Adequacy of Fund Resources – Preliminary Considerations

Download or read book Adequacy of Fund Resources – Preliminary Considerations written by International Monetary Fund. Finance Dept. and published by International Monetary Fund. This book was released on 2021-03-05 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides background for initial considerations on the appropriate size of the Fund’s overall lending capacity over the medium term. The paper reviews developments in the demand for Fund resources during the global crisis. The paper also argues that the global economy is changing in fundamental ways, with implications for the size of the Fund. Against this background, the analysis suggests that the current overall lending capacity of the Fund should be seen as a minimum. Additional resources would be needed if the Fund were to introduce changes to its lending framework. While the financing structure of the Fund should be largely quota-based, staff sees a strong case for continuing to backstop quota resources with a standing borrowing facility. Maintaining the Fund’s current overall lending capacity would require swift action by the membership.