Simplification of IMF lending. Why not just one flexible credit facility?

Miguel de las Casas () and Xavier Serra ()
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Miguel de las Casas: Banco de España
Xavier Serra: Banco de España

No 806, Occasional Papers from Banco de España

Abstract: This paper proposes updating and improving the IMF’s lending mechanism, by replacing all of its credit lines with a single financial facility. Under this single facility, costs would rise with the volume drawn down and the time elapsed. At the same time, arrangement and repayment periods would be more flexible. The result would be a less complicated financing mechanism, more readily adaptable to borrowers’ needs, stronger incentives to avoid excessive use of IMF resources and equitable treatment for all member countries.

Keywords: credit lines; crisis resolution; financial facilities; IMF; official lending (search for similar items in EconPapers)
JEL-codes: F33 F34 F5 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2008-08
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:bde:opaper:0806

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