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International Monetary Fund

2015 Cyclone 60 71.4 3.1 5.1 RFI/RCF blend Y St. Vincent and Grenadines 2014 Floods 15 35.5 0.9 5.9 RFI/RCF blend Y Samoa 2013 Cyclone 30 35.8 1.1 3.6 RCF Y Dominica 2012 Floods 7 17.8 0.7 10.1 RCF Y St. Vincent and Grenadines 2011 Floods 3.6 10.6 0.3 8.2 RCF Y St. Vincent and Grenadines 2011 Hurricane 5 17.7 0.5 9.5 RCF Y St. Lucia 2011 Hurricane 34 25.0 0.6 1.9 RCF/ENDA blend Y St. Kitts and Nevis

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

-quality programs. For them, urgent balance of payment needs arising from the food and fertilizer shocks could be addressed through an augmentation under their existing program. 5 All references to financing windows in this paper are not special facilities under the RCF and RFI and are used to refer to the circumstances under which relevant access limit sub-ceilings apply. 6 The RFI component of the RFI/RCF blending counts towards the applicable RCF annual and cumulative sub-ceilings. Outstanding disbursements from all the RFI and RCF windows are included in

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. Middle East and Central Asia Dept.

.6 Sources: IMF staff estimates and projections. 1/ Includes two purchases under the RFI of 33.3 percent of quota each and two disbursements under the RCF of 16.7 percent of quota each in 2020. 2/ Total external public debt service includes IMF repurchases and repayments. Staff Appraisal 9. Staff supports the Kyrgyz Republic’s request for purchase under the RFI and disbursement under the RCF . The RFI/RCF blend financing is justified because the balance of payments need is urgent and there is insufficient time to design and finance a program

International Monetary Fund
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
International Monetary Fund. Middle East and Central Asia Dept.
This paper focuses on the Kyrgyz Republic’s Request for Purchase Under the Rapid Financing Instrument and Disbursement Under the Rapid Credit Facility. The coronavirus disease 2019 pandemic has hit the Kyrgyz economy very hard and increased an already urgent balance of payments need. All sectors are being severely affected while measures are being taken to stop the spread of the virus. The IMF emergency support addresses the urgent balance of payments need, shores up confidence, and catalyzes donor support. In order to ensure that the financing provided is efficiently spent on addressing the crisis, the authorities have committed to strengthen procurement rules. The health care contingency plan and the initial package of economic measures already adopted by the authorities to provide health and economic relief are welcome, as is the second, larger, package of measures under preparation. In their attached letter of intent, the authorities remain committed to temporarily loosening macroeconomic and financial policies to finance health and economic relief and support a recovery. They have also made additional commitments to strengthen procurement rules, including steps to enhance transparency, to help ensure that financing received is efficiently spent on addressing the crisis.
International Monetary Fund. Finance Dept., International Monetary Fund. Legal Dept., and International Monetary Fund. Strategy, Policy, & Review Department
Russia’s war in Ukraine has exacerbated global economic pressures, including through a food shock. The war and food-related spillovers—higher import prices for food and fertilizer and disruptions in supply lines for food importers, and a loss of revenue for some food exporters—add to urgent balance-of-payments (BOP) needs of many Fund members. They have also exacerbated acute food insecurity, now affecting 345 million people. While the best response to address BOP pressures would generally involve an Upper Credit Tranche-quality program, such a program may not be feasible in some cases or necessary in others. This paper proposes a time-bound food shock window under the Rapid Financing Instrument (RFI) and the Rapid Credit Facility (RCF) to provide support to members in such situations. The new window would be temporary and provide low-access emergency financing that increases the amounts currently available under the RFI/RCF. Members would need to demonstrate urgent BOP needs and meet a set of qualification criteria related to the global food shock. The window would be available for 12 months from the date of Board approval of the window. Countries requesting financing under the window would also need to meet the standard qualification criteria under the RFI/RCF.
International Monetary Fund

percent), and drawings under current precautionary programs (8 percent), including SDR 2.15 billion under Morocco’s Precautionary and Liquidity Line (PLL). For member countries that have RFIs only, access of 100 percent of quota is assumed, and for member countries that have an RFI-RCF blend, the RFI portion is assumed as 66.7 percent of quota. The amounts for the augmentations are based on policy notes and staff correspondence. For the projection it is assumed that the RFI requests and drawings under current precautionary programs will be disbursed by end-FY 2020, and

International Monetary Fund

53.5 1.7 1.7 RCF Y Vanuatu 2015 Cyclone 60 71.4 3.1 5.1 RFI/RCF blend Y St. Vincent and Grenadines 2014 Floods 15 35.5 0.9 5.9 RFI/RCF blend Y Samoa 2013 Cyclone 30 35.8 1.1 3.6 RCF Y Dominica 2012 Floods 7 17.8 0.7 10.1 RCF Y St. Vincent and Grenadines 2011 Floods 3.6 10.6 0.3 3.2 RCF Y St. Vincent and Grenadines 2011 Hurricane 5 17.7 0.5 9.5 RCF Y St. Lucia 2011 Hurricane 34 25.0 0.6 1.9 RCF