About Rapid Financing Instrument:
- It provides prompt financial assistance to any International Monetary Fund (IMF) member country facing an urgent balance of payments need.
- It is one of the facilities under the General Resources Account (GRA) that provide financial support to countries, including in times of crisis.
- Types of Rapid Financing Instrument:
- Regular Window: It is for urgent balance of payments needs caused by sources including domestic instability, exogenous shocks and fragility.
- Under this, access up to 50 percent of quota per year and 100 percent of quota on a cumulative basis.
- Large natural disaster Window: It is for urgent balance of payments needs arising from natural disasters where damage is assessed to be equivalent to or exceed 20 percent of the member’s GDP.
- It provides access of up to 80 percent of quota per year and 133.33 percent of quota on a cumulative basis.
- Conditionality of Rapid Financing Instrument:
- Support provided without ex-post program-based conditionality or reviews (prior actions sometimes apply).
- Economic policies should aim at addressing the underlying balance of payments difficulties.
