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‘’Rapid Financing Instrument’’ and ‘’Rapid Credit Facility’’ are related to the provisions of which of lending by which of the following?

  1. Asian Development Bank
  2. International Monetary Fund
  3. United Nations Environment Programme Finance Initiative
  4. World Bank

This topic of “‘’Rapid Financing Instrument’’ and ‘’Rapid Credit Facility’’ are related to the provisions of which of lending by which of the following?” is important from the perspective of the UPSC IAS Examination, which falls under General Studies Portion.

Explanation:

From Indian Economy Mindmap Course» International Economic Organisations and India » IMF

Rapid Financing Instrument

The RFI is a lending instrument of the IMF that offers emergency assistance to member nations. The rapid financial assistance is provided with less conditionality to all members facing an emergency balance of payments requirement. Access under the RFI is subject to an annual limit of 50% of quota and a incremental limit of 100% of quota. Emergency loans are subject to the same terms like FCL, PLL and SBA, with repayment within 3¼–5 years.

Rapid Credit Facility

The RCF provides low-access, rapid, and concessional financial assistance to LICs facing an urgent BoP need, without ex-post conditionality, when a full program is not deemed necessary or feasible and the need is urgent. It can provide support in a wide variety of circumstances, including shocks, natural disasters, and emergencies resulting from fragility. The RCF also provides policy support and may help catalyze foreign aid.

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