Comments on IMF's Access Policy
Review of Access Policy in the Credit Tranches and Under the Extended Fund Facility and the Poverty Reduction and Growth Facility, and Exceptional Access PolicyBackground: In exceptional circumstances, a member's access could exceed the above credit tranche/EFF or overall GRA limits. The exceptional access apply in such cases.
Do the Directors consider the existing structure of annual and cumulative access limits in the credit tranches and the under the EFF, as well as the global limit on overall access to GRA resources provides an appropriate dividing line between normal and exceptional access?
Wala namang problema dito. Ang problema eh granting exceptional access between capital account and non-capital account cases.
We recognize the importance of flexibility in decision-making especially for unique circumstances. We are of the view, however, that existing structure may still need to come up with a clearer dividing line, which may be in the form of general principles, such as providing exceptional access to limit the contagion effect of a potential or actual crisis situation. In view thereof, we suggest that the paper provides a brief description of the bases on granting exceptional access in the past, which may serve as a starting point in developing a criteria in providing exceptional access.
Do Directors agree that the access ceilings and the delining access norms in the PRGF cases remain important to ensure the efficient use of the limited PRGF resources and should continue to be applied?
We agree that access ceilings and declining access norms remain important. We cannot rule out the possibility that the availability of IMF funding promotes investor confidence on member economies. As long as the international financial markets are assured that member economies have liquidity support facilities then we expect robust global economic activity.
posted by JD @ 9:31 PM
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