What does the map show:
shows the geographical distribution of IMF arrangements at
the end of 2003. It provides insight into which countries are
currently undergoing a range of economic problems. Countries
involved in Stand-by Arrangements (SBAs) are undergoing moderate,
short term economic problems, usually involving mild foreign
exchange or trade issues. Countries in Enhanced Fund Facilities
(EFFs) arrangements are facing more difficult economic problems,
involving short term crises or structural problems. Poverty
Reduction and Growth Facilities (PRGFs) are only granted to
countries facing prolonged economic crises and deep structural
problems. The majority of countries currently engaged in PRGFs
are found in Africa. There is a strong correlation between
countries receiving PRGF loans and those that fall under the
category of Highly Indebted Poor Countires (HIPCs).
More information on these lending arrangements
is available below. A larger presentation on the work associated
with PRGFs, namely Poverty Reduction and Growth Facility Papers
(PRSPs) and the HIPC initiative is available in the New Generation of Structural Adjustment article.
What are the three types of lending arrangements
shown on the map?
Poverty Reduction and Growth Facility (PRGF): Formerly known as an Enhanced Structural Adjustment
Facility (ESAF), the PRGF replaced the ESAF in 1999 as the
IMF’s long-term, low interest rate concessional loan available
only to the poorest member countries. According to the IMF,
the transition from ESAF to PRGF was made in order to place
a greater emphasis on poverty reduction and growth. Eligibility
is provided primarily on the basis of per capita income. In
2001 a member country could obtain loans under PGRF only if
their per capita GNI was below $875. In September of 2003,
there were 77 member countries eligible to receive PRGF loans.
In order to receive a loan under PRGF, the borrowing
country must submit a Poverty Reduction Strategy Paper (PRSP).
The PRSP is prepared by the government of the borrowing country
and its partners, then submitted to the Executive Boards of the
IMF and World Bank for review. Once the PRSP is approved, the
country seeking assistance is eligible for PRGF concessional
lending and debt relief under the Heavily Indebted Poor Country
More on PRSPs is available in the New Generation of Structural Adjustment article.
Stand-By Arrangements (SBA):
SBAs are the most common loans granted by the IMF. They are
short term loans intended to provide support to member countries
facing short-term balance of payments problems.
Extended Fund Facility (EFF):
EFFs are longer term loans than SBA loans, but shorter term
than PRGF loans. EFFs are provided to countries with deeper
balance of payments and structural problems than those that
obtain funds under a SBA.