Credit rate. The credit rate is composed of (1) the special drawing rights (SDR) market interest rate – which has a minimum ceiling of 5 basis points – and a margin (currently 100 basis points) called the base rate and (2) supplements that depend on the amount and date of the outstanding credit. On outstanding credit exceeding 187.5% of the ratio, an increase of 200 basis points is paid. If the credit remains above 187.5% of the rate after three years, this supplement increases to 300 basis points. These increases are intended to prevent a significant and prolonged use of IMF resources. Finance Minister Marco Midence stressed that this agreement is an exceptional success and that it will allow Honduras to access conceding loans in the midst of the country`s economic and social reactivation. TEGUCIGALPA, Honduras, Nov. Newswire/ 2, 2020 /PRNewswire/ — The Government of Honduras and a technical team from the International Monetary Fund have reached agreement on the third revision of the IMF-supported Honduras program under the Stand-By Agreement (SBA) and the State Lending Facility (SCF). Structural adjustment programmes have long been criticised for making excessive demands for austerity in the recipient country in exchange for financial aid. This criticism has been less acute in recent years, particularly since 2009, when the IMF`s policy towards the SBA was modified to better meet the needs of recipient countries. One exception may be Greece, which came close to a sovereign debt crisis in 2010 and 2011. The resulting significant cuts in public spending have led to mass protests and riots.

In this case, criticism has been increasingly directed against the requirements for euro membership, given that the large amount of financial aid also comes from other eurozone countries instead of an IMF preparation agreement. T22 [3] [4] “Despite the challenges posed by the pandemic, the authorities have made significant progress in implementing the structural reforms needed to promote strong and inclusive growth, including improving governance and improving the business environment.” Sources: Ukrainian authorities and IMF Staff estimates. Selection. All member countries facing an actual or potential external financing need are eligible for SAAs subject to IMF policy. However, BSAs are more often used by middle-income member states (and more recently by advanced countries), as low-income countries have a set of concession instruments tailored to their needs. “Sound fiscal and monetary policy since the 2014/15 crisis has significantly reduced Ukraine`s external and internal imbalances. Public debt has been reduced, inflation has fallen and international reserves have recovered. Like the ex-post assessment of exceptional access under the 2015 Extended Facility, the implementation of reforms has again been uneven and the implementation of structural reforms will be necessary to create a more dynamic and competitive economy. At present, the humanitarian and economic crisis due to the COVID-19 pandemic has shifted political priorities away from deep structural reforms. “The risks to the new program are very significant.

Uncertainty about the severity and duration of the global slowdown is exceptionally high. On the domestic side, uncertainty about the direction of economic policy remains considerable. Credit terms. . . .