating severe disruption in the global economic and financial system. For the majority of Fund members, what started as a sudden increase in health and other pandemic-related spending, has been compounded by a broader supply shock due to containment measures, domestic and external demand shocks, a large terms of trade shock for commodity producers, and a dramatic tightening of financial conditions for emerging markets (EMs).

International Monetary Fund. Strategy, Policy, &, Review Department, International Monetary Fund. Finance Dept., and International Monetary Fund. Legal Dept.

, Directors endorsed the package of proposals in the Facilities Review and Financing Review. Directors broadly supported a generalized increase of one-third in access limits and norms to ensure that the Fund can provide adequate financial support to LICs as needed, while maintaining PRGT self-sustainability. To strengthen safeguards for PRGT resources alongside the generalized access increase, Directors supported, first, the introduction of an additional trigger for applying high access (HA) procedures, and second, a strengthening of informational and timing

International Monetary Fund. Strategy, Policy, &, Review Department, International Monetary Fund. Finance Dept., and International Monetary Fund. Legal Dept.

arrangements approved prior to the adoption of the new policy would not be subject to the new policy safeguards. 1 A separate supplement would continue to be required if GRA EA procedures apply. 2 This will be guided by “Ex Post Evaluations of Exceptional Access Arrangements—Revised Guidance Note” (February 25, 2010). An EPE will not be required where the proposed combined credit exposure safeguards are triggered by a request for an outright purchase or disbursement. 3 Implementation of HA procedures for RCF requests is suspended through October 5, 2020

International Monetary Fund. Strategy, Policy, &, Review Department, International Monetary Fund. Finance Dept., and International Monetary Fund. Legal Dept.

-sustainability. 20 Safeguards 21 Proposal : To strengthen safeguards against credit risk, modify high access (HA) procedures by establishing an additional threshold on projected outstanding credit to the PRGT, and provide for more timely and better-informed Board engagements for both HA and exceptional access (EA) requests . 22 23. Given rising debt vulnerabilities, staff proposes strengthened safeguards to accompany the generalized access increase . At the informal session in March 2019 views were expressed that the LIC Facilities Review should take account of