Key Lending Instruments of IMF Funds ( UPSC Prelims)

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News Context

General Resources Account (GRA)

 ● Non-concessional Lending through the Financial Transactions Plan mechanism.  
  ● Objective: Address a nation's balance of payments (BoP) issues.  
      ○ Members can access loans up to their quota limits.
  ● Lending Facilities:  
    ● Stand-by Arrangement (SBA)  
    ● Extended Fund Facility (EFF)  
    ● Rapid Financing Instrument (RFI)  
    ● Flexible Credit Line (FCL)  
    ● Short-term Liquidity Line (SLL)  
        ○ Others

Poverty Reduction and Growth Trust (PRGT)

 ● Extended duration and concessional financial support, which includes interest-free financing for the most impoverished low-income countries (LICs).  
  ● Objective: To tackle the Balance of Payments (BoP) crisis.  
  ● Lending Facilities:  
    ● Rapid Credit Facility (RCF)  
    ● Standby Credit Facility (SCF)  
    ● Extended Credit Facility (ECF)  

Resilience and Sustainability Trust (RST)

     ○ Provides extended-term financing with affordable interest rates for low-income and vulnerable middle-income countries.
  ● Objective: Enhance resilience against external shocks.  
  ● Lending Facilities: Resilience and Sustainability Facility (RSF).