Extended Fund Facility UPSC NOTE

 Why in News

The IMF has cleared the second tranche about $337 million , of the Extended Fund Facility (EFF) to Sri Lanka.

 EFF is based on the debt treatment plan drawn up by the crisis-battered island nation and its bilateral creditors.

What is Extended Fund Facility

  • The Extended Fund Facility (EFF) is a lending facility offered by the IMF to countries facing serious medium-term balance of payments problems. 

These problems can stem from:

  • Structural weaknesses within the economy that require time and resources to address.

  • Slow economic growth combined with an inherently weak balance of payments position.

The EFF provides financial assistance to help countries:

  1. Restore macroeconomic stability

  2. Reduce their debt burden

  3. Implement structural reforms to address the underlying causes of their economic problems.

  4. Promote sustainable economic growth

Key features of the EFF:

  • Loans are typically provided for a period of 3 to 4 years.

  • Interest rates are set at market rates, but with a grace period and concessional terms for low-income countries.

  • Disbursements are conditional on the implementing of agreed-upon economic policies.

Examples of recent EFF programs:

  1. Sri Lanka: In March 2023, the IMF approved a US$3 billion EFF program for Sri Lanka to help the country restore macroeconomic stability and debt sustainability.

  2. Côte d'Ivoire: In May 2023, the IMF approved a US$3.5 billion EFF program for Côte d'Ivoire to support the country's transformation towards upper-middle income status.



Amritsar,1,Art & Culture,1,August 2023,251,Courses,7,Daily Current Affairs,48,December 2023,189,Disaster Management,2,Environment and Ecology,54,February 2024,188,Foundation Course,1,GDP,1,GEMS Club,1,GEMS Plus,1,Geography,67,Govt Schemes,2,GST,1,History,2,Home,3,IAS Booklist,1,Important News,71,Indian Economy,46,Indian History,2,Indian Polity,56,International Organisation,12,International Relations,58,Invasive Plant,1,January 2024,240,July 2023,281,June 2022,6,June 2023,268,May 2022,17,Mentorship,2,November 2023,169,October 2023,203,Places in News,2,Science & Technology,66,September 2023,205,UPSC CSE,111,
Learnerz IAS | Concept oriented UPSC Classes in Malayalam: Extended Fund Facility UPSC NOTE
Extended Fund Facility UPSC NOTE
Learnerz IAS | Concept oriented UPSC Classes in Malayalam
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy Table of Content