Precautionary Standby Agreement

2002-2008: At the end of 2002, the Ukrainian Cabinet of Ministers decided that continued cooperation with the IMF, without credit, should continue on the basis of the one-year “precautionary preparation” programme approved by the IMF`s Executive Board on 29 March. In 2004 and granted the possibility of obtaining new loans from the IMF and obtaining a reserved loan of SDR 411.6 million (30% of the Ukrainian quota) if payments from the country`s foreign exchange reserves are allocated. Dr. Nigel Clarke, Minister of Finance, has expressed the government`s determination to ensure that Jamaica remains on a fiscally responsible path if its agreement with the International Monetary Fund (IMF) ends… TBILISI (Reuters) – The International Monetary Fund has approved a three-year confirmation agreement for Armenia of $248.2 million to support structural reforms and improve the business environment. The International Monetary Fund is a specialized agency within the United Nations established in 1945 on the basis of the Bretton Woods Agreement to ensure the stability of the international monetary and financial system and the international payment system. The IMF is headquartered in Washington, D.C. and has 190 member countries (the Principality of Andorra became a member of the IMF on October 16, 2020). With regard to the IMF`s financial activities, the last agreement reached by the Republic of Croatia with the IMF ended in 2006. During the 1990s, the Republic of Croatia concluded three IMF financial agreements: preparedness agreements (1994), the Systemic Transformation Facility (1994) and the Extended Facility of Funds (1997). Over the past decade, the Republic of Croatia has also concluded three IMF financial agreements, but unlike the previous ones, there have been no withdrawals of money and the rules have been used exclusively as a preventive measure. These confirmation agreements were concluded in 2001, 2003 and 2004. A precautionary fit.

Countries that are in high need for funding and do not intend to use authorized amounts, but retain the ability to do so when they need them, have precautionary measures to ensure high access. In the event of an economic crisis, countries often need financial resources to help them overcome their balance-of-payments problems. Since its inception in June 1952, the IMF Confirmation Agreement (SBA) has been the lending instrument of emerging and developed countries. The SBA was revalued in 2009, along with the fund`s broader framework, to be more flexible and meet the needs of Member States. Conditions have been streamlined and simplified and more resources have been released upstream. The reform also allows for wider access to wider access on the basis of a precautionary basis. Structural adjustment programmes have long been criticized as excessive savings measures in the recipient country in exchange for financial assistance. These criticisms have been less pronounced in recent years, particularly since 2009, when the IMF`s SBA policy was modified to better meet the needs of recipient countries. Greece, which came close to a sovereign debt crisis in 2010 and 2011, may be an exception. The resulting significant reductions in public spending led to mass protests and riots.

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