Term:
Stand-by agreement
Definition:
An IMF lending facility established in 1952 through which a member country can use IMF financing up to a specified amount to overcome short-term or cyclical balance of payments difficulties. Instalments are normally phased on a quarterly basis, with their release conditional upon the member’s meeting performance criteria, such as monetary and budgetary targets. These criteria allow both the member and the IMF to assess the member’s progress in policy implementation and may signal the need for further corrective policies.
Domain:
Finance
Source:
IMF, 2003, External Debt Statistics: Guide for Compilers and Users – Appendix III, Glossary, IMF, Washington DC