Policy Papers

Review of Facilities for Low-Income Countries - Supplement 1

July 26, 2012

Download PDF

Preview Citation

Format: Chicago

Review of Facilities for Low-Income Countries - Supplement 1, (USA: International Monetary Fund, 0) accessed November 21, 2024

Summary

This supplement aims to assess the economic impact of the Fund’s support through its facilities for low-income countries (LICs). It relies on two complementary econometric analyses: the first investigates the longer-term impact of Fund engagement—primarily through successive medium-term programs under the Extended Credit Facility (ECF) and its predecessors (and more recently the Policy Support Instrument (PSI))—on economic growth and a range of other indicators and socio-economic outcomes; the second focuses on the role of IMF shock-related financing—through augmentations of ECF arrangements and short-term and emergency financing instruments—on short-term macroeconomic performance. The empirical results shed some light on two channels through which different Fund facilities may have helped LICs respond to the global financial crisis—(i) by supporting a gradual buildup of macroeconomic buffers in the decades prior to the crisis and (ii) by providing liquidity support at the height of the crisis. The combination of strong pre-crisis buffers and crisis financing allowed LICs to pursue counter-cyclical policy responses that preserved spending and facilitated a rapid recovery.

Subject: Access to Fund general resources, Concessional aid, Conditionality, Emergency assistance, Exogenous Shocks Facility, Extended Credit Facility, Extended Fund Facility, Fund facilities, General Resources Account, Low-income developing countries, Policy Support Instrument, Precautionary and Liquidity Line, Rapid Credit Facility, Staff-monitored programs, Stand-by arrangements, Standby Credit Facility, Use of Fund resources

Publication Details

  • Pages:

    ---

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Policy Papers

  • Stock No:

    ---

  • ISBN:

    ---

  • ISSN:

    ---

You May Also Be Interested In...

Policy Reform Proposals To Promote The Fund’s Capacity To Support Countries Undertaking Debt Restructuring

April 16, 2024

Predicting IMF-Supported Programs: A Machine Learning Approach

March 8, 2024

Implementation Plan in Response to The Executive Board-Endorsed Recommendations From The IEO Evaluation on The IMF’s Pandemic Response

October 30, 2023

Review of the Policy Coordination Instrument and Proposal to Eliminate the Policy Support Instrument

October 6, 2023