Policy Papers

Review of Experience with The Food Shock Window Under The Rapid Financing Instrument and The Rapid Credit Facility

June 30, 2023

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Review of Experience with The Food Shock Window Under The Rapid Financing Instrument and The Rapid Credit Facility, (USA: International Monetary Fund, 2023) accessed November 12, 2024

Summary

The Food Shock Window (FSW) under the Rapid Credit Facility (RCF) and the Rapid Financing Instrument (RFI) was approved in September 2022 for 12 months, as a complement to the tools used by the Fund to support the broader international effort to address the global food shock. The Fund has been working closely with partners to provide a coordinated international response to the global food shock, and has contributed through policy advice, technical assistance and lending. Where needed and possible, financial support to countries affected by the global food shock has been delivered by the IMF through multi-year Fund-supported programs The FSW complemented this support in situations where these programs were not feasible or not necessary. As the global food shock and associated balance of payment pressures are expected to continue throughout 2023, the IMF extended the FSW until end-March 2024 to allow the FSW to continue serving as a contingency tool. This extension will also provide sufficient time to observe if the FSW can lapse without limiting the capacity of the Fund to support its members. To ensure adequate borrowing space under the emergency financing limits for those countries that have received support through the FSW, the IMF also extended the additional 25 percent of quota added to the Cumulative Access Limit until end-2026 for countries that have accessed the Food Shock Window through the RFI and until the completion of the 2024/25 PRGT review for those that accessed the Food Shock Window through the RCF.

Subject: Balance of payments, Balance of payments need, Emergency assistance, Food prices, Food security, Foreign aid, Monetary policy, Political economy, Poverty, Prices, Public financial management (PFM)

Keywords: Balance of payments need, Cumulative Access Limits, Emergency assistance, Food Insecurity, Food prices, Food security, FSW experience, FSW financing, FSW relative, FSW request, FSW resource, Global, Rapid Credit Facility, Rapid Financing Instrument, UCT-quality program

Publication Details

  • Pages:

    28

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Policy Paper No. 2023/030

  • Stock No:

    PPEA2023030

  • ISBN:

    9798400248009

  • ISSN:

    2663-3493