The IMF (International Monetary Fund) offers a range of lending instruments to help countries address balance of payments problems, stabilize economies, and implement reforms. These instruments differ by purpose, conditions, and repayment terms.

Non-Concessional Lending (for middle- & upper-income countries)
 

1. Stand-By Arrangement (SBA) : Up to 3 years but usually 12-18 months

• Used for: Present, prospective, or potential balance of payments need, Short-term balance of payment needs
• Duration: 12–24 months
• Conditionality: Macroeconomic reforms

2. Extended Fund Facility (EFF) : Up to 4 years

• Used for: Protracted balance of payments need/medium-term assistance, Medium- to long-term structural issues
• Duration: Up to 4 years
• Focus: Reforms in areas like public finance, trade, etc.

3. Flexible Credit Line (FCL)

• For: Countries with very strong policies
•  Pre-approved, no ongoing conditionality
•  On-demand access; precautionary or actual

4. Precautionary and Liquidity Line (PLL)

• For: Countries with sound fundamentals but vulnerable
• Combines immediate liquidity + precautionary support

5. Short-Term Liquidity Line (SLL)

• Used for: Short-term external shocks
•  Strict eligibility based on robust policies

Concessional Lending (Low-income countries)
 

6. Extended Credit Facility (ECF) : 3 to 4 years, extendable to 5 years

• For: Protracted balance of payments need/medium-term assistance
•  Zero interest, grace period 5.5 years

7. Standby Credit Facility (SCF) : 1 to 3 years

• Present, prospective, or potential balance of payments need
• Short-term needs with conditionality

8. Rapid Credit Facility (RCF)

• Urgent balance of payments need/emergency financing assistance
• For urgent support (e.g. pandemic, disaster)
• No strict conditionality

Emergency Lending
 

9. Rapid Financing Instrument (RFI)

• For: All countries facing urgent needs, Urgent balance of payments need/emergency financing assistance

• Fast disbursement, limited conditions
• Used during COVID-19 crisis, natural disasters

SUMMARY