IMF reviews Sri Lanka’s request for Rapid Credit Facility
April 17, 2020 01:24 pm
The International Monetary Fund (IMF) says it is reviewing a request from the Sri Lankan government regarding a Rapid Credit Facility and is discussing whether Sri Lanka wants to switch to the new RCF program.
“We received a letter from Sri Lanka government about our Rapid Credit Facility, you know, the program, RCF program,” said Mr. Changyong Rhee, the Director of the IMF’s Asia and Pacific Department.
“We are now starting to review it. And we are now discussing with the government whether they want to switch their previous program into our new Rapid Facilities,” he said.
Mr. Changyong Rhee stated that the IMF and the Sri Lankan government will be discussing the matter this week.
He stated this while responding to a question during the Asia and Pacific Department Press Briefing of the IMF.
According to the IMF website, the Rapid Credit Facility (RCF) provides rapid concessional financial assistance with limited conditionality to low-income countries (LICs) facing an urgent balance of payments need.
The RCF was created under the Poverty Reduction and Growth Trust (PRGT) as part of a broader reform to make the Fund’s financial support more flexible and better tailored to the diverse needs of LICs, including in times of crisis.
The RCF places emphasis on the country’s poverty reduction and growth objectives.
Financing under the RCF carries a zero interest rate, has a grace period of 5½ years, and a final maturity of 10 years.
