Current IMF Arrangements
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UC Atlas Home > Economic Globalization > Economic Crises > Current IMF

What does the map show:

The map 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).

http://www.worldbank.org/hipc/about/map/map.html

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 (HIPC) Initiative.

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.

Sources:

http://www.imf.org/external/np/exr/facts/howlend.htm

http://www.imf.org/external/np/exr/facts/prgf.htm

http://www.imf.org/external/np/exr/facts/hipc.htm

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