The Rapid Credit Facility (RCF) and Rapid Financing Instrument (RFI) are valuable components of the disaster risk financing tool kit for Fund members, especially developing countries. They help to meet urgent balance of payments needs, and are designed to play a catalytic role in mobilizing other external financing. This paper develops proposals for a higher annual access limit under the RCF and RFI, building on a November 2016 staff paper on small states’ resilience to natural disasters and climate change (IMF, 2016c). Directors generally supported the proposal in that paper to establish higher annual access limits of 60 percent of quota under the RCF and RFI for countries experiencing severe natural disaster-related damages. The focus of this paper is to specify the threshold of damage from a natural disaster that would allow members experiencing urgent balance of payments needs arising from such disasters to access emergency financing at the higher annual limit. In the November 2016 paper, staff proposed, among other things, the possibility of establishing a higher access limit under the RCF and RFI where the amount of damage reached the threshold of 30 percent of GDP. Most Directors regarded the proposed threshold of disaster damage as overly restrictive, and suggested lowering the threshold to 20 percent of GDP or lower, provided that this did not jeopardize the self-sustainability of the PRGT. For a range of future disaster outcomes, a damage threshold of 20 percent of GDP could increase projected annual average PRGT loan demand in the 1-5 percent range over the next decade, which should not pose significant risks to the robustness of PRGT self-sustainability. Cautious stewardship of PRGT resources argues against a lower disaster damage threshold, pending further experience with disaster trends and associated PRGT loan demand. This paper does not propose changes to the current cumulative access limits for the RCF and RFI. The cumulative access limits play an important role in the Fund’s financing architecture, constraining the extent to which countries can access Fund resources without implementing a Fund-supported program with upper credit tranche (UCT) conditionality and associated policies in circumstances where such a program would be more appropriate. The Board will have the opportunity to review the cumulative access limits in the context
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committed to ensuring transparency and good governance in the use of COVID-19-related spending.”
For information on the emergency financing requests approved by the IMF Executive Board, please see a link to the IMF Lending Tracker: https://0-www-imf-org.library.svsu.edu/en/Topics/imf-and-covid19/COVID-Lending-Tracker
For upcoming discussions on the emergency financing requests, please see a link to the calendar of the IMF Executive Board meetings: https://0-www-imf-org.library.svsu.edu/external/NP/SEC/bc/eng/index.aspx
Factsheet: “IMFRapidCreditFacility (RCF)” https
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the emergency financing requests, please see a link to the calendar of the IMF Executive Board meetings: https://0-www-imf-org.library.svsu.edu/external/NP/SEC/bc/eng/index.aspx
Factsheet: “IMFRapidCreditFacility (RCF)” https://0-www-imf-org.library.svsu.edu/en/About/Factsheets/Sheets/2016/08/02/21/08/Rapid-Credit-Facility
ST. VINCENT AND THE GRENADINES
REQUEST FOR DISBURSEMENT UNDER THE RAPID CREDIT FACILITY
June 22, 2021
Context . An explosive volcanic eruption that began on April 9 is hitting St. Vincent and the Grenadines hard creating an urgent
accumulation of external payment arrears.
Since the onset of the COVID-19 pandemic, The Gambia has also benefited from an IMFRapidCreditFacility disbursement of SDR 15.55 million (US$ 21.3 million at the time of approval) and is receiving debt service relief from the IMF under the Catastrophe Containment and Relief Trust , expected to total SDR 7.9 million, of which SDR 4.2 million (about US$5.83 million) has already been approved.
The Gambian authorities have maintained prudence in economic management and advanced structural reforms, including in governance, for a
to raise and sustain growth and reduce poverty (see Press Release 21/91).
Since the onset of the COVID-19 pandemic, Madagascar benefitted from two IMFRapidCreditFacility (RCF) disbursements of SDR 122.2 million (about US$ 165.99 million or 50 percent of quota) in April 2020 and SDR 122.2 million (about US$ 171.9 million or 50 percent of quota) in July 2020, and received an SDR allocation of SDR 234.2 million (about US$ 322 million) in August 2021.
Madagascar continues to be affected by the COVID-19 pandemic and is going through a severe cyclone season. After
, with an initial total access of SDR 35 million (or 56.3 percent of quota) that was augmented to SDR 55 million (88.4 percent of quota) at the time of the completion of the first review under the ECF, on January 15, 2021 . The Gambia has also benefited from an IMFRapidCreditFacility disbursement of SDR 15.55 million approved on April 15, 2020 and received debt service relief from the IMF under the Catastrophe Containment and Relief Trust , totaling SDR 7.9 million.
The Gambia’s economic growth is estimated at 4.3 percent in 2021 despite the various waves of
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the relatively low private external debt for average low-income countries, a ppt change in PPG external debt should be largely explained by the drivers of the external debt dynamics equation.
Figure 4. Papua New Guinea: Realism Tools
1 This joint World Bank/IMF Debt Sustainability Analysis (DSA) has been prepared in the context of the 2020 request for emergency financing from the IMFRapidCreditFacility (RCF) . The macro framework underlying this DSA has been updated from the 2019 Article IV staff report to reflect recent global and domestic
Board’s decision was taken on a lapse-of-time basis. 1
The ECF arrangement with The Gambia was approved by the IMF’s Executive Board on March 23, 2020 , with an initial total access of SDR 35 million that was augmented at the completion of the first ECF review on January 15, 2021 to SDR 55 million (88.4 percent of quota). The Gambia has also benefited from an IMFRapidCreditFacility disbursement of SDR 15.55 million and is receiving debt service relief from the IMF under the Catastrophe Containment and Relief Trust , expected to total SDR 7.9 million, of