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IMF Exploits Euro-Crisis to Create Global Money Power

imageMonday, April 16, 201
by Staff Report

Euro Area Seeks Bigger IMF War Chest on Spanish Concerns … European officials travel to Washington this week seeking a bigger global war chest to combat the debt crisis as Spain’s government battles to quell renewed market turmoil over its finances. Three weeks after European leaders unveiled emergency euro- area funding exceeding the symbolic $1 trillion mark, concerns about Spain’s position have ratcheted the nation’s borrowing costs to the highest levels this year. Crisis-fighting resources will dominate talks at the International Monetary Fund’s spring meeting in Washington from April 20-22. – Bloomberg

Dominant Social Theme: Austerity would work if Europe would just cooperate.

Free-Market Analysis: Almost unnoticed, the world’s leaders now speak in terms of trillions rather than billions (or millions) as they used to, and the IMF and central banks are leaders in this trend (see above excerpt).

The goal of the elites running these facilities is world government and the European Union is a stepping-stone to this consolidation. Austerity, the program that is supposedly stabilizing European finances, is actually an elite dominant theme that does the opposite of its stated intent.

As part of this globalist thrust, the power elite seeks to empower certain international facilities with additional funding and authority. Out of chaos … order, as the article excerpted above once again illustrates:

Bowing to international pressure to do more while stopping short of a bolder proposal, European governments agreed last month that 500 billion euros ($654 billion) in fresh money would be placed aside 300 billion euros already committed to create an 800 billion-euro defense against contagion.

By also offering to give the IMF 150 billion euros, “European governments have done their part,” ECB Executive Board Member Joerg Asmussen said April 13. “I would now expect our non-European friends and partners to contribute their part to IMF resources.”

This kind of problem/solution formula is easy to understand for anyone who wants to look. The elites pursue their goals via dominant social themes, fear-based promotions that frighten people into giving up power and wealth to globalist facilities. In this case the mechanism is the “sovereign debt crisis” and the solution is to puff up the IMF with more resources.

The longer the so-called sovereign debt crisis goes on, the more the globalists utilize it to expand the power of their chosen institutions. We wrote about this phenomenon just the other day in an article entitled, “Debt Crisis Plotted to Deliver the Euro to the IMF?” Here’s how we explained the genesis:

One has to keep in mind the artificiality of the current economic construct. The economy of the world is run via monopoly fiat/paper money printed by central banks. It is this system that has seemingly crashed half of the world’s economy and is well on the way to delivering China into the same situation …

The EU crisis itself, as we have often pointed out, started when certain poorer countries were given large amounts of money by Brussels to “equalize” the economy. These funds were supposed to allow the bureaucracies to address native imbalances and create fiscal health.

Of course, this money was nothing but a kind of bribe. The elites of the given nation pocketed the funds and then made sure their countries entered the EU. After this occurred, further lending took place via the elite’s top, European commercial banks.

After the 2008 crash, it became clear that the EU’s PIGS couldn’t repay the loans. This was likely the plan all along. After this realization set in, the power elite that orchestrates this sort of thing ensured that the solution to this manipulated dilemma was “austerity.”

The idea is evidently and obviously to make people so miserable that they will eventually welcome world government and world money. The power elite orchestrating this has been using what we call directed history for at least a century and probably closer to three – within the context of the modern globalist conspiracy.

The article we are analyzing today from Bloomberg suggests an expanded IMF based on the Euro crisis. But the IMF is also promoting a US$500 billion expansion via developing countries.

The justification is that the European crisis might spill over into other continents and nations. The IMF has to be prepared for via a half billion-dollar transfer from the very countries it claims to be protecting. Reuters reports the following:

Euro Area Seeks Bigger IMF War Chest on Spanish Concerns … International Monetary Fund (IMF) Managing Director Christine Lagarde said that she is hoping to make “real progress” at this week’s meetings …

In January, the IMF said it would need $600 billion in new resources to help “innocent bystanders” who might be affected by economic and financial spillovers from Europe … On Friday, officials from the Group of 20 nations told Reuters the world’s major economies were likely to agree to provide the IMF with somewhere between $400 billion and $500 billion.

A G20 official said the fundraising effort would likely raise about $50 billion from Japan and a similar amount from China and Saudi Arabia, in addition to the $250-300 billion already committed by EU countries. Smaller amounts will likely come from countries such as Russia, Mexico and Brazil.

Thus it is that the IMF expands. It is receiving at least US$150 billion from Europe and hundreds of billions from mostly “developing” countries. It is interesting that the Reuters article and the Bloomberg article don’t quite match up on the European contributions. What’s a few hundred billion among friends?

In fact, nobody REALLY knows how much money is flowing at the top, or where it is headed. The point of the reports is promotional and has little to do with accuracy. The idea is to throw vast sums around as to imbue government officials with godlike powers.

Often, we discover the announcements made about funds prove not to be true. The European sovereign debt crisis was supposed to have been solved years ago, when the first announcements were made that funds had been delegated to “fix” the problem by leading European sponsors.

In fact, we have come to realize this crisis – like other crises around the world – are often manufactured ones. This is no doubt why they often last so long. The longer the crisis lasts, the more possibilities for a transformative effect.

In this case it seems obvious to us that the intent is to make citizens of the West so miserable (via “austerity”) that they will welcome virtually any change, even globalism, that promises to make their lives better.

Seen through this admittedly cynical lens, the 20th century with all its “isms” and arguments for expanding government via socialism, etc., was the first part of a promotion that is now nearing its latter stages. Having successfully made people dependent on government, the powers-that-be are now removing those props in order to further their internationalist aims.

No doubt global governance will be sold the same way as were the initial governmental solutions of the 20th century – as a panacea that will somehow reduce the world’s afflictions and rectify the wrongs of the “market.”

Conclusion: We are not yet sure the IMF is destined to become the world’s central bank – complete with an SDR global currency – but the IMF is continually showing up at the center of things as world economic chaos blossoms. More that the Bank for International Settlements or even the World Bank, it appears to be the Chosen One.

Source

Debt Crisis Plotted to Deliver the Euro to the IMF?

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Spanish bailout ‘impossible’ for eurozone, says prime minister Mariano Rajoy … The eurozone is not equipped to bail out Spain, the country’s prime minister Mariano Rajoy has admitted, as global traders continued to punish the nation’s stocks and bonds. Mr Rajoy said it was “not possible to rescue Spain” but insisted his country did not need a Greek-style international bail-out anyway …Christine Lagarde, the boss of the International Monetary Fund (IMF), also warned that Europe’s rescue mechanisms were not enough to restore confidence to global markets but said the IMF could provide a “global firewall”. Speaking in Washington on Thursday, Ms Lagarde, who is seeking to raise $500bn (£313.4bn) in extra funds for the IMF from the G20, warned risks to the global economy “remain high; the situation fragile”. “We need a broader approach – and a stronger global firewall – if we are to push back this crisis. The IMF can help. But to be as effective as possible, we need to increase our resources.” – UK Telegraph

Dominant Social Theme: What is needed is a global currency.

Free-Market Analysis: We’ve long since come to the conclusion that the EU‘s sovereign crisis is a manufactured one. This article supports such a conclusion, in our view.

One has to keep in mind the artificiality of the current economic construct. The economy of the world is run via monopoly fiat/paper money printed by central banks. It is this system that has seemingly crashed half of the world’s economy and is well on the way to delivering China into the same situation.

If China’s economy folds – and it seems well on the way – there will likely be a global depression. The elites, in our view, are preparing to offer up the International Monetary Funds’ SDRs as an alternate currency. The IMF is increasingly active as the “lender of last resort” throughout the world (see article excerpt above).

The EU crisis itself, as we have often pointed out, started when certain poorer countries were given large amounts of money by Brussels to “equalize” the economy. These funds were supposed to allow the bureaucracies to address native imbalances and create fiscal health.

Of course, this money was nothing but a kind of bribe. The elites of the given nation pocketed the funds and then made sure their countries entered the EU. After this occurred, further lending took place via the elite’s top, European commercial banks.

After the 2008 crash, it became clear that the EU’s PIGS couldn’t repay the loans. This was likely the plan all along. After this realization set in, the power elite that orchestrates this sort of thing ensured that the solution to this manipulated dilemma was “austerity.”

The idea is evidently and obviously to make people so miserable that they will eventually welcome world government and world money. The power elite orchestrating this has been using what we call directed history for at least a century and probably closer to three – within the context of the modern globalist conspiracy.

These elites, based out of the City of London it seems, with arms in Washington DC, Rome, Tel Aviv and elsewhere, have been working steadily toward world government and used fear-based promotions to achieve it.

These dominant social themes are generated to frighten people into seeking or at least accepting globalist solutions. These themes are usually accompanied by artificial crises – in this case, economic crises created by the boom/bust monopoly central banking system.

There is no doubt that “austerity” is not helping solve the apparently ginned-up economic crisis in Spain, Greece or Italy. Here’s more from the article excerpted above:

“To talk about a bail-out for Spain at the moment makes no sense,” he told reporters. “Spain is not going to be rescued; it’s not possible to rescue Spain, there’s no intention to, it’s not necessary and therefore it’s not going to be rescued.” Despite his comments, the Madrid bourse fell and the yields on the country’s benchmark bonds remained stubbornly high. While other European markets soared on Thursday following strong gains in America, Spain’s Ibex index lost 0.5pc.

Politicians in Rome tried to counter the markets’ view that Italy was in the same predicament as Spain.Vittorio Grilli, Italy’s deputy finance minister, said “markets are very nervous” but added: “We cannot talk about a derby between Italy and Spain.” Analysts at Bank of America Merrill Lynch said: “Although Spain and Italy face very different economic and fiscal issues, their yields are largely moving in tandem.”

Meanwhile, the Greek unemployment rate rose to 21.8pc, according to fresh figures from the national statistics office. During 2011, the average annual jobless rate soared to 17.7pc from 12.5pc the year before, revealing the toll of the crisis and resulting austerity measures that have seen one-in-10 jobs destroyed. One-in-five Greeks is now jobless, including 50.8pc of those aged under 25. The rate is twice as high as the eurozone average.

Various EU countries were manipulated into joining the EU, after which time a central-banking led economic crisis created a global meltdown. Then austerity was initiated to counter the “sovereign debt” crisis in Europe. The PIGS are now suffering from this faux-solution.

Even the name PIGS (PIIGS) is suspect. Developed years ago by a Goldman Sachs banker, the name denotes greed and has been applied to nation-states characterized in this way. It seems to us that this is all part of a larger manipulation. Directed history – from the nomenclature on down.

Meanwhile, the IMF continues to receive high-profile coverage in the elite controlled mainstream media. This high profile is being constructed within the context ongoing efforts to build up SDRs as a mainstream currency.

A good article on the moves being made to build this currency is entitled “The Triffin Dilemma Will Create a 3-G World” and was posted at Goldseek. In it, author Richard Mills points out the following:

In the wake of the financial crisis of 2007–2008, Zhou Xiaochuan the governor of the People’s Bank of China, said that a national currency is unsuitable as a global reserve currency … In a speech titled “Reform the International Monetary System” Zhou argued that part of the reason for the original Bretton Woods system breaking down was the refusal to adopt Keynes‘ bancor.

Calling Keynes’s bancor approach “farsighted” Xiaochuan proposed strengthening existing global currency controls through the IMF by the adoption of International Monetary Fund (IMF) special drawing rights (SDRs) as a global reserve currency. When Special Drawing Rights were originally created in 1969 one SDR was defined as having a value of 0.888671 grams of gold, equal to the value of one US dollar at that time. After the breakdown of the Bretton Woods system the SDR was redefined in terms of a basket of four currencies.

From January 1 2011, the IMF has determined that the four currencies will be assigned revised weights based on their roles in international trade and reserves. Due to varying exchange rates, the relative value of each currency varies continuously and thus the value of the SDR fluctuates. The IMF fixes daily the value of one SDR in terms of US dollars based on the exchange rates of the constituent currencies.

We’ve speculated that the elites want to create some sort of formalized gold standard in the past. But more and more the logic is inescapable: The elites are opposed to gold at every level (except for themselves). They hate the idea in fact that the common man owns either gold or silver. Monopoly fiat/paper offers much more control.

Having spent a century building up monopoly central banking, all the way to 150 central banks, the power elite seems in no mood to back-peddle. The IMF is apparently their chosen vehicle to create an international monopoly fiat currency, and it continues to have a high profile.

Conclusion: The IMF is presented as the “firewall” that can contain the European conflagration. Eventually the IMF’s SDR “currency” shall be elaborated on, perhaps sooner rather than later. The European crisis is a kind of shadow play and the IMF and its money are likely being positioned as a solution … if not THE solution.

Source

Are George Soros, The IMF And The World Bank Purposely Trying To Scare The Living Daylights Out Of Us?

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Over the past couple of weeks, George Soros, the IMF and the World Bank have all issued incredibly chilling warnings about the possibility of an impending economic collapse.  Considering the power and the influence that Soros, the IMF and the World Bank all have over the global financial system, this is very alarming.  So are they purposely trying to scare the living daylights out of us?  Soros is even warning of riots in the streets of America.  Unfortunately, way too often top global leaders say something in public because they want to “push” events in a certain direction.  Do George Soros and officials at the IMF and World Bank hope to prevent a worldwide financial collapse by making these statements, or are other agendas at work?  We may never know.  But one thing is for sure – many of the top financial officials in the world are using language that is downright “apocalyptic”, and that is not a good sign for the rest of 2012.

Right now, George Soros is saying things that he has never said before.  Just check out what George Soros recently told Newsweek….

“I am not here to cheer you up. The situation is about as serious and difficult as I’ve experienced in my career,” Soros tells Newsweek. “We are facing an extremely difficult time, comparable in many ways to the 1930s, the Great Depression. We are facing now a general retrenchment in the developed world, which threatens to put us in a decade of more stagnation, or worse. The best-case scenario is a deflationary environment. The worst-case scenario is a collapse of the financial system.”

Later on in that same article, Soros is quoted as saying that we could soon see the U.S. government using “strong-arm tactics” to crack down on rioting in the streets of major U.S. cities….

As anger rises, riots on the streets of American cities are inevitable. “Yes, yes, yes,” he says, almost gleefully. The response to the unrest could be more damaging than the violence itself. “It will be an excuse for cracking down and using strong-arm tactics to maintain law and order, which, carried to an extreme, could bring about a repressive political system, a society where individual liberty is much more constrained, which would be a break with the tradition of the United States.”

It almost sounds like George Soros is anticipating the same kind of a breakdown of society that many survivalists and preppers are getting ready for.

So how bad are things going to get?

Well, George Soros is publicly warning that the coming financial crisis could end up being even worse than 2008.  Just check out the following quotes from him that appeared in a recent Businessweek article….

Billionaire investor George Soros said Europe’s sovereign-debt woes are “more serious” than the financial crisis of 2008 and that the world faces the prospect of a “vicious circle” of deflation.

“We have a more dangerous situation now than in 2008,” Soros, 81, said in response to a question at an event in the southern Indian city of Bangalore today. “The crisis in Europe is more serious than the crash of 2008.”

But George Soros is not the only one issuing these kinds of warnings.

Once again, the head of the IMF, Christine Lagarde, has made a speech in which she openly warned that we are heading for a repeat of the “1930s”.

She told an audience in Berlin on Monday that the globe is facing “a 1930s moment, in which inaction, insularity and rigid ideology combine to cause a collapse in global demand”.

During the speech she called for a trillion more dollars to support financially troubled governments, and she made the following statement….

“It is not about saving any one country or region. It is about saving the world from a downward economic spiral.”

As I wrote about the other day, the World Bank has also been using apocalyptic language about the global financial situation.  In a shocking new report, the World Bank revised GDP growth estimates for 2012 downward very sharply, it warned that Europe could be facing financial collapse at any time, and it instructed the rest of the world to “prepare for the worst.”

The lead author of the report, Andrew Burns, said that the “importance of contingency planning cannot be stressed enough” and that if there is a major financial crisis in Europe the entire globe will be deeply affected….

“An escalation of the crisis would spare no-one. Developed- and developing-country growth rates could fall by as much or more than in 2008/09.”

So should we be alarmed that George Soros, the IMF and the World Bank are all proclaiming that a financial nightmare could be just around the corner?

Of course we should be.

Whether their motives are pure or not, they are telling the truth about the global financial situation in this case.  As I have written about so frequently, there are a whole host of signs that indicate that we could be on the verge of a major global recession.

A lot of folks in the investment world are warning that hard times are about to hit us as well.  For example, the following is what legendary investor Joseph Granville recently told Bloomberg Television….

Joseph Granville, whose “sell everything” call in 1981 sparked a decline in U.S. stocks, said the Dow Jones Industrial Average (INDU) will drop toward 8,000 this year because of waning momentum and volume.

“Volume precedes prices,” Granville, 88, a technical analyst who has been publishing the Granville Market Letter from Kansas City, Missouri for about 50 years, said in an interview on “Street Smart” on Bloomberg Television. “You are seeing much lower volume. That tells you that prices are going to go much lower, much lower than most people think possible and very few people have projected.”

Considering all of the warnings out there, it only seems prudent to prepare for the worst.

But unfortunately, a lot of people are just going to leave their holdings sitting out there like a dead duck, and they are going to be absolutely devastated by the coming financial tsunami.

Those that believe that the United States can somehow escape the coming financial storm don’t really know what they are talking about.

In fact, there was very troubling news for the U.S. dollar just the other day.  It was announced that India will start paying for its oil from Iran in a currency other than U.S. dollars.

But this is just another sign that the rest of the world is starting to reject the U.S. dollar.  For decades, the U.S. dollar has been the reserve currency of the world and this has given us a tremendous advantage.  Unfortunately for us, that is now changing.

U.S. newspapers are not talking about what is going on, but mainstream newspapers in Europe are.  Right now, some of the biggest countries in the world are working on plans to quit using U.S. dollars for the buying and selling of oil.

The following comes from a recent article in The Independent….

In the most profound financial change in recent Middle East history, Gulf Arabs are planning – along with China, Russia, Japan and France – to end dollar dealings for oil, moving instead to a basket of currencies including the Japanese yen and Chinese yuan, the euro, gold and a new, unified currency planned for nations in the Gulf Co-operation Council, including Saudi Arabia, Abu Dhabi, Kuwait and Qatar.

Secret meetings have already been held by finance ministers and central bank governors in Russia, China, Japan and Brazil to work on the scheme, which will mean that oil will no longer be priced in dollars.

The plans, confirmed to The Independent by both Gulf Arab and Chinese banking sources in Hong Kong, may help to explain the sudden rise in gold prices, but it also augurs an extraordinary transition from dollar markets within nine years.

This is a very big deal, and if this gets pulled off it is going to have devastating consequences for the U.S. dollar and for the U.S. economy.

But of course when it comes to troubles for the U.S. financial system, there are a whole host of issues that could be talked about.

An environment for a “perfect storm” is developing, and most Americans have absolutely no idea what is about to happen.

Fortunately, there are some researchers out there that are working hard to sound the alarm bells.  For example, the following quote comes from a recent interview with Gerald Celente….

I believe that we have to watch out for something along the lines of an economic martial law. The European system is in collapse. The financial system in the United States is just as tenuous, if not more, and I believe they will not admit there will be a financial crash but rather they will use a geo-political issue to get the people in a state of fear and hysteria whereby they’ll then call a bank holiday or devaluation of the currency, or a hyperinflation of the currency, and blame it on somebody else.

It would be wise to listen to what experts such as Gerald Celente are saying.

Now is the time to take stock of where you are at and to make plans for the coming year.

Just because things have “always” been a certain way does not mean that they will continue to be that way.

Just because certain things have “always” worked in the past does not mean that they will continue to work in the future.

Our world is experiencing fundamental changes.  It is changing at a faster pace than we have ever seen before.  The way that we all live our lives five or ten years from now will be vastly different from how we live our lives today.

This will be a very challenging time to be alive, but it is also going to be a very exciting time to be alive.

So what do all of you think is going to happen in 2012?

Source

IMF Chief Lagarde: Give Me More Money And China More Power

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Ben Walsh

On Thursday, the head of the International Monetary Fund, Christine Lagarde, urged members to approve an agreement reached last year that would double the funds available to the global organization and give currently under-represented nations like China increased voting power, Reuters reported.

If approved, the plan would make China the international lender’s third-largest member of the IMF:

The IMF said Lagarde “called on members to use their best efforts to make the 2010 reform package effective before the 2012 annual meetings.” The meetings take place in Tokyo in mid-October.

An IMF staff paper said “efforts to meet the 2012 deadline should not be spared.”

As of December 12, just 53 countries, holding 36 percent of total IMF quotas, had approved the increases. Approval by members holding about 70 percent of quotas is needed to implement the changes. Some countries require their legislatures to authorize the changes.

Lagarde’s push for approval of the measures comes as the Euro-zone crisis underscored the shift in global economic power away from traditional post-war leaders and and popular opposition to the government in China appeared to demonstrate the internal challenges faced by the world’s fastest growing large economy.

Source

IMF UNVEILS HUGE LIQUIDITY PROGRAM TO STEM CONTAGION

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by Simone Foxman

The IMF will offer a new credit line program to allow sovereigns to “break the chain of contagion.”

A new “Precautionary Credit Line” would allow governments with sound financials who have made prior agreements with the IMF to access liquidity of 1000% of a member’s quota for 1-2 years. It would also allow them to access up to 500% of their quota in liquidity on a 6-month basis.

The funds would be offered to sovereigns suffering from “exogenous shocks.”

Markets and the euro spiked immediately on the news.

There are, however, a few big problems with this new proposal.

First, it is unclear whether the IMF actually has access to the amount of funds that would be necessary to bail out a sovereign like Italy.

Italy currently has $2.2 trillion in gross external debt, far exceeding the IMF’s current available resources of about $540 billion. While that would significantly add to the resources the eurozone bailout fund—the European Financial Stability Facility—has available, this still falls short of the estimates for funding necessary to truly stem the crisis. Citi’s Willem Buiter recently suggested about €3 trillion ($4 trillion).

This suggests that the IMF might have to rapidly expand its funding resources to act as an effective bulwark against contagion. But that’s not likely to happen either.

The United States—which provides the largest percentage (17.7%) of IMF funds of any individual country—will also have to approve the plan. Previous bids to expand the IMF’s funding have hit a wall with U.S. opposition, primarily led by the GOP.

This press release from the IMF describes how the new program will work:

IMF Enhances Liquidity and Emergency Lending Windows

Press Release No. 11/424
November 22, 2011

The Executive Board of the International Monetary Fund (IMF) approved on November 21 a set of reforms designed to bolster the flexibility and scope of the Fund’s lending toolkit to provide liquidity and emergency assistance more effectively to the Fund’s global membership. These reforms, which have been under preparation for some time, will enable the Fund to respond better to the diverse liquidity needs of members with sound policies and fundamentals, including those affected during periods of heightened economic or market stress—the crisis-bystanders—and to address urgent financing needs arising in a broader range of circumstances than natural disasters and post-conflict situations previously covered.

“I commend the Executive Board for the expeditious response to support the membership in these difficult times,” said IMF Managing Director Christine Lagarde following the Executive Board meeting. “The Fund has been asked to enhance its lending toolkit to help the membership cope with crises. We have acted quickly, and the new tools will enable us to respond more rapidly and effectively for the benefit of the whole membership.

“The reform enhances the Fund’s ability to provide financing for crisis prevention and resolution. This is another step toward creating an effective global financial safety net to deal with increased global interconnectedness,” she added.

The reform replaces the Precautionary Credit Line (PCL) with the more flexible Precautionary and Liquidity Line (PLL), which can be used under broader circumstances, including as insurance against future shocks and as a short-term liquidity window to address the needs of crisis bystanders during times of heightened regional or global stress and break the chains of contagion. The Fund’s current instruments for emergency assistance (Emergency Natural Disaster Assistance and the Emergency Post-Conflict Assistance) are consolidated under the new Rapid Financing Instrument (RFI), which may be used to support a full range of urgent balance of payments needs, including those arising from exogenous shocks.

Key elements

The Precautionary and Liquidity Line:

  • Qualification criteria remain the same as under the PCL. A member needs to be assessed as having sound economic fundamentals and institutional policy frameworks, having a track record of implementing sound policies, and remaining committed to maintaining such policies in the future. A member can seek support when it has either a potential or actual balance of payments need at the time of approval of the arrangement (rather than only a potential need, as was required under the PCL).
  • Can be used as a liquidity window allowing six-month arrangements to meet short-term balance of payments needs. Access under a six-month arrangement would not exceed 250 percent of a member’s quota, which could be augmented to a maximum of 500 percent in exceptional circumstances where the member faces a balance of payments need that is of a short-term nature and results from exogenous shocks, including from heightened regional or global economic stress conditions.
  • Can also be used under a 12 to 24-month arrangement with maximum access upon approval equal to 500 percent of a member’s quota for the first year and up to 1000 percent of quota for the second year (the latter of which could also be brought forward to the first year where needed, following a Board review). As under the PCL, arrangements of these durations include Executive Board reviews every six months.

The Rapid Financing Instrument:

  • The RFI broadens coverage of urgent balance of payments needs beyond those arising from natural disasters and post-conflict situations, and can also provide a framework for policy support and technical assistance.
  • Funds are available immediately to the member in need upon approval with access limited to 50 percent of the member’s quota annually, and to 100 percent on a cumulative basis.
  • The member needs to outline its policy plans to address its balance of payments difficulties, and the IMF must assess that the member will cooperate in finding solutions for these difficulties.

Review of Flexible Credit Line and PCL:

The Executive Board also reviewed the FCL and PCL and found that that these instruments have bolstered confidence and moderated balance of payments pressures during a period of heightened risk. The rigorous qualification framework has worked well and access decisions have reflected the evolution of risks facing users of these instruments. The review calls for focusing qualification discussions more on qualitative and forward-looking aspects of policies and policy frameworks, and enhancing the transparency of access decisions.

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