Flexible Credit Line Research Articles

Republic of Poland: Arrangement Under the Flexible Credit Line and Cancellation of the Current Arrangement-Press Release; Staff Report; and Statement by the Executive Director and Alternate Executive Director for the Republic of Poland

This paper discusses Poland’s Arrangement Under the Flexible Credit Line (FCL) and Cancellation of the Current Arrangement. The FCL arrangements since 2009 have served Poland well, providing valuable insurance against external shocks. With the support of the consecutive FCL arrangements, Poland has weathered bouts of market turbulence well, and remains an attractive investment destination. The authorities intend to continue treating the FCL as precautionary and consider it a temporary supplement to reserves. In IMF staff’s view, Poland continues to meet the qualification criteria for continued access to the FCL.

Mexico: Arrangement Under the Flexible Credit Line and Cancellation of Current Arrangement-Press Release and Staff Report

Mexico: Arrangement Under the Flexible Credit Line and Cancellation of Current Arrangement-Press Release and Staff Report

THE IMF PROGRAMS: COUNTRIES’ EXPERIENCES AND THE IMPLICATIONS AND PROSPECTS FOR UKRAINE

The IMF is the world’s leading institution for promoting global economic and financial stability. Unlike other IFI’s, the Fund isn’t an ordinary lending institution. The IMF holds a pool of member-countries’ currencies and an amount of its own foreign reserves and uses this money to provide credit to members when they face economic and financial difficulties or expect them in the near future. A country contributes to the Fund according to a quota based mainly on its relative position in the world economy, including its GDP, trade, inflows of capital and reserves. The Fund’s quota-based money holdings may be supplemented by General Resources Account (GRA) borrowing in case of exceptional needs by the member states. The subject of the article consideration is the new loan toolkit of the Fund, which evolved together with the development of the international financial system. The acceleration in the modernization of the lending toolkit took place after the 2008 global financial crisis. It corresponded to an increase in the financial needs of some of the member states and focused on safeguarding the Fund’sresources. With modification of existing lending instruments, such as the StandBy Arrangements (SBA) and the Extended Fund Facility (EFF), new ones were introduced, including the Flexible Credit Line (FCL), the Precautionary and Liquidity Line (PLL) and Rapid Financing Instruments (RFI). The IMF also provides loans to a group of poor countries on concessional terms that include zero interest rates, with the goal of promoting sustainable economic growth and reducing poverty in these countries. The purpose of the article is to formulate the main directions of the necessary structural reforms in Ukraine based on the method of comparative analysis of IMF program results in different countries.

Colombia: Review Under the Flexible Credit Line Arrangement-Press Release and Staff Report

Colombia: Review Under the Flexible Credit Line Arrangement-Press Release and Staff Report

Korzyści i koszty współpracy Polski z Międzynarodowym Funduszem Walutowym w latach 2009–2013

W artykule omówiono główne obszary współpracy Polski z Międzynarodowym Funduszem Walutowym w warunkach narastających zagrożeń związanych z globalnym kryzysem finansowo-gospodarczym. W pierwszej części przedstawiono nowe zapobiegawcze instrumenty pożyczkowe oraz sposoby finansowania działalności Funduszu wprowadzone w reakcji na kryzys zapoczątkowany w 2008 r. Następnie omówiono skutki dla Polski dostępu do elastycznej linii kredytowej. W trzeciej części przeanalizowano konsekwencje udziału naszego kraju w zwiększaniu zasobów finansowych MFW. W rezultacie przeprowadzonych badań dokonano oceny działań Polski w zakresie współpracy z Funduszem, podejmowanych w obliczu światowego kryzysu.

Colombia: Arrangement Under the Flexible Credit Line and Cancellation of Current Arrangement- Press Release; and Staff Report

This paper focuses on recent economic developments as well as the role of the flexible credit line (FCL) arrangement. Despite a large external shock, Colombia’s economy showed remarkable resilience in 2015. The current account deficit reached a record level in 2015, but reserves remained stable. The banking system and corporate sector remained in good financial health. Growth will be subdued in the near future but is projected to gradually return toward potential. The FCL has served Colombia well. The previous FCL arrangements have been instrumental to cope with heightened external risks in recent years, complementing the authorities’ policy response to economic shocks.

Mexico: Arrangement Under the Flexible Credit Line and Cancellation of Current Arrangement-Press release and Staff Report

Mexico: Arrangement Under the Flexible Credit Line and Cancellation of Current Arrangement-Press release and Staff Report

Republic of Poland: Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Alternate Executive Director for the Republic of Poland

Republic of Poland: Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Alternate Executive Director for the Republic of Poland

Flexible Credit Line--Operational Guidance Note

The Flexible Credit Line (FCL) was introduced as part of a package of reforms to the Fund’s lending facilities in March 2009 and its design was further refined in August 2010 and in the 2014 Review of the policy. The following provides operational guidance and further background information on the FCL. SPR (the Emerging Markets Division), FIN, and LEG stand ready to clarify any further questions departments may have on the FCL or other aspects of the reforms to lending and conditionality.

Colombia: Arrangement Under the Flexible Credit Line and Cancellation of the Current Arrangement

Colombia: Arrangement Under the Flexible Credit Line and Cancellation of the Current Arrangement

Republic of Poland: Arrangement Under the Flexible Credit Line and Cancellation of the Current Arrangement-Staff Report; Press Release; and Statement by the Executive Director for the Republic of Poland

Republic of Poland: Arrangement Under the Flexible Credit Line and Cancellation of the Current Arrangement-Staff Report; Press Release; and Statement by the Executive Director for the Republic of Poland

Mexico: Review Under the Flexible Credit Line Arrangement-Press Release; and Staff Report

Mexico: Review Under the Flexible Credit Line Arrangement-Press Release; and Staff Report

Review of the Flexible Credit Line, the Precautionary and Liquidity Line, and the Rapid Financing Instrument

This review of the Flexible Credit Line (FCL), the Precautionary and Liquidity Line (PLL), and the Rapid Financing Instrument (RFI) focuses on four key issues: (i) the demand for the FCL and PLL in the context of the broader role of the Fund’s lending (including precautionary) instruments in the global financial safety net (GFSN); (ii) the qualification/conditionality framework for the FCL and the PLL; (iii) concerns about repeated usage of FCL arrangements by the same members and consideration of ways to further improve the transparency in the discussion of access/exit in the underlying staff documents; and (iv) the lack of demand for the RFI.

Review of the Flexible Credit Line, the Precautionary and Liquidity Line, and the Rapid Financing Instrument - Supplementary Information

Review of the Flexible Credit Line, the Precautionary and Liquidity Line, and the Rapid Financing Instrument - Supplementary Information

Review of the Flexible Credit Line, the Precautionary and Liquidity Line, and the Rapid Financing Instrument - Specific Proposals

This paper responds to Directors’ request at the time of the February discussions of the Review of the Flexible Credit Line (FCL), the Precautionary and Liquidity Line (PLL) and the Rapid Financing Instrument (RFI) for further analysis focusing on three key issues: - The alignment of the FCL and PLL qualification criteria. The paper proposes a qualification framework for PLL arrangements based on the nine FCL criteria aiming to improve the transparency and predictability of PLL decisions, while maintaining the current qualification standards. The paper also proposes a refinement of the bank solvency criterion. - The operationalization of an external stress index. The paper proposes a methodology to calculate a new index to strengthen discussions of a country’s external risks. Such an index would be presented to the Board at the time of requests for, or reviews under, FCL and PLL arrangements. - The use of indicators of institutional strength. The paper argues that a limited set of new institutional indicators could be used to help broaden the indicators of institutional strength already identified in the FCL and PLL Operational Guidance Notes

Review of the Flexible Credit Line, the Precautionary and Liquidity Line, and the Rapid Financing Instrument - Specific Proposals - Revised Annex I

This annex provides the key considerations for establishing the qualification framework to access financing under the FCL and PLL, with a view to promoting a predictable and evenhanded qualification process.

Mexico: Arrangement Under the Flexible Credit Line and Cancellation of the Current Arrangement-Staff Report and Press Release

Mexico: Arrangement Under the Flexible Credit Line and Cancellation of the Current Arrangement-Staff Report and Press Release

Colombia: Review Under the Flexible Credit Line Arrangement: Staff Report; Press Release; and Statement by the Executive Director for Colombia

Colombia: Review Under the Flexible Credit Line Arrangement: Staff Report; Press Release; and Statement by the Executive Director for Colombia

Republic of Poland: Arrangement Under the Flexible Credit Line and Cancellation of the Current Arrangement�Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director

"Volume 2013 (2013): Issue 021 (Jan 2013): Republic of Poland: Arrangement Under the Flexible Credit Line and Cancellation of the Current Arrangement—Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director" published on 24 Jan 2013 by International Monetary Fund.

Colombia: Arrangement Under the Flexible Credit Line—Staff Report; Staff Supplement; Press Release on the Executive Board Discussion; and Statement by the Executive Director for Colombia

This staff report on Colombia’s arrangement under the Flexible Credit Line highlights economic policies and development. Colombia’s economic performance in recent years has been very strong, underpinned by a very strong institutional framework and prudent macroeconomic management. Following a sharp slowdown in 2008–2009, output growth rebounded vigorously, and inflation stayed within the official target range. A very strong policy framework—comprising an inflation-targeting regime, a flexible exchange rate, effective financial sector supervisionand regulation, and a medium-term fiscal framework—provided policy space to undertake timely and effective countercyclical measures to mitigate the effects of the global financial crisis, and skillful policy management helped maintain strong growth with low inflation.